Josephine Teo
Singapore
“The Government's risk-calibrated approach to data security in artificial intelligence (AI) systems was explained in a written reply, given on 9 January 2024, to related questions asked by Dr Tan Wu Meng and Mr Gerald Giam.”
“Access to frontier models is helpful for specific use cases, such as advanced research and cybersecurity. However, these form a small proportion of artificial intelligence (AI) demand. For most industry, Government and research uses, capable models are already available.”
“The Government tracks the development of technical standards for identifying artificial intelligence (AI)-generated content, including watermarking and digital provenance approaches, as part of broader efforts to manage AI-related risks.”
“Upon receiving a valid report of intimate image abuse, the Commissioner of Online Safety is empowered by law to direct Online Service Providers (OSPs) to disable access by Singapore users to the specified harmful online material. This direction may be extended to cover identical copies found on the platform.”
“The Government is committed to keeping children safe online. We have announced plans to extend age assurance requirements to designated social media services, including requiring platforms to keep users under 13 off their services.”
“Under the Online Safety (Relief and Accountability) Act 2025, the Commissioner of Online Safety is empowered to issue directions to platforms to remove specified harmful content, including intimate image abuse.”
The complete record
Every one of 2,900 lines we hold for Josephine Teo, in date order, each linked to its source. Free to read, in full, without an account. Page 50 of 58.
“Mdm Chair, I should also remind the Member, Mr Lim, that we have made some adjustments to the ERP charges on Saturday. The gantry along Nicoll Highway was shifted. It used to be where the Stadium was Page: 111 and it has gone further down. What this has done is to enable motorists who are using Nicoll Highway to access ECP, to avoid having to pay the ERP charges. That is one adjustment. Next is, although it is not immediately intuitive to a road user that it is part of the network of roads that leads to the Orchard and Marina area, it is, in fact, a substitute for drivers. That is why the gantry is still needed. Assoc Prof Dr Muhammad Faishal Ibrahim: Madam, I must admit that I admire Mr Lim's persistence in benefiting his residents. I would like to share with Mr Lim that for each traffic junction on each road, there are different flows that we have to look at. Even though the Member mentioned a few roads which have similar characteristics, looking deeper into the flow, you will realise that it is different. I have brought the issue up to LTA when the Member raised the issue with me. We realised that at that junction, unfortunately, if we included a traffic signal, it will significantly impede the flow of traffic.”
“I would have to get back to you on that. Let me check on it. The Member's other question on actual implementation, we have said so on many occasions that for the taxi companies, when they are taking actions to try and encourage the taxi availability standards to be met, that they are also to be mindful of the impact on the drivers. This is the same stand that we continue to take. It is good that LTA has continued to raise this issue with the taxi companies. We certainly agree with Mr Ang that it is useful to find out what more is happening on the ground. And, we will do so.”
“Mdm Chair, the Member's second question first. I do not have data to indicate that ridership has dropped and, if he has a specific question on that, I can get back to him on that.”
“Since the Page: 81 implementation of the surcharge in July 2013, the percentage of high-emissions models registered has halved to less than 7%, compared to the first half of 2013. In the second half of 2013, 59% of the models were in the rebate bands, compared to about 40% in 2012, had the scheme been in place then. The CEVS has been extended to June 2015. This was announced during the Budget. We will consider Mr Pritam Singh's earlier suggestion during the debate to sharpen the incentive and disincentive structure when the scheme is up for review. To conclude, Madam, I would like to return to where I started, which is to advocate for a sustainable model of transport mobility that places the most emphasis on high-quality public transport, supplemented by good access to personalised services, including taxis, car-sharing and cycling, and controlled growth of car population and usage. Public transport must be our mode of choice for as many trips as possible. Whatever the number of cars we can accommodate on our roads and in our residential areas and offices, better that more are shared by many than owned and used by a few. This will require a shift in social norms and our mobility culture, which is in complete alignment with the broader shifts that we hope to see in our journey of economic and social transformation.”
“Take an owner of a heavy vehicle with five years of vehicle life remaining and four years of unused COE. And let us assume that the Prevailing Quota Premium payable for a 10-year COE renewal is $50,000. Under the current ETS, the owner transfers the unused four years of COE to the new vehicle when he deregisters his old one. He gets a COE bonus of one-and-a-half years, or 30% of the five years of remaining vehicle life. So, that is the blue part, which is the COE bonus. And, therefore, he needs to pay for an additional four-and-a-half years of COE, and that is $22,500; already less than half of the Prevailing Quota Premium. But under the enhanced ETS, he will get a much bigger bonus. How does it work? The remaining four years of COE is similarly transferred, but the owner gets a full five-year bonus COE, or 100% of the remaining life of his old vehicle. As a result, he need only pay for one additional year of COE and that is $5,000. The scheme is, therefore, especially helpful to businesses, by bringing down the COE cost of vehicle replacement, with potential savings of thousands of dollars, up to $30,000 in some cases. In this case, he gets extra three-and-a-half years of COE bonus free of charge. Not only that, he only needs to pay $5,000. The enhanced scheme will kick in tomorrow and will be effective till end April 2016 instead of 2015 to give vehicle owners more time to decide. Nevertheless, we encourage owners to do so early, as they stand to enjoy higher bonuses when they replace their vehicles earlier. On suggestions to do more to mitigate carbon emissions, we have done so with the Carbon Emissions-based Vehicle Scheme (CEVS).”
“I will now address Mr Lim Biow Chuan and Mr Pritam Singh's questions on parking. Today, LTA regulates the overnight parking of heavy vehicles so that they do not cause disamenities in residential estates. These vehicles are required to secure a parking lot in an authorised parking place under the Vehicle Parking Certificate scheme. It is an offence for a heavy vehicle that is not in use, which is between 12.00 midnight and 6.00 am, not to be parked in its designated parking place. For places of worship, LTA exercises flexibility when enforcing illegal parking during praying hours or special events, as long as the vehicles do not cause obstruction or pose safety concerns. This is the approach regardless of religion. Most of the religious organisations proactively do their part to manage the traffic and advise their worshippers not to park indiscriminately. Nevertheless, when there are complaints about indiscriminate parking that Page: 80 endangers other road users, LTA will take strict enforcement action. Last but not least, Madam, I would like to share my Ministry's contributions towards managing the carbon footprint of our transport sector. One strategy is to control vehicle population growth. Another strategy is to reduce vehicle emissions, especially by old diesel vehicles, through the Early Turnover Scheme (ETS), which Mr Ang Wei Neng asked about. More than 850 vehicles have been replaced with cleaner models, under the ETS. We hope to improve on this rate of improvement by sharply increasing the COE bonus offered under the scheme. This could lead potentially to the early turnover of the oldest and most pollutive diesel commercial vehicles, comprising 20% of all Cat C vehicles. Let me explain how the enhanced COE bonus works.”
“We take this approach because the roads leading into the city centre are fairly good substitutes for one another. Page: 79 The gantry at Nicoll Highway, which Mr Lim Biow Chuan asked about, is part of this cordon. If the gantry were not operational on Saturdays, traffic would naturally gravitate towards Nicoll Highway, resulting in greater localised congestion there. Mr Lim has asked whether ERP ought to be levied on Saturdays at all. In fact, the ERP charges in some sections, for example, in Orchard Road, were adjusted in lieu of the feedback. Mr Png Eng Huat asked about the Marina Coastal Expressway (MCE), which was designed to improve connectivity to the New Downtown at Marina Bay. LTA had undertaken a very comprehensive planning and design process to ensure that the MCE caters to both short- and long-term land use needs. In January, Minister Lui Tuck Yew updated Parliament that, with the exception of the morning of the first working day, peak-hour traffic along the MCE and the adjoining road network has been generally smooth-flowing. MCE has, in fact, resulted in reduced ERP charges paid by drivers, which is within our planning expectations for the short-term as the New Downtown at Marina Bay is currently only partially developed. As for Mr Png's query on the costs of the MCE, we expect to keep within the revised MCE budget of $4.7 billion, with possibly some savings. The budget for MCE was revised upwards from the original $2.5 billion, and a full explanation was given in the Parliament sitting in January 2009. To recap very briefly, the cost estimates were revised due to three factors: higher construction and material costs, poorer than expected soil conditions, and higher regulatory standards.”
“We note Mr Ang's suggestions, but it is probably best to leave things be for a while before introducing further changes. Let me now touch on ERP. Last year, we announced that LTA has completed the technology trial for the next generation ERP system (ERP2), which Mr Cedric Foo and Mr Ang Wei Neng asked about. This is necessary as our current ERP system is coming to its end of life. If we do not replace the ERP system, it will become more expensive and difficult to maintain and repair. After careful study, we have established the viability of the technologies on offer and will proceed to call a tender in the next few months to develop the ERP2 system by around 2020. With ERP2, we will be able to calibrate the charging for motorists in proportion to the congested road segments they use, which is a fairer approach. ERP2 can also provide value-added services, such as navigation, payment for roadside parking in lieu of parking coupons and real-time traffic information, which Mr Ang also noted. There could be scope to review the off-peak car and we can do so in due time. Members have raised possible concerns over the loss of privacy with ERP2. As with any technology, there are benefits as well as trade-offs, but rest assured that there will be appropriate safeguards to minimise privacy concerns. There will also not be any change in the pricing policy and no new charged roads while we transit to the new technology. 3.00 pm Let me respond now to questions raised by Mr Lim Biow Chuan and Mr Png Eng Huat. For the city centre, we charge ERP based on a cordon concept. This means that ERP rates are based on the collective traffic conditions on key routes within the cordon.”
“The intent of re-categorisation was simply to retain Cat A more for mass market car buyers, and early indications are that this objective has been achieved. The median OMV for cars registered since the re-categorisation was $19,000 in Cat A, compared to more than $26,000 before – a drop of almost 30%. The share of cars with OMVs above $20,000 has also nearly halved. Mr Ang suggested splitting Cat C into two sub categories, which some Members had also raised last year. We are sympathetic to businesses that need the use of vehicles and we have provided concessions to commercial vehicles. These include the nominal Additional Registration Fee (ARF) of 5% of OMV, and the lower effective road taxes compared to cars and exemption from diesel fuel taxes on top of road tax rebates granted last year, and also repeated five-year COE renewals. But the splitting of Cat C will result in relatively small categories. Cat C COE prices would be generally more volatile, and businesses would have to deal with higher price uncertainty. That is why LTA had decided not to go ahead with it. We are open to suggestions on how the Government can try to help with rising business costs, but I should caution that it is generally difficult to do so within the COE system without implications for other vehicle users. In the last year or so, we have listened to feedback and made changes to the COE system where sensible. These changes include: (a) taking taxis out of Page: 78 Cat A; (b) lowering the rate at which all vehicle categories contribute to Cat E; (c) lowering the vehicle growth rate to 0.5%; (d) re-categorising Cat A; and (e) shortening the quota cycle to quarterly instead of half-yearly periods to be more responsive to de-registrations. The motor industry is still adjusting to these changes.”
“Mr Ang's suggestion will, indeed, improve convenience for taxi commuters, but it will not be fair to the many other public bus users who will incur longer waiting times to board and alight if there is a taxi obstructing the buses. Besides, it is safer for the elderly and the pregnant to be dropped off or picked up at a proper driveway. Mr Ang Wei Neng made several suggestions regarding COEs, for example, redefining Category (Cat) A, by Open Market Value (OMV). Madam, OMV can fluctuate quite significantly for different batches of the same car, due to variations in exchange rates and car model specifications. This would result in certain cars falling in Cat A at certain times, and in Cat B at others. Page: 77 For example, a Mercedes-Benz A180 brought in by a parallel importer in November last year had an OMV of $19,800, while the same model brought in by an authorised dealer in January this year had an OMV of about $25,100, quite a big different. Likewise, the Honda Civic models registered in Singapore had OMV ranging from about $19,000 to more than $25,800, from 2010 to 2012. So, within the two-year period, the Honda Civic had OMVs that fluctuated quite a bit. On the other hand, a technical criterion, such as engine power, is generally more stable and can be measured accurately. It is also a reasonable proxy for value, when coupled with engine capacity. This is why we re-categorised Cat A to be based on both engine capacity and engine power. Should re-categorisation lead to lower Cat A COE prices? Much as we would all like to see softer COE prices, COE prices are ultimately the result of demand interacting with supply.”
“For example, a table of surcharges should be prominently displayed in all taxis. Where payable, they should be highlighted to commuters before the start of a trip. However, the main bugbear for commuters is not surcharges but the many variations of flag-down fares. Generally, these fares should reflect the rental costs of taxis. As taxis are bought at different times, and are of different ages, models, fuel efficiency and so on, their costs are different. Taxi companies have taken to charging different rental rates to reflect these varying costs. Consequently, the companies have also set different fares payable by commuters, commensurate with the different rentals paid by taxi drivers. While taxi companies would do well to consider if they can simplify rental and fare structures, we are concerned that this may lead to a common levelling up of rentals and fares. While commuters and drivers may prefer a simplified fare and rental structure, I doubt they would prefer one where all fares and rentals are harmonised upwards. This is why any transition will be tricky and needs to be thought through carefully to ensure that commuters and drivers are not worse off. As a next step, LTA plans to engage regular taxi commuters to get a better sensing of their preference, and will share these findings with the NTA and taxi companies before considering further steps. Finally, let me address Mr Ang Hin Kee's suggestion to allow taxis to pick up and drop off passengers at bus stops. We have already made a concession to allow taxis to do pick-ups and drop-offs along the roads in the Central Business District, as long as they abide by the bus lane regulations.”
“We recognise and appreciate that some drivers have made adjustments, and will monitor the situation before raising the standards further. In addition, we will intensify efforts to better match taxi supply to demand. To shorten waiting times at taxi stands, an issue brought up by Mr Dhinakaran, LTA will provide more real-time information to both commuters and drivers. For example, commuters will be able to compare waiting times at taxi stands by scanning quick response codes with their smartphones. LTA will also try out a system to transmit live demand data at taxi stands so taxi companies can broadcast to their drivers. In doing so, we will also reduce empty cruising by taxi drivers. Mr Seng Han Thong highlighted the trend in some cities towards smartphone taxi bookings. We agree such applications will improve the overall matching of supply and demand of taxi services. We will assess how to evolve our regulations to benefit both commuters and taxi drivers. Mr Ang Hin Kee has called for a review of the taxi fare structure. Indeed, the different fare structures are confusing and frustrating to commuters. The problem, however, is multi-layered. Most commuters can see that peak-period surcharges are an effective way to get more taxis on the roads when demand is higher. Most also agree it is fair to compensate drivers for their late night shifts, or trips involving far-flung locations which usually entail an un-hired drive in one direction, either to or fro. As it is, time-based surcharges are standardised across companies. Location-based surcharges may differ from building to building, but taxi companies tend to levy the same surcharge for each location. Page: 76 Surcharges play a part in matching demand and supply. They can be retained with some refinements.”
“The monthly gross earnings for two-shift taxis are generally also one-and-a-half times that of one-shift taxis. This suggests that the extra mileage that they cover is not simply a case of empty cruising. All of us agree that taxi drivers should, indeed, get sufficient rest, both for their own welfare and for the safety of their passengers. With two drivers sharing a taxi and each of them choosing to rest one day a week, each driver needs to clock four to five hours a day for the taxi to meet the minimum mileage requirement. A taxi hirer with no relief driver would have to clock eight to nine hours daily, with one rest day a week. This is assuming an average speed of 30 km/h, not very high. We also recognise that there are some days when individual taxis may not meet the mileage requirement, for example, due to illness or family exigencies. That is why the standard is applied on a fleet-wide basis. That is 80% and not 100% of a company's fleet need to meet this requirement every month. Page: 75 The current standards also give drivers flexibility to choose their own rest days, whether on a weekday or a weekend. The taxi only needs to meet the 250-km requirement on 80% of the days in a month, and not all the days. It is up to the driver to decide which days they want to meet it. This approach is better than one where LTA specifies the days that drivers are exempt from the requirements, and also less disruptive to commuters who would otherwise find most taxis out-of-service on the same days. Overall, the taxi standards aim to strike a good balance between giving taxi drivers some flexibility and making sure that most passengers can get hold of taxis when they need one.”
“Respondents were asked to rate the importance of each attribute, on a scale from one to 10. All eight attributes had an average score at or above nine [Please refer to Annex 9.] From the commuter's standpoint, taxis should be available when they are needed. Besides better matching of demand and supply, which I will talk about later, better taxi availability therefore means: (a) each taxi being driven more Page: 74 regularly; (b) more taxis in service, especially when demand is highest; and (c) more phone bookings being catered to. These are exactly the outcomes we sought to improve by introducing the Taxi Availability (TA) standards in 2013, after close consultation with the taxi companies and National Taxi Association (NTA). We have, indeed, seen improvements in all three aspects. There are more taxis in service, especially during peak hours. The booking rate has increased to almost 95%. The most significant outcome, however, is the reversal of the trend of a declining share of taxis operating on two shifts. From 2006 to 2012, the share of two-shift taxis declined steadily from 60%, to just 52%, a drop of eight percentage points down in six years. The share has climbed back up to nearly 60% in the one year since the TA standards were introduced. This trend reversal is significant because the average daily mileage for a two-shift taxi is 450 km, one-and-a-half times that of a single-shift taxi. In other words, taxi availability can be improved without expanding fleet size if more taxis operate on two shifts, which is the case in other cities where taxi services are rated well by commuters, for example, in New York. This does not mean, however, that taxi drivers have to drive unreasonably long hours or cruise empty more often, a concern which Mr Ang Hin Kee has raised.”
“Some have too few lots or are already over-subscribed. So, we will make a bigger push to set aside parking lots for shared cars in car parks with sufficient capacity. MND supports this move. Madam, car-sharing is not for everyone. Its presence in Singapore is still small and will take time to grow. But I am optimistic about its prospects. Young Singaporeans that I have spoken to welcome the option of car-sharing over car-ownership. Some identify with the more flexible lifestyle that comes with it. Others like the idea of freeing up their financial resources to take up meaningful pursuits, such as travel, sports and culture. And time savings, too, as they will not need to worry about washing or servicing their cars every now and then. Besides car-sharing, we also need accessible and available taxi services. Most passengers in Singapore are also satisfied with service levels. In a survey commissioned by LTA last year, respondents were asked to recall the most recent taxi trip that they took, and rate that trip in terms of eight attributes: safety, driver's route knowledge, waiting time, ride comfort, taxi booking, customer service, taxi service information, and taxi stand accessibility. A vast majority, over 90%, found their trip to be satisfactory. Our main insight from this survey, however, is that expectations are exceptionally high. With your permission, Madam, may I share some slides? 2.45 pm”
“Technology has been a driving force behind this growth, making it easier to locate, reserve, unlock, pay for and return the car. Technology has also reduced costs for service providers – they do not need a shop-front and the customers self-serve. But it goes beyond technology. The bigger driving force is the growing culture of a shared economy, which is changing attitudes towards ownership of cars, computing capacity, storage and so on. Basically, anything that has a high upfront cost but need not be used all the time. The largest car-sharing company, Zipcar, has 10,000 cars supporting 810,000 members while, in Singapore, our existing car clubs have around 300 cars and 9,000 members. Most members do not own a car and continue to rely on public transport. But they like the occasional use of a car for non-commuting trips, such as family outings on weekends, or for bulk shopping and running other errands. There are no conclusive studies yet, but some estimates are that every car added to a well-organised car-sharing scheme takes the place of 15 privately-owned vehicles. This number, of course, depends on how heavily used the shared cars are. If applied to Singapore, however, a shift of just 4% of the existing car population into car-sharing schemes could expand car access to potentially three in four households, or 30% more than today and this is without the need to add too much to road and parking spaces. Page: 73 The emphasis on car access over car ownership makes sense for Singapore. We will, therefore, give more support to car-sharing schemes, so that more households can have this as part of their mobility options. We will start by making available more parking lots in HDB estates for shared cars. Today, there are about 1,800 HDB car parks.”
“Mdm Chair, Members have filed cuts relating to taxis, COE, parking, ERP and green initiatives. Before I address their comments, let me restate the considerations that guide our policies on these issues. The model for transport mobility in any city has an impact on its environment. A car-centric model means not just poorer air quality, but also denser housing, fewer parks and community spaces, and more noise. Cars take up more land space per person than any other form of transport. A decade ago, 38% of households in Singapore owned a car. Today, 45% do. But this number cannot keep growing. If six in 10 households in Singapore owned a car, that is just 15 percentage-points more than today, we would have to find parking space for another 150,000 cars. This could mean over 500 more multi-storey car parks in HDB estates, or half a dozen in each of our Members' Page: 72 wards. And that is just residential parking! Clearly, there is a limit to how many more cars we can have. This does not mean that high quality mobility is out of reach for Singaporeans. Our public transport system is good and continues to be improved. While public transport remains the top priority for the MOT and LTA, more personalised transport options and shared services, such as taxis, car-sharing and cycling, are also important and will help to give Singaporeans more choices in meeting their mobility needs. In fact, a shift from conventional car ownership to shared transport is already happening in many cities. From San Francisco to Paris to Tokyo, car-sharing is taking off in a big way. Unlike conventional car-rental schemes, modern car-sharing schemes offer many more convenient pick-up and drop-off points, as well as charging by the distance and hours used instead of by the day.”
“Many other factors need to come into play in order for the economy, in order for the businesses within an economy, to have a very enterprising spirit as well as to be willing to take risks and to venture. And our approach is to try and be as supportive as possible. That is the assurance that I will give to Mr Yee.”
“Mdm Chair, as Mr Yee was asking his question, I was also thinking about earlier comments that Er Dr Lee Bee Wah had raised during her contributions to the Budget debate. As it turns out, Er Dr Lee had been given feedback by a number of businesses who had difficulties claiming for PIC cash pay-outs. It is a relevant question; it is a meaningful question to ask and it gave Page: 20 us impetus to check. What our checks do reveal is that there are such companies. Part of the reason why they did not get their cash pay-outs as quickly as most others was due mainly to incomplete documentation which can be easily rectified. I would attribute it, in part, to a lack of familiarity by the companies involved and also on the part of our officers responding quickly so that they can make the adjustments soon. I suspect that in the case of R&D claims, we are also going through this learning process. I do not discount at all the important view that Mr Yee has shared, which is that startups operating in Singapore have found it to be not so easy for them to make their R&D claims. Our commitment is to understand it more deeply and to find ways to be helpful. So, what I can assure Mr Yee is that we will take his feedback, as well as those of the businesses that are operating – not only at Block 71 but elsewhere – very seriously, and whatever it is possible for us to do to help them, we will certainly do so. I would also hasten to add that tax incentives are just one of the many ways in which we can encourage R&D and innovation. Putting an over-emphasis on the incentives will not serve us well.”
“Mr Inderjit asked if giving higher CPF returns will be better than sharing benefits through Government transfers. The CPF system, with its risk-free returns, together with our fiscal transfers, is a fair and equitable approach for our citizens in the long run. Unlike most pay-as-you-go pension systems, our CPF system is designed to be sustainable. There are no inter-generational transfers. Instead, CPF contributions are personal savings and members withdraw their own savings. However, the Government systematically tops up the CPF savings of the lower income. We do this through Workfare, housing grants and other schemes. These top-ups are all borne by the Budget as explicit fiscal transfers. So, the main responsibility for progressivity is placed on the fiscal system. Mdm Chair, we have and will continue to adapt our system of CPF and social transfers that are borne by the Budget to suit our changing circumstances and needs. Mdm Chair, I thank all Members once again for their cuts and thoughtful comments for MOF.”
“GIC has, in fact, delivered creditable results over the long term. However, over the short term, returns can fluctuate widely, depending on global market cycles and shots. This is, indeed, what happened during the global financial crisis when the global markets fell sharply. GIC's returns during this recent period were, hence, much lower than what the Government paid the CPF and, in turn, what the CPF paid its members. GIC's returns over five, 10 and 20 years are presented and explained in its annual report. Temasek also publishes, each year, extensive information on its performance. The basic point, Mdm Chair, if I could summarise, is that unlike many pension funds, our CPF system does not expose members to market risks. It provides a fair return for the majority of Singaporeans who would not want to be exposed to high levels of investment risks. Those who are prepared to accept higher risks in the hope of potentially higher returns can already invest through the CPF Investment Scheme although, in doing so, many have found their investments not performing better than the returns offered on the Special Account. Madam, we have achieved good returns from the GIC over the long term but, over the short term, its exposure to local markets can mean that its returns fall short of what the Government pays the CPF. The Government takes the risks, not CPF members. As I have explained earlier, investment returns that we Page: 19 expect to make by taking this long-term view and, bearing the risks of investments, are not hoarded away in the reserves. Fifty percent of the returns from our reserves flow back to our annual Budget. The long-term returns, therefore, help to fund spending, which benefits our citizens.”
“Further, we pay an extra interest of 1% for the first $60,000 of CPF balances. A second point to bear in mind is that the returns on any financial instrument have to be viewed in the context of the performance of their domestic currencies over time. Interest rates are typically higher in countries whose currencies have tended to depreciate over time because higher interest rates compensate for weaker currencies. Page: 18 A third factor is that many pension funds abroad, especially in emerging markets, are predominantly invested in their domestic capital market and take on the risk of the equities and bonds that they are invested in. For such pension funds, the returns that can be expected by members will depend mainly on the performance of the domestic market. Unlike many other pension funds, the CPF system does not expose members to market risks. The CPF monies are invested in risk-free Singapore Government securities. Their value is assured as they are guaranteed by one of the few remaining AAA credit rated governments in the world. Regardless of when CPF members retire or the state of the financial market when they retire, their CPF monies are safe. In many pension funds abroad, there is a promise of higher returns. But depending on when you retire and the state of the financial markets at that time, your pension withdrawals can vary quite significantly. In our system, with the CPF monies being invested in Government securities, it is the Government that bears investment risks. And what does this mean? The Government's assets that back its liabilities to the CPF include those managed professionally by GIC in particular. GIC invests in a widely diversified global portfolio with the aim of obtaining good long-term returns.”
“The Net Investment Returns (NIR) framework allows us to tap on the investment returns of our reserves for budgetary spending in a sustainable way. Under the framework, the Government can only spend up to 50% of the long-term expected real returns from the net assets managed by GIC and MAS. Hence, what this also means is that 50% of the expected real returns are retained in our reserves, ensuring that it is not de-cumulated over time. Our Government spending needs will increase over time but that should not drive the investment strategies of GIC and Temasek. They must continue to invest with the aim of achieving good risk-adjusted returns over the long term. So far, they have achieved this. If the Government is in need of more revenues besides that attainable within the NIR framework, the solution is not for our investment entities to take more risk in the hope of higher returns. The solution has to rest on our budgetary measures, not the investment strategies of GIC and Temasek. Mr Inderjit also asked if the interest rate of 2.5% for the CPF Ordinary Account is fair and how it compares with other systems. Let me first highlight a few points that have to be borne in mind when comparing CPF returns with those in other systems. First, for the purposes of long-term savings, it is not appropriate to look at the Ordinary Account, or OA, rate alone, as most CPF members use the OA account mainly for home purchases. If we look at the Special Account, the SA, and the Retirement Account, the RA, that are invested for the long term, the interest rates are higher. Members can also choose to transfer monies from the OA to the SA. The SA, which is for long-term savings, pays an interest rate of 4% currently.”
“The Life Insurance Relief is claimed by fewer than 10% of individual taxpayers, so Members may not be familiar with it. It has been around since colonial times and catered to people who bought life insurance as a form of retirement savings. In 1955, we introduced the CPF, and that provided citizens with a dependable form of retirement savings. As part of the Government's support, taxpayers enjoy tax relief for their mandatory employee CPF contributions. However, the Life Insurance Relief has been retained as a concession to those who are not required to contribute to CPF, or who have low CPF contributions of less than $5,000 per year. The cap of $5,000 for life insurance premium relief is not low. Based on current information, more than 60% of the claimants were not affected by the cap. In fact, there are three-quarter million, or 40% of CPF contributors, with less than $5,000 in mandatory employee contributions. These will, thus, enjoy tax reliefs of $5,000 or less. 12.00 pm We have no immediate plans to increase the cap for the Life Insurance Relief cap. To boost retirement adequacy, our focus is on strengthening the CPF system. Tax relief is available for voluntary contributions by self-employed individuals, as well as for the topping up of Retirement Account or Special Account under the CPF Minimum Sum topping-up scheme. Page: 17 Madam, let me now turn to some very important questions that Mr Inderjit Singh has posed regarding our reserves and also CPF. First, Mr Inderjit was concerned that we may be spending too much from our investment returns and asked if the returns would be sufficient to prevent a decline of our reserves.”
“In addition, IRAS has established a Technical Advisory Panel, comprising academics and industry experts in the fields of Science and Technology, which it can tap on for advice in the evaluation of R&D applications. We agree with Ms Tan that rules should not be set up to deter risk-taking of any kind. We are working with tax agents and relevant economic agencies to review the R&D note, to provide more helpful guidance to businesses. This new note will be ready by June. Mr Yee Jenn Jong called for a review of two schemes, the Mergers and Acquisition Allowance (M&A) and Life Insurance Relief. The M&A scheme was introduced in Budget 2010 and enhanced in Budget 2012 to help defray the cost incurred by companies undertaking M&As. Sixty-seven companies have benefited from the scheme thus far, of which 50 – which is about 75% – are Page: 16 SMEs. More than three quarters of the tax benefits in Year of Assessment 2013 went to SMEs. The M&A scheme's main purpose is to promote restructuring through consolidation amongst SMEs. Therefore, the requirement is that the acquiring companies must take a controlling stake in the target companies, which can include acquisitions taken in smaller steps over a 12-month period – restructuring does not have to be just a one step to achieve the controlling stake but it can be smaller steps over a 12-month period. It is not catered to companies acquiring parts of a business operation, such as plant and machinery or intellectual property rights. Such asset acquisitions already qualify for other tax deductions or allowances, for instance, under the PIC. The M&A scheme is due to expire in March 2015. We will take on board the feedback and useful perspectives provided by Mr Yee and others when conducting the review.”
“We will launch the Procurement Specialist Track by September this year. This will send a clear signal to more than 2,000 procurement officers across the Public Service of our commitment towards their capability development. With the launch, there will be more structured development opportunities and career pathways. The Procurement Competency and Training Framework will also be enhanced. Currently, all procurement officers undergo mandatory basic training on Government procurement principles and rules. We will introduce mandatory continuous training to ensure that skills are deepened as the procurement officers progress in their careers. Besides developing the capabilities of individual procurement officers, the Government can build up expertise in specific domains and share it systematically across agencies so that we can all be smarter buyers. For instance, IDA will deepen its expertise in developing complex IT systems, agile digital services and data science. This will help other agencies tapping on IDA's expertise to procure the right technologies that will improve service delivery and policy implementation. Madam, let me now turn to tax incentives and reliefs. Ms Tan Su Shan and Mr Yee Jenn Jong raised concerns that the bar for qualifying R&D activities was set too high. Madam, our R&D definition is similar to that of other jurisdictions, such as the UK and Australia. To facilitate businesses in their R&D claims, we have issued a note on the criteria, as well as the qualifying R&D activities, taking into consideration the practices in other jurisdictions.”
“We agree with Ms Tan that there is, indeed, room for more agencies to mine data more intensively and there is also a rich diversity of experiences amongst our citizens that we should draw on to improve delivery of public services. Several of our agencies have, in fact, started crowd-sourcing competitions to catalyse ideas from the public. One such platform is the Apps4SG Competition, co-organised by MOF, IDA and Singapore Land Authority. Last year, we received close to 90 submissions of new apps or online services to improve the way we live and work in Singapore. One of the finalists was a pair of siblings, Hairul and Shireen who proposed an app called FundWagon. Leveraging on publicly available Government data, the app promotes crowd-sourcing of donations, by matching interested donors to specific projects of non-profit organisations. Another example is the HDB, which has been organising competitions since 2011 to crowd-source "cool ideas for better HDB living". To proactively reach out to partner more citizens, MOF will launch a prototype of a whole-of-Government crowd-sourcing portal called e-Citizens Ideas. This will be done by April. e-Citizens Ideas will bring all such crowd-sourcing competitions in the Government together to make it easier for citizens to participate. The second set of initiatives to strengthen Government effectiveness focuses on procurement. I agree with Ms Tan that tightening procurement practices to the extreme can be counter-productive. A balanced approach would require equal emphasis on robust rules, supervision and top level oversight, as Page: 15 well as investing in the capabilities of the procurement officers. Last year, I spoke about plans to professionalise the procurement function.”
“Now, this does not mean a loosening of governance and accountability, and existing safeguards will still be retained, such as requiring all companies to keep proper accounting records. Second, tax filing has been simplified for micro companies with revenues of one million dollars or less. They can also file their returns electronically, thus reducing paperwork. These companies do not need to submit their financial statements and tax computations unless required by IRAS for audit purposes. Madam, let me now address Ms Jessica Tan's question about strengthening Government effectiveness. It is an important question because an effective and high-performing Government is needed to prioritise and utilise resources optimally. As a central Ministry, MOF plays a key role in bringing this Page: 14 about. I will share two sets of initiatives. The first is crowd-sourcing. The World Economic Forum conducts an annual ranking of ICT usage and readiness amongst governments. Singapore has consistently been ranked amongst the top three, out of 140 economies. But we recognise that we can do more. The Government is pushing for a more pervasive use of data analytics. In fact, some agencies are already doing so. For instance, LTA uses data analytics to better manage crowding on public buses. It is through the mining of fare card data that has allowed the LTA to pinpoint which segments of a bus service are most crowded, down to 30-minute intervals. This has helped the LTA to plan for the introduction of the Peak Period Short Service which has eased over-crowding on certain services when the crowding situation is the most severe.”
“To require an independent expert body to assess the claims would complicate and lengthen the process. Besides the PIC, there are many other schemes which support SMEs. However, a common feedback is that SMEs have difficulty figuring out which ones to tap on for their particular needs. The Government processes more than 127,000 grant applications by businesses annually. There is scope to streamline grant criteria and to make the application process friendlier. We can also auto-populate common data fields using previously submitted data, for example. MOF and MTI are working with our agencies to improve the accessibility of these schemes. This is a complex exercise as it requires a fair amount of streamlining and standardisation across several agencies, but it is a worthy exercise as it will improve the productivity of businesses and will enable the Government to do better to meet the needs of SMEs. Mr Liang Eng Hwa asked if we can further reduce the corporate regulatory and compliance burden on SMEs. Our corporate regulatory environment is considered pro-business with rules that are effective and not excessive. Since 2007, Singapore has been ranked first on the Ease of Doing Business Indicator which the World Bank's Doing Business Report, when it is published, indicates. And we can do more for our SMEs. First, when the Companies Act is amended later this year, more companies will be eligible for audit exemption. Currently, an estimated 200,000 companies enjoy audit exemption. With the change, another 25,000 companies – almost all SMEs – will qualify for audit exemption as well. And this will mean savings amounting to several thousand dollars each from the audit fees that they would otherwise have had to pay.”
“Businesses which need help can attend PIC seminars or sign up for PIC clinics which offer free one-to-one consultation sessions with officers from IRAS and through the SMEs centres which Minister of State Teo Ser Luck has talked about yesterday. He also provided all the telephone numbers and contact details. The PIC covers a very broad range of activities. It is unlike SPRING's Innovation and Capability Voucher Scheme which is designed specifically to help micro and small SMEs to take their first step in capability upgrading with the support of external consultants. To keep things simple for such SMEs, there are pre-selected modules and pre-qualified consultants for SPRING's ICV Scheme, but not the PIC, given its much wider support for businesses and activities. By having a list of accredited PIC consultants, as suggested by Ms Tan Su Shan, or even accredited PIC vendors, this will make the PIC more restrictive than necessary. So, we will take a practical approach. Where it makes sense, we can have a pre-qualified list of consultants or vendors, but where it would be restrictive if we had introduced such a pre-qualified list, we would leave it open to the businesses. Ms Tan asked if the eligible list of equipment was adequate. In fact, it covers more than 90% of PIC equipment claims. The list is regularly updated based on feedback from businesses and trade associations. In the past two years, we have included new sector-specified automation equipment for sectors, such as F&B, construction and cleaning. Businesses with equipment not on the prescribed list fill in a one-page form. IRAS has approved a vast majority of Page: 13 these applications and 80% of them within three weeks.”
“SMEs have had good access to Government procurement. However, there is scope to help SMEs, in particular, smaller SMEs, take on more or larger projects. For instance, in the IT and telecommunications sector, SMEs won 60% of the tenders award, which collectively accounted for 40% of total contract value. We intend to do more to focus our help to nurture Singapore tech start-ups in the IT sector and, at the same time, achieve better outcomes for the Government. MCI will be addressing this in their Committee of Supply response. 11.45 am Madam, in the Budget roundup speech, Deputy Prime Minister Tharman had explained that the PIC is a broad-based scheme that we have deliberately Page: 12 kept simple to support as many businesses as possible in the productivity drive. To help SMEs, we will make PIC claims easier and process them more quickly. First, they will get help to avoid common mistakes when applying for the PIC cash pay-outs. And this will be done through a web-based application form that provides built-in validation checks. In other words, even before they submit their claims, the application process will indicate to them how they can avoid common mistakes. Second, from early next year, IRAS will be able to process most claims within two weeks, compared to three months today. From early next year, IRAS will be able to do it in two weeks for most of the claims. This is because they are improving their processes and, by then, businesses will get their PIC cash pay-outs with less paperwork and in a shorter time. Many SMEs apply for PIC themselves, without using consultants because it is a fairly straightforward process.”
“Mdm Chair, I thank the Members for their thoughtful comments and questions for the Ministry of Finance. My colleagues from MTI spoke yesterday about measures to support industrial and SME development, and to raise incomes through Page: 11 quality growth. In fact, a whole-of-Government approach is needed to meet both economic objectives and social objectives. MOF's policies and initiatives thus complement the efforts of MTI and other Ministries to create an enabling environment for businesses to thrive and to meet the needs of our citizens. I will organise my response to Members' cuts around two themes: first, supporting economic transformation and SME growth; and, second, strengthening Government effectiveness. I will then deal with tax incentives, reliefs and our reserves. During the Budget debate, we have heard how SMEs can continue to participate meaningfully in our economy. In fact, SMEs have also had good access to Government procurement, which is a question that Ms Jessica Tan had asked. In 2013 alone, about 80% of all Government tenders – and these refer to contracts valued above $70,000 – were awarded to SMEs. In terms of contract value, this was about 50% of contracts awarded by the Government. It is higher than the target of 25% share of Government spending that, as Ms Tan had shared, the UK has set for its own SMEs. More significantly, SMEs were successful in tendering not just for smaller projects, but fairly sizeable ones. For example, of the 1,100 or so contracts valued between $1 million to $50 million that were called last year, SMEs won about 80% or 872 of them. In the construction sector, when we look at projects with contract values between $50 million and $100 million, SMEs clinched 60%, or 19 out of 31 projects, in 2013.”
“(proc text)] [(proc text) Bill considered in Committee; reported without amendment; read a Third time and passed. (proc text)]”
“To ensure that CAAS acts in a reasonable manner, certain safeguards such as the right to appeal against the detention are provided. Page: 111 Sections 8, 8A and 8B transfer from the Air Navigation Order to the ANA several provisions on unruly conduct that poses a serious threat to aviation safety. The provisions are adapted from the ICAO model legislation and set out more clearly the elements that would make such conduct an offence. Sir, although some functions are being transferred from MOT to CAAS, three areas remain under the Ministry's purview. These are, firstly, air accident and incident investigation; secondly, regulation of aviation security; and thirdly, provision of licences for air services. There are good reasons for this, for example, to ensure the independence of accident investigations or for better coordination of aviation security matters with the various security and enforcement agencies. The Bill, therefore, will also make a related amendment to the Civil Aviation Authority of Singapore Act 2009 to clarify the scope of the responsibilities of both MOT and CAAS. Sir, Singapore has seen rapid developments in our aviation hub in recent years and the Government is committed to its continued development. The amendments to the ANA will give CAAS the powers and tools to carry out its responsibilities as aviation safety regulator more effectively, to ensure the proper functioning of our regulatory regime. Sir, I beg to move. [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House. (proc text)] [(proc text) The House immediately resolved itself into a Committee on the Bill. – [Mrs Josephine Teo].”
“There are several benefits of the shift to a modular approach. Industry players will experience a higher level of transparency and accessibility. New parts can be created more easily as aviation activities emerge. As far as possible, the modules will also be harmonised with the legislation of other major regulators to enhance the ease of doing business across borders. When the modular regulations are completely promulgated under section 3A, the Air Navigation Order will be revoked and Parliament's approval will be sought to repeal section 3. Until then, the amended section 3 clarifies that the current Air Navigation Order (ANO) remains in force. The new sections 4C, 4D and 4E give CAAS a wider range of options to enforce compliance with the ANA and to deal with aviation safety breaches. Today, persons or companies in breach either face prosecution or are liable to have their certificates, licences or permits suspended or revoked. These new sections will enable CAAS to calibrate its response based on the severity of the breach by imposing new licensing conditions or issuing provisional orders to ensure compliance. CAAS can also impose financial penalties under its regulations. Sections 4J to 4N transfer the current powers for safety inspections and audits from the Air Navigation Order to the ANA. The enforcement powers for CAAS have also been strengthened. Currently, CAAS can only detain a whole aircraft and in circumstances where the aircraft is prevented from flying. With the change, CAAS will also be able to detain an aeronautical product, such as the engine and other equipment on the aircraft, and as long as it has reasonable grounds to believe that the operation of the aircraft or aeronautical product may endanger persons or property.”
“Mr Deputy Speaker, I beg to move, "That the Bill be now read a Second time." Singapore is a Contracting State to the Convention on International Civil Aviation, or more commonly known as the Chicago Convention. It is our obligation and commitment to adopt the standards and requirements set by the International Civil Aviation Organization (ICAO) as they are being developed and updated to improve aviation safety. Where necessary, we will also update our regulatory regime. The Air Navigation Act (ANA) was enacted in 1966 and the last major amendments were in 2007. Since then, there have been new developments in the aviation industry such as the emergence of new aircraft types and aviation technologies. Consequently, new rules and standards have been promulgated by International Civil Aviation Organization. This Bill amends the ANA to bring it up to date with recent developments and improves the future-readiness of aviation safety regulation in Singapore. I will now highlight the key amendments in the Bill. The amended section 3 and the new section 3A align the ANA with the Civil Aviation Authority of Singapore Act 2009, in which CAAS is assigned the Page: 110 statutory role of national regulator of aviation safety, by empowering the CAAS to make subsidiary legislation for aviation safety and related matters. In addition, CAAS is in the process of re-organising the aviation safety regulations in the voluminous Air Navigation Order (ANO) made under the previous section 3 of the ANA. The regulations will, in future, be organised as modular parts, each of which is specific to a particular industry sector or aviation activity. For example, the modules for airlines will be separate from those relating to aircraft maintenance organisations.”
“I am confident that with the continued strong support of our tripartite partners, we will be able to effectively implement our international obligations under the MLC. Sir, I beg to move.”
“In today's context, where some parts of the sea lanes are under constant threat, in fact, I think shipping companies and seafarers take this type of training very seriously and they will go through their drills. Mr Patrick Tay pointed to the need to continue growing a core of local seafarers to support our maritime industry, I could not agree with him more. Members have recognised that by strengthening the legal framework for seafarer employment, this Bill will complement the efforts that MPA and its tripartite partners have put in to attract more Singaporeans to take up seafaring careers. We heard from Mr Tay the efforts of the e2i in partnership with MPA as well as with the Singapore Shipping Association, the training courses that have been launched and how individuals have been impacted by these courses and embarked on meaningful and well-paying careers. Besides safeguarding the well-being of seafarers, MPA will also continue working with our tripartite partners to enhance the training and career progression for seafarers, especially to raise the awareness of Singaporeans of the attractive career opportunities in this area. Sir, in conclusion, I would like to recognise the strong tripartite partnership which includes the shipping community and the unions who have worked with the MPA in preparation for compliance with the new regulatory regime under the MLC and, as with any new set of maritime regulations, MPA will actively gather feedback and regularly review our implementation of the MLC. The passing of this Bill is an important milestone for Maritime Singapore and demonstrates our steadfast commitment to enhancing the well-being of Page: 98 seafarers.”
“For example, MPA has increased its pool of marine surveyors and conducted extensive training to equip them with the knowledge and skills to enforce the MLC. MPA has also invested in information technology to improve the efficiency and effectiveness of its ship inspections. Mr Dhinakaran shared his concerns on the need to protect the interests of the seafarers as well as their employers. These key concerns have been addressed in the Bill. For example, the provision of fraudulent documents for the seafarer employment agreement is an offence under the Bill. We have taken a practical approach balancing the needs of different parties. For example, Page: 97 instead of requiring a doctor to be onboard every ship, ships are required to carry seafarers who are trained in medical first-aid to care for unwell seafarers. Mr Dhinakaran had also asked what were the measures in place to ensure safety training and that seafarers were equipped in times of emergency. Now, under the International Convention on Standards of Training, Certification and Watch Keeping, seafarers are already required to receive familiarisation training before being assigned to shipboard duties. This familiarisation training includes emergency evacuation procedures. Depending on the scope of their duties, seafarers are also required to be trained in occupational safety. Under the International Safety Management Code for Ships, shipping companies have to establish procedures for identifying any training in support of their safety management systems. Seafarers would have to follow such procedures for safety training. It is not just training the seafarers but also putting the onus on the shipping companies to ensure that there are procedures in place and they need to carry out the drills.”
“Mr Deputy Speaker, let me first thank the Members who have spoken in support of the Bill. They include our Labour Members who have voiced their support. They also include employers like Mr Dhinakaran who gave unequivocal support to this Bill. Mr Teo Siong Seng is not able to join us for the debate but he has, very interestingly, conveyed his support through a unionist. I think this can happen only in Singapore and not in many other places in the world. As many Members have highlighted, the Maritime Labour Convention (MLC) is a major international instrument that will substantially improve the well-being of seafarers around the world. I think Ms Mary Liew shared with us that number is 1.2 million. We, therefore want, as Mr Christopher de Souza has said, to align our seafarer employment laws with the international standards enshrined in the MLC. It is the right thing to do. Ms Mary Liew and Mr Patrick Tay have asked about our implementation of the MLC. Let me assure the House that the Government has and will continue to work closely with the maritime industry and seafarer unions to ensure the full and fair implementation of the MLC. We agree with Ms Liew that it is important to ensure a level playing field for the shipping community in Singapore. We will, indeed, be adopting the approach of "no more favourable treatment" when enforcing the MLC on applicable Singapore-registered and foreign ships ‘” in other words, Singapore-registered ships and foreign ships calling at our port will be treated exactly the same way. This is a fundamental principle that underpins the international shipping industry and is, therefore, a key tenet of the MLC. I would further like to assure Ms Liew that MPA has steadily built up its capabilities to administer the MLC.”
“Parts VIII and X of the Bill create an enforcement regime comprising the certification and inspection of Singapore-registered ships, and provide powers for MPA officers to inspect foreign ships that call at our port. MPA will thus be empowered to enforce MLC requirements across the 140,000 vessel calls that we typically see at our port each year. Such an enforcement regime is required for all MLC signatory states, and enables Singapore to play our rightful role in ensuring that the MLC is observed consistently and equitably. Page: 86 Part XI of the Bill includes related amendments to the Merchant Shipping Act to repeal or dis-apply sections that are superseded by this Bill. It also includes amendments to the Employment Act and Work Injury Compensation Act to streamline the interaction between the Bill and existing employment legislation. In conclusion, the MLC is a major maritime convention that safeguards the welfare of seafarers, who form the backbone of the maritime industry. As a responsible maritime nation, Singapore demonstrated our commitment to enhancing the well-being of seafarers through our ratification of the MLC. This Bill will fulfil our international obligations under the MLC and establish a new regulatory regime for the working and living conditions of seafarers on board Singapore-registered ships, and foreign ships calling on Singapore. Sir, I beg to move. [(proc text) Question proposed. (proc text)] 5.20 pm”
“Parts III and IV of the Bill set out minimum requirements and conditions for seafarers' employment. These include a minimum age for employment, a requirement for pre-employment certification of medical fitness, and minimum standards to be met by seafarer recruitment and placement services operating in Singapore. Employment conditions, such as minimum hours of rest, payment of wages, annual leave and provision for the repatriation of seafarers, are also stipulated. Parts V, VI and VII of the Bill set out requirements for working conditions on board ships. These include the proper provision of food and water, medical care and other measures to ensure the health and safety of seafarers. The provisions here also set out the liabilities of shipowners in the event of sickness and injury sustained by seafarers in the service of the ship. The Bill will also allow MPA to issue or approve relevant codes of practice that will serve as practical guidance on measures that should be taken to safeguard the safety and health of seafarers on board ships. The Bill will further empower MPA to investigate occupational accidents, injuries or diseases arising from service on board a ship. Part IX of the Bill requires shipowners to implement procedures to allow seafarers to lodge complaints regarding breaches of employment conditions. Such procedures must include MPA as an avenue for lodging complaints. This provides a channel for seafarers to give feedback on working and living conditions, and thus help ensure compliance with the MLC. Finally, I will describe briefly the other provisions in the Bill, which are more administrative and operational in nature.”
“Work on Singapore's implementation of the MLC was guided by a Tripartite Working Group chaired by the Maritime and Port Authority of Singapore, and comprising representatives from MOM, the Singapore Maritime Officers' Union, the Singapore Organisation of Seamen, the Singapore Shipping Association and the Singapore Maritime Employers' Federation. The Tripartite Working Group met extensively, providing valuable feedback that has shaped the drafting of this Bill. Let me now turn to the key provisions of the Merchant Shipping (Maritime Labour Convention) Bill. Reflecting the more comprehensive and rigorous standards introduced by the MLC, this Bill will repeal some of our existing legislation dealing with various aspects of seafarer employment, and consolidate the revised employment standards under a single piece of legislation. This will provide greater clarity for both employers and seafarers on the applicable standards under the MLC, and make clear how Singapore is meeting our international obligations. The Maritime and Port Authority of Singapore (MPA) will administer the regulatory requirements under the Bill. Let me now expand on the key provisions of the Bill. Parts I and II of the Bill set out definitions and cover the application of the Bill. The Bill will apply to all Singapore-registered ships that are ordinarily engaged in commercial activities and some 54,000 seafarers that serve on these ships, as well as to all foreign ships when they call in Singapore. In line with the scope of the MLC, this Bill will not apply to ships that are engaged in fishing Page: 85 activities, of traditional build, such as dhows or junks, or navigate exclusively within our Port Limits. It will also not apply to warships and naval auxiliary vessels.”
“Mr Deputy Speaker, I beg to move, "That the Bill be now read a Second time." Sir, the Merchant Shipping (Maritime Labour Convention) Bill gives effect to the Maritime Labour Convention (MLC), which was adopted by the International Labour Organization (ILO) in 2006 and entered into force on 20 August 2013 for Singapore and 29 other initial ratifying States. Singapore is a leading International Maritime Centre and is home to the world's busiest port by vessel arrival tonnage. The Singapore Registry of Ships ranks as one of the top 10 registries in the world, accounting for 5.6% of the world's merchant fleet by tonnage, and the maritime sector contributes 7% to our GDP, employing more than 170,000 people. We recognise that seafarers have an integral role to play in driving this key engine of the Singapore economy. Seafaring is a challenging profession due to the nature of the job and the harsh conditions at sea. Therefore, the Convention Page: 84 sets out a comprehensive framework of rights and protection at work for seafarers globally. It specifies minimum requirements for seafarer working conditions and also establishes a compliance and enforcement mechanism. Singapore is committed to ensure safe shipping with good employment conditions for all seafarers. Thus, we were the first Asian country to ratify the MLC. Since then, MLC has become so significant for the maritime community that it is frequently referred to as the fourth pillar of the international regulatory regime for shipping alongside existing Conventions for maritime safety, marine environmental protection and vessel manning. I would like to thank our tripartite partners for their strong support of the MLC.”
“The additional service now covered by GPA rules is "executive search services". What this means is that when Singapore Government agencies procure executive search services, they must do so in a manner that complies with the GPA obligations. In terms of procurement rules, the revised GPA mainly spells out more clearly what is required of signatories and these adjustments will be reflected in the subsidiary legislations. For example, the revised GPA requires all evaluation criteria, including the relative importance of the criteria to be stated Page: 66 upfront in the tender documents. This increases the transparency of the evaluation process and would benefit suppliers, including those from Singapore. As our existing procurement rules are already substantially in compliance with the revised GPA obligations, there is no significant change to our existing rules. To give legal effect to the obligations under the revised GPA, updates to our current legislations are necessary. The changes proposed to the current Government Procurement Act in this Amendment Bill are technical changes. The amendments are to insert the reference to the revised GPA and subsequently update the definitions of the "relevant states" and "relevant suppliers" covered under the Act to reflect the signatories to the revised Agreement. Mdm Speaker, I beg to move. [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House. (proc text)] [(proc text) The House immediately resolved itself into a Committee on the Bill. – (Mrs Josephine Teo). (proc text)] [(proc text) Bill considered in Committee. (proc text)] [Mdm Speaker in the Chair]”
“Mdm Speaker, I beg to move, "That the Bill be now read a Second time." Page: 65 In 1997, Singapore acceded to the World Trade Organisation's Agreement on Government Procurement (GPA). Parliament passed the Government Procurement Bill later in the same year. Signatory governments are required to abide by GPA principles of openness, non-discrimination and fairness for the areas of government procurement that they committed to. By signing on to the GPA, Singapore suppliers would be better able to participate and compete in government tenders called by signatories, such as the US, the European Union, Japan, Korea, Hong Kong and Chinese Taipei. The Government Procurement Act and its subsidiary legislations put into law the obligations of the Singapore Government as a signatory to the GPA. In addition, they also reflect our obligations in other Free Trade Agreements (FTAs) with GPA signatories, namely, the US, Japan, Korea, Switzerland, Iceland, Liechtenstein and Norway. The GPA has been re-negotiated among the signatories. The revised GPA terms were endorsed by the GPA Committee under the auspices of the World Trade Organisation in March 2012. Signatories, including Singapore, pledged to align their respective procurement rules with the revised GPA. Under the revised GPA, Singapore suppliers will be granted greater access to government procurement opportunities in GPA signatories. For example, some signatories, like the US, the European Union and Switzerland, have committed more central government entities under the revised Agreement. There will also be greater alignment in the procurement rules of the GPA signatories. In return for the improvements offered by other GPA signatories, Singapore committed one more service to be covered under the revised GPA.”
“Mdm Speaker, I think our question has gone far beyond the original scope and the questions that were posed by Mr Liang and Page: 31 Mr Lim. Just very briefly, Mr Ang, I think it is an issue that perhaps the National Taxis Association (NTA) would also like to look into because it concerns the terms between the taxi operator and the taxi driver. I believe that it falls also within the remit of the NTA to look into.”
“Mdm Speaker, I think we want to be very careful about doing that. The rental agreement is between the taxi driver and the taxi operator. Right now, what Mr Ang is asking is whether the Government should get involved in this agreement between the taxi operator and the taxi driver. I am not so sure that that is the outcome that we really want to see, because at the end of the day, the taxi drivers will have to compare among which of the operators offers a rental scheme that best meets his requirements and he has to decide which one of it is a fair one from his point of view. In the context today, there is more than one taxi operator. So, there is competition in the market and it is up to the market to come forward with an agreement that taxi drivers find acceptable.”
“Mdm Speaker, as I have said earlier, we are looking at whether it should be simplified further. To his question of whether the same taxi company, same taxi operator, ought to charge different fares, the answer is that it is not a recent phenomenon. It has been going on for some time. It is just that we have seen more of it lately, and we are going to address this issue of how we can simplify it. As to whether we will allow the taxi companies to do so in future, that is a question that we are trying to come to a conclusion on. Page: 30”
“A very long string of questions. I apologise in advance if I did not get every one of them. I think the key point to note is that demand and supply are going to vary at different times of the day. As I explained earlier, taxi service is not different from any other types of service and it has the same issue of uneven demand. So, there will be occasions and at certain locations where the demand is very high, and we do need to find a way to get the taxis to ply those areas at those times, and pricing is one way in which the operators have achieved it. Rather than try and talk about the question of whether it is fair or unfair, we have acknowledged that it is complex, and it is confusing. We are interested to try and find a better way to let the commuters understand what the fare structure is. Simplifying it is what we would like to do right now. I hope that addresses his question.”