John Chen Seow Phun
Singapore
“Sir, Singapore has signed FTAs with a number of countries, including the developed nations, such as the US and Japan. These FTAs give us better access to these developed markets compared to other countries for goods that need the rules of origin.”
“Sir, I thank the Minister for asking the HDB to relook at the case I brought up, but I hope that he would not rule out providing the same loan amount to the family. I understand the need for credit assessment policy, and so on. But I think the policy should not be applied blindly.”
“It can also be stipulated that the grants can only be used to pay part of their mortgage loan monthly. I think this will go a long way in helping these families pay for their flats. I hope the Minister can look into this and see whether these families can be given such help.”
“My point is that the Minister should reconsider this case and exercise flexibility, so that the family will be helped. Otherwise, if the family was asked to sell their flat, it could be negative equity and the problem would come back to HDB. And HDB would be owed money and I do not think that is good for HDB as well.”
“We need to come up with a regular mechanism where older and lower income workers can benefit without the pitfalls of a crutch mentality. I think, in this regard, the Government has not spent enough time or thought to look into what other mechanisms that we can have.”
“On the other hand, at best, we get one Singapore pavilion with a dozen or so companies, and that is about it. If we are really serious with our globalisation effort, our Government agencies must put in more resources to encourage more companies to participate in such events.”
The complete record
Every one of 741 lines we hold for John Chen Seow Phun, in date order, each linked to its source. Free to read, in full, without an account. Page 13 of 15.
“Sir, when the RECORD Committee was deliberating on the issue of a symbolic annual allowance for reservists, a number of reservists who sat on the Committee felt strongly that not only an allowance should be given, it should also be given through tax relief. We felt this way because, as we all know, most people treat the tax relief they are entitled to seriously when they come to filing their annual income tax returns. Tax relief is therefore one of the best ways to tell our reservists, once a year, without fail, that we recognise and appreciate their service to the nation. It is like sending roses to a girlfriend or a wife regularly. This should be the way we view this tax relief proposal.”
“Even our basic HDB homes are comparatively better than what most people in Taiwan, Hong Kong and Japan can afford. While we should continue to provide for these good quality basic needs, Government cannot subsidise the better things in life without undermining our objective to encourage our people to excel. This should be the way Government structures its policy on subsidies. Subsidies for A and B1 class hospital beds are being pruned. The same principle should apply to public housing. Subsidies for higher-end housing should therefore see a reduction or be removed. In education, the guiding principle must be that no child who is capable should be deprived of the best education possible, regardless of his family background. However, the nation's financial resources are limited and therefore must be allocated fairly. People who benefit from better education must be made to pay for it if they can afford. Hence, higher fees in independent schools and tertiary institutions. But students who cannot afford such payments can apply for study grants or loans from a variety of sources. In addition, scholarships are offered to motivate Singaporeans to realise their full potential. What better approach to providing Government subsidies is there? Sir, allow me to say a few words on tax reliefs for reservists. I applaud MINDEF for heeding one of the major recomendations of the RECORD Committee by proposing tax reliefs for reservists. The amounts of $1,000 and $500 are not insignificant compared with the personal relief of $2,000. They are also structured in such a way that in a steady state, those reservists who serve longer will get more relief.”
“It is therefore better for us to go for a more sustainable growth rate and lower inflation. This means growth based on higher value-added activities, high productivity and better utilisation of resources - land resources, financial and human resources. Sir, Mr Ling How Doong accused the Government of accumulating massive reserves and wanted the Government to specify a limit to the yearly surplus. First, how can our reserves of about $55 billion be considered as massive if it only represents about five months of our total imports, considering that we do not have any natural resources? Second, he wanted a limit to the yearly surplus to be specified. How big should that limit be? If the surplus exceeds that limit, does it mean that we should then spend the excess unnecessarily? I say we spend our revenue wisely. Give rebates to Singaporeans, if necessary, such as the proposed one-off rebate of 5% for personal income tax and rebate for service and conservancy charges and put whatever surplus we have into the reserves. Mr Ling thinks that we do not subsidise enough in investing in our people and that we consider clamouring for more subsidies is bad. In fact, the Government not only subsidizes education, health care and public housing, but is proposing to increase its level of financial assistance through Edusave, Medifund and upgrading of HDB flats. Indeed, such subsidies are crucial to ensure that the basic necessities of life are extended to all Singaporeans. They also serve to maximise the potential of our people. For example, our children nowadays receive good education at nominal fees. Singaporeans who go to subsidised hospital wards receive better medical treatment than what is provided in public hospitals in many developed countries.”
“Mr Speaker, Sir, Mr Chiam yesterday quoted the 8.6% economic growth of South Korea in 1991 and commented that it did better than Singapore despite its internal political problems. The truth is that South Korea's growth last year was led by strong domestic demand, in particular consumption and construction. Its economy continues to suffer from structural problems such as high inflation, weakening competitiveness of exports and a widening trade deficit. Its trade deficit rose to a record high of US$9.7 billion, double that of its 1990 figure. And its inflation rate for 1991 was 9.7%, the highest in 10 years. The South Korean Government is now trying to correct these problems. Does Mr Chiam want us to follow South Korea? And if he thinks that South Korea is a better place than Singapore, perhaps he may want to consider emigrating there. Mr Chiam See Tong rose ---”
“It therefore also serves to send a strong signal to smokers that smoking is no good because it harms both the smokers and those who are around. It would be interesting to know just what percentage of the population actually smokes, say, for the last five years and how much has the figure dropped since the Government stepped up its anti-smoking campaign. In fact, one of my friends who is a smoker told me that he was in favour of these prohibition measures because they had helped him to cut down on his smoking. I am pleased to note that we are amending the requirements on signs to inform the public of smoking prohibition so that the wording can be toned down and made to sound less harsh. I feel that many people nowadays would agree that it is far preferable to be exhortative and educational in the tone that we adopt, rather than threatening and severe. Sir, I support the Bill.”
“Mr Speaker, Sir, I would like to express my support for the Bill governing the prohibition of smoking in certain places. The primary objective of this legislation is to protect the health of non-smokers. In this regard, would the Minister tell us how many people have been caught violating the existing smoking prohibition, say, for the past five years, where these offences were committed, how they were caught and whether the Ministry had to step up its level of enforcement over the same period? The answers to these questions would help us assess the effectiveness of the legislation and thereby help us to improve it. One of the important amendments in this Bill before us is to impose a duty on a manager of a specified place or an operator of a specified public service vehicle to help in enforcing the law. The provisions, I believe, will be effective in curbing smoking activities in these places. At the same time, these provisions are fair, because they never require the manager or the operator to immediately report to the authority once they discover that a person smokes in a specified place or vehicle. Instead, they require them to first inform the offender of the law and ask such person to cease smoking or to leave the place. Only when these actions fail that they are required to seek the assistance of the authority. Sir, the Bill also enables the Minister to prohibit smoking in specified public service vehicles. May I ask the Minister what vehicles he intends to gazette soon after the passing of this Bill and whether such vehicles also cover passenger aircraft, sea craft and tourist coaches? Sir, this legislation is part of our anti-smoking campaign.”
“Question put, and agreed to. Resolved, That the following Address in reply to the Speech of the President be agreed to:- "We, the Parliament of the Republic of Singapore, express our thanks to the President for the Speech which he delivered on behalf of the Government at the Opening of the First Session of this Parliament." RECLAMATION (PULAU UBIN/PULAU TEKONG KECHIL)”
“Mr Deputy Speaker, Sir, after the Prime Minister's speech, I feel that it is quite redundant for me to say anything more, except to say that the debate in the last four days, participated by more than 40 Members in this House, has contributed immensely to our search for a consensus on what course Singaporeans should take if the country is to continue to progress and prosper in the Next Lap. Sir, there is one crucial point that we should all know and I want to emphasize. That is, we can do well only if there is national unity. Otherwise, what we say and the programmes that we have will not result in the overall progress of our society. Many Members have spoken on this subject. We need to continue to build consensus. We need to strengthen the bond among Singaporeans. We need the more able to step forward to show concern for the others. In conclusion, I would like to quote the words of the Prime Minister which inspire me very much when he said at the swearing-in ceremony on 28th November 1990. He said: 'The torch has passed from one generation of runners to the next, but the race continues. I will use the collective talents of my colleagues and the combined energies of all citizens to help the Singapore team stay ahead. Singapore can do well only if her good sons and daughters are prepared to dedicate themselves to help others. I shall rally them to serve the country. For if they do not come forward, what future will we have? I therefore call upon my fellow citizens to join me to run the Next Lap together.' Sir, it remains only for me to thank hon. Members for actively contributing to this debate, and also to thank you, Mr Deputy Speaker, and, of course, Mr Speaker, for your great patience in presiding over this 4-day debate. Much obliged, Sir. [Applause].”
“As a nation, we have managed to overcome obstacles more daunting than these before. It is crucial that we also succeed in this most worthwhile endeavour. Sir, I beg to move. Question proposed.”
“Getting the community leaders involved in a committee to assess applications to Medifund is therefore a good idea. It will certainly improve the image and standing of community leaders and help build a more caring and closely knit community. The promotion of healthy lifestyles is an important recommendation of the Review Committee on National Health Policies, headed by Dr Aline Wong. It will greatly help us in our search for a long-term solution for our health care problems. A healthy nation maximises the potential of its people. The best way to keep medical costs in check is to get people to stay healthy. A healthy lifestyle would also increase people's chances of leading longer, happier lives for their own sake and that of their families. The policies to support this major national effort must necessarily be multi-faceted, affecting people's lives at school, in National Service, at the workplace, and even at home. It would require the cooperation of teachers, parents, Government officers, employers and unions. To motivate an individual to keep fit and stay healthy, knowledge about how one's own lifestyle will affect one's own health is absolutely necessary. Therefore, awareness must first be created. The role of the mass media in this is essential. The Government should also ensure that regularly updated health information be made easily accessible to all. The Ministry of Education has announced its Trim and Fit (or 'TAF') scheme for students in schools and tertiary institutions. I am sure we will continue to hear from more Ministries and organisations on their health promotion programmes. The achievement of all these goals will not be easy. It will require many years of constant effort.”
“A 30% across-the-board increase without consideration of such factors is therefore unfair. Many shopkeepers find it very difficult to make ends meet as rentals already account for 30% to 50% of their operating expenditure. The rent increases will thus erode their profit margins, thus hindering their efforts to modernise. Fearing further rental hikes in future, many shopowners also express their desire to purchase their shops as soon as possible. It is excellent that HDB has decided to sell most of the shophouses to the tenants at market values with a discount. HDB should determine the market values fairly and provide loans at affordable terms to shopowners. Sir, the subject of Health Care is close to everybody's heart. No nation in the world has found the solution for containing ever increasing health care costs. If they have, it is most likely to be at the expense of health care quality. Many developed countries are experiencing serious difficulties in meeting health care demand. We are trying our best to tackle our problems without falling into the pitfalls which others have experienced. We should ensure that the subsidised rates for Class B2 and C wards continue to be affordable to the low income group. Perhaps the level of subsidy for treatment in these wards should not be fixed and should vary according to the income level of the patients so that the poorer patients will pay even less. That will be a great relief to them. The Medifund scheme is an additional safety net, to help the older Singaporeans who may not have Medisave and those who do not have sufficient Medisave. Obviously, it should only be used to provide for subsidised patients. When welfare schemes are directly administered by civil servants, they often become impersonal.”
“The rapid shifts in technology will dictate that all products, be they high-tech or low-tech, be increasingly produced with high-tech processes. Unless our workers are constantly trained and retrained, new high-tech processes cannot be adopted. However, many employers are not interested in training their workers because they take a short-term view of the immediate costs. Some workers may not want to attend training during working hours because of loss of income. In view of the urgency of skills upgrading, and the fact that both the companies and the workers will benefit from it, perhaps the National Wages Council, being a high-level tripartite body, should widen its scope and make specific recommendations on training such as the average number of days for training per employee per year and employer's expenditure on training. Sir, HDB is doing a good job in building better and better flats in the newer housing estates. The upgrading programme will also give an all-round improvement in the living environment for many HDB residents. I have seen the pilot upgrading project and am confident that the programme is workable. HDB residents should seize this opportunity to increase the value of their flats. Many shopkeepers, however, are unhappy over the increase in rentals for HDB shop premises. They are against using the highest successful bid as a yardstick for determining rental in a particular town. Some areas, such as those closer to an MRT line or a bus stop, could attract business more successfully than those that are a distance away. In fact, in my constituency, Hong Kah North, and within the same neighbourhood, some shops in a particular sector have changed hands three or four times in a period of 5 to 6 years.”
“I think awarding scholarships is significant because we will then be sending a strong signal to all students that if they do well, they will be honoured. I am glad that scholarships are also extended to non-independent school students. Sir, Dr Lee Siew-Choh, the former NCMP in this House, in his speech on the debate on the last President's Address, commented on the Edusave scheme, and I quote from Hansard [Vol. 57, Col. 168]: "If the intention is indeed to help students, would not the funds be better channelled to improve education in general and to better equip and update all schools, so that every student will be better served with a more rounded education?". Similar views have also been expressed by others. The Edusave scheme will now make annual grants to Government and Government-aided schools. These examples, plus many others, show that the Government is indeed interested in people's views, even if they are from the Opposition, and will incorporate them if they help. How then can some people accuse the Government of insincerity? Why should they be angry when the Government does not adopt their suggestions? This is simply not fair to the Government. Sir, the fast pace of change in our economic development has left behind a large number of mature workers who have missed the opportunity of a good education in earlier days. They find it very hard to adjust to new circumstances. Independent schools and Edusave cater only to their children's future. But they need help now to earn a better living. We must step up our assistance to them in upgrading their skills. There is also an urgency in constantly training and retraining our workers.”
“There is no denying that. Privatisation generates competition and hopefully brings prices down. Consumption tax, with a corresponding reduction of income tax, encourages production and discourages over-spending. But these measures may result in greater income disparities. We must be careful that this is not allowed to occur to such an extent that the resulting social tensions become a destabilising factor. At this point, I would like to quote from a 1975 Confederation of British Industry report entitled "The Responsibility of the British Public Company". It reads as follows: "While law establishes the minimum standards of conduct with which a company must comply ..., a company like a person must be recognised as having functions, duties and moral obligations that go beyond the pursuit of profit and the specific requirements of legisation." This code of conduct should be embraced by all enterprises and individuals. In this way, social tensions will be minimised and our society will become more closely knit. Mr Speaker, Sir, let me now turn to the various measures contained in the President's Address. On education, I am glad to note that we are now helping students in the non-independent schools to level up without pulling back the development of the independent schools. The modifications in the Edusave scheme are the manifestation and result of Government consulting and obtaining feedback from the people. For instance, in a Feedback Unit dialogue I attended sometime ago, some suggested giving scholarships to independent school students because some families might not want to apply for financial assistance due to their pride.”
“That in turn means that more taxes would be needed because of the increase in consumption. And that means we are actually less well-off. Subsidising consumption will encourage spending and waste. It will also create demand for more. That is not good for us. I was therefore surprised to read recently that a writer to the Forum page actually called on Singaporeans to spend, spend and spend to prime the economy. That is precisely what the Americans have been doing. Look at where they are now. Do we want to deplete our savings and reserves unnecessarily? However, many Singaporeans are fearful of the Government's intention to privatise statutory boards such as the PUB and Telecom. They fear that these companies will want to make profits and that therefore prices will escalate. These fears are not totally unfounded. If the intention of the Government is to enable these statutory boards to be subject to market forces and function as efficiently as possible, then perhaps corporatisation is sufficient. Why do I say that? In privatising, it is natural that shareholders expect the company to make profits. Otherwise, why would they want to buy the shares? In corporatising, the ownership is still with the Government, which owes it to the people to keep prices low, while not incurring any losses. When the provision of these services is monopolistic, this is all the more crucial. This is especially important when the functions of these statutory boards are to provide basic necessities of living. Any savings that can be passed on to the people may not mean much to the higher income group, but to those in the low income group, it means a substantial amount. Sir, privatisation and the introduction of a consumption tax can help us to develop a more efficient economy.”
“While many Singaporeans have become increasingly affluent over many years of economic prosperity, it is equally true that there is still a segment of our society that lives below a level compatible with the level of prosperity experienced by so many Singaporeans. And it is to this group of people in particular that we must cater; for if we fail to do this, the Next Lap will not be run by all. Some may just give up the ghost and become social 'dropouts'. And that can only work to Singapore's detriment in the long term. The President's Address was thus timely and appropriate as much of it addressed the needs of the less socially mobile, of those who are increasingly concerned about the rising costs of living, and to help them level up to progress. The Edusave scheme, the new Housing and Health Care programmes are more than 'expanded safety nets'; they are investments in our people. If one examines these measures carefully, the underlying principle is always one that will generate returns rather than incur losses for the nation. That is why the Government has stated categorically that it will only subsidise investments such as education and infrastructure, but not consumption expenditure, which will not be sustainable in the long run. Let us look at the simple example of the cost of water. We can either make people pay in full for what they use, or subsidise. But if we subsidise, the money still has to come from the people - in the form of taxes. If the consumption is the same in either circumstance, then it does not matter whether we subsidise or not. But will consumption actually be the same? I think not. It is obvious that when water is subsidised at lower rates, people tend to use more.”
“Despite its growing market orientation, the measures to help those who are falling behind remain very much in place, if not expanded. As has been the case since independence, no Singaporean today will be deprived of the basics of life, in terms of housing, health care, education or equal employment opportunities. But at the same time, the Singapore Government does not believe in giving handouts. If an able-bodied person chooses to remain unemployed when jobs are readily available to him, the Government will not resort to giving him welfare handouts as in other countries. This would not only demean his dignity by depriving him of the right to employ himself usefully and make a contribution to society, but, even worse, it would weaken his will to work. The result of all these sound policies has been a rapid increase in standards of living for Singaporeans in every sphere of our lives, a visible transformation of our society. Even President Yang Shangkun of China marvelled at the quality of our HDB flats. And yet Mr Chiam claimed that the average Singaporean is not as well-off now as he was in the 70s. Mr Speaker, Sir, the key question as we enter the Next Lap is to what extent we wish to manage the various spheres of human activity based on free-market forces and meritocracy, and to what extent we should help those falling behind to level up so that the gap between the top and bottom will not be ever increasing. Ideally, as a society progresses, one would hope that the need for ever present safety nets will eventually disappear. Superficially, one might be naive enough to think that this need is far less in Singapore than it was, say, 20 years ago. But we do not live in an ideal world, and such an assumption is dangerous and ultimately quite incorrect.”
“Obviously, when that happens, the nation's competitiveness reaches its maximum. In Hong Kong, for example, everyone knows that they have to fend for themselves. That is why Hong Kong is so competitive. Singapore has, therefore, increasingly adopted market-oriented policies. And this gradual re-direction has not been made so much out of choice, as out of necessity. The only way for a small nation like Singapore to prosper is to compete with the rest of the world to produce the goods and services that people want. That means we have to do better than them. A friend from the shipyard industry, who just came back from Hong Kong, told me that the shipping companies there are now going to China for ship-repair. Their prices, compared to ours, are dollar for dollar. That means more than three times cheaper. And if they time the arrival of spare parts well, the repair will not take much longer than ours. So if China is catching up with us, we better run faster. This is not to say that we are advocating an everyone-for-themselves society, like Hong Kong, and that we have abandoned the practice of providing certain social guarantees. That would bring about many social ills. Using the analogy of a marathon again, in the free-market situation, there will be those who run much faster and those who run slower and find it difficult to catch up. What we do is to help the slower runners run faster without holding back the faster runners. The result is then a levelling up. This is not easy. We certainly cannot do it by redistributing income. That will cause us to lose talented people and undermine their will to achieve. Singapore is perhaps unique among nations in its ability to fuse market-oriented strategies with fundamental social assurances.”
“Mr Speaker, Sir, I am greatly honoured to be given this opportunity to move the motion of thanks to the President. Sir, I beg to move, That the following Address in reply to the Speech of the President be agreed to:- "We, the Parliament of the Republic of Singapore, express our thanks to the President for the Speech which he delivered on behalf of the Government at the Opening of the First Session of this Parliament.". Singapore has made impressive socio-economic progress over the last 25 years. We have succeeded because under the PAP Government, we have got our fundamentals right. What are these fundamentals? They are meritocracy, a free-market economy, racial harmony and industrial peace, maximising our human resources and equal opportunities instead of equal rewards. The PAP Government has also ensured that every Singaporean is guaranteed certain rights, such as subsidised education and health care. Most Singaporeans enjoy subsidised housing as well. And the Government builds public facilities and infrastructure for the common good. Our market-oriented economic policies and the ability to attract foreign investments have created many new jobs - and better paid ones. Every Singaporean, therefore, has the opportunity to earn a decent income. A free-market economy is necessary for economic development. As we have seen from the historic events of the past few years, with the collapse of communist and even socialist governments, no nation can afford to isolate itself from market forces any longer and hope to survive, let alone prosper. It is like a marathon. The result of the communist system is a levelling down, causing people to plod along at an equal pace. The free-market system enables everyone to run as fast as they can, and reap the rewards accordingly.”
“I believe this is the same arrangement which many Town Councils are introducing. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [BG Lee Hsien Loong]. Bill considered in Committee; reported without amendment; read a Third time and passed. ADJOURNMENT Resolved, "That Parliament do now adjourn to a date to be fixed." - [BG Lee Hsien Loong]. Adjourned accordingly at Eighteen minutes to Six o'clock pm to a date to be fixed. amendments - PRESIDENTIAL ELECTIONS BILL (Cols. 291 - 294) Copies of charts - Household Incomes, Cost of Living, Assets of HDB Households, Housing, Ownership of Consumer Durables, Some Social Indicators (Cols. 295 - 312) Appendix I ASSENT TO BILLS PASSED The following Bills were assented to by the President of the Republic of Singapore on the date stated: 6th August 1991 (i) Public Utilities (Amendment) Bill; (ii) Presidential Elections Bill; and (iii) Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill TAN SOO KHOON Speaker Parliament of Singapore”
“So one of the major issues PUB must study and come up with a satisfactory solution before it can become privatised is what is the form of this regulatory control. It must be fair both to the shareholders as well as to the public. Now the Government is a shareholder, the regulatory control is MTI. If PUB wants to make a drastic change to the rate structure, raise tariffs, or reduce tariffs, MTI has a final say, and the Government, as a shareholder, bears the consequences. But if there are private shareholders, then the Government cannot fairly say, "you hold down prices regardless," just because it is politically convenient to do so. We may cause the private shareholders to lose money on their investments. So there has to be a fair, objective, long-term, open basis for revising prices from time to time, and for deciding what is the fair rate of return, taking into consideration cost, fuel, improvements in productivity and cost of living. It is not a new problem. Electricity and utilities the world over, and especially the United States and Britain, are regulated more or less successfully. We have to find a model which will work for us. Finally, Mr Chew's separate point on the penalty for late payment. Here, I would point out that while PUB will consider all hardship cases sympathetically, it has a responsibility to the shareholders and, in fact, to the other consumers who pay up on time. It is not able to waive either the charges or the late payment charges for people who do not pay on time. To do that is to encourage everybody else also to pay up late and take advantage. However, it will consider cases sympathetically and make arrangements for customers with genuine difficulties to pay their PUB bills by instalments.”
“The hope, of course, is that by privatising, we will make PUB operate even more efficiently than they are now doing. Probably, there are some savings which are possible. If you ask PUB, because they have done a good job, they will tell you that it is not likely that these savings will be huge because, if there were, that would be an indictment of what the PUB is doing. The PUB has, in fact, been doing a very efficient job. If you compare our utility rates with other countries in the region even oil producing countries, they are very reasonable. Private sector participation in providing services. In the case of gas, I think that is possible because already PUB is competing with liquefied petroleum gas (LPG). And PUB thinks that it is unfair competition, unfair against them, because the LPG suppliers do not have to manufacture their product. It is just surplus waste from the oil refineries which is being bottled and then sold to consumers for slightly less than what PUB is charging for town gas. But that will continue. PUB has no monopoly of gas. For electricity, there is a certain economy of scale because there is one national grid and you cannot easily allow somebody else's power station to tap into the grid and supply electricity. The system is too small. If that single private power station misbehaves, the whole system may be brought down. So the scope for hiving off the electricity part is more limited. What is most important is that where a natural monopoly like that is established and privatised, there should be a proper regulatory control. If there is no control and the monopoly maximises profits, and creams off the consumers, this will lead to outrage and be totally unjustifiable.”
“Mr Speaker, Sir, clause 2 of the Bill amends section 14(6) and (7) so that approval of the Minister is no longer necessary for the Board to make rules relating to the appointment of employees, the remuneration of such employees and the terms and conditions of their appointment. My question is whether this applies to bonuses as well, and whether the Board can now decide on the year-end bonuses without the approval of the Minister. BG Lee Hsien Loong: Mr Speaker, Sir, the Board has always had autonomy in deciding how much it needs to pay its employees to match the market rate, although it normally consults the Minister. This also extends to bonuses. I do not foresee that there will be any unilateral declaration of independence on the part ofany MTI statutory board in the immediate future. I come to Mr Chew Heng Ching's two points. First, on privatisation. He has asked a series of questions. I would say, just briefly, that PUB is still studying how best to privatise it. It is not the first statutory board which will do so - we have said that will be Telecom. Even that will take some time and PUB will only follow after we have had experience with Telecom. Because we are not in a hurry and we want to make sure, as Mr Chew says, that the public will benefit, firstly, as shareholders and, secondly, also as consumers. PUB has not completed its study yet. They have management consultants advising them. When they are ready, we will give a full explanation. If Mr Chew would care to file a question in a few months' time, I will give him a fuller answer. We are not privatising in order to increase utility charges. We have always maintained utility charges as low as possible, consistent with recovering cost and operating economically. This must continue after we have privatised.”
“Mr Speaker, Sir, may I ask the Minister, firstly, whether he thinks that the suggestion to make successful COE bidders pay for their bidding prices instead of the lowest successful price is a good one, and whether he intends to consider the implementation of this suggestion to further improve the COE scheme? The second question is related to what Dr Wang has asked, ie, at the end of the trial period, how does he intend to carry out the comparison? Will he compare month by month, or will he take a certain formula to compute the price under both the new and the old system?”
“Nevertheless, I would like to make the following proposals: Firstly, on the increase in the maximum tuition fee loan, from 50% to 65%. I think this ceiling should be raised to 80%. We already have a parallel of this in a similar rule under our home-ownership policy, which allows loans of up to 80%. The higher ceiling would also reduce the burden of the cost of education to be borne by parents, especially those with up to four children, as advocated by our current population policy. The use of CPF funds for education can of course reduce this burden but with the recent changes in the system, with our children's education now stretching from pre-school to university, the cost of education to be borne by parents will go up, a problem that can also affect their ability to respond to the Government's call to own more comfortable homes. I agree with the suggestion by student leaders to extend the repayment period of loans from 15 to 20 years and to delay the start of repayment from one to two years after graduation. In this regard, I would like to suggest that the Government allows our graduates to make repayments from their own CPF accounts. This is to encourage a spirit of self-reliance and allow better use of CPF for education. I would also like to appeal to the Government to determine a certain percentage of tax income or corporate levy meant for training, research and development to be channelled to the NUS/NTI endowment fund, besides depending on individuals and the alumni associations of each university for contributions. The universities should also strive to cut down administrative expenditure. Wider usage of computers, solar power systems, more sophisticated IT systems, etc, are examples of long-term cost-saving measures that can be exploited.”
“This means that costs for computer resources, for example, should not be completely included in the operating costs for university teaching. And this is important because research work is a heavy user of computer resources. Universities should therefore work out an accounting system to reflect the true operating costs for teaching. Sir, I hope the Minister will consider the issues which I have just raised. Encik Abdul Nasser bin Kamaruddin (Hong Kah GRC)( In Malay): I welcome the statement by the Minister for Education on the increase in university fees. There are several reasons why I find the statement heartening: 1. Nothing in the statement indicates any intention on the part of the Government to abdicate its responsibility in raising the quality and standards of our children's education. 2. The statement also affirms the Government's commitment and that of corporate bodies, the private sector, and individuals, to continue to contribute towards educational excellence, which is a fundamental investment in nation building. 3. The fee increase does not involve higher cash payments, except in medicine and dentistry. 4. A higher ceiling will now be allowed for tuition fee loans and easier loan repayment terms will be provided. 5. The statement also shows the Government's desire to find a balance in granting subsidies for our students. 6. The establishment of an endowment fund will allow the universities to be self-supporting and reduce their dependence on taxpayers' money. 7. And most importantly, the statement stressed that the increase in fees will not prevent the admission of qualified students who cannot afford the fees, because the Government has given assurance that study loans would be increased.”
“Mr Speaker, Sir, while I understand the rationale and support the principle behind the university fee hike, I would like the Minister to look into three areas to help lessen the impact of the present as well as future fee hikes on university students and their families. First, in addition to the improved terms and conditions of tuition fee loans mentioned by the Minister, the Ministry should make it easier for students from the less well-off families to qualify for bursaries and the interest-free university study loans. This will go a long way in helping these families now that they have to pay an average monthly sum ranging from about $300 to $900. Second, the Government should actively help the universities speed up the establishment of their endowment funds and help secure wider sources of income. One way is perhaps to match dollar for dollar any donations to the universities. Third, since the subsidy for the universities is going to be reduced further to 60% of the operating costs in the long term, and operating costs can only go up, the Government should take another look at what expenditures constitute the operating cost. In this respect, I agree with Mr Lau Ping Sum. For example, is university R&D expenditure part of the operating cost? I think it should not be, because undergraduates should not be made to pay for R&D expenditure. In overseas universities, research is funded by national science councils or private companies or both. Research equipment and research staff expenditure are therefore paid for from the research fund secured by the academics. Even mainframe computer time for research work is charged to the research fund.”
“I am asking whether it is true that the roads are congested during those hours. From what I know, it is only in the CBD. That is why I am asking whether he will consider allowing cars to be on the road, outside CBD, during weekdays and from 11.00 am to 3.00 pm.”
“Yes, Sir. The Minister said that during those hours ---”
“Sir, I believe the congestion during those periods ---”
“Sir, since the Minister thinks that the first option is administratively more burdensome, I would like to ask whether, in order to increase the attractiveness of the scheme and to benefit more Singaporeans, he would consider allowing weekend cars to go on the road, except the CBD, during weekdays, say, from 11.00 am to 3.00 pm without having to pay for the labels?”
“Not to my knowledge, Sir. I do not think the bonuses are negotiated. The Government recom mended a certain rate and then the extra 7-day and 11-day bonuses, the union has got nothing to do with it.”
“Sir, first, I would like to remind the Minister that while the workers appreciate the opportunity given by the PSA for training it also means adjustment, sacrifice and hard work on the part of the workers. Secondly, the Minister has not replied to the question whether the workers will receive the same level of bonuses as that of 1990 if the port maintains similar performance and they continue to achieve similar productivity gains in 1991.”
“If it is going to be available a few months before October, I would like to propose that between the time when the system is available and the implementation of the scheme in October, Telecom allows the users the option to choose between the present scheme and the time-based scheme. Sir, I believe that this is a good PR exercise for Telecom. The proof of the pudding is in the eating. If those who opted for the time-based scheme are paying less, the message would spread easily and effectively that what Telecom has decided makes sense. More importantly, the message no longer comes from Telecom but from the people themselves. Telecom may receive less income from local charges, but I think it is good PR which is worthwhile. Sir, the Minister has said that Telecom may also implement a lower time-based rate for off-peak hours in the future. I believe that, technically, it is not difficult to implement a two-tier rate system. I would like to ask the Minister whether Telecom would implement such a two-tier rate right from the beginning in October. This would allow users to have immediately an option to use the phone during off-peak period and pay less. It would also make both economic and technical sense as far as Telecom is concerned.”
“I was told that in the container port, workers work through the meal hours in 8-hour shifts. Sir, PSA rewarded workers with an extra bonus of seven days' pay in 1989 and 11 days' pay in 1990 on top of the bonuses recommended by the Government. However, in view of the magnitude of productivity gain chalked up by the workers, which is three to four times higher than the national average, I think there may be justification for giving more. Sir, the forecast by the Government for economic growth in 1991 is 3-6%. The Government may recommend a smaller bonus for the public sector for 1991 because of slower economic growth. However, if the port maintains its performance and the workers continue to achieve similar productivity gain, would the Minister agree that they should at the end of 1991 receive at least the same level of bonuses as in 1990? Is this not the Government's position that companies which perform well should reward their workers accordingly, even though other sectors may not do as well? Sir, let me turn now to the subject of local telephone charges. I understand the rationale behind Telecom's position to charge time-based local calls, beginning from the fourth quarter of 1991. I do not deny that it makes economic sense and that it is a fairer scheme. Telecom has said that the majority of users will end up paying less. The problem is that the majority of this majority perceive that their cost will increase, and are not happy. I would like to ask the Minister when the system for time-based charging will be ready.”
“Thank you, Sir. Let me first declare that I am the Executive Secretary of the Singapore Port Workers' Union. Sir, the Port of Singapore Authority has achieved tremendous progress in the last 10 years. We have remained the busiest port in the world in terms of shipping tonnage since 1986. We have become the world's largest container port, overtaking Hong Kong in 1990. PSA has also won a number of awards. Examples are: Best Sea Port in Asia, Best Warehouse Operator, Best Terminal Operation given by the Asian Trade Industry Awards, and the Innovative Application Award from the American Association for Artificial Intelligence. In my nearly three years as a member of the GPC for Communications, invitations by PSA to attend functions to celebrate these milestone achievements have been both regular and frequent. Sir, the success of PSA is due to good Government policy, efficient PSA management and its hardworking staff and workers right from the Minister for Communications to the ordinary workers in the port who have contributed their best. I know that the Minister has even made it a point to attend every celebration function in order to send a strong signal to the workers that their efforts are appreciated. 2.15 pm The port's commitment to modernisation and training of workers are also important reasons for its success. Productivity grew by 21.6% and 19.8% in 1989 and 1990 respectively, despite a corresponding reduction of staff strength of 1.8% and 3.7%. Sir, these great achievements are made possible not least because of the dedication, cooperation and hard work of the workers. The workers participate in skills upgrading training, support job enlargement and work extremely hard in a harsh environment to increase throughput.”
“Sir, since my GPC Chairman has touched on the issue of telephone charges, may I be allowed to take the cut as well?”
“However, some reservist commanders have complained that they seem to be raising the same issues at the end of every in-camp training and are beginning to question whether any follow-up action is ever taken on the feedback. MINDEF could perhaps look into ways of providing information on the follow-up action to those that have highlighted the deficiencies. In this way, we can encourage more to provide suggestions and feedback so that the system, massive as it is, can be constantly refined and improved.”
“Sir, I am aware that MINDEF has been very innovative over the years in raising productivity and efficiency in reservist training in order to ensure that the time spent in in-camp training is not wasted. I am able to contrast the full day it took for me to be fully equipped during my first in-camp training many years ago to the mere two hours for the complete in-processing to be accomplished during my in-camp training last year. However, there are still areas that can be improved. I would like to stress that in attempting to be more productive, we should never compromise quality by taking short cuts or attempting to force too much training into too short a time. An area I would like to see very much improved is the shooting sessions at the ranges. A range exercise normally involves only a total of 15 to 20 minutes firing time and many hours of travelling time and waiting for your turn to shoot. Perhaps MINDEF should look into the use of suitable range simulators that could be installed in every camp. I would also like to see the number of routine reportings that reservists have to endure reduced to an absolute minimum. Many a time these routine reportings involve only the receiving of a notice of the next in-camp training or the updating of personal particulars. This task can and should be accomplished by mail, fax, or telephone. Requiring reservist to report in person is not only inconvenient for the reservist but it is also unfair to his employer who has to release him from work for a non-essential purpose. Finally, Sir, I am aware that there are de-briefing sessions at the end of every in-camp training. Feedback from these sessions are supposed to be collected, evaluated, and follow-up action initiated.”
“Sir, training of our reservists should also emphasise a sense of purpose in what they are doing and an awareness of possible eventualities and scenarios their training is preparing them to encounter. Only then will reservists be able to regard their training as necessary and meaningful despite the seemingly secure environment we now enjoy. 1.15 pm I believe the SAF already has a national education course that is designed to promote awareness among our servicemen and reservists on the realities and trends that could directly impact our security and survival. However, I understand that attendance at this course has been limited mainly to officers and a small proportion of very senior NCOs. Sir, I can understand the previous thinking on why the national education course should be confined only to Senior Appointment Holders. But we must realize that the educational level of our population, and consequently that of our reservists, has risen tremendously over the years. I have been told that already more than 80% of our university graduates are reservist NCOs and below. I would therefore like to urge the Minister to extend this course, or a modified programme, if necessary, in order to cover reservists of all ranks. MINDEF should also constantly upgrade and adapt its training programme in order to suit our increasingly better educated soldiers. The number of dry runs and repetitions of non-complex manoeuvres during reservist training often makes one wonder if the ordinary soldier is ever credited with any degree of intelligence. Enthusiastic reservists who perceive that their intelligence is called into question by the training programme often develop very negative attitudes towards their training.”
“They should also try not to demean their contributions by putting a price tag on it. Sir, the SAF, being a citizens' army, is likely to have its talents dispersed through the various ranks. I understand that only 600 of each cohort of approximately 20,000 national servicemen each year are selected for officer training. Consequently, many other capable citizens who may now hold responsible civilian positions will invariably serve in the reserves classified as "Other ranks", a military term for non-officers. This has to be so and it should be accepted by all regardless of their educational qualifications or their appointments in civilian life. Because of this situation, when we promote positive discrimination, we must guard against widening the gap of perks and privileges between reservist officers and reservist "Other ranks", under the guise of providing more recognition for those who contribute more. To do so would only risk creating unnecessary tensions and resentment within the ranks. However, we must also address the problem of over-taxing reservists who are Key Appointment Holders. Giving them monetary rewards and additional privileges will not lessen the heavy burden they now carry. The SAF should tap from its massive rank of reservists more able and talented people who can help to share the load. I am certain that there are many capable reservists, especially from the NCO ranks whose reservist responsibilities are not commensurate with their abilities. If more of these people whose potential is yet to be exploited by the SAF come forward to take on more responsibilities, then the burden for all will be lessened.”
“I think the existing reservist rank pay for the period of his in-camp training is a good guide for ICT allowance. Such a scheme can then be reviewed once in three to five years. If we take the existing rank pay as a guide, a private soldier will get an ICT allowance of about $100 for a 21-day ICT, and a Lieutenant, about $400. On the average, I estimate that ICT allowance will then amount to about $20 million a year. This is only about 0.5% of the budget allocation for security expenditure. I believe this amount to reasonable. The ICT allowance should not amount to only peanuts. Reservists are also not asking for cashew nuts, but at least give us big peanuts. Mr Charles Chong (Sembawang GRC): Sir, like the two speakers before me, I would like to declare my interest as an SAF reservist. Sir, the reduction of super-power rivalry, closer regional cooperation and the absence of any apparent security threat to Singapore may lead some Singaporeans to feel that we should ease up on our defence priorities. Such sentiments are understandable , if we do not have a clear view of the underlying trends and implications of world and regional events that could have an immediate and significant impact on us whether or not we are participants of such events. If all our reservists understood and fully appreciated the realities of the situation around us, it is likely that more would be motivated to accept the temporary inconveniences associated with reservist training without calling for more monetary rewards and more perks to accomplish the task of ensuring our own survival. The more able must accept the fact that it is likely that they would have to contribute more, just as the rich would have to pay more taxes compared to the lower income groups.”
“Sir, let me first declare that I am a reservist and also a member of the RECORD Committee which has recently submitted to MINDEF its recommendations for recognising the contribution of reservists to Total Defence. Sir, yesterday I spoke about the need to have a preferential tax rate for citizens. This is one of the key recommendations by RECORD. I am glad to know that the Minister for Finance is now considering it and I hope to hear good news from him. To many reservists, however, preferential tax rate for citizens represents a general and broad recognition for the role of citizens. While they welcome such a recognition, they feel that it should not stand alone and should be only the first tier of a multi-tier structure of benefits. For those who shoulder a heavier reservist burden, more recognition should be given. Otherwise, it will be difficult to motivate reservists to perform their best and take on heavier responsibilities after that. Sir, the recommended In-Camp Training (ICT) allowance for reservists as a second-tier financial recognition should therefore be seen in this light. Many reservists will argue that the ICT allowance is even more important and meaningful and should also be given through the tax mechanism. This will send a strong and effective signal to all reservists of the public recognition accorded them for their annual contribution to the security of the nation. Sir, the fact that the RECORD Committee existed shows that MINDEF recognises the problems reservists are facing. I therefore urge the Minister to approve this important recommendation on ICT allowance. The amount for this allowance should not be too small as to become insignificant. It should also be commensurate with the responsibility a reservist is holding.”
“We must give them re-training in the language that they are conversant with. The next point is, as I have already said, we must enhance the skill level of our workers, especially the older ones, so that they are able to be engaged in high value-added activity.”
“The question is: with whom are we competing, and with whom are we comparing? If we compare ourselves with the advanced countries, with the developed countries, then in the long term we want to reach a standard of living of Switzerland. So we must compare with the advanced countries. We should not compare with the under-developed countries. If we continue to compare ourselves with the under-developed countries, then we would not be able to increase and improve our standard of living. So more importantly, we must compare ourselves with the developed countries. How do we ensure that our workers will be engaged in high value-added activities? This is the reason why the Government has come up with the concept of the Growth Triangle. It would have a good effect on our economy in the long term and that is the reason for offering our infrastructure and our services to our neighbouring countries and extending our field of operations. I hope that our employers and the Government will note that when we relocate our industrial activities to some other countries in the neighbourhood, we will have the problem of maladjustments or unemployment. We have about 300,000 to 400,000 workers who have low education. Although we are supposed to be the best workers in the world, in terms of skills we are ranked only 14th. So we must pay attention to the older workers to help them adjust to the new situation when our labour intensive industries are relocated elsewhere. How are we going to help them through the language that they are conversant with to go for training? You should not ask them to go for four years of primary school and another two years of secondary school to learn English and Mathematics before they can go for skill training.”
“But they seem to forget the basic objective and the social role of the CPF and, that is, to help these workers own their homes and it is also extended to cover Medisave. CPF has taken a new role of adjusting wage cost. When we face a recession, the CPF is adjusted to take care of that. So when there is prosperity then it should be restored accordingly. We must not forget that the workers had already sacrificed 15% of their CPF during the recession. The employers should not be shortsighted. They must take up their social responsibility. More importantly, we have been able to weather through the recession and difficulties, one after another, and it is because our workers have the confidence and trust in the Government. In 1987, the Government reminded the employers that in the next few years, it would restore the CPF to the 20% bracket. So the employers must not forget this. They must regard the restoration of CPF as part and parcel of their operational costs. Some people have touched on the question of wage cost and my colleagues have already pointed out that if we offset the inflation rate, then the actual wage cost increase is only 3% which is well within the productivity increase. So more importantly, we must think of the long term to ensure that we link the wage increase to productivity increase. In 1983, according to the American statistics, in terms of the cost per hour (in US$) in the manufacturing industry, we might be a little higher than in Hong Kong and South Korea, but compared to other countries, we were lower. But in 1989, in Taiwan and South Korea, the cost per hour was $3.55, Taiwan was $3.43 and Singapore was only $3.09. So when we compare all these figures, we can see that we are still competitive in our wage cost.”
“Just imagine what psychological impact it will have on a child if he is constantly reminded for 10 years that all his friends receive and enjoy Edusave contributions from the Government except him. Mrs Yu-Foo Yee Shoon (Yuhua)( In Mandarin): Mr Speaker, Sir, I rise in support of the motion in the name of the Minister for Finance. But I would like to deal with some comments and views expressed by my colleagues in this House. As a Member of the Feedback Committee, I have the opportunity to take part in the dialogue sessions and forums with representatives of the workers, businessmen and unions. Yesterday, some of my colleagues reflected the views of the employers and businessmen. I would like to reflect some views of the workers and union leaders. On this question of 1 percentage point increase in the contribution of CPF by employers, the employers expressed dissatisfaction and disappointment. But I think this is a correct step taken by the Government. Probably it is because some employers and some of my colleagues in this House are troubled by the question of water conservation tax and the increase in rentals that they are expressing unhappiness. They cannot give good reasons to counter such problems, so instead they vent their dissatisfaction over the increase in the employers' CPF contribution. I do not think that we should use the word "increase". We should, instead, use the word "restore". This restoration of 1% is a very reasonable step, although some workers still feel that it should have been restored to 20%. A few months ago during the uncertainty of the Gulf War, the Government had, in spite of that, made a proposal to restore 1%. I think it is very reasonable. Right now, business people may face a certain challenge, and we accept that.”
“While I agree that Singaporeans must be imbued with a sense of honour in carrying out their Total Defence obligations, we must not forget about the basics such as incentives, rewards and recognition which are just as important for a society to work. While we need to continue to attract foreign talent into Singapore, we must not ignore the feelings of citizens that they are disadvantaged, particularly those who have Total Defence obligations. If we only talk to them about honour of serving the country and nothing else, then we are bound to disintegrate just as communism has disintegrated and failed. Nations throughout the world have always ensured that defence obligations and rewards go hand in hand. In the US, if you are a volunteer in the armed forces, you get certain benefits. In Switzerland, reservists who go for training pay less tax. Are the Swiss therefore less patriotic than us because they have linked taxes with national service? If the Swiss, with hundreds of years of experience and wisdom in nation building, have found it necessary to resort to the tax mechanism, I think it will be wise for us to look closely into the efficacy of linking taxes to defence obligations as a form of recognising the role of citizens. Finally, Sir, I wish to make a comment on the Edusave Scheme. I hope that the Government will consider extending the scheme to all students instead of only funding the first three children of a family. The principle of Edusave is to give every child an equal start in life. It should not be linked to the other incentives or disincentives for having a larger family.”
“Thank you, Mr Speaker, for allowing me to speak. Sir, I support the financial policy of the Government proposed by the Minister for Finance. As emphasised in the Budget Statement, it is important that we adopt a two-pronged strategy for our economic development. Externally, we need to continue building linkages with other countries to ensure better economic stability and growth. Internally, we must have quick and nimble responses to changing circumstances and, wherever possible, allow market forces to work for us. An example of a quick response by the Government is the proposed reduction of tourism cess rate from 4% to 3%. It goes to show that the Government now has the instruments to feel the pulse of the various sectors of the economy quickly and accurately, and is prepared to make policy changes to help the declining sector revive and stay competitive. Sir, allow me now to make a suggestion on personal income tax. I would like to ask the Minister to consider giving a preferential tax rate of a mere 1 percentage point in favour of citizens. This I believe is necessary to underline the importance of citizenship, especially as we step up our efforts in attracting foreign talent into Singapore. There have been some public discussions lately on whether we should link taxes with citizenship. Writing in the Sunday Times, Ms Tan Sai Siong argued that tax should be seen as a pure business transaction which buys the taxpayer "the privilege of earning a living in a particular place", and no more. She felt that "attachment and loyalty to a country is another thing altogether and should be priced above tax rates, rebates and reliefs." Sir, such sanctimonious argument makes those of us who are in favour of a preferential tax rate look like sinners.”
“In my view, a right balance between the individual and the community would only come about and continue to exist if we unceasingly teach and remind our children that they are in fact a part of the society, and it is when they contribute to the society that they themselves will ultimately benefit from the society. On the other hand, the nation and the society must remember that they can only be strong if each of their members is respected and taken care of by the society. It is like a family relationship. You cannot draw the line for the behaviour of each person in the family. A happy family is one where there is true reciprocal respect and love. The second point concerns the value on "Consensus instead of contention". We must make it clear that consensus does allow debates, arguments and contention before it is forged. But I see the merit of providing the contrast in the proposed phrase as it will help drive home the point that what we desire at the end of the day is consensus and not contention, confrontation or conflict as a result. Since the wording is unclear to most people, I would support a change to "consensus instead of conflict".”