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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“The categories are under the first column of the Schedule, and the bases are in the second column of the Schedule. But the bases for assessing compensation – that means the second column of the Schedule – those are actually not totally new, because they are almost the same as those presently found in the Fourth Schedule of the LTA Act. Under the LTA Act, they often have to do these kinds of temporary works, so the compensation principles mirror Page: 126 those found in that Act. And in any event, the agencies typically reinstate the land and where you have reinstatement of the land that is in lieu of compensation, they will work with the landowner in that process before returning the land. In those cases, where you have reinstatement, the issue of compensation will not arise, obviously because there has been reinstatement. Mr Lim also asked whether zoning would be taken into account and if I understood him correctly, he raised this in two scenarios: (a) acquisition; and (b) temporary occupation. It would not apply in temporary occupation. Under acquisition, there is a particular regime and it is governed under the land acquisition principles; that is, willing buyer, willing seller and you take into account zoning density, and so on. That is because you are actually selling the land. For temporary occupation – you are not selling the land. The ownership does not transfer so it is a different regime and the idea of zoning would not come into play. With respect to acquisition of land, it depends what the zoning or the purpose is.”
“But we do envisage that there may be instances where the work that needs to be done may take more than three years and that is the reason why the amendments provide some flexibility to cater for instances where a longer temporary occupation period is necessary. An example may be where the works suffer delay due to unforeseen circumstances and you have to extend the time. But throughout that period, of course, the owner will continue to be eligible for compensation. Mr Lim asked if affected owners and occupiers must vacate the land and deliver possession within one month and whether that would be enough time. The provision under section 42(3) actually provides for notice of at least one month. So, it does not preclude the giving of longer notice. Certainly, the agencies will take into account the reasons for the temporary occupation of the land. In some cases, it could be minor works; in some cases, substantial work. As an example, the temporary occupation of land may be in respect of a small part of land, let us say a grass verge or a fence, and you need it urgently. In such a situation, a month should be sufficient. But in other scenarios where the work does not need to be done immediately, you can give the owner more time and that will also give them more time to make the necessary arrangements. But I think the agencies will be mindful to provide adequate notice, especially in cases where the owner or occupier has to relocate. Mr Lim also asked about the basis on which compensation is assessed for temporary occupation. The Schedule sets out the categories of loss or damage for which compensation can be claimed and it also sets out the basis or the principles of assessing the compensation.”
“Mr Deputy Speaker, I thank the Members who have spoken in support of the Bill and would like to respond to the queries raised by them. Mr Lim Biow Chuan asked how the value of airspace or subterranean space would be determined, given that this is new. What is new in our context is the provision to acquire the airspace or the subterranean space, but valuation of airspace and valuation of subterranean space is not new. There are existing methodologies and this has already been done, in fact, for example, in respect of the subterranean space for the Tangs ION Orchard underpass. So, this is something really for valuers to address. I do not think that it would be difficult for them to do so. But insofar as anything is new, it would develop in the way it usually does, Page: 125 which is: people will apply existing principles; where existing principles do not quite cover the scenario, they will apply them analogously and from the analogous principles, they will start to develop new principles to cover new situations. So, this is really a matter of valuers' expertise but they ought to be able to do it. The second question Mr Lim raised was with respect to the period of occupation and he asked if the state can procure the temporary occupation of the land for more than three years. The framework for temporary occupation of the land under this Land Acquisition (Amendment) Bill is being amended for clarity and obviously the agencies would want to be careful and would not ordinarily want to occupy the land for any longer than necessary. So, the general guideline under the Land Acquisition Act is that the agencies should not temporarily occupy private land for public works for a period of more than three years from the start of the occupation.”
“The Bill also makes a number of consequential amendments to the following Acts: (a) The Rapid Transit Systems Act; (b) The Street Works Act; (c) The Land Transport Authority Act; (d) The Public Utilities Act; and (e) The Sewerage and Drainage Act. Amongst other things, these amendments align the provisions relating to compensation for temporary occupation of land and the right to elect for acquisition within each of these Acts with the provisions of this Bill. Mr Deputy Speaker, I beg to move. [(proc text) Question proposed. (proc text)] Page: 118 5.06 pm”
“The Collector, in turn, shall pay interested persons compensation that is agreed between the parties, failing which the difference shall be referred for the decision of the Appeals Board. The Bill refines the framework for temporary occupation of land in a number of ways. First, clause 9 of the Bill introduces a Schedule setting out the items that affected landowners may claim compensation for, such as loss due to displacement from the land or Page: 117 structural damage caused to the building on the land. The Schedule also sets out the basis on which compensation is to be assessed, to provide parties with greater clarity as to what may or may not be claimed. Secondly, the Bill sets out the procedures and timelines for making a claim for compensation for the temporary occupation of land. This includes the timeframes within which such claims have to be served on the Collector, failing which the right to claim compensation is time-barred unless the timelines are extended by the Appeals Board. However, the Appeals Board may not grant an extension exceeding six years from the time when the right to compensate first arose. Thirdly, the Bill permits those who are aggrieved by the Collector's award of compensation to appeal to the Appeals Board, in accordance with the procedure set out in the Bill. The decision of the Appeals Board is final and conclusive. I turn now to the other amendments. The Bill provides that owners who suffer substantial impairment of their rights in land because of any temporary occupation, acquisition of specific stratum or severance may request the Government to acquire their entire property.”
“Mr Deputy Speaker, I beg to move, "That the Bill be now read a Second time." Earlier, I had taken the House through the State Lands (Amendment) Bill 2015, which clarifies the extent to which a landowner owns underground space below his land. There is also a need to amend the Land Acquisition Act to permit the acquisition of a specific stratum of space belonging to the landowner. These amendments can be found in the Land Acquisition (Amendment) Bill 2015. The Bill also contains other technical amendments, including amendments to clarify the provisions relating to the temporary occupation of lands. I will discuss these amendments in turn. First, allowing flexibility to acquire specific stratum of space. The amendments in clause 3 of the Bill allow for the acquisition of specific stratum of space. This provides the Government with the flexibility to acquire only a specific stratum of space that is needed, for example, a pocket of underground space, instead of having to acquire the entire column of land, including the surface land and the airspace, when developing public projects. Where the Government acquires a specific stratum of space, the landowner will receive market value compensation for the acquired stratum. If the landowner's remaining land or surface development is damaged by the acquisition, he or she can claim compensation for the damages sustained. This is similar to other forms of acquisitions under the Act. I turn now to the amendments which clarify the provisions relating to the temporary occupation of lands. Presently, the Act provides that where any land is required for temporary occupation and use for a public purpose, the President may direct the Collector to procure the occupation of the land for up to three years.”
“(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: 116”
“Other than being able to continue building their basements to the necessary depths, the amendments ensure that the surface landowner will continue to have a right to sink his piles to the depths necessary to provide support for his surface development, including depths within the state-owned stratum. This is provided for in clause 4 of the Bill. A consequential amendment to the State Lands Encroachments Act will be made to clarify that a person who exercises such rights under the easement of support will not be considered to be encroaching on State land. The Bill also contains consequential amendments to other Acts, such as the Land Titles Act and the Sale of Commercial Properties Act, to ensure that the references to "land" in these Acts are aligned with that as provided under the Bill. Mr Deputy Speaker, in conclusion, Singapore is a small country with scarce land resources. There is, therefore, an important need to optimise all of our land resources, including the use of underground space, for the benefit of Singaporeans. To this end, it is necessary to clarify the issue of underground ownership. Introducing these amendments will enable our planners to plan for the long-term use of underground space. Our colleagues from the Ministry of National Development will release the vision and concepts for underground space in due course and they will seek the public's feedback on these plans. We will continue to strengthen our legislative framework as the plans for future underground development take shape. Mr Deputy Speaker, I beg to move. Page: 115 [(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.”
“Clause 4 of the Bill clarifies that the amount of underground space which is reasonably necessary for the use and enjoyment of one's property, and which the landowner correspondingly owns, is to 30 metres under the Singapore Height Datum or SHD, unless otherwise specified in the terms of the State lease. The SHD is a level fixed across the whole of Singapore from which depth measurements take reference. It is based on Singapore's historical mean sea level. All land in Singapore, Page: 114 with the exception of some excavated features and some parts at the coastline, such as dry docks at the ports and beaches, is above the SHD. The use of this benchmark, which corresponds to a mode of measurement that the building and construction industry is familiar with, provides clarity and certainty as it will not shift over time. As to how we arrived at the figure of 30 metres as the level that is reasonably necessary for the use and enjoyment of surface land, this level was determined after consultation with the industry, lawyers and academics, and an examination of existing known basement depths of Singapore buildings. Landowners will continue to have ample and sufficient underground space to build the basements for their developments. To provide a point of comparison, the Orchard ION building has four basement levels, which extend to only about 10 metres below the SHD. The deepest basement in Singapore, at Fusionopolis, is 15 metres below the SHD. The amendments clarify that reasonable use extends to 30 metres below the SHD. Landowners' existing use of their land will not be affected.”
“Mdm Speaker, I beg to move, "That the Bill be now read a Second time." The Minister for National Development had previously shared the possibilities and potential benefits of developing underground land, which, in turn, will free up surface land for other uses, such as housing, parks and recreation. There are already some examples of underground land being put to good use. One such example is the Jurong Rock Caverns, an underground oil storage facility, which saved about 60 hectares of surface land, a size equivalent to about 60 football fields. Underground land can also be developed to build extensive pedestrian connections between transport nodes and high-traffic areas, thereby improving connectivity for commuters and residents alike. These developments will benefit all Singaporeans. [Deputy Speaker (Mr Seah Kian Peng) in the Chair] To enable Singapore to put underground space to more productive use, it is necessary to update the legislative framework to clarify the ownership of underground space. Presently, the boundaries of land ownership are clearly marked out for surface land, but not so for underground space. This is unsurprising, because our existing laws were developed at a time when extensive underground development was not contemplated. For this reason, Mr Deputy Speaker, the State Lands (Amendment) Bill 2015 amends the State Lands Act to clarify the ownership of underground space. I will now cover the key provisions in the Bill. Under our current laws, a landowner owns the underground space to a depth that is reasonably necessary for the use and enjoyment of surface land. However, there is no clarity as to what such depth is.”
“Madam, in conclusion, MinLaw will continue to review our laws and policies to promote access to justice, strengthen the rule of law, help Singapore legal practices to become regional players and develop Singapore as a legal hub.”
“The Advisory Committee on Moneylending has examined these issues and will make its recommendations soon. Page: 111 Ms Sylvia Lim asked about the rationale and cost-effectiveness of outsourcing our call answering functions and its effect on service delivery. During the 2012 COS debate, Ms Lim raised the issue of delays and dropped calls when bankrupts tried to contact the Insolvency and Public Trustee's Office (IPTO). My Ministry replied that we were looking to improve the efficiency and responsiveness of our processes. In 2013, the Ministry contracted a professional service provider to operate a new Ministry-wide Integrated Public Engagement System (IPES). The IPES ensures that all phone calls are answered and emails are tracked for response times. IPES agents also serve walk-in members of the public who come to IPTO and the Legal Aid Bureau. They deal with general enquiries and simple cases. More complex matters are referred to our case officers and these necessarily require more time to respond to. Ms Lim mentioned the case of somebody who was told that he would receive a response in 14 days. The SOP is between three and 14 working days. So, some are responded to in three days and some in 14 days, depending on the case officers' workload. In 2014, on average each month, IPES dealt with over 7,000 phone calls, 2,000 walk-in customers and 11,000 emails for IPTO alone. Our response times have improved significantly. We will continue to refine the system to serve our customers better. Thus far, this approach has been an effective way of working within the prevailing manpower constraints. There are manpower challenges in many areas of the Civil Service and, given these constraints, outsourcing is no longer a matter of choice.”
“Licensed moneylending removes the need to borrow from loan sharks, but we also must regulate the industry strictly and carefully, to protect vulnerable borrowers. We share Members' concerns about the high interest rates and late charges imposed by some moneylenders today. We are considering imposing appropriate caps on interest rates, late fees and other charges. We, too, are concerned about borrowers who borrow beyond their means, often from multiple moneylenders. To address this, we are considering setting up a moneylenders' credit bureau to enable industry players to assess the aggregate risks of individual borrowers. 4.30 pm Second, on debt collection practices. The actions taken by debt collectors in collecting debts cannot contravene the law. For example, the Penal Code makes it an offence if hurt or threatening behaviour is involved. In addition, there is redress under the Protection from Harassment Act (POHA). Since POHA came into force last November, at least four anti-harassment orders have been issued against debt collectors. Borrowers who encounter criminal behaviour from licensed moneylenders or their debt collectors should report the matter to the police or the Registry of Moneylenders. Mdm Chairman, I would just need two minutes to complete the rest of my speech, if I may.”
“The SILE's recommendations were arrived at after applying the methodology in the Fourth Committee's report and considering the universities' representations. The Ministry has accepted these recommendations, which will take effect from Academic Year 2016/2017, so those who have secured places to read law at the omitted OSUs before 1 October 2015 or for the Academic Year 2015/2016 intake will not be affected. They remain eligible for admission to the Singapore Bar if they satisfy the other general criteria for admission. Separately, there is a need to ensure that sufficient law students are interested in joining practice areas where there is an unfilled demand for lawyers. In this regard, while there is no overall shortage of lawyers, there is a shortage of lawyers entering and staying in criminal and family law practice. This shortage is unlikely to be addressed by the current supply of law graduates as many of them aspire to practise commercial and business law. Page: 110 Having sufficient family and criminal lawyers is important to the public. The Fourth Committee recommended establishing a third law school as a targeted measure to increase the number of family and criminal law practitioners. This will be the UniSIM Law School (ULS). Given its community-focused ethos, ULS aims to attract suitable mature students seeking a mid-career switch to law, who can handle the demands of family and criminal law practice. ULS will begin with a modest intake of about 50 to 75 students a year. The ULS Steering Committee is finalising its report. We will announce details once the Steering Committee has concluded its work. Mr Lim Biow Chuan spoke about the moneylending industry. Some borrowers have good reasons for wanting to borrow but lack access to other lending facilities.”
“Page: 109 There is a distinction between: (a) law graduates getting training contracts and being subsequently employed as practising lawyers; and (b) law graduates being able to find employment more generally. The number of available training contracts and retention of trainees are determined by the law firms, not the Government. It depends on their manpower needs which, in turn, are determined by market forces. The industry is generally able to take in local graduates. However, the increase in the number of students studying overseas has intensified the competition for training contracts. The SILE has put in place measures to facilitate more training contracts. Senior lawyers can now supervise up to four practice trainees, instead of two, at any time. The SILE has also set up a Working Party to review the practice training framework. However, it ultimately depends on the number of trainees that senior solicitors can effectively supervise and which the firms can eventually retain. So, aspiring entrants should consider their options carefully and be prepared to compete for training contracts if they wish to practise. However, general employment prospects for law graduates, on the other hand, are good. A law degree provides excellent training for numerous other areas of work besides practice and law graduates have many other employment options aside from practice. For overseas universities, we maintain a list of Overseas Scheduled Universities (OSUs). The Fourth Committee on the Supply of Lawyers had recommended that the list of OSUs be reviewed and updated every five years to better reflect current rankings of UK Law Schools, as a "qualitative sieve".”
“Any further extensions will need to be carefully considered. Flexibility has to be weighed against professional and ethical challenges. We will continue to study these issues in consultation with the industry and stakeholders and move in tandem with market developments. Mr Kumar and Mr Vikram Nair commented on the supply of lawyers, UniSIM and the list of recognised Overseas Scheduled Universities. MinLaw's objective is to ensure a sufficient pipeline of quality legal talent to support Singapore's legal needs. We uphold high standards to maintain quality. We do not try to beat the market mechanism by controlling numbers, but have the responsibility to inform aspiring lawyers of the situation to enable them to make informed choices on whether, and where, to pursue a law degree. On our part, we have already made public the figures that are available. We thank Mr Kumar for his suggestion to make more information available on training contracts and will discuss this suggestion with the Law Society and the Singapore Institute of Legal Education (SILE). The number of local law graduates has remained fairly constant at less than 400 students per year over the past three years. The increase arises from the number of law students studying overseas. The number at UK universities has doubled over four years to hit around 1,140 students in 2013. The number at Australian universities has increased more than 25% to hit around 390 between 2011 and 2013. Taken together, the number of students from UK universities and Australian OSUs has increased by 47% over the past three years.”
“Mdm Chairman, this is an exciting time for the legal profession. Asia's economic growth will provide opportunities to Singapore lawyers and local law firms. I would encourage law practices to take advantage of regional opportunities, build capability, upgrade skills and leverage on technology. The Government will assist. There are various schemes offered by the economic agencies, including those announced recently. These include the Double Tax Deduction for Internationalisation (DTD) scheme, which has been enhanced to cover salaries for Singaporean personnel posted to new business entities. This will provide greater support to law firms venturing overseas, by co-sharing their risks and initial costs of expansion. This helps Singaporeans to gain Page: 108 international exposure, which is important for future leadership positions. Then, there is the Development and Expansion Incentive for International Legal Services scheme (DEI Legal), which has been extended until 31 March 2020. It provides a 10% concessionary tax rate on incremental income derived from the provision of international legal services for five years and is available to approved law practices incorporated as companies. I agree with Mr Hri Kumar that technology has transformed the way law firms provide services. Technology, properly harnessed, increases productivity and innovative delivery of legal services. We are partnering the Law Society to encourage adoption of technology where beneficial. We are also studying how technology will impact the delivery of legal services in the future. Mr Kumar commented on alternative business structures. The Legal Profession Act currently provides a calibrated approach by permitting Legal Disciplinary Practices, where non-lawyers can become partners, for example.”
“The story of Mr Johnny Ng that I shared earlier shows how this can be done. I would like to encourage our students to take advantage of the opportunities offered by SkillsFuture. With hard work and determination, everyone can succeed, no matter what your starting point. (In English): Madam, I will now continue in English. Prof Tan Tai Yong spoke about the need to support research in the Humanities and Social Sciences or HSS. HSS contributes to a better understanding of our society. It complements Science and Technology research. Investment in HSS research is important for Singapore's development. Concerted efforts are needed to deepen research grounded in Singapore's context. Currently, MOE supports research funding for the social sciences through the Academic Research Fund. Many Government agencies commission HSS research in areas relevant to public policy. The Government is considering a bigger push in HSS research, guided by the consideration of serving Singapore's needs. The Government will engage the academic community further on this.”
“Today, Ocean King is set on making the world's finest fish bak kwa, a new take on a timeless tradition and enjoyment of bak kwa without the guilt. Derek's polytechnic education put him in good stead to be an entrepreneur. His story also shows how our polytechnics' Centres of Innovation can help industry. This is the new face of education – learning and collaboration do not need to stop when school ends. Education and industry are intertwined and, when done well, can spur entrepreneurship, support innovation and productivity, generate economic activity and help make dreams come true. Mdm Chairperson, if I may now say a few words in Malay. (In Malay): [Please refer to Vernacular Speech.] Mr Zainudin asked about the desired outcomes of pre-employment programmes and lifelong learning. With SkillsFuture, our students will have many more opportunities to succeed in life. It is not possible to have guaranteed employment places waiting for everyone. But with SkillsFuture, we can greatly improve their employment prospects and opportunities to progress in their careers. ECG will help our students to recognise their strengths and identify good job opportunities in many different sectors. Internships will also enable students to gain real life skills and get to know the industry better. If they do well in their internships, employers will want to employ them. Page: 97 The Earn-and-Learn programme will enable them to work and receive a salary, and study and obtain additional qualifications at the same time. The Continuing Education and Training or lifelong learning programmes will allow them to upgrade their skills throughout their lives. This will enable them to get better increments and promotion, and also move into supervisory, managerial or even ownership positions.”
“And somewhere between the electronics, air-cons and the pumps, he managed to notice the pretty girl in the seat behind him at ITE and married her. On the strength of continuing education and training from ITE and SVI courses, Johnny transformed himself over 15 years, from a GCE "O" level school leaver to where he is today – the owner of a million-dollar business. His company is still growing and he has not stopped learning. He continues to take other courses and he remains very grateful to ITE, not just for his success in life but also for his wife! The MOE-funded CET courses at the polytechnics and ITE and WDA-funded WSQ courses will help people to progress through life, just like Johnny. There are also short Page: 96 courses offered by the polytechnics and ITE in a wide range of interest areas. Our IHLs are also Centres of Innovation. Let me now tell you Derek's story. Derek graduated from Republic Polytechnic or RP in 2008. His dream was to start a business to make fish bak kwa. After NS, he started a company in 2011 with RP and SPRING Singapore's help. But his first venture failed. However, he did not give up. He continued to pitch for investments, look for opportunities and he continued to work with his mentor from RP's Centre for Enterprise and Communication to improve his business plan. The original product was not so good in presentation and also in terms of how it was done. Derek tapped on what he learnt during his final-year project at RP about processes to prevent the introduction of bacteria. This led Derek to vacuum-seal the fish bak kwa, to increase its shelf-life without adding preservatives. Derek relaunched Ocean King in 2013 and secured his first funding in October 2014. It comes in three flavours – King Salmon, Big-Eye Tuna and Blue Marlin.”
“The Earn-and-Learn Programme is, in fact, a powerful recruitment platform and pipeline of talent for local businesses, MNCs and SMEs alike. I would encourage companies to take it up. Lifelong learning is another important aspect of SkillsFuture. Let me tell you Johnny's story. I met Mr Johnny Ng, Managing Director of NKH Building Services, a company that does pump services and maintenance. Johnny finished his GCE "O" levels in 1977 and proceeded straight to National Service (NS). He found it difficult to get a job after NS. He realised he needed to upgrade himself and took part-time courses at the then-Singapore Vocational Institute (SVI) and, later, ITE. From 1988 to 1992, he took electrical studies as he was then working with his brother to install and maintain control panels. From 1993 to 1994, he obtained his qualification as a licensed electrical worker. As business expanded, he realised he needed other skills. So, between 1992 and 1995, he took up management courses at the Chinese Chamber of Commerce and Industry. And at the same time, electronics was booming. He saw the opportunity but realised he did not have the skills. So, between 1995 and 1999, he took electronics courses at ITE. Then, came the 1998 crisis which hit many businesses hard, including Johnny's. Undeterred, he modified his business plan to ride out the crisis. He changed his business focus, from installing pumps to the maintenance of pumps, a more shock-proof business model. To equip himself for this new direction, he then took courses in plumbing from 1999 to 2002 and air-conditioning from 2002 to 2005. Not content with this, from 2003 to 2004, he became a licensed plumber.”
“Another aspect of SkillsFuture which MOE is closely involved in implementing is internships and industrial attachments. The benefits of internships are clear. They provide an authentic learning environment which allows the student to gain real-life practical knowledge and hands-on experience. Mr Yee Jenn Jong spoke about the management of industrial internships. Some companies do them well, some not so well. We agree that more can be done to improve internships. It has to be done sector by sector. And the Government and the IHLs will support, but the employers must do their part. 3.45 pm In the early childhood sector, ECDA has provided a capability grant to centres that host enhanced internships for students from the full-time Early Childhood Care and Education courses at the IHLs. The grant will help employers defray costs of developing and running internship programmes. For instance, the cost of training, deployment of mentors as well as costs in providing stipends and teaching and learning resources for interns. ECDA is also working with IHLs to develop structured internship programmes for specific durations, which will help companies plan their internships better. We need more companies to support enhanced internships to provide meaningful work assignments and mentoring by experienced professionals. We also need companies to provide places for on-the-job training within the SkillsFuture Earn-and-Learn Programme. Polytechnic and ITE graduates who successfully complete this skills training programme will Page: 95 receive industry-recognised qualifications, such as advanced diplomas, specialised diplomas or certificates. Members have spoken about the need for manpower.”
“And if his passion for culinary arts is still strong, he may go back to it later in life. I suppose he can use the SkillsFuture Credits. He has since applied for Polytechnic admission in engineering-related courses, including Engineering and Product Design. These courses would offer the prospect of interesting, practical and stable jobs and they allow him to leverage his Mechanical Engineering skills foundation yet explore new areas. However, his internship at PS.Cafe provided him with valuable experience and he now has the option of revisiting culinary arts at a later stage if Page: 94 he wants. But the most important part about this story is that the advice, guidance and the internship empowered Daniel to make an informed choice that was his own decision. This story illustrates the importance of Education and Career Guidance or ECG. And this can be delivered through structured ECG programmes, short internships or industrial visits. Mr Ang Wei Neng noted that ECG counsellors need to be properly trained. We agree. MOE will play a coordinating role to ensure that ECG programmes are relevant to students from primary to post-secondary levels. And a Central ECG Unit is being set up within MOE to oversee planning and implementation of ECG. We will pilot an enhanced engagement programme for Secondary 2 and 3 students to build awareness of industries and sectors and the applied learning environment in polytechnics. And, this year, we will begin with 50 schools for the Secondary 2 students, and 24 schools for the Secondary 3 students. At the polytechnics and ITE, we will introduce more systematic ECG through a common set of ECG outcomes and learning objectives.”
“ECDA is also working closely with WDA to develop structured competency-based pathways. SkillsFuture has been a prominent feature of this Budget, and MOE is actively involved in implementing various aspects of SkillsFuture. First, enhanced education and career guidance will now be an integral part of our education system. And for this, let me share Daniel's story. Daniel was an ITE student, completing a Higher Nitec in Mechanical Engineering when I first met him last year. Like many young people, he was not sure what his next step should be. He had taken Mechanical Engineering at ITE but it was not his first choice. He was not sure he wanted to continue in engineering. I asked him what he thought he might like to do. He said either culinary arts or sports science but, again, he was not sure. I offered to arrange internships for him so he would be in a better position to decide. He opted to try culinary arts. I asked PS Cafe, which operates in my constituency, if they could take him on. They kindly agreed to do so. Daniel duly went for his internship which he enjoyed tremendously. The outcome, however, is interesting and this is how Daniel made his decision. He spoke to the other chefs and they shared their experiences and advice. He also spoke to his section head of Mechanical Engineering at ITE. He knew he really enjoyed his work as a chef and had fun in the kitchen. But he also considered the cost of sacrificing and throwing away everything he had learnt in the two years. So, after much thought, he decided to continue with engineering and not to discard what he has learnt. Cooking remains a passion for him but he wants to have something which builds on his engineering background as a career.”
“I would also encourage persons, including women who have left the workforce and wish to return, to consider a career in early childhood. There are many different pathways to become an early childhood professional, with entry and training into the sector at all levels. There are early childhood courses at ITE, polytechnic and university levels, each providing a stepping stone to the next level, in combination with work experience. For pre-service trainees, there are the ECDA Training Awards for both full-time ITE and polytechnic diplomas in Early Childhood Care and Education courses. The ITE Training Award was introduced last year. The take-up has been promising, with about 20 ITE students receiving the award to date. Mr Ang Wei Neng and Mr Zainudin Nordin asked about support for mid-career learners. There are also pathways for mid-career professionals who want to enter the sector. Li Xian was an auditor in an accounting firm for four years. She wanted to change her job for a better work-life balance. Inspired by her older sister who is an early childhood professional, Li Xian took the Singapore Polytechnic Conversion Diploma in Early Childhood Education and completed the one-year course in September last year. She is happy with her career change Page: 93 and says that she is "enjoying the moments of satisfaction and the priceless hugs of the children on a daily basis!" There are also part-time courses for those who cannot study full-time. Working professionals can take the part-time Diploma in Early Childhood Care and Education at our polytechnics from October this year. These courses will give recognition for prior learning and competencies gained through work experience, which will shorten the overall course hours.”
“Here, you see the MK children visiting a flower shop. These are the ones doing Tamil Language and interviewing the Indian owner about the use of roses in the Indian culture. They also interviewed others and searched through books and the Internet. The owner showed them around his shop, demonstrated how a rose garland was made using banana strings and explained the use of roses on different occasions in the Indian culture. Page: 92 The children were so excited that they decided to set up their own florist shop! This required them to work with each other, practise their Tamil and express their creativity. The children also learnt about the value of teaching others when they went home and created rose bouquets with their families using recycled materials for their flower shop. This WoW project illustrates the pedagogical approach of learning through play as well as innovative techniques for language learning. But in order to provide good preschool education, we must also have good preschool teachers. MOE is working closely with the Early Childhood Development Agency or ECDA to train preschool teachers. We have developed the Nurturing Early Learners Framework which guides preschools in designing and implementing a quality kindergarten curriculum for children aged four to six. We have also launched the Educators' Guide which helps teachers translate the Framework into quality learning experiences for children. About 6,000 preschool educators were expected to be trained by end-2014. We need more Early Childhood professionals to meet the growing demand for services. If you are interested in teaching, if you like children and are passionate about helping them build character and a strong foundation for life, do consider a career in Early Childhood Care and Education.”
“With your permission, Mdm Chairman, may I display some slides on the screens?”
“In terms of how they learn, MOE has two core pedagogies: to engage children in learning through, firstly, purposeful play, and, secondly, quality interactions between teachers and children. The MKs of today are not the kindergartens that we remember. Children no longer learn through spelling lists and rote memory. Today, we encourage children to learn, explore and ask questions about their world through play. The teachers plan learning activities that are fun and enjoyable for the children and help them achieve intended learning outcomes holistically. Mr Hri Kumar talked about communication skills. We are helping our children to build a strong foundation through bilingualism. Research increasingly shows the importance of learning languages at a young age. Children who are exposed to two languages from young are more likely to be able to acquire both languages at a higher level of proficiency than their peers who start later. Researchers compared a group of children who learnt a second language earlier and used it longer with another group who learnt a second language later. They found that the group of early bilinguals were more fluent and proficient than their peers. The early bilinguals also had greater self-regulation skills and ability to focus on a given task. We have made bilingualism a key feature of our MKs so that our children will be fluent in English and Mother Tongue and will have a strong anchor on which to build their language capabilities as they grow older. Our MKs have the Weeks of Wonder or WoW. These are term projects that facilitate language learning. Each year, children do four WoW projects, two in English and two in Mother Tongue, where they work together with their peers and teachers to investigate topics of interest in Mother Tongue.”
“Mdm Chairperson, the Minister has given an overview of the future of education and what the Ministry of Education (MOE) is doing. I will speak on two specific areas: preschool and tertiary education. Ms Irene Ng and Mr Zainudin Nordin touched on social and emotional resources of our young and supporting low-income students. We aim to give our children a good start in life. Research shows that children who have a good early childhood education tend to do well later in life. A good educational foundation early in life is, therefore, extremely important. We are doing this in two ways. First, by promoting consistency of standards in content and teaching across the sector. Secondly, through MOE Kindergartens or MKs. To-date, we have 10 MKs which provide quality preschool education that is affordable to Singaporeans. Five more will open next year. The MKs aim to pilot teaching and learning resources and establish good practices for sharing with the preschool sector. Giving every child a good start does not mean that the child in preschool must be able to do the Primary 1 syllabus while still in preschool! There is still a preconception that a child is doing well only if the child is doing something beyond that child's level. That should not be the case at the preschool stage; the child should learn in a way that is appropriate to his age and stage of development. What is important is: what they learn, that is, the content; and how they learn, the pedagogy. For content, MOE has developed the Nurturing Early Learners Curriculum, a toolkit of kindergarten curriculum resources. This contains guidelines for a holistic preschool education, including learning areas, such as numeracy, motor skills development, language Page: 91 and literacy and social and emotional development.”
“So, what MinLaw would like to do is to wait for the report, then we will review it and see if there are steps that should be taken in this regard.”
“Madam, I thank the Member for her supplementary questions. Actually, we can look at it at three levels. The first level is really where debt collectors engage in criminal conduct. This clearly steps across the line. So, for example, you could have people causing hurt or behaving in an intimidating or threatening manner. That is criminal and it falls within the area of criminal sanctions and penalties. And, for those, there is a clear legislative regime to work towards that. The examples that the Member cited actually fall into another category. I think what the Member is saying is that there are some types of conduct which are not clearly criminal offences but are, nevertheless, harassing in any event. This is where the Protection from Harassment Act comes in, because that came into force only very recently. Prior to that, a large amount of this type of conduct really did not have much redress. But now that you have the Protection from Harassment Act, there are actually two options under that Act. There are some acts which will, again, fall into a criminal category and then there are some, like faxing letters, turning up at the workplace, which may not necessarily be criminal but they do cause alarm, distress and harassment in any event, in which case, there are civil remedies and the borrower can actually go to the State Courts and file a complaint. Then I think there is one more category which the Member is urging us to look at, which is that, apart from these sanctions, can we consider guidelines or an indication to the industry of what are the appropriate practices to follow? That is something which currently falls within the purview of the Advisory Committee on Moneylending. The report is expected, as I have indicated earlier, in the first quarter of 2015.”
“Madam, creditors, such as banks, licensed moneylenders or judgment creditors, can and do take steps to recover their debts and may engage debt collectors to do so on their behalf. The actions taken by creditors or debt collectors in collecting debts cannot contravene the law. So, for example, the Penal Code makes it an offence if hurt or threatening behaviour is involved. In addition, the new Protection from Harassment Act provides civil and criminal remedies against unreasonable harassing behaviour. Where licensed moneylenders are concerned, the Registry of Moneylenders conducts checks to ensure that persons who have previously engaged in criminal conduct are not allowed to assist in any aspect of the moneylending business, including the collection of debts. Borrowers who encounter criminal behaviour from licensed moneylenders or their debt collectors should report the matter to the Police or the Registry of Moneylenders. Moneylenders found to have committed offences may have their licences suspended, not renewed or revoked by the Registry. The Advisory Committee on Moneylending was set up last year to review the moneylending regime. The Committee will also be looking at the conduct of debt collectors engaged by moneylenders. The Committee targets to issue its final report by the first quarter of 2015.”
“Recognising that it is not possible for a patent examiner to be aware of all the relevant body of knowledge and technology that is publicly available worldwide, patent systems in the world generally allow for the validity of patents which have been granted to be contested, and Singapore is no exception. With respect to the third question, Mr Giam asked about the search and examination process. He mentioned that it was highly complex and he asked how much expertise the Court has to determine the validity of a patent. This is no different from any other subject matter brought to the Court which is of a technical or complex nature. In the usual course, the Court will have the benefit of the assistance of expert witnesses in order to do this. In the fourth question, Mr Giam said that intellectual property is important to entrepreneurship and asked whether the recent cases would affect confidence in Singapore as a place for protection of intellectual property. As far as MinLaw is aware, it has not affected the confidence of investors and entrepreneurs in the intellectual property regime in Singapore.”
“That is fine. That was the part I needed to clarify. With respect to the first question which was what considerations IPOS takes into account, the patent protection accorded varies from country to country. Patent protection in each country is granted by its patent office and most countries adopt the internationally recognised criteria of novelty, inventive step and industrial applicability to ascertain whether a patent should be granted. Each patent office conducts its own search and examination. The determination of whether an invention meets the criteria for obtaining a patent depends very much on the relevant body of knowledge and technology that the examiner is able to find in the public domain within the time available and his evaluation of the information found. Page: 26 With respect to the second part of that question, Mr Giam asked in what circumstances would Government agencies go to the Court instead of IPOS. As I had mentioned earlier, the two cases in question arose in the context of counterclaims. With respect to the second question, Mr Giam asked whether IPOS would grant patents for inventions which are not patentable. As I mentioned earlier, each patent office will do its own search and examination. It will look at the criteria of novelty, inventive step and industrial applicability and ascertain whether, on the face of it, the patent can be granted. I should say, however, that all patents that are granted are potentially open to challenges by other parties. The grant of a patent does not guarantee that the patent will never be successfully challenged in Court since the patent office grants patents without the benefit of hearing arguments by other parties as to why a patent should not be granted.”
“Mdm Speaker, may I just clarify with Mr Giam on the first question? He referred to IPOS having its own processes and he asked what considerations were taken into account. But he asked the second question following that – not a separate question but pertaining to the first one – can I just understand his full question so that I can answer it appropriately?”
“Madam, there have been two revocation applications made since 2001. These were not made to the Intellectual Property Office of Singapore (IPOS) but in the High Court, in the context of counterclaims to proceedings. The first case was Mobilestats Technologies Pte Ltd v Attorney-General. The plaintiff claimed in Court that the defendant had infringed its patent. The Court held that the plaintiff's patent was invalid and revoked it. The second case was Yiap Hang Boon v Housing Development Board. The Court held that the patent was invalid and revoked it. The Ministry of Law (MinLaw) and IPOS have not received any other complaints which allege that the Government has infringed the IP rights of local IP owners.”
“It is a little difficult to track this kind of information because when a person goes to pawn an item – if he pawns it – and then you do not know at that point of time whether or not he is going to redeem it. So, you will only know when somebody has not redeemed it when he has not redeemed it. And then it would be a question of asking the pawnbrokers for the details and, even then, you will have to go and track down the person and say, "Why did you not redeem this piece of jewellery?" "What is the reason for not doing so?" You can see the kind of logistical difficulty that you would have in doing that. That is one of the reasons why we have not been able to track this. We will take note of Mr Yee's request but, at the present time, we are really talking about 5% which goes unredeemed and the reasons that were given are largely anecdotal. We will look at it and keep Mr Yee's request under consideration but, as I have said, logistically, it is very difficult to pinpoint with mathematical accuracy what are the exact Page: 68 reasons people do not redeem.”
“I think it is not possible to micro manage each transaction. So if you look at it from a broad basis, generally speaking, he would have known the pawnbroker would not have an incentive to depress the loan amount too much because it is possible for the pawner to go to another pawnbroker. If it is something that falls within a reasonable range, the pawner may well be happy to live with it. When you have an item, you would not necessarily go to the first pawnbroker – it is open to you to go to other pawnbrokers and see what is the best deal that you can get and our assumption is that people will actually work on this premise. We will see how the system goes, but if it turns out that there are abuses of the nature that Mr Kumar describes, then it may be necessary at a later point to intervene. At the moment, based on what we see, we think that this would be a workable system, but we will monitor and review.”
“With respect to the question, where Mr Kumar suggested that the loan extended would exceed or would not exceed the valuation, can I just clarify that first point? Page: 67”
“Well, I think that one of the things we would have to do is to look at this in the context of the comments which the Members have raised. I think three Members – Mrs Chiam, Mr Yee and Mr Kumar – have stood up to express concern about the surge in the number of pawnbroking loans. And as I have explained, that is really related to the demand as well as the price of gold, but I think the underlying concern was that it is actually whether or not people might over-extend themselves in credit. So, even as the pawnbroking industry stands as it is today, I have had queries from three Members on whether that is something we should be concerned about. So, we think that the state of the industry, as it is today, can be addressed by this Bill and we would be very cautious before we would want to go with any online pawnbroking. The short answer is, at the moment, it is not under consideration. It is something we would have to review and think about very carefully because we have to keep a balance between ensuring that there is enough credit available for those in need and, at the same time, not making it so easy that people over-extend themselves.”
“May I clarify with the Member whether the Member is suggesting that we should have online pawnbroking? Or is the Member saying we should not have online pawnbroking? Page: 66”
“For those who have over-extended themselves, then, of course, it should be important that they should review how they used their finances and spend within their means. But for those who are genuinely in need, this Government has always been ready to assist and the Government does, in fact, provide assistance. There are subsidies for education, healthcare, housing and childcare. There are GST vouchers which include cash, rebates to offset utility bills and a top-up to the CPF Medisave account. There are service and conservancy charges rebates. There are programmes and schemes for persons with disabilities. There is a Community Health Assist Scheme. There is the MOE bursary and financial assistance scheme. There are the CDC, CCC bursary, CPF housing grants, Workfare Income Supplement, ComCare assistance, Medifund and Public Assistance. So, for those, it would not be necessary for them to take their items to pawn. They should actually tap on these Government assistance schemes which are put in place specifically to assist those of low income and who are in need of help.”
“Assoc Prof Lateef asked how many Islamic pawnbroking businesses there are in Singapore currently and whether they will be briefed. There are currently no licensed Islamic pawnbrokers in Singapore. The Registry of Pawnbrokers has not received any application to set up an Islamic pawnbroking business. And if there were to be any, Islamic pawnbrokers would be subject to the same regulations as other pawnbrokers in Singapore. Mr Yee Jenn Jong had inquired about the various reasons for people taking up pawnbroking loans and also referred to cost of living and other expenses. In response, I would make a number of points. Pawnbroking loans are secured loans. The pawner needs to furnish items of personal property as collateral in exchange for a loan from the pawnbroker. So, in this regard, the amount of loan the pawner can take up is limited by the value of his Page: 65 collateral and, given the nature of pawnbroking loans, it is unlikely that the increase in the number of pawnshops would result in people over-extending themselves in credit. This is in response to his comment about the number of pawnshops there are. The Registry of Pawnbrokers does not impose a cap on the number of pawnshops at any locality. People pawn items for various reasons and not necessarily for the purpose of gambling. Ultimately, individuals have to take personal responsibility for their finances. They should not gamble or borrow beyond their means. In response specifically to the point that Mr Yee raised about cost of living, I think that what we should do is look at two groups of people: those who really cannot afford and whose income does not allow them to meet their expenses; and those whose income does allow them to meet their expenses but, for various reasons, they over-extend themselves.”
“Assoc Prof Fatimah Lateef asked about the licensing conditions for pawnbrokers, what the rationale was for not permitting a licensee to carry on the business of pawnbroking at any place other than the licensed place of business and whether a pawnbroker can meet or perform transactions with their clients outside their business premises. As pawnbroking transactions involve cash and valuable items, pawnbrokers are not allowed to conduct their business outside their licensed place of business for security reasons. You can imagine what would happen if a big diamond ring was displayed in the middle of a coffee shop and somebody is claiming that this cost $200,000. It is not a very good idea. In deciding whether or not to grant a licence, the Registrar considers whether the pawnbroker has put in place adequate security measures at his place of business, such as by installing CCTVs and security alarm systems. Assoc Prof Fatimah Lateef asked whether pawnbrokers could be briefed about the new licensing conditions. The Registry of Pawnbrokers did, in fact, conduct a briefing on the Bill to the industry in November 2014, including on the new licensing requirements. Individuals with further queries may contact the Registry for assistance. On money laundering and countering the financing of terrorism, in response to Assoc Prof Fatimah Lateef and Mr Hri Kumar, I would say these measures to prevent money laundering and terrorism financing are similar to those imposed in other financial sectors in Singapore, such as the banking sector, and the Ministry will work together with other relevant Government agencies to see how best to provide guidance to the industry.”
“Mr Kumar asked whether the pawnbroker should be given the discretion to deal with the pledge after receiving a notice from a person who claims to be the rightful owner of goods that were wrongfully pawned. Clause 67(4)(b) of the Bill provides the pawnbroker with the option to deal with the pledge as he deems fit in such circumstances, if there is no Court order relating to the pledge. Where the pawnbroker proceeds to deliver the pledge to another party who is not the rightful owner, the pawnbroker may be liable for the tort of conversion under the common law. However, the clause also enables the pawnbroker to refuse to deal with the pledge for a period of three months after receiving the notice without being liable for any loss or damage caused. As Mr Kumar observes, this period of three months will give the rightful owner sufficient time to obtain a Court order relating to the pledge. With regard to the replacement of pawn tickets, Mr Kumar had asked what "reasonable inquiries" the pawnbrokers are expected to carry out. The example Mr Kumar provided of cross-referencing the applicant's details against the pawnbroker's records is one way in Page: 64 which the pawnbroker may satisfy the test of making "reasonable inquiries". Where the applicant is not the pawner, the applicant may be asked to provide receipts as evidence of the purchase of the pledge. In this regard, it also should be noted that any applicant who makes a false claim is committing an offence under the Penal Code. In addition, I confirm that clauses 66(7) and 67(5) will only protect the pawnbroker from any loss or damage where it has done or omitted to do anything in accordance with their respective clauses.”
“The Court will examine all the relevant factors, such as the manner in which the pawnbroker had conducted the valuation and the level of skill or expertise involved. In this regard, it is no different from any other type of dispute where the value of an item is disputed and the Court has to take into account all relevant factors to see whether the valuation given was a fair and proper one. Mr Hri Kumar also asked about the rationale for pegging the compensation to the valuation provided by the pawnbroker at the point of pawning. Pawnbrokers have strong incentives to ensure that this valuation reflects the market value of the pledge. This valuation also reflects the value that both parties had agreed on when entering into the transaction. Pegging the compensation to the value of the pledge at the time of redemption could also result in lower compensation for the pawner since the value of the pledge may have decreased. Mr Hri Kumar asked, where the pawnbroker has wrongfully realised the pledge, whether the surplus goes to the pawnbroker and what the rationale was for removing the offence of dealing with any pledge in any manner that is not authorised by the Pawnbrokers Act. Where there is a surplus arising from the pawnbroker's wrongful realisation of the pledge, the pawner may file a claim against the pawnbroker to recover the surplus. Where such wrongful realisation of the pledge involves criminal misconduct, the persons involved may be effectively dealt with under the Penal Code or other relevant criminal statutes. There were also a number of questions about the protection of rightful owners of goods wrongfully pawned.”
“There were also other queries on valuations, such as whether wide variations in the valuations obtained would be acceptable, whether pawnbrokers might be incentivised to give unfairly low valuations and whether someone may claim against the pawnbroker if the pawnbroker did not act in good faith or take reasonable care in providing the valuation. Strong competition in the pawnbroking industry will act as an effective check against pawnbrokers providing depressed valuations, since pawners will be able to shop around for the most favourable deal. With redemption rates at over 95%, there is little incentive for a pawnbroker to offer a depressed valuation at the time of taking the goods in pawn. A depressed valuation will mean a smaller loan can be extended. A depressed valuation provides a strong incentive for the pawner to sell the pawn ticket to another pawnbroker who will then redeem the pledge. Pawnbrokers who consistently offer depressed valuations are also likely to suffer reputational damage and may very well go out of business in a competitive industry. Further, as Mr Hri Kumar noted, the pawnbrokers may be liable for any loss or damage suffered by the pawner or third party as a result of relying on the valuation provided by the pawnbroker if he did not act in good faith or take reasonable care in providing the valuation. Page: 63 Pawnbrokers will, therefore, have strong incentives to ensure that the valuation reflects the market value of the pledge. If the valuation is challenged, the Court will ascertain whether the pawnbroker had acted in good faith or had taken reasonable care in giving the valuation.”
“And of the 5% that are not redeemed, 90% are uncontested and, as I mentioned earlier, therefore, yield no surplus to the pawners. We are actually talking about 10% of the 5%. The benefits of the auction system are enjoyed only by a very small number of pawners who might receive a surplus from the auctions. On the other hand, the high costs of running regular auctions are borne by all the pawners. The pawnbroking industry is competitive and pawners are able to easily shop around for the best deal. So, there is a strong incentive for pawnbrokers to pass on cost savings to pawners and the new system will also require pawnbrokers to send pawners a notice of forfeiture. The notice will provide a valuation of the pledge as at the time of this issuance and the fresh indicative valuation will enable the pawner to make an informed decision about whether or not to redeem the pledge. Assoc Prof Fatimah Lateef also inquired about the valuations provided by the pawnbrokers and asked us to consider the use of better descriptors or photographs as valuation details may not adequately identify the items. Before the item is pawned, the pawner will furnish the pledge to the pawnbroker to obtain the valuation. After the item is pawned, the pawnbroker will be required to issue a pawn ticket that contains information, such as a fair description of the pledge, including any manufacturer's serial number or other identifiable mark. This is, therefore, not necessary.”
“Mr Deputy Speaker, I thank Members for their support of the Bill and would like to address the comments and queries that they have raised. Mr Hri Kumar, Mr Yee Jenn Jong and Mrs Lina Chiam had talked about the increase in the number of pawnbroking loans, as well as the number of pawnbrokers. The increase in the value of the loans disbursed by the pawnbroking industry depends on two things: First, the demand for credit; and second, the price of gold, the reason being that most pledges are actually gold items and the price of gold has increased significantly over the past five years. Therefore, we think that there is a strong correlation between the increase in the price of gold and the increase in the value of pawnbroking loans. With the corresponding increase in the total value of the loans, there have been new entrants to the industry and an increase in the number of pawnshops run by chain operators who may be benefiting from economies of scale. The industry, as a whole though, has been law-abiding and there are few complaints about pawnbrokers. We have, nevertheless, retained key provisions to protect consumers which are, as I mentioned earlier, that the interest rate continues to be capped at 1.5% per month and that any breach of this cap is an offence and the minimum redemption period of pledges is set at six months. MinLaw will continue to monitor the industry closely. I move on now to the next point which was raised by Members and, that is, the removal of the auction system. This was raised by Assoc Prof Fatimah Lateef, Mrs Lina Chiam and Mr Page: 62 Hri Kumar. As mentioned in my speech earlier, actually, 95% of pawnbroking loans are redeemed by the pawners. We are really talking about the remaining 5%.”
“This will enhance transparency and enable pawners to make better-informed decisions. Mdm Speaker, the Bill also introduces a new obligation on pawnbrokers to implement adequate programmes and measures to prevent money laundering and counter the financing of terrorism. This is part of Singapore's ongoing efforts to ensure compliance with international standards and is aligned with the practices employed by other financial sectors in Singapore. Under the Bill, the key duties imposed on pawnbrokers include a duty to conduct due diligence checks on customers and a duty to file reports on any suspicious transactions or circumstances. Mdm Speaker, I beg to move. Question proposed. Page: 55”