Indranee Rajah
Singapore
“Mr Speaker, I would like to make a clarification in relation to two written answers on childcare leave issued by the Prime Minister's Office on 25 September 2025 and 3 February 2026 in response to Parliamentary Questions filed by Members of Parliament Ms Cassandra Lee and Ms Valerie Lee respectively.”
“Based on Year of Assessment (YA) 2025 data, about 9,500 working mothers claimed a lower amount of Working Mother's Child Relief (WCMR) under the fixed-dollar basis than they would have under the previous percentage-based basis, for children born or adopted on or after 1 January 2024.”
“We regularly receive feedback on enhancing child-related leave provisions, including the Member's suggestion. In recent years, parental leave provisions have been significantly enhanced, such that parents now have 30 weeks of paid leave, including 10 weeks of Shared Parental Leave.”
“The Government does not have data on the number of transactions involving multiple units on a single residential title that have not been subdivided. Such properties are treated as a single property for Additional Buyer's Stamp Duty (ABSD) purposes when it is bought, so no ABSD is foregone.”
“The Government publishes data on personal income tax, which is publicly available on www.data.gov.sg. This includes data on the number of course fees relief claimants and the amount of the relief granted. The Member may refer to the website to access the data for the first three questions.”
“In considering the duration of leave, we will look at the need. In this case, as I have explained, there is a difference between those who give birth physically to a child and those who adopt.”
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“I thank the Member for his question. Indeed, the Government's concern is the same as the Member's, which is, to make sure that all Singaporeans who are in need are taken care of. So, I think there are a few things. One, we have broad-based schemes and, for broad-based schemes, you need to have fairly rough and ready proxy indicators. There may be some who do not fall within the broad-based schemes, and then, we have to see how we can assist those, look at the way in which we try to identify them, because we do not have the detailed granular information. I would say about 80% are covered through our broad-based schemes like GST Vouchers, MediShield Life, Community Health Assist Scheme, Workfare Income Supplement, Silver Support and so on. I think the group that Mr Lim Biow Chuan is talking about is those who live in private properties who have not declared their income. That is 164,000 out of the 2.7 million adults that I mentioned. And out of those, some actually may have financial resources, either because of savings or they may have non-taxable income by way of dividends or interest, or their children may be looking after them. The challenge then becomes, out of that 164,000, how do you identify the ones who really may have no income at all and may need some assistance. The way it is designed is for those to do so by application. And we do have broad-based schemes like the Pioneer Generation Package that applies to all, even those in private properties, and the upcoming Merdeka Generation Package. So, the ones who do not benefit from the broad-based schemes, we would encourage them to apply if in genuine need because the system does allow for appeals and consideration of particular circumstances.”
“The students can and do visit their friends in other hostels. So, I think that this particular incident will be cause for the universities to reflect on how that arrangement should be managed. Obviously, you do not want to prevent friends from coming to see one another, but the proper recording and the security arrangements for that should be in place. So, in short, as a result of this, I think the universities will be reviewing much more closely.”
“I think the first thing to remember is that it does not take codes and regulations to understand that taking videos of somebody bathing is wrong. That is not rocket science. It just needs certain fundamental values, which are that you must respect other people, respect their privacy, respect their physical space, respect their emotional space. So, we can, and the AUs will be embarking, as I had mentioned in my earlier response, on better education for the students. But fundamentally, it boils down to values. That is a function partly of parents, partly schools and teachers and the individual himself or herself. Because if you adhere to that, you do not actually need to have codes and regulations. The key thing is really making sure that individuals understand that something like this is not a light offence, is not a light thing. It will be taken seriously, and it will be dealt with seriously and appropriately as well. There is also the other aspect which is rehabilitation. In some cases, either they have a problem that needs to be dealt with, and it may require counselling, it may require additional treatment for those who are mentally not well. So, that is another aspect that we will be looking at. Values, education, rehabilitation.”
“The short answer is that all the IHLs are reviewing their security arrangements. In the case of NUS, they have already embarked on it. They are expected to be completed in the coming months. For the other AUs, they will have to complete their review. But the short answer is that they are all looking at it and their priority is to make sure that the campus is safe for students.”
“Institutional processes must, likewise, keep up with the times. Institutions and organisations must also recognise that expectations of how they should respond are changing, not just in Singapore but globally. The “me too” movement is an example. As societal norms and expectations change, all organisations need to keep up with the times, send clear signals that sexual misconduct is unacceptable and equip themselves to deal with sexual misconduct complaints appropriately should they arise. At the end of the day, the best deterrent and protection in such cases is if we respect others, both in the physical and emotional space, and conduct ourselves accordingly.”
“NUS expects to complete these enhancements in the coming months. As part of their overall review of campus security, the IHLs will take steps to address new forms of threats, such as the illegal installation of miniature cameras. For example, SUSS is collaborating with the Singapore Police Force to train its security staff to inspect toilet cubicles or ceilings for such cameras. Third, ensuring a collective stand against sexual misconduct in a modern age. At its core, the issue is about respect for others. There are some who mistakenly think that voyeurism and verbal harassment are not serious because there is no physical contact with the victims. And this is, very simply, just wrong. Voyeurism and other unwanted non-physical harassment exact psychological and emotional harm on victims and, similar to other types of sexual misconduct, have no place in our society. Perpetrators are no less culpable just because they did not come into physical contact with their victims. We can and, therefore, must do better to educate students not only on the importance of respect, but also what constitutes harm and violation. The IHLs are committed to this and will be taking steps to strengthen such education. For instance, NUS will be introducing a course on respect and consent at the start of the new academic year for all students, faculty and staff. Technology has also amplified the potential for harm arising from sexual misconduct. Take voyeurism, for example. With image-capturing devices becoming ubiquitous, especially on mobile phones, such crimes are no longer contained between the victim and perpetrator, and the potential for mass dissemination is much higher. We are updating the Penal Code to deal with technology-enabled sex crimes.”
“The support must extend beyond counselling and begin at the point that the victim first reaches out for help. We should also ensure victims feel safe to step forward and report cases when they occur and seek help. A good support system must create psychological safety for victims, guide them through the processes and protocols involved in the management of their case, update them on investigations and ensure that their concerns and questions are addressed along the entire journey. All these must be done sensitively and with empathy. We also need to recognise that individuals have different resilience and coping levels and that some of the trauma and stress might not manifest immediately. For more severe cases, such as sexual assault, our IHLs will need to be equipped to make judgement calls about the victims’ emotional state and quickly call for external professional help where needed. These are important details that will have to be worked out carefully. Second, campus security to deter would-be offenders. Currently, closed-circuit television cameras (CCTVs) complement campus security guards to ensure security in common areas, and some institutions take the additional precautionary measure of having controlled access to female bathrooms and toilets. More will be done. Over this past week, NUS started installing full-height doors and partitions in the restrooms of all its hostels and sports facilities, as well as new locks at the entrances of the hostel restrooms. Additional CCTV cameras are being installed at more locations on campus. NUS will deploy more security guards at its hostels and introduce roving security patrols across campus. These changes will further strengthen privacy and security on campus.”
“For many, the road to recovery can be long and painful. It takes courage for any victim to come forward and report the incident. There must be strong end-to-end support for victims, starting from the time they step forward to report an incident, to post-incident counselling and psychological support. The recent case reported by National University of Singapore (NUS) student Monica Baey shows that insofar as NUS is concerned, there were shortcomings in victim support and there were clearly areas which were lacking. NUS has acknowledged this and has committed to doing better. NUS is serious about improving its frameworks and processes and has convened a high-level Review Committee to oversee the implementation of various measures by NUS management. One of the immediate steps is the establishment of a Victim Care Unit. The other IHLs are similarly concerned and are in the process of reviewing their support for victims, with a focus on ensuring that the support provided is holistic, timely and accessible. For example, some IHLs have in place 24-hour helplines for incident reporting or counselling services. These ensure that victims or any distressed students receive timely support, even if they come forward outside regular office hours. As the IHLs do their reviews, there are three broad areas of focus. First, support for victims. All the IHLs have full-time counsellors onsite to support victims, as well as a larger group of staff who are trained as para-counsellors to provide additional support. Counsellors are also trained in managing such difficult situations sensitively. Our IHLs will look to strengthening these provisions, taking the victim's entire journey in mind.”
“Minister Ong Ye Kung addressed questions relating to the disciplinary frameworks in the institutes of higher learning (IHLs) and the reviews that the IHLs, including the autonomous universities (AUs) are undertaking. I will now address the other questions raised in relation to sexual misconduct in educational institutions. Ms Tin Pei Ling asked about the prevention of sexual harassment in school settings. Students' safety and well-being are our priority. Schools take a firm stand against sexual harassment and exercise judgement to ensure that disciplinary actions reflect the circumstances of each case. Depending on the facts of the case, a Police report may be made. Beyond disciplinary measures, students are taught to identify risks to their personal safety and learn to seek help from trusted adults, such as their parents and teachers. Teachers are trained to look out for signs of distress and provide victims first-line help. Both students and teachers are supported by school counsellors and other external agencies, where required. The Ministry of Education (MOE) works with the schools regularly to ensure that support measures are relevant and effective. The other areas of concern raised by Ms Foo Mee Har, Mr Muhamad Faisal Abdul Manap and Mr Leon Perera and which I will now address are what support is currently available in IHLs for the victims of sexual offences and whether it is sufficient, as well as what measures are being taken to ensure a safe environment for all students on campus. In terms of support, the first and most fundamental thing to understand is that sexual misconduct can have a lasting psychological and emotional impact on victims. The sense of violation and fear that victims, male and female, experience is real and can be crippling.”
“I thank the Member for his response and that actually fits into exactly the answer that I had given earlier. So, if the purpose is adjudication and punishment, that is dealt with by the Courts. Insofar as the purpose is to protect the Government's interest by preventing the supplier from getting fresh contracts, that is where debarment applies. If the purpose is, as the Member has clarified, to guard against risk, that is addressed by taking into account the tender assessment holistically. As I had explained earlier, that is an exercise in assessment of risk of performance, or risk of integrity to the contract, or reputational risk. So, either way, the purpose is addressed, whether it be Court, debarment or overall holistic assessment.”
“The Member may have misunderstood my question. My question was: in the Member's context, what is the purpose of the debarment? As I have explained, the current policy rationale for the debarment is protection of the Government interest against harm or loss. So, when the Member suggests that there should be debarment in relation to private sector contracts, what is the underlying purpose of the debarment? Is it to punish the company? Is it to protect the Government? Because if it is to protect the Government, then there is not a nexus. So, I am just trying to understand the purpose for which the Member is suggesting we should have debarment, so that I can address the question.”
“May I enquire from the Member, when he asked if it can be taken into account, what is the actual purpose that the Member is suggesting that private sector convictions be taken into account? Is the purpose punitive? Or is the purpose some other purpose? I would be grateful for the clarification.”
“Mr Speaker, I should clarify. Let us make a distinction between past convictions in relation to private sector contracts and past convictions in relation to public sector contracts. So, past convictions in relation to public sector contracts – that is clear. For that, debarment would apply, and I had explained that the main purpose of debarment is to protect the interest of the Government by disqualifying suppliers that have caused the Government to suffer harm or loss from getting fresh contracts, for both procurement and revenue contracts, from all Government agencies. Now, this does not mean to say that the committees or people looking at the SCOD, looking at the contracts or whoever is awarding the tender, cannot consider past convictions of private sector contracts. You can. But that is not an exercise in debarment, under the debarment policy parameters. That would be an exercise in looking to see holistically whether there is a risk to contract performance, to contract integrity, and reputational risk. So, in other words, because the Parliamentary Question was filed with respect to debarment and, hence, my response was on the policy parameters that apply to debarment. But in terms of award of tender, the committees or whoever would be awarding the tender can look at it holistically and take into account the suppliers' track records which could include corruption convictions. But that is an exercise in relation to assessment of risk for contract performance and contract integrity, rather than an exercise of debarment.”
“Mr Speaker, I beg to move, "That the Bill be now read a Third time." [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Third time and passed. (proc text)]”
“Mr Speaker, I beg to move, "That the Bill be now read a Third time." [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Third time and passed. (proc text)]”
“Mr Speaker, I beg to move, "That Parliament doth agree with the Committee on the said resolutions." [(proc text) Question put, and agreed to. (proc text)] [(proc text) Resolutions accordingly agreed to. (proc text)]”
“So, it would not be so much a situation of MOE taking over community programmes like that, but what MOE and the UPLIFT office can do, together with MSF, is see how we can link up, coordinate better. If programmes like that need assistance or support, we will see how we can connect you with the entities or persons who can better support such programmes.”
“I thank Dr Lily Neo for her question. Maybe I can outline what the thinking of the philosophy behind UPLIFT is, and then I will address the question. There are some things that should be done in the school within curriculum time by teachers. Then there is something that can be done in the school but not part of the curriculum, and not necessarily by teachers. And then, there are things which can be done in the community. So, the SCC, which is after school, is really a facility that is provided outside of the school curriculum. For that, what the school does is that the school provides the premises, and the school works with others to provide the programmes. So, the Big Heart Centre, for example, was one of those; that is, the three self-help groups that have come together to provide services, and they work together with the school. So, that is what the expansion of SCCs is about. Then, you have things which are in the community and, for that, there is actually a value to having community-based programmes, because not everybody may want to send their children to an SCC. As Members know, when you live in a rental block, sometimes the parents work shift hours, they prefer their children to be at home at a certain time; they cannot collect them from school. So, we would like to encourage VWOs, as well as grassroots organisations and other community projects, to continue. The question is how to link them up. The CATCH Plus programme that the Member referred to is actually a very good programme. I visited the Member's constituency and I was introduced to the ReadAble Programme. I was very impressed by the work that they are doing there, and there is value in that.”
“Dr Intan Mokhtar asked about what we are doing to equip teachers to deal with students with special needs. There is training for basic awareness for SEN. MOE has equipped all beginning teachers with the basic understanding of SEN since 2005 through a compulsory module in the NIE pre-service training. This enables the teachers to understand and manage the learning demands for students with SEN. And we also have teachers who are trained in special needs. A core group of teachers in every school is equipped with a deeper understanding of SEN through the 108-hour certificate level training that is known as the Teachers Trained in Special Needs (TSN) course. And as of July 2018, 512 teachers have been trained under the revised TSN programme, and some of these TSNs go on to acquire deeper knowledge in SEN support by attending disability-specific training modules. With regard to peers, the Member is correct. You do want the other students to be empathetic to students with SEN and generally know how to relate to them. When I visited some of the IHLs and spoke to some of the students with SEN, they mentioned that when they were younger, they were often misunderstood. Their peers did not talk to them, would not sit down and interact with them. And I think that really did have an impact on them. But helping students to understand what it is to be a friend to someone with SEN makes a huge difference. And it is not a one-way thing; it is two ways because the child without SEN is also learning what it is like and receives knowledge that way as well. So, we will continue to work on that to make sure that their peers interact well with them.”
“Mr Chairman, I thank Ms Denise Phua for her clarification. Indeed, the numbers are large. What I can say to Ms Denise Phua is that we will continue to do more to see how we can support the students with special educational needs (SEN) in our schools. It is not just a question obviously of the AEDs but also the teachers, the peers and building up an environment that is generally supportive. So, we have made quite a lot of headway in the last few years, and we will continue to do so, and we will certainly take the Member's suggestions into consideration.”
“Mr Speaker, I beg to move, "That Parliament doth agree with the Committee on the said resolutions." [(proc text) Question put, and agreed to. (proc text)] [(proc text) Resolutions accordingly agreed to. (proc text)]”
“When we look at outcomes, we look at a variety of things. Obviously, we want to look at efficiency, we want to make sure, depending on the project, reliability. If the question is: will we look solely at one factor, for example, "Does this result in employment of a certain group?", it cannot be seen in isolation. So, where we can, we try to encourage businesses to employ. But that is really done through the work of MOM and it cannot be a single type of factor driving the way that project requirements are structured, because then you might have all sorts of other unintended outcomes.”
“Thank you. As I was saying, the Taxpayer and Business Service Centre co-locates taxpayer services, CorpPass, ACRA and Enterprise Singapore services. Businesses can meet staff from ACRA, IRAS, Enterprise Singapore SME Centre and CorpPass there for help with their questions about regulations and tax obligations, amongst other issues. Mr Saktiandi Supaat asked about R&D spending. We take a portfolio approach. We support research, development and innovation through different schemes where we also require co-payment in order to keep them relevant. On the Government side, where the innovation has a long horizon, are higher-risk or involve manpower development like PhD training, then the Government takes a bigger role. In R&D, we invest in areas that support current and future competitiveness, like digital technology, advanced manufacturing, urban solutions and sustainability, and health and medical solutions. In conclusion, Mr Chairman, the Government will keep its focus on ensuring fiscal prudence, using resources efficiently and effectively, and enhancing our policies and processes to support businesses. We will continue to partner citizens, businesses and the community to achieve good outcomes with the resources entrusted to us.”
“Mr Speaker, the Singapore Bicentennial is an opportunity for us to reflect on the long arc of Singapore's history. Through the events and projects planned for this year, the Singapore Bicentennial Office will highlight the contributions of the diverse communities and peoples who arrived on our shores before and after 1819. This includes women and men of different ethnicities. For women, in particular, we have started to share through social media stories of prominent persons, such as Hajjah Fatimah, a tradeswoman and philanthropist who came to Singapore in the 1800s and built houses for the poor and donated money and land to build a mosque for her community; Constance Goh, the pioneer of the Singapore Family Planning Association, who also started a feeding centre for poor children after World War II; Elizabeth Choy, a heroine who was also the first and only woman member of the Legislative Council in 1951; and Checha Davies, a social worker and a community volunteer who campaigned for women's economic, educational and social rights, leading to the passing of the Women's Charter in 1961. Besides featuring individual women, the Singapore Bicentennial Office will also work with over 270 community partners to highlight groups of women who have made important contributions to Singapore. For instance, the Office is working with the National University of Singapore Asia Centre for Social Entrepreneurship and Philanthropy to study the role of female philanthropists in the 1900s. The Office is also partnering the Singapore Federation of Chinese Clan Associations to develop a heritage trail linking the iconic infrastructure and monuments built by Samsui women during the 19th and 20th centuries. 2.30 pm”
“Investigations into the individuals concerned are ongoing. A request for Mutual Legal Assistance has been sent out to the foreign authorities to formally seek assistance to secure or obtain further evidence for use in the Corrupt Practices Investigation Bureau (CPIB) investigations. We are awaiting reply on our request. How quickly and to what extent our request will be processed is a matter for the jurisdiction to which the request is made. We wish to assure the Member that the CPIB will investigate the case thoroughly when all evidence and information have been secured. Only after the investigations are completed, can the Attorney-General's Chambers then properly assess the case and decide on the appropriate response.”
“I thank the hon Member for his questions. The first was whether it is likely that we would find intractable cases. I would think the answer to that would have to be yes, because there are some parents who just, no matter how much we encourage or we try, they can be as the Member described, "intractable". The Member's second question was whether I would agree that we should have a suite of options. Certainly. And this is what we are looking at because it is one thing to have programmes; it is quite another thing to get some of these parents to bring their children to the programmes. What you want to do is to get buy-in from the parents on that. The Member asked then whether or not it would be necessary to widen the ambit of CYPA. I would put it this way. We will not rule out looking at whether we need any statutory levers. But whether or not CYPA is the correct piece of legislation in which to have them is a separate matter. So, what we really need to do, for one, is to try to understand what are the reasons why some parents do not send their children for such programmes or, for whatever reasons, neglect their education. Two, the general approach is, as far as possible, to use statutory levers as a last resort. Because when you have to do it by enforcement, then you are always dragging the parents to Court or trying to force them to do something, which you can do but it is so much better if the parent could take onboard the fact that the child's education is important and wants to do it willingly and voluntarily. Because if you can get the mindset right and you can have a mindset shift, then the rest will follow naturally. So, the Member is correct. You do have to look at it holistically and we will study a wide range of options.”
“Yes, indeed. I thank the Member for her suggestion. What the Member has pointed out is correct. It is not just a question of adding on to academic programmes or assisting them with their academic work. It is also very much to do with character-building, values, providing a structured environment, and also helping them with resilience and self-motivation. In that respect, community partners have a big role to play. So, the task force is looking to see how we can have a many-helping-hands approach and how community, self-help groups, voluntary welfare groups can all participate in this.”
“MAS aims to safeguard the interests of consumers by ensuring that they are provided with adequate information to make more informed investment decisions and are dealt with fairly by financial intermediaries. MAS has developed a number of resources on its website and through MoneySENSE, the national financial education programme, to share with the broader public common red flags of investment scams and that investors should be alerted to. MAS will continue to work with industry, schools and other Government agencies to enhance financial literacy among Singaporeans so that they can make sound financial decisions. Mr Deputy Speaker, let me conclude. The new VCC corporate structure is a game changer which will help position Singapore to be a fund domiciliation hub and enhance the value proposition to fund managers. It will attract more funds to domicile here, and provide new business opportunities for lawyers, accountants, fund administrators and fund custodians. It will enhance our international competitiveness as a leading fund management hub and financial centre, while providing safeguards to maintain Singapore’s reputation as a clean and trusted hub. Mr Deputy Speaker, I beg to move. [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House. (proc text)] [(proc text) The House immediately resolved itself into a Committee on the Bill. – [Ms Indranee Rajah.] (proc text)] [(proc text) Bill considered in Committee; reported without amendment; read a Third time and passed. (proc text)]”
“This was after MAS had observed that a number of non-conventional products, such as buyback arrangements involving gold or silver and plantation schemes, were deliberately structured to fall out of MAS' regulatory framework. It is an offence to operate a fraudulent or deceptive scheme. There are many channels by which MAS and other law enforcement agencies receive information on such suspicious investments, such as from members of the public, the financial industry, and other regulatory and enforcement agencies, local as well as overseas. Where the information received suggest a breach of laws, the relevant authorities will investigate and will take appropriate action. Mr Gan Thiam Poh also asked about the number of complaints against fund managers. The number of complaints has been relatively low, on an average of 13 complaints per year against fund managers over the past five years. These complaints generally relate to the closure of funds, fund performance or service matters, such as short notice given for submission of voting, collection of personal information, failure to receive statements of holdings. We recognise, however, that no amount of regulation can prevent fraud. Ultimately, investors still need to exercise caution and evaluate the risks and features of any investment product or schemes offered, taking into account information available on these products or schemes, before making an investment decision. I strongly encourage investors to deal only with entities regulated by MAS, and to consider the additional potential risks of dealing with investments and entities which are not regulated by MAS.”
“VCCs must appoint fund managers regulated by MAS and directors who are fit and proper to manage and give directions on its activities. ACRA may direct the removal or replacement of a director who it is satisfied is not fit and proper, where it is necessary in the interests of the VCC, the VCC’s shareholders, or the public, to do so. I agree with Mr Louis Ng that Singapore should not be perceived as a tax haven. Fundamentally, Singapore is a substantive economy, built on actual economic activities. The requirement for VCCs to be managed by fund managers regulated by MAS means that substantial fund management activities are already conducted in Singapore. Singapore works closely with the international community to deter the abuse of financial systems for the laundering of illicit funds, including proceeds of tax crimes. We have also implemented international standards to combat base erosion and profit shifting (BEPS). Under our laws, profits taxed in Singapore must comply with the international arm's length principle to ensure that profits commensurate with the actual economic activities conducted in Singapore. Singapore exchanges financial account information with a wide network of tax authorities in other jurisdictions. As regards Mr Gan Thiam Poh’s concerns about scams and Ponzi schemes, I would like to assure him that MAS continually renews its regulatory framework to safeguard the interests of retail investors. For example, to enhance investor protection, amendments to the Securities and Futures Act (Cap 289) were passed by Parliament last year to provide MAS with greater flexibility and powers to bring non-conventional investment products within MAS’ regulatory parameters.”
“First, we will impose anti-money laundering and countering the financing of terrorism (AML/CFT) requirements on VCCs, essentially requiring them to conduct due diligence checks and monitoring of all VCC shareholders, including looking through any nominees to the controllers behind them. This will help to ensure that the VCC shareholders are bona fide and will deter criminals from attempting to abuse the VCC for illicit purposes, including tax evasion. In practice, being primarily an investment vehicle, the VCC can choose to outsource this function to its fund manager or distributer, such as a bank. However, MAS will require VCCs to delegate the performance of AML/ CFT controls to an FI that is regulated and supervised by MAS for AML/CFT purposes, to be assured that VCCs are leveraging well-qualified firms to do these important checks. The FIs to which these AML/CFT requirements are delegated will be required to obtain information on the VCC shareholders to the extent necessary for them to perform the delegated responsibilities. MAS will consider providing further guidance on the eligible AML/CFT-regulated FIs which a VCC can delegate its AML/CFT requirements to. I should highlight that the VCC is ultimately responsible for its own AML/CFT obligations, regardless of which FI the VCC outsources these functions to. MAS will adopt a risk-based supervisory approach, and higher-risk VCCs will be subject to closer scrutiny. MAS will not hesitate to take firm action against any VCC if AML/CFT controls are found to be inadequate. Second, to ensure that VCCs are set up for legitimate purposes, there are requirements in the Bill as to who can manage them.”
“Money invested in investment funds constituted as VCCs are therefore expected, in large part, to continue to be invested in assets overseas. At the fund level, all regulated fund managers, including those managing VCCs, are expected to put in place effective liquidity risk management frameworks and practices to ensure that their funds remain capable of fulfilling redemption requests in a timely manner when there are significant fund withdrawals. Fund managers may also use liquidity management tools, such as suspension of redemptions and redemption gates, under exceptional circumstances, to pace out redemptions and help minimise the risk of transacting at-fire sale prices. Mr Louis Ng has queried how we will safeguard against misconduct by VCCs and protect Singapore's international reputation. Mr Murali Pillai has also asked how MAS can ensure risks relating to money laundering and financing of terrorism are managed, in particular, for certain managers that are not regulated by MAS. Safeguarding the integrity of our financial system against illicit funds and activities is paramount in ensuring that Singapore continues to be a financial centre trusted by international investors and global FIs. Singapore is committed to the global fight against money laundering and financing of terrorism. We remain vigilant to the risk of abuse of our financial system as it grows in scale and sophistication. In crafting the policies for VCCs, we have considered these risks and put in place two levels of safeguards to address them, taking reference from international standards.”
“Global asset managers, such as AIA Investment Management, which set up its first group-wide regional investment hub in Singapore, continue to anchor activities locally. The VCC will play an important role in enhancing Singapore’s value proposition which includes a robust regulatory regime. We believe foreign fund managers will find Singapore an attractive location to set up their operations and enjoy economies of scale from domiciling their funds in Singapore. Nonetheless, MAS will monitor the adoption and take-up of the VCC structure and consider whether specific incentives are needed to encourage more fund managers to set up funds as VCCs. Finally, let me address the points on the potential risks of the VCC framework and the mitigating measures and safeguards that have been put in place. Mr Saktiandi Supaat asked whether the flexibility accorded to investors to exit their investments in a VCC could cause disruptions or volatility to our economy. This flexibility is not unique to VCCs and is available to fund investors today. We have recognised it is important for investors to have the flexibility to enter into or exit their investments at any point in time. MAS is very much aware of the risks and have taken steps to address them at the system and fund levels. MAS closely monitors systemic risks to the economy, including those that may be caused by capital flows through investment funds. Risks posed by the Singapore fund management sector to our financial markets are currently contained. A large part of assets under management in Singapore are invested outside Singapore, in the Asia Pacific region. The VCC provides an alternative structure of fund vehicle. But is not likely to significantly affect the investment behaviour of fund managers and investors.”
“Over the past year or so, MAS has worked closely with industry associations, local service providers and consultants to familiarise them with the value proposition and features of the VCC framework. The fund management industry associations – Investment Management Association of Singapore (IMAS), Alternative Investment Management Association (AIMA) and Singapore Venture Capital Association (SVCA), as well as industry consultants, have provided useful feedback on the VCC framework. They have partnered MAS to reach out to their members and clients through industry briefing sessions. MAS will undertake more engagement sessions in the lead-up to the introduction of the VCC framework. MAS is engaging local fund service providers as well as training providers to identify potential competency gaps and develop training programmes to ensure that industry professionals have the requisite skills to cater to the needs of VCCs. Specifically to Mr Saktiandi Supaat’s point about upskilling accountants, MAS has also been working with the auditing firms, as accountants will need to have the relevant competencies to support the preparation of financial statements of VCCs using either local or global accounting standards and principles. MAS will be issuing industry guidance notes prior to the launch to further support the practical implementation of the VCC framework. Mr Saktiandi Supaat asked whether the Government will proactively engage foreign firm managers to come to Singapore. Ms Foo Mee Har and Mr Murali Pillai also asked if we can incentivise fund managers to set up VCCs here. To attract global fund managers and deepen their investment capabilities here, MAS has taken the lead to foster and promote a conducive environment for fund managers.”
“MAS will, as part its review of the funds’ documentation, check that such disclosures are made. The Securities and Futures Act (Cap 289) requirements will apply to VCCs as well. Looking ahead, Mr Murali Pillai has suggested that some of the features of the VCC framework, such as its ability to segregate assets and liabilities and avoid contagion risks between sub-funds, may benefit other financial activities, such as insurance-linked securities, insurance captives, assets securitisation and family offices. The VCC framework today is intended and designed for use as a corporate structure for investment funds. But I agree that some of the features could be useful for other applications. MAS will consider widening the scope of the VCC framework with appropriate modifications for applications in other sectors, in subsequent reviews. Next, I will touch on the opportunities that the VCC framework will bring to Singapore. The introduction of the VCC framework will encourage fund managers to domicile their investment funds in Singapore. In turn, this will increase the pool of serviceable clients and create new work for local service providers, such as lawyers, auditors, fund administrators and fund custodians. For example, a new fund setting up as a VCC in Singapore will need, first, lawyers to draft the fund's legal documents; second, fund administrators to assist with the day-to-day operations of the fund; and third, accountants to prepare and audit the financial statements of the fund. The economic benefits rising from fund domiciliation will accrue to our local service providers and industry professionals.”
“The VCC framework will adopt similar requirements as the inward re-domiciliation regime under the Companies Act (Cap 50). We will, however, not require re-domiciling entities to be of a certain minimum size in terms of assets, revenue and employees, as investment funds are inherently different from operating companies. Moreover, imposing such minimum criteria for re-domiciling entities would restrict the entry for smaller funds, such as those investing in venture capital or those used to seed or launch a new strategy. MAS will provide further details on the operational process for re-domiciliation in the subsidiary legislation. Ms Foo Mee Har has asked whether more can be done to facilitate the adoption by local funds of the VCC structure. Existing local funds which are companies, unit trusts or LLPs can restructure to adopt the VCC structure, for example, by incorporating a new VCC and transferring the assets to the VCC. MAS will also study whether and how statutory mechanisms to facilitate the adoption of the VCC structure can be provided for in subsequent reviews. The tax framework will be studied in tandem. One of the key features of the framework is that the VCC may pay dividends using capital. Mr Leon Perera asked whether there are safeguards to make sure retail investors understand that the VCC may deplete its capital when paying such dividends. Let me assure Mr Leon Perera that the regulations under the Securities and Futures Act (Cap 289) require offering documents of funds to contain all information necessary for investors to make an informed assessment. In particular, funds that pay dividends out of capital are expected to disclose that dividends may be made out of capital and the implications of such dividends for investors.”
“MAS will study this and consider if there is a need to make further changes in subsequent legislative amendments. Mr Murali Pillai has asked whether it was intended for information relating to a particular sub-fund to be accessible by all shareholders of the VCC, including those who may not have interests in that sub-fund. Under the Bill, a VCC's financial statements are required to be made available to all VCC shareholders. As Mr Murali Pillai pointed out, this would mean that financial information of individual sub-funds in an umbrella fund would be made available to all shareholders of the same VCC. One of the main benefits of the VCC framework is its ability to be used as an umbrella fund with multiple sub-funds. By not restricting shareholders' access to financial information of sub-funds within an umbrella VCC, this brings about economies of scale, as sub-funds within the umbrella fund would be able to consolidate certain administrative functions, including the preparation of financial statements. For the same reason, a VCC will also be able to provide its financial information to prospective investors. Such transparency will allow and encourage existing and prospective investors to monitor and assess the VCCs ' financial performance. They will be more informed and be able to hold fund managers to account. In terms of shareholder privacy, a VCC is not required to provide a shareholder with information relating to its other shareholders. An investor in a particular sub-fund will not have the right, under the Bill, to obtain information, such as the identity and shareholding of another investor in the same sub-fund. Mr Murali Pillai has also asked about the criteria for overseas fund structures to re-domicile as VCCs.”
“Tax residence of VCCs and their sub-funds are determined based on facts and circumstances. To demonstrate that a VCC and its sub-funds are tax residents of Singapore, the Inland Revenue Authority of Singapore (IRAS) will issue a Certificate of Residence (COR) in the name of the VCC, with the names of the relevant sub-funds in the COR. Singapore will allow a sub-fund, being part of a VCC resident entity, to access Singapore's tax treaties. More details on the tax treatment for VCCs will be released by the end of this year. Ms Foo Mee Har has also noted the importance of operational flexibility in closing down sub-funds. However, operational flexibility must be balanced against other considerations, including creditor protection. As sub-funds have assets and liabilities attributable to them, we need a fair, orderly and robust procedure to deal with the legal issues and practical difficulties that may arise in the course of liquidating a sub-fund and distributing its assets. Importantly, the legal obligations of parties in respect of a sub-fund's assets and liabilities must be clear. The laws in general principles on corporate liquidation under the winding up provisions of the Companies Act (Cap 50) provide an established framework to ensure that the assets and affairs of sub-funds are dealt with in a fair and orderly manner. Insolvency practitioners in Singapore are also familiar with the winding up regime under the Companies Act (Cap 50) and would be well-placed to act as liquidators of sub-funds. Ms Foo Mee Har has mentioned there could be room to further streamline processes and enhance operational efficiency with regard to the procedure for closing down sub-funds.”
“While the ICC structure provides legal certainty over the status of its sub-funds, it has significant limitation in allowing umbrella funds to reap economies of scale and is, therefore, not conducive to the operation of investment funds. For this reason, the PCC structure adopted by the VCC framework is also used in most international fund domiciles, such as the UK, Ireland and Luxembourg, whereas the ICC structure is only adopted in Guernsey. Notwithstanding the lack of separate legal personality, VCCs are required under legislation to segregate assets and liabilities of sub-funds. This will mitigate cross-cell contagion among sub-funds under the umbrella structure and, at the same time, ensure proper ringfencing. I would also like to reassure Ms Foo Mee Har and Mr Leon Perera that VCCs, including their sub-funds, can avail themselves of Singapore's competitive tax regime. As announced by the Ministry of Finance (MOF) in its 2018 Budget Statement, a VCC will be treated as a company for tax purposes and will be allowed to enjoy our tax incentives for funds. Mr Leon Perera asked about sections 13R, 13X and 13Y of the Income Tax Act. The tax exemptions under sections 13R and 13X of the Income Tax Act will be extended to VCCs. However, section 13Y is not applicable as that is for prescribed sovereign entities and approved foreign government-owned entities. The 10% concessionary tax rate under the Financial Sector Incentive – Fund Management Scheme will be extended to approved fund managers managing incentivised VCCs, and the existing Goods and Services Tax (GST) remission for funds will be extended to incentivised VCCs. We intend for VCCs that are tax residents to access Singapore's tax treaties.”
“Mr Deputy Speaker, I would like to thank all the Members who have spoken on the Bill and for their support for its introduction. Let me address their questions in three parts. First, competitiveness of the VCC framework as well as clarifications on its features. Second, opportunities for local fund service providers and how we are working with them to capture these opportunities. And third, the potential impact on Singapore from a financial stability, risk and reputational standpoint. As Ms Foo Mee Har has highlighted, Singapore is, relatively speaking, a newcomer, competing with long-established fund domiciles, such as Luxembourg and Ireland. Being a newcomer, though, has its advantages. We are able to take reference from tried and tested features of comparable structures, such as the UK and Ireland, so that our VCC framework is on par intentionally, and tailor the features to meet the needs of our industry. For instance, the key advantage of our VCC framework is its enhanced flexibility to be used for both open-ended and close-end funds, and which are suitable across traditional and alternative investment strategies. This may not necessarily be available in other jurisdictions. Ms Foo Mee Har raised feedback that giving sub-funds legal identities would be a more straightforward and effective way to ringfence their assets and liabilities. MAS did, in fact, consider this, but decided against it. Internationally, corporate fund structures with cellular cells are structured either as protected cell companies (PCCs) or incorporated cell companies (ICCs). The key difference between the PCC and ICC is whether sub-funds are accorded separate legal personalities. The PCC does not; the ICC does.”
“In exercising that discretion, the Registrar of Companies will take a practical and commercial approach and all relevant factors, including the fact that current industry practice is not to register and the fact that it was an open question of whether such Liens were registrable until the Diablo case was decided. In short, we will take a commonsense approach and also, assuming that the Bill is passed today, we will work to bring the commencement date of the amendments into effect as soon as possible. Mr Speaker, I beg to move. [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House. (proc text)] [(proc text) The House immediately resolved itself into a Committee on the Bill. – [Ms Indranee Rajah.] (proc text)] [(proc text) Bill considered in Committee; reported without amendment; read a Third time and passed. (proc text)]”
“With respect to Mr Louis Ng's second question on whether, because until the new amendments take effect, he said the lienor company and officers may be guilty of an offence, and asked for clarification on whether there will be penal consequences against the shipping companies and their officers. First and foremost, I should clarify, it is not the case that all Shipowner's Liens created prior to the effective date of these amendments need to be registered. New subsection 3AC provides that the lien will be regarded as registrable and be subject to the consequences of non-registration only if: as at the effective date of the amendments, the company has been wound up; or a creditor has acquired a proprietary right to, or an interest in the subject matter of the Lien. So, in other words, it is only in those two situations – the company has been wound up or a creditor has acquired a proprietary right to or interest in – that it will become registrable. Therefore, a large majority of the existing Liens will not be registrable and, hence, no offence would be committed. They will only be regarded as having been registrable in the event of winding up or other creditor acquiring an interest. So, unless this has already occurred, you would not know at this stage whether those Liens are registrable or not, as these are contingent events. Compared to the overall number of Shipowners' Liens, we would expect that the number affected by winding up or other creditors acquiring an interest, and hence being registrable, to be a small proportion of the whole. In those instances, suffice to say that this will be a matter for prosecutorial discretion.”
“Mr Speaker, I would like to thank Mr Dennis Tan and Mr Louis Ng for their support of the Bill. In their speeches, they have highlighted the practical difficulties that would be faced by shipping companies if the requirements for a lien to be registered were maintained. The difficulties that they have described are very real. For that reason, it was in response to feedback from the shipping industry, the Singapore Chamber of Maritime Arbitration (SCMA), and also looking at the Court decision, that we move very quickly to put forward these amendments to Parliament. Mr Louis Ng had two questions. The first was, he asked, given the approach of Singapore and Hong Kong gives the same practical outcome, whether there were practical implications or differences between the two. On the practical implication of affirming the Court's characterisation of the lien as a charge, as I explained earlier in my speech, this results in Shipowner's Liens retaining their nature as security. This affords enhanced protection to shipowners and charterers in the event of default and insolvency, as they will be secured creditors. Otherwise, the shipowners and charterers would have to compete with unsecured creditors for payment. In short, with these amendments, in Singapore, a lien is still a charge and, because it is a charge, it will rank ahead of charges which are created after it, and it will also rank ahead of unsecured claims. In Hong Kong, it is not a security at all and does not have to be registered. So, in Hong Kong, the lien will rank together with unsecured claims after secured creditors and, as Mr Dennis Tan pointed out, this, in fact, puts us in a better position.”
“Mr Deputy Speaker, purposeful play is for the learning part, but they do also have just play-play. They do, so do not worry. There are both types of play. We will certainly encourage our teachers and remind them of that. On PSLE, there has been a lot of debate on that. I think we all agree that it is not a perfect system, but it is something that has stood us in good stead. We do not want to dismantle something which really helps us to channel the students to the further path ahead. But I think the point that Mr Kok Heng Leun is really making is that, prior to age 12, or leading up to age 12, you want them to enjoy their learning; you want them to have enough content that they have a solid foundation; you do not want them to have so much stress that, not only do they not enjoy it, but it really becomes self-defeating in terms of the educational purpose. So, as I have said earlier, on those broad objectives, we are aligned. And we will find ways. So, as we have said, we will work together on this. And, in fact, as Members have said, there is much hope, we are working to transform the system so that our students can be ready for the future. We look forward to working with Members, parents, teachers, educators in accomplishing this purpose. 6.56 pm”
“We already planned to save ahead and borrow for long-lived capital investments which are enjoyed mainly by future generations. But even with these measures, there will still be a gap. And this is because our healthcare, security and other social needs will continue to grow. This would involve recurrent expenditure for broad-based needs that benefit each generation and should, in principle, be supported by recurrent and broad-based taxes so that each generation pays for its own spending sustainably. The GST increase is planned for ahead of time to ensure that we are in a sound fiscal and financial position to meet the increased expenditure on the social and security needs of Singaporeans in the years to come. On the Member's second question of whether we can expect GIC and Temasek to sustain this kind of level of performance or returns going forward, there are near-term challenges, such as the current tensions over trade which can affect global economic growth and the investment outlook. But as I have mentioned, such ups and downs are part and parcel of investing. What is important is that we do not take the creditable investment performance by GIC and Temasek so far for granted. The Government will continue to focus on their long-term overall performance and remain prudent and responsible in how we use our Reserves.”
“GIC and Temasek have both made money over the long term and have contributed significant revenues to our budget over the years through the NIR framework, as explained earlier. The NIRC is the single largest source of income of Government revenues, and it has enabled us to keep taxes low, and also to keep GST increases at bay for many years. If we did not have the NIRC, then we would have had to either double the amount of personal income tax or our GST collection to fund the same amount of expenditure over the years. Then, one may ask, "Well, if GIC and Temasek contribute to the NIRC, then would not any losses also affect our revenues?" As to this, the NIR framework spending formula is based on expected long-term real returns. It is driven by an overall portfolio approach, taking into account the long-term expected returns of different asset classes, factoring in the diversification benefits, and adjusting based on the long-term investment outlook. From this perspective, the outcome of individual investments or the state of markets from one year to the next do not have a significant impact on our spending levels. So, in short, investment outcomes in UBS and so on have not had a significant impact on our revenues. That is the design intention behind NIR. It is designed to smooth out the highs and the lows of investment returns, and to give stability to our fiscal planning. The need for the GST increase was explained in the 2018 Budget Statement. And it is really because we have to prepare for the future. We have enough for this decade, but in the next decade 2020 to 2030, our expenditure needs will grow. We have to plan ahead to meet those needs. We are already reinforcing prudent spending by constraining the growth of Ministry budgets.”
“Mr Speaker, with regard to the first question on whether the planned GST increase is linked to past investment losses, such as UBS, Barclays and Merrill Lynch, the short is answer is no. They are not linked. To be even more specific, if the question is whether the planned GST increase is to cover losses from investments into these or other counters, the answer is also no. The nature of all investments, whether by Government, sovereign wealth funds, or otherwise, is that you are taking a calculated assessment in the present on the performance of an asset in the future. It would be wonderful if we had a crystal ball that allows us to see into the future and can accurately predict all investment outcomes. However, the reality is otherwise. It is not possible to guarantee that all investments will make money all of the time. There will occasionally be losses. That is part and parcel of investing. The only way to avoid any investment loss is just to sit tight and not invest our Reserves, but that would not help either. Because if we just leave the Reserves as they are and do not invest them, not only will those Reserves not grow, but they will be eroded over time by inflation. So, we invest, and that means taking some risks and accepting some losses. But the overall objective is to reap more than you lose over the long term. In the case of GIC and Temasek, their long-term performance has been very creditable, as I had explained earlier, and they have made money over the long term. Hence, to the question of whether we have to raise GST because of investment losses on certain counters, that is plainly not the case.”
“The provision distinguishes between (a) the lawyer who transferred the unclaimed client money into the UM Fund, and (b) any lawyer who may have held the money previously, to account for the possibility that some unclaimed client money may have been passed from one retiring lawyer to another practising lawyer previously. Such retired lawyers will, therefore, also have the clarity and certainty arising from the limitation period, too. [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House. (proc text)] [(proc text) The House immediately resolved itself into a Committee on the Bill. – [Ms Indranee Rajah.] (proc text)] [(proc text) Bill considered in Committee; reported without amendment; read a Third time and passed. (proc text)]”
“Finally, I would like to reassure Mr Murali Pillai that the new UM Fund is not an additional source of income for the Law Society. Rather, the Act, as amended, expressly requires the money to be invested for use to fund pro bono services. The subsidiary legislation will also prescribe in greater detail how the money in the Fund may be used and, in this regard, the Minister must also approve any subsidiary legislation which the Law Society Council makes for the purposes of the framework. This will serve as an additional check. Thus, it would be fair to say that the people who will benefit from the new UM Fund will be members of the public who are in need of, and eligible for, the Law Society's pro bono services. Separately, Ms Rahayu Mahzam had inquired about the intent of the new section 70K(4). To summarise, this section provides that no action to recover any transferred unclaimed client money may be brought – after the expiry of six years from the date when the Law Society approves the transfer – against, first, the solicitor or Singapore law practice that paid the transferred unclaimed client money into the UM Fund or, second, any solicitor or Singapore law practice that held the money on account of a client at any time before that money was paid into the Fund. The intent of the provision is to set a limitation period of six years against all actions that may be brought against any lawyer or law practice who has ever held the unclaimed client money previously.”
“So, in other words, the lawyer or the law firm has to make all reasonable efforts first, before they can pay money over to the Fund. As to what the "reasonable efforts" are, the subsidiary legislation will prescribe what the required "reasonable efforts" are, taking into account relevant circumstances previously mentioned. In turn, the Law Society may not approve a transfer unless it is satisfied that the prescribed “reasonable efforts” requirements have been satisfied. The burden of taking steps to return the money is rightly placed on the lawyers because they are the ones with the primary duty to return the money to the client, and they are the ones who have the files and records and will, therefore, be in a better position to contact the clients. It would not be practical to expect the Law Society to make efforts to search for the owners of the money when their own lawyers have been unable to find them despite reasonable efforts. In any case, as I mentioned earlier, if the lawful owner of the money surfaces after the money has been transferred, they will still be able to apply to the Law Society for the transferred money to be returned to them. This strikes a balance on what is fair on the lawyer, the client and the Law Society. To complement the framework, my Ministry has also written to the Secretariat of the Professional Conduct Council to ask them, to consider introducing in the Legal Profession (Professional Conduct) Rules, an express duty for lawyers to take reasonable efforts to return client money without undue delay, once the money is no longer required for the purpose for which they are held. If implemented, such a duty may reduce the number of new cases of unclaimed client money being accumulated.”