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.”
The complete record
Every one of 1,730 lines we hold for Heng Swee Keat, in date order, each linked to its source. Free to read, in full, without an account. Page 23 of 35.
“Mdm Speaker, I beg to report that the Committee of Supply has come to certain resolutions. [(proc text) First Resolution reported, (proc text)] [(proc text) "That the sum of $328,174,200 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Main Estimates of Expenditure for the financial year 1 April 2015 to 31 March 2016, contained in Paper Cmd 3 of 2016." (proc text)] [(proc text) Second Resolution reported, (proc text)] [(proc text) "That the sum of $213,021,800 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Development Estimates of Expenditure for the financial year 1 April 2015 to 31 March 2016, contained in Paper Cmd 3 of 2016." (proc text)]”
“I thank Ms Kuik Shiao-Yin for her question. The quality control for SkillsFuture would be done by the MOE Higher Education Division, MOM and WDA. I agree with the Member that ensuring a high level of quality control is important. But let me first emphasise that SkillsFuture is not just about courses. SkillsFuture is a lot broader than that. It is also about how the polytechnics and ITEs work with companies to place students in the Earn and Learn Programme to develop their skills. It is also about employers – how employers need to play a role. I feel very strongly about this, that employers need to play a very important role in developing their people. And not just developing their people but, as Mr Ang Hin Kee pointed out, that it is about integrating what they are doing, for example, in automation, with how they are developing their people. I gave the example of Feinmetall earlier. It is an excellent example. The company sent this young man for training and he came back, continued to learn, continued to be mentored and made a breakthrough for his company. And that is the spirit of SkillsFuture.”
“In fact, the work in R&D and technology adoption is not only ongoing but will be enhanced. I actually spent a lot of time, both in my Budget speech, this round-up speech and my public comments between the Budget and the round-up, on what needs to be done. So, I hope that Assoc Prof Goh has followed my speech, as well as my public comments.”
“Assoc Prof Goh's specific points – how do SMEs connect with innovation, research and expertise? Again, I actually devoted a large part of my Budget speech and today's summary to how this is being done but perhaps let me explain it again. First, in the Budget speech, I mentioned a number of things. I gave examples of how the research institutes are reaching out to SMEs. Today, I quoted two examples from the Singapore Institute of Manufacturing Technology (SIMTech). SIMTech and various centres of innovation in our polytechnics, universities and research institutes are reaching out to SMEs. Second, I mentioned The Hangar in NUS and what is happening in the universities. Even new small businesses that are starting up are making use of this space. I also mentioned LaunchPad. And LaunchPad is another example where new SMEs are going. There are many help schemes for our SMEs. First of all, I mentioned SPRING's schemes: we have the Innovation and Capability Voucher and the Capability Development Grant. And in this Budget, I devoted a lot of time to talk about the Automation Support Package. I also devoted a lot of time, as well as in my other media interviews, talking about the need for us to have industry-level transformation. What do I mean by industry-level transformation? It means that we study the entire industry. We look at the common problems where you can have a common solution and, with that common solution, everyone benefits. So, again, I gave the example of the national trade platforms as one of those things that we are building but, of course, that will come in a few years' time. Today, SPRING and other agencies have a number of schemes that are already helping SMEs access technology.”
“Now, as to the Member's point about whether the innovation centre should be in the Jurong Innovation District, I recall that the Member mentioned in his speech that innovation should be pervasive and we should be spreading out the different centres. If you look at our innovation centres, they are all over, including the Polytechnics and research institutes. In fact, I personally find it very inspiring that in the examples that I have given, businesses, large and small, in different industries all over, are innovating. Page: 41 Many Members, including Mr Azmoon Ahmad, Ms Kuik Shiao-Yin and Asst Prof Mahdev Mohan, have all spoken up that, at the end of the day, it is about our mindset and it is about an approach, and we must encourage that. I hope that we do not perpetuate this wrong impression nor give a wrong representation of what I said in this House. I tried to be very clear that innovation has to be pervasive across all sectors, across all firms, large or small.”
“I thank Assoc Prof Daniel Goh for his clarification. First of all, I do not understand why Assoc Prof Goh connects what I said about innovation with it being about new and sexy industries and new things. He then contrasts this against SMEs. If he had followed my Budget speech carefully, seen the video that I showed on the Jurong Innovation District and heard all the examples I had given both then and today, he would know that I devoted a whole section to talk about innovation and made a number of points. Let me repeat them. First, I said innovation has to be pervasive. Second, every firm should be innovative, whether they are large companies or SMEs. Third, they must innovate, regardless of the business that they are in. This is a point that Mr Thomas Chua picked up when he spoke about there being no sunset industry, only sunset thinking. If Members could look at the examples I have quoted, every single one of them is an SME, including the mother-and-son team in JMD Pacific, which is a gift shop that has now turned to e-commerce. I had given examples about Feinmetall, Pan Asia Logistics (PAL), Wee Meng and so on. These are not what you would regard or would call the "sexy" industries. These are good old industries. At the Budget itself, I gave the example of a food manufacturer, and I spoke at length about how the food manufacturers have come together. These are all SMEs, but they innovated, and not only innovated, they came together, integrated and internationalised. I must say that I am a little surprised that somehow the Members got the impression that all I am talking about is “sexy” industries.”
“It is an all-year-round, 365-day, whole-of-Government exercise. Assoc Prof Daniel Goh Pei Siong (Non-Constituency Member): I would like to ask the Minister about the innovation hubs. There is a lot of focus on sexy and exciting startups, which is fine and good. But what about the brick-and-mortar, traditional kinds of family-owned SMEs that we have? How can they connect with these innovation hubs? What are the plans that the Government has to connect these SMEs to the innovation hubs so that they can draw on the innovation expertise, the research that is coming out of NUS and NTU? I understand that SPRING has the Centres of Innovation where these SMEs can connect to polytechnics and certain research institutes. I am wondering whether the Centres of Innovation can also be co-located in, let us say, the Jurong Innovation District and One-North, so that the SMEs can have an avenue and channel to tap into the expertise.”
“It is not the general practice to backdate particular schemes. This is done only under very exceptional circumstances. As for Mr Louis Ng's question on whether we will start the consultation earlier, first, let me say that my round-up speech does not allow me to address every suggestion that Members have put up. Do bear with me because, I think we had 13 to 14 hours of debate. If I addressed every point, you may end up hearing me for 13 to 14 hours! Let me address this specific point – although the formal Budget consultation process starts in a very intense period just before the Budget, the way in which the Budget process works and in which Government agencies work, is that this is an all-year-round exercise. This is an all-Ministries exercise. Throughout the year, we gather feedback, we study data and we look at what needs to be done. We gather feedback from businesses, from people and various sectors, not just the Ministry of Finance (MOF) but every agency, every Ministry. I would like to assure Mr Louis Ng that the work does not start only a month before the Budget! We also have various feedback mechanisms, be it REACH or the various exercises that we hold. This year, we even did something special – we had SGfuture dialogues as part of the Future of Us exhibition. There were extensive discussions with the public. So, it is not as if the Budget process only starts a month before; it cannot be. Page: 40 Also, let me clarify that many businesses prefer to give their feedback closer to the Budget, as the economic situation and business concerns are clearer. We have tried to ask for earlier feedback but many of the businesses said, "That would not be appropriate." I would like to assure Mr Ng that this is not a last-minute exercise.”
“Mr Low, I distinctly recall that you were here when I delivered the Budget Statement. I recall you sitting through a number of the discussions. And I thought many Members, as well as members of the public, have said, "You have been very clear about the priorities." So, I would urge Mr Low to read my speech carefully and perhaps also to read the reports and discuss with fellow Members here what they took away from the speech.”
“Not over one or two years but, as I have said, over the long haul.”
“I thank Ms Foo Mee Har for her question. I recall vividly Ms Foo raising this issue during her speech, along with many interesting suggestions. First, in terms of whether there are KPIs, let me say that in designing any scheme, first and foremost, we do our best to try and make sure that these schemes will achieve the intended objectives. For particular schemes, whether it is for productivity or innovation, it is not easy to have one single measure to say that, "Well, we succeeded because of this or because of that." The nature of the workings of the economy is such that various factors interact to produce certain outcomes. In many cases, you do not see immediate results. Page: 39 If you take, for instance, investments in R&D, if you look at the example in the US, there are some very basic findings that found their way into application many, many years down the road. And so, this is something where we have to be patient and where we should not measure the wrong thing. Having said that, we are very careful in the design of all our schemes to make sure that they have the best chance of success and to make sure that, as far as possible, that the private sector also has a stake in this. Public investments ought to be made in areas for which there are what economists called "market failures", where there are externalities for which the Government will invest in. But at the same time, we have to do it in a way that catalyses private investment and private spending. There are ways of going about doing it. We measure specific schemes from time to time, looking at particular areas. There is no simple measurement. If you ask me, at the end of the day, does it work? Well, does the economy remain vibrant? Do we continue to grow the economy and create jobs?”
“I thought I have explained at length. As I have said, we now have 15 different types of tax reliefs. Over the years, we have, on the one hand, added or enhanced various reliefs and the end result is that we now have quite a large number of reliefs for which individuals can claim a significant amount of tax reliefs. That reduces the amount of taxes that are paid. On the other hand, in the case of support for raising children, we have also been increasing a whole range of different support, be it the Baby Bonus, MediSave grant, preschool subsidies, childcare subsidies, schools and so on. So, if you look at the support that has been given, we studied it very carefully and we think that it is time for us to review, so that the tax system, both in terms of expenditure and revenue, remains fair and progressive; that we have to be equitable across different groups and that those who have higher incomes will pay more.”
“On the first question on whether there will be one SME centre and so on, this issue has been raised in this House on many, many occasions. In fact, not just in this House but among business leaders. This is a subject which will always be studied but, as I had said, let us take a very practical approach at this point. I have mentioned the Industry Transformation Programme in the Budget speech and spoken about how we are appointing agencies to take the lead in every sector. In each sector, you have companies large and small and they interact very intensely in their particular way. This is an important initiative. I would like to focus our efforts and attention to integrate the efforts of different agencies, to integrate the different schemes and to make an impact in those areas. As to the second question, again, this issue has been raised by several Members. I will leave this to the Minister in charge of MSF to address during the COS. Er Dr Lee Bee Wah (Nee Soon): Mdm Speaker, about this tax relief cap – can the Minister explain one more time, because I do not quite understand why this was carried out?”
“Madam, I thank the Member for her clarification. I am glad she raised it. In my speech, I mentioned many suggestions which have been raised by various Members. I said that all these suggestions will be studied carefully. I also mentioned that we have to have coherence in our policies. It is not about one or two specific measures. So, let me clarify that.”
“And we must have the generosity to share, be it in actual things, time or ideas. I do believe, Madam, the more we share, the richer we are for it. By giving and sharing, that is how we transform our world and how we may ourselves be transformed for the better. We have sought in Budget 2016 to strengthen our resilience and to bring out the natural instinct for care and partnership in all of us. So, keep our eyes on the road. Keep our eyes on the horizon. And keep our eyes out for one another. Madam, we have a long road ahead. I thank this House for the attention it has given to Budget 2016, our first step in our journey towards SG100. It will be bumpy, it will be full of unknowns. Amongst the unknowns are not just challenges but victories. There are many innovations ahead of us that we cannot yet imagine, many personal and shared triumphs, many moments of humanity, unity and beauty that will keep defining our Singapore. Through all the good and bad unknowns of the years to come, I hope our spirit of enterprise and caring will run strong. I am honoured, and excited, to partner fellow Singaporeans on this journey. Let us get to work, together. [Applause.]”
“Each of us, too, must continually learn, get the skills that the world needs. We must have the resilience to overcome personal setbacks and adapt to change. For this reason, we will keep investing in SkillsFuture. I hope Singaporeans will make full use of SkillsFuture and that all employers do their part to redesign jobs, facilitate learning and build a better future not just for their companies, but for the people who help their companies to run. Ultimately, the Government must know when to step in and when to step back. We must not inadvertently undermine the spirit of enterprise and the natural workings of markets, or undermine the spirit of caring and resilience such that we weaken the bonds of family and community. Instead, we must reinforce critical values and our spirit as a society. Resources, hard won and wisely managed, will nourish us for the road ahead. Our values and our spirit – these are what will truly energise our journey. Madam, I believe that none of us wants to reach that destination alone. The purpose of this journey is to journey together and to reach our destination together, as one united, cohesive people. To me, there is no meaning to this journey, unless it is a common journey. We must look out and care for one another as we journey. Is someone getting tired? Is someone struggling? What can we do to keep all of us going together? At the heart of this, we must recognise that every Page: 37 member of our society is not just valuable, but precious. We must have that resilience in us to face each challenge as an opportunity to learn and grow, to emerge from setbacks better and stronger. We must have that humility in us to respect and learn from everyone, no matter their paper qualification or job title.”
“And so, too, with a country – though we keep our sights on the distant future, we move towards it one Budget at a time. If we gaze upon the distance and do not look at the road immediately in front of us, we risk falling into a hole. And we will never reach our destination. Or we will take injury and recovery before we get there. In this Budget, we have taken targeted steps to address short-term pressures to make sure that we do not fall into the hole. So, I urge Members to help those who are facing pressures to make the best use they can of the measures which we have announced. Apart from keeping our eyes on the road, we have to know our direction and we have to know ourselves, too. How far do we hope to go? And do we have it in us to go that distance? We have to budget for our journey. We cannot use up all our supplies at the start and we have to have ways to grow our store of supplies. We have to spend more as our needs grow, too. So, we must continue to grow our economy so that we can have resources to spend more on growing needs and we must continue to spend those resources wisely. It is not possible for the Government to keep handing out goodies for everyone, year after year, as several Members have pointed out. Instead, each Budget must build on the previous ones to carry forward the momentum to future Budgets. How do we keep our eyes on the horizon? Our firms need to look outward and look forward – to find new markets, grow capabilities, transform. Look ahead, see opportunities where others see only problems. The Committee on the Future Economy will continue to look towards the horizon, to plot out what we can of the road ahead, so we can take the right steps for a vibrant, strong future economy that creates good opportunities for our people.”
“But we should not be evaluating Budget measures solely from the individual's perspective in a particular year, which would be narrowly focused on the individual winners and losers. We must avoid thinking, as Ms Kuik Shiao Yin eloquently put it, that we are in a "high-stakes competition of win-lose" and that there is "no win-win". Instead, our larger goal is to make every Singaporean a winner in the long run. And this must be our goal; it cannot be otherwise. When we help one group, we are actually helping others, too. When we support our SMEs, we are supporting good jobs for our workers. When we support our seniors, we are helping the families who are taking care of them. When we invest in our young to help them maximise their potential and seize opportunities and have a good career, we are also helping to ensure that they have the means to support their own families when they start one as well as support their loved ones, their parents in their retirement. When we keep our tax burden low, especially for the middle income, everyone benefits. We have to see things in totality and over the long term and not set one measure against another, or one group against another, and one year versus another year. It has to be seen in totality over the long run. Mdm Speaker, let me now conclude. I come back to our journey together towards the future. This is a long-distance journey. We are in this to keep Singapore going and thriving for the long, long haul. This is our responsibility to future generations. To take this journey, we have to keep our eyes on the road, keep our eyes on the horizon, and keep our eyes out for the people we journey with. Page: 36 Keep our eyes on the road. Every journey, even the longest journey, is taken one step at a time.”
“Let me emphasise once again that the vast majority of taxpayers are unaffected by the cap. Ninety-nine percent of tax resident individuals can continue to claim their reliefs fully. For those claiming Working Mother's Child Relief (WMCR), even with the cap, nine in 10 of those claiming WMCR are not affected. This includes those with more children – slightly over eight in 10 individuals claiming WMCR on two or three children are not expected to be affected by the cap. Over the years, we have added and significantly enhanced various schemes to support parents in having children. I touched earlier on our substantial support for Marriage and Parenthood, including the Baby Bonus Gift, MediSave grant, the CDA and now, the First Step grant. As I have pointed out, subsidies to all Singaporean children for education in school, at preschool and the IHLs are all very significant. With all these measures, it is clear that the Government remains committed to supporting Singaporeans in fulfilling their marriage and parenthood aspirations. In fact, our support for families also extends beyond monetary support and includes our wider push to make it easier for families to balance their work and life commitments. This includes our recent efforts to extend parental leave. As Er Dr Lee Bee Wah pointed out, it is about having the right mindset. Fundamentally, having a child is about the joy of parenthood. Senior Minister of State Josephine Teo, in charge of the National Population and Talent Division, will elaborate more on our marriage and parenthood strategy during COS. From time to time, we will have to make adjustments to our schemes in order to continue targeting our support at those who need it.”
“First, we must place priority on building a vibrant economy, which will then grow our revenues. A vibrant, competitive economy creates opportunities and jobs for our people and generates the revenue to meet our needs. Second, we must spend prudently and spend right. This is about being efficient and being effective, so that each dollar reaches out to the right groups to help them in the right way. Third, we must design our overall fiscal system so that it is fair and progressive. We must tax and spend in a way that is progressive without disincentivising enterprise and efforts. Our system of revenues and expenditures must always be fair and progressive. Only then can it be sustainable across generations. Several Members have asked if our personal income tax relief cap, which serves to increase progressivity, runs contradictory to encouraging procreation. Er Dr Lee Bee Wah, Ms Joan Pereira and Ms Tin Pei Ling have commented on this, and I thank them for their views and for reflecting their residents' views. Let me explain. We have introduced the cap on personal income tax reliefs to apply to the total amount of all reliefs claimed. There are 15 personal income tax reliefs, each serving a worthy objective. Taken together, however, they can unduly reduce total taxable incomes for a small proportion of individuals. After studying the reliefs, we concluded that we needed to moderate the effects of large amounts of reliefs claimed, in order to preserve equity in our tax structure. We have to maintain fairness between different groups of taxpayers, in particular, between those who earn Page: 35 more and those who earn less. We have thus imposed a cap to make our personal income tax more progressive.”
“For instance, the hospital admission rate for elderly today is three to four times that of younger people. Countries, such as Japan, went through a similar experience. Over the last 25 years, Japan's healthcare spending has doubled as its proportion of elderly doubled. Singapore's experience will not completely mirror Japan's, but our healthcare spending will certainly rise and we must prepare adequately for our needs. Second, we will need to refresh our infrastructure and build new ones, to create new economic opportunities and better homes for the next 50 years. For public transport, we will be investing significantly more over the next five years. This includes the doubling of the rail network from 178 kilometres today to about 360 kilometres in 2030. Changi Airport's T5 will be developed to enhance our connectivity to Asia and globally. Third, we must continue to invest in our defence and security, which underpin our economic and social prosperity. As Mr Christopher de Souza and Dr Lim Wee Kiak have noted, the threats of terrorism and cyberattacks have grown. To keep our homes safe, we must invest. As our "must haves" and "good to haves" increase over time, Mr Sitoh Yih Pin correctly pointed out that we must continue to uphold the principle of "living within our means", so that we create enduring benefit and not enlarging burden for ourselves, our children and grandchildren. While our spending needs are growing, our revenue growth will be slowing as our economy matures. The experiences of many advanced countries warn us how easy it is for spending to become unsustainable and impose a growing burden on future generations. How then should we ensure that our spending needs are met?”
“We studied these issues and decided to pilot the scheme to encourage businesses towards volunteerism, but with appropriate caps. Our larger intention is to kickstart a movement beyond cash donations, to get businesses and to mobilise resources. It is a pilot. We will monitor these carefully. But I would like to stress that it is not only about tax incentives. At the end of the day, it is about businesses seeing themselves as responsible corporate citizens and becoming more active partners in building a caring society. Finally, I was heartened by the enthusiastic response to last year's SG50 Celebration Fund, with passionate Singaporeans coming forward to celebrate our jubilee year. We will make it easier for Singaporeans to enrich our society with ground-up initiatives. As many Members have pointed out, it is not through the Government's efforts alone, but a collective effort, that we can build a caring and resilient society. We hope that Singaporeans from all walks of life will step forward. Over the past few days, several Members, including Mr Liang Eng Hwa, Mr Chong Kee Hiong, Ms Foo Mee Har and Mr Henry Kwek, have spoken on the importance of fiscal sustainability even as we tackle Singapore's economic and social challenges. As Members have pointed out, Singapore's spending needs will grow in the coming years. First, healthcare. Over the next 10 to 15 years, we will experience a rapid ageing of our population. Today, one in eight Singaporeans is aged 65 and above. This will double to one in four Page: 34 Singaporeans in 15 years. In some areas, such as Outram, the future is already here, with one in five residents aged 65 and above. An older population will invariably mean an increase in healthcare needs.”
“As Mr Kok Heng Leun said, "We must all pitch in to take care of one another and solve community problems together." This is the only way we can nourish the ties that bind us together as a society. Over the past two years, the Government provided $500 million in matching grants for the Care and Share Movement. I am delighted that this has generated significant donations from the public. More importantly, over 200,000 volunteers participated. Singaporeans have shown great generosity in spirit and we hope that this can be sustained. We will continue to encourage charitable giving by matching, dollar-for-dollar, any additional donations through SHARE to ComChest. Besides providing resources, businesses have a role in helping the social sector and supporting employee volunteerism. Let me give two examples. Quirk, a local integrated marketing communications agency, supports Project Dreamcatchers, an initiative by the National University Hospital to empower youths living with chronic illness. The youths will be producing artwork that will be showcased in an exhibition later this year and Quirk is assisting with the branding and collaterals. A group of drivers in ComfortDelGro are active volunteers, delivering meals and driving around those in need. These are all examples where businesses and employees use their expertise for good causes. The Business and IPC Partnership Scheme (BIPS) pilot is designed to support more partnerships between businesses and Institutions of a Public Character (IPC) and encourage employee volunteerism. I acknowledge the issues raised by Ms Denise Phua, including possible crowding out of cash donations, over-subsidising volunteerism and the cap that affects IPCs that really need help.”
“So, I echo Ms Joan Pereira's and Ms Tin Pei Ling's call for more senior citizens to volunteer as a good way to stay active and engaged. The Ministry of Culture, Community and Youth will provide an update on the Silver Volunteer Fund, which encourages seniors to give a part of their time for good causes, in the COS. I would like to share the story of Mdm Chia Chen Kum, who is 70 years old. Her husband passed away a few years ago. However, she discovered new meaning in life when she started volunteering at the centre. She said, and I quote in Mandarin, because she spoke in Mandarin, "来自社会，归回社会. 这样也是应该的. 除非我真的不可以动, 我才没有办法. 我可以做的我就一定帮忙的". She said, "Having received from society, it is only right that I give back. Unless I cannot move and I have no way. Whatever I can do, I will definitely continue to help." This is the great feisty attitude of an elderly − great resilience and great sense of care for others. These are very moving and inspiring words. We must all step forward to care for our fellow Singaporeans and renew our shared commitment to building a better society. And this is particularly important as our population ages. Community partnership will be a major area of focus moving forward. The Community Networks for Seniors pilot will bring local stakeholders and agencies together to study the needs of seniors and help them take preventive care. Looking ahead, as several Members have suggested, we can do even better to plan our estates and social services, as well as crowd in the community to make Singapore a model for social Page: 33 service delivery as well as successful ageing. Ultimately, it is not about Government schemes but about building a caring and resilient society.”
“We are expanding the Social Service Net (SSNet), our integrated information sharing and case management system that links MSF with other Government agencies, as well as VWOs. Agencies can better calibrate their support to help each citizen and better address their needs. Administrative hassle, especially paperwork and forms with multiple agencies, will be reduced for citizens. And I think this is especially important for those who need help, as Dr Tan Wu Meng has mentioned. But we can do even better in partnering the community. We can do better. I was extremely heartened by my visit to the Henderson-Dawson ward and the Thong Kheng Seniors Activity Centre last week. This area is one of the older estates, with almost one in six of the residents aged 65 or above. Many more neighbourhoods will be like Henderson-Dawson. It is important to ensure that every neighbourhood is a good neighbourhood for seniors to age with dignity, lead active and healthy lives and stay engaged with the community. Well, I am glad it resonates with all of you. Every neighbourhood is a good neighbourhood for seniors. Forging close-knit partnerships is key. Henderson-Dawson is an example of how various parties come together, with good leadership of advisors. It was difficult at the start but, over time, the various partners built trust to work together and pool resources to better meet seniors' needs. These include activities for seniors, like morning exercises, free lunches and educational talks on topics from nutrition to fire safety. The elderly themselves contribute to these efforts, to help care for one another. They demonstrate a keen sense of collective responsibility and feel a strong obligation to the community.”
“To better serve Singaporeans, we have made some moves to improve service delivery in the "last mile", especially to the elderly and vulnerable. The first is reaching out proactively to those in need. A good example is the Pioneer Generation Ambassadors (PGAs), which Miss Cheng Li Hui spoke about. Over the past one-and-a-half years, they have reached out to 250,000 Pioneers, or 60%, to explain the benefits of the Pioneer Generation Package (PGP) and MediShield Life. Our ambassadors form a close relationship with our Pioneers, explain Government policies to them and help them access the various schemes. Let me share with you how our ambassadors reach out. An example is Mr Shahul Hameed and his wife. Mr Shahul is 74 years old with a heart condition and usually stays at home. Our ambassadors visited him to explain the benefits of the PGP and MediShield Life. They also took the chance to introduce Mr Shahul to active ageing programmes in his community to help him make friends while keeping fit, while taking care of his heart condition. These are practical ways in which we are reaching out proactively. The second move is to bring help closer. Previously, those looking for short- and medium-term assistance under ComCare had to approach one of the five Community Development Councils (CDCs). Today, they can approach 24 Social Service Offices (SSOs) across the island for assistance. Page: 32 Along with Family Service Centres (FSCs), 95% of the island's residents who need help have access to it within two kilometres of where they live or work. This is an important milestone, but we are still striving to bring help closer to those in need. And with more experience, we will do better. The third move is integrating assistance from Government agencies and VWOs.”
“The income tax burden is low for the majority who pay, including the middle-income group. I had earlier spoken on our efforts to strengthen existing measures that benefit middle-income households and provide active support for housing, education and healthcare. SkillsFuture is another example. All these measures are not as direct as putting money in people's pocket, but it has a meaningful long-term impact on the careers and future of Singaporeans. The most important support for all Singaporeans, including the middle-income, is employability and good jobs, a point which Ms Thanaletchimi mentioned in a recent TV programme, that the best social security is job security, and I would add that the best way to ensure job security is deep skills and adaptability. That is why we are investing in those areas. Even though I devoted a considerable amount of time in this Budget to explain the Industry Transformation Programme and measures to support our SMEs, our aim is very clear – to enable Singaporeans to have good jobs, more opportunities and a better life. We have to go for the long haul and these are important ways to support all families, especially middle-income families. Providing a tax rebate from year to year is not enough to address the fundamental concerns of our middle-income group. We must, as Assoc Prof Fatimah Lateef pointed out, preserve a spirit of resilience and self-reliance and focus on a sustainable way to build better lives for all. Let me now touch on reaching Singaporeans in need. As we spend more, we must take extra care to spend well. I welcome Miss Cheryl Chan's comments on the importance of improving the way care is delivered, especially for the elderly. Let me share my thoughts on how we can maximise the impact and reach of our schemes.”
“Finally, we have to carefully calibrate the coverage of Silver Support. It starts off with $320 million a year and will increase as our population ages. From the outset, we should ensure that the scheme remains sustainable in the long run. Mr Alex Yam asked whether payouts can be made monthly instead of quarterly. Let me point out that, unlike Workfare, which is given for work done, Silver Support provides a forward payout. We are paying ahead in three-month tranches. So, it is a forward payment, which gives seniors the flexibility to manage their expenses. If we move to monthly payouts, we will reduce such flexibility. Several Members requested greater support for caregivers through some form of monetary compensation. Now, I recognise that it is not easy to be a caregiver. I have met many and I have great respect for what they do. But, as a society, we have to be careful not to monetise relationships. And this is a subject that would have to be carefully studied. MOH and the Ministry of Social and Family Development (MSF) will elaborate on the relevant efforts at the COS. I would also like to commend Ms Chia Yong Yong for her very moving plea for all of us to better understand persons with disabilities. I strongly agree that we should continue to empower them to realise their full potential. MSF will elaborate on the third review of the Enabling Masterplan in the COS. Let me now address an issue which several Members have raised, which is support for middle-income households. Ms Thanaletchimi and Mr Azmoon Ahmad asked why there is no tax rebate or, more broadly, measures targeted at the middle income, in this Budget. Page: 31 To begin with, about half of our workers do not pay any income tax.”
“About 70% of this is in healthcare subsidies and amounts to substantial support for our seniors. Silver Support is a major enhancement to our social security system. I thank Members, including Ms Jessica Tan, Mr Zaqy Mohamad and several others, for their suggestions to look into the criteria for Silver Support. Let me now touch on three points. First, let me reiterate that Silver Support is a modest but meaningful supplement targeted at the bottom 20% of seniors, with some support extended to the next 10%. In implementing the scheme, we are mindful of the impact Silver Support can have on our society. Many Singaporeans are proud to be able to provide for their loved ones. Silver Support is not meant to replace other forms of financial support for our seniors, including personal savings, CPF, family support as well as the Pioneer Generation Package. We must be cautious that Silver Support does not undermine values, such as filial piety, or lead to a divisive mentality among citizens. Thus, Silver Support is not the only source of help for the neediest seniors, whose basic needs are served by Public Assistance, which has been enhanced in this Budget. The second point I want to make is this – no single criterion is enough to identify seniors in the bottom 20% to 30%. It is, therefore, reasonable that we combine three criteria of lifetime wages, housing type and household support in our assessment. We acknowledge that there may be some seniors, as highlighted by Mr Lim Biow Chuan, Mr Darryl David and several others, who may need help but do not qualify automatically. Seniors in these exceptional circumstances can request CPF Board to review their eligibility for Silver Support and we will consider the merits of each case.”
“Ms Jessica Tan earlier raised the issue of assurance for seniors in retirement, and several Members have also spoken on this. So, let me now touch on this subject. Over the last 10 years, we have strengthened the four pillars of our social security system; namely, home ownership, healthcare assurance, CPF and Workfare. In particular, we have provided our seniors with greater assurance. Through CPF LIFE and MediShield Life, we are increasing risk-pooling to provide more support in the face of life's uncertainties and also during retirement. These have been complemented by increased Government subsidies for seniors across all healthcare settings, including subsidies for MediShield Life premiums, GP clinics via CHAS, and for eldercare. We also pay extra interest on CPF, with the first $30,000 in CPF earning up to 6% interest from the age of 55. The Workfare Income Supplement (WIS) has been further enhanced in this Budget. I thank Mr Gan Thiam Poh for his support for the enhancements to Workfare and would like to clarify to Mr Pritam Singh that, as I announced in my Budget speech, we are raising the qualifying income ceiling to $2,000, not $1,900. With the past enhancements, WIS is now a significant supplement for low-income workers of up to 30% of their income. Besides Workfare, the Pioneer Generation Package provides a special generation with additional support. Adding up our transfers to retiree households, healthcare subsidies, S&CC rebates and the GST Voucher, we provide substantial support for retirees living in 1- and 2-room HDB flats. Even if Page: 30 we consider only those living in 3-room and larger HDB flats – up to Executive Apartments, on average, this worked out to around $5,000 in Government transfers per retiree in 2015.”
“The KidStart pilot will draw together Government and community resources to provide these children with learning, developmental and health support, even before they enter school. In addition, there are now more resources for families, regardless of income. For each eligible child, parents may receive a Baby Bonus Cash Gift of $8,000 or $10,000, depending on birth order; the MediSave grant for newborns of $4,000; and now, the new Child Development Account (CDA) First Step grant of $3,000. In total, parents of eligible children receive between $15,000 and $17,000 in the first 18 months of their child's birth. By the way, this is in addition to tax reliefs and other leave benefits. A child who attends primary and secondary school also receives around $11,000 a year in educational subsidies. A child from a lower-income household would receive more. There are also substantial subsidies for all Singaporean students at our Institutes of Higher Learning (IHLs) and bursaries for those from lower-income families. I must also point out to Mr Dennis Tan that apart from the CDA grant, the Baby Bonus Cash Gift and the MediSave grant for newborns do not – I emphasise, do not – require co-matching. Moreover, our preschool and education subsidies benefit all, but are especially generous to children from lower- and middle-income families. If you look at it in its entirety across all the different schemes, substantial support is given to parents to have children, especially for the middle-income households, and with even more targeted support for those who start with less. While the CDA First Step is $3,000, we must not forget that there are existing Baby Cash Bonuses of $8,000 or $10,000, plus MediSave grant of $4,000.”
“But I am confident that we will be ready for the future because I have confidence in Singaporeans, I have confidence in Singapore and I have confidence that we will work together. Let me now talk about the spirit of caring and resilience. Many Members, including Dr Lim Wee Kiak and Ms Joan Pereira, highlighted the importance of empowering our seniors to lead active and engaged lives. Mr Faisal Manap, Mr Darryl David, Mr Christopher de Souza and a number of Members talked about Government support for families and the needs of the young. I am heartened that many Members, including Dr Tan Wu Meng and Mr Henry Kwek, support the initiatives to encourage philanthropy and volunteerism. I will focus on three main topics – strengthening social support, reaching Singaporeans in need and building a caring and resilient society. Mr Vikram Nair and Ms Rahayu Mahzam spoke about the need to support low-income families, especially those with children. We invest in all our children to help them achieve their potential, Page: 29 paying particular attention to those from less advantaged backgrounds. Housing subsidies that help low- and middle-income families own their homes have been increased. We are now looking beyond general affordability. Fresh Start will help some families own a home again if they are willing to work hard for a second chance. I thank Mr Saktiandi Supaat for supporting this scheme. Preschool subsidies have been increased significantly. Low-income families pay as little as $3 a month for childcare and $1 a month for kindergarten. Middle-income families also get support. We are going further for a small group of young children who may need even more support.”
“He has a keen desire to learn and upgraded himself by studying part-time for certificate and diploma qualifications, building up to a degree in 2013. After he joined PAL in 2012, he was sent to Germany for training to understand how to use the automated storage and retrieval system. When he returned, he applied what he learnt and increased the productivity significantly. Mr Ong joined the firm in 2014 at the age of 66, just as the firm was implementing a new IT system. Age was not a barrier either for Mr Ong or his employer. Interestingly, Mr Ong has been doing logistics work for 29 years, all the while in manual positions. When I asked him how it feels to join a firm which is just starting a new IT system, he replied that it was a great opportunity to learn. So, he learnt new IT processes when he joined the firm at the age of 66. Today, Mr Ong and Mr Sundaram are role models for the team and help mentor younger staff. As Mr Sundaram said, "There is no use if I keep it to myself. I must pass on the knowledge to others. I must mentor them, so that they can do better and also mentor others." This is a very good example of lifelong learning, of mentoring and of a company that invests in developing its staff. And importantly, of treasuring senior workers and believing that you can continue to train older workers. As Mr Ong said, older workers also have a long runway. I commend both Mr Ong and Mr Sundaram for their pursuit of lifelong learning and PAL for creating an inclusive culture of constant development for their staff. Our approach to enable our people to access good jobs and stay employable can be encapsulated in one phrase: "Right Jobs, Right Skills, Right Match". Creating full employment and good jobs is a major challenge, a difficult journey.”
“I thank all Members for the thought and care that you have put into suggesting improvements to our labour market and skills development. Assoc Prof Randolph Tan proposed auctioning the right to hire foreign manpower. Mr Desmond Choo suggested broadening the apprenticeship system and partnering the labour movement on career guidance for young people. Mr Zainal Sapari suggested further ways to help our low-wage workers. Mr Patrick Tay suggested enhancements to the Career Support Programme and setting up a support network for unemployed PMETs. Dr Teo Ho Pin suggested setting up Centres of Excellence for SkillsFuture learning, in partnership with trade associations and professional bodies. Mr Lim Biow Chuan, Mr Azmoon Ahmad and other Members spoke about providing retrenchment benefits to Singaporeans. We will study these proposals carefully. Page: 28 I just want to echo a point which Assoc Prof Randolph Tan also made. We must be careful about how we intervene in the labour market. We cannot simply copy one bit from one country and then another piece from another and hope to make sense of it. There has to be a clear philosophy and a clear sense that the various measures must cohere to be effective over the long term. And importantly, we must not undermine the sense of independence and efficacy and the spirit of self-reliance and resilience in our people. Now, let me end this section by sharing a story that Mr Heng Chee How and many other Members will find inspiring. I met Mr Sundaram Velosamy and Mr Ong Moh Hong when I visited Pan Asia Logistics (PAL). Mr Sundaram is an interesting story because he started working in the logistics sector in 1989 with an "O" level certificate.”
“Besides employment and training assistance, wage support is also provided in some cases. This year's Budget builds on these programmes with the launch of the Adapt and Grow Programme, which will provide support for more Singaporeans to reskill and gain employment. As I mentioned in the Budget Statement, we expect to more than double the current outreach for PMETs from 2,000 per year to over 4,000. We understand the anxiety of some who have been displaced and that is why these programmes are being enhanced and its outreach doubled. The Minister for Manpower will speak further on this at the COS. As new industries and new types of jobs emerge, we will need to take our skills and job matching efforts even further. We, too, have to innovate in this area. That is why we launched the TechSkills Accelerator for the ICT sector. It will pilot a new model for how Government partners major IT employers, associations and industry to offer training, certification and job matching services, three-in-one. It will also reach out to those without ICT background. Some of you might ask if it is possible to develop ICT skillsets without any background. Well, there are certain specific areas that IDA had identified, such as user experience and user interface design. If this pilot succeeds, we will replicate it in other sectors, as many of you have suggested. What is critical is to sustain the long-term vitality of our labour market. No short-term fixes, but long-term vitality. Several Members have listed the various market innovations over the years – in managing our dependence on foreign manpower, promoting local employment and helping vulnerable groups of workers to find jobs and supplement their incomes.”
“In 2015, over 260,000 residents took up WSQ courses and 22,000 were enrolled in part-time diploma, post-diploma and degree-level programmes in our polytechnics and publicly funded universities. I salute our people for their diligence. I have met many people who are pursuing part-time courses, and I know it is not easy to juggle the demands of work, family and studies. Their Page: 27 spirit of resilience and lifelong learning is most commendable. The success of SkillsFuture depends on everyone playing their part, not just employees, but also employers. The Government will provide support and resources for those who are willing and motivated to acquire new skills and deepen their skill sets. Under SkillsFuture, we are developing an online, individualised learning portal for individuals to plan their careers and lifelong learning. The portal will be launched in phases starting from 2017. Some of you will be happy to know this – accounts will be given to students from Primary 5 and upwards so that they can begin to plan for their future learning and skills development. We are taking the comments made by Members about starting young quite seriously. These initiatives will equip our young people with critical skills for the workplace and the capacity to learn throughout their lives. I have touched on right jobs and right skills. Now, we need the right match. Jobseekers can avail themselves of a suite of employment and training assistance. These include Professional Conversion Programmes and the Career Support Programme. WDA and NTUC's Employment and Employability Institute help match workers and jobs and provide training to improve the employability of workers through their Career Centres. They successfully placed over 14,000 job seekers in 2015 – quite an impressive number.”
“Winson's training at the polytechnic and in Germany, combined with his on-the-job experience, enabled him to generate insights and innovate successfully. That is why I have been emphasising that employers play a very, very critical role in enabling the development of their people, not just in upgrading their firms. Firms that take care in making such investments, ultimately, see dividends. A man like Winson, a young polytechnic graduate who is able to conceptualise a machine that has such impact, gets better prospects in life. We must continue to build a conducive workplace environment that empowers staff to continue learning and improving. I hope that all firms will invest in their people, young and old, and start a virtuous cycle of higher skills, higher productivity and higher wages, which can then be reinvested to develop the firm further. Let me now touch on the next important ingredient – developing the right skills. While firms create the right jobs, our people must also develop the right skills to take on these jobs. Preparing our people for the future starts from an early age, when our children develop the fundamentals and a love for learning. As Assoc Prof Fatimah Lateef, Mr Darryl David, Ms Rahayu Mahzam and other Members have said, we must build the confidence of our young, broaden their learning and stimulate their curiosity as early as possible. It is a powerful force that will keep them learning and help them overcome challenges in their lives. To deepen lifelong learning, we launched SkillsFuture with a focus not just on the skills of today, but also on skills for tomorrow. Actually, we have made good progress. Let me cite some data.”
“Page: 26 Some Members have asked whether the Industry Transformation Programme is just about helping firms. Some workers have asked, "Does it help us?" I want to emphasise this very important point that, ultimately, this programme is about helping our workers and our people. As part of this transformation, firms must also redesign jobs and develop their staff. Several Members, such as Mr Ang Hin Kee and Mr Melvin Yong, pointed out how important it is for firms to automate and redesign jobs and train their staff in an integrated way, so as to bring out the best in every employee and allow everyone to catch up. I am happy to say that many firms are doing this and reaping the benefits. Let me share another example. Take Feinmetall, a precision engineering firm I recently visited, where I met Mr Winson Ng, a young polytechnic graduate who joined Feinmetall after his course in mechatronics at Singapore Polytechnic. After working for five months, he was sent by Feinmetall for advanced training in Germany. Upon returning to Singapore, Winson noticed that one of the processes used to bend needles for semiconductor wafer testing could be done better. He conceptualised a way to automate it, then worked with a systems integrator to develop a machine for it. As a result of this innovation, productivity increased four times and operations run 24 hours a day! The machine also reduced the training time required for the process, from nine months to one week. It is impressive: investing in one young man by sending him to Germany and when he came back, the firm increased productivity four times and reduced training from nine months to one week. The other staff are now redeployed to higher value-added jobs within the firm.”
“In fact, if you go to job sites, whether it is Indeed.com or the MOM Jobs Bank, there are many jobs being advertised, including, of course, in the classified advertisements. I understand the anxieties of Singaporeans about jobs because it is not just about jobs. It is about our families. We cannot take for granted that there will be good jobs and incomes in the future. To address these concerns, we need a coherent approach. First, create the right jobs; second, develop the right skills; and, third, enable the right match. So, it is about right jobs, right skills, right match. First, creating jobs and more, creating the right jobs. Assoc Prof Randolph Tan said, "It is no mean feat to continue to generate jobs in an increasingly sophisticated economy packed into one of the most congested cityscapes in the world." Indeed, this is no mean feat. We not only need to create jobs but given our high-cost structure, given the high level of wages already, to create jobs of high value that meet the aspirations of Singaporeans. To do that, our firms must be competitive and productive. I showed this slide when I presented the Budget Statement. This scatterplot shows average productivity and average wage per worker. The higher the productivity of the firm, the higher the wages that they pay to each worker. It shows that productive firms generally pay higher wages. This is why industry transformation is so important. This is why we need to transform enterprises, transform industries and transform through innovation, because Industry Transformation is the engine, the means for us to create better lives and better jobs for our workers. All these changes will require changes which will require us to create new companies and jobs which will require new skills.”
“Mr Melvin Yong, Mr Gan Thiam Poh and others also spoke on how we can help retrenched workers or new entrants into the workforce find the right jobs. In fact, all over the world, people are concerned about jobs as major economies grapple with job losses and structural unemployment. In some countries, there is overcapacity. China is rebalancing its economy from heavy industries to services and may lay off over 1.5 million workers from the coal and steel industries alone. Page: 25 In other places, such as the US and Europe, under-investment has held back economic and employment growth. Under-employment and structural unemployment due to skills mismatches are issues that many economies are grappling with. We are in a better position because we have invested in creating jobs and enabled our people to acquire relevant skills. Our overall unemployment rates are low compared with other countries. Ms Sylvia Lim said that the 1.9% figure for the unemployment rate does not tell the whole story. But the picture does not change much even if we look at resident unemployment or any other indicators. At the end of 2015, the unemployment rate was 2.9% for residents and 3% for citizens, which most economists would regard as close to full employment, as there is always some degree of frictional unemployment in any economy. The labour force participation rate has risen from 66.2% in 2010 to 68.3% in 2015, which is higher than the Organisation for Economic Co-operation and Development (OECD) average. The OECD average is about 60%, so we have a very high labour force participation rate. And importantly, real median income has grown by 3% per annum over the last five years. Overall, our economy is still creating jobs. The ratio of job vacancies to job seekers remains above one.”
“There are many other examples of creative people with the desire, skills and belief to make a difference. So, how do we nurture this creative environment that allows innovations to flourish? I agree with Mr Azmoon Ahmad and several others that curiosity needs to be stimulated from young and, indeed, we will be making changes to our education system to nurture this. Meanwhile, we must continue to improve the environment for innovation to thrive. To do that, we need to connect the many dots. That is why we set up SG-Innovate – to connect innovators to smart money, mentors, markets and experts in the R&D area. The thrust of my Budget speech is that innovation must be pervasive and must be present in all sectors of the economy and in all firms, including SMEs. That is what I meant by "there is no sunset industry, only sunset thinking", a point which Mr Thomas Chua elaborated on very well. That is why we also placed resources in the revitalisation of the heartland. It is never about confining innovation to enclaves, as Assoc Prof Daniel Goh seems to suggest. To paraphrase Asst Prof Mahdev Mohan, the process of innovation is not a precise science. It is an art that requires us to be patient, take the long-term view, persevere and continuously adapt. We need to change mindsets, as many of you have said, but it is an art and we have to be patient. Many Members have spoken about the impact of the economy on people and jobs. Several, such as Mr Yee Chia Hsing and Mr Zaqy Mohamad, have asked whether there will be good jobs available as our economy evolves. Others, like Minister Chan Chun Sing and Asst Prof Mahdev Mohan, were concerned about whether our people will have the skills to take up good jobs.”
“There, I met people working together to build exciting startups. Let me highlight two. First, Rabbit Ray. They seek to make a difference for children seeking medical treatment. This is Ms Esther Wang, the founder. She designed a patient engagement device in the form of a toy Page: 24 rabbit that explains medical procedures to children in a medically accurate but relatable and comforting way. For this, Esther won the Shell LiveWIRE Top 10 Innovators Global Award. The second example is WaterROAM, which seeks to make a difference to those in disaster and rural areas in need of clean water. They are a startup that has developed a potable water filtration system that can turn dirty water into drinkable water in the same time it would take to run it from the tap. The young man who showed it to me gamely drank the water to show me that it worked. This has allowed it to be deployed in disaster and rural areas. Why do I highlight these two examples? What struck me about both startups is that their innovation started with the aim of meeting a human need. In the case of Rabbit Ray, the innovation was less in the technology than in the design, with a focus on improving the lives of children seeking medical treatment. Esther is now working on a doll that helps children who have to undergo chemotherapy. In the case of WaterROAM, it is to meet the need for potable water for residents of disaster-hit zones and in rural areas, in the poor areas of the world. I am very happy to have young people like them who understand that innovation is not just about technology or gizmos but really about meeting human needs, making the world a better place and how they can make an impact in the lives of others.”
“Are you willing to develop the talents that you have? If you are, you are on board; if you are not, then we will not admit you to this scheme. I am also very encouraged that business leaders themselves have been avid about mentoring and sharing experiences. Three examples come to mind. First, the Bosses' Network set up by Mr Hong Ting Liang which brings SMEs together; second, the Workforce Advancement Federation, started by Mr CB Chan of Goodrich Global, which focuses on learning and building a sustainable workforce; and third, the Business Leaders' Alumni Club, run by Ms Susan Chong of Greenpac, which organises sharing sessions with CEOs. Industry transformation, sector-by-sector, can be promising. I want to thank Ms Denise Phua for her suggestion of flexibility and enlightened partnership, and the need to have a targeted approach and the "3As" framework. Indeed, the "3As" framework is a way for us to look at how we can support the spirit of enterprise. I would also like to thank Assoc Prof Randolph Tan for cautioning against the risks of entrenchment of sector-based interests. Indeed, we must guard against this. Even as firms cooperate, they must not engage in anti-competitive practices. Let me now speak on the topic of innovation. I thank Ms Chia Yong Yong, Ms Tin Pei Ling and Asst Prof Mahdev Mohan for their thoughtful suggestions. Some Members, such as Ms Kuik Shiao-Yin, said, quite rightly, that building a culture that supports innovation is critical, that culture comes before strategy. I am optimistic that we can do this. Last Friday, I visited The Hangar by NUS Enterprise as well as LaunchPad@one-north, two innovation zones which bring together professors, students and innovators. I quite like the name of "Hangar" in NUS because it is where ideas take flight.”
“In addition, SBF, in partnership with DP Info, recently launched the Holistic Industry Productivity Scorecard (HIPS). These tools help companies measure their productivity based on key indicators and allow them to benchmark themselves against the industry norm. Since the launch of HIPS four months ago, 80 companies have used the scorecard. SBF aims to reach 30,000 SMEs by 2020. This is an example of how an industry association or business chamber is Page: 23 taking the lead in transformation. So, while I appreciate that many Members have called for the Government to do more, I think we should also celebrate such efforts by industry associations that are not told what to do. They take leadership, they take ownership, they know what the industry needs and they work together to create value for their members. Mr Ang Wei Neng and Dr Teo Ho Pin spoke about how some SMEs may have difficulties attracting talent. In 2013, the Ministry of Trade and Industry launched the SME Talent Programme to help match SMEs with students. I am happy to say that since then, more than 450 job matches have been made and over 1,000 internships have been conducted, benefiting over 190 enterprises. The Singapore-Industry Scholarship is another joint initiative between firms in multiple industries and the Government that addresses the issue of talent recruitment. I am very proud of this scheme. I launched it in 2012 because I felt strongly, like many of you in this House, about building Singaporean leaders in industry. Since its launch, around 50 organisations are on board and more than 350 scholarships have been awarded. Incidentally, one important criterion which I used for having firms on this is that it is not about a scholarship but about mentorship.”
“This new system helped to grade the quality of the products and the company's annual sales have increased by over 20% since. The system has now gained interest from several other manufacturers, and Wavelength Opto-Electronic has been transformed from an equipment trader and component manufacturer to an Original Equipment Manufacturer. Quite a transformation! This is a good example of how industry-focused institutions can generate value for firms in their respective sectors. For us to have more such efforts, strong sector institutions with committed leadership are needed to drive collaborations and build up shared resources in each sector. Under the Industry Transformation Programme, a Government agency will be appointed to coordinate efforts and develop a Transformation Map for each sector. By working with industry, the reach of this programme can be greatly expanded. If private actors in each sector are willing to step forward to do something for their industry, the Government is very willing to support them. Today, there are over 300 TACs, some with more capabilities than others. Mr Lee Yi Shyan highlighted the Singapore Furniture Industry Council as a TAC, which has been effective in helping the entire industry to upgrade. I agree with many of you that not all TACs are playing the role that they could to reach out to firms in their industries. But where they are willing to step up, we will support them in their capability development through schemes, such as LEAD and LEAD-Plus. Separately, Mr Leon Perera suggested that a tool to benchmark productivity would be useful for SMEs. In fact, there are productivity calculators available to firms. One is SPRING's "Way to Go" portal.”
“Jeremy also helped to bring in sports and lifestyle products new to Singapore, and Page: 22 they became the exclusive distributor for some brands now carried by big stores, such as Challenger, Courts and Guardian. As sales moved online, they digitised their processes and ventured into overseas markets and into new product lines, such as sports and lifestyle products. It is an inspiring story of the transformation of family businesses and how even a retail store can take advantage of technology and e-commerce to move ahead. At the industry level, successful transformation can benefit all firms within the industry. I spoke of the spirit of partnership in the Budget Statement. Firms can achieve more when they work together on common goals. Some people have asked – after I raised this – why competitor firms would find it in their interest to cooperate. Firms can cooperate and compete all at the same time. They can compete in ways to differentiate themselves from one another, in different niches of the market, with different views on who has the best product or service. But they can cooperate on ways to help them all drive down costs, grow the markets and grow global mindshare. An example is the Collaborative Industry Project on 3D Additive Manufacturing where companies come together to share access to the state-of-the-art equipment at the Singapore Institute of Manufacturing Technology (SIMTech). SIMTech also works with companies to identify key technologies that can drive their future growth. For example, they helped Wavelength Opto-Electronic, an SME manufacturer of infrared optic components, develop a first-of-its-kind miniaturised laser equipment.”
“This is Wee Meng Construction, a local steel fabrication SME serving the construction industry. Like other SMEs, they could not attract young and skilled Singaporeans. So, they did three things. First, they adopted a new robotic cutting system, which increased the productivity of the cutting process by 18 times. Second, they mapped their productivity gaps to identify improvements. Third, they trained their staff to operate the new machines, increased the pay of trained staff by 10% to 20%, and built an in-house robotics team. So, now, new Singaporean employees join the firm, and they reduce their hiring of foreign workers. Their next step is to secure overseas steel fabrication projects. Wee Meng Construction is a good example of how we can automate, develop our people, scale up and internationalise. The technology that Wee Meng Construction has adopted is scalable across the sector and we will support such capability upgrading. Firms like Wee Meng give us hope. By turning adversity into opportunity, they embody the forward-looking resilience and enterprise that have carried Singapore this far. Another good example which I came across recently is Jean and Jeremy, a mother-and-son duo who own JMD Pacific, very near here, at Peninsula Shopping Centre. A traditional retailer, growth was slow and e-commerce was drawing sales away from brick-and-mortar stores such as theirs. So, Jeremy, who graduated from university, suggested to his mother to list her products online and use social media to do marketing. This immediately opened up access to a wider group of customers.”
“Mdm Speaker, let me thank Members for their insights over the past few days. Many have put their minds to the question of how Singapore can make a good living in this changing volatile world, and many have put their hearts into the question of how we can support Singaporeans to live with strength, confidence and fulfilment. I value and appreciate this, as do my Ministerial colleagues, who will take up the specific issues during the Committee of Supply. In my Budget speech, I said that Budget 2016 is the beginning of our journey towards SG100. We want a future where our economy is abuzz with innovation and enterprise, and where our Page: 16 society is alive with caring and resilience. After listening to Members, it is clear to me that not only do we know where we are heading, we are committed to getting there together. Many Members have rallied to the call for partnership. The urgency and conviction behind Members' support for partnership have been palpable. This is most encouraging and promising for our future. So, we know our direction. We also know where we come from, the road we have journeyed to get here.”
“As at 31 December 2015, Inland Revenue Authority of Singapore (IRAS) investigated 488 cases for fraud under the Productivity and Innovation Credit (PIC) Scheme. To date, eight cases, involving a total of $213,000 of cash payouts, have been prosecuted. Three cases are pending trial. The 11 court cases do not involve consultants.”
“Mr Deputy Speaker, may I seek your consent to move, "That the debate be now adjourned".”