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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“Sir, can the Minister also share the status of existing and new foreign investments that have remained in Singapore in various industries, from manufacturing plants, facilities and financial services? Given the slowdown in demand and the economic challenges, what are the implications of these investments? Are they at risk? Will we see a shift of investments in Singapore? In this crisis, while we look at ways to ensure that companies survive and weather the storm, we will still need to continue to ensure that we invest the engines for growth and capture opportunities. Although there will be pain until the US and the global economy recovers, this will help us stay viable and put us in a better position to live and participate in the recovery when it does happen. US-Singapore Free Trade Agreement (Costs and Benefits)”
“Mr Chairman, while we look at measures to support viable businesses in Singapore, to manage cost, enhance cash flow, build and retain capability, we cannot ignore the fact that unless there continues to be demand for services and products, businesses in Singapore, though more resilient, will not be able to survive for too long. Recognising that the economic challenges are global and that our growth and total demand have slowed over the last two consecutive quarters, how are we investing to build capability to create new markets and opportunities to address the demand for our services and products? I would like the Minister to share the initiatives and programmes in place to develop new markets and build capability to support growth for Singapore's economy in the near term. As it will be difficult to generally export demand, what is being done to look for new markets where demand still exists? Do we see the alternative energy sector as one that could support new demand for our services as companies look to improving their energy efficiency in the near term? Given the size of Singapore's local market, unlike other regional countries with large and growing domestic demand, our ability to create and grow local demand will be limited, what measures are there to encourage Singapore companies to look for new overseas markets? Does the Minister see intra-regional trade and investments as a potential market to drive demand? Or are other markets the focus to drive near term demand for Singapore's services products? How are our local enterprises involved in the development of these markets and capabilities? What about availability of skills locally to support these new sectors or markets?”
“Sir, is the Member aware that Jobs Credit is, actually targeted at Singaporeans. So, organisations – large and small – that hire Singaporeans benefit from that and Singaporeans benefit. And the other point I like the Member to know is, I have spoken to small companies and they have actually said this is an immediate relief for me to actually keep the capability. You are right – they are facing demand challenges. It is tough, but at the same time, having that relief, enables them to tide over and be able to keep the capabilities they would otherwise have not been able to keep because the demand is down. So, yes, it does not solve the entire demand problem, it does not solve the cost problem, but it definitely helps supplement some of it. If the company is really viable, and it is interested in keeping the capability.”
“With this, we will, as a society, be able to drive greater impact with our limited resources to build capability for Singapore and ensure that we have a deeper change to come out of this even stronger. Sir, with that, I support the Budget for FY 2009. 12.57 pm”
“The sport and the resources were not limited to only those who play the game well or who made the school team. At the same time, our school team competed and still did well. This analogy applies as well as to the school system and the curricular. So, as we look at building the character of individuals in schools, I hope that we also look at enlarging that reach, not to limit the numbers that we are able to reach, given limited resources. Just to emphasise the point, let me just use another analogy of the marathon. The thing about the marathon is that everyone, no matter how slow or how fast a person runs, he gets the ability to run his own race. I hope that as we move forward in looking at how to survive in these difficult economic times, we do not just look at saving the few, but we take as many along as we can, because when the economy does recover, that will stand us better in terms of being able to also ride the new wave. Sir, the Resilience Package is not just about resilience of jobs and employment, we must also look at the resilience of a society. We must move from the individual and independence to interdependence. Independence is necessary but there must be a fabric of interdependence in our society. Do we ask the question of what is in the Budget for me versus what is in the Budget for Singaporeans and the Singapore society? Resilience is more than keeping the economy going, but keeping the Singapore society going. This calls for more than the Government and the Budget making an impact and difference. It calls for all Singaporeans to come together to make a difference, especially in the challenging times that we face with the recession and the uncertainty of when we see recovery, all the more it is important that we are inclusive.”
“However, the well-being is more than just receiving the right medical treatment. It is also dependent on how patients receive the care. Let me give Members a very stark example. If a patient is left to wait for treatment without information or attention while waiting, this not only can be upsetting for the patient but, more often than not, can cause stress and anxiety and affects the end outcome of the well-being of the patient. So, as we look at the hardware and the software, let us also make sure that we look at the quality of the care that is given and that the Budget be put to look at that as well. Similarly, for education, while we strive for excellence and a well-rounded education, how do we ensure that it is inclusive and that it helps reach as many students as possible? Let me just use a sports example to illustrate this point. The emphasis of excellence in sports can, at times, limit the reach. Say, if students want to take a CCA, given limited resources and the emphasis on excellence, they have to go through trials in order to qualify for the CCA. What this means is that those who are not exposed earlier to that particular sport but may have the aptitude but never got the chance to take the CCA, would never be able to contribute or learn the sport. I would like to share an example from my own secondary school days. Netball was a popular sport in my school. Although resources were limited, both in space and in the netball courts that we actually had, those who wanted to play the game and take it as an ECA – at that time, they called it the ECA and I am dating myself here – were given the opportunity to do so. This has had a positive impact on enlarging the talent pool and the appreciation for the sport.”
“The Budget does have a strong emphasis and bias to those in the workforce, and to keeping people in their jobs. This is understandable as people, by staying employed, will be able to continue to support their families. The jobs credit, however, cannot be expected to keep everyone in their jobs. Businesses must, however, remain viable to keep their workforce. We have to also keep in mind that there are those who are not in the workforce, eg, retirees, new job entrants. We have many university and polytechnic graduates who will be coming out, raring to go, looking for jobs. I think that this is an area that we really need to seriously consider as to how we are going to address this segment, because it is not just about keeping those in the jobs, but it is how do we ensure that there is sufficient demand and that there will be jobs for the supply that is coming out. Sir, let us now switch gears. A point that I would like to touch on is about resilience. I am glad to see that the Budget also looks at investing and building for our future. As we continue to build for the future and the heartware of the Singapore society – I think we have also touched on that in the Budget about building the software of our society – I also hope that we build the hardware of our society. The Budget speaks of efforts to enhance quality of both education and healthcare. I think it is important that efforts in these areas be focused more, not just on the expertise and the technicalities of education and healthcare, on quality of education and healthcare and also include the experience of the patient as well as of the student going through the education system. For the patient, quality care is about getting the right treatment.”
“But is this sufficient if demand is not forthcoming? Sir, striving to maintain the status quo, despite some challenging times as well as waiting for the economy to recover, is not going to be good enough. We do not know how long and deep this downturn will last. So, while we must do what we can do to preserve jobs, we must also create jobs. We must find new ways to drive new markets and increase confidence and spending. Companies will still need to reinvent. The question many ask is: can Government intervention help drive demand in consumption and spending, apart from the infrastructure projects, and can these be sustainable? Will giving subsidies or giving vouchers or having more tax cuts encourage spending and sustain demand? Will people increase consumption if they had more cash or would they be more inclined to save during these tough economic times? Sir, I think one of the ways is – again, I go back to the question of confidence – building confidence so that we ensure that there is confidence in our workforce, our companies and our goods and services to stay attractive, and hence attract investments in Singapore and therefore drive demand. I must also comment that the current daily dose of bad news does drive the reality of the severity of the recession. I think many of us have recognised that and it is registering in all aspects of the Singapore economy. I think it is time that we also drove hope and confidence in this climate, while maintaining a sense of realism of the current situation. Sir, I support the fact that the Budget looks to keep people in jobs, as I believe that this will help the confidence for spending and hence drive demand, which is necessary to sustain the economy, as I have touched on earlier.”
“Whatever measures that are in the Budget, I think what is important now is that we ensure that it is executed and the impact, whether we are talking about rental rebates or whether we are talking about jobs credit, really go where they are intended for. Sir, I think the continual focus, as my colleague, Mr Inderjit has talked about, is on cost, I am not going to elaborate more on this because he has covered quite extensively on the possible areas to further address the cost challenges. I think this is real. It is not an easy area to solve but it is real for companies operating in Singapore. We have had feedback and this is an area, I hope, that there will be continued focus to ensure that we address and continue to improve the cost of doing business in Singapore, as this will not only help drive confidence for businesses operating in Singapore but also encourage more investments. Sir, we recognise the grave economic conditions we are facing today and that they are unprecedented, given the impact, not just locally but world wide and globally. Hence, the decision to draw on the past reserves is justified. However, as much as I would like bold measures to be taken, I want to say that I am also concerned about whether this is going to set a precedent. I do want us to ensure that prudence will be exercised, as it previously has been, to safeguard the reserves and ensure that this does not become an easy option for future challenges that we face. The Budget seeks to enhance business cash flow and competitiveness through the tax measures, grants, jobs credit and training. Besides helping viable businesses weather the storm, the primary focus seems to be, to some extent, on maintaining the current businesses. The bias seems to be on keeping jobs.”
“Mr Speaker, Sir, thank you for allowing me to speak on the Budget. I rise in support of the Budget Statement FY 2009 presented by Finance Minister Tharman. Let me first say that the Budget is well thought through. I personally thought it was thoughtful, decisive, innovative and simple to understand. The focus of this year's Budget addresses the immediate challenge of helping viable businesses keep their employees in jobs, support businesses facing cash flow issues, as well as help them stay competitive. This will prevent the situation from getting worse, as rightly pointed out by Minister Tharman. Keeping people employed will increase confidence during these troubling times. The measures proposed are innovative and bold to address the current economic conditions that we are facing. I must commend that the jobs credit really was something I thought was really very thoughtful, as it was direct and simple. I hope that as we execute it, it will also be simple in terms of ensuring that the impact is felt. Early feedback from companies that I have spoken to has been that many of them, large and small, are actually very impressed as well as keen to see the impact, and how direct it is to their bottomline and therefore helping businesses and, more importantly, helping people stay in jobs. I would also like to say that the focus, apart from just looking for more measures or to be more extensive is really about execution. I think the focus needs to be on execution to ensure that we achieve the intended impact. We talk about confidence. We talk about demand generation. I think decisive execution will build the confidence.”
“Would the process allow for intervention to review the proposed rates in the event of prolonged under performance against expected returns? Apart from just having a mechanism to revert to just the historical rates of returns, will the process allow for consultation and review of the rates? Sir, I hope the Minister will be able to clarify these areas, because I believe that the amendments are the right ones to support the need for increased spending and to continue the investments required to keep Singapore competitive. But these areas need still to be discussed and clarified. With that, Mr Deputy Speaker, Sir, I support the Bill. 5.44 pm”
“I hear the reassurance given with the proposed governance framework to safeguard the reserves, but echo the same concerns highlighted by my parliamentary colleagues who have spoken before me on the need for clarity of the definitions of "long term" and "expected returns". If we continue to see the extreme economic situation and adverse conditions that exist and that we are experiencing in the markets currently, will the 50% cap on NIR and the amendments to governance process to enable the President's role in safeguarding the past reserves be sufficient? While I appreciate the expected returns approach to avoid the inherent volatility of total returns on an annual basis, and this prevents also a feast or famine approach based on a bull and bear market respectively, I am concerned on the possible erosion with a few years of under performance to be expected to the reserves if expected returns for whatever reasons due to the adverse market conditions continue to erode the value of the reserves. Will the proposed change in the budgeting process or the governance model enable the elected President's role in safeguarding our past reserves allow for constructive dialogue and flexibility to reach agreement on the proposed rate of long-term real rate of returns? Will the process allow for the President to have consultation with an independent board of advisers on the proposed long-term rate of returns? I see the wisdom of having the mechanism to break the deadlock in the event of a dispute to revert back to the average historical rate of returns. I believe the Minister mentioned a 20-year period that would be used, although this is not optimum.”
“Mr Deputy Speaker, Sir, thank you for allowing me to speak on the Constitution of the Republic of Singapore (Amendment) Bill on the proposed new framework for spending of investment returns. I rise in support of the amendments to the Constitution for the new framework for spending investment returns, as the intended principles of the amendments are to increase the contributions of investment returns to the budget while preserving the real value of past reserves, and also to allow for the reserves to grow. Given the current economic situation, I think all of us will agree that the amendment is a timely and welcome one to increase the funding to the budget to support both important social and developmental spending. I would also like to ask the Minister whether all other channels of sources of income have also been considered apart from increased taxes, because I think many will agree that given today's current economic situation, as Minister Lim Hng Kiang had earlier shared the stickiness of inflation, and that further taxation of our people would definitely have adverse impact. So this is definitely welcome. Sir, let me now touch on the point of preserving and enhancing the value of our reserves. Minister Tharman had reiterated the point that given Singapore has no natural resources, it is vital that we ensure that we drive for economic growth and increase spending for longer term social and developmental needs, as we continue to grow the value of our reserves. As this new framework will be based on the long-term expected returns on investments by GIC and MAS, this would, to some extent, introduce risk to spending ahead of actual monies received or realised value of capital gains. This will increase the risk profile.”
“I thank the Senior Parliamentary Secretary for the very comprehensive answer. Can I just ask a clarification with regard to the safety of cyclists on the roads? There have been some good measures in place, but can more be done, not in terms of having a dedicated lane, but in terms of promoting their safety? As the SPS has rightly mentioned, where widening of footpaths or roads is possible, you can do that. But in cases where you cannot, are there any other measures to help safer riding on the roads for cyclists, especially in the heartlands? The second clarification I have is with regard to barrier-free access. I have heard the Senior Parliamentary Secretary on the rules, but observing from the towns, what is being done for enforcement of those rules because, whether you are talking about overhead bridges or barrier-free access paths, we can all agree that there has been an increase in terms of usage by cyclists as well as motorcyclists on these? For safety reasons, what more can be done for the enforcement side?”
“Mr Speaker, Sir, with regard to the lapses that were shared in the report of the COI, I think many will agree that they seem pretty fundamental. So, what confidence is there that there are no further lapses existing and how can we be sure that this is not systemic of the operations and procedures in WRDC?”
“However, if public transport is not viable, it will only be a matter of time before congestion resurfaces. Hence, the net impact would be increased costs. While we understand that it will take time to implement the various phases of the plan, in the short term, there can be fairly immediate measures taken to improve on the current connectivity of the bus system as well as the capacity of both the rail and bus systems while phasing in the cost increases more gradually. Another aspect that will require attention is how breakdowns in services are being managed. The impact of these disruptions has shown the increasing reliability of Singaporeans on the public transport system and the inter-dependence of the various services and the need for strong coordination to minimise the impact on services to commuters. While measures are in place to not only ensure that there are contingency plans when services break down, more care needs to be taken also on the currency and effectiveness of these plans to minimise the impact on users. Can the Minister share also on how taxis feature in the overall land transport plan and our public transport system? What policies are in place to support the intent and for the provision of reliable and affordable public transport? Are taxis seen as part of the solution of the problem? With an ageing population and as we are encouraging people to work longer and to stay engaged in the community, the public transport system must also be improved to meet the needs of elderly commuters. Can the Minister also share what measures are in place to make the public transport friendlier and affordable to elderly commuters?”
“Sir, the recent completion of the Ministry of Transport's Land Transport Review had the Ministry announced the plans to put the commuters' needs in the centre of public transport. By making bus travel a more attractive travel mode, by expanding the rail system and work management to keep our roads smooth flowing, these are necessary measures and provide clear and comprehensive measures to address the growing demand of the land transport system in Singapore, and are definitely welcomed. In my dialogues and walkabouts and interaction with residents, many support the plans and measures but have expressed concerns at the pace of the cost measures being implemented, while the improvements to the infrastructure and the capacity of the public transport system are being phased in. In 2007, there were seven new ERP gantries introduced and now there are plans in place for another 16 ERP gantries this year. This is a 29% increase in the number of gantries in 2008 and the base ERP rate would be increased from $1 to $2 and the increment would also be $1 instead of the current 60 cents. This increase in cost of road usage will not only impact residents but businesses. As Minister Lim had said, the overall objective was a policy shift from vehicle taxes from ownership to usage. By improving the bus and rail systems, the intent is to coax car owners to use the public transport system instead of driving. While recognising the need to control the increased number of vehicles on the road and the intensity of usage, unless the viable alternative options for public transport are in place, this will not be resolved and will just add an additional cost burden on both residents and businesses. Higher costs will definitely result in improvement in road usage and traffic conditions.”
“Sir, two clarifications. One is with regard to the lower employment rate for older women. Could I ask the Minister of State to clarify, for the 39% of jobs that the women are employed in, what kind of jobs are these? I think that will give us an insight as we look at encouraging women to come back to the workforce. What are the factors and the types of opportunities matching the skills base? The other clarification I would like to ask is with regard to WIS advance recovery. I agree with the principle that it was advance payment. However, WIS being a new scheme, and given the fact that this is the first payout and when the workers are looking at this, especially when we look at the segment of the workers that actually benefited from WIS, the understanding of the scheme may not have been as clear. So I would ask the Ministry to really consider, on the basis of goodwill for the first phase, the impact of the recovery because administratively it is also going to be fairly difficult, and we are talking about the lower income here. The CPF component is another factor, but to recover cash is pretty difficult. And, psychologically, I think the impact on that group, in terms of the motivation that we were talking about, getting people on WIS, may be higher than in terms of the disadvantages. So, I would like to ask the Ministry whether they can consider not recovering that particular payment, on goodwill, for this transition phase.”
“Can the Minister share with the House if there are plans to do this, so that it is possible to understand the right level of support that is needed for this group of workers? While contract and part-time workers provide flexibility to both organisations and employees, it can lead to anxieties and frustration for both workers and employers. In order to ensure that we continue to see our workers motivated, we need to ensure that we take care of them. So, Sir, I would like to make a suggestion. I would like to propose that the Ministry provide appropriate focal support for this group of employees and look at how to provide better employment terms for them. Facilitating Part-time Work in Singapore”
“And I was surprised to see that an individual had been working for this organisation for more than 10 years, had been paid the same salary for the last 10 years, no increment, did not benefit from the company's productivity or performance bonuses, although the company had performed very well over the last few years. She also had no reimbursement for medical or hospitalisation cost, although she was paid wages for MC and given hospitalisation leave. She does receive, I think, about $10 per month for medical charges. If this is representative of the significant proportion of employment terms for part-time workers, we will have challenges ensuring that workers stay motivated and continue to upgrade their skills or to maintain their productivity. So I would like to understand what is being done to encourage and provide the framework for fair employment for part-time employees. With the increasing trend of organisations hiring on contract terms both for lower wages as well as PMETs, how can we ensure that there are fair employment terms, especially for lower wage workers? What can be done to ensure that they have equitable and continuous Medisave and CPF contributions and what measures are put in place to get them to contribute to CPF as well as encourage their employers to contribute? As Minister Ng had said and reiterated just now, what we should do is to ensure that we get as many as possible into the CPF system so that they can benefit from CPF LIFE and WIS, etc. Sir, with contract and part-time workers forming a growing proportion of local employees, will MOM be investing more resources to understand the trends of employment and challenges that these segments face?”
“Sir, in 2007, contract workers stood at 12% of the total resident employment. This amounts to about 180,000 workers. Part-time workers also stood at about 100,000. I believe these figures will continue to rise given the increasing trend we are seeing of organisations hiring on contract terms for flexibility as well as the encouragement and the drive for the re-entry of women and older workers into the workforce. Over the past 10 years, women in the workforce have steadily increased from 580,000 in 1997 to 780,000 in 2007, representing a 33% increase. The number of older workers aged 50 and above has also increased steadily from 220,000 in 1997 to 470,000 in 2007, representing a 100% increase. We will continue to see an increase in the number of older workers as lifespan is projected to increase for Singaporeans and they are expected to live longer. With these changing demographics and potential increase and demand for contract and part-time employment, what is being done to ensure fair and conducive employment terms for both contract and part-time workers? Are our labour policies for contract and part-time employment updated to ensure that these workers' interests are protected and they stay motivated, their skills upgraded, to ensure increased productivity? I believe that more can be done for both contract and part-time workers. Let me give you a real example of why I said this. I took an existing part-time employment contract from a local organisation which hires quite a large workforce in Singapore.”
“In a report in 2007, online credit checking firm, EBCM, noted that small businesses in the UK are indeed faced with rising costs and increasing red tape which prevent them from focusing on what really matters for their business, meaning the efficient running of their businesses and customer service. As we drive our major initiatives locally, many companies are calling for pro-enterprise measures so that smaller companies can gain greater access to public projects. I would like to ask the Minister for Trade and Industry to share with us what pro-enterprise measures are in place to enable our local enterprises to seize the opportunity and grow locally while still striving in the global economy. What is being done to provide opportunities for SMEs to develop their businesses that will boost their competitiveness in the long run?”
“Mr Chairman, much has been discussed in the Budget debate on rising costs of doing business. This is not only a phenomenon facing Singapore businesses and businesses based in Singapore. However, based on the feedback received from small businesses through our dialogues, eg, a recent survey by the Singapore Chinese Chamber of Commerce and Industry, many are feeling the pressures of rising business costs and are concerned about the impact on their growth. Clearly, businesses understand the need for upgrading, longer-term development and innovation. What many fear is the sharp rise in costs and the erosion of the cost competitiveness in the global market. Many of our SMEs have plans or are diversifying their businesses overseas. Rising business costs, however, will impact the competitiveness of our SMEs and their ability to grow. Just a week ago, one of the industrial park manufacturers shared with me that he had just had a customer cancel an order with his company. The reason given was that Singapore products were getting too expensive due to our high cost and the weakening US dollar. This year's Budget encourages companies to invest and innovate and upgrade through the various training schemes for start-ups. It is important for our businesses to continue to innovate and upgrade. But beyond this, we need to also ensure that we enable our businesses to continue to grow and not lose hope in the light of strong competition and rising costs. For small businesses, investments in innovation for long term growth are the right pillars for success. However, they must still manage their short-term costs to stay in business. Many small businesses may be driving strong business growth, but sharp rises in business costs will impact their cash flow.”
“More can be done to promote the benefits of the use of electric hybrid as well as flexi-fuel public transport vehicles. Can the Minister also share on what is being done to help businesses look at new business opportunities presented, because I believe this would be the catalyst to drive new efficiencies? We are a small country and the impact we have globally, as Singapore drives our efforts, will be small. But it is important that as Singapore grows economically, we do it in an environmentally sustainable way such that we maintain the quality of living in Singapore. Given our size, dense population and lack of resources, we need to take a holistic approach as we look at the sources of energy consumption, water supply, living space, transportation networks and sources of pollution. People are and will continue to be our most important asset. If we are not able to maintain a high quality living environment, we will not be able to continue to retain Singaporeans as well as to attract others to Singapore and the talent that we require for economic growth and success will be impacted. We need to ensure that in our planning and development, we make it viable for businesses and people to make the right environmentally sustainable choices that it becomes a way of life. For businesses, it is a question of finding new business opportunities that are becoming available as a result of heightened environmental awareness and environmentally friendly technologies. So, what steps is the Ministry taking to take definitive steps to act now and start and, more importantly, drive impact and sustain the efforts? Climate Change”
“Mr Chairman, in January this year, PM Lee announced the setting up of a new Inter-Ministerial Committee on Sustainable Development. While the Inter-Ministerial Committee will focus in providing a national framework and strategy to achieve sustainable and high quality of living consistent with economic growth, and it will also seek to build new competencies to facilitate mind share across the public, private and people sectors, to make Singapore an eco hub. The question I have is: what are the specific steps for change that the Ministry is looking at to help businesses promote environmentally sustainable development and practices in a way that they manage their operations? There clearly is opportunity to drive policy changes and to help set the tone for businesses. Examples are more efficient use of energy, like air-conditioning, lighting, elevators, escalators, prevention of leakage and ceiling, especially in older buildings. It is easier to do this for new buildings, but more needs to be done for current buildings as well. Are there incentives for retrofitting of older buildings to achieve energy efficiency? One key area is the air-conditioning in our buildings and ceiling for leakages. I would like to ask the Ministry what steps is the Ministry taking to promote cleaner and renewable energy to help Singapore grow economically in an environmentally sustainable way. What are the short-term measures to steer change while driving for longer term impact within its own operations as well in setting the standards to do this? [Mr Deputy Speaker (Mr Matthias Yao Chih) in the Chair] 5.01 pm The upgrading of the public transport system will help provide opportunity to promote greater use of public transport and to drive for greener transport sector in Singapore.”
“Sir, I did also ask about the reward and recognition, not so much reward, but more recognition, because the Civil Service, as I have mentioned earlier, sets the tone as a forerunner in terms of the best practices and it will really be good if we talk about re-hiring of the older workers, not just in numbers, but in their contributions. As I have mentioned earlier, there is this perception that older workers tend to be a more difficult workforce to manage. But actually, they do bring a lot of values and benefits to the workforce as well. I think profiling them and bringing some of that up to public knowledge will also be a help to the rest of the organisations.”
“In the constant challenge of getting talent and to provide opportunities for greater workforce participation, what is being done in the civil service to enable the elderly to stay in their jobs and, more importantly, enjoy their work as well? The benefits include more than just having a larger workforce participation or accommodating employees' needs. Organisations, employers and society will benefit. There are many examples to show that organisations that have the ability to align work structures and practices with the needs of employees remain a significant source of de-stress for employees and their families and contribute to increased commitment and performance for companies. That said, the ability to do this will make our concept of working longer not just a reality but a success, and I would like to really hear what the civil service could help in doing this.”
“Sir, with the recent discussions about Singaporeans living longer, there has been emphasis to encourage companies to hire older workers and for older workers who can work to either stay at work or re-enter the workforce. Although it is not an accurate reflection on the value and benefits older workers bring to the workforce, general sentiments among organisations still tend to view hiring of older workers as having more constraints than those of a younger workforce. While I acknowledge the importance of talent renewal and infusion of new skills, public services in some countries, eg, Canada, have faced a significant loss of institutional knowledge and experience with the retirement of their public servants. To manage talent successfully, organisations must recognise that their talent strategies cannot rest solely on their top performers. Different things make different people of ages and gender want to work and remain in the organisation. Hence, there should be also added capabilities and encouragement to develop different solutions for this segment. I would like to ask the Minister: The Civil Service has been a forerunner in many innovations and leading practices and is one of the largest employers in Singapore, hiring more than 60,000 workers. What measures has the Civil Service taken to attract older talent as well as to encourage them to stay on or to retire later? Apart from encouraging the hiring and retention of older workers and rehiring of older workers, have there been programmes to recognise and reward the value provided by an experienced workforce? What has the trend been for the Civil Service in terms of hiring and retraining of older workers in the last year and how effective have the programmes been?”
“Minister Mentor recently spoke about the brain drain we are experiencing. Singapore loses 1,000 top talent yearly. Could it be that Singaporeans do not feel a strong identity to want to stay in Singapore? Could it be driven by the high cost of living? If so, then more can be done to create not only family bonds but the community network and the Singapore spirit. It is not only just about self-reliance but recognising that each has to carry his or her own weight while benefiting from the strength of the whole. Beyond just enabling Singaporeans to upgrade our skills, we must ensure that there continue to be opportunities and social mobility for all. To support this, we must continue to have strong economic growth. For our local enterprises, we must also ensure that they do not lose the sense of hope for businesses to succeed in the light of strong competition and rising business costs. This year's Budget emphasises on the lower-income and the elderly, and it serves as a reminder and a signal that those who need support and help in Singapore will not be forgotten. But we must still continue to build on our talent base, innovate and stay competitive. With that, Sir, I support the Budget. 12.59 pm”
“As for the consumer today, there are already punitive measures in place, such as the water-borne tax, and the emphasis could be to look at the way we live, work and play and make it convenient and a part of the way of life. We could provide incentives to promote the use of cleaner sources of energy, more environmentally-friendly products, changes to some of the way of life in terms of consumption habits, transportation choices and recycling. Before I end, I would like to touch on this point of hope. The Budget rightly recognises the long-term pillars of building and upgrading talent through continuing education and training through CET, as well as skills upgrading and encouraging innovation. The CET subsidies will now go beyond the vocational and professional training and extend to providing subsidies for part-time degree programmes, with the Government now meeting 40% of the cost of the programmes from our three publicly-funded universities and UniSIM. This will enable working professionals who have not benefited previously from Government-subsidised undergraduate education to tap on it for continuing education and enrichment. As Confucius said: "If you think in terms of a year, plant a seed. If you think in terms of 10 years, plant trees. If you think in terms of 100 years, educate the people." This education, however, cannot just be for the young. It must continue for all ages, especially now, as Singaporeans live longer. Minister Tharman emphasised the need to give hope to all Singaporeans through education. I agree with this. But there is one aspect that, although difficult to address, would be necessary to sustain this hope. How do we make the experience richer and more meaningful beyond the material hope?”
“These are the right principles. However, I have been receiving feedback from Singaporeans in my house-to-house visits as well as in dialogue sessions that the use of residential address as one of the criteria to determine if one is of lower-income may not always be a fair assessment. For example, an individual may or may not own any property and live with a relative in a private property and, hence, be assessed as being better off than one who lives in a HDB flat and owns a private property as well. There is not an easy answer to this. But it is an area that will require some refinement in policy, should this continue to be used as the basis for benefit sharing in future. Riding the waves of surplus, it would have been an appropriate time to also have channelled funds to support incentives for companies to adopt environmentally-sustainable development and practices. This would have been a boost to setting the tone for businesses on the efficient use of resources and cleaner energy sources to achieve a quality of living environment consistent with the rapid growth we are seeing. A simple example would be air-conditioning in our buildings. Have you ever noticed how cold it can get in our office buildings? Better temperature management, prevention of leakage and sealing, especially in older buildings, lighting, elevators, and escalators are areas to consider. There could be incentives for also retrofitting of older buildings for energy efficiency. It is always easier to look at the new buildings or look at buildings which are in the process of renovation, but incentives could be given to also encourage older buildings to be retrofitted.”
“For example, office rentals have increased 56% in 2007, industrial rentals by 30%, oil prices by 50% and commodity prices by 31%. A rental rebate or even a reduction of the Workers' Levy would have directly helped provide some relief for businesses. Considering that SMEs form 99% of all enterprises in Singapore and employ 62% of our workforce, any such benefit would have had a significant impact. There has been much discussion about the surplus and how much could have been shared. The other debate is whether more could have been done to manage the rising cost better. Given the strong economic growth, could the various initiatives introduced have been better timed - for example, the GST increase, the taxi fare changes, public transport fare increases for both SMRT and buses, rise in the skilled foreign workers' levy, consultation fee hikes at public hospitals, specialist clinics and polyclinics, increases in hospital A&E charges, just to name a few of the increases experienced in 2007. Sir, Minister Tharman mentioned that the amendment to the constitutional framework to enable drawing more of the Investment Income from the Reserves to enhance tax competitiveness is definitely a welcome move and we look forward to understanding the details of the amendments and, I would add that, as we do this, focus should be given to enhance both the competitiveness of our local enterprises as well as to help manage rising costs. The Government's surplus-sharing package in the Budget, from Growth Dividends to top-ups of Medisave accounts and the Post-Secondary Education Account, as well as the personal income tax rebate, are again a welcome measure. But the basis for the redistribution of the benefits back to Singaporeans is giving more to the needy and the elderly.”
“Mr Speaker, Sir, thank you for allowing me to speak. I rise in support of the Budget for Financial Year 2008/09 presented by Minister Tharman. The Budget this year has heard the concerns of the ground and addresses the rising cost of living and inflation, with focus rightly on helping especially the lower-income and the elderly cope with inflation. Given the growing income gap, this is necessary. If the income gap widens too much, this will not only impact the lower income but could have implications for social cohesion. The Budget is also forward-looking and focuses on creating new advantages and opportunities to enable Singapore to continue to compete in the global economy with emphasis on nurturing talent and skills, making innovation pervasive and building a resilient community to enhancing financial security in retirement. The tax changes introduced, eg, the liberalisation of the Start-up Exemption Scheme to encourage entrepreneurship, and the tax incentives for fixtures and fittings to help small businesses upgrade, are indeed welcomed. However, given the larger than expected surplus this year, there is a desire for more. Given the rate of rising business costs, from rental to cost of raw material and labour, driven by the high growth and competitive demands for these resources, many feel that more could have been done in this year's Budget to support our local SMEs as well as businesses. Although this may seem a short-term measure, and some may fear that it would create a crutch mentality, however, given the quantum of the cost increases businesses are facing, our small businesses especially are seeking for help to manage the rapidly rising costs.”
“While continuing to provide for the flexibility, I would however encourage that the Ministry initiate and support efforts for affordable insurance products for small companies to take the necessary coverage for their employees. Employers are still liable for payment of compensation to the employees regardless of whether or not they have purchased insurance. With affordable insurance products, this would encourage employers to insure their employees and this will not only help them plan and manage their business cost and liability but also ensure that employees actually receive timely payouts. Should there be an insurance scheme for smaller companies? I guess that is the question I am begging to ask here. And if this can be taken as a group, it will help to drive economies of scale and, hence, more affordable insurance products can be offered to smaller companies. I think many of us know that, for the larger companies today, many already have put their employees under insurance schemes. Therefore, the benefits, as you will know, are actually wider than what is covered under the Workmen's Compensation. So the cost increase will not be on them, but the actual cost increase will really be on the smaller companies. More importantly, it will also affect the effectiveness of whether employees actually get compensated. Sir, I support the amendments to the Workmen's Compensation Act. 4.40 pm”
“With the amendments, I am sure employers will also welcome the changes that support the efficiency and effectiveness of the process and, hence, reduce the administrative burden on them, eg, the streamlining of accident reporting requirements requiring the employee to decide earlier in the claim's process the preferred route of recourse he or she wishes to take. However, given the expanded coverage of the Act to allow all employees, except those excluded classes of employees as specified in the Fourth Schedule, and the relaxation of the compensation criteria, employers may be concerned with the potential increase in the fraudulent claims by employees. While there may not be a high number of fraudulent cases today, the extended coverage could mean a larger number of fraudulent cases for employers, given that the coverage now is all employees. This is about an increase of 70% from the current coverage. This could also imply an increase in the cost of burden on the employers and administrators to manage the cases. As one of the principles of the amendments to the Bill is to deter fraudulent cases, can the Ministry share the measures and the process that are in place to minimise the potential fraudulent claims by employees, apart from the proposed creation of a new offence for making a fraudulent case and the proposed penalty? I understand and am glad to see that the Ministry has allowed for flexibility for employers to decide on the risk with the cost of insurance and has not required compulsory insurance for employees who are newly covered under the Act, ie, those with the monthly earnings of above $1,600, as these non-manual employees are subjected to lower workplace risks.”
“What it means is that, where an employee is employed under contract of service with two or more employers, his monthly earnings can be computed as if his earnings under all such contracts were earnings in the employment of the employer for whom he was working at the time of the accident, but excluding earnings from contract of service that the last mentioned employer does not know. The proposed amendment relaxes the compensation criteria for employees with multiple jobs in either the same or different industries. This is a good change as we see the increased trending of contract workers who are holding multiple jobs for either financial reasons or the need for flexibility of time due to family or personal circumstances. MOS did share that the number of employees holding dual jobs is small currently. I would ask the Ministry if there is knowledge of what proportion of this group is from the lower income and who hold dual jobs to supplement their income. Currently, how many actually do declare to the employers that they hold dual jobs? This change may or may not benefit them if they continue not to disclose their other employment contracts to their employers for fear that their employers may not approve. If this is the case, then the amendment will not serve the purpose it was intended to. This would also mean that conscientious employers who do make it a point to know the employment contracts of their employees would actually have greater liability with this change. How would the Ministry ensure that employees are not adversely impacted from this amendment in the scenarios that I have just mentioned? And will there be measures for the Ministry to recognise and reward diligent employers who do the right things for their employees?”
“Mr Speaker, Sir, thank you for allowing me to speak on the Workmen's Compensation Amendment Bill. People are an important asset to Singapore's progress and our economy. I rise in support of the amendments to the Workmen's Compensation Act as the intended principles are to safeguard the interests of both injured employees and the employers, and to ease the administrative process without compromising the integrity of the system and the Act. Let me just touch on the point about enhancing the compensation levels and amounts. The enhancement is timely to keep up with the changes in wages as the last revision was done in 1995. I applaud the fact that, apart from the revision to the minimum and maximum compensation amount limits for both death and permanent incapacity, there is an increase of the age multiplier factors in the calculation of the compensation amount. This is effective in giving increased recognition to the earning capacity, especially of those 40 and below. Apart from enhancing the efficiency and effectiveness of the process, I am glad to see that the amendments also look to safeguarding the interests of the employers. For example, with the amendments, employers will be discharged of liability for injury directly attributable to the influence of alcohol or a drug not prescribed by a doctor. Currently, employers are held liable if such an injury results in death or permanent incapacity of 50% or more. There are a few areas that I would like to highlight for attention and I hope the Ministry of Manpower will be able to address them. With the proposed changes in the new section 8, the intent is to provide compensation for the employee's total earning caused by an accident arising out of or during the course of his employment.”
“Sir, I thank the Minister for the answer to my question. I agree with him that the green car rebate of 40% definitely has had an impact on the numbers. If we look at it, as he said, it just narrows the gap. But what is being done because, at the end of the day, it is just narrowing the gap. But if we look at the road tax, it is actually still a double penalty because it is on power consumption. The hybrid car needs to be more powerful in order to be able to function. So they need to be more efficient. The road tax is either on power output or the capacity. In the hybrid car case, it is the power output. So there is a penalty on hybrid car owners, because the cost is almost double.”
“Many do accept that there is a need for the umbrella, ie, retirement planning and having secure retirement funds. However, some feel that some flexibility should be given to when and how we use the umbrella and, finally, whether we have ownership of that umbrella. 5.44 pm”
“If we believe that retirement planning is important, then this is a sizeable proportion of the population that really needs to be taken care of who cannot participate in the scheme because they are not in the workforce. Our colleague, Ms Cham Hui Fong, actually shared that maybe we should make it compulsory for husbands, if they are able to meet the Minimum Sum, to contribute to their wives' annuity payment. That may be a good suggestion that we can consider because it would not be too much to ask. The male participation rate, even though it was declining for those in the later age groups, is still about 81.9%. So the discrepancy is quite huge. The last point that I would like to mention is what could go wrong. What are the risks in there? Some of my colleagues have already shared whether this scheme is sustainable. A recent example is that of the Japan pension system. I know our system will be different. But the Japan pension system and the US 401k investments show the need for risk management to prevent a scenario where annuity members may not receive the amount of funds as promised when they expect it. That is an area of consideration that we hope will also be shared. For example, will this risk management model be sustainable and be really risk-free? Will the percentages, that floor of 2.5% mentioned earlier, be sustainable? In conclusion, if I could summarise with an analogy of the umbrella which I used previously in this House and which our colleague, Dr Ahmad Magad, also shared, when we provide an umbrella, some may view it as shelter and be grateful for it; others may otherwise see it as blocking their view. The challenge is how to strike a balance in the approach to retirement planning.”
“Sir, while the annuities provide the regular payout post age 85, I believe there are also complementary programmes in other areas that will need to be taken into consideration, such as health services, transportation, etc, which I would not elaborate. But I think those need to be handled in complementarity. The other question, of course, is whether the annuity scheme will work. Can all CPF members afford the annuity? What happens if CPF members are unable to meet the Minimum Sum? This is the very group that will need it. In the CPF 2006 Annual Report, it was indicated that approximately 36,000 active CPF members aged 50-55 years of age had total balances of less than the Minimum Sum. The total balances included residential investment amounts as well. Although this is not a large number, the question still needs to be answered. There is also the question of the inclusion of retirement planning of those who are not in the workforce. For example, earlier in this House, we talked about women who have left the workforce to take care of children and family members. This is an important area to consider, given that the workforce participation rate of women is 54.3% in 2006. Hence, women out of the workforce are not a small proportion. Women, on average, as indicated by many, also live longer. The female workforce participation rate in 2006 was comparable to that of males in the age group 20-29. However, from age group 30-34, it was 77%, and we see a steady decline, whilst that for the men stayed in the high 90% range. Between 40-44 years of age, participation dropped to 67.7%, sharply dropping to 44.7% after 55. It is not just at the later years, but all through from 30, all the way, we are seeing the decline.”
“Sir, making the CPF savings last for life and also the point about compulsory annuity for those below 50 years of age, from the various channels of feedback, the question asked by many is: why make the annuity compulsory? This is a shift from each having the responsibility to plan for his own retirement to one that is asking every one to pool their resources to share the risks. Many see this as unfair, as it would mean that if they do not live past 85 years of age, they would not have benefited from the scheme and that their monies would have been locked in the scheme. So can flexibility be offered in the scheme, in terms of the type of plans? It is heartening to hear from Minister Ng that a committee will be formed to study and recommend the best schemes, taking feedback from various industry experts. Minister Ng also mentioned that flexibility and options will be offered based on risk-sharing and also accommodating the different options, like the stretching out of the payment as well as early opting-in. I am pleased to note what Minister Ng has also shared, that those with annuities will also be eligible to be considered for the D- and V-Bonuses. The questions I have are: how will this work? Would this also be applicable to those with participating insurance plans as well? Another sentiment that was shared about the annuities was why 85? I have seen all the statistics, that probably that is the age after which people would need help. But could they not start earlier, for example, around 75 or 80? I guess that would also have impact on the actual premiums and the amounts to be paid. So those are considerations. Maybe, there will be options given around them when the committee gets together.”
“There are specific industries and business segments that actually recognise the value-add of experienced workers. The Government can work with industry associations to promote these businesses as exemplary and this will send a strong signal to both employers and employees. I think the punitive measures are important, but I also think that the ability to showcase and really bring these positive messages up are just as important. As one of the members from our GPC Resource Panel for Trade and Industry puts it very nicely, "People do not magically lose their skills and abilities at some fixed age. These workers should continue to be rewarded accordingly for their contributions despite being a day older when they reach 62." While recognising that there will be those who need to be deployed to alternative positions due to health or personal preferences with appropriate adjustments in salary and other benefits, some have expressed that the implementation of the re-employment legislation should also be, if possible, put in earlier than 2012. That is a consideration, given all the work that has already been done, whether that is also a possibility. Another feedback is that the Government, being the largest employer, should take the lead in the rehiring of older workers, to set the example for the private sector. It was shared earlier in this House that that is already done. But I think that there is more that can be done, as well as more that can be shared, with regard to what is being done in this phase. There will also be a need for programmes around training, to ready older workers for re-employment opportunities.”
“But I want to actually touch on the point that I do not think the financial aspects are going to be sufficient. It is more than that that needs to be done because the proposed CPF changes on drawing down of CPF savings later, from 62 to 65 years of age, to enable CPF savings to last longer, hinges on the very fact that people must be able to continue to work and to work longer. Hence, the need for the re-employment legislation. That is good. But delaying the withdrawal of the CPF Minimum Sum payout to age 65, as seen by some, could be also depriving those who do not have work or are unable for whatever reasons to work to actually get the financial support they need when they need it. I am quite sure my fellow colleagues here in their various MPS sessions will tell you, even today, many of our residents come and say, "Why do I need to plan for the future when I cannot even get past today?" So I think those are some of the things that we will really need to look at, those who really need it, how are they going to handle this delay in their withdrawals. The feedback we have received from residents, grassroots and even our GPC Resource Panels also indicates a concern on the actual manifestation of the re-employment of older workers. I know it has been lots of work that are already done with employers. I applaud the efforts and I am glad to see the progress there. But there is a worry that employers may abuse the system by early termination of the services of those who are nearing the retirement age when that legislation actually comes into place. Or that workers will be asked to do the same work for less once they reach the age of 62. This is where the Government can assist.”
“If pro-active plans are not made, as Minister Ng has shared on the details of the ageing population, plus the declining support ratio, this does have an adverse impact on the overall economy and the quality of life. As Abraham Lincoln so nicely put it, "you cannot escape the responsibility of tomorrow by evading it today". So, in terms of the actual support for these policies, there is a general sense that we need them. It is now the "how". So let us go on to the point about whether the proposed CPF changes are the best approach to achieve the desired retirement plan for Singaporeans. The fundamental principle of the proposed changes assumes a national approach that requires every individual to take responsibility for planning for his retirement. So the general sentiment is: should the Government also not help in the scheme? What is coming across is that individuals are now asked to take accountability for their retirement funds, which I think people can accept. But the fundamental change is also the fact that there is a request now and there is shift to say we should also share the risks by pooling our funds together. And that is something that will take some time, in terms of acceptance, because it is a fairly different concept and approach from what we have previously been advocating. On that note, also on the question of how the Government is supporting the scheme, Minister Ng, in his Statement, did show that the financial aspects will definitely be covered. For example, both in the WIS as well as the higher CPF interest rates, $400 million and $700 million respectively, would be put in yearly. That is not a small amount. So the Government financially is putting in that so-called share in the pie. Also, the one-off D- and V-Bonuses of another $1.2 billion.”
“Mr Deputy Speaker, Sir, thank you for allowing me to speak on this topic. I support the CPF reforms and the other measures for a secure retirement shared by Minister Ng Eng Hen in his Ministerial Statement. I would like to still share what I am hearing from my interactions with residents and grassroots on the subject to ensure that these feedbacks are taken into consideration on the execution of the measures. The feedbacks centre around two common threads, ie, the need for retirement planning and the point about whether the planned CPF reforms are the best solution for Singapore in achieving the desired retirement plan. The three thrusts of CPF reforms that Minister Ng had shared were around the later draw-down on CPF savings, covering the risks of those living longer than expected when making CPF savings last for life, hence some form of compulsory annuity for those below 50 years of age that they have to contribute, and improving the returns on CPF savings, that 1% increase on the first $60,000 in the CPF account. Sir, let me touch on the point about the need for retirement planning. I think there is a general sense of disbelief that we are all going to live so long. But at the same time, in the feedback that I have received, there is a recognition by many that our population is ageing and it is timely that the Government has brought up the importance of the need for retirement planning. Although this may not be a popular initiative, I do applaud the Government for being forward-looking and willing to address this issue which will not actually impact us in the near term. But it is important as it has broad implications for the future.”
“Thank you for the comprehensive reply. Can I just ask a supplementary question with regard to the trial that is happening in Tampines? I am not sure whether the Minister of State is aware that, with that trial, it has also resulted in other housing estates and cyclists assuming that the trial is happening across Singapore, because we are starting to see that. In that aspect, I think it may be necessary to also look at how we can educate those in the other estates in terms of road sharing because there are no wardens in these other estates. And in terms of educating the people on trial, is there anything that can be done? I think education is one of the factors here, and looking at the feasibility of those other estates as well, because I do understand that it is becoming more rampant in terms of people assuming that the trials are all around Singapore.”
“But that requires the individual household to make the effort. We take the Member's point and we will do our best to try and facilitate as much as possible.”
“Sir, I would like to thank the Minister for the comprehensive answer to the Questions. With regard to the bins or bin sites, can more be done in terms of the actual structure and in making them more user-friendly? If you look into some of these bins today, many of them are not sorted even though there is labelling for sorting. In terms of public education, can more be done to what is recyclable, even for plastic bottles, as not all of them are recyclable? Assoc. Prof. Dr Yaacob Ibrahim: Sir, I agree with the Member that at the end of the day, for a change of behaviour to happen, we have to facilitate it by having very good structures which are friendly. This is left to the public waste collectors to design. Some will use bins and some will use plastic bags. We constantly give feedback to the public waste collectors and others who are involved in the recycling programme so that they can come up with more innovative ideas. But at the end of the day, the individual also must make the effort and I agree with the Member that public education is important. Finally, it is sorting at source which is important for the programme to succeed. Based on our results so far, our recycling rate now stands at 51% which is very good compared with 40% a couple of years ago. What it means is that our efforts are beginning to bear fruits but for us to make that leap I think more needs to be done in terms of educating the households, especially people who are at home would have to try and sort it out because the frequency is only once a fortnight. But having said that, Sir, there are recycling bins now available all over the island and they do not have to wait for the public waste collectors to come and collect them. They can actually do it themselves.”
“Sir, regarding PMETs as well as re-employability of older workers, is there also tracking of salary and are they worse off if they are doing similar types of jobs?”