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 think the Member took the 71,000, minus off the 43,000, minus off 1,500, and that gives a figure of approximately 25,000. These are still under investigation or audit. So, they are in the process of being looked at. I am not able at this stage to say whether they are rejected upfront or whether they are clawed back because they are still being looked at.”
“If I may address the Member's questions in turn, I think what the Member is really seeking is to have an idea, the sense of the claims which are actually rejected before payout and after payout. As I had mentioned earlier, around 71,000 have been investigated or audited. After they have been investigated or audited and rejected upfront, it is about 43,000. There are a number of investigated and audited cases that led to actual clawback. That is about 1,470 or if we round it up, 1,500. That is the first part of the question. The other question the Member had asked was whether we should review the approval process. That is something that we constantly look at to see how we can improve it. But there is also the other aspect, which is where people deliberately attempt to abuse the system. And that is, in fact, the reason why we do these audits. We want to make sure that even though on the face of it, it looks like they have done the application properly, you have got to look behind it. That is why IRAS investigates and does audits. As I have said earlier, we will have no hesitation in prosecuting those that are found to be abusing the system. The Member also asked about whether prosecutions included consultants. I am afraid I do not have that information with me at the moment, but that can be checked.”
“Mdm Speaker, since inception until January this year, 102,000 companies have benefited in one way or another from the Productivity and Innovation Credit. To put this into perspective, this is 70% of all active companies in IRAS' records for the Year of Assessment 2014. For a scheme with such a wide reach, it is expected that some taxpayers will try to game the system through artificial and contrived arrangements even as the majority of claims are genuine. For example, a group of taxpayers had hired each other as employees and paid each other just enough to satisfy the three-local employee condition in order to qualify for the cash payout. To address these abuses, IRAS conducts rigorous compliance programmes to review and audit PIC claims. Relying on the experiences of IRAS investigators and advanced analytics, IRAS has investigated or audited about 71,000 claims, or around 30% of the PIC Cash Payout claims made from Years of Assessment 2011 to 2015. One thousand five hundred of these claims investigated or audited required clawback. As for the amount of cash payout clawed back, for Years of Assessment 2011 to 2014, IRAS has clawed back $11 million, of which, $8 million has been recovered to date. Taking the Year of Assessment 2014 for illustration, out of the 10,000 claims investigated or audited, IRAS has clawed back $7 million worth of improper claims from 500 cases, of which $5 million have been recovered to date. The Government takes a serious stance on PIC abuse. IRAS will not hesitate to take stern enforcement actions against these businesses and any intermediaries helping them.”
“The remaining legislative changes are mostly technical in nature or relate to improvements in tax administration. 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)] Page: 112”
“Fifth, the tax deduction for donations has been increased from 250% to 300% in 2015, as part of the SG50 Jubilee celebrations. The 250% tax deduction for donations, which was to expire at the end of 2015, has also been extended for another three years till the end of 2018, to instil a culture of giving. This is provided for in Clause 22 of the Bill. Sir, MOF regularly reviews and refines the income tax regime. I shall now outline two other key changes arising from MOF's periodic review of the tax regime. The first change is that we will exempt from tax, up to $400,000 of the amount either deemed withdrawn under the Supplementary Retirement Scheme (SRS) upon death of the SRS member or withdrawn in full on the ground of terminal illness or disease. This will ensure parity on the amount of SRS savings that could have been withdrawn tax-free, had the amount been withdrawn over the full 10-year withdrawal period. The change, which takes effect from YA2016, ensures that the SRS member is not unduly disadvantaged in the event of death, terminal illness or disease, and is provided for in clauses 7, 38 and 39 of the Bill. The second amendment is to align the personal income tax rate for non-tax-resident individuals that is currently pegged to the highest resident marginal personal income tax rate, to the new top income tax rate for tax resident individuals, of 22%. This change will take effect from YA2017. Clause 26 provides for this change. At the same time, the withholding tax rate for non-resident individuals, which is currently pegged to the highest resident marginal personal income tax rate, will also be aligned to 22%. This change will take effect from 1 January 2016. Clauses 35, 36, 38 and 39 provide for this change.”
“Second, to provide greater support to businesses expanding overseas, the Double Tax Deduction for Internationalisation scheme has been enhanced to cover salaries incurred for Singaporeans posted to newly set up or acquired entities overseas. Third, a new tax incentive, the International Growth Scheme, has also been introduced to provide support to Singapore companies in their internationalisation efforts. This incentive will help Singapore companies transform their businesses and explore new areas of growth. It will also provide opportunities to help more Singaporeans gain international exposure for their work. Qualifying companies will enjoy a 10% concessionary tax rate on their incremental income from internationalisation activities, such as income derived from the export of goods and services or from global or regional headquarter (HQ)-related activities. This will encourage more Singapore companies to expand overseas, while anchoring their key business activities in Singapore. The enhancement to the Double Tax Deduction scheme and the introduction of the International Growth Scheme are provided for in clauses 18 and 34 of the Bill respectively. Fourth, to enhance progressivity and strengthen future revenues, the personal income tax rates for tax resident individuals will be increased. Specifically, the top marginal tax rate will be raised by two percentage points, from 20% to 22% for those with a chargeable income above $320,000. There will also be smaller adjustments to the marginal tax rates for chargeable income between $160,000 and $320,000. This change will take effect for income earned in 2016, in other Page: 111 words from YA 2017. Clause 50 provides for these changes.”
“Mr Deputy Speaker, I beg to move, "That the Bill be now read a Second time." The Income Tax (Amendment) Bill 2016, or the Bill in short, covers income tax changes announced in the 2015 Budget Statement, as well as other changes arising from the periodic review of our income tax regime. The draft Bill was released for public consultation exercise from 26 June to 24 July 2015. The Ministry of Finance (MOF) has evaluated all the feedback received and, where relevant, accepted suggestions. Sir, the tax changes announced in the 2015 Budget Statement have already been debated in this House. These changes are in line with ongoing efforts by the Committee on the Future Economy. In particular, there will be even greater support to help companies grow and scale through internationalisation. Let me highlight the key changes. First, to help spur mergers and acquisitions (M&As) so that companies, especially small and medium enterprises, can acquire scale, attract talent and compete effectively overseas, the M&A scheme will be extended for another five years. The tax allowance for acquisition costs will also be increased, from the current 5% to 25% of the value of acquisition, with the cap on allowance remaining at $5 million for each Year of Assessment (YA). The final shareholding interest in a company to qualify an acquisition for M&A benefits will be lowered. Subject to conditions, companies would be able to claim M&A benefits for acquisitions resulting in at least 20% shareholding in the target company, down from the current threshold of 50% shareholding. Clause 24 of the Bill provides for the changes.”
“The final amendment is a technical amendment to make it clear that zero-rating of GST applies to the supply of the goods which are for use as merchandise for retail sale on board an aircraft or ship. Clause 2 of the Bill gives effect to this change. 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)] Page: 109”
“Second, clause 2 rationalises the definition of aircraft to make it clear when zero-rating of specified supplies relating to aircraft will apply. Under the current legislation, supplies relating to an aircraft qualify for GST zero-rating if the aircraft is not used or not intended to be used for recreation or pleasure. If the aircraft is used or intended to be used for recreation or pleasure, then it must be wholly used, or intended to be wholly used, for international travel. The Bill removes the reference to whether the aircraft is used for recreation or pleasure. This amendment makes clear the policy intent of zero-rating supplies relating to international travel on the basis that they are not for domestic consumption. The revised definition will refer to all aircraft that is wholly used or intended to be wholly used for international travel, or any military aircraft. Clause 2 also extends the GST zero-rating to supplies relating to international flights. Currently, supplies such as fuel and aircraft handling services, are zero-rated, for GST purposes, only if they were supplied in relation to aircraft that is wholly used for international travel. The amendment will extend zero-rating of GST to specific supplies made in relation to any aircraft that is not wholly used or not intended to be wholly used for international travel, as long as the supplies can be specifically attributable to international flights. In essence, for such an aircraft, Page: 108 the relevant question will be whether the particular flight for which the specified supplies relate to is an international flight.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Goods and Services Tax (Amendment) Bill 2016, or the GST Bill in short, was released for public consultation in July last year. The Bill provides for three amendments, which arose from our ongoing review of the GST regime. The Ministry of Finance has evaluated the feedback received from the public consultation and, where appropriate, adopted the suggestions. Let me now explain the three amendments in turn. First, allowing the Comptroller of GST to impose Travel Restriction Orders on persons who have wrongly claimed tourist refunds. The Comptroller of GST currently already has the power to impose Travel Restriction Orders on persons who fail to pay GST owed to the Government. Once such an order is imposed, the relevant person owing the GST generally will not be allowed to leave Singapore unless he pays the GST owed. This amendment expands this power to cover cases of persons who make wrongful GST tourist refund claims. Under the GST Tourist Refund Scheme, only eligible tourists are allowed to claim a refund of the GST paid on goods purchased in and brought out of Singapore. To be eligible for tourist refunds, the individual must meet certain conditions. For example, he or she must not be a Singaporean Citizen or Permanent Resident, nor a crew member of an aircraft or ship, and is not employed in Singapore. Where a tourist refund is wrongly claimed by a person and not repaid to the Comptroller, clause 3 of the Bill now allows the Comptroller to impose Travel Restrictions on the person. This change will not affect the local tourism industry, as genuine tourists remain eligible to claim the GST refunds and will not be affected by the change.”
“At the end of the day, we have to carefully balance the needs of the accused person on the one hand and the public interest on the other hand, and that means to enable the Police to conduct complete and thorough investigations. Every country must find the right balance that suits its circumstances. Our system is well-established; it has proven effective over the years to help keep Singapore safe and secure and our crime rates low. On criminal discovery, there are provisions in place for criminal discovery and our Courts have set out what these obligations entail. In essence, the Ministry of Law remains committed to the promotion of access to justice and we will work with the other Ministries, including MHA, to ensure that we have the right kind of Page: 67 system that takes into account the rights of the individuals and yet balances that with the needs of society. Sir, with that, I support the Motion. Page: 68”
“If you take these three things that I have mentioned, you can see that, very slowly, what we have done is, we have been boosting and supporting legal aid, we have been boosting and supporting criminal legal aid, and at the same time, increasing access to justice by simplifying procedures and making it easier for individuals to have their disputes resolved. Moving on to another point that Mr Dennis Tan raised, which is access to counsel, the rights of an accused person to legal counsel are set out in Article 9(3) of our Constitution, which states "where a person is arrested, he shall be informed as soon as may be of the grounds of his arrest and shall be allowed to consult and be defended by a legal practitioner of his choice". Our Courts, in interpreting the Constitution, have determined that this right to legal counsel is to be exercised within a reasonable time after arrest and not immediately after arrest. What amounts to a reasonable time would, of course, depend on the circumstances of the case. I think it has been explained in this Parliament before that we need to strike a balance between the right of the accused person to consult his legal counsel and the public interest in ensuring that the Police is able to effectively investigate each case. Permitting an accused person to communicate with third parties before the Police can wrap up their investigations may compromise the investigations, especially so in cases where the Prosecution relies primarily on the testimony of witnesses and accused persons to lead them to the crime scenes, accomplices and other corroborative evidence.”
“The Law Society is the organisation that runs the Criminal Legal Aid Scheme. The lawyers deal with the Pro Bono Services office of the Law Society. But the funding now comes directly from the Ministry of Law, given to the Law Society. This increased funding enables increased legal aid. The increased funding covers the honoraria, operational costs and disbursements. Page: 66 We should have a look at the contrast before and after the provision of funding. In 2014, there were 1,780 applications for criminal legal aid, out of which only 431 were granted. In contrast, I note that Mr Thio Shen Yi, Senior Counsel, the President of the Law Society, mentioned at the Opening of the Legal Year in 2016 that last year, that is, in 2015, the CLAS lawyers helped 1,300 poor people accused of crime, an increase of 300% from 2014. The volunteer lawyers are paid an honorarium. It is not the same as market rate, but that honorarium goes some way towards defraying their legal fees. And the disbursements are covered. In effect, by providing the increased funding, my Ministry is supporting criminal legal aid. I should also say that there is another aspect of access to justice. I talked about legal aid and criminal legal aid. There is another category of cases where it may not actually be necessary to have a lawyer because of the nature of the claim, but you, nevertheless, want to have your dispute resolved. Two very good examples of this are the procedures under the Prevention from Harassment Act and the Community Dispute Resolution Act 2015. Those two Acts were specifically designed to allow individuals to make their claims in person, and not to have to incur legal costs and expenses.”
“So, someone could have a gross income of $30,000, for example, but if after deducting all the items that are permitted to be deducted, your disposable income is, let us say, $9,000, then you would qualify. What we did in 2013 was to increase the deductibles, so that more people would qualify. Prior to the amendments, the coverage of legal aid was about 17% of Singaporeans and PRs. With the expanded means test, it was envisaged that legal aid would cover about 25% of Singaporeans and PRs, which would translate to about 300,000 additional persons who could be potentially covered under the Act. This extended coverage does not even take into account the Legal Aid Director's discretion to depart from the general means test in certain circumstances. Just to reiterate the point I made earlier – although we have not increased the $10,000 cap, we have, nevertheless, increased and expanded the coverage of legal aid. I move on now to criminal legal aid. Mr Dennis Tan noted that more people had stepped up for pro bono work and called for others to step up as well. I should say here that we are completely in agreement that more volunteer lawyers and others who are in a position to do so, should step up for pro bono legal work. What I want to do is to highlight what the Government has done in the last couple of years and to indicate that it is also our mission to encourage pro bono work. In May 2015, the Minister for Law Mr K Shanmugam launched the Enhanced Criminal Legal Aid Scheme (CLAS). Under the enhanced scheme, what the Government now does is that it provides the bulk of funding, comprising $800,000 for start-up costs and an annual commitment of up to $3.5 million to cover operational costs, honoraria and disbursements. This is given to the Law Society.”
“Mr Deputy Speaker, thank you for allowing me to join the debate. In his speech earlier, Mr Dennis Tan raised a few points which really touched upon the work of the Ministry of Law and I thought it might be helpful if I responded to them. Page: 65 His two main points under the Legal Aid and the Criminal Legal Aid Scheme can be considered under the broad rubric of access to justice. Mr Dennis Tan had called for a review of the $10,000 cap on the means test for legal aid. I thought that I should share what has been done because, sometimes, the perception is that that parameter of the $10,000 cap is too strict. In fact, what we have done over the last couple of years is to expand the coverage, even though the amount of $10,000 has not itself increased. In 2013, we amended the Legal Aid and Advice Act to take into account the current cost of living. The net effect of the amendments was to expand the coverage of legal aid to include more vulnerable applicants. To qualify for legal aid, the individual must have an annual disposable income of $10,000 or below, and disposable capital of $10,000 or below. So, it is a double-barrelled test, meaning you have to meet both the income test and the capital test. The thing about the income test is that most people have the impression that when we say $10,000 income, that means your gross income. They think that so long as you earn more than $10,000 per annum, that disqualifies you. What we actually look at is disposable income. So, you look at the gross income, minus off all the things which you can deduct, like the cost-of-living expenses and so on, and you see what remains. What remains is the disposable income, and, if that is $10,000 or less, then you would qualify.”
“(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)] Page: 52”
“I believe we are talking about two separate issues. One, when I talked about setting the Target Contribution, when we look at the Target Contribution, you are really looking at the amounts that the debtor should repay. In calculating that, what is looked is at is the debtor's reasonable income or what he is likely to receive. So, the Target Contribution is set without reference to the private trustee's fees. I believe what Ms Lim is asking about is where do the private trustees' fees get recovered from. She is right that, ordinarily, they will come from the bankrupt's estate. So, if there is anything left over, obviously, it would have to go to the private trustee first. But in doing that, for small amounts, obviously, if the private trustee's fees are too large, then it is not going to be recoverable and that operates as a disincentive for creditors to go after bankrupts for smaller amounts. My answer was in the context of the question of what happens when you have a relatively smaller amount and whether the debtor will bear a heavy burden in fees. So, you can see that the way it is designed is intended to make the creditors sit down and think, "Okay. This is how much the debt is. This is how much the debtor likely has in his estate. This is the amount of fees that the private trustees will have to be paid. If I appoint lawyers, there will be more fees as well. At the end of the day, is there anything left for me to recover?" In that sense, it encourages, firstly, the creditor to be prudent in lending; secondly, to make a very careful decision before deciding to go after somebody in Page: 51 bankruptcy. [(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.”
“I would like to thank the Members for their support of the Bill, which will put bankruptcy in Singapore on a new and more progressive framework. Mdm Speaker, I beg to move.”
“Ms Sylvia Lim queried how the Government arrived at the timeframes for differentiated discharge. The rationale for the timeframes is as follows. Currently, the OA can issue a certificate of discharge only after three years. We have retained this. The seven-year period was introduced because reviews show that further realisations are minimal after seven years for most bankruptcies; and in recent years, most bankrupts were discharged about eight years after being made bankrupt. So, between three years and seven years, to strike a balance and to incentivise bankrupts to keep up with their monthly contributions, we decided that they should be eligible to be discharged in five years. That is approximately two months to calculate the Target Contribution, 52 monthly contributions and six months to process the discharge. That comes up to 60 months – or five years. Ms Lim also asked about the number of repeat bankrupts and why they are subject to higher Target Contributions. Repeat bankrupts form under 4% of all bankrupts currently. So, it is really an exercise in balancing the interests of the people who have lent money and the interests of the bankrupt. If it is too easy to get out of bankruptcy, then there will be a moral hazard – and society as a whole loses. The loss will also be on small creditors who will be less Page: 50 able to do the risk analysis, compared with larger creditors. Credit flow as a whole will be impacted. If a person who has been a bankrupt gets discharged and then becomes a bankrupt again, it is fair that he be held to stricter standards. The higher Target Contribution emphasises this. Nevertheless, the framework provides them with a chance to make a fresh start. I believe I have addressed Members' queries.”
“Bankrupts who do not pay their Target Contribution in full will have a permanent record of their bankruptcy, which will affect their ability to obtain credit in future. Mr Hri Kumar suggested giving the OA a discretion, either for a bankrupt to be discharged without his name appearing on the public register, or to remove a person's name Page: 49 from the register thereafter even though he has not paid his debts in full. The provisions give the OA wide discretion on what may be available for inspection by the public. The Target Contribution is determined without reference to the debts owed by the bankrupt, but according to what reasonably their income is. Therefore, bankrupts who fail to pay the Target Contribution ought to remain on the register permanently. And the OA will exercise its discretion while taking this into consideration. Mr Hri Kumar queried why the OA needs to apply to Court to vary the Target Contribution after the initial determination. The Target Contribution is the key factor that affects a bankrupt's eligibility to be discharged. Once it is set, it becomes the reference point by which both the debtor and the creditor base their decisions and take their actions. Parties would have acted on the basis of certain expectations. If it can be changed too easily, it could be disruptive and could operate unfairly on either one of the interested parties, depending on the variation. For that reason, if there are to be any changes, it should be done by the Court, giving interested parties an opportunity to be heard. Since the scheme is new, we would prefer at this stage not to let the Target Contribution to be changed too easily. After the framework has been in place for a sufficient time for us to assess how it is working, we can always review it.”
“The way it works in practice is that private trustees are likely to have provided estimates or ballpark figures of their fees to the bank beforehand. The private trustees will also usually not agree to act unless the creditors agree to indemnify them for their fees and expenses in the event that the bankrupt's estate is insufficient to cover their costs. Taking all of these into account, the net effect of the amendments is that the institutional creditors will now have to calculate before deciding whether, having regard to the total debt, it is cost-effective to proceed with the bankruptcy at all. There is also a check on the private trustee's fees – they have to be approved by the creditors or the Court. And creditors have strong interests to approve reasonable fees because, ultimately, it affects their returns. Mr Zainal Sapari queried if the amendments would increase the costs of borrowing. As to this, I would say that the amendments will encourage institutional creditors to be more prudent in granting credit and recovering unpaid debts. This may reduce the rate of default, which, in turn, will help lower the overall costs of borrowing. The alternative is for taxpayers to continue to subsidise the costs of the OA administering these bankruptcies, which is not desirable. Mr Zainal also queried whether the fixed timelines for discharge will increase moral hazard associated with bankruptcy. We do not think it will. In fact, the opposite is intended. Bankrupts will have strong incentives to cooperate with the trustee as the trustees retain the discretion to discharge a bankrupt. And even if the trustee decides to discharge the bankrupt, the creditors may still apply to the Court to object.”
“They may write to the OA also, who will help liaise with the private trustee. Ms Lim asked how the appointment of private trustees may affect the administration of bankruptcies. As mentioned in my speech yesterday, the OA acts as trustee in over 99% of bankruptcies. Out of the total number of bankruptcies, it is estimated that about 60% are brought by institutional creditors. With the requirement for institutional creditors to nominate private trustees, the number of cases handled by the OA would be reduced. Basically, the approach is that institutional creditors should bear the cost of administration, which will allow the OA to focus more on the smaller businesses and lenders who have lent to someone who goes into bankruptcy. With regard to the cost of private trustees, the Target Contribution is calculated without reference to the private trustee's fees. The fees, therefore, will not affect one's eligibility to be discharged. Ms Lim and Mr Zainal asked whether the appointment of a private trustee would add to the bankrupt's costs and Ms Lim raised the example of a situation where the debt is, let us say, $20,000, and, in that case, would the debtor have to bear a heavy cost burden, Page: 48 especially if lawyers or accountants are appointed as private trustees. I think here, again, the point is that we must first look at the creditors. If the creditor is an institution, then it is likely to have calculated its risks, including the costs of bankruptcy. The basic question is whether the ordinary taxpayer should pay for the bankruptcy administration when the creditor is a big bank, or whether we should ask the bank to pay for the costs. Our view is that the bank should pay.”
“However, bankruptcy is not the only means of recovery. We do already have in place other means for recovery, which is through the Court process. Disputes on lower value claims can be resolved or pursued at the Small Claims Tribunal or the Magistrate's Courts using the new simplified civil process. Organisations, such as Credit Counselling Singapore, also assist debtors to negotiate debt repayment plans with Page: 47 financial institutions. Mr Gan was concerned that the increased debt threshold could encourage creditors to lend more or impose more costs. It is unlikely that creditors will lend more simply because of the raised threshold. In deciding whether and how much to lend, the primary consideration for creditors is the debtor's ability to repay the debt. That assessment would have to made independent of the mode of recovery, whether it is bankruptcy or some other means. Mr Zainal Sapari, Mr Hri Kumar and Ms Sylvia Lim had queried on the checks and balances in place to ensure that private trustees carry out their jobs properly and do not overcharge. There are a number of checks and balances in respect of private trustees in the Bill. Private trustees are required to put up security, which can be forfeited by the OA if the private trustee does not fulfil his duties and obligations. Private trustees are supervised by the OA and are required to submit reports to the OA at specified times. Bankrupts can provide feedback or make complaints at any time – they need not wait until the fifth or seventh year. As for Members' letters, if it relates to offences or the conduct of a private trustee, they should be addressed to the OA. But if it relates to the administration of the bankruptcy estate, they can write to the private trustee directly.”
“Mdm Speaker, I thank the Members for speaking in support of the Bill. Let me now respond to the queries raised by Members. Mr Zainal Sapari suggested debt advisory services to educate Singaporeans on the risks of obtaining unnecessary credit. We do have in place educational programmes. As Mr Zainal noted, the MoneySENSE programme provides the public with education on financial management. MOE also has programmes to educate our students on the need to be prudent. MinLaw will, nevertheless, pass on Mr Zainal's feedback to the relevant agencies for consideration as to what else can be done by way of public education. At the end of the day though, it really boils down to one principle – which is, not to spend or borrow more than you can afford to pay or repay. In cases of genuine need, rather than seeking credit which one cannot afford to service or to repay, I would urge those in that situation to seek financial assistance or financial counselling, which is available, before incurring the debt. Mr Thomas Chua spoke about the need to promote entrepreneurship and be less risk-averse. We are mindful of this. But we are also mindful of the fact that some bankruptcies arise from business failures. So, the issue is how to encourage financial prudence without stifling entrepreneurship. There needs to be a balance between taking risks and being responsible. The amendments in this Bill are intended to strike the right balance between these two objectives. Mr Gan Thiam Poh suggested having an alternative process to deal with those who default on debts that do not exceed the new threshold of $15,000. We have a threshold for bankruptcy because it is costly and it impacts the debtors and creditors and, hence, it should not be undertaken lightly.”
“Any creditor may apply to the court to direct the OA to incur a particular expense, but only on the condition that the creditor indemnifies the OA and provides reasonable security to secure the indemnity. Clause 49 provides that the offence of fraudulent disposal of property will be committed only if the bankrupt had the intention to defraud his creditors or to deprive his creditors of the property in the event of a bankruptcy order. Clause 51 introduces a new offence, which is committed when a bankrupt provides a guarantee, indemnity or security of at least $1,000 without disclosing that he is an undischarged bankrupt at that time. The Bill contains a comprehensive suite of changes aimed at improving the bankruptcy regime. The changes are targeted at ensuring that public resources are better utilised, while providing greater certainty as to when bankrupts are eligible to be discharged and ensuring that the Act remains up-to-date. The Bill strikes a balance between the need to hold the bankrupt accountable, while ensuring that bankrupts have the opportunity to make a fresh start in their financial affairs after a reasonable period of time. Mr Deputy Speaker, I beg to move. [(proc text) Question proposed. (proc text)] 6.23 pm”
“First, bankrupts need to file their statement of affairs and any supplementary information on time. This is because the timeline for reckoning a bankrupt's eligibility to be discharged does not start until these documents are filed. The later a bankrupt files these documents, the later the timeline will start to run. Second, the timeline will be suspended if the bankrupt travels or remains overseas without the trustee's permission. Bankrupts should not be allowed to benefit under this new framework if they fail to comply with their obligations under the law. This framework introduces a new rehabilitative regime which gives bankrupts clear timeframes and goals to meet in order to become eligible for discharge. Cooperative bankrupts will be incentivised to make sufficient contributions to achieve an earlier discharge but, at the same time, the framework has sufficient safeguards, in the form of permanent bankruptcy records and the OA's and the Courts' discretion to extend the bankruptcy, to prevent moral hazard. I will now touch briefly on some of the miscellaneous amendments in the Bill. Page: 109 Clause 27 requires a bankrupt's creditor to file a proof of debt within four months from the date that the administration of the differentiated discharge framework begins, unless the time period is extended by the Court, or by the trustee in certain circumstances. This will provide bankrupts' creditors with greater certainty as to the value of their debts and also will facilitate the smooth administration of the bankruptcy. Clause 37 provides that the OA will not be required to incur further expenses unless there is sufficient available property in the bankrupt's estate. This ensures that the bankrupt's estate will not be unnecessarily depleted.”
“Thank you. As Members will see from the infographic, there are three relevant time periods. For a first-time bankrupt: (a) he is eligible to be discharged after three years in bankruptcy if he has paid the target contribution in full. However, a discharge will not be granted if sufficient creditors object to it; (b) he is eligible to be discharged after five years in bankruptcy if he has paid his target contribution in full. Objecting creditors will need to obtain a court order to prevent the bankrupt from being discharged; Page: 108 (c) if a bankrupt has not paid the target contribution in full, he will be eligible for discharge after seven years. Likewise, a Court order must be obtained to prevent a bankrupt from being discharged. Bankrupts may also be discharged at the three- or five-year mark even if they have not paid the target contribution in full, if there are extenuating circumstances, such as a debilitating illness. For a repeat bankrupt, all the timelines I mentioned will be extended by two years, as compared to a first-time bankrupt. To address any concerns that bankrupts who have not paid their target contribution in full will be eligible for discharge, the OA will keep a public register containing a list of undischarged and discharged bankrupts. Only those who pay their target contributions in full will have their records expunged from the register five years from the date of discharge. For those who do not, their names will remain on the register permanently. This will also allow future creditors to make informed decisions on whether to extend credit. There are two further important points about the differentiated discharge framework that I need to highlight.”
“There is no change to this process. Second, by the OA's certificate. However, the OA's certificate can currently only be issued three years after the bankruptcy order was made, and if the debts proved in bankruptcy do not exceed $500,000. This monetary cap fetters the OA's ability to discharge bankrupts in deserving cases. Clause 42 of the Bill removes this condition and introduces a differentiated discharge framework that will provide all bankrupts with greater certainty as to when they are eligible to be discharged. Let me explain the key features of this new framework. The new framework provides bankrupts with clear goals and timelines to meet, in order to become eligible for a discharge. Whether a bankrupt is eligible for discharge depends on whether he has paid the target contribution, which refers to the total amount contributed to the estate from the bankrupt's income or from third parties. The trustee will calculate the target contribution at the early stages of bankruptcy so that the bankrupt knows upfront the targets that he will have to meet in order to be eligible for discharge. The framework will allow bankrupts who pay their target contribution expeditiously to be eligible for discharge earlier. With your permission, Mr Deputy Speaker, may I ask the Clerks to distribute copies of the infographic explaining the differentiated discharge framework to the Members?”
“In the converse situation, where less than half of the value of the bankrupt's debts is owed to institutional creditors, the OA will administer the bankruptcy in full until its conclusion. Presently, it is common for the OA to administer bankruptcies where the value of the estate is insufficient to cover the OA's costs which results in the taxpayers bearing such costs where there is little prospect of recovery. These amendments will encourage institutional creditors, who have sufficient resources and expertise to make credit assessments, to carefully consider whether to apply for a bankruptcy order. They will also encourage institutional creditors to be more prudent in extending credit and allow the OA's resources to be better utilised elsewhere The Bill also contains some consequential amendments relating to the appointment of private trustees. First, a private trustee may resign only if he nominates another private trustee who has consented to act, or if the OA consents in writing to the appointment. This ensures that a private trustee will see through the administration of the bankruptcy, unless the OA consents to take over. Second, a private trustee has to provide security to the OA, to ensure that he performs his duties and duly observes all the requirements of the Act. The Bill introduces a new provision allowing the OA to forfeit the security furnished where the private trustee fails to comply with statutory timelines. I will now explain the fourth set of key amendments, which introduces the differentiated discharge framework. This framework addresses one of the key concerns that bankrupts have, namely, when they can be discharged from bankruptcy. Page: 107 Presently, there are two ways for a person to be discharged from bankruptcy. First, by an order of court.”
“An "institutional creditor" is defined as a bank or finance company that is licensed by the Monetary Authority of Singapore (MAS) or a business undertaking with more than $100 million in annual sales turnover and more than 200 employees. So, take, for example, where a debtor has incurred debts from two sources, namely, a bank and a personal loan from a friend. If the debtor is unable to pay his debts, he may be made bankrupt in one of three ways. First, if the bank makes the bankruptcy application. In this scenario, the bank would have to nominate a private trustee before the Court will grant the bankruptcy order. Second, if the personal creditor makes the bankruptcy application. In such a case, there is no need to nominate a private trustee. Third, if the debtor files the bankruptcy application himself. In this case, he will not need to nominate a private trustee either. Where no private trustee is appointed by the Court, the OA will administer the bankruptcy. However, in such a case, clause 37 provides that where at least half of the value of the bankrupt's debts is owed to institutional creditors or their subsidiaries, the OA may issue a written notice to inform all the creditors to consider applying for the appointment of a private trustee in place of the OA. Page: 106 Any creditor can apply to appoint a private trustee. If a creditor chooses to do so, the costs and expenses of appointing the private trustee will affect the eventual returns on the debts. But if the creditors choose not to do so, the OA is not required to incur further expenses to administer the bankruptcy, other than that related to the payments made by the bankrupt under the new differentiated discharge framework.”
“The amendments will, therefore, allow the creditor to take steps to preserve assets available for distribution to the creditors at an earlier stage, although the bankruptcy order will only be made upon the expiry of the 21-day period. This is to ensure that the debtor will still have the full 21-day period to settle or set aside the statutory demand. The third set of amendments requires or incentivises institutional creditors to appoint private trustees to administer some bankruptcies. Currently, it is not mandatory to appoint a private trustee to act as the trustee in bankruptcy. As a result, private trustees are seldom appointed and the OA acts as the trustee in over 99% of bankruptcies. This includes those cases where the value of the bankrupt's estate is insufficient to cover the OA's costs. At present, creditors have no incentive to consider the costs of administering a bankruptcy before applying to make a debtor bankrupt. Page: 105 This is unsatisfactory, because the state bears the cost of resolving debts entered into between private parties and, often, for the benefit of private parties. As such, the amendments seek to ensure better utilisation of public resources. Clause 6 provides that a creditor must apply for a private trustee to be appointed at the time of making a bankruptcy application, under two circumstances. First, where the creditor making the application is an institutional creditor or its subsidiary. Second, where the debt, when incurred, was payable to an institutional creditor or its subsidiary. So, for example, where the debt was originally incurred to a bank, the bank assigns the debt to someone who is not an institutional creditor and the latter institutes bankruptcy proceedings.”
“Alternatively, the bankruptcy order may be discharged by the court or by the OA's certificate, thus releasing the debtor from all the debts provable in the bankruptcy, apart from debts due to the Government. Page: 104 With this general framework in mind, let me now explain the key amendments in the Bill. The first key amendment relates to raising the debt threshold before a bankruptcy application may be made in court. Presently, a bankruptcy application can only be made if the debtor owes at least $10,000 in debts. This threshold was introduced in 1999. It is timely to review the threshold given the rate of inflation over the past years. The Bill, therefore, raises the debt threshold to $15,000. The second key amendment is to introduce an expedited bankruptcy procedure. Earlier, I had explained that a debtor is presumed to be unable to pay his debts if he does not respond to a statutory demand within 21 days. Presently, a creditor must wait until the end of the 21-day period before he can make a bankruptcy application. Clauses 14 and 15 of the Bill allow a creditor to make an expedited bankruptcy application after the statutory demand has been served, but before the 21-day period has expired. However, the creditor must show a serious possibility that the debtor's property, or the value of all or any of the debtor's property, will be significantly diminished before the 21-day period ends. The amendments are being introduced because, currently, a creditor can only appoint an interim receiver or prevent the bankrupt's property from being transferred after a bankruptcy application has been filed, which can only be done after the 21-day period has expired. There is a risk that the debtor could dissipate his assets during this 21-day period.”
“The Bankruptcy Act provides that a debtor is presumed to be unable to pay his debts if, having been served with a statutory demand, he does not settle it or set it aside, within 21 days. Even if a debtor meets the requirements for being made a bankrupt, he may be eligible for the Debt Repayment Scheme (DRS). The DRS, which was introduced in 2009, allows debtors to avoid bankruptcy if they meet certain eligibility criteria. It also allows creditors to receive no less than what they would have, had the debtor been made a bankrupt. The DRS is being reviewed, but no changes are presently being made to it. If a bankruptcy order is made, the bankrupt's property will vest in a trustee in bankruptcy, or the "trustee". The trustee may either be the Official Assignee (OA) or a private trustee appointed by the Court. The trustee performs the following functions in administering the bankruptcy. First, the trustee will investigate the bankrupt's financial affairs to ascertain what is available for distribution. Second, the trustee will adjudicate the proofs of debt filed by creditors, to determine which debts are valid and how much is owed to each creditor. Third, the trustee will realise the property available for repayment, including any property acquired or contributed by the bankrupt, after the bankruptcy order is made. Fourth, if there are sufficient funds, the trustee will declare a dividend in respect of the debts proved. A bankruptcy terminates when the bankruptcy order is discharged or annulled. A bankruptcy order may be annulled by the court or by a certificate issued by the OA, if, for example, all the relevant debts and expenses have been fully repaid.”
“Mr Deputy Speaker, I beg to move, "That the Bill be now read a Second Time". Bankruptcy refers to the legal process whereby the debts that a person is unable to pay are resolved. The bankruptcy regime serves a number of objectives. First, it provides an orderly regime for the resolution of unpaid debts. Second, in so doing, the regime balances the interests of debtors, creditors and the wider society in the following ways. It ensures that bankrupts are held accountable for their debts, but allows them to make a fresh start in their financial matters after a reasonable period of time; and it provides incentives for creditors not to over-extend credit and for debtors not to borrow more than they can repay. The Bankruptcy (Amendment) Bill furthers these objectives while ensuring that public resources are utilised more efficiently. The Bill introduces four key sets of amendments. First, it raises the debt threshold for obtaining a bankruptcy order. Second, it allows creditors to make an expedited bankruptcy application. Third, it requires or incentivises creditors to appoint private trustees in certain circumstances. Fourth, it introduces a "differentiated discharge" regime to allow bankrupts to be discharged within clear timeframes. The Bill also contains a number of miscellaneous amendments. Page: 103 As bankruptcy procedures are fairly technical, let me first begin by explaining how the process works under the current law. A debtor, or his creditors, may apply for a bankruptcy order. In either case, it must be shown that the debtor is unable to pay his debts as they fall due and that such debts amount to at least $10,000.”
“Mdm Speaker, the Minister for Education will be making a Ministerial Statement following Question Time. May we have your permission to address the issues that Members have raised in Question Nos 4 to 6 during his Ministerial Statement?”
“For example, NTU has a Healthy Lifestyle Unit that organises health education and healthy lifestyle activities. At the polytechnics, RP's Health and Fitness module equips students with strategies to maintain a healthy lifestyle. These efforts lay the foundation for our students to engage in sports and lead healthy lives throughout their adult years. 3.00 pm”
“The NUS Sports Club, for example, organises "SunNUS", a popular annual beach sports event that brings together students, staff, alumni and the public for a day of sports on Sentosa's beaches. The barrier to entry is low and caters to those looking for recreational sports. Those seeking more competitive sports can also participate in inter-faculty games at the PSEIs or the annual inter-institution games, including the Singapore Universities Games (SUNiG), the Inter-Varsity Polytechnic Games (IVP) as well as the Polytechnic-Institute of Technical Education (POL-ITE) Games. These programmes and activities are often free, if not heavily subsidised, to ensure that the cost of sports participation is kept as low as possible. Students also have access to a wide range of facilities at the PSEIs to pursue sports at their own time and in line with their own interests. Not all within the 20-24 age group are enrolled in our IHLs. Many are already in the workplace and Minister Lawrence Wong, in January this year, outlined the efforts that MCCY is making to encourage sports participation among this group, as well as among the public. These efforts by our IHLs and MCCY are contributing to reversing the trend of declining sports participation among those in this age group. The Member will be pleased to hear that dipstick figures taken between 2012 and 2014 have reflected an increase in the sports participation rates for this age group to about 70%. While this trend is encouraging, sports participation should be for life and should not stop once students leave our PSEIs. To encourage active and healthy living beyond students' tertiary education years, our PSEIs also conduct sports and health-related education programmes.”
“Madam, the Ministry of Education (MOE) adopts a holistic approach towards physical and sports education throughout the education system. At the pre-tertiary level, Physical Education (PE) lessons are designed to help students develop strong fundamental motor skills, expose them to a wide variety of sports or physical activities and equip them with knowledge to design their own fitness programme. With access to sports facilities and recreational games, students have the opportunity to enjoy and live a healthy lifestyle, building a foundation to pursue these activities beyond their years in school. At the tertiary level, our post-secondary education institutions (PSEIs) continue to provide an environment which supports sports participation. At most of the polytechnics and the Institute of Technical Education (ITE) colleges, students participate in compulsory sports and wellness modules. The Sports for Life programme at Singapore Polytechnic, for example, allows first-year students to participate in a sport of their choice, with options ranging from common sports, such as swimming and tennis, to more novel ones, such as laser tag and martial arts. Beyond the first year, students can continue to take elective modules to further Page: 43 their sports journey. The larger universities, NUS and NTU, also offer sports modules – some of which are credit-bearing – to their students. Outside of the formal curriculum, mass participation events and competitive inter- and intra-institution games build a sporting culture at the PSEIs and provide convenient opportunities for students to be involved in sports, regardless of their level of proficiency.”
“As the Member has pointed out, Yale-NUS College is not an AU. It is still at an early inception stage. So, we will monitor it and track and see how it develops.”
“Mdm Speaker, I think we are certainly in agreement that we do want to have a very strong core of Singaporean academic talent. That is not just because of the influence that they will have on young minds, but also because it is important for our own research and development and our own academic pipeline, that we should have Singaporeans who are well-versed in the different areas of academia. The real question, I think, is how we should achieve that.”
“We intend to offer over 1,500 scholarships at both the undergraduate and postgraduate levels over the next 15 years. Page: 32 Additionally, our AUs also actively try to reach out and recruit Singaporean academics based overseas.”
“It is important that our Autonomous Universities (AUs) recruit academic staff based on merit, to ensure that they hire the best talent able to deliver high-quality education and conduct research that will benefit our students and Singapore. All eligible Singaporeans are considered carefully and processes are in place to ensure that hiring is non-discriminatory. Applications for academic positions are put through multiple approval layers involving selection committees, Academic Heads of Department and Faculty Deans before final approval by top management. Senior appointments must be approved by the Presidents or Boards of Trustees. The Government and our AUs are keenly aware of the need to develop local talent. This is why the Minister recently launched the new Singapore Academic and Research Talent Scheme to encourage more young Singaporeans to pursue an academic career. At the undergraduate level, an MOE-AU undergraduate scholarship has been launched for those who have keen interest and strong aptitude for a career in academia. Under this scholarship, recipients will be paired with NUS, NTU or SMU and benefit from academic mentorship throughout and beyond his undergraduate studies. The student will then be expected to apply for a postgraduate scholarship from our AUs, for PhD studies and post-doctoral stints. These postgraduate scholarships will be co-funded 50-50 by MOE and the AUs. This comprehensive developmental programme is only available to Singaporeans and is intended to prepare each individual for an academic career. Under the Singapore Academic and Research Talent Scheme, we will grow the number of existing postgraduate scholarships for Singaporeans who are interested to do research and teach at our AUs.”
“Madam, Edusave was introduced to support the holistic development of students in MOE-funded schools. We have recently extended Edusave contributions to all Singaporeans aged seven to 16, even if they are not in an MOE-funded school, so that they, too, can receive support for Page: 27 secular enrichment activities. Edusave Awards recognise secular academic and non-academic achievements in the context of MOE-funded schools. It would not be appropriate to extend the Edusave Awards to students in private schools, including those in the six full-time madrasahs that offer a total curriculum that comprises both compulsory religious and secular subjects. Madrasah students do receive support. MUIS provides assistance for madrasah students from low-income families. In particular, MUIS provides the PROMAS Performance Award to needy madrasah students who perform well in both their religious and secular subjects and exhibit exemplary character.”
“His journey has ended. He is now at rest. Rest in peace, Mr Lee. And know that because of your legacy, Singapore and the Singapore spirit will live on and prosper. [Applause.]”
“But these alone would not have been enough to generate this wellspring of emotion. The real secret of Mr Lee Kuan Yew's enduring bond with Singaporeans is that we all fundamentally understood that that vision, the drive and the intellect were all powered by one thing – he cared. He cared deeply for Singaporeans and Singapore, and all his actions were driven by a desire to make things better for them. Singapore was his life's work. And people know this. So, just as he was there for us on that amazing journey from third world to first, Singaporeans have been here for him in the last days of his life, and now, for his final journey. One well-wisher at Tanjong Pagar wrote: "Dear Mr Lee, We cannot thank you enough for all that you've done for us and the land we call home, let alone the sacrifices you made behind the scenes that all of us will perhaps only learn of in the long future or maybe even never. And in this simple card I know that I will fail to express my heartfelt gratitude and emotions to you as well. I can't quite put into words the feelings I hold." Sometimes, the lack of words says it all. History judges men by their legacies. And what is Mr Lee's legacy? It is not in buildings or monuments. His is not a legacy of brick or stone. His is a legacy of life and breath: a place Page: 36 where you can belong, irrespective of the colour of your skin, your religion or your language; a place where you can be safe; a place of opportunity; a place we call home. His legacy is: a people united; a people with heart; a nation strong and free. This is who we are today because of this man, his vision and his leadership and, above all, his unquenchable, unconquerable spirit from which we took heart and which now defines us as a people and a nation – the spirit of Singapore.”
“The things we had to give up were things like lack of security, lack of housing. We were called to make sacrifices so that we could put these things together. The other kind of sacrifice we were asked to make was to set aside divisions and animosity in the interest of national unity. And who made the biggest sacrifice of all? In an interview, Mr Lee Kuan Yew was once asked, at the end of the day, what he had achieved. His response was: "At the end of the day, what have I got? A successful Singapore. What have I given up? My life." Page: 35 The biggest sacrifice of all was made by Mr Lee Kuan Yew. Because of that, because he was a strong leader and led a strong party, everyone benefited. And Singapore is what it is today. If you compare us with any other newly independent country, our people have more opportunities in Singapore. And let us see the response of Singaporeans. In the last week, we saw a tremendous outpouring of love for Mr Lee. Thousands – young, old, rich, poor, from all races, religions and all walks of life – came. First, to wish him well, and then, to say goodbye. I have been at Tanjong Pagar Community Centre every day, the last five days. You have also seen the queues that have snaked around Parliament House. You have to be there among the people to understand. People were in tears. If you ask them, if you speak to them, all of them, to the last person, will tell you this one thing. They will say that the reason they are there, either at the CC or standing in queue, is because this is the one thing, the last thing they can do, to say "Thank You" and to show respect. What is the essence of the man that inspires such an overwhelming reaction? Some might say it was his vision, his drive, his intellect.”
“Mdm Speaker, Mr Lee first entered this Parliament, or its earlier iteration the Legislatve Assembly, in 1955 as the Member for Tanjong Pagar, a seat he held for 60 years, an unsurpassed record. I once asked him why he chose Tanjong Pagar. He said it was because the people there were very poor, the conditions bad and the place much in need of improvement. I did not fully appreciate what he meant until I read his memoirs. He described the Tanjong Pagar of 1955 as docklands crowded with dock workers, trishaw riders, shopkeepers and opium dens. Workers' quarters were wooden dwellings with no sewerage or drainage. He recalled scenes of filth and dilapidation among broken-down shophouses in or around Narcis Street, where Tanjong Pagar Plaza stands today. Drains clogged with rubbish stank with decaying food. He vowed to change this. He promised Singaporeans a better life. They believed him and voted him in. This allowed him to enter Parliament in 1955 and eventually go on to become our First Prime Minister. Tanjong Pagar and Singapore today are a far cry from what he described. Both have been completely transformed through his vision and his efforts. He kept his promise to the people of Singapore and the bond was cemented. Let me say something about sacrifices. What we were called upon to do was to sacrifice the things which would have held us back. It was not people who were sacrificed, but the things which would have made us a lesser people, a lesser country, than we are today. He called upon us to make sacrifices in accordance with some very basic principles – humanity, integrity, thrift, welfare of the people. The things we had to give up were laziness, corruption, division, hatred of other races.”
“What he can do is to ask the Government to acquire it, and the purpose of making the notice irrevocable is so that that person thinks very carefully and asks himself, "Is this the right thing to do in this scenario?" Mr Yee's other concern was about the compensation amount, and what happens if the compensation amount is not to the person's satisfaction. That part is addressed by the Bill because once you ask for it to be acquired, and if it is found that it is substantially impaired and the state acquires it, then the whole framework and regime under the Land Acquisition Act for determining compensation will kick in. The Collector will give the assessment and if the person is not happy, the person can appeal to the Appeals Board. There is an established set of principles which will allow the Appeals Board to determine what the market value of the land to be acquired is. Page: 128”
“But business loss can arise due to a whole host of factors – loss of goodwill, economic downturn, business management strategies and so on. As Mr Yee noted, this had been explained before in this House by Prof Jayakumar, who explained that it is not the policy or intention to compensate for business loss or loss of goodwill because loss of goodwill of a business is usually due to a combination of many factors. It could be due to a downturn of the economy, business management strategies and not solely due to the relocation caused by the acquisition. So, it is a very difficult set of factors to assess business loss and loss of goodwill, and that policy has not changed. But, nevertheless, where the business affected faces significant hardship, we will of course look to see how we can assist. Mr Yee had raised one other question with respect to substantial impairment. The amendment contemplates that if there is substantial impairment to the land, the owner can ask for his remaining land, together with the land that is temporarily occupied, to be acquired but Mr Yee asked whether the giving of notice to ask for the acquisition should be irrevocable. The reason why the Bill is framed in this way is because, if not, then the person would ask you to acquire and then once the compensation amount is given, he could say, "Oh, I don't like it. Please, I don't want you to acquire it now" and it would allow somebody to play fast and loose which is not the intention behind the Bill. The intention behind the Bill is to assist somebody who, as a result of the temporary occupation, has found that the whole of his land is substantially impaired and he cannot use it for more than a year and it is really for all intents and purposes very difficult for him to continue with his land.”
“For example, if the use of the land is subject to certain qualifications and if that, for any reason, precludes taking into account that use for compulsory acquisition, then you have to go in accordance with the terms and conditions of the permission for the use of the land. In short, just to remember, the principles of compensation for land acquisition is in one part of the Act; the principles for compensation for temporary occupation is another part. They are not exactly the same regime. So, we must not mix up the two. Mr Lim had also asked about ex-gratia payment and the basis for determining such amounts and whether they could be included in the Act. Ex-gratia payments by definition are made outside of the statutory framework and the reason for having the ex-gratia payments was to enable the state to have the flexibility and the discretion to alleviate financial hardship. We have used this on occasions, for example, with respect to the acquisition of certain units at Pearl's Centre. If the suggestion is simply to include a line to say that ex-gratia payment can be made, then today as ex-gratia payments can already be made, such an amendment would not really add to the framework. But if the suggestion is to start listing out the bases and factors for the exercise of the discretion to grant ex-gratia payment, then this would necessarily constrain the exercise of that discretion which would go against the purpose of such payments. One of the reasons for the policy of ex-gratia payments is so that you can be flexible enough to alleviate the hardship. Page: 127 Mr Yee Jenn Jong raised the question of business loss. The Bill provides for relocation expenses and, in some cases, re-configuration costs where the need to re-configure is the result of acquisition.”