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…”
The complete record
Every one of 823 lines we hold for Jessica Tan Soon Neo, in date order, each linked to its source. Free to read, in full, without an account. Page 15 of 17.
“Mr Deputy Speaker, given our tight labour market and the fact that our resident workforce in Singapore is ageing and life expectancy is increasing, the re-employment recommendation proposed will support and enable workers to work longer if they wish to and to organisations to be able to continue to benefit from the value of the more experienced employees. I am supportive of the amendments proposed and having gone through the details of the proposed amendments, I must say that much thought has been given to the details of the Bill to ensure that a balanced approach is taken. It takes into account the interests of employees who are eligible for re-employment whilst ensures viability and flexibility for employers. The hon. Member, Mr Hri Kumar had mentioned, it really looks into giving more rights to the workers and giving assurance to workers of re-employment. The Bill actually provides quite great clarity on the eligibility criteria for re-employment, the re-employment obligations of employers, guidelines or timelines in terms of engaging employees and notifying them of eligibility for re-employment and the terms of contract. It also ensures that employees are provided an Employment Assistance Payment if the employers are unable to find suitable jobs for the employees. There are also clear avenues for employees to seek recourse and remedies for re-employment disputes through the Ministry of Manpower or the Commissioner for Labour. There is also flexibility for employers and employees to make necessary adjustments to wage and employment benefits. The guidelines also encourage employers to exercise fairness in making adjustment to wages and employment benefits for older workers.”
“Employers should take advantage of the schemes that we provide as well as leverage on the changes in the foreign worker levy to go for higher quality foreign workers as time goes on. As to the second question which is what happens to the cost of companies as they face higher levy, if they cannot find local workers to replace these foreign workers. I also explained in my speech during the Budget debate that the primary objective of the foreign worker levy adjustment is to motivate employers to reduce dependence, not just simply replacing foreign workers with a local worker. If you replace one foreign worker with one local worker, with no change in skills or productivity, the output will be the same. There will be no improvement in productivity. Instead, we encourage employers to replace either a foreign worker with a higher skilled local worker or just simply reduce the reliance on foreign workers. If a company needs 10 foreign workers in the past, going forward, if they are able to change their way of operation and he needs only eight foreign workers, this will result in higher productivity. In fact with the improvement in productivity, together with the Government's schemes that we put in place, the cost of the foreign worker levy increase will be more than offset. The improvements in productivity will be long-lasting and it will improve the competitiveness of the company as a whole, not just the workers. We have to be very clear that the objective of this exercise is ultimately to raise productivity, not just replacement of workers. If we simply replace them without changing anything else, productivity will not improve.”
“At the same time, we also raised the skills requirements as Ms Josephine Teo asked just now. Over time, we will raise the skills requirements for foreign workers, so that employers will have to bring in better qualified workers to work in Singapore. We also have widened the levy differential between skilled workers and unskilled workers. By doing so, employers again will have the incentive to raise the quality of their foreign workers. Most of these criteria will affect employers' recruitment decisions to bring in better quality and more productive foreign workers. For foreign workers who are already here, we encourage employers to send them for training and upgrading. If they have been here for five to six years, as the economy and industry move, their skills may have to be upgraded to keep pace with economic progress. Therefore we encourage our employers to send their workers for training. The foreign workers will not have access to course fee subsidies or absentee payroll, because training is the basic responsibility of the employers. However, the employers can also benefit from the Productivity and Innovation Credit announced by the Minister for Finance earlier. This applies to all training programmes, whether they are for local or foreign workers. It is important for us to send a message to employers that upgrading the quality of their workforce – local or foreign, is their responsibility. The Ministry of Manpower's main programme, WTS, etc, will focus primarily on Singaporean workers. The infrastructure that we have put in place is also available for foreign workers who are here.”
“Thank you, Minister, for sharing the plans on the foreign workers and the various schemes. But I still struggle in terms of understanding how and what we will be going to be doing differently that will raise the quality of the foreign workforce that is coming in. I hear the point about the levy and that forcing some changes in behaviour and more thoughtful planning. But I am struggling to see the correlation in terms of how the quality of the foreign workforce will increase. The other thing that I do not think the Minister did answer is with regards to the cost. What will happen is there is no ability to hire locals to fill these jobs, with the higher levy, it might still translate to a higher cost for the consumers. Mr Gan Kim Yong: Sir, during the Budget debate, I spoke on how the proposed levy changes will bring about improvements in the productivity and the quality of foreign workers. I will just summarise the key points. The important thing to bear in mind is that ultimately, the improvement in productivity and quality of foreign workers will benefit the employers. Employers therefore, must take responsibility for the outcome of the quality of their workers. The Government can only facilitate. We will adjust the foreign worker levy so that there is greater incentive for employers to reduce their reliance on foreign workers. One way of reducing the reliance on foreign workers is to ensure that each foreign worker is able to contribute more, by bringing in better quality foreign workers. We cannot dictate whom they should recruit. We have put it into the system through the foreign worker levy, so that employers will be incentivised and motivated to look for the best quality of foreign workers that they can find to produce better results and create higher value-add.”
“Construction jobs, jobs in the service and hospitality industry, caregiving and step-down health jobs that require shift work and are physically strenuous are jobs that Singaporeans shun. Coupled with the fact that we have an ageing population, this will imply that there will have to be a continued need to hire foreigners to do these jobs or face the problem of not having sufficient capacity. This will, hence, eventually translate to higher business costs for them without necessarily achieving higher quality or reducing the dependency of foreign labour. In some instances, businesses believe that hiring foreign talent can also help meet critical employment needs, enhance the skills of the workforce and enable companies to compete globally. Foreign manpower management”
“Madam, while we manage the dependency on foreign talent, can the Minister share on the policy changes and programmes that will be in place to ensure quality of our foreign workforce? I believe that the Minister will agree that raising the levy does not necessarily lead to the hiring of quality workforce or talent. Will there be new criteria applied to the different roles and industries on the quality of foreign talent to be hired? Will there be minimum qualifications required for the hiring of foreign talent in the various industries or sectors? With the increase in levy, can the Minister share on how we will optimise the alignment of the workforce to labour demand? There has been much discussion on the need to raise the productivity of the construction industry. This is not new. Since 1999, with C21 blueprint and the measures taken by MOM and BCA in 2003 to 2005, there have been attempts to address the high reliance of foreign labour, low productivity of the sector as well as to upgrade the industry with policies affecting qualification requirements, dependency ratios and changes to the work permit allocation system. Can the Minister help clarify how he sees the increase in levy this time impacting the construction industry to address the issues more effectively? In our various dialogues with businesses, the Government Parliamentary Committee (GPC) has received feedback from businesses on the concerns that their business will be impacted by the increase in levy. Their concern is that even with innovation and better work processes, there will be jobs that will continue to face difficulty in attracting Singaporeans to take on these jobs.”
“Madam, as Singapore continues to drive quality and productivity to support growth, how will Singapore continue to ensure that we remain a choice talent hub and career destination to retain local talent and attract quality foreign talent? Increasingly, Singapore competes with many other global cities and economies for talent. Can the Minister share on how Singapore will build up our talent base and, more importantly, retain talent? This will apply to both local and foreign talent. How will Singapore differentiate herself as a talent hub and, hence, be an attractive career destination for top local and foreign talent? The Economic Strategies Committee's Sub-committee on making Singapore a leading global city has proposed three strategies and recommendations on how to achieve this vision. One, establishing Singapore as Asia's most liveable city, developing Singapore into a new Asia's hub for innovation and creative enterprise and making Singapore the best home for talent. These recommendations will require huge efforts and investments. How does the Minister see Singapore moving forward with these strategies to achieve the impact and the vision that has been set up? Can the Minister share on how he sees Singapore as creating a conducive and stimulating environment to attract talent, enabling them to pursue their interests and ambitions? How will Singapore build the clusters and the eco-systems that will be necessary to attract talent and, more importantly, to retain top talent? Work Permit quota”
“What actions will the Ministry take to reduce vehicular congestion on the road? I do hope that it would not mean that there will be more gantries and higher charges on ERP.”
“Mr Chairman, I think we have heard from many Members about Singapore's growing population and the demands on the land transportation system. With the high level of economic activity in Singapore, the land transportation system plays a crucial role in enabling people to get to places on time. Can the Minister provide an update on the progress of meeting the increasing capacity demands on our public transport system as well as the management of traffic on the roads. As the Minister said in his speech last year, our public transport system will need to do more to put the commuter at the centre of the land transportation system and our land transport system must be planned and built for people and not vehicles. Can the Minister tell us what the progress of making public transport more seamless and is it meeting the capacity demands in quality of service? Are our trains and bus systems able to meet the increasing volume of passenger load and demands? What is the wait time for services? And are we seeing improvements in the service quality of our public transport? An area that I would like the Ministry to also look into is safety at our MRT stations given the increasing passenger load and the use of the MRT. Is there a regular review of the safety considerations and emergency procedures with regard to evacuation of commuters in the event of an emergency given the high passenger load? Road capacity and traffic management. Our roads are increasing challenged to meet the increasing demands of road usage and more cars on the road. With the COE and ERP system, how effective have they been in managing in easing congestion on the road and can the Minister provide an update of what impact it has had on traffic flow?”
“Sir, let me take the opportunity to thank Minister Lim for taking the trouble to cover the range of questions that we had on behalf of the GPC as well as Members of the House. Thank you for the comprehensive replies and for providing the information. I look forward to the Government setting the example in terms of driving innovation and productivity. And we look forward to seeing the Singapore Government Public Sector report, which is coming out sometime this year, to see the examples of how that has driven impact. So with that, Sir, may I seek your leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $546,431,600 for Head M stand part of the Main Estimates. The sum of $126,555,400 for Head M stand part of the Development Estimates. Head K – Ministry of Education”
“This will have the right impact on the jobs that will be created or lost and the growth or loss of the cluster of small businesses and those on the supply chain that support and are dependent on these businesses. I am not referring to just having schemes to incentivise companies to operate in Singapore. We should also assure that Singapore remains pro-business so that enterprises will continue to build the capabilities in Singapore. Government regulations should not be seen as prohibitive, of course inconveniences for business operating in Singapore such that administrative cost of doing business in Singapore is impacted. Singapore must ensure that we remain attractive for enterprises, big or small, local or foreign, to operate and grow their businesses. I would like to ask the Minister to share what measures are being taken to ensure that Singapore stays pro-business. Export-import (EXIM) Bank for SME financing”
“Mr Chairman, we have been discussing during the Budget debate on the need to deepen skills and encourage innovation of enterprises to raise productivity and enable enterprises to compete and capture new opportunities. As mentioned in the Budget speech, the window of opportunity for Singapore is short and given that other cities, including those in Asia, are developing rapidly and catching up with Singapore. During the various dialogues that we had with business leaders to get their reactions from the Budget, many highlighted that it is complex to understand the criteria even of existing schemes available as well as time consuming to apply for them. Their feedback was that there are various schemes for Budget 2010 are welcomed, but they would wait and see how easy it is to access these schemes to innovate and to upgrade their businesses. So what measures can the Government take to simplify the processes to enable organisations to access and leverage available initiatives and schemes in a timely manner to enable them to build capability and to compete and grow their businesses? The focus needs to be on simplification and timely access for companies that have potential to leverage the appropriate schemes. I will reiterate that it is not about hand-holding businesses. Being pro-business is critical in attracting businesses with potential to use Singapore as the base for their business as well as to retain Singapore enterprises to locate and operate their businesses from Singapore. The point is about how we will make it easy enough for businesses to begin, run and maintain their operations in Singapore.”
“So what steps are being taken for the Government to catalyse innovation for productivity growth? Accountability and budget allocation”
“Sir, I beg to move, That the total sum to be allocated for Head M of the Estimates be reduced by $100. Mr Chairman, Budget 2010 calls for a focus on driving productivity and innovation for sustainable growth and quality service. What is the Government's strategy to take the lead and, as one would say, walk-the-talk, to ensure efficient use of resources and streamlining of processes to improve the effectiveness and the quality of service. There are five areas that I would like the Minister to clarify. How will the Government ensure that, one, these sources are allocated to areas which deliver value and service excellence to citizens and businesses. Two, public agencies move towards high-value activities and away from activities and programmes that are no longer relevant. Three, public service staff are developed and trained to understand the principles, techniques and skills related to improving the quality and productivity of Government services as well as in decision-making. Four, improvement and processes are made to enable our public officers to solve citizen issues effectively. And, five, measures are put in place to reinforce and recognise citizen-centric service quality and excellence. In driving for productivity, what specific measures is the Ministry taking to encourage and leverage on the whole-of-Government approach to ensure more effective citizen services? And what is the Government doing to ensure that regardless of which Ministry or agency that citizens go to for assistance, service or information, that they do receive the appropriate service and not have to manage the complexity of having to deal with multiple agencies to resolve their problems or, as we say, the many silos of services and therefore they have to deal with these silos.”
“Mr Chairman, Sir, I wish to take the opportunity, on behalf of the GPC and Members to thank the Minister for sharing and elaborating on the growth strategies, for the Senior Minister of State, Minister of State and Parliamentary Secretary for taking the wide range of issues and clarifications. With that, Sir, may I seek leave to withdraw my amendment? Amendment, by leave, withdrawn. The sum of $653,620,500 for Head V ordered to stand part of the Main Estimates. The sum of $10,936,914,700 for Head V ordered to stand part of the Development Estimates. Column No : 3398 Head L – Ministry of Environment and Water Resources”
“Sir, may I ask the Minister to clarify. He mentioned that there will be an increase in cost and it is going to be inevitable. How does the Minister then see Singapore staying competitive and differentiating for companies both here as well as attracting new companies to base their businesses out of Singapore, and to continue to be able to value-add beyond cost?”
“In the shorter term, what are the potential markets and industries that the Minister sees as opportunities for Singapore to take advantage of the recovery? And how does the Minister see the balance of SMEs and MNCs and the local and foreign companies in the recovery. Opportunities”
“Sir, I beg to move, That the total sum to be allocated for Head V of the Estimates be reduced by $100. Mr Chairman, 2009 was a challenging year for most economies including Singapore. The recovery seems to be underway and what we now see with the recovery is fundamental shifts in markets, opportunities and competition. Against this backdrop, the Economics Strategies Committee (ESC) drove its recommendations for sustainable and inclusive growth to Singapore. In line with Budget 2010, which is forward-looking in the recommendations of the ESC, the emphasis is for Singapore to push for longer term strategic and sustainable growth. To achieve this, businesses will be required to restructure and change. This will create opportunities, but also uncertainties and adjustments for businesses operating in Singapore. The question is that as we push for longer term strategic and sustainable growth, how can we ensure that we can provide the environment and impetus for businesses in Singapore to capture the opportunities with the recovery in the shorter term? Singapore's economic performance still correlates with the global economic recovery, as Singapore's economy is heavily dependent on external demand. Can the Minister share what strategies are we driving to differentiate and promote Singapore's growth and to ensure that Singapore is ready to take full advantage of growth in the short term to capitalise on the recovery? With all of these, what will the impact be on business costs and its impact on Singapore's competitiveness? Does the Minister see Singapore companies and companies operating in Singapore as being able to capitalise on the recovery?”
“Mr Chairman, Singapore's growing population exerts increasing demand on land use for housing. With the increasing demand for housing, more land parcels are being released for both private and public housing development. The people to land ratio is facing an increasing stress on space. Can the Minister share with the House what criteria and planning considerations are taken, with the increase in people density when planning for the optimal use of land for housing, especially in our mature estates? As we have more people living on the same plot of land, using the same amenities and increasing the load on the same road transport and public transport networks, what efforts are being made to enhance greenery, to preserve a sense of space and well-being in high-density areas? The increased density of people in our estates will strain public amenities, transportation infrastructure and carpark facilities. When land parcels are released for development, what considerations are given to capacity planning on the increased demand on existing amenities and load on the physical infrastructure? What measures does the Ministry have to ensure that there continues to be sufficient open spaces like parks and sporting facilities within the estate, for residents to relax, interact and for recreation activities? As we all know, living in cities and living in high-dense areas can be really very stressful. As we use space more optimally, let us give consideration to at least having some space for people to relax and, hopefully, continue in our journey of gracious living and quality living. 12.15 pm Planning for long-term growth”
“Mr Chairman, with Singapore's diverse education landscape and choice for tertiary and degree education, more students are studying full-time in institutions like SIM, uniSIM, MDIS, Kaplan, PSB Academy, LaSalle, SOTA and many other private institutions. For these students who have Operationally Ready National Service (ORNS) liability, to be called up for In-Camp Training (ICT) during the regular school term would imply that these students will have to be away from their studies for two to three weeks of ICT. This does have an impact on their course of study during the period that they are away. I have seen several cases during my Meet-the-People Sessions when they come to request for my assistance to appeal after the initial requests for deferment are not successful. And in a couple of these cases, the students are quite anxious, as they were in preparation for examinations. As I understand currently, students in the three mainstream universities – NUS, NTU and SMU – are not called up during school term for ORNS liability. In line with the spirit of the Budget 2010, which calls for a culture of learning, innovation, increase productivity and inclusive growth for Singapore, can MINDEF review the relevance of the current deferrment policy of ICT for ORNS liability for full-time tertiary students during their school term? While we need to ensure that operational readiness of the SAF is not adversely affected and this will require more coordination and planning with the institutions, I do hope that MINDEF will give this consideration, examining how this can be done to align to the greater choices of university and tertiary education that are available for our students in Singapore. Full-time National Servicemen enlistment and NS call-up policies”
“The Government cannot promise success but it must have the vision and provide the environment for Singaporeans and those who chose to make Singapore home to believe that they and their families can do better and succeed in Singapore. So, with that, Mr Speaker, I support the Budget. 12.50 pm”
“Singapore has emphasised on meritocracy and this has worked well for us and we have built strong work ethics based on this. While maintaining our meritocratic ethos, we must now learn to work better together, especially as we look to external markets to scale and to grow. We need to be able to help Singaporeans and those who have chosen to make Singapore their home feel that while there is competition for resources, people still feel that they have an equal chance for success and they are not competing with each other for limited resources – whether it is schools, homes, cars. People will achieve different levels of success but nonetheless they succeed. Let me just use my favourite analogy on running to illustrate the point. When I first started long distance running, my friends in the ABC Running Group provided me the support and motivation to train. Although there was some friendly competition amongst us, the objective was to complete the run and not outrun the other person. When I was training for my first marathon with them, we each had the common goal to complete the run. The fact was we all had the opportunity to run and we each ran our race. Some were faster, some slower, but we all still felt like winners when we completed the race. So, using this analogy, I would say that while we push forward for growth, we have to create an environment that is inclusive and that people feel they have “hope” to chase their dreams and that they are able to achieve more for themselves and their families. The Government cannot do this alone but will play a crucial role in enabling and creating the ecosystems that Singaporeans feel that they can run their own race and have a fair chance at success.”
“Apart from the quality and advanced infrastructure, sound political and social framework and pro-business policies, I believe Singapore must also be able to build ecosystems of excellence in order to attract and, more importantly, retain quality local and foreign talent. This will create the "buzz" and attract talent to want to be in Singapore to create new businesses and innovate. Singapore should exploit our areas of strength in the various sectors, eg, urban solutions, infrastructure and transport management and system, financial services and healthcare, to build ecosystems of excellence and export capabilities to help our local companies capture opportunities in these areas. The emphasis should not be on centres of excellence but in developing ecosystems of excellence. The intent is to create new market opportunities while building on our strengths. As we cultivate and build Singapore’s ecosystems of excellence, there will be a need to examine how intellectual property is handled for these industries, especially for start-ups and SMEs. Although there may have been some disappointment for households as there were minimal cash handouts or income tax rebates in this year’s Budget, the Budget does aim to look at supporting low income earners with enhanced WIS as well as the Workfare Training Scheme (WTS). Recognising the needs of the aging population, there are top-ups to CPF Medisave, Medifund and Eldercare fund. Tax relief is also extended to middle income families with the shift to a progressive property tax regime and raising income threshold for taxpayers with elderly or handicapped members and the parent relief and top-ups to Post-Secondary Education Account for families with children.”
“In the various dialogues that we have had, there have been requests for more flexibility on the training or the courses eligible for tax reliefs and tax incentives, especially for SMEs that do invest in developing their talent. Definition of productivity – I think this is not clear, at least many have their own interpretations. There needs to be continuous efforts to explain and define productivity. It is useful to also show best practices as well as evidence of productivity impact. To this extent, the Government can take the lead and highlight how it is driving up skilling and innovation as well as improving on productivity. We continue to make investments to make Singapore an attractive hub for talent and businesses with the world as our market. Not only must we attract quality talent and companies to build their career and business in Singapore, we must also ensure that we retain and attract our own local talent and businesses to Singapore. Our talent base may be small but Singapore talent is sought after by many developing and developed economies. It is not altogether a bad thing to have our local talent in other markets as it does help to develop their capabilities. What is more important for Singapore is to be able to attract these talents to return to Singapore and to use Singapore as their base. To do this, there must be continued quality jobs and opportunities to attract them. The same holds true for local businesses. Singapore must remain an attractive place for them to locate their businesses and use Singapore as a Hub.”
“This is further exacerbated by the fact that it is difficult in the short term, at least, to change the mindset of Singaporeans to take up certain jobs in industries like construction, which are seen as strenuous, and some services jobs that require long hours of standing. Care giving industries, VWOs and the step-down healthcare sector will also be impacted by the increase in the foreign worker levy as they are heavily dependent on foreign talent and certain roles cannot be easily automated. This will impact cost of treatment. The recommendation is to provide credits to offset the impact for these institutions. The Growth Fund – it is heartening to see that the recommendation that the GPC and others had put forward to the Economic Strategies Committee (ESC) on the need for growth or patient capital was recognised and a specific initiative was set up, ie, the $1.5 billion growth capital. The challenge is in the structure of the programme as fund investors will not be likely to find such investments attractive as they will only deploy the funds if they find viable qualifying companies to support. This may, however, be an incentive to start the fund to access the matching Government funding. Tax deduction for angel investors – the intent is good and is consistent with the overall objective and is generous. However, expectations need to be managed on how much this scheme will spur investments. Angel investors look for large potential returns against a high downside risk. The tax benefit, while it would be appreciated, would be "spent" without much incremental angel investments. Continuing Education and Training (CET) – hiring and retaining good talent is a challenge for most SMEs.”
“It was opinioned that the nine sectors will also evolve and land utilisation and needs may change. M&A allowance and stamp duty remission – this is welcomed as amalgamations are made simpler to facilitate companies to grow through M&As. There are requests to remove the $5 million cap on the value of the acquisition per annum. Why put a cap on M&As, as Singapore already faces challenges on attracting M&As? M&A is a crucial and under-used approach for Singapore companies to grow both domestically and overseas. Tax savings while beneficial will not be the major swing factor. There was also a request to consider extending the qualification of M&As beyond the Companies Act framework to sole proprietorships to extend the benefit. The Foreign Worker Levy – timing and scope. I think there has been some confusion where this was relating to productivity as well. Although they are related, they are separate issues. If not calibrated, it may also send the wrong signals to companies looking to invest in Singapore or the foreign talents that are in Singapore may feel that Singapore is not as open as it used to be. From a timing standpoint, although the rise in levy is graduated over three years, there is also concern expressed by some businesses that this may impede the ability of companies to leverage and capture the opportunities of the recovery as their capacity will be impacted. Productivity improvements of local talent will not be immediate and it will take companies some time to innovate and achieve greater productivity.”
“The phasing out of Industrial Building Allowance (IBA) and the introduction of the Land Intensification Allowance (LIA) Incentives – while we understand the land constraints faced in Singapore and, hence, the need to optimise land resources and ensure efficient use of industrial land for higher value activities, the immediate phasing out of IBA may have unintended consequences, even with the exceptions allowed as outlined in the Budget Statement. Business leaders I spoke to shared that the phasing out of IBA will raise the cost of doing business. LIA is more targeted at the nine qualifying sectors and users who do not fall within the nine sectors will no longer qualify for the building cost relief and this may lead to increased cost. It was also shared that physical clustering of industries in one location is not always possible. Industries which are key to growth, eg, port facilities, energy plants, warehousing, telecommunications, have high capital expenses and these are not included. The phasing out of IBA in the short term may be contrary to promoting the ecosystem of SMEs as part of the cluster. Singapore competes with countries like Hong Kong for inbound investments. Hong Kong currently has both IBA and the Commercial Building Allowance. These are significant for both SMEs and MNCs. So, as SMEs are also encouraged to innovate and grow, they will need space to grow. This will require investments and will affect decisions to relocate. For example, retail is not part of the nine key industries identified for LIA. Retail requires warehousing and storage and, hence, affects sustainability. So, the recommendation is that the constraint of limiting LIA to only nine sectors be lifted and to allow for competition and value-add to determine the efficient use of land.”
“As mentioned earlier, the various programmes and schemes are welcomed to help companies to innovate and raise productivity. I would, however, maintain that there is still a need for coaching and capability building. While I agree that the Government cannot pick winners or determine losers and that it should play an enabling role, there is still a need to develop promising companies with potential. Take the analogy of top talent development in large organisations. Most large organisations have programmes in place to identify top talent early. There are deliberate strategies and programmes to develop these identified talents by providing them opportunities. There are also coaching and mentoring programmes to support these high potential talents. This accelerates their development and provides them the platform to grow. Similarly, promising small enterprises do require more than financing. This is not about giving special privileges to our local SMEs nor hand-holding them. This will help nurture and accelerate their growth and success. For example, take Capital Land and how it helps position viable local companies like Old Chang Kee, Charles and Keith and others in its projects both locally and overseas. It provides promising companies like these a platform to scale and to grow. I would like to touch on several of the Budget measures that may require further consideration given some feedback I have received from businesses on their potential impact.”
“This leads me to another point which is on landing the schemes effectively and ensuring that companies that have potential do leverage and have timely access to the schemes. Feedback has been that understanding existing schemes and qualifying for them can be time consuming and challenging especially for the smaller companies. The point that some may have been missed in the Budget Statement is that the existing programmes or schemes do not go away. They will complement the new initiatives in Budget 2010. This, however, does serve to highlight that given the many schemes that already exist and together with the new initiatives of Budget 2010, it can be very complex and difficult for companies, especially the smaller companies with little back-end support, to understand much less apply. I received feedback for the Government to provide programmes and funding but not to impose too many rules and criteria that may deter companies that have potential from leveraging them. The suggestion is that the principles for qualifying for the schemes should be set but balanced to simplify the implementation. There was a suggestion to extend the reach of the existing schemes to smaller companies via audit firms to complement existing channels. The rationale is that all companies need to be audited and audit firms could be engaged to advise companies on how to leverage these schemes for better effect and take-up. How to implement these policies such that companies will be encouraged to upgrade? The key question for all of us is how to ensure that we land the initiatives such that businesses, especially SMEs, can effectively leverage them to innovate and upskill so as to achieve greater productivity.”
“(3) Ensuring all Singaporeans are included in the growth – while high quality jobs and ensuring growth for companies operating in Singapore is important, I am glad to note that one of the key thrusts of the Budget is inclusive growth for all Singaporeans. From the various feedback channels including REACH, online blogs and forums, plus several dialogues that I have been involved in over the last week with business groups as well as grassroots leaders, reactions to the Budget have been mixed. While many acknowledge the soundness of the approach and intent of the Budget, several expressed that more may need to be done on the scope, timing and form of the initiatives to be more effective for both individuals and businesses. Many recognise and agree with the vision to ensure that Singapore stays competitive, to sustain growth in the next decade as our window of opportunity is short with many cities, including those in Asia, developing rapidly and catching up with Singapore. The initiatives like the Productivity and Innovation Credit (PIC) and the Tax Allowance and stamp duty relief to defray M&A costs as well as the proposed deferment of import Goods and Services Tax (GST) are welcome measures. But as tax reliefs, they do not address the upfront financing constraints that businesses face. Innovation and measures to restructure companies to drive productivity improvements require upfront investments and will have cash flow impact. For smaller companies, this may prove challenging, especially given the backdrop of just coming out of the economic crisis. Perhaps help to these companies for such upfront investments could be addressed by the newly created National Productivity Fund.”
“Mr Speaker, Sir, thank you for allowing me to speak and to open the Budget debate. I rise in support of the Budget Statement for Financial Year 2010 as presented by Minister Tharman Shanmugaratnam. Budget 2010 is one of moving Singapore forward in the next decade and to transform our economy to ensure that we can continue to achieve sustainable growth. It focuses on driving key recommendations of the Economic Strategies Committee with three important outcomes: (1) Higher quality of jobs and real wage increase – raising productivity through deeper skills and innovation (both of the individual worker and of the companies). (2) Growing globally competitive companies – to enable our companies to not only compete globally but, more importantly, capturing new market opportunities and to grow their businesses. Using Singapore as the base while they internationalise to enable growth and sustain high quality of jobs in Singapore. On a positive note, there is a clear emphasis on the various schemes in directing help especially for smaller companies – examples include the Partnership for Capabilities Transformation (PACT); support for business associations to be growth champions; nurturing the next generation of business leaders to enhance SPRING’s Business Leaders Initiative; improving access to Growth Finance such as catalysing growth investments through co-investments to help companies that have achieved initial success and are looking to scale up by matching range of funds with private sector investments in Singapore-based enterprises; and promoting cross-border financing where the Government is studying various models to develop market-based commercially run institutions to support growth of cross-border financing for Singapore based-companies.”
“Mr Speaker, I would like to ask two supplementary questions. One is with regard to the upgrading of the existing infrastructure for increased capacity. As land parcels are being used for housing, can the Senior Minister of State share with us, in terms of the more mature estate, what is being done with regard to the upgrading of the existing road infrastructures for the increased density? And the second question is, what are the measures that are being taken to track conducive living environment with regard to the strain on the amenities, as there is increased density in these more mature estates?”
“Sir, I thank the Minister for the comprehensive answer. I have two supplementary questions. First, the concern is about affordability. HDB has always said that flats are very affordable. But we now see that resale flat prices are rising. How can HDB help ensure that flats continue to stay affordable, especially for young couples who are looking to own their first flats? Second, would MND consider reviewing the income ceiling criteria for 4-room and bigger flats? Because I meet a lot of young people with aspirations not to own private property but public housing in that range, and they usually fall a little out of that income ceiling.”
“Not only must the Government have strong leaders and provide effective and efficient citizen services, it must also create an environment that Singaporeans feel that their views matter and that they can make a difference in the areas of their lives that are important to them. Regardless of the channels of engagement, we must nurture an environment where people feel that differing views are accepted and where they will have opportunities to hear differing views. This will facilitate greater acceptance of diverse viewpoints. I have mentioned before in this House that Singapore is an improbable nation, and that our success as a nation is the result of the will of our people. This is a journey - we must stay the course and encourage active citizenry and participation grounded in our fundamental values of an inclusive society and opportunity for all to succeed. These uncertain times will definitely challenge us and put a strain on our society and systems but, at the same time, provide opportunities for fresh ideas and new ideas. We must therefore be bold in our quest to continue to build our home and our future in Singapore. As the saying goes, "A bend in the road is not the end of the road... unless we fail to make the turn." With that, Mr Speaker, I support the motion of thanks. 2.16 pm”
“The tension is in striking a balance on national security and business competitiveness respectively in the situations I have highlighted above, while addressing the need for Singaporeans for more information and accountability. Regardless of age, it is clear that with a more educated and globalised population, with greater access to information exposure, we are seeing a different profile of citizens. It is because of this changing profile, the process content and space for engagement needs to evolve. What has become more important is not just the media or the platform of engagement but also the content, the process and how we engage. People not only focus on outcomes, but want information and participation in how decisions are taken. There is a greater need for a more consultative approach, views to be heard and exchanged. The process of good engagement will help establish better buy-in and ownership of policies and hence a more inclusive and cohesive society. The recent AWARE saga has many lessons for us. One such lesson, as stated by Alicia Wong in her article in May 16th of Weekend Today, was on how civil society had jumped into action where "OB" markers of religion were seen to have been crossed. What she and many that I have spoken to appreciated was how the Government showed restraint and held back for intervening, allowing space for civil society, while providing clarity and balance on the approach of keeping religion and politics separate. The political landscape is maturing and evolving in more ways than one.”
“PM Lee, in his recent May Day Rally speech, touched on three potential stress points in our society which we have to overcome: one, between Singaporeans and non-Singaporeans and, if I could add, between old citizens and new citizens; two, between successful Singaporeans and not so successful Singaporeans; and three, between the different races and religions in Singapore. As PM Lee has mentioned, these are real potential stress points for our society. We must work hard and ensure that we stay united as one Singapore. To enable this, we have to ensure strong economic growth while Singapore resists the temptations of protectionism in these difficult times. Being a small market, Singapore must look to the international markets for growth. We must resist the pressures of protectionism in this difficult time and remain committed to free trade. Promoting an open and inclusive economy will have an impact on investments coming into Singapore as well as Singapore businesses investing overseas. Much has been said about the challenging political landscape, the need for the form and structure of our political system to evolve and renewal of political leadership in order to engage and stay in touch with the electorate. On the point of engagement, I would like to touch on the following: the changing profile of our citizens and the need to focus on the process, the content and space for engagement. From the recent examples of the Mas Selamat escape from detention in 2008 and the sale of Temasek Holdings' 3% stake in the Bank of America, it is evident that citizens want more information, demand answers to their questions and accountability for what they consider key issues that impact Singapore society.”
“As the Government continues to play an important role to drive new initiatives and strategies for growth, we must increasingly look at putting all our minds and efforts as we look for new ideas to enhance economic competitiveness. A good example of the private sector taking the lead, is the recent launch of the "Beat the Recession" initiative. This is a pro bono private sector initiative, led by young business leaders, a network of Singaporean business leaders and entrepreneurs, supported by organisations like the Singapore Chinese Chamber of Commerce and Industry, Singapore Indian Chamber of Commerce and Industry, the Association of Small and Medium Enterprises and the National Youth Council. This initiative provides new business persons without much experience access to a network of young business leaders and entrepreneurs and this is especially important in difficult times that we face. The three objectives are: to encourage, engage and empower Singaporean businesses to survive the economic crisis through best practice sharing and collaboration by these young business leaders and entrepreneurs. Everyone will agree on the importance of education in a country like Singapore. But as we continue to upgrade education in Singapore, and enhance our skill base, all the more we must ensure that our economy can absorb the skills and talent. As we put a higher premium on knowledge and skills, Singapore needs to be a global city, where our people can benefit from growth in the region and globally and build good careers. Without this, it will lead to strain on our social fabric and cohesiveness. This brings me to the subject of strengthening our social cohesion.”
“More importantly, there continues to be a need for strategies on developing SMEs to deepen capabilities and to expand to new markets. This will require a whole of Government approach, from SPRING's efforts to help SMEs develop corporate capability and branding to A*STAR's work in connecting industry to R&D and EDB's facilitation of companies to conduct more R&D and develop new capabilities in Singapore. MICA outlined in the Addendum to continue to develop the creative industry and infocomm sector. Strategies include capability development, providing advanced infocomm and media infrastructure, facilitating adoption of and exploitation of emerging technologies and the public, private and people partnership in digital media to develop both the local media scene and enable our local companies to participate in international market. MEWR has outlined the strategy to invest in new capabilities to reduce waste and control pollution to add to existing expertise in clean water and energy. These capabilities will help position us as a global hub for environment and water solutions. All these measures are important initiatives of how Singapore will sustain our growth and stay competitive even in these difficult times, while we gear up for the recovery. Our companies must build their capabilities and be able to grow their businesses, both in our local markets and internationally. As we drive strategies to enhance our economic competitiveness, there is increasing room, I feel, for the three 'Ps' - Public, Private and People - partnership to help build a vibrant eco-system for Singapore.”
“Mr Speaker, Sir, thank you for allowing me to speak on the Motion of Thanks to the President for his Address at the Opening of Second Session of the Eleventh Parliament. President Nathan, in his Address, touched on the Government's priorities and plans to ensure that we continue to build our future Singapore in uncertain times. In his earlier address at the Opening of the First Session of the Eleventh Parliament, we will realise that the priorities outlined then in November 2006 are still aligned and relevant despite the fact that we are now facing very different circumstances in both the local and global economy. While the priorities remain, new prospectus and approaches are needed. Of the priorities outlined in President Nathan's Address, I would like to touch on three of them: (1) Enhancing our economic competitiveness; (2) Strengthening our social cohesion; and (3) Evolving our political system. We will all agree that it is critical for Singapore to continue to invest to drive the development of business opportunities and careers for our people in the various sectors. Minister Lim Hng Kiang in MTI's Addendum shared that MTI will continue to focus on strategies to strengthen the Singapore economy to ride out these uncertain times and gear up to seize new growth opportunities when the economy recovers. This will ensure that Singapore remains a leading city, where talent and enterprise can grow and succeed. We must continue to support these efforts to strengthen our presence in markets that we are already in as well as diversifying further into new markets. Helping our local enterprises, especially SMEs, will not just be in facilitating access to credits during these difficult financial times.”
“Would the Ministry consider increasing the coverage threshold for the Employment Act for PMETs who are on contract terms, say, to about $4,500 a month or any higher than the $2,500 bracket to enable a larger group to have access to the dispute resolution mechanism? Sir, with the current economic climate we can expect the trend towards more contract workers and therefore we should take care of the interests of contract workers.”
“Mr Chairman, there is an increasing trend of organisations moving towards contract employment. In 2008, we saw continued increase of 4.9% of resident employees on term contracts. Contract workers form 12.4% of all resident employees or 180,000. We should note that contract employments are not confined to low-skilled, lower-waged and casual workers. PMETs too are now increasingly becoming part of the pool of contract workers. PMETs now form about half of the resident workforce up from 40% up from a decade ago. With contract workers becoming an increasing proportion of the resident workforce, ranging from lower-skilled employees to PMETs, does the Ministry track the profile, the type of jobs as well as the length of contract terms for their employment? And is there a look at the progress of whether their welfare and interests are also being taken care of? The Employment Act that was recently revised in January 2009 extended coverage to include confidential as well as junior managers and executives earning $2,500 and below in basic monthly salary. This enabled them to have access to the Labour Court for salary claims and therefore definitely is a benefit because it allows access to lower cost of dispute resolution mechanisms. Many PMETs do, however, earn more than $2,500, although I do agree that if they are earning more, they should be in a better position to solve their problems. However, having access to Labour Court for disputes would definitely be welcome as many would not be able to afford to seek legal advice to handle dispute resolutions with their employers.”
“Sir, it is about a year since Minister for Transport shared the outcome of the Land Transport Review. A key question of the review was: what it would take for the majority of Singaporeans to choose the bus or MRT over the car? I must commend the Minister for the philosophy of the Land Transport system to put the commuter at the centre, and the Minister also spoke of making public transport a choice mode and about how we will make public transport more seamless for commuters and improve bus services to help achieve this. It is now about a year out since we started on this journey, I would like to ask the Minister to share the progress on the execution of the plans to improving public transport services, especially bus services. What impact has been achieved to make the journey for commuters more seamless, faster and more comfortable? I am not sure if public transport is becoming the choice mode for commuters or if it is a reflection of the economic conditions but the trend for ridership for MRT, LRT, bus in FY07/08 has clearly shown a shift and increase in ridership to public transport. Ridership for MRT was up 9%, LRT by 9% and buses by 4%. Taxi ridership perversely dropped year-on-year by 2%. So given this increase of people using public transport, we see there needs to be an improvement in the quality of public transport. This will be even more pressing given the current economic conditions, assuming that more people will take up public transport. So, what is the progress of the execution of the five major initiatives to enhance the hub and spoke system to make the ride for commuters more comfortable, quicker and more seamless? Quality of Public Transport”
“Madam, as we speak about the YOG and sporting excellence, I would like to ask about our youth athletes. As we look to excelling in sports, grooming sporting talent is an important aspect. Can the Ministry share on how we groom youth athletes? What is the development and training programme to prepare them for major international competitions and for future open competitions?”
“Madam, our parliamentary colleague, Ms Lee Bee Wah, has shared so fervently the benefits of sports, not only to the individual and the community, but also to the nation; and how it helps to build character as well as identity. In the recent years, Singapore has put good emphasis on sports, especially amongst the young and in the schools. The emphasis and the focus, however, has been on sports excellence, and while we develop sports excellence in our young and in our schools, we should also look at how we can work towards broader-based participation to support the sport. I would like to ask the Minister to share with us, the measures, programmes and investments for broader-based appreciation to build the fan base for sports in Singapore, and what support can be given to the schools as well in this aspect? Youth Olympic Games (YOG)”
“In last year's Committee of Supply debate, Senior Parliamentary Secretary Mr Masagos, in reply to questions raised by MPs, shared on MOE's focus on character development in the education system, and the many platforms, both formal and informal, in the curricula. I am also glad to hear that we are continuing that focus, hearing from the MPs as well as Senior Minister of State Ms Grace Fu on the PERI Committee's recommendations, that this emphasis is continuing in primary education. Senior Minister of State Mr Lui Tuck Yew also shared on the various platforms for character development in the universities and the community engagement. Character building cannot be taught in one lesson or in one term, nor can the outcome be easily measured. It is a continual journey. We need to ensure that this stays a continued priority, and focus on moral education and community engagement across all levels of education – primary, secondary and tertiary – continues in Singapore. This is key to building our resilience as a people and nation. I will also ask that we find more creative ways to make it fun and enjoyable for the key messages to stay and stick in our young. The Chairman: Mr Hri Kumar is not present. Ms Grace Fu.”
“Sir, with the recent international incidents we have seen with Lehman Brothers, Satyam and previously with Enron, it underpins the importance of values and character-building in our young. These cases are clear evidence of misuse of talent and misplacement of trust. Both regionally and internationally, there is a strong Singapore branding and reputation with confidence in our people and systems to deliver quality. Most importantly, there is an implicit trust in the integrity of Singapore, our people and systems. This is founded in our core values of honesty, meritocracy, multi-culturalism and racialism. Given today's competitive environment and the focus on excellence and achieving success, we must ensure that we continue to place equal emphasis on character-building, values and individual accountability. Inculcating sound moral values, sense of community, and accountability in our students, is an important facet that we must never neglect in our pursuit for excellence. This is not solely the responsibility of schools. However, given the important role that schools play for our young, and the amount of time our students spend in school, schools will have an important and complementary role in this regard. It does sometimes worry me how Singaporeans speak of achievements of schools and students. A common view of how good a school is has to be in terms of the number of straight As and awards that the school has received for academic achievements. Academic achievements, success and standards are important in the acquisition of knowledge and the quality of educating our young. However, the real test in quality of success of the schools will be seen from the impact, positive or negative, that the students have in the community and when they enter the workforce.”
“Sir, in the focus on excellence, MOF has outlined as one of its strategic outcomes to be a high performance Government. Can the Minister share with the House the progress of the "whole of Government" approach, which MOF has set out with the objective to create a high-performing Government that utilises its resources efficiently and effectively? What are the current processes in place to ensure the ease of access to Government service? Is there a specific focus to drive more effective service delivery to citizens and organisations that interact with the various Government agencies? If so, what are the key areas that have benefited from this approach? What is also being done to enhance the processes and upgrade skills of staff for effective and quality of services provided by the Government for citizens and organisations that interact with the various entities and agencies? How does the Ministry measure the impact of the "whole of Government" approach? What has been the outcome? What role has the partnership between private and public sectors played so far to support the "whole of Government" approach? With the current economic climate and the intense pressure that we face in keeping pace with the rapidly changing and competitive global market, the Government needs to go beyond efficiency and create value to remain relevant for the business and financial environment that we operate in today and for the future. In such uncertain times, a framework for clear strategic outcomes and responses and the ability to act with flexibility to nurture awareness and resilience will stand us in a better position to weather the storm and come out of this stronger. Maintaining Fiscal Prudence”
“Sir, can I ask the Minister for a clarification with regard to long-term care? We discussed about being disruptive. What more proactive actions can be done so that chronic illness patients can get preventive and constant care, and that they do not fall off from treatment due to unaffordability? One of the ways, as the Minister touched on earlier, is technology, how patients' information and tracking allow for more proactive actions to ensure that they do not fall off, and that they can manage the cost of treatment. The second clarification is that the Minister did not answer my question that I asked with regard to what more can be done in terms of affordability in these difficult times, specifically on long-term care and chronic illnesses. Can more be done for the cost of treatment as well as cost of medication to help patients in these difficult times?”
“Many of my Parliamentary colleagues have touched on the point that those who do not have Medisave and CPF contributions, how would they manage the cost of treatment for medication for chronic illnesses as this can be unaffordable given the long-term treatment. I must commend the Ministry for the high standard and the continued focus of the quality of healthcare in Singapore. But I would like the Minister to also share on what more can be done to help patients manage the cost of chronic illnesses in this difficult time. It is good to see that Medisave now allows patients to use life supplants for disease management programmes for the illnesses, including outpatient services. And I do also understand the concern of depleting and overusing the Medisave. But given the long-term nature of treatment and medication for chronic illness, the cost can be hefty. So as we talk about disruptive innovation, I would also ask us to be disruptive in thinking of how we can look at managing the cost of chronic illnesses. Because, seriously, I have seen too many trade-offs and it is really heart-wrenching to see people making those trade-offs. There is no easy answer to addressing the challenge of balancing the quality of healthcare and managing the escalating cost of treatment. However, given our ageing population and our somewhat sedentary lifestyle, the continued risk of chronic illnesses, proactive and preventive management of diseases as well as cost management will need constant attention. This difficult economic time makes this even more challenging. I am heartened to hear the Minister speak of the focus of the Ministry on doing more for less and ensuring that there is quality of healthcare treatment for patients. Use of Generic Drugs”
“With the ageing population and lifestyle in Singapore, we can expect to see the increase in the risk of Singaporeans impacted by chronic illnesses, for example, diabetes or high blood pressure. Can the Minister share on the measures in place to drive greater synergy and proactive healthcare management for quality of health among Singaporeans? Statistics have it that Singapore has the fifth highest incidence of kidney failure in the world with about 20.1% Singaporeans suffering from hypertension and 8.2% from diabetes. With people living longer, this underscores the importance of effective chronic disease management programmes to prevent the worsening of the medical condition to provide quality of health and life. With the current economic downturn, many will find the cost of treatment and medication for their chronic illnesses challenging as they will require treatment on a long-term basis. In some instances at our Meet-the-People Sessions, it is really sad to see middle-aged and older residents trading off seeing a doctor or getting early treatment for their illnesses for other more pressing needs to manage their financial situations. This may not be the most rational decision but, given their situation, this happens. The on-going course treatment for chronic illnesses will make it harder for some people to pay for needed medication and they may not stay on them or skip doses, worsening their medical problems. As we all know, the best way to manage the course of chronic illnesses and the quality of health and life is preventive management of the disease. Those in their 50s, 60s and 70s are in that segment that need attention. They have the potential for undetected chronic medical conditions and, if not managed, will lead to complications and disabilities.”