Jessica Tan Soon Neo
Singapore
“Thank you, Mr Speaker, and I thank the Senior Minister of State for his comprehensive reply. I am also very happy to hear that the Ministry of Manpower (MOM) will continue to review that. I agree with the writer that structurally, there are some challenges, and productivity is important.”
“And as global supply chains re-organise, how are we positioning Singapore as a trusted, stable hub so that businesses continue to choose Singapore, create good jobs and keep our economy strong?”
“Caregiving is not only a financial load. It is a time load and a well-being load. Employers have a role to play as well. Incentives for caregiving friendly workplace policies, such as caregiving leave, flexible hours and phased return-to-work schemes, would encourage more companies to adopt practices that keep caregivers employed and prod…”
“I thank the Senior Minister of State for her reply. The reason I am asking this is because I have seen an increasing trend of appeals with regard to these kinds of issues, especially mould caused by continuous use of air-conditioning by neighbours.”
“Mr Speaker, I do have a clarification for the Senior Minister of State. He says that the AV is not relevant for retirees. I would say it is relevant with regard to CareShield Life premium because the assumption is that people only retire at 67.”
“Yet, we must ensure that Singaporeans understand that CareShield Life does not stand alone. It is complemented by a suite of targeted schemes like MediSave Care, which allows monthly withdrawals for care expenses; the Home Caregiving Grant, which offsets informal caregiving costs; and the ElderFund, which provides discretionary support fo…”
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“Mdm Speaker, as we start the next lap of our journey, our chances of success in the next 50 years will be all the stronger and the journey more enjoyable when we come Page: 49 together as one people – Government, Private Sector and Citizens – where each not only identifies with the goals but participates and builds this inclusive society that we are striving for. Keeping the will of our people alive and strong will determine the success and the future of this nation. We should be bold and willing to compete with the best in the world. Mdm Speaker, I support the Motion.”
“So, apart from the Government's commitment to continuing to uphold good governance with responsible financial management, fair and consistent system of rules and law and a first-class public service, I believe we have entered a new phase of nation building with Our Singapore Conversation (OSC). In his Address, President Tan touched on the fact that the Government will pursue new strategies to achieve our goals and approach to nation building for a better Singapore. OSC is the start of this journey, together with all Singaporeans. The OSC, which began almost two years ago, involved some 46,000 citizens and distilled five broad themes which centred on: (a) providing opportunities for all Singaporeans; (b) building a caring and compassionate society; (c) allowing Singaporeans to have peace of mind on needs, such as affordable healthcare; (d) a kampung spirit; and (e) trust and collaboration between voluntary welfare organisations (VWOs), the Government and the community. The fact that the main thrusts of the President's Address cover these themes is a testament to the inclusion of the voices of citizens. The OSC is not a one-off process; it is a conversation and a conversation that must continue. Singapore is special. As we transform to address the new opportunities and challenges that we face as a people, let us also not forget the values that enabled us to be successful as a nation, the very fabric that makes us Singaporean – one united people regardless of race, language or religion. There are many things about the efficiency and effectiveness of Singapore that make us unique. However, going forward, what will enable us to succeed is an environment of mutual support.”
“I think many will agree that we have achieved much in these areas. I would like to use the example of water supply to illustrate this point. As many of us are aware, early this year we experienced a month of very hot and dry weather. Despite this, I do not know whether Singaporeans realise the importance of this. We did not have to do water rationing like some other countries. And the reason was not just because we were lucky. The reason was we had invested in desalination and NEWater plants which now provide 55% of our country's demands. This has reduced our reliance on imported water and rainfall, giving us a safety measure that did not exist 10 years ago. So, this is an area – and I think in many other policy areas – I will just use this as an example that I think we have to realise we have made quite a bit of progress. But, despite these advancements and improvements, I think many Singaporeans are still expressing concerns over the high cost of living in Singapore. Like many developed cities, rising cost is a challenge and there are good reasons, like higher income and a tight labour market. However, as Warren Fernandez had outlined in his commentary in The Sunday Times yesterday, we must take heed to understand Singaporeans' concerns on rising costs of living and understand – is this sustainable and how is it really impacting Singaporeans and Singapore's competitiveness? With an ageing population, these cost concerns are creating additional anxieties over retirement adequacy and increasing Minimum Sum amounts. Our CPF savings and annuity schemes must be improved to allow Singaporeans to plan better for their financial Page: 48 commitments when young and options to unlock the value of their savings and assets when they are older.”
“This is important to ensure that we prepare Singaporean workers, including PMETs, for the specialist, managerial and leadership roles in the economy. I think an important point in the Addendum that I must stress – and I was very pleased to see – was the partnership that was declared between MOE, MOM, MTI and industry to be able to do this because it is a crucial point; you cannot do it Ministry by Ministry and you Page: 47 need industry's involvement. So, in tandem with economic growth – and I think Mr Liang Eng Hwa stressed this point – economic growth is still necessary because we have to then create jobs to help more PMETs to get jobs. And, as many have pointed out in this House, 40,000 to 45,000 young Singaporeans are expected to enter the workforce every year, and many of them for the next three years, and many of them are PMETs. So, while we develop our people and stay abreast of industry changes and request our people to stay relevant, I do implore companies to also restructure, change the way we do work and more importantly, tap the local workforce. Yes, we have labour constraints; yes, there are challenges in getting foreign workers that you want. But there is a workforce, the Singapore workforce. And I ask that work conditions, the way work is done, that we really look at how we can do that well and tap the Singaporean base. I also implore that SMEs continue to tap MTI's investments over the next three years to help SMEs restructure. I would like to now touch on the quality of life. For many measures, Singapore has achieved much over the last 49 years; whether we talk about medical care, quality of homes, high education and literacy levels for both our men and women, connectivity, infrastructure, low unemployment rates and income levels.”
“Policies to also redistribute resources and level up the lower income, like the Workfare Income Supplement, have been introduced and enhanced over the years. These are to support our lower-income Singaporeans with cash payouts and CPF contributions to supplement their income and retirement savings, but they are also designed to encourage a culture of personal responsibility of work. Given the size of Singapore, to support growth and mobility, our opportunities must also extend beyond our shores. We must ensure that our people and companies are able to take advantage of growth prospects both in Singapore and internationally. Globalisation and technological advances will facilitate this. In the Addenda, it was stressed that with our open and business-friendly environment, our skilled workforce as well as our developed infrastructure, our reputation for good governance, we are well positioned to participate and capitalise on these growth opportunities in Asia. This will provide more opportunities for Singaporeans and also for more PMET jobs albeit in a more competitive global environment. Our founding father Mr S Rajaratnam had said, "Once you see Singapore as a global city, the problem of hinterland becomes unimportant. For a global city, the world is its hinterland." I think it is important we must create these opportunities because, otherwise, mobility and opportunities will be limited for our Singaporeans. MOM's Addendum to the President's Address has also stressed that the Continuing Education and Training (CET) Masterplan 2020 will focus on addressing the challenges of economic restructuring, making the CET system more responsive and relevant to the evolving needs of industries, companies and individuals.”
“In the lower end, if they face so much difficulty like low nutrition, lack of education, poor support system, family trouble and these things got too difficult, they usually fail. At the upper end, too, when they get cushioned from childbirth, where they have baby-proofed nurseries to being financed all the way to young adulthood without any adversity, that does not augur well for them as well. So, what works? It is about a system that helps build character, value and also support. And I think that is what our school system is now trying to do. So, this branding of "character", credibility and sound reputation has been the cornerstone of Singapore's success for the last 49 years and we need to continue to build this "character" in our young. I would like to now touch on the point of opportunities. Like many developed societies, income inequality in Singapore has widened and social mobility has slowed down with development. While there is upward mobility in Singapore, we must recognise that the pace is slower. And key to this is that there must be early intervention and specific support given to the disadvantaged groups so that we can continue to support social mobility of this Page: 46 segment. So, I think it is vital that we push initiatives that support social mobility as early as pre-school to enable those born with less to get a good starting point and allowing many paths for success and access to learning. To ensure that students are not denied these opportunities to progress due to their financial circumstances, I am glad that we continue to have programmes like the MOE Financial Assistance Scheme, Edusave Merit Bursaries as well as the Opportunity Fund.”
“She is a very confident young lady, smiling, saying to me, "I am glad I went back to school, and guess what? I am Page: 45 now in an institution of higher learning doing a course I enjoy, and I think I am going to be able to find a job that I enjoy." The point I am making with this example is that we have to ensure that regardless of what happens, that one point, that one failure in our system does not determine our future. I am glad it did not for Jane and I am glad that the system allowed her to continue. While recognising the importance of education and making sure that we have education for all, I am glad that MOE is continuing to improve our system to allow a distinctive education programme for secondary schools to widen it, to allow students to hone their interest and their talents across diverse fields. While recognising the importance of academic knowledge, MOE has also stressed that we need to go beyond academics and continue on the momentum on values education and also applied learning. This will support our young with skills to succeed in life as we prepare them for jobs and for opportunities that do not even exist today. Paul Tough in his book "How Children Succeed" put forward the assumption of what he called the character hypothesis – the notion that non-cognitive skills, like persistence, self-control, curiosity, conscientiousness, grit and self-confidence, are crucial for children to succeed, as important as intelligence, if not more. And he did a study, not in Singapore but in America, and found that on both ends of the socio spectrum, when children were deprived of adversity, or not given support, institutions of adversity, what happens is that they do not hone those very important skills to build character.”
“I think that is what constructive politics is. Keeping our pathways upwards open for all. I would like to use an example to talk about how we ensure that no single point in our education will wholly determine our future. I would like to use the example of Jane, not her real name, a resident who came to see me to seek help some years ago. She had gotten into trouble with the law and she was appealing for leniency. As I spoke to both Jane and her parents, I realised that Jane had dropped out of secondary school the year before. This prompted me to ask her what she enjoyed doing and what she thought she was good at and she said, "Hey, I enjoy language and I think I am good at writing." Then I asked her, "Do you want to go back to school?" And she said, "Yes, but I am embarrassed because I will be older than my classmates if I go back. This is a year later and people will know that I have got into trouble." Well, I said, "It's okay." Her parents also were surprised because they told me that, with her track record, she was not going to stay in school. But I said, "Let's try", since she was the one who asked for it. And with the help of MOE, I would say that I am glad that we were able to get her back to her secondary school. And, at least I thought, things were settled. Then, recently, while doing my house-to-house visits, I chanced upon Jane's family. I did not recognise her father who was smiling at me. I knew I had met him before but was not quite sure where. And he said to me, "Don't you remember me? Jane is doing quite well; she has completed secondary school and she is now in an institution of higher learning." And I saw Jane herself and I was very pleased because she spoke to me.”
“Mdm Speaker, I rise in support of the Motion of thanks to the President for his Address to Parliament at the Opening of the Second Session of the Twelfth Parliament. The major thrust of his message is a call to all Singaporeans to renew our commitment "to address the concerns and aspirations of our people to build a better future". President Tan's Address also outlined the Government's strategies to continue to build a more inclusive society, a nation of opportunity for all Singaporeans to Page: 44 succeed, regardless of his or her starting point. While very much was covered in President Tan's Address and the Ministries' announcements in the Addenda to the President's Address, I want to highlight a key point – that we must ensure that we do not forget the very "people", that is, Singaporeans, that these strategies set out to benefit. Whether we are talking about job opportunities, the quality of bus services, a cleaner, greener, safer or smart nation, affordable housing and home ownership, healthcare, strengthening of our social safety nets, changes to our education system or even our political discourse and debates – what is important is not only how efficient and effective these strategies are but what they do and mean for the people they are meant to serve. I think it is timely that President Tan reminded us of constructive politics and I take it to mean Singaporeans first. And here, I think it is important for us to point out that when a policy is good, regardless of party, we should say it is good so that we can continue that. But when a policy is not landing so well, we need to listen to the ground, we need to hear our people, we need to have dialogues, we need to have conversations. They matter and we need to hear that and from that, refine the policies.”
“For the Bill to be effective, victims must be aware of their rights and know what procedures to take to report stalkers, workplace and physical harassment and online abusers. I am glad to hear the Minister's assurance that there would be efforts made to simplify the procedures for victims to seek redress. While we recognise that we will not be able to fully legislate for every scenario, this Bill on Protection from Harassment does provide a framework for social norms and what constitutes as acceptable or unacceptable behaviour, both online and offline. It will send a strong signal to deter harassment and bullying. Legislation should deal with the most serious cases. This Bill is comprehensive but, ultimately, we must recognise that self-help is a quicker and more effective redress for the vast majority of cases. Madam, I support the Bill. 5.04 pm”
“Online harassment and bullying is becoming an extensive problem in countries all over the world. Here, Madam, I must declare my interest. I am an employee of Microsoft and I am citing a study that was commissioned by Microsoft. In 2012 Microsoft commissioned a study to understand the pervasiveness of online bullying. Young people from age eight to 17 in 25 countries were polled. The study showed Singapore to be one of the six countries where online bullying was particularly pervasive. For Singapore, 46% of youth admitted to having bullied someone online, at least at one time or another. As this Bill is meant to include cyber bullying of children, can the Minister help clarify how we will deal with a scenario where the bully is a child? Based on the findings from the study that I just cited, this scenario is very likely to happen as we see "playground bullying" migrate online. I do, however, wonder how effective the remedies will be for a victim whose harasser is out of the country and potentially will not submit to the jurisdiction of the courts of Singapore. Moreover, such a victim would face further difficulty of not being able to identify or locate the online harasser hiding behind a screen Page: 114 or a keyboard. Having coordinated activities amongst agencies in different jurisdictions will play an essential element that must be considered in the implementation of this law. To combat online harassment, while legislation is needed, I firmly believe that education and preventive measures play an important role as this makes the most efficient contribution to the end-goal of changing user behaviours. This is the long-term protection against harassment for users online.”
“This is certainly welcomed as it allows these workers safer work environments as they provide essential services. The Bill provides a range of self-help measures, civil remedies and criminal sanctions from harassment. With this Bill, the existing penalties for harassment offences will be increased to include a fine and/or imprisonment to reflect the seriousness. Offenders can also be ordered to seek treatment at the Institute of Mental Health. There will also be enhanced penalties provided for repeat offenders. The Court will also be empowered to make community orders in Page: 113 appropriate cases. 5.00 pm The offences will also apply to acts committed outside Singapore as long as the victim is in Singapore and the perpetrator knew or should have known that when he committed the act. This extraterritorial reach recognises the online and global nature of communication today. The Internet has changed the way we work, interact, learn, play and even how our children grow. It has also created online communities and altered the extent and reach of communication. Given the speed, expanse and scale of the impact and use of online communication, just as in the physical world, we must ensure that we protect vulnerable members of society online. These include children, the elderly and those with special needs. Online harassment can involve a range from general "meanness", for example, teasing/name calling, to bullying and negative behaviour with clear intentions to hurt. Those who experience online bullying can suffer damaging mental and physical health consequences. Research from the Cyberbullying Research Centre revealed a link between cyberbullying and low self-esteem, family and academic problems, school violence and delinquent behaviour.”
“Mdm Speaker, I rise in support of the Bill. This Bill is, indeed, welcome as it seeks to create safer environments both in the physical and online worlds. It includes aspects of harassment faced by society today at the workplace, in our community and online. Acts which are threatening, abusive, insulting, causing alarm, distress and fear to victims are harassment. Stalking is also included as an offence in this Bill. While turning to the law should not be the first response to addressing acts of harassment, laws do set the tone of what is acceptable or unacceptable behaviour in society. Recognising the seriousness of the problem, it is important that those that are harassed have protection. The sad reality is that harassment is real. I have come across several cases where residents in my constituency have been harassed. These situations caused much anxiety and distress to the victims and/or their families. In one incident, a resident who was stalked could not get any help to prevent the perpetrator from harassing her despite her reporting the matter. The perpetrator was loitering for weeks outside her gate and verbally abusing her. But as he did not commit any criminal act, there were no grounds for the Police to take any action against him. Madam, through laws that are thoughtfully written to balance safety, freedom of speech and expression, governments play an important role in helping to fight harassment and threats both in the physical and the online worlds. The Bill does try to strike a balance on the extent to which a law should intervene and the extent to which we should leave the situation to self-help remedies. The Bill expands protection to include workers who deliver public healthcare and transport services.”
“This will help businesses not only from a cost perspective but give access to capability that may not be viable for SMEs to build on their own given their size of operations and will relieve them from worrying about keeping up with technology. Cloud computing gives companies the ability to operate without having to manage the high upfront costs and investments. This gives flexibility, scale and Page: 35 cost savings. To ensure that companies can best leverage the benefits of cloud computing, there is one key concern that needs to be addressed. That is with regard to ownership and protection of their data. Can MCI share what measures are being taken to create a trusted environment for the cloud that meets the needs of businesses for data protection, privacy and ownership, while meeting the needs of regulation on how data is managed? Promoting Singapore Music”
“Madam, I would like to declare my interest as I work in this sector. One of the major thrust in this year's Budget is to support companies in restructuring and upgrading to catalyse the adoption of ICT, especially for SMEs. 12.45 pm Key to success for the usage of ICT in business is not only funding though. The successful deployment and adoption of ICT solutions will determine the impact. This House has debated over the last week on the challenges of business restructuring and how it takes time. This is the same when companies introduce ICT into their business. To achieve the benefits of doing work faster and more effectively with the introduction of technology, in many instances require changes in the way work is done. Otherwise, it is just the automation of an existing process which may not yield much benefits. To drive this change, successful adoption and deployment of ICT, business will require skills and expertise, which many do not have, to enable them to understand how to better leverage the solutions for their business. So, apart from the funding support, can MCI share what measures or support will be in place to assist SMEs in driving adoption and deployment of ICT solutions? During the Budget debate as well as the COS discussions last week, we had much discussion about the aggregation of demand for common shared services, allowing consolidation of operations and pooling of resources. This will allow businesses in the same industry, especially SMEs, to benefit from lower costs. Can MCI share if there will be measures to support the concept of shared services for SMEs, for example, providing shared services for common functions that businesses require like accounting, HR and financial management services for SMEs?”
“With the Retirement and Re-employment Act (RRA), the statutory minimum retirement age is now 62. Employers are also required to offer re-employment to eligible employees who turn 62, up to the age of 65. This year's Budget has also announced an increase in CPF contribution to Medisave and an increase in CPF contribution for older workers. With Singaporeans working longer and retiring later, marrying later, and more are single, should there be a refinement to the age requirement for CPF funds transfer to the Retirement Account at the age of 55 to meet the Minimum Sum? If individuals at age 55 are still servicing their housing loan, once the funds are transferred from the Ordinary Account to the Retirement Account to meet the Minimum Sum requirements, the individual may not have much funds left in his OA to continue to service his housing loan and his Home Protection Scheme (HPS) or Dependants' Protection Scheme (DPS) insurance premiums. This would mean that they would have to service this through cash and, in some cases, as Mr Seng Han Thong had referred earlier, the low-wage workers do have challenges meeting this. I have had several cases of residents who come to see me at MPS where they continue to work and they are still making contributions to the CPF. And once their funds are transferred at the age of 55, they have problems meeting their monthly mortgage payments. Page: 67 I do understand the logic for the fund transfer to meet the Minimum Sum to ensure retirement adequacy. But at the same time, I look at the cash flow implications for these individuals who because of that age change, but they are still contributing to CPF, are now facing challenges in their day-to-day servicing of their loans, as well as meeting their daily requirements.”
“What are we doing to ensure that our workforce is able to adapt to these changing environments? Skills like critical thinking, problem solving, collaboration, communication: these are going to be very core for our workers to be successful. Page: 24 Change is not a bad thing. In fact, change in this instance is good because we are talking about better jobs, better quality and a better work environment for our workers. But in order for them to succeed, they need to be able to adapt. I would like to ask MOM what is being done to help our workers adapt to these changes as we continue to train them with the specific skills required for future jobs. The Manpower Challenge”
“Madam, a key assumption of Singapore's success with our restructuring and transformation is premised on growth. And Mr Lim Hng Kiang yesterday in our COS discussions talked about the growth sectors that we are looking at and what is being done. I have spoken on the point of access to qualified manpower to support this growth. This is an area that I am concerned about as I feel that while we are driving growth opportunities and creating these quality jobs, how do we ensure that we also have the right talent to be able to fill and support these jobs? Given the constraints of our labour market, the core of this talent base has to be a Singapore core. Access to quality manpower is a key determinant for the businesses to locate their operations here, as well as to encourage our companies in Singapore to continue to locate their operations here, which then, in turn, creates our ability to build those jobs, improve wages and continue to have the quality jobs. One of the areas I also touched on in my Budget speech was about innovation and our ability to use technology as well. What we have noticed is that there has been a drop in the enrolment of students in engineering, the sciences and IT as well. This is an area that needs to be addressed. I would like to ask what measures are being taken to ensure that we continue to have the talent going into these areas so that we can then build on the skills. I had also mentioned in my Budget speech that technology and globalisation will affect the way that we work while they present new opportunities as well as challenges. Many of the future jobs do not even exist today. What this means is that our workers have to be agile. What are we doing to help the workforce as we talk about skills building is more than just training?”
“Mdm Chair, I would like to thank the Senior Minister of State Mrs Josephine Teo for taking our questions and considering all the cuts, because I went through the list. She had addressed all the cuts. Thank you very much and, with that, I beg leave to withdraw my amendment. [(proc text) Amendment, by leave, withdrawn. (proc text)] [(proc text) The sum of $677,424,100 for Head M ordered to stand part of the Main Estimates. (proc text)] Page: 21 [(proc text) The sum of $157,022,500 for Head M ordered to stand part of the Development Estimates. (proc text)]”
“Other governments, like the New South Wales government, too, has a government procurement small and medium enterprise policy framework, which is a government procurement reform commitment that aims to maximise opportunities for SMEs to participate in government procurement. SPRING, too, I have realised, has published a Government procurement guide to help SMEs better understand Government procurement rules, so that they can take part and bid for business opportunities and projects required by Government departments. There is a perception, however, that SMEs in Singapore may not have equal opportunity in accessing Government procurement and tend to be disadvantaged in securing Government contracts. Are these concerns valid? Can MOF share what the percentage of Government contracts were awarded to SMEs in 2013?”
“How can the Government be assured that beyond process and compliance, the right and best decisions are made for effective solutions to deliver public services that meet the needs of our people? If procurement practices are tightened to the extreme, it could be counter-productive as it would discourage any deviation or justification for procurement decisions, even if they are the right decisions, as they may be construed as procurement violations. Can MOF share how the Government is also continuing to develop deep skills, so that it is not only able to deliver public services to meet current needs, but also continues to build capability and deepen expertise to address shifting and new needs? Inclusive Growth My next cut on inclusive growth. As we discuss the transformation of SMEs and capability building, one of the ways for local SMEs to develop is to use Government procurement as a strategy. Government procurement can play an important role by awarding contracts and providing recognition to SMEs. This will allow them to build the track record which is so often required as a pre-requisite in bids for larger projects, both locally and internationally. Several countries have measures for SME access to government procurement. For example, the UK Efficiency and Reform Group (ERG), whose Page: 167 objective is to achieve efficient and effective buying and management of government goods and services, has set a goal for deliberate focus on ensuring that SMEs have access to government contract opportunities, making it easier for them to do business with government, and that 25% of government spend, either directly or in supply chains, goes to SMEs by 2015. This, as I understand it, from all the reports, is still seeing challenges in its implementation.”
“Mr Chairman, I beg to move, "That the total sum to be allocated for Head M of the Estimates be reduced by $100". One of the fundamental ways that the Government is connected to citizens is through the public services it provides. How does the Government know if its citizens are happy with the quality and effectiveness of services provided? How are sentiments tracked? But more than that, how does it know that the services provided are reaching out to the people that most need it? Today, the Government has done well to set up touch points, for example, counter services, hotlines, and even online access where citizens can connect Page: 166 and seek services for help. Today's society is much more diverse. With the changes in our society, how is the Government keeping up with these changes and staying connected? How is the Government reaching out to citizens in need? With the pervasiveness of technology and adoption of social media, there is opportunity for the Government to enhance engagement, efficiency and timeliness of service delivery to citizens. With mobility and social media, there is opportunity to allow citizens to have a voice and for the Government to reach out. How will the Government leverage such new approaches? For example, the use of information on traffic conditions via data capture from cameras, and using data analytics allow the prediction of traffic conditions. This will allow the agency to proactively dispatch officers to the area, if required, to redirect traffic or lend support to motorists to address situations on the ground. Let me now touch on the matter of procurement. With the past lapses in Government procurement, there has been focus to strengthen the procurement practices and compliance. What is the progress of this effort?”
“Mr Chairman, can I take my two cuts together?”
“I would like to thank Minister Lim Hng Kiang, Second Minister Mr S Iswaran, Senior Minister of State Mr Lee Yi Shyan as well as Minister of State Mr Teo Ser Luck for sharing with us strategies, as well as going through the various schemes. Through that, we all realise that it is a journey, as well as it is extremely complex. But I do want to say that it is good that there is a recognition that it is not easy, the restructuring is not easy, as well as that we still have to address the cost issues and continue to monitor that, and work together with our companies in Singapore. With that, Mr Chairman, I beg leave to withdraw my amendment. [(proc text) Amendment, by leave, withdrawn. (proc text)] [(proc text) The sum of $707,862,600 for Head V ordered to stand part of the Main Estimates. (proc text)] [(proc text) The sum of $3,836,981,900 for Head V ordered to stand part of the Development Estimates. (proc text)]”
“There have been concerns on the increase in household debts in Singapore and the level of consumer leverage. What is MTI's assessment of the risk to the economic outlook of Singapore in 2014? Trans-Pacific Partnership FTA”
“Apart from manpower costs, land and rentals are also important contributors to business costs. While I agree that we should allow the market forces of demand and supply to determine rental, I do feel that we need to ensure that there are measures to control speculative demand of space which contributes to higher rental. Can MTI share what measures are being taken to ensure that Singapore remains attractive for doing business? What is MTI doing to support companies in addressing the high costs of doing business as they restructure to improve productivity and innovate to stay competitive? With our increasing cost of doing business in Singapore and competition from regional markets, can Singapore remain an attractive location for MNCs and for companies to leverage Singapore as a hub for their business in Asia? Macroeconomic Outlook Madam, my third cut on macroeconomic outlook. There is cautious optimism as the global economy seems to be improving in 2014, supported by the recovery of the US and Eurozone economies, but the uncertainties in the global macro economy still remain. The tightening of the US monetary policy, political uncertainty and emerging market challenges do pose downside risks that could derail the recovery. So, against this backdrop, our companies in Singapore and our economy are restructuring to improve productivity. While we see sectors like manufacturing and wholesale continuing to improve to support growth, our tight labour market and rising wages could impact our ability for businesses to scale and to grow in the short term. Page: 102 What is MTI's assessment of the opportunities in the ASEAN region and the role that Singapore and Singapore businesses can play? How does MTI expect the Singapore economy to perform in 2014?”
“The services sector is also the biggest sector for our economy, accounting for 72% of GDP. So, within services, the main segments are wholesale and retail trade, business services, finance and insurance, transport and storage, and information and communications. What is being done to promote the growth of these service sectors in Singapore? With the increasing competition, which are the service clusters that have the most growth potential? What can we do to support Singapore-based companies capitalise and leverage these opportunities? How are we building the relevant skills to support these growth opportunities? Cost of Business Madam, my second cut on cost of business. While Singapore continues to be a prime investment and business hub, there is increasing concern with the high cost of doing business here. Given our manpower constraints, scarcity of land and our focus to increase real incomes of Singaporeans, we must recognise that Singapore is not a low-cost market and will never be. We, Page: 101 therefore, have to ensure that Singapore can continue to deliver real value to differentiate and justify the cost. The continued focus on restructuring and productivity in this year's Budget highlights the importance of our companies being able to do so. Our focus has been to raise real wages, as well as to drive measures to ensure social mobility and to drive for a fairer and more equitable society. This would mean that we will not be low-cost. While Singapore is not and will not be a low-cost city, we have to recognise that we cannot allow costs to escalate to a point that we out-price ourselves and become uncompetitive. We must continue to differentiate and deliver value to remain attractive.”
“Another employee left after a month because his girlfriend said that she did not like the way he smelled and prefer him to take another job, and he went for a lower paying job. Page: 100 Can Singapore continue to differentiate itself with the quality of our infrastructure, our reputation for a stable political climate, flexible business models, robust intellectual property protection and management regime? Will we continue to be able to justify the premium in cost given our branding, reputation for quality and reliability? Are there new growth opportunities in manufacturing that we can leverage these strengths for competitive advantage? Apart from incentive schemes, what specific development activity is the Government driving to strengthen and transform Singapore's manufacturing sector for continued competitive advantage? What are the areas of new capability, investments in research that Singapore has developed in the manufacturing sector to enable us to stay competitive? Based on the Global Competitive Index 2013/2014, Singapore remains the second most competitive market and is amongst the three Asian economies in the top 10 markets. We continue to see the top 10 markets dominated by a number of European countries, with Switzerland at the top. An interesting point to note is that strengths in innovation and a strong competitive framework are strengths that the majority of these top 10 markets have in common. Switzerland continues to maintain its top position and stands out for its innovation, quality of its labour and sophistication of its business sector. So, going forward, how we address social and environmental concerns will also be important for Singapore to differentiate our competitiveness and our ability to stay competitive.”
“Madam, I beg to move, "That the total sum to be allocated for Head V of the Estimates be reduced by $100". Madam, the underlying assumption for sustainable and quality growth is that Singapore is able to compete, continue to drive growth opportunities and to create quality jobs. Manufacturing continues to be an important contributor to Singapore's economy. With the changing landscape and increased competition from regional markets, and the rise of manufacturing hubs in China and Vietnam, can Singapore's manufacturing sectors stay competitive? What measures are we driving to ensure that manufacturers in Singapore can contribute to and thrive amidst this condition and remain competitive? With our manpower constraints, scarcity of land and cost of energy, can manufacturers in Singapore address these constraints to be able to build the capability and to enable them to address growth opportunities? I recently spoke to several SME manufacturers who informed me that they were facing challenges in growing their businesses, given the constraints they face, especially with regard to having the right skills to address the opportunities. They have invested in restructuring their business, in making investments in process improvements and technology to streamline their operations and improve productivity. However, they continued to be challenged in getting the right manpower for the business and have to hold back their growth and expansion. While many have advertised and work with agencies to get locals for the jobs, they are still not getting many Singaporeans willing to take on the roles. A local manufacturer informed me that he had five employees who had accepted the job but did not turn up on the first day of the job.”
“Okay. Government, Community, Employers and Consumers of Services. This change in social norms, as the Deputy Prime Minister called it, will, ultimately, determine whether transformation will succeed. Madam, I support the Budget. Page: 26 12.45 pm”
“While not able to guarantee equal outcomes, the focus is to ensure that all Singaporeans are given opportunities to improve their lives. On the business front, the continued effort on restructuring is further sharpened, founded on growth, with a focus on supporting value creation and skills to ensure sustainability. On the economic front, we recognise that an economy that continues to grow is fundamental to ensuring an inclusive society, providing quality job opportunities. An area that I feel requires further emphasis is building the skills for the future. While Budget 2014 continues the emphasis on restructuring for the future, at the same time, it is about investing in the kind of society we want for Singapore. Our people are at the centre of this Budget. What will determine success is how we land these initiatives to benefit those they are intended for. Each of us, too, has our part to play in this restructuring —”
“While many welcome the Pioneer Generation Package, there are concerns on whether the benefits will reach all those in this generation who need it. Questions were raised on how the pioneers will be notified, what will be done to ensure they understand what they will get depending on which age group they fall into. For the CHAS benefits, as all pioneers will qualify for enhanced CHAS, will they be automatically notified so that there will be no need for application which is the current process that CHAS requires today. We will need to ensure that there are also appropriate outreach programmes to connect with pioneers to explain the benefits that they will receive in this package. Page: 25 I am not sure if it was an intended effect of the Pioneer Generation Package or the increased parent relief and handicapped parent relief for those taking care of their parents and grandparents who are staying with them, whether it was about strengthening of family relationships and filial piety. But I think, to some extent, the benefits provided to the pioneers and the enhancements to income tax relief give greater encouragement and recognition to individuals supporting their parents and grandparents and thus provide peace of mind and relief to family members who are taking care of them. This change allows the sharing of parents' relief. While not a large one, it does send a signal that it recognises that the care for parents is a shared responsibility amongst family members. Mdm Speaker, this year's Budget is an inclusive Budget on all counts. On the social front, the initiatives on social mobility are targeted early to ensure that they create and level up opportunities for all and strengthen family ties.”
“So, while we continue to enhance healthcare affordability and sustainability with the various schemes announced in this year's Budget, I must ask that we take a more holistic view to healthcare to promoting healthy living because, with the increased focus on just acute care and providing capacity there, that is not going to be enough. We need to take an integrated approach to quality and availability of healthcare at all levels to strengthen the healthcare system for having effective networks of support and quality from home base, primary, step-down, intermediate, long-term care to drive the right healthcare outcomes and to manage escalating healthcare cost. I will not go into the specifics of the initiatives as I believe other Members in this House will do so. It will be remiss of me not to mention the Pioneer Generation Package which is the highlight of this year's Budget and has been the subject of much discussion in many forums, coffee shops, homes, offices, etc. This is a special Budget, and it is a way for honouring this unique generation of Singaporeans who built up this country and enabled many like you and I, to benefit from the Singapore that we know of today. I am glad that the Pioneer Generation Package does not have an income criterion and all the cohort will qualify for the same benefits as this is a recognition for their contributions. That the scheme is also fully provided for in this Budget is the prudent and right thing to do to ensure that we assure the Pioneers of the benefits that they will get, and that it does not burden subsequent generations. This will ensure that future budgets can focus on the needs and the time for all Singaporeans.”
“While we must recognise that this does increase business cost, especially for smaller companies, it is the right thing to do for employees as it will enable them to save better for their healthcare and retirement needs. This will indirectly benefit employers in the longer term. Employers of older workers will also get help through a one-year increase in the Special Employment Credit Scheme to make the transition easier. Let me now touch on the other major pillar of the Budget, which is targeted at building a Fair and Equitable Society. As Deputy Prime Minister Tharman has said in his Budget speech, this Budget takes forward the major strategies to build a fair and equitable society that Prime Minister spoke about at the National Day Rally. Budget 2014 continues to build on the effort to promote social mobility and accessibility from an early age for all, including children with special needs. There are significant steps taken to enhance healthcare affordability and retirement adequacy for Singaporeans, which is the concern of many. Page: 24 Recognising the challenges with increasing cost of living, it is important to note that there are deliberate efforts in this Budget to enhance the schemes to benefit more in the middle-income households by strengthening opportunities for students both at preschool and at the institutions of higher learning (IHLs), and additional support for households and handicapped relief. Healthcare affordability is a concern for all Singaporeans.”
“A very interesting aspect of this was also the recognition that high-speed connection was necessary and the subsidies of fibre broadband to enable companies to take advantage of cloud computing and data analytics solutions – which is a big plus for SMEs to be able Page: 23 to benefit from. I must say that the IPG incentives are generous and definitely welcomed by both businesses and the ICT sector. And here, I must declare my interest in the sector. They are, however, not sufficient. SMEs will need access to talent and support to understand and test the solutions, to implement and manage the change and to leverage the technologies to benefit these businesses. There is a lot change of management required, and so, I think the capacity and the capability that is built to support that will be an equally important investment that has to be made. There is a clear message in the Budget that the focus is on raising the game on the restructuring of companies to focus on quality growth and skills. The various schemes in the five thrusts encourage innovation, collaboration and leverage in the sector for productivity, leverage on technology for effectiveness and competitiveness, supporting expansion and internationalisation of companies for growth. For construction, the message again is clear. It is on skilled workers and retention of skilled workers and to reduce the reliance on low skilled workers. As mentioned, the increase in employers' CPF contributions will have an impact on business costs and profitability of firms. Although the employers will receive a Temporary Employment Credit to offset 0.5% of the increase of wages, there are concerns that this might discourage the hiring of older workers.”
“The creation of new industrial spaces that cluster companies within the same industry, I believe will benefit SMEs with lower cost through the aggregation of demand for common shared services, allowing consolidation of operations and pooling of resources. The example of the Seletar Aviation Hub shows how SMEs can lower their capital investments as they benefit from shared facilities. The Aviation Hub is an aerospace park that has infrastructure dedicated to the sector, which includes component manufacturing and MRO facility, ready-built factory units, large floor space, column-free production areas with adequate ceiling and height. These allow SMEs to therefore come out with less upfront investment cost. The introduction of the PIC+ scheme for SMEs is a big tax change in the Budget and sends a signal that the Government will provide additional support to SMEs who want and can make substantial investments to restructure their businesses. This is targeted at SMEs with turnover of $100 million and above and what this allows qualifying SMEs is an expenditure cap of $600,000 for each qualifying category instead of the current $400,000 cap for PIC. The introduction of the ICT for Productivity and Growth (IPG) Programme costing the Government over $500 million recognises the important lever that technology can provide to SMEs to be more productive and competitive. The IPG consists of three schemes of subsidising the cost of scaling the number of SMEs adopting proven sector solutions at about 70% of that cost. It also encourages companies to pilot emerging solutions by supporting 80% of the qualifying costs, and subsidising businesses.”
“However, based on IRAS' Annual Report for the Financial Year 2012/2013, while we have seen an increase of companies – 37% of active companies – benefiting from the PIC scheme, up from the 33% in 2011, 62% of the claims were for purchase or lease of automation machines; 35% of the claims were for the training of employees, while the remaining 3% were for other qualifying activities. The point is that businesses need to start developing and acquiring IP, design innovation, new ideas and investment in R&D to move up the value chain and differentiate ourselves. We need to look at how to simplify these various schemes and ensuring that SMEs then use these qualifying categories to help them acquire new capabilities to strengthen themselves. Understanding the long cycle of R&D and the extension of additional tax deduction for R&D for another 10 years is also welcomed. The question then is, will this encourage more companies to invest in R&D and drive innovation? Feedback from various channels and forums in 2013 did highlight that SMEs did face constraints in scaling their businesses and expanding because of the challenges they had facing the tightening of the labour market. A worrying trend amongst SMEs polled in the annual SME survey conducted by DP Singapore released late last year, found that fewer of them were doing businesses outside of Singapore – 46% have reliance on work Page: 22 outside of Singapore compared to 56% the year before. This is worrying because what it means is that while they are dealing with the challenges and the restructuring changes in our economy, they are not taking advantage of the opportunities. With rising costs, and for companies to stay competitive, restructuring must be undertaken, and businesses must grow to sustain the longer-term growth.”
“What it means is that we are preparing our students and a workforce for jobs that do not exist today. In the changing economy, there is a recognition amongst educators that while we continue to develop core knowledge and understanding in our students, students have to learn essential skills, such as critical thinking, problem solving, communication and collaboration, to be successful. With technology and the connectivity that exist across many countries, work can be done in different parts of the world for implementation in another country. As Thomas Friedman said in his book "The World is Flat", work can be chopped up in one part of the world, one part sent to Boston, another part to Bangalore, another part to Beijing and then implemented, perhaps, in Page: 21 Singapore. This allows work, especially knowledge or creative work, to be done anywhere and delivered anywhere. It could be disaggregated, delivered, distributed, produced and put back together again. Therefore, the point I am trying to make is that the availability of talent and expertise will make a market attractive, as well as the ability of that talent to communicate, collaborate across markets, to stay relevant will be crucial. Branding and quality of products and services will be a differentiator. For business, the message of the "permanent reality of the tight labour market" could not have been made clearer by Deputy Prime Minister Tharman in his speech. This fact is what many businesses have come to accept, and many have reduced their dependency on lower-skilled foreign labour. The extension the PIC scheme for another three years till 2018 recognises that restructuring does take time.”
“If our companies in Singapore do not increase greater productivity and value, can we continue to Page: 20 justify our high cost? Will Singapore then become uncompetitive? Is Singapore able to take advantage of growth opportunities both locally and globally? To drive growth, talent is necessary. In recognition of the constraints of our talent pool, we must ensure that the talent base is sustained by the Singapore core. While we are taking measures to ensure that there are quality jobs for Singaporeans, we must also ensure that our Singapore talents are skilled, stay relevant and are able to fill these quality jobs. In terms of the talent base, to continue to drive technology and innovation, there needs to be a concerted effort to attract talent in core skill sets, such as engineering and IT. While we need a diversity of talent, it is observed that enrolment and popularity of IT, Engineering and the Sciences at university and tertiary institutions are declining. For example, university enrolment in Singapore, against an overall 24% increase of students from 2006 to 2012, has dropped to 7% for Engineering Sciences. For Business Administration, enrolment has increased – 27% for the same period. With advances in technology and globalisation, technology is changing the way we live, we play, we connect, we communicate, and we do our work. Today, over 2.4 billion people use the Internet and a few hundred million are on Facebook. While we focus on innovation in our businesses, we must give equal attention to ensuring that we develop our talent base to be able to participate in this change. How are we preparing our students to participate in the global economy and to succeed? According to a Forbes article, the top 10 jobs in 2013 did not exist 10 years ago.”
“While many may not fully agree, I feel that Budget 2014 did strike a delicate balance between supporting Quality Growth while addressing the challenge of having fewer workers, an ageing population and economic uncertainties to enable a Fair and Equitable Society where we seek for equal opportunities for all starting from an early age. I will speak on three areas: the economy, business and the social aspects of the Budget. Staying the course on restructuring does provide certainty to businesses, recognising that this is a multi-year journey and one that is not easy for companies to achieve, given the twin constraints that businesses in Singapore face: (a) the tightening labour market; and (b) high business cost. The underlying assumption, therefore, in order to support this continued investment in restructuring, is that our economy and the businesses must continue to show strong growth. Contrary to some views that this is a social Budget, I must say that there are a lot of initiatives to support businesses in this Budget and it will require corresponding investments to fund them. There is cautious optimism in our global economy and that it is recovering from the economic crisis. However, the tightening US monetary policy, political uncertainties and emerging market challenges do pose downside risks. While there are risks, many do not see a sharp slowdown in the global economy and MTI expects Singapore's economy to grow 2% to 4% in 2014. While we recognise that Singapore will remain high cost given our tight labour market, land constraints and our focus to increase real income of Singaporeans, we therefore have a need to justify this high cost. Hence, the need to raise productivity and to drive innovation.”
“For businesses, I believe that there was some relief as there were no further measures announced to reduce foreign talent. The focus is, indeed, on driving companies, especially SMEs, to accelerate productivity through the employment of technology, innovation and skilled employees, while recognising the need to restructure and that it takes time and, hence, the extension of several schemes, including PIC. A clear message of the Budget is the increased focus on driving productivity and growth and that the Government will do more to support those who did embark on improving productivity rather than assisting with cost relief measures. The increase in CPF contributions by 1% for all workers will, in fact, increase cost for companies. The message is clear that, together with the additional increase in contribution for older workers, it is a call for employers to play their part to help workers with their health and retirement needs. An important point that Deputy Prime Minister Tharman made in his Budget speech was a call to all Singaporeans and not just companies to play our part in this restructuring. He made the point that "transforming our economy is not just about technology, Page: 19 and productivity is not ultimately about the dollars and cents of upgrading. It also means changing our social norms". This includes a workplace culture that values employees' views and contributions, a culture of mastery and pride of the job and driving excellence and, most importantly, a culture of changing our habits and expectations on the services that we receive as consumers. The changes in social norms as, Deputy Prime Minister Tharman has called them, will ultimately determine whether the transformation and the desired impact are achieved.”
“Mdm Speaker, thank you for allowing me to participate in the Budget Debate. Madam, the reactions to this year's Budget was one that I find a little hard to categorise as the reactions I got from the interactions with both residents and the business community were fairly mixed. While there is a lot in this year's Budget, I was surprised at the lack of questions except for those around the Pioneer Generation Package and healthcare cost. Could this be due to the Page: 18 distractions or the excitement around the Pioneer Generation Package or that the Budget's continued focus on restructuring and inclusive growth was expected? The underlying themes of Budget 2014 continues the focus which started four years ago, on restructuring of our economy for growth; and building a more inclusive society that is fair and equitable with the aim of levelling up our society and mitigating inequalities. While the principle of the approach to inclusive growth is premised on a culture of personal responsibility, there is also an emphasis on the need for collective responsibility of the Government and community to build a stronger community and a stronger Singapore. The Prime Minister, in his National Day Rally speech, spoke about the need for the Government to do more but also called out for the community, too, to do more to complement and support the efforts of individuals. I believe that this subtle but important change is one of the reasons that is drawing different reactions from the ground and segments of the community. Some opinioned that this is a Social Budget as there is a heavy focus on social objectives, including the focus on supporting the elderly and the Pioneer Generation. Others have said that this is an election budget.”
“To qualify for the PIC Bonus, the conditions for the payment of PIC bonus for each year of assessment are: (a) the person must have incurred a minimum of $5,000 of qualifying expenditure in the basis year for that expenditure; (b) he is carrying on a trade or business during the time the Comptroller is considering his case for the bonus; and (c) he must have made contributions to CPF for at least three local employees based on the payroll for the last month of the basis period or such other month as determined by the Comptroller. The challenge facing SMEs, especially the very small SMEs, continues to be manpower constraints and attracting locals to certain jobs. Hence, the need to invest in productivity improvements and innovation for these SMEs is crucial. I would ask that we review the condition for making CPF contributions for a least three local employees as a qualifying criteria for the PIC Bonus. While small SMEs can still qualify for PIC tax deductions and allowances under PIC, the PIC Bonus for incurring a minimum qualifying expenditure with a dollar-for-dollar matching would definitely be a great help for small SMEs to invest in productivity improvements and innovation to reduce their dependency on Page: 57 manpower. The fact that the PIC cash payout is paid out on a quarterly basis is also another plus point for small SMEs. The changes in the Bill also talks about the enhancements to the PIC Scheme to include Intellectual Property (IP) in-licensing. This will help businesses that license IP rights instead of acquiring the IP for innovation or productivity improvements incurred for Year of Assessment 2013 to 2015. These would definitely, again, help the very small industries and, therefore, a very welcome change. With that, I support the Bill. 3.37 pm”
“I was heartened to hear the Senior Minister of State touch on the point that every EOI request will be scrutinised and not indiscriminately adhered to and that care will be taken to ensure that that is given the right attention. We must recognise that while it is important that we continue to maintain strict policies to protect confidentiality of client information, it cannot be a reason for the flow of illicit funds. Confidentiality cannot also be a reason to stop cross-border exchange of information for crime investigation. For Singapore to remain a leading and reliable financial centre, we must have a clean regime that protects our financial institutions and the Page: 56 legitimate monies and eliminates illegal funds. These amendments will send a strong clear signal that Singapore sees our financial integrity as crucial to uphold our reputation as a leading wealth management centre. Let me now touch on some of the changes with regard to PIC. I will not go into details of debating the PIC itself because those have been debated earlier. But I do want to touch on the new section 371A which deals with the payment of cash amounts known as the PIC bonus of up to $15,000 over the three years of assessment from 2013 to 2015. This is meant to help businesses defray their operating costs, and encourage them to continue investing in productivity improvements and innovation based on certain expenditures which qualify for certain deductions or allowances under the Act. This will be welcomed by businesses, especially as they deal with the necessary business transformation required to address current business competitiveness, costs and manpower constraints.”
“Mdm Speaker, thank you for allowing me to speak on the Income Tax (Amendment) Bill 2013. I support the tax changes in the Bill and would like to touch on two areas of the changes in the Bill: first, the refinement and amendments to existing tax policies and administration of the Exchange of Information (EOI) regime; and, secondly, the changes to the Productivity and Innovation Credit (PIC) On the EOI amendments. First, let me touch on our market here, our openness and our efficient business model have helped Singapore become a leading global wealth management centre. The Bill includes refinements and amendments to existing tax policies and administration of the exchange of information regime to safeguard and reinforce our reputation as a fast-growing financial services sector. The changes in the Bill will enable the steps to be taken to strengthen the EOI framework for international cooperation to fight against the cross-border tax evasions. These changes will increase, as the Senior Minister of State has indicated, the number of jurisdictions from 41 to 83 that Singapore will be able to exchange information with. It will also further streamline the administration of EOI under the standard and help ease the compliance burden for financial institutions in Singapore with the Foreign Account Tax Compliance Act (FATCA). The amendments to EOI will also require financial institutions operating in Singapore to have greater disclosure requirements and monitoring obligations. With this, of course, there may be concerns on the impact of confidentiality and the banking secrecy standards.”
“I do, however, believe that there is merit to think about the perspective of commitment to Singapore through the basics of Singapore's home ownership fundamentals and the treatment of tax on homes.”
“As we know, over 80% of Singaporeans live in public housing, with about 95% owning their HDB flats, that is, they are owner-occupied. As the Prime Minister said in his recent National Day Rally Speech, I quote, "Housing has and will continue to be an important way to share the fruits of our progress with all Singaporeans and to level up the poor. The HDB programme is not just about the roof over our heads. It is also a valuable nest egg. But it is not just a valuable nest egg. It is also a home, a home where we sink roots, where we raise families, where we build ties, friendships, emotional ties with our fellow Singaporeans." A person living in his/her house – HDB or private – is really not fully realising the value of the asset. We have an ageing population and a growing middle class that has worked hard over the years to own their own homes, public or private. Many are living in them. As they retire or slow down in their career, they increasingly depend on their savings. And for those who do live in them, while, yes, they do have wealth, that is, their homes, they are not really fully realising the value of their wealth unless they sell their homes. For our seniors, we do want them to be able to continue to live in the community and Page: 49 environment that they are familiar with and where they have built their bonds. For those who have investments and own other residential properties, they should continue to be taxed on them. I support the amendments in the Bill as this would be moving in the right direction and I am not asking for the consideration to happen now as it has significant impact on both tax revenue and the programmes that the revenue supports.”
“For many of my residents who are retirees and live in the property that they own, this does cause some level of anxiety. So, while they own their own property and live in them, they are anxious about the amount of tax they have to pay despite not making any rental income from their home. While I support the amendments in the Bill, I would like to put forward a consideration for a different treatment of "owner-occupied residential property", and I assume that some of the tax people might fall off their chairs with this. Page: 48 The consideration I am asking for is, do not treat owner-occupied residential property as a tax on wealth. I do understand that this is not a trivial consideration and it is a fundamental shift from the current intention of the tax which is a tax on wealth. Property is definitely an important form of wealth or asset in Singapore, whether owner-occupied, rented out or used for investment purposes. This will have a significant impact on tax revenue, as asset tax, which property tax and owner-occupied rental tax are part of. It is estimated to form about 7.4% of Government Operating Revenue in the financial year 2013, thereabouts it is about $4 billion. This will impact the programmes and initiatives that this revenue also funds. The rationale for my putting forward this consideration is not just from a tax perspective but rather that of housing policy, nation building and rootedness to Singapore. The Home Ownership for the People Scheme was introduced in 1964. And this gave Singaporeans a tangible asset in the country and a means of financial security. Home ownership has also helped Singapore in our economic, social and political stability.”
“Mdm Speaker, thank you for allowing me to speak on the Property Tax (Amendment) Bill 2013. I rise in support of the amendments in the Bill. I would like to touch on the changes in the Bill that differentiate the treatment for residential property and non-residential property and the introduction of the progressive property tax structure on residential properties effective 1 January 2014. The new tax structure will allow the first $8,000 Annual Value (AV) of residential property to enjoy 0% tax and different tax rates to be applied for subsequent AV amounts. With these changes to the Property Tax on residential property, more households with lower value property will benefit as they will pay less property taxes than what they are paying currently. Therefore, as the Minister has said, it is socially equitable and it is fair that the changes will result in tax increases that will impact mainly those who can afford higher end property. This will mean that they will have to pay more. And with these amendments, those benefiting from investments in property will also pay more than owner-occupied property. The changes do, however, add to the complexity of residential property tax. The progressive nature of the tax (more tiers for the different tax rates), as well as the fact that computation of the amount of property tax as a percentage of the annual value of the property (based on the estimated yearly rent that the property can fetch if it were rented out), does make it quite complex. Variability of the annual value of the property does lend uncertainty to property tax. So, while the annual value may not vary year over year, the fact that this will vary with market conditions implies no ability to guarantee the impact on the taxpayer.”
“Mdm Chair, may I I declare my interest as President of Netball Singapore and also a member of the Singapore Sports Council. Madam, sports can be a unifying platform and creates an environment for people to come together, especially when we rally around our athletes at competitive games. With the growing importance of sports in Singapore, we must support our athletes to develop their talent as well as the training programmes required for major international competitions. Will the existing schemes and programmes, for example, high performance sports programmes, be enhanced to support our athletes better? Page: 74 I am actually very glad that MCCY will be taking a more targeted approach of offering scholarships to athletes with good potential to study and train overseas and to compete in international competitions in order to groom world-class athletes. I do understand, however, that sports like netball, which is not yet an Olympic sport, will not be included in this programme, and I hope that MCCY would reconsider that. I just want to stress the importance to our athletes that these programmes are provided to them and I would like to use the example of Mr C Kunalan. As many of us know, he is known as Mr K. He is a very great athlete, competing in two Olympics for Singapore and in many international games. He shared with me a letter that he wrote to his wife in 1968 when he was competing in the Olympics, and I would like to just quote and share this with you: "The Government is wise. We must send only the best. Another thing we must get very serious about is training. There are about six short men, all doing 10 or 10.1. Why? Arms and legs are big, very big. Mine only half. You know, darling, if I can only get their strength, I would be doing 10 seconds, too.”