Hri Kumar Nair
Singapore
“This has a direct bearing on how liberally orders for OCPOs and FROs will be made. To conclude, the Bill gives us more tools to attack and dismantle OCG and ensure that they and their sympathisers do not benefit from the proceeds of crime.”
“I thank the Minister for the answer. I have two supplementary questions. Could the Minister let us know what is the number of pending cases with MOM on unpaid salaries?”
“According to section 11, such a landlord is entitled to terminate the tenancy and can re-possess the property a minimum of 14 days after giving notice. Could the Minister give an estimate of how much the bond is likely to be?”
“LTA has announced that beginning February 2015, the contribution rate of deregistered cars to the Open Category will be reduced from the current 15% to 10%. But why not just scrap the Open Category entirely and transfer its quota entirely to Category A?”
“Second, I renew the call I have made since 2010 to lift or remove the income ceiling. The income ceiling is too blunt a tool. It does not take into consideration the circumstances faced by each family, such as the number of dependants.”
“This will enable students to make informed decisions before and during their university. Second, by better matching demand with supply. I understand that the Law Society currently maintains a page of training contract listings.”
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“This has a direct bearing on how liberally orders for OCPOs and FROs will be made. To conclude, the Bill gives us more tools to attack and dismantle OCG and ensure that they and their sympathisers do not benefit from the proceeds of crime. We will be able to intervene and disrupt all stages of the group's operations, from the initial stages of recruitment and the instruction of others, to the later stages where offences are committed and the group profits from their criminal acts. And where individuals pose a particular risk, we can restrict and monitor them via OCPOs and FROs. But it is precisely because the Bill contains such formidable provisions that we have to be careful that powers under it are exercised prudently and only when the circumstances warrant it. With that, Mdm Speaker, I support the Bill.”
“An OCPO may contain "such prohibitions, restrictions or requirements" and "such other terms" as the Court considers appropriate for the purpose of protecting the public by preventing, restricting or disrupting any involvement by the person in any Part 2 offence or any serious offence associated with an OCG. Indeed, section 16 gives an open-ended list of restrictions that may be imposed and these include restrictions on an individual's travel within and out of Singapore, means of communication as well as his access to and use of any premises or items. Section 19 even provides for Page: 52 electronic monitoring of an individual subject to an OCPO. The same threshold of "protecting the public" applies for FROs, which require individuals to make financial reports setting out particulars of their financial affairs. Significantly, while both OCPOs and FROs must not be in force for longer than five years, it appears that both orders can be renewed indefinitely by the Court. It is indisputable that OCPOs and FROs must have a broad scope if they are to be effective in crippling the activities of OCG. The trade-off is that the power to order OCPOs and FROs may be exercised in an oppressive or abusive manner. In this regard, I have two questions for the Minister. First, there is a higher chance that a mistake may be made under a non-conviction regime because of the lower standard of proof: proof on a balance of probabilities as opposed to proof beyond a reasonable doubt. What safeguards are in place to minimise the chances of OCPOs and FROs being unduly issued? Second, how will the threshold of "protecting the public" be satisfied? What must be shown apart from the fact that the individual has been involved in Part 2 offence or an offence associated with an OCG?”
“The Bill defines a "locally-linked organised criminal group" as "a group that has its only purpose, or one of its purposes, the obtaining of a financial or other material benefit from the commission by or the facilitation of the commission by, any person of any serious offence". The purpose of the group is, therefore, key to its characterisation as an OCG and is an important element in establishing the offence. But how does one establish a "purpose" in relation to the serious offence? Let us take, for example, a group of youth who, out of folly, perhaps may steal a motor vehicle. This is a serious offence under the Bill's Schedule. How will it be ascertained whether the requisite purpose is present such that the gang constitutes an OCG? I would like to ask the Minister: what evidence will be looked at to determine what the purpose of a group is, especially if the group is based overseas? This is important because all the sanctions in the Bill – Part 2 offences, OCPOs, FRO, Confiscation Orders, all of them – are predicated upon a person belonging to, acting for or being involved with an OCG. And while the issue of whether a group is an OCG may sometimes be clear, some cases will fall in a grey area. This has implications on whether the enhanced penalties under section 13 and attendant sanctions on the group's members will apply. My next point has to do with OCPOs and FROs. These orders may be issued under a conviction regime or by the High Court under a non-conviction regime, in other words, no criminal offence has been found or found by the Court. The Court is given a very wide mandate to impose restrictions under an OCPO.”
“Mdm Speaker, I rise to support the Bill. The Bill boosts our abilities to clamp down on and sanction individuals involved in OCG. It introduces a wide range of organised crime offences under Part 2. In particular, the Bill significantly enhances punishments under section 7 and section 13 and creates new offences. Under section 7, a person who instructs another person to commit an offence for an OCG will face the punishment prescribed for that offence and more. Where the offence is committed in consequence of his instruction, the instructor can be fined up to four times the maximum fine prescribed for that offence and have an additional 10 years tacked onto the maximum term of imprisonment prescribed for that offence. Page: 51 And under section 13, a person who commits an offence will be subject to an enhanced punishment regime where it can be proved that the offence was committed for an OCG. Such a person can be fined up to twice the maximum fine prescribed for that offence and have a further five years added to his prison sentence. These enhancements are significant and will help the Police to clamp down on OCG. When I first mentioned this Bill with some friends last week, their immediate reaction was: is the mafia or are the triads operating in Singapore? I hope the Minister will share the relevant statistics/facts and elaborate on the particular types of OCG that the Ministry is concerned with and intends to target. He mentioned moneylending in his speech. Could he give us other examples? This would give us a better understanding and appreciation of the Bill and its purpose. My next point is one for clarification.”
“The OA should be given the power to make all variations and the Court should step in only where the bankrupt or a creditor challenges that decision. Lastly, I would like to comment on the move to require institutional creditors to appoint private trustees when applying for bankruptcy proceedings. This is, in principle, a good idea. The OA's resources are limited and I have received feedback from residents that its officers are sometimes difficult to reach. The Bill seeks to lighten the burden on the Insolvency Office. Banks, finance companies and large businesses will be made to play a more active role in managing the bankrupt's affairs and they have the resources to do that. The question then becomes one of impartiality and even-handedness. Since private trustees are appointed by the creditors, how will they ensure that they will act fairly? This is a matter of concern, since some 51% of bankruptcies involve financial institution creditors. I note that the OA is still responsible for overseeing and monitoring the private trustees. But Page: 46 given the OA's resources, how effective will that oversight be? Hence, I would like to ask the Minister: what assurance do we have that this new scheme will work fairly?”
“It also incentivises a bankrupt to pay off his debts, which is also fair to his creditors. The road out of bankruptcy is not always a road. Nonetheless, I would suggest that the OA be given a wider discretion to remove a bankrupt's name from the public register in appropriate cases, even though the target contribution has not been fully paid. There may be instances where a person was made bankrupt not because of any financial irresponsibility or culpability, but in cases where he is not to be blamed – large medical bills or because he guaranteed a relative's debts. The OA's wider discretion would allow our new scheme to apply in a compassionate and flexible way where the circumstances warrant it. Next, a point on the OA's power to vary the bankrupt's monthly contribution and target contribution. Under the Bill, the OA determines the bankrupt's monthly and target contribution after the administration date of the bankruptcy. With regard to variations after the initial determination, section 86D only specifies three circumstances in which the OA may issue a certificate reducing the bankrupt's monthly and target contributions. Reductions in all other circumstances, as well as any upward revisions, will fall to be handled by the Court upon the application of the OA. There should be no need for the OA to apply to Court to vary the contributions. After all, the OA makes the initial determination after taking into account a wide range of factors. Requiring the OA to seek a Court order makes the process cumbersome, adds to the Court's burden and increases costs. The Court already has the power to review the decisions of the OA where a bankrupt or his creditor is dissatisfied with the OA's decision.”
“Mdm Speaker, I support the Bill. In a nutshell, the main aim of the Bill is to introduce a fixed timeframe of seven or nine years for bankrupts to be discharged even if they have not met their target contribution. The trade-off is that the bankrupt will have his name permanently on a public register. This Bill reminds me of a point I raised some years back. After the Asian Financial Crisis, many businessmen were declared bankrupt with enormous debts, some amounting to tens of millions of dollars. One would intuitively think that a bankrupt with a small debt would find it easier to get himself discharged than one with a large debt. But things did not always work out that way. Some bankrupts with large debts were able to secure a discharge because, as the Courts have rightly and logically pointed out, there was no purpose keeping them bankrupt because it would be impossible for them to ever fully discharge their debts. On the other hand, those with smaller debts could, over time, pay off their debts and, therefore, found it difficult to be discharged until their debts were fully paid off. That did not seem to be correct. Under the Bill, bankrupts can now look forward to a fixed point of discharge, even if they do not repay the target sum. This is more equitable, so everyone is treated the same. But as the rule may encourage bankrupts to drag their feet and wait out the time period, the Page: 45 Bill provides that those who do not fully discharge their debts will have their names permanently retained on a register that the public and financial institutions can access. This strikes a sensible balance. It treats all bankruptcies equally regardless of the value of the debt and allows their discharge.”
“My last point is a broader one on the FA industry in Singapore. The Bill tackles the problem from one angle: that of the financial advisers and their representatives. The Bill realigns incentives by improving the remuneration structure to promote fair dealing. It extends its reach to supervisors and also makes financial advisory a dedicated profession. But the best protection is really a well-informed consumer. The question, therefore, is whether we should do more to improve the financial literacy of Singaporeans. Singaporeans must be alert to the need for insurance and retirement planning, and able to sniff out deals which are too good to be true. One danger is that once we have these regulations in place, people will assume that all FAs are regulated and that they, therefore, have nothing to fear. That will certainly not be the case. I wonder if the Minister has plans to tackle this aspect of the problem. Tackling the problem from the consumer's perspective also means enabling consumers who are dissatisfied with financial advisory services to seek redress. In this regard, consumers may turn to the Financial Industry Disputes Resolution Centre (FIDReC) to resolve their disputes. FIDReC deals with insurance claims up to a sum of $100,000 and with claims against banks, capital market disputes and other claims up to a sum of $50,000. I would like to ask the Minister how many cases FIDReC handles each year and, more importantly, if there are plans to expand FIDReC's jurisdiction so that disputes can be handled quickly and with lower costs. With that, Mr Deputy Speaker, I support the Bill. 5.51 pm Page: 97”
“It runs contrary to the Bill's purpose for representatives who do in fact advise and influence unsophisticated clients to be allowed to avoid responsibility. In this regard, I have a concern that the intent of the Bill may be undermined by exclusion clauses. The Bill prescribes minimum standards for non-sales key performance indicators, the fulfilment of which affects the FA representatives' remuneration. However, these minimum standards can be contracted out of. For example, a FA representative may ask his client to sign a document stating that he only wants to receive product advice or that the transaction is Page: 96 "execution only". In such a case, it would seem that the representative cannot be taken to task for unsuitable recommendations or for poor after-sales service. Next, I wish to clarify the scope of section 23B, which makes Financial Advisory a dedicated profession. Section 23B introduces a new requirement that a representative must work exclusively as a FA representative unless the conditions prescribed under section 104 are fulfilled. A breach of this and related provisions is an offence. It is not clear on the face of the Bill what the purpose of this restriction is. One likely reason is to prevent a conflict of interest. An example is where a FA representative cum property agent improperly recommends that a client purchase an investment property instead of for further insurance because the former gives him a higher commission. But in other situations, the conflict may be less clear or less probable. I would like to ask the Minister to elaborate on the requirements that will be prescribed under section 104. Will there be a blanket ban on FA representatives holding another job? And what other mischief does the provision target?”
“Mr Deputy Speaker, I support the Bill as it raises professional standards across the Financial Advisory (FA) industry. Nonetheless, I have several queries. I do not think it can be disputed that many of us, even those with higher education, know very little about investment or financial products, and especially their risks. Statistics indicate that poor or insufficient financial advice is a cause for concern in Singapore. Despite the disproportionately large number of FA representatives in Singapore compared to other countries, Singaporeans are under-insured and under-prepared for retirement. A 2013 survey shows that more than half of Singaporeans lack adequate insurance. And a 2014 survey shows that only a quarter of Singaporeans are following a retirement plan for financial needs, another quarter are working out their plans, while the rest have no concrete ideas at all. Then, there is the 2012 MAS Mystery Shopper survey which indicates that much of the advice dispensed by FA representatives is less than satisfactory: of the recommendations solicited, only 28% were suitable, while 40% may be suitable and 30% were plainly unsuitable. The extent of our knowledge is usually what we are told by the FA representative, and they tend to focus on the upsides of an investment. We can, of course, read the fine print or do our own research, but most of us will not. So, while this Bill seeks to give more protection to the consumer, we must continue to remind them that this Bill will not eliminate risks or bad practices and that they need to protect themselves by either asking questions or finding out more about the investments they enter into.”
“I thank the Minister for the answer. I have two supplementary questions. Could the Minister let us know what is the number of pending cases with MOM on unpaid salaries? Second, are there any mechanisms to help employees in salary dispute cases where there is a dispute as to whether payments are made, for example, requiring the employer to pay the monies into MOM for safeguarding funds so that, at the end of the dispute, the employee can be assured that there will be monies there for him to receive payment?”
“According to section 11, such a landlord is entitled to terminate the tenancy and can re-possess the property a minimum of 14 days after giving notice. Could the Minister give an estimate of how much the bond is likely to be? Also, will the landlord's bond be forfeited if the tenant contravenes the special order after the notice to terminate has been given but before the re-possession, that is, within that minimum 14-day period? After the landlord issues a termination notice, the tenant breaches the conduct or breaches that particular order, will the landlord's bond be forfeited? That is really the question. Given that the landlord's primary form of control over the tenant is the threat of termination, it seems unfair for his bond to be forfeited even after he has exercised the option to terminate. 3.26 pm”
“Having said that, I hope that with the implementation of this Bill, the attitude of our grassroots leaders and the public agencies will not be to simply say "Go to the new Tribunal". Let us try and solve the problems first and, hopefully, only in the intractable cases will resort to Tribunal be needed. That said, I wish to highlight some issues. First, a point of clarification. Section 4(4) states that a person may bring an action if he "lawfully resides" in a place of residence. I think that is too broad. The common law tort of private nuisance requires the claimant to have a proprietary interest in the land. So, either he is an owner or a lawful tenant and so on. The action should only be brought, therefore, by the owner or tenant and/or at least someone with a vested interest in maintaining harmony in that community. Short-term stayers, or those with no stake in the neighbourhood, may have different priorities. So, could the Minister clarify who will be deemed as being "lawfully residing". Page: 91 Second, the definition of "neighbour" in section 4(4) I think is unnecessary. According to section 4(4), an individual must either stay in the same building as the respondent or within 100 metres of the respondent to be considered a neighbour. While most cases will satisfy this definition, some will not. The test should be whether the person is genuinely and reasonably affected by the conduct and should not be artificially determined by distances. The further away he lives, the less likely he can reasonably claim to be affected. Third, I have some questions regarding the landlord's bond. A landlord may be ordered to enter into a bond on behalf of a contravening tenant to ensure a special direction is complied with, that is, section 6(3).”
“Therefore, this Bill needs to achieve a delicate balance of enforcing the law and still maintaining peace and harmony. And that is going to be very difficult. Let us make no bones about that. Speaking from a legal perspective, there are going to be enormous challenges in its interpretation and application. There will always be clear cases, but there is also going to be a vast pool of very, very grey cases. The Bill, for example, uses phrases like, I quote, "unreasonable interference" and "excessive noise, smell, light or vibration". So, will I be stopped from cooking a dish which carries a smell my neighbour disagrees with? I do not know. The Bill makes the following a tort: "... surveillance of the neighbour or of the neighbour's place of residence, where the surveillance is done at or in the vicinity of that place of residence". Does it mean that I cannot look at my neighbour's house from my own window? And how long and how many times must I do that looking before that "looking" becomes "surveillance"? But that is and is always going to be the problem and that is the issue. This Bill is an improvement because it gives an avenue to bring such complaints and enables the Court, independent Court, to decide such matters. More importantly – I think this should not be underplayed – the onus is now on the complainant to invest time and effort to prosecute his complaint and not simply call the Police or some other public agency or expect someone else to solve the problem. In that respect, I think this Bill will be quite unpopular when it is ultimately implemented because many people expect other people to solve their problems for them.”
“Mdm Speaker, I had, in 2011 and 2013, pushed for a practical and effective framework for resolving neighbour and community disputes. So, I am, therefore, happy to support this Bill. All Members of this House have encountered disputes within the community – the details are different, but the underlying cause is usually the same: an encroachment of space; a misunderstanding, distrust and an inability to live and let live. We all prefer that such disputes be resolved informally and amicably, so, we ask our grassroots leaders and community leaders to mediate and help work things out. Even with the passing of the Bill, that must still be our first response. Some of these problems can be resolved if parties simply got together and discussed the matter. So, I agree with Mrs Chiam that that is the way we should do and I think we are still doing it and, every day, we are dealing with problems in that manner. However, where our best efforts do not work – and there will be cases where disputes cannot be resolved amicably – we need a structure and system to deal with such matters fairly, consistently and efficiently, and that should remain the norm. The question is: what do we have now? What we have now is clearly inadequate. I think everyone in this House recognises it. Mediation through the Community Mediation Centre is voluntary, and that is a problem. It does not work when parties refuse to cooperate. In 60% of mediation cases, one or more parties simply do not turn up. And because it is voluntary, we cannot compel them to turn up. Even if they do turn up, agreements reached are non-binding and unenforceable. So, the whole voluntary process of it, which is a good thing, also Page: 90 undermines the efficiency and efficacy of it.”
“LTA has announced that beginning February 2015, the contribution rate of deregistered cars to the Open Category will be reduced from the current 15% to 10%. But why not just scrap the Open Category entirely and transfer its quota entirely to Category A? Alternatively, as I have previously suggested, because we cannot satisfy everyone, let us use the COE system to promote a sensible and viable cause. Category E or Open Category, can be allocated for green or, more specifically, electric vehicles (EVs). EVs are uniquely suited for Singapore's size and urban environment. For example, even after accounting for taxes and rebates under the Carbon Emissions-based Vehicle Scheme, a Nissan Leaf electric car costs about $200,000, while its non-electric equivalent, a Nissan Sylphy, will cost $110,000. So, it is a no-brainer where the consumer is concerned. They are more likely to go for non-EVs. So, it does not promote the use of electric cars. I would like to ask the Minister whether he is satisfied with the current COE system and, if not, whether he is proposing to make any further changes.”
“Madam, in February 2014, we changed the COE classification system by including the car's engine power in addition to engine capacity. These determine whether a car falls into Category A or Category B. The stated purpose of this change was to promote social equity by serving mass-market car buyers. One year on, how has this policy fared? Overall, COE premiums have fallen. The latest results show that the Prevailing Quota Premium (PQP) was $63,865 for Category A cars for March 2015. This is a drop of nearly $10,000 from the same period last year. But this is not solely or even mainly on account of the change because the price has dipped for Category B cars as well. The lower COE premiums are more likely a result of an increased supply of COEs as more cars reach the 10-year mark and the cooling measures introduced in 2013 on car financing. What is more significant is that the difference between Category A and Category B COE premiums remains narrow. So, has the change worked? I would submit, no. Ultimately, differentiating cars by engine capacity and power serves no cause. COE prices have less to do with engine capacity or engine power, but more with market forces – meaning demand and supply. So, if the intent is to have a real difference in the COE prices of small and large cars, then let us do something which is more likely to work. And the only effective way to do this Page: 73 is to increase the number of COEs for small cars. The way to do this is to use the quota reserved for the Open Category or Category E. While an Open Category COE can ostensibly be used for any kind of vehicle, there is no doubt that they are being used for bigger cars.”
“Second, I renew the call I have made since 2010 to lift or remove the income ceiling. The income ceiling is too blunt a tool. It does not take into consideration the circumstances faced by each family, such as the number of dependants. Some may not want to take on large mortgages and cheaper homes would enable them to employ their capital to start a business or pursue other interests. Page: 115 Finally, consistent with the philosophy of home ownership, our rules should discourage short-term thinking. The Minimum Occupation Period should be lengthened. Singaporeans who pay considerably less for their flats should be expected to hold on to their flats longer. Those who are genuinely seeking a home should have no difficulties with this. The incentive to treat the flat as a financial investment will be reduced. I urge the Minister not to resort to minor tweaks, but to make bold moves to change the current narrative. Circumstances have changed and HDB needs to transform to meet the needs of a different generation with different challenges.”
“Thank you, Madam. HDB's priority should be to promote and enable home ownership. This is especially so for first-time home owners. But that principle has been somewhat diluted by the pre-occupation with asset enhancement. In the past, prices have increased substantially and rental returns for HDB flats have been among the highest in the market. That has affected behaviour and many have treated their HDB flats as an asset to invest in or speculate on or to sell to pay off debts. The problem is that, the rising prices have led to the enduring narrative that flats have become unaffordable and that young couples will be expected to spend a good part of their working lives paying for their homes. This has caused anxiety and unhappiness among young couples and their parents. Steps have been taken to reduce prices – including increasing subsidies. But the anxiety remains. I submit that it has become necessary for the HDB to make bolder moves to reinforce the principle of home ownership and affordability and I have several proposals for the Minister's consideration. First, peg the price of new flats to a multiple of the annual median incomes for first-timers. During Budget 2013, the Minister set a target for prices to be around four times the annual median income. While we have come closer to meeting this, we are still some way off. As of last year, 3-room flats cost 4.5 years of salary, while 4- and 5-room flats cost 5.26 times and 5.36 times respectively. If the ideal is four times annual income, then why not make that peg now? The prices of new flats are currently not that far off the peg to result in a market shock. More importantly, it establishes a steady state and gives assurance that prices will only move with incomes and no one would be priced out.”
“Thank you, Mdm Chair. I thank the Minister and Senior Minister of State for their responses and I beg leave to withdraw my amendment. [(proc text) Amendment, by leave, withdrawn. (proc text)] Page: 112 [(proc text) The sum of $229,947,400 for Head R ordered to stand part of the Main Estimates. (proc text)] [(proc text) The sum of $327,810,000 for Head R ordered to stand part of the Development Estimates. (proc text)] Page: 113”
“This will enable students to make informed decisions before and during their university. Second, by better matching demand with supply. I understand that the Law Society currently maintains a page of training contract listings. This is a good start, but I think it would be helpful if law firms could be asked to indicate the areas they are likely to expand or need more recruits in. Third, I hope, by not changing the admission rules so regularly. I understand the need to maintain quality, but universities should only be removed from the list if they clearly do not make the grade. We can maintain quality by setting an appropriate standard for the Part Page: 101 A and Part B examinations. In the context of this changing landscape, we have a third school that is going to be set up soon. I would like to ask the Minister how UniSIM graduates from the third law school will strengthen our market for legal services and how their entry will affect the supply and quality of lawyers in Singapore.”
“But it takes about five years to educate and train a lawyer and the market changes much faster than that. So, from a dearth of lawyers just a few years ago, we are now faced with law graduates not being able to secure training contracts. Last year, there were about 650 law graduates but only about 490 training contracts. Figures from the Ministry show that only about 70% of foreign-trained graduates managed to secure training contracts with firms here, compared with around 94% of local graduates. This has resulted in complaints about the Government relaxing the rules too much. Just recently, there were complaints about the Government tightening the rules too much when the Singapore Institute of Legal Education dropped eight UK universities from the list of approved law schools. All these developments have caused anxiety for students and their parents. 4.00 pm Madam, I have long been against such rules and their constant changes. They mess with people's plans and they mess with their minds. Picking the right universities in the way we do, I think, is inflexible, subjective and can be arbitrary. I believe everyone who wants to practise law or any other discipline should be entitled to try, provided they meet the minimum standards to practise in Singapore and are prepared to compete in the market for work. That principle currently applies to any graduate in any trade or profession and law should not be any different. But since we appear to be keeping the current system, I think the Ministry can improve the situation in several ways. First, by regularly publishing information, such as the numbers seeking training contracts, the unemployment rates and the estimated number of graduates that are expected to enter the workforce every year.”
“Amid predictions that the Asia Pacific legal market will soon become one of the most important legal markets in the world, the launch of the Singapore International Mediation Centre and the Singapore International Commercial Court are two examples of our efforts to stay ahead of the game and reinforce our brand as a regional, if not global, force in the legal and dispute resolution market. Yet, as the international legal landscape evolves, so must we. Abroad, numerous changes are afoot. The traditional law firm model is under pressure. In Australia, law firms are now allowed to list on the stock exchange. In the UK, legislation permits external investment into law firms and a range of alternative business structures. The traditional mode of service delivery is also breaking down. Internationally, there is a trend towards legal outsourcing and service disaggregation. Technology has also transformed the way law firms provide services, with paperless systems and online legal services becoming more common. So, the real question is: from a global perspective, what is next for Singapore's legal landscape? And what challenges lie on our horizons? I hope the Minister will share his insights with us. One of the challenges we face is dealing with the human resource element, in particular, to provide a platform to enable those wishing to practise law in Singapore to do so. It is clear that the study of law has become increasingly popular. It was a trend spotted decades ago, Page: 100 with the result that restrictions were placed on who could practise law, depending on the universities they graduated from and the class of degrees they obtained. Over time, these have been changed, relaxed or tightened, depending on the market.”
“What is less clear to me is the outcome of these changes. While more people have received and are receiving pro bono services, are there many others who remain deprived because of lack of resources? Is it the case that the eligibility threshold for such services is so high that many do not qualify? In short, what is the gap between supply and reasonable Page: 99 demand and are our current measures sufficient to bridge that gap? Second, there may be people who are eligible and who would benefit from legal representation, but who are unaware that they can apply or who may be discouraged from doing so. A person who is charged with a crime and is unaware of his rights may be tempted or even feel compelled to plead guilty, without a proper assessment of his rights. What checks are there in the system to identify such persons or at least ensure that those intending to plead guilty at least understand their rights and the implications of their decision? Lastly, in seeking the right balance for our pro bono ecosystem, we should be mindful of the fact that the more people who benefit from pro bono services, the more we may be affecting the market for small law firms. How is the Minister proposing to maintain that balance as we continue to strengthen our pro bono efforts? Legal Landscape Madam, I move on to my second cut and I declare my interest as a dispute resolution lawyer. It is an under-statement to say that our legal landscape has changed significantly in the past decade. Singapore has been quick to keep up with developments internationally and seize on new opportunities for growth.”
“Thank you. There have been significant developments in Singapore's legal landscape in the last year, with more in the works. Most of these will be addressed in my other cut as well as those filed by Members. I would kick off by dealing with something which is fundamental to the rule of law and, that is, access to justice. We have a justice system we can be proud of. It is consistently ranked worldwide for its fairness, transparency, efficiency and the quality of its decisions. The Ministry, the Judiciary and their partners deserve praise for that. But the justice system can only function properly if people have access to resolve disputes and, just as important, to defend their rights. Every year, thousands of people go through our criminal and justice systems unrepresented. There are different reasons for this, but the main reason is costs. We are not the most expensive jurisdiction for legal services, but the cost of legal representation is not something most people are prepared for financially. So, many forgo representation. To mitigate this, for criminal matters, the Pro Bono Service Office (PBSO) runs the Criminal Legal Aid Scheme (CLAS). The Government's direct support of criminal legal aid, a relatively recent move, is one which represents a clear shift in philosophy. Funding for CLAS has been significantly stepped up to enable PBSO to help up to 6,000 accused persons each year. Funds will also go towards covering disbursements, so lawyers are not out of pocket, as well as to provide honorariums for volunteers. Some law firms have also been asked to second lawyers to the Law Society's Pro Bono Office or provide funding to hire full-time pro bono lawyers. From this year, it will be mandatory for lawyers to report pro bono hours.”
“Mdm Chair, I beg to move, "That the total sum to be allocated for Head R of the Estimates be reduced by $100". Mdm Chair, may I take both cuts together?”
“So, if we are serious about improving our ability to communicate, we should re-engineer our system to encourage the right behaviour and right learning habits. The payoff is that our young will be equipped with a real and valuable skill that will benefit them for life. Holistic Education – Character and Values”
“Are we, for example, paying enough attention to language skills at the preschool level, because that is the first opportunity we have to develop the child and prevent bad language habits from being picked up? Some of our language policies may also be counter productive. Let me give some examples. If a student obtains a grade between C6 to A1 for Higher Mother Tongue at the GCE "O" levels, he can deduct two points from his L1R5 score. In fact, he can deduct these bonus points even if he uses Higher Mother Tongue instead of English for calculating his language score at the GCE "O" levels. And so, there is less incentive to do well or do better in English. Oral examinations are given a weightage of only 15% at PSLE and 20% at the GCE "O" levels, no equivalent at the GCE "A" levels. So, there is very little incentive to improve communication skills. The effect of our scoring policies has led to the decline or demise of English Literature, as Ms Kuik Shiao-Yin pointed out a few days ago. Even for Higher Mother Tongue, our policies may be counter intuitive. If a student passes Higher Mother Tongue at the GCE "O" levels, he does not have to take the subject any further. The incentive is, therefore, to do Higher Mother Tongue up to the GCE "O" levels so that you can drop it and do one fewer subject thereafter. And many of our students do that – they earn the two bonus points and then they drop the subject. The choice about doing Higher Mother Tongue is, therefore, more a tactical one instead of an educational one. The result is that we have many students who stop formal instructions and, in fact, stop using Page: 56 the language at the age of 16. We know that people always act to further their own interests.”
“Madam, last year, I posted a note on my Facebook making the argument that despite our good education system, Singaporeans are still coming up short in one area and, that is, spoken English. Some people have responded agreeing, while some said that my post does not recognise our other qualities. But no one said that our standard of English was good enough. Of course, we produce some good writers and speakers, but when it comes to communication skills, it is not enough for only some to do well. This is because the ability to communicate is a vital skill in any job, any profession; and it is, therefore, important for everyone to reach a competent standard. The real questions Page: 55 we should ask are what qualities do we want in a person who goes through and graduates from the Singapore system and are we seeing those qualities today? In terms of the ability to communicate, I submit that the answer is no. It is a grievance shared by many employers I have spoken to. Singaporeans have good substance but not enough form. While they may know a lot or have a lot to contribute, they lack the ability to express themselves clearly and confidently. This puts Singaporeans at a serious disadvantage in the international workplace. What is it about the way we teach that produces students who do very well in Mathematics and Science, but not in languages? It is not just about grammar, vocabulary and spelling, but phrasing, articulation, presentation and, ultimately, persuasion. Because much of what we do in life involves persuading someone else of something. If we can agree that an important objective of our education system should be to produce articulate and confident young adults, then we need to ask ourselves: why are our current policies not achieving this desired outcome?”
“Yes, Madam. Despite the heavy burdens MHA bears and the challenges that it faces, it will be remiss of me not to acknowledge that we still enjoy one of the lowest crime rates in the world. Everyone travels in, out and around Singapore without fear, and our loved ones continue to sleep under the blanket of security the Home Team provides. So, I would like to thank the Deputy Prime Minister, Minister Iswaran and Senior Minister of State Masagos and MHA for their dedication and hard work. And it will only be proper that I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $4,416,468,500 for Head P ordered to stand part of the Main Estimates. The sum of $582,336,800 for Head P ordered to stand part of the Development Estimates. Page: 40”
“Page: 138 But it is not just about numbers and statistics. Every person sent to prison is a soul lost. It does not just affect that person, but those close to him or her, particularly their children. Rehabilitation schemes aside, for many ex-offenders, an integral part of turning over a new leaf involves finding meaningful employment. That will not just benefit the ex-offender and his family, but society as a whole. The Singapore Prison Service statistics indicate that the Singapore Corporation of Rehabilitative Enterprises (SCORE) helped 1,865 inmates secure jobs prior to their release in 2014. But the same report also shows that there were 11,955 convicted penal releases and 1,350 DRC releases in 2014. So, the 1,865 who secured jobs really represent a small minority of those who did secure jobs after release from prison. I would like to ask the Minister what more could be done to help ex-inmates upgrade their skills and find work. [(proc text) Question proposed. (proc text)] Cybercrimes and Threats”
“This is especially important, given the shift towards "soft" targets, such as innocent civilians. Should an attack occur, Singaporeans must know what to do and how to react so that they can help save their own lives, the lives of others, and ensure things remain calm. Are our people ready? Will an attack divide or unite Singaporeans? We pride ourselves as a shining example of multiracial, multi-religious harmony, but there are other societies we can learn from. As the Sydney Siege unfolded and the religious affiliation of the gunman revealed, the majority of Australians responded, not with hatred, distrust or hysteria, but with compassion and solidarity. The Twitter hashtag "#illridewithyou" went viral as Australians pledged their support for those who might feel vulnerable taking public transport in religious attire. It was an amazing response, because it was exceptional. In the event of a terror attack in Singapore, how will Singaporeans respond? Will we turn against certain nationalities or people of a certain faith? How is it that the Australians responded so well? And what can we learn from them? If the answer to all these questions is that "we do not know", then, obviously, more needs to be done because these are critical issues we must tackle today. Resources will also be better employed if we are able to tackle the source of crime. And one large source is those being released from prison. Statistics released by the Singapore Prison Service (SPS) in January 2015 show that the recidivism rate is the highest in nine years. To be fair, as these figures relate to inmates released in 2012, we cannot yet see the fruit of the new aftercare schemes for ex-inmates. These include the Conditional Remission System which came into operation on 1 July last year.”
“I hope the Minister will share the relevant statistics and tell us what further steps, if any, the Ministry intends to take to recruit as well as retain good officers. Apart from increasing our headcount, we need to make sure that our officers are equipped with the right training and skills. A lot has been said about this in the aftermath of the Little India Riot, and changes have been made or are currently underway to improve our response to large-scale public order incidents. But the right training and skills are also Page: 137 necessary to tackle other kinds of crime, such as the rising incidents of cybercrime. The Singapore Police Force (SPF) recently reported that cases of "cheating involving e-commerce" rose by 1,149 cases from 510 in 2013 to 1,659 in 2014. And that is an increase of 225%. The number of "Internet love scams" and "cyber extortion" cases have also increased significantly. Cybercrime also takes many other forms, such as online sexual harassment and cyber-bullying, now covered by the Protection from Harassment Act. Given the increase of crime online, we need our investigative officers to be equipped with the requisite expertise and technological know-how. Could the Minister elaborate on how Police officers are trained to tackle Internet crime? Resources are also critical in dealing with the growing terrorist threat. There have been many discussions about the seriousness of that threat, and whether MHA is equipped to deal with it. But the nature of the threat is such that it is impossible for MHA to deal with this alone, and no amount of additional resources will fill that gap. There is another resource we must develop and prepare and, that is, our people. How successful we are in meeting the terrorist threat will depend on how we respond to attacks.”
“Madam, I beg to move, "That the total sum to be allocated for Head P of the Estimates be reduced by $100". Madam, the past year has been a busy and challenging one for the Home Team. Among other things, we have introduced new laws on liquor consumption, remote gambling and aftercare for ex-inmates. The hearings of the Little India Committee of Inquiry (COI) were held and findings released, and the Ministry is in the process of implementing its recommendations. But the Ministry of Home Affairs (MHA) is not just about signature pieces of legislation or high-profile events. What matters most to all Singaporeans are the things we expect and often take for granted – low crime rates; safe and secure communities; speedy clearances at immigration and fuss-free travel; quick and effective response by the Police, Civil Defence and ambulances when things go wrong. This is far easier said than done, but that is the expectation. How is the Home Team going to stay ahead of the curve? I would like to ask the Minister for his views on the key challenges faced by the Home Team currently and in the future. More importantly, are we prepared to deal with these challenges? A significant question that keeps coming up is whether we have adequate resources, in particular, trained and experienced personnel. During the COI, the then Commissioner of Police Ng Joo Hee gave evidence of the need for more Police officers. Following that, the Ministry announced that 300 more officers would be added to the Special Operations Command (COS). In a bid to attract and retain more talent, the Ministry has also implemented salary increases for Home Team officers and sign-on bonuses for SPF officers. How successful have our recruitment efforts been for the SOC in particular and the Home Team in general?”
“I also worry that just encouraging the spouses or the husbands to transfer the fund may not be sustainable. So, perhaps, we can have a Singapore Conversation with the women and ask them what exactly will work? Perhaps, a prenuptial agreement? Or even something incorporated into the wedding vow, perhaps. Mr Deputy Speaker, I support the Budget. 5.41 pm”
“This is where I would like to suggest that we plan suitable courses and outreach to explain and also create awareness for them; short courses whereby they can learn critical skills and acquire knowledge relevant to them if they want to come back to work in certain industries. This way, they can contribute to the family income, work part-time and even enhance women's contribution to Singapore's economy. MENDAKI SENSE, for example, runs courses for back-to-work women and it is across all races. And I have spoken to many of these women and all of them say that the courses are very relevant and also useful. The courses include interviewing skills, grooming skills and industry knowledge as well. So, they are very, very useful. Therefore, we have to plan these courses appropriately and target them at the appropriate people and level. For those who have insufficient funds, for example, they should be allowed to tap on their husbands' fund if the latter may not require it and have other sources to support them for their training. This transfer can be authorised on a case-by-case basis, perhaps. And I hope that the Government would look into this. Many of our stay-at-home mothers have minimum or no CPF contribution. Besides the usual Government top ups, perhaps, there can be a formal programme for spouses to transfer funds into their non-working wives account. This will be beneficial for the women, as they can have an independent account and be subjected to all the benefits that come with having a proper CPF account, like others who are working. If these women do have working Page: 112 and grown up children, they too can be the ones making the transfer into their stay-at-home mothers' accounts. This will give the stay-at-home mothers some level of recognition and empowerment.”
“Primary care personnel must be engaged further and setting up of family medicine centres and new models can be tested out as to how we can strengthen this further. Recent schemes like the Chronic Disease Management Programme (CDMP), Community Health Assist Scheme (CHAS) and the Pioneer Generation Packages (PGP), have also helped to a certain extent in inculcation of a positive and longer outlook for our patients to develop a longer term physician-patient relationship in the primary care. And this also aligns with MOH's call for a "one family to one family physician" model. Page: 111 Perhaps, the Ministry can also update us on the developments in terms of Community Health Centres and Family Medicine Centres. How are they doing, how many have commenced operations and other teething issues. Will we be seeing more of these? How about the ramping up Polyclinics' capacities and capabilities? How are we doing in this area? And one more issue is about the regional health systems. How are we doing on that front as well? The eastern healthcare alliance is a functional example. And this is a good model. It stresses the collaborative culture between Healthcare, Social Services and the voluntary sectors. Can MOH also update us on the developments of the regional health systems? Mr Deputy Speaker, stay-at-home mothers should not cling on to the stay home mentality. Stay-at-home mothers and housewives play a critical role in upbringing families, nurturing children and running households. Many used to work but stopped when the children came. For this group of women, I have two suggestions with regards to this year's Budget. They will be getting their SkillsFuture grants and many, I reckon, will not be utilising them, perhaps.”
“Only then, can the collaborative thinking and culture spread as far widely as we want it to. Our healthcare continuum. The 2015 Budget continues to strengthen and top up our healthcare infrastructure. However, the healthcare challenges remain. One, our ageing population and this comes with a whole slew of issues and challenges. Secondly, our high incidence of chronic diseases. We have discussed this very often and we are dealing not only with the higher patient load, but also with a higher disease burden per patient. Third, lifestyle and lifestyle diseases. Well, if we have too much of a good food, problems can arise as well. Fourth, healthcare manpower crunch. This is a perennial problem. Our catching up needs to step up and it is really a big leap that we have to make. There are many, many challenges and concerns at a healthcare level and I speak as a healthcare professional in practice as well. Fifth, the need to strengthen our primary care sector. When talking about healthcare these days, it is about moving along a health continuum from one level to the next, across a number of years of your life. Therefore, it is necessary to have a very defined system with clear evolution, clear handovers and connection at every level, clear transitions of care, clear understanding of care-seeking behaviour of our population, clear big data collection, analysis and application, clear reforms and transformation from policy to execution. MOH has been responsive, forward looking and progressive, I would have to say. However, there is one area that needs quite a bit of reviewing and strengthening: it is primary care. How can we improve in terms of value, efficiency and productivity?”
“The Learning Portfolios will help chart individual's course to Lifelong Learning. This is a powerful tool and it has a deeper meaning. It is about empowerment of learning, an ownership of your learning process and journey. On the SkillsFuture grant, how will it be dispersed to all eligible Singaporeans? What about those who are in nursing homes, with dementia who will not be learning anything further? Perhaps, there must be some machinery to execute this effectively and efficiently. For the Learning Portfolio, will this be more individual-based or institution-based? Those are some of the questions that we are wondering about. The only road block to this implementation will also be our own mindsets. It is a personal choice. Well, it is said that, "if you can change your mindset, you can change your life" and this is our opportunity at the very personal and individual level. The Budget also calls for a collaborative culture in industries. For this mindset to permeate our workers and experts in industries, it is important to be inculcated from a very early age in our schools, Universities and Institutions of Higher Learning. Often, we are subdivided into different faculties, different courses, different groups. The concept of segmentation and silo mentality is still prominent in many sectors and in Government agencies as well. How can our institutions come up with innovative ways to break down the barriers and mindsets to encourage interaction and also mixing around? There are some Page: 110 universities in the world where in the first and second years, they are devoid of faculties. Students work together and developed their skills and grow together. Collaborations can brainstorm common, social and economic challenges and scenarios across faculties, students and learners.”
“In conclusion, this year's Budget encourages us to reflect on the transformation of our own mindset, the transformation of our family's mindset and the transformation of our community's mindset. The global world is our classroom; the global world is our stage; the global world is our opportunity; and the global world is there for our children and grandchildren. We, as Singaporeans, who are trained, capable, possess good work ethics and think positively, will be successful wherever we go. Page: 109 Are we ready to take new steps in our journey for the next 50 years? The key and answer to this lies within ourselves. Mr Deputy Speaker, in English. (In English): Learning at every age and every stage. This Budget has a special thrust on education and it is a correct thrust forward. It is about putting Singaporeans into Learning Communities and making Singapore a Learning Nation. This is a progressive step. Not many nations can do this. We are doing this as we move forward into the next 50 years of nation building, with the certain level of political and economic stability which we have achieved today. The mission of a Learning Nation also aligns clearly with that of a Smart Nation and increasing our productivity, as we work with more creativity, automation, innovation, research and collaboration. Areas of sustainable environmental development and technologies, applied health sciences, aerospace engineering, nanotechnology and so on cannot progress and cannot jump start further if not for the continued hunger for knowledge, spirit of innovativeness and striving for excellence, at every level and every stage. The implementation of a Learning Portfolio is a very progressive move for Singapore. In fact, it is something that is used in a lot of professional circles.”
“Although so many good schemes are available, it will be wasted if Singaporeans do not take heed and reap its benefits. Create a vision and mission for yourself and your family. How do you see yourself in the next two, five and 10 years from now? For those who are still studying and working, study your own strengths and capabilities from early on. For those who have retired, you would have made plans during your younger years to prepare for your golden years and retirement age. The same goes for your CPF savings. With the new flexibility, if you set aside more money, the amount that we can get each month when we reach 65 years old will be higher. Therefore, make the right decision on these issues from early on. The third message: stand tall with the rest. The element that makes a community successful and excellent is its own mindset. I would like to remind our community about the importance of having a spirit and a belief that are positive and focused. Never ever lose this spirit, which is the spirit of Singapore Malays – the "can do" attitude and the willingness to overcome and resolve any challenge as one. Together, we should resolve to be a Malay/Muslim community that is respected, admired and excellent in a global world, thanks to our mindset and our capabilities that are developed in a meritocratic nation that provides opportunities for all. The fourth message: giving back to society. The number of Malay/Muslims who are successful, earn higher salaries and prosperous, keep increasing year after year. These are the ones who can also help those who are less well-off and the low-income group. The spirit of helping others is highlighted in our religion.”
“Re-writing the terms will always be at the expense of another person, another group or even another generation. And the better solution to a problem may not always lie with the Government. I support the Budget. 5.28 pm Assoc Prof Fatimah Lateef (Marine Parade): Mr Deputy Speaker, in Malay, please. (In Malay): [Please refer to Vernacular Speech.] The 2015 Budget is very progressive. It contains various schemes that bring benefits to the people. Maybe goodies will be introduced, either directly or indirectly, but the most important thing is the fundamental message for all of us. The first message is lifelong learning. From the pre-school level right through our working years and until our golden years, many schemes and subsidies are provided for us to learn, for example, improving at every stage, undergoing new courses, sharpening our abilities and upgrading our practical skills, amongst others. This is important for our Malay/Muslim community. Reap the benefits. It will help those families who are trapped in the poverty cycle to escape it because education and capabilities will bring about better jobs and status. This can also improve and stabilise your family situation further. This will also uplift our community as a whole. Do not get tired of developing your own capabilities and passion through the SkillsFuture Credit, SkillsFuture Earn and Learn, the individual Learning Portfolio portal and the Education and Career Guidance. The process of learning should not have limits. Continue to learn anything that is Page: 108 good for you, regardless of your age. The only thing that will hold us back is our mindset. The second message: face difficulties first, and then enjoy the rewards. Save first, and then use it later. Plan first, and have a vision for the future.”
“But more than a few blamed the Government for their difficulty in getting masks. But the question is, why were we not prepared as individuals for the haze? The haze is a regular affair; it comes almost every year. And no one can predict how bad it will get. The sensible thing to do is to be prepared as individuals, but many of us were not. And that includes me! We need to change this mindset. One main problem, in my view, is that we have not defined what the role of Government is. While we "do more", there is also a pressing need to talk about the Government's limits, and to make clear where the Government's responsibility ends and the responsibility of individuals begins. That demarcation is important because it informs the Government's approach on all issues which affect Singaporeans. For example: What is the Government's role in education? Does it include instilling moral and social values? If so, what is the role of parents? And moral by whose standards? What is the Government's role in transport? Does it include making cars affordable or is it obliged to ensure equitable distribution? Page: 107 What is the Government's role in housing? Must it help all Singaporeans own a home? Does that mean HDB flats, or quasi private housing like Executive Condominiums? And does it also include making private housing affordable? What is the Government's role in looking after the elderly? And how does this sit with the families' responsibilities to look after their parents or grandparents? These are issues we need to talk about. Unless we make the role of Government clear, the social contract between Government and the people will be vague and it will always remain under pressure to re-write the terms for the benefit of some groups. There is no free lunch.”
“Next, the second issue I want to talk about is the intangible effect of Government spending. I think this carries an even greater risk. There is a belief, particularly prevalent in Singapore, that Government can provide solutions for everything. Whenever there is a perceived market failure, there are always Page: 106 demands for the Government to step in. For example, when transport prices go up or trains break down, there are calls for the Government to nationalise public transport. Recently, when there was concern that there are too many lawyers, the Government was urged to restrict numbers. When the issue of the columbarium at Sengkang happened, I read a letter to the press which says that the Government should build columbariums instead of allowing private companies to build it and profit. The common refrain to almost every issue is: "What is the Government going to do about this?" The mindset that the Government will take care of everything and everyone is unhealthy. This puts an unrealistic and unsustainable pressure on the Government to do something, even when Government intervention is not the right solution or may even cost us more. Further, we all like to say that we want Singaporeans to be hardy, to take risks and not be discouraged by failure and difficult circumstances. The Minister for Finance has in fact said that the Government wants to maintain the ethos of self-reliance. But is that in our DNA today? One good example that strikes is the haze episode in 2013. I remember being blanketed by haze. That incident, I think, brought out the best and the worst in us. We read stories of Singaporeans getting together on their own initiative to distribute masks to the community and some even offered their homes as shelters.”
“And now, going forward, we are including Temasek Holding's projected returns in NIR. That will, no doubt, boost our spending power even more. But every additional dollar spent today simply means more than a dollar less for the future. More importantly, what this tells us is that we are running out of levers to pull. Because after Temasek, there is no "next". But there is no doubt that our spending will continue to increase, even if there are no new programmes, which is unlikely. The Silver Support Scheme is a good case in point. This is a permanent scheme which will be well received as it helps the elderly who have little financial resources. I personally have some reservations about whether the eligibility criteria will be easy to understand and applied and I am concerned that it will cause deep resentment in those who will miss out on it. There will, no doubt, be calls to widen the net. As the population ages, more will qualify. And as time goes on, there will be pressure to increase payouts to keep up with inflation and the cost of living. The money has to come from somewhere. Increasing taxes on the top 5% or even 10% will only get you so far, there will be considerable pressure on the Government not to raise taxes for everyone else and that includes GST. There will, no doubt, be calls on the Government to raise the NIR contribution rate beyond 50%. In fact, that call has been made already in this House last year. But that means leaving behind less for our children. So, where do we go from there? I would therefore like to ask the Minister if these are real risks, or am I looking at ghosts? And how we can mitigate such risks? Are there other potential sources of revenue on the table for consideration?”
“What I have done, with the leave of everyone, is to extract some figures from those published by MOF and simplified the presentation to show what we have been doing over the years. The table we have will show, at the left hand side, FY1999 and FY2000 and then a break before it starts from FY2009 until FY2015. And there is a significance as to why I picked those years. As can be seen from the bottom three rows of the table, we already rely significantly on our Reserves to finance our spending. For FY1999, you will see that there was no contribution from NII or NIR because we did not have those then. What happened from FY2000 was that we introduced what we defined as "Net Investment Income" (NII) to draw the returns from our Reserves, but capped at 50%. That gave the Government an additional $2.287 billion to spend. Fast forward then to FY 2009, we broadened the definition to "Net Investment Returns" (NIR), which included projected long-term capital gains and not just actual interest earned. In other words, we included returns not yet earned. As the table shows, this resulted in a Page: 105 massive boost in contribution by over $7 billion. Nothing in FY1999; then in FY2000, NII gave us $2.2 billion; then came NIR and because of the broader definition of returns, we received $7 billion. That figure has been going consistently up. What the table does make clear is that but for this increased draw on the Reserves, we would have run up large deficits for a number of years. If you look at FY2014 revised and FY2015 budgeted, we have deficits even after including NIR. So, this notion that we are leaving our Reserves untouched and not spending the Reserves is not quite correct, not quite accurate. I do not think many people realise it.”
“Everyone agrees that there is no such thing as a free lunch – but we tend to forget this when we ask the Government to spend more because we all believe that our requests or interests deserve more attention Page: 104 and will benefit everyone. I am not suggesting that this Government is over-spending. In fact, our spending as a percentage of GDP is low compared to most First World countries. But the Minister for Finance has made clear that spending will increase – spending as a percentage of GDP over the next few years will rise to 19.5%, up from 14.6% for FY2014. That is a significant change and we therefore have to keep certain realities in mind as we embark on this. The first is that spending is almost always a one-way street. Once the Government has implemented a spending programme, it is very difficult to take it away. As a famous economist once put it: "Nothing is so permanent as a temporary Government program." Second, we have limited sources of revenue to fund our spending. There is an enduring narrative among many Singaporeans that we are sitting on massive reserves which the Government, like Mr Scrooge, has squirrelled away and refuses to spend. But that mis-states our fiscal position. With your permission, Mr Deputy Speaker, may I ask the Clerks to distribute the table that I have prepared, showing the Government's fiscal position.”
“Mr Deputy Speaker, every February, there is much talk about what goodies the Budget will bring. This year being our nation's 50th birthday, expectations ran particularly high. So, one Straits Times article had the title "How big a hongbao to expect in Budget 2015". Another likened our Finance Minister to the "God of Fortune". I think he gets that every year. Such expectations are unsurprising. It is customary, almost ritual, in Budget sessions for the Government to announce new initiatives to help individuals, families and businesses – subsidies for transport, healthcare, education and other cost of living expenses, wage supplements, CPF top-ups, incentives to increase productivity and others. The response from Members of this House is to support those initiatives, and then ask the Government to do even more and in ever more areas. And I think some of the speeches we have heard, do that. Indeed, our Government has delivered more in the last few years. It has introduced schemes like the Bus Service Enhancement Fund, the Pioneer Generation Package, Permanent GST Rebates and soon, MediShield Life. This year, it unveiled the SkillsFuture Scheme, the Silver Support Scheme, waiver of examination fees and more – all done with the aim of making all our lives a little bit easier. But I think it is also important to discuss the consequences of "doing more". There are two in particular I would like to talk about. The first is the encouragement of the "Free Lunch Myth". That is, the idea that Government can provide goods and services at no one's expense.”
“Thank you, Mdm Speaker. Can I just clarify with Ms Lim on that last answer? She said that some monies were transferred back to the Sinking Fund before the AGO came in and, therefore, they must know what the rules are. They would have only transferred back because they knew what the rules are. So, the question is why did they not transfer everything back before the AGO came in?”
“Mdm Speaker, can I get a clarification of Mr Singh's clarification? He has asked me a question, I have answered him. I have asked him whether he is going to answer the questions which Mr Shanmugam posed and when is he going to answer those questions.”