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.”
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“It only says that there are difficulties in learning, and the students do not like the Chinese lessons. There is no mention of whether the students have, in fact, attained the prescribed standard under the existing teaching method. On the other hand, two days ago, the Ministry of Education announced that in the 2003 PSLE, 'O' level and 'A' level examinations, more than 94% of the students passed the Chinese Language examinations at the various levels. On the other hand, only 85% of the students managed to pass the English Language examination at 'O' level - 85% for English but 94% for Chinese. This is also shown in Table 4 of the White Paper. In this Table, it is also shown that 51.5% of Secondary 4 students had difficulties in learning the English Language. But in the case of Chinese Language, the Table shows only 45% of students had difficulty. In Mathematics, 52% of the students found it difficult. Perhaps after this White Paper, we may have to seriously consider a review of the teaching and curriculum of English and Mathematics as well! How do we deal with difficulties in learning? If there are difficulties, what is a positive way to deal with them? One positive way is to get better teachers, use the best teaching methods, the best teaching aids and a better overall environment to help weak students so that they would gradually catch up. If we choose to avoid the important and dwell on the trivial to lessen the learning difficulty of the students by teaching less of the difficult topics and going by the easier ones all the way, it will make life easier for the students, but the eventual result will be that the students would be lacking in both learning and practical ability, ignorant and incompetent. They would learn but know nothing.”
“I would also like to take this opportunity to air some of my views on the White Paper. With greater importance being given to the English language in the late 70s and early 80s, there has already been a very clear sign that more and more parents are sending their children to the English schools. In the 1980s, the Government unified the education system in Singapore. Since 1982, there have been no distinct English schools or Chinese schools. All students in Singapore now go to national stream schools. Statistics show that currently the number of Mandarin-speaking families is reducing while the number of English-speaking families is increasing. This is the trend and that is the result of the change of the education system in the 1980s. Those who were attending Secondary one in 1982 and were affected by the education reform in the 80s are probably having children going to Primary 1 in 2008. If our bilingual education system succeeds from then onwards, by 2008, the Chinese students whose parents speak only English and no Mandarin should come down in number. By then, the mainstream will be families speaking both Mandarin and English fluently. The current problem of children having difficulty learning Chinese because either parents speak only English will probably be resolved by the year 2020 (12 years from 2008). In future, there should be fewer monolingual families and more bilingual families in Singapore. This is my prediction. By 2008, I think the Ministry of Education may have to consider revamping our Chinese Language curriculum again to face the changes in that new era. What are the problems faced by students in learning Chinese? The White Paper did not make any specific analysis of the problems.”
“Finally, Mr Deputy Speaker, Sir, the successful implementation of the new policy is of paramount importance. For the students to have a breakthrough in the learning of Chinese, I think we should, first of all, enthuse the students in wanting to learn the language. To attract their interest is of great importance. What the schools can do is that they should review the teaching methods, and I am sure the schools can do a good job in it, not only to enhance the students' interest but also enhance their absorption of what they have learnt in the Chinese language. I remember in the younger days when I was learning Chinese, there was this fairy tale and I believe that many of my colleagues here must have heard of this story. This is a very simple story. There were three fictitious characters, the "Qian li Yan" (telescopic eyes), the "Shun Feng Er" (the clairaudience) and the "da li shi" (mighty strong man). The first guy could see things a great distance away, the second guy could hear voices a long way off; while the third man was so strong that he could lift up a big buffalo. This is a simple story but it attracted the interest and left a deep impression in them. Qian li yan, shun feng er and da li shi are very common expressions in Chinese. But if you name the fictitious characters with these expressions, it would be easier and clearer for the students to know their meanings and hence commit to memory the use of these expressions. So when we are teaching our children the Chinese language, we should use more stories to arouse their interest. I believe that if we can do that, the learning of Chinese language would be more effective. Sir, I support the motion. Assoc. Prof. Low Seow Chay (Chua Chu Kang): (In Mandarin): Mr Deputy Speaker, Sir, I rise in support of this motion.”
“I have been in politics for 17 years. I have seen changes in the policies. In the beginning, the Government hoped that everyone could be effectively bilingual. However, when they noticed the trend and discovered that this was a very uphill task and that our standard had been dropping all along, they changed their policy. I observe that Chinese-educated elites do not wish to see such a trend. They hope that the Government would enhance the study of Chinese. That is why whenever the Government embarks on a reform to the teaching of Chinese Language, they would be very concerned. I do understand that the Chinese-educated elites have good motives and they wish that everyone in Singapore would attain a good level of the Chinese Language. However, this is impossible. Although they have good motives, they are fighting a losing battle. So I hope that on this occasion, they will give the Government their full support for these new policies. We have to face reality. Only then can we make the correct response and make the correct decisions. And also, the attitude of the parents should also change because all along, most parents are very pragmatic. Their choice is normally in line with the Government's policies. So I believe that on this occasion, the recommendations of the White Paper can give the parents a very clear picture of what the real situation is. Nevertheless, the decisions of the parents must be based on the interest of the children, that is, if they feel that their children are able, they should encourage them. If they feel that their children are having difficulties, then they should not force them. I support this recommendation of the White Paper to leave the decision to the parents. In the end, the parents should know what is best for their children.”
“Just now, Dr Ong mentioned that we should create the environment not only in schools but also outside the schools, so that our pupils will have more opportunities to make use of Chinese, and hence feel that there is practical use for the Chinese Language and Mandarin. Thirdly, I must emphasise that the bilingual policy is appropriate to our cultural roots. Because of our future economic development, we must learn Chinese and learn it well. I am not saying that we must be thoroughly proficient in it, because it is very subjective to say how good one must be to be thoroughly proficient. So it is very hard to say how well you must learn it. But you must learn it correctly. In my own experience, because I have the foundation in Chinese, although my standard of Chinese at one time was very low, but when necessary, I could brush it up and have a reasonable command of it. Now, because of my developments in China, I feel that it is very important to have this knowledge of Chinese. Although sometimes, in my life, the standard of my Chinese has dropped but with some hard work, I could build on my existing foundation and could make full use of the knowledge that I have learnt. Mr Deputy Speaker, Sir, our Chinese education has come to a crossroad. How should we progress from here? I support the recommendations in the White Paper, ie, we must first of all, be flexible; secondly, we must teach according to the abilities of the students and, thirdly, we must enthuse our students and develop in them the interest to learn the language. We must, first of all, give them a good foundation in listening, reading, speaking and later, if they have the potential, in writing Chinese. Why is it that all these years, the changes in reform for the teaching of Chinese has been so slow?”
“If we have too high an expectation for our students in the standard of Chinese, then I think it would be counter-effective. I fully support the recommendation that we should teach them according to their abilities. Secondly, the study of a language has a lot to do with the environment, interest and the practical needs. Since independence, for our economic development, our education system trend has been towards application. This is correct. Otherwise, we will not have what we have in Singapore today. However, no matter how hard we work, the younger generation of students could not maintain the standard of Chinese. This is a fact. Apart from what I said of having too high an expectation for them, I feel that the important factor is that we lack the environment and the need for Chinese to be used. I have three children. I came from a Chinese school. My wife was also Chinese-educated. My three children can manage Chinese but they have no interest in it, and they are not as proficient as I am when speaking in Mandarin. What is the reason? I feel that is because they do not have the environment. In the schools, when the students converse amongst themselves, they use mainly English. They feel that there is no necessity for them to use Chinese and naturally, they will lose their interest in Chinese. On top of that, if the teaching method is not so good, then the students will not be able to absorb what they have learnt. So I hope that after the reform, the schools will put more emphasis in creating a better environment for the learning of Chinese and adopt the appropriate methods of teaching.”
“But if I had to write a speech or to make a speech in Parliament, despite my being Chinese-educated, I found it rather difficult. In fact, I seldom spoke in Mandarin in Parliament. The reason is very simple because English is my working language. It is so much easier to write in English than to write in Chinese. Why should I bother to spend so much time and effort writing in Chinese? But in recent years, because of my work, I have to go to China very frequently. I discover that my Chinese has improved. For example, in writing today's speech, it is so much easier. In the past, when I had to speak in Mandarin, I would write the text in English first and then translate it into Chinese. But this time, I wrote my speech directly in Chinese. I feel that it is easier now. Why am I telling the House this experience of mine? This is because I wish to bring out the following points: Firstly, our brain power is limited. Unless we make use of two languages frequently, it is not possible for us to maintain our proficiency in both the two languages. Likewise, our students have a lot of homework to do. It is not easy for them to master two languages simultaneously. Even for those whose standard of Chinese is not bad, it may not necessarily mean that they could use Chinese effectively. It would appear that it is easier for them to learn other subjects than to learn Chinese. They have to spend a lot of time on Chinese, the effort is many times more than that spent on the other subjects. Even then, the standard of Chinese is not very good and, at the same time, because of the extra time spent on Chinese, results of the other subjects are affected. So why should they do that?”
“Mr Deputy Speaker, Sir, the debate in this House on the White Paper on Chinese Language curriculum and pedagogy reform will have an important and crucial impact on our bilingual policy, as well as the development of our economy and culture, hereafter. First of all, allow me to use myself as an example to illustrate the direction and some facts of our bilingual policy since independence. I am a science graduate from a Chinese school. I underwent 12 years of Chinese primary and secondary education. During the secondary school days, in 1965/1966, our schools started to use English as the medium of instruction for the teaching of mathematics and science subjects. Both Chinese and English were used, and it was very tough for us. After completing my Higher School Certificate, I was admitted to the Engineering Faculty at the University of Singapore. The standard of my Chinese at that time was not too bad for a science student, but my English was no good. Fortunately, though engineering subjects were taught in English, we did not have to possess grammatically accurate English. My academic results were not seriously affected. After four years of university studies and 2½ years of National Service, I went overseas for further studies for five years. I could say that I had almost forgotten my Chinese. I remember when I was studying in Canada, whenever I had to write a Chinese letter to my mother, I would have to put in a lot of efforts. From 1971 to 1988, my English improved a lot but the standard of my Chinese dropped drastically. In 1988, when I became a Member of Parliament, I began to pick up Chinese again. Because of my earlier foundation in Chinese, I had no problem conversing with the residents in Mandarin.”
“Due to Government policy. Dr Vivian Balakrishnan: --- then that dialogue must occur between the agency and the Competition Commission. But I would not accept the position that competition must trump at all costs.”
“Sir, my question is: will the Commission take up the issue with the relevant regulators to see that, in fact, there are greater purposes in having a certain policy at the expense of competition to satisfy themselves which is, indeed, the case?”
“Mr Deputy Speaker, Sir, the Minister has not addressed the point that I have made and, that is, to promote competition. You will discover that there are a lot of Government policies and practices which may stand in the way of effective competition. How do we handle those issues and whether there will be coordinated review of all these practices and policies?”
“It must also serve to promote competition as its ultimate objective and the best way to promote competition is to lower the barriers of entry for competition. These barriers, be they from Government policies or anti-competitive behaviour of private companies, inhibit new entrants into the industry, depriving the consumers of choice, as well as a generally lowering of price through competition. The Commission should be empowered to investigate and act against practices which put up artificially high barriers of entry into the industry such as unfair pricing of certain core services or complex procedures to discourage new entrants. Companies which are strongly vertically integrated should be closely watched for these misdeeds. On top of that, there must be a pro-active and coordinated review of all Government policies and practices that affect competition. Only then could we have a meaningful and useful law that would maximise the benefits of competition for Singapore and Singaporeans.”
“Since the signing of the Free Trade Agreement with the US, our Customs adopted the Customs Valuation Code (CVC) to assess the Open Market Value (OMV) of a car. Manufacturers are now using transfer pricing to give hefty discounts of their factory list price to their agents. These discounted prices lower the OMV of cars imported by authorised agents. On the other hand, in determining the OMV for parallel import cars, Customs add an uplift to the purchase price paid by parallel importers, notwithstanding that the purchase price is already higher than the OMV for cars from the authorised agents. As a result, cars purchased from the authorised agents pay a much lower Additional Registration Fee (ARF). The ARF is 130% of the OMV. So, needless to say, what we are seeing today is there is hardly any competition from parallel importers. Has anyone ever asked why there should be two substantially different OMVs and, therefore, ARFs, for essentially identical cars? Another very old policy of LTA is the surcharge of $10,000 imposed on imported used cars not more than three years old. With today's technology, such cars would not have problem meeting LTA's technical and environmental specifications, but the surcharge of $10,000 has made import of such cars non-viable. Without the surcharge, I am sure there would be keen competition in car sales that would benefit car owners. Sir, in my view, the Competition Commission should have the preview upon industry or consumer's feedback to look into such Government policies or practices, whether they are from Customs or LTA. In conclusion, Sir, the competition law must not be one of just preventing abuses.”
“Soon, they discovered that there was a need for the Competition Commission to work with all government agencies, be it state or federal, to review all government policies and practices and lay down the principles of effective competition for all government bodies to adhere to. What our competition law should do is to lay the overall framework for competition in Singapore, encompassing all industries and all players. The proposed Competition Commission should oversee all matters concerning competition, except those relating to national security. Any complaint regarding ineffective competition should be fully investigated by the Commission. If a complaint is related to a regulated industry sector or to a certain Government policy or practice, the Commission should work with the relevant Government body to resolve the issue. Sir, I suggest this because each statutory board or Government department has its own objectives and functions, be it safety, infrastructural development or fiscal. They are not single-minded as far as promoting competition is concerned. Take, for instance, LTA. Its main objective is to ensure efficient transportation of people and goods. For years, Singaporeans have been paying higher prices for purchase of cars, not just because of high taxes, but also because of high profit margins earned by the authorised agents due to ineffective competition. As promoting such competition was not really the priority of LTA, it has taken LTA many years to allow parallel imports to compete. Just when it was thought that parallel importers would give authorised agents a run for their money, manufacturers and their agents found a way to exploit a Government rule to beat the competition.”
“Mr Speaker, Sir, I think the Competition Act is long overdue. Other developed countries had this law much earlier than us. It is therefore important that we learn from others and do it right as soon as possible in order to maximise its benefits to our economy and society. To me, the purpose of the competition law must not just be to prevent anti-competitive behaviour as it is the main focus of this Bill. This approach is too narrow. The purpose must be to promote competition in all areas of the economy, to lower the barrier of entry for new businesses and to ensure fair play. This will then lead to benefits at three levels - the consumers, the companies and the nation as a whole. To the consumers, it will mean more choices and better quality of goods and services at lower prices. To the companies, free and fair competition will result in better efficiency and innovation to the country. There will be all round productive gain that will increase our national competitiveness and provide better employment opportunities for our citizens. To achieve all these, I do not think the approach taken by the Competition Bill is good enough, which is to prohibit three activities, namely, anti-competitive agreements, abuse of dominant position and mergers and acquisitions that substantially lessen competition. Further, the Bill does not extend its powers to certain industry sectors as well as Government policies and practices that stand in the way of effective competition. Sir, I strongly feel that such a narrow approach to this law will not serve us well. Australia started this law leaving all government activities aside.”
“Sir, before GST was introduced, Singaporeans of low or no income paid little or no tax. With the introduction of GST, their tax burden has substantially increased . Moreover, this group of people is likely to face structural unemployment brought about by globalisation. We must, therefore, find effective ways to help them. I believe we can do so in the form of the concept of negative income tax. 2.00 pm Negative income tax is not new. In a way, Economic Restructuring Shares (ERS) is a form of negative income tax. Other forms of subsidies and reliefs can also be thought of as negative taxation. Another example of negative taxation is the People-for-Jobs Traineeship Programme implemented by MOM to help the older retrenched workers. In this scheme, the Government will subsidise the salary of a retrenched worker above 40 years old for six months, if he is employed by a new employer. This is to make older workers more employable. Sir, I think this scheme should be expanded to help low-income Singaporeans to find work and incentivise employers to hire them. It is better for these Singaporeans to work than to face unemployment and rely on Government hand-outs. I suggest that the Government consider paying for their CPF, or a portion of it, when they work. Paying for their CPF will also help them in their retirement, a point which Dr Jennifer Lee has also mentioned. To prevent abuses, audit checks can be carried out on a regular basis. I hope the Minister would consider my suggestion. Portable Medical Benefits”
“Sir, may I have a clarification from the Minister? Can I take his answer to my question to mean that if an employer pays an employment pass holder $2,500 and, in bad times, he has to reduce the amount across the board by, say, 10%, he would be allowed to pay the employment pass holder 10% less than $2,500?”
“Sir, the Government has correctly led a reform to implement a flexi-wage system. This will enable employers to manage and reduce their wage costs without retrenching workers, and to stay in business when times are bad. However, for Employment Pass holders, especially those who are paid near the minimum salary imposed by MOM, the employer's flexibility to cut their wages may not be there. This will lead to a quandary for the employer. Does he cut the wages of only the Singaporean workers or does he cut the salary of every worker, which will imply that the Employment Pass holders may be paid less than the minimum salary? Sir, feedback from businesses shows that the minimum salary requirement for Employment Passes is a heavy burden for companies, especially those in the IT services. Minimum salaries are determined by MOM and are not market-driven. Companies' competitiveness is therefore affected by such a requirement. And if there is a need to cut wages to stay in business, the question is whether MOM will allow such companies to pay their Employment Pass holders less than the stipulated minimum salary. On another matter, Sir, feedback from grassroots expressed much concern that, with flexi-wage, the 13th month pay may be cut or removed in difficult times. Workers will find this hard to accept, as they depend on the 13th month pay for their year-end and new year expenses. Since monthly salaries can now be adjusted downwards in the event of a downturn, there is really no need to remove the 13th month pay. Can the Government assure the workers of this and take the lead in ensuring that the 13th month pay will not be removed?”
“Sir, besides problems obtaining finance and capital, our SMEs often face the problem of finding markets for their products and services, whether locally or in the international arena. Without markets they will not survive, let alone grow, no matter how much financial assistance the Government gives them. Without the economies of scale, SMEs will find it tough to compete with MNCs and GLCs, even when they may own a superior process or technology. I would like to ask the Minister, in what way can the Government help SMEs to find market opportunities, here and abroad. Mr Inderjit Singh has mentioned that one way is to help them to merge, to form bigger companies. Therefore, I would like to ask whether incentives such as pioneer status, be given to encourage SMEs to merge and form bigger companies, so that with economies of scale they can better compete.”
“By creating a favourable condition for some of these lower tech companies to remain in Singapore, we can solve a future problem of structural unemployment and social displacement for these people who had, in the past, contributed in one way or another to our economic success today. Extension of Rebates”
“Sir, one concern of many businesses in Singapore is the cost of land. It is very convenient for the Government to say "market price". However, the Government, being the largest landlord in land-scarce Singapore, wields great influence over the market price. Back in the days of a Government monopoly for telecommunications, effort was made to make sure that our telecommunication charges were cost competitive. An international survey of call charges was made regularly, and the results determined what the then TAS charged for our IDD calls. Our prices were pegged to the three lowest charges from the survey results. Even so, it can be argued that we were then over-charging, as evidenced from the sharp drop in IDD prices after liberalisation. Has a similar effort been made to benchmark our land costs? Has the Government a target occupancy rate for our land? I fear that with the impending economic recovery, land costs may spiral out of hand again. The Government should take measures now to ensure that this does not, like in the early 80s and the mid-90s, happen again. Such measures and policies will not only ensure our competitiveness and efficiency. The companies, which an affordable land cost attract, will provide employment for our people. On top of policies to ensure competitive land cost, I would like to further suggest that the Government put aside a proportion of cheap land to attract industries which are more labour-intensive so as to provide employment for people displaced by our restructured economy. Sir, not everyone can be retrained to write computer programmes or design IC chips. Our older, less skilled workers still need a job to feed themselves and their families.”
“Sir, in the years ahead, as our nation rapidly progresses into the new era, there would be men who may become displaced due to structural unemployment. There must be adequate economic safety net to help these people, especially the older ones, who will find difficulty to retrain. As the need for more and more subsidies arises, our national budget will become stretched if we do not become more targeted and coordinated in our subsidy programmes. Sir, I would like to ask the Finance Minister, going forward, whether the Government will conduct an overall review on its subsidy programmes. Will means testing be extended to other subsidies, besides healthcare, to ensure that subsidies go to those who need help in order to optimise our resources for social assistance? And finally, will policy regarding S&C and utility rebates change in time to come? Charity Status”
“Sir, in the budget for FY 2002 and 2003, the corporate taxation system had changed into a one-tier tax system. Dividends from companies are now taxed at corporate tax rate. And unlike the past system prior to that, individuals now cannot claim a tax credit from these dividends if they belong to a lower tax bracket. While such one-tier system is efficient for the IRAS, it is unfair for the lower income earners to be taxed at the same rate on their dividends as the top earners. In particular, retirees who have saved their nest-egg in high yield shares are unduly disadvantaged. They will see a sudden jump in their tax rates, from maybe next to zero to the corporate rate of 20%. Surely, we should not expect retirees who are not so well-off to be effectively paying the same rate of tax as our top earners. This cannot be right. It is also against one of the basic precepts of taxation, that is, taxation should be progressive. This, coupled with the increasing GST, has affected the finances of retirees. Savings which have already been taxed are now taxed again through GST, when the savings are spent during retirement years. Now the proceeds from the savings are being taxed at the top rate if you happen to invest in shares. Does this not contradict our efforts to educate our people to invest wisely, to become shareholders and to become more entrepreneurial? I urge the Government to re-examine the one-tier corporate tax system and, if possible, revert to the previous system where tax credits may be enjoyed from tax dividends. Supplementary Retirement Scheme”
“Work can be measured, not by the number of hours an employee stays in the office, but by the output obtained from the worker. Such schemes will allow mothers the flexibility to earn an income and, at the same time, have enough time to look after their children. Many mothers will welcome this since it will allow them to be at home with their children some of the time without having to totally give up their career. This will go a long way in reducing stress in raising kids. On this note, Sir, I support the Budget.”
“However, we need both public education and financial help to address the concern of would-be parents and persuade them to change their mindset. Members who spoke before me have provided many suggestions on how Government can help. Let me add a few for the Government to consider. One often cited reason for not having more children is the stress of the children's education. A common joke is that the mother has to take the PSLE two or three times according to the number of children she has. Many parents cannot resist arranging private tuition for their children for fear that their children may not do well otherwise. This can cost several hundred dollars to a thousand dollars per child per month. To address this fear and to ease the financial burden, the Government could increase the amount of money in each child's Edusave account. This can then be used to pay for tuition organised by schools for weaker students. Such a measure will go a long way to allay parental concerns of giving their children the best possible education. Presently, only the wife enjoys enhanced tax benefits for having children. Some have called for the benefits to be given to the husband as well since the wife may not be working or may have given up her job to ensure quality upbringing for her children. In fact, we should encourage mothers to look after their own children, if not full time, then at least part time. I suggest that tax incentives should be increased and be given jointly to the couple to be distributed as they see fit, instead of the mother, because child rearing is a joint responsibility. Finally, the Government should encourage employers, with the Government leading by example, to allow more flexi work, work from home, and part-time work.”
“In the 1980s, the target was a ratio of 10. What has happened to this target? How can we achieve "world class" status with a ratio like 25, 27 or even 30? To improve, we need to spend more money. This brings me to the concern expressed by many on the review by Government to up the percentage of operating cost undergraduates have to pay. As it is, undergraduates are already paying 25% of operating costs. If spending is increased to improve standards, they will have to pay more proportionately. If the percentage is further reviewed upwards, the impact on students and their families can be substantial. Sir, we must bear in mind that universities do not only engage in teaching. Other activities include research and acting as a think-tank for the Government and the country. Moreover, in the longer run, graduates pay higher income tax and the Government is more than adequately compensated for funding the universities. These graduates also contribute to our economy, generating profits for the companies they work for and, hence, again more taxes for the Government. Thus, the Finance Minister's assertion that education at the university level benefits the individual students more than society is highly debatable. Sir, my final topic is on procreation. Many reasons have been offered for not having children. I think primarily most couples avoid having children because either they do not want their lifestyle to be affected or they consider raising kids as stressful, especially in ensuring that their kids do well in school and later on in life. I agree with Members who argued that the decision to have children is more an emotional one than a financial one.”
“It seems unbelievable that our public hospitals can suddenly lower charges for certain medical services, sometimes by quite significant amounts when price comparisons were made public. Does this not imply that they were all charging more than they should for these items in the past? The Government too must continue to play its part in lowering business costs. Annual licence fees for businesses can be streamlined and lowered. Instead of the inefficient and troublesome process of collecting every year, the Government should consider, like our driving licence, issuing a multi-year or permanent licence at a much lower cost per year. Mr Inderjit Singh lamented that our cut waste effort has not gone far enough. This is one example where we can cut waste for the Government and cut cost for businesses. It is a win-win approach. Sir, I next come to the Education budget. My plea is: do not cut the Education budget. This is our investment for our future and Singapore's next generation. Without our people and a higher quality of life brought about by better education, what is there for SAF to defend? More, not less, money is needed in our schools and universities to improve standards. There is also a need to invest in better teachers, better teaching material, laboratory equipment, facilities, etc. All these need constant upgrading. Enrichment activities will also cost additional funds and these ought to be encouraged. As an example where improvement is needed, let me talk about the situation at the universities. Much has been said about our aim to make NTU and NUS world class. However, I note that the student-to-staff ratio in Engineering, at both NTU and NUS, is over 25. Is this in keeping with our aim to make these institutions world class?”
“I hope that the lessons learnt from the liberalisation of the telecom industry are fully put to use here so that we can enjoy the benefits from a competitive electric power market soon. Electricity prices may be a major cost item to some businesses and, hopefully, effective competition here will help lower their costs. Sir, easier access to capital and lower cost of capital will also help businesses. The SEEDS programme run by EDB has been successful in providing much needed capital for promising start-ups. In the long run, this scheme can be self-funding, or even make a large profit as the SEEDS companies succeed. We should consider expanding the SEEDS programme. If and when profits are made when SEEDS companies list on the stock exchanges, we should allow EDB to plough back their profits to fund even more start-up companies. Another way to promote the availability of risk capital is to give more tax incentives to angel or boutique funds. These funds make investments in high-risk early stage companies and we need more of them for entrepreneurship to flourish in Singapore. The proposed tax allowance for losses is a right step. Perhaps, in addition to this, a special low tax rate or tax-free status should be introduced for such funds. This will greatly help to improve access to capital and reduce cost of funds for entrepreneurs. Sir, apart from telecoms, petrol, electricity and financing cost mentioned above, lowering costs of other items like land, water, healthcare, Government services and fees, should be looked into. While land costs are manageable presently due to the economic downturn, a return to accelerating prices like the mid-1990s will be harmful to our economy. We must also keep a watchful eye over our healthcare costs.”
“Second, telecommunication. With the liberalisation of telecom services, competitors to SingTel like StarHub and M1 emerged. However, one can question: how effective is the competition? In the mobile phone market, have prices fallen significantly? What are the operating and net margins of the mobile phone companies? To illustrate how much prices ought to fall when there is effective competition, let us take a look at IDD prices. After several years of effective competition, prices have fallen from several dollars per minute for a call to the USA to less than 40 cents per minute. However, for the domestic mobile services, have the per minute prices fallen by the same extent? Before M1 started, when SingTel was the monopoly provider, the price was 20 cents per minute. Today, mobile calls cost nearly as much. Prices have not fallen by the desired amount due to non-effective competition. The EBITA margin and net profit margin of M1 say it all. These are 45% and 20% respectively. The Finance Minister is also correct to point out that competition in the last mile access has not materialised. IDA should re-examine the process of copper unbundling and wholesale prices to promote competition in the access to the last mile. We should also liberally allow, without onerous terms and conditions, many smaller players, even when each has a limited scope and reach, to obtain a FBO licence to provide services within a small locality. When there are sufficient numbers, they will collectively form effective competition to the bigger players. Third, electricity. We are now in the process of de-regulating the electricity market.”
“This law must have real teeth to compel companies who engage in unwholesome monopolistic activities like price-fixing and cross-subsidies, to give their customers a fairer deal. This is essential, especially in a small market like Singapore. Let me cite a few possible cases. First, petrol and diesel. For a long time, the prices of petrol and diesel at the forecourts of various petrol companies seemed to be identical. It has been claimed that there was no cartel, nor a price fixing agreement among the petrol companies. However, it is hard to believe that there was free competition in the petrol and diesel business, especially in the light of gross profit margins of over 30%. To demonstrate that there was competition, petrol companies even "competed" by giving away "free" tissue paper and drinks. Yet, when the petrol price war started at Bukit Timah, discounts of 10% or more could be found, causing mayhem along a major trunk road. Another telling clue is when Comfort began selling diesel. Suddenly, discounts of 15% could be found for diesel in most regular petrol stations. If there was free and effective competition, could the additional high margins for the sale of diesel be sustained in the past? Mr Speaker, Sir, I believe that one of the strongest measures against any monopolistic practice is a low barrier of entry into the marketplace. In order to discourage a quick return to the old situation, the Government should allow independent small operators to enter the market with minimal red tape. This can be encouraged by increasing the number of white sites for petrol stations. Where it is safe, companies like supermarkets and hypermarkets should be allowed to sell petrol and diesel. Only with such competition will we see the real fair price for petrol.”
“Mr Speaker, Sir, I would like to commend the DPM and Finance Minister for a good Budget for businesses and for encouraging enterprise. However, I note that relief for the low-income Singaporeans, eg, S&C and utilities rebates, has not been renewed. These relief packages may be vital to the needs of those still suffering from the effects of the economic downturn. I believe that in moving towards a new era, long-term structural unemployment in Singapore will be hard to eliminate. We, therefore, must have the social safety nets to take care of those who find themselves in a difficult situation. In fact, ground feedback tells me that many middle-aged and lower-educated Singaporeans are still facing unemployment problems and are concerned about their future. I do hope that the Finance Minister will re-consider continuing at least part of the relief packages given last year for the low-income or unemployed Singaporeans. Sir, like Mr Inderjit Singh, I believe that the effort to lower cost for businesses should be pursued relentlessly in order to preserve our nation's competitiveness. One measure that will ensure that our goods and services are not overpriced is open and fair competition. Lower prices improve our international competitiveness and improve our people's living standards through lower cost of living. Lower cost of living in turn will also soften the demand for higher wages, again leading to lower business cost. This is a "virtuous cycle" and a good environment for business, unless the business is one of those playing monopoly. In this regard, I strongly encourage the Government in its move to enact a competition or anti-monopoly law.”
“Sir, I have a few questions for the Deputy Prime Minister. Firstly, DPM Lee mentioned that the HDB would pass on the property tax rebates to tenants. May I ask him whether he will ask GLCs, such as CapitaLand, to pass on the property tax rebates to retail and restaurant tenants? Secondly, wage cost is also an important component of business cost. I understand that the Government has given foreign worker levy rebates to hotels. So, will the Government consider giving such rebates also to retail or restaurant businesses? Thirdly, will the Government also ask Singapore Power to consider giving rebates to those businesses which are affected by SARS? Dr Tan Boon Wan (Ang Mo Kio): Mr Speaker, Sir, during this SARS period, I think the demand for masks, thermometers and thermo probe covers has increased. I wonder whether there is a problem with availability. Is there also a problem with price profiteering by suppliers or retailers, and what action has been taken to make sure that supplies will be available and the prices are within control?”
“Madam, the Minister has not answered my question. I do not know whether he agrees with my observation and whether he will do something to make learning the Chinese language more fun and enjoyable. RAdm Teo Chee Hean: Madam, first, my apologies for calling you "Sir", an appellation that you do not deserve! But I will be glad to take Dr John Chen's suggestion and I will ask my language specialists to have a look at it, and see how many different combinations they can make and see how they can make language learning more interesting. I am happy to receive suggestions from any Member of this House who thinks he can make language learning more enjoyable.”
“Take, for example, the ci in cheng gong ( ), the related ci are cheng jiu ( ), cheng shu ( ), cheng wei ( ), cheng zhang ( ), cheng fen ( ), etc. So, although students may be taught the ci - cheng gong, they would not automatically know the meanings of all the other related ci. Unfortunately, there is no standard list of ci that students will be taught in school and be tested on. Some ci are taught and some are not. Different teachers will teach a different number of ci. But in the examinations, ci that has not been taught can appear. So, to prepare for the examinations and not to be caught offguard, students will attempt to learn all related ci by referring to a vocabulary handbook. Believe you me, the amount of time and effort they need to learn the meanings of all related ci listed in the handbook on their own or with the help of parents or tutor is just too much for them. It is a struggle. It is, in fact, impossible within a short time. So, when students are tested on ci that they have not come across, they will not have a clue on how to answer. And when they do not do well after spending so much time and effort, they become discouraged and, eventually, lose interest in the language. Sir, I hope the Minister would look into what I said and do something to improve the teaching of the Chinese language.”
“Sir, I wish to provide some feedback on the teaching of Chinese language in our schools. Over the years, I have observed a few things that happened. First, many bright students, especially those from English speaking homes, have shown little or no interest in the Chinese language. Some of them may have done well in examinations and scored an 'A'. But these were the results of learning the subject mechanically. In actual fact, they are not well versed in the language. There are also those who do not do well in the subject and find learning the language a chore, if not a struggle. However, they do much better in other subjects. Do we know why? Is it the home environment? A prominent Singaporean businessman recently told me his experience. His is a totally English speaking home. Two of his children struggled miserably in their Chinese language in primary school. After primary 6, the father decided to give them a different environment. One was sent to the UK and the other to the American School in Singapore. He told me that after a year in the new environment, his children are not only scoring top marks, but also showing great enthusiasm in the Chinese language. Granted, the standards may be lower, but the psyche is now totally reversed. So the question is: why can our schools not make the learning of Chinese language more enjoyable? Let me offer one important reason. Unlike English, the Chinese language has, what we call ci ( ) which is formed by one, two or more Chinese characters. Each ci has a different meaning and there may be thousands of them, because of the combination of one or more characters. Even among a set of ci that shares one same character, each will have a different meaning and nuance.”
“First, the 'experimental' level and then the 'serious or committed' level. Please allow me to explain. (a) The experimental level type of entrepreneur hub can take a leaf out of places like London's Covent Garden and New York City's Greenwich Village. Its emphasis is on low cost and simple set-up, although not necessarily only in artifacts or souvenir trades alone. This encourages budding entrepreneurs and niche entrepreneurs to market test their product and creativity, and adds vibrancy to a city. It could also become the breeding ground and form a part of the critical mass needed for the emergence of serious entrepreneurs. (b) The serious or committed level. This can take the shape of our One-North project, or the Southampton Enterprise Hub in South East of England. The pillars of such a hub are knowledge and institution networks, trained persons and a sophisticated information and communication structure. In other word, links with academic institutions will enable research and market information, so that IP innovations can be brought out of the laboratories.”
“However, he will only do so if the rewards outweigh the relative risks. The costs of land and labour must be kept reasonable, and the upward pressure on these two factors must be kept in check. On the other hand, capital return is at an all-time low now and it is, indeed, opportune for entrepreneurs to access funds and, in return, give a better return on capital, albeit with some degree of risks. On accessing funds, again, it has been talked about many times in this House. But it is a constant refrain of SMEs that there is a lack of adequate supply of risk capital. There appears to be an inherent risk-averse culture of capital providers, particularly banks, for risky start-up efforts. The Global Entrepreneurship Monitor (GEM) Report 2001 noted that failures are not tolerated and capital providers are suspicious of entrepreneurs. This culture has created what the GEM study termed as a 'capital gap', which is a situation where funds needed at start-up stage are not available, but pour in when the entity is already successful. This will not work. There must be easier access to a constant stream of risk capital, or else, it is a non-starter. Perhaps it is time to set up some sort of a SME Bank, that a few of my colleagues have spoken about, where entrepreneurs can have access to seed capital and start-up funds. And a new set of rules should apply to these budding entrepreneurs, away from the typical collateral-based lending. Government grants need not only target high value add type of entrepreneurs, but be made available to a whole variety of businesses. In addition, I would like to propose the establishment of a network of a series of colourful entrepreneur hubs to encourage budding entrepreneurs and even the retrenched to venture. This could be done at two levels.”
“The end result? They all lost money. I am sure Members can cite a few more examples. What we really need are entrepreneurs with original ideas that contain a good amount of innovation that can be protected legally. Entrepreneurship will only flourish when our young idealists dare to dream, be willing to sacrifice their time and effort to chase these dreams and be brave enough to risk all for their belief. A few will succeed and reap the benefits. Many will survive and get by, and some will fail, but the Government must create the right environment for these people to bounce back and try again. Sir, I have made general points on what characterise and promote entrepreneurship. For us to succeed, it is necessary for the Government to consciously and constantly build into its policies, be they social or economic, be they in school or the workplace, an environment conducive to the nurturing of entrepreneurs in Singapore. Miss Penny Low: Sir, I am impressed with the Government's initiative to market test non-core Government activities, and divest non-strategic Government-linked companies. This does open up tremendous opportunities for both mature and budding entrepreneurs. However, these well-intentioned moves must consciously avoid the evil of a private monopoly replacing public monopoly, especially if that monopoly is a privatised "Government-cloned" monopoly. Could the Minister comment on what measures will be put in place to prevent this development? As I have highlighted in my Budget debate speech, we will need to do more to rebalance some of the risk-reward ratios of our four factors of production, so as to incentivise our entrepreneurs. Ultimately, the entrepreneur is the ultimate value creator, who employs the other factors of production.”
“Sir, many Members have spoken about Government's red tape and the need to remove it so as not to stifle entrepreneurship. However, I believe that what is most important and difficult to do is to effect a mindset change in the civil service, from one of rigid implementers of rules to a friendly business advocate. This will contribute positively to creating an environment where entrepreneurship can flourish. However, such a change can only come about if top Government leaders, the media and the general public keep up the publicity, exhortation and, if necessary, pressure. To be truly successful, our Minister in charge of Entrepreneurship certainly needs all the help he can get, to not only remove old rules and red tape, but, more importantly, change all our civil servants' mindset, so that they will become pro-business, customer service oriented and advocates to the businessmen that they deal with. 4.30 pm Sir, creating the right civil service mindset is only one aspect. Entrepreneurship requires many attributes. Besides talent, it requires the willingness to take risks, the grit to keep on going despite failure, and the passion and belief in a dream. How do we nurture such qualities? Do we suffer from too much order? I tend to think so. Maybe we need to loosen up a little, allow greater flexibility and diversity. We should not be too quick to put someone down just because he is a little different or has different strengths and aptitudes. As we all know, there is strength in diversity. A diverse economy is more resilient and more survivable. Another problem we seem to have is that of the copycat entrepreneur. Look at the bubble tea craze. Just because one or two outlets made some money from this idea, we had hundreds of bubble tea businesses sprouting up overnight.”
“These conditions placed upon the lease, such as subjecting transfer of lease to JTC's approval, make it less attractive as a loan collateral due to the inflexibility imposed. This adds to the lessee's financing cost. Sir, let me also address one more point on Government fees. I understand that most fees are decided based on a cost recovery basis. DPM has said that otherwise, the taxpayer will have to pay more tax. My question is: are the costs calculated based on the most efficient operations model? How often does the Government review the work involved in processing an application and ensure that it is the most efficient? Let me also add: do the calculations take into account the additional taxes collected when these approved businesses become successful in later years? I would like to suggest that the Government take a business chance. Show by example the meaning of entrepreneurship. Lower these fees to encourage more business applications. Set them at a level to discourage frivolous applications, not more than that. My argument is that in a few years' time, the Government will be more than compensated for its own entrepreneurial spirit of lowering fees by collecting a larger tax revenue from the additional businesses that would be set up. Sir, would the Minister respond to my views?”
“Sir, many Members in this House have been lamenting the high cost of doing business in Singapore during the Budget debate. The ERC Report also seems to suggest that our cost of doing business is high. However, we have also heard contrary opinion that business cost is manageable. Besides the anecdotal evidence, have the various Government agencies gathered more facts and information regarding this matter? Have we conducted an objective benchmarking exercise to compare the cost of land, utilities, Government fees, etc, against competing countries? We should conduct such exercises at regular intervals, say, every three years, to check our business cost structure. The study should also normalise such costs to take into account our higher productivity. For example, we can check what and how much are the various cost components to produce, say, one disk-drive or one mobile phone. If the land cost component is too high, then we can take steps to reduce it. Likewise, if the utility costs are too high, we can also reduce them. On land and factory cost, the Government policy has always been to charge local market price. My question is: as the largest land and factory supplier, how does the Government determine what the market price is? Not long ago, a company told me that it had rejected a factory offer by JTC because of its price and bought another factory from the market several months later at a substantially lower price. In an economic downturn such as the present one, there are JTC and HDB factories that are empty. How does the Government then determine market rent for these and other factories that are unoccupied? Is downward adjustment of market rent for existing lessees fast enough? Another point to note is that JTC land is often leased with strings attached.”
“Other recent examples with international aspirations are Tee Yih Jia Food and even Super Coffee. They are making increasing presence abroad. Government and GLCs, such as SIA, can help in promoting their products. Perhaps, we can start by serving Tiger Beer, Tee Yih Jia's roti prata and Super Coffee exclusively at our Embassy functions abroad. Would the Minister look into these suggestions?”
“More remote cities, for example, those in China, India and even South America and Africa, could be explored. They can be our business scouts and pioneers to open up new territories for our enterprise. 2.00 pm If resources are a problem, our Majulah network could be fully exploited to obtain support for information gathering, contacts, and assistance with the initial work that needs to be done when a business first starts up in a new city. A scheme with volunteer businessmen can be instituted. I know of companies who are quite established in certain cities in China where IE Singapore is not represented. These companies may be quite willing to assist IE Singapore in its efforts to help other Singapore companies. Finally, I agree with the ERC when they pointed out that what Singapore needs are a few more global brands. Strong brands allow companies to enjoy high gross profits and continued customer support. We are already very successful with SIA and Creative Technology. Could we get more? How can the Government help? Global branding requires global awareness, global presence, and global recognition, and this is not easy to achieve. Support and assistance from the Government can go a long way. Even SIA needs Government's help, in terms of securing air services agreements from other countries. The Government should therefore seriously consider identifying a few Singapore products and help them to grow both locally and internationally. Take, for example, Tiger Beer, our earlier policy on import of beer has enabled it to grow strongly in Singapore. How can we now help it to grow overseas? Although widely acknowledged as one of the best beer by expert beer drinkers, its brand presence in Europe and America is still weak, if not non-existent.”
“Sir, many businessmen nowadays bemoan the difficulties of doing business in Singapore. These sentiments are the result of not just the current economic downturn, but also the impact of global competition. The fact of the matter is that our domestic market is just too small - only 4 million people. On top of this, the MNCs, the international companies and businesses will come into our backyard and take away our domestic customers. Singapore companies must therefore globalise or face the threat of survival. How can the Government, as the leading member of Singapore Inc., help? I feel that IE Singapore should step up its effort to increase Singapore's share in the global conscientiousness for her products and services. The ERC recommendations in this respect should be fully supported. Our presence should be enhanced through more active participation in events like trade shows and exhibitions. At such shows, for example, CeBit or Comdex, it is not unusual to find entire halls fully occupied by Taiwan, represented by both large and small companies. The Korean presence is also very strong. Many more of our SMEs must be encouraged to take part in such events. Perhaps our Government agencies could help to lower costs by buying space, hotel rooms, air tickets, etc, in bulk and through grants and subsidies. Secondly, IE Singapore should also actively consider setting up offices in more cities to look for new business opportunities whenever there is sufficient interest. These offices can act like representative and agent offices to handle enquiries and channel them back to the appropriate companies in Singapore. References like trade, product or company handbooks should be made freely available in these cities.”
“Sir, like the previous speakers, I would like to touch on the problems faced by SMEs in obtaining loans for growth. Our banks are usually too risk-averse. And when they do not know the SME or its business, they are reluctant to lend money to the SME. The micro loan under the Small Industries Financing Scheme (SIFS) set up by the Government does resolve this problem to a certain extent. However, the micro loan only offers a small amount of money to the company applying for a loan. I would therefore like to suggest another possible way for SMEs to obtain loans for growth. In China, there are commercial funds set up which guarantee the loans made by banks to companies in return for a fee or other benefits by stock options. Usually, these funds are more familiar with the business of these companies. So, they are more willing to undertake the risk that banks avoid. The amount of loans these funds are licensed to guarantee can be up to seven times their capital. If allowed in Singapore, they can complement the SIFS, as well as the Venture and Angel Funds, in financing our Singaporean entrepreneurs. If there is a demand for such a scheme, would MAS consider allowing it to operate in Singapore? May I have the Minister's reply on this?”
“In the neighbourhood watch scheme, an allowance can be paid to those who need a job for their role in providing some neighbourhood watch service. This could include neighbourhood patrols or even simply stationing themselves in key areas to deter petty criminals and other offenders. In difficult times like this, there is a tendency for such crimes to increase and this will be a good counter measure. Finally, Sir, I would like to close with a comment on the budget deficit. I do realise that some of my earlier recommendations need to be funded. DPM has already taken pains to point out that the FY 2003 Budget will be the third consecutive year of budget deficits. However, many have fed back that the Budget could have been more generous. The projected deficit is $900 million. But during better years, we achieved surpluses of around $4-$5 billion a year. Why can the Government not contemplate a deficit nearer such a level in what is notably a very trying and uncertain time? The war on Iraq seems inevitable. It may happen within days. The Prime Minister has advised Singaporeans to expect tougher times ahead in the next few months. The outcome of the war is an unknown. What if it is an unfavourable one affecting adversely the political and economic environment of the world over a longer period of time? Do we have the assurance of the Government to introduce another off-Budget package of measures to help Singaporeans? In the light of what I have said, I support the Budget. However, I hope that DPM will give due consideration to my suggestions. And I hope he will also give a commitment to provide further generous off-Budget measures to give the economy a much needed boost should the worst in the Iraq crisis come about.”
“For older workers, I would like to urge the Government to consider subsidising part of their CPF payments, instead of simply instituting a cut in the contribution rates. This achieves the intention of lowering costs for employers and will also protect the workers' retirement nest-egg from shrinkage. The amount of Government expenditure needed is small compared to the total expenditure. The money spent here is better spent, more targeted, than simply handing out shares or money across the board. Further, I would like the Government to consider instituting a "paid" community or social work scheme. The benefits of this are two-fold: the old, chronically sick, underprivileged and the community will gain from the services provided and improve their quality of life; and the longer-term unemployed will find some meaningful work to do for some pocket money. The newspapers reported that one Town Council is already doing this in a limited way by "employing" those out of work to do checks and inspections on common facilities so that a better level of maintenance can be achieved. The Government can provide some money for this and other schemes to be instituted and expanded. These can include a social visitor scheme for the old and the sick who are alone at home, or schemes such as neighbourhood watch, etc. In the social visitor scheme, our unemployed can be trained to provide visits to the old, infirm or sick. These are the underprivileged who would normally be left alone at home, unable to move around easily, and need help with simple errands or maybe simply a friend to talk to. We can certainly improve the quality of life for such unfortunate people by taking care of their basic needs and, at the same time, provide some useful work for those that are unemployed.”
“This measure will encourage our companies to go overseas and globalise. There may be some concern of abuse. However, the Government is already aware of this possibility and I am sure appropriate measures, like capping the quantum of losses allowable for group tax relief, or a registration or monitoring system, can be instituted to prevent this. Sir, the new knowledge economy will throw up one undesirable effect, ie, structural unemployment. There will be workers who will find it too difficult to retrain and reskill, either due to their age or other factors. As a modern society, we must provide some assistance to such people, not only in the form of a pure monetary handout, but also meaningful work so that their self-esteem does not suffer. My earlier suggestion on reserving some cheap land for lower-tech industries will help. However, more can be done. I am sure Members will agree that financial help which is tied to the performance of some meaningful work is far superior to a pure handout, like ERS shares. Such work schemes may be difficult to implement due to the concern that some unscrupulous people may abuse it. Nevertheless, we should not be swayed from the higher intent and should find ways to overcome these difficulties. It is a good idea to counter structural unemployment by using the concept of "negative income tax". This measure is better, more meaningful and more effective than the "handouts" given since the negative income tax is associated with job creation. The Government already provides subsidies for various training and apprenticeship schemes. In general, this can be further extended more widely and for longer periods, if necessary.”
“If not, then these rebates and reduction are certainly needed to lower business cost. Heads, we win; tails, we also win - what could be better? Another threat we face is the hollowing out of some of our industries and the loss of jobs. The ERC has reported that we have sufficient industrial land. Therefore, we should start to consider pricing land according to industry use to hold on to even the lower-tech industries through competitive land prices, and dissuade them from migrating to low cost countries. We need to do this in order to provide continued employment for Singaporeans who find it difficult to re-skill. It is better to do this than to give them social assistance. Perhaps in order to limit any undesirable effects, this measure can be strictly targeted. We can start by putting aside only a small portion of our JTC land bank for this purpose. This is better than leaving our land vacant when these lower-tech companies migrate. Sir, capital is another important factor. I agree with the Government on various measures to encourage the people to keep their capital or money in Singapore. Lower direct taxes will allow for capital regeneration. The stable Singapore dollar policy is also beneficial to capital inflows. Elimination of taxes on profits repatriated from abroad will also encourage more Singaporeans to bring back much needed money from their overseas operations and help lift the domestic economy. Abolishing taxes on interest earned from deposits in Singapore will also encourage money to remain here. The capital allowances for all capital items will also be beneficial to encourage risk-taking. I also urge the Government to allow losses from an overseas subsidiary to be consolidated at the group level for taxation purposes.”
“However, while caution is prudent, I urge the Government not to "do nothing" or too little since land cost is one major factor affecting our competitiveness. Two measures announced by DPM during his Budget 2003 speech are for a property tax rebate and rental rebates. Unfortunately, these measures are only for six months. I find this too cautious and feel that we can be far more generous. Let me explain. DPM has justified that the freeze in the restoration of the employer's CPF contribution rates for a further two years is to give certainty to the employers, MNCs and investors about the CPF issue. It is intended to send a strong signal that we are serious in solving our problems and that we are determined to keep our business cost competitive. This is the sacrifice our workers are asked to make. But when it comes to Government rebates, I am puzzled that the Government is only prepared to give six months. Should not the Government also make the same commitment of two years on land and other costs and send an equally strong signal to investors? The property tax rebate and the extension of rental rebates, together with the reduction of foreign worker levy and the reduction of diesel tax, etc, should also be given over a period of the same two years, instead of only six months. This will certainly send an equally strong signal to our workers. Yes, with the war looming and economic uncertainties reaching an unprecedented height, perhaps the Government should be even bolder and increase the quantum of the property tax and rental rebates given. The longer period of two years is not as "reckless" as it seems. If the economy recovers, the Government will have more tax income and can well afford it.”