Koh Poh Koon
Singapore
“In 2025, for walk-in patients, the median and 95th percentile doctor consultation waiting times were eight minutes and 72 minutes respectively. However, the Ministry of Health (MOH) does not track waiting times by peak versus off-peak hours, but it is likely that 95th percentile waiting times happened during peak hours.”
“The offences and penalties for importing, supplying or abusing SPS products are similar to those in the MDA, to ensure similar level of deterrence. Mr Speaker, with your permission, may I ask the Clerks to distribute a handout that summarises the changes in legislative penalties for key offences.”
“So, if you are a Singaporean student, you will expect that there will be some subsidies to the fees. The third question on how can the public, who may want to seek psychological care, know who is legitimate.”
“Sir, I thank the Member for his question on audiologists. In general, a qualified audiologist in Singapore needs a higher level of certification because a diploma level may not be quite enough to perform the task. So, we will look and see whether there is a way to actually find an in-between.”
“We are starting with registration to give formal recognition to those who are practising in higher risk sub-sectors in psychology and making sure that the quality, the standards and the support is given to them to deliver the care that the clients and the patients need.”
“It takes a bit of, not just system change in the providers, in the doctors and the care teams, but also, a gradual shift in the mindset of our population as well. So, it is something that we have to continue to do. There is no magic bullet to this and it is not something we can achieve overnight. 12.15 pm”
The complete record
Every one of 1,209 lines we hold for Koh Poh Koon, in date order, each linked to its source. Free to read, in full, without an account. Page 24 of 25.
“Mr Chairman, I thank the Member for his clarification questions. First of all, on the issue of land and farming, we obviously want to encourage our farmers to be more productive. It is something that we want to encourage them to do, and the Agricultural Productivity Fund is one of those measures. We will continue to engage our farmers actively to encourage them to do so. In terms of the question earlier about how we can increase the tenure to encourage them to be more productive, we are still in the midst of consulting our farmers. The indication is that they would prefer to have a longer tenure in order to allow them to invest sufficiently. We will take their feedback into consideration in deciding how we want to award our tenures and scope the policy accordingly. As for the question about whether the current schemes and measures are sufficient to help families in the economic downturn, there are quite a number of schemes and policies that can help families, whether they are first-timers, second-timers or divorced. At the end of the day, HDB does take a flexible approach to help families who are in need, even if they do fall within these schemes, the whole idea being that we want to make sure that they do have a roof over their heads. We will monitor the situation closely and if there are cases that we are beginning to see more, especially at our Meet-the-People Sessions (MPS), that there are more families that seem to fall through the cracks. We will see how these schemes can be enhanced or if there is any new scheme that we can introduce to plug the gap.”
“To realise their full potential, besides adopting transformative technologies, there is scope for the agricultural sector to consolidate and intensify their operations. This will move the needle in production and in their manpower optimisation strategy. We have a mission to achieve that is as crucial as water and that is to strengthen our food security in an era of global food uncertainty. My Ministry and AVA will make the development of our local agricultural sector a priority for the coming years.”
“Thank you, Sir. We envision that farms of the future will make use of integrated vertical and indoor systems, automation and robotics. They will be highly intensive and productive and operate on minimal manpower. We are already beginning to see this new breed of farms in Singapore. Just last month, I visited Apollo Aquarium and Sky Greens, which represent state-of-the-art urban and vertical farming technologies. Take Apollo, for example. Apollo Aquarium houses its fish in indoor, vertical multi-tiered tanks. They use less land, yet produce more fish. In a controlled environment, the farm can be monitored and operated remotely, without the risks of uncontrollable environmental factors that can threaten the yield of the fish stock. Sky Greens is the world's first commercial vertical farm. Its three-storey-high vertical racks can produce about 2,500 stalks of vegetables. This system requires less water, less electricity and less labour, yet produces five times more leafy vegetables than traditional farms. Across the board, local production levels for our key food items, such as food fish, leafy vegetables and hen's eggs, have steadily risen over the years. In 2015, our farms produced about 5,300 tonnes of fish for food, 11,400 tonnes of leafy vegetables and 421 million eggs. Compared to five years ago, production volumes have gone up by 52% for fish, 21% for vegetables and 10% for eggs respectively. We can do much more. The Netherlands and Denmark employ technologies that are five to six times more productive than our most productive fish farms, and two times more productive than our best vegetable farms. Imagine what we can achieve if all our local farmers employ these technologies! We may become much more self-sufficient in some of our essential food items.”
“Mr Alex Yam spoke about the need to transform our local agriculture sector. Indeed, this sector holds great potential. Climate change, whether it is global warming or irregular weather patterns, is causing greater uncertainties in overseas food supply. At the same time, the world population is growing, projected to increase from 7.3 billion today to 9.7 billion by 2050. Developing countries are also seeing their young people migrate to the cities, leaving less manpower for farming. So, there is no certainty that the global food supply will keep up with the growing global demand. We need to raise our local food production to buffer against such uncertainties in the future. Singapore can carve a niche in urban solutions by becoming a living lab for food production technologies, just like what we have done for water recycling and desalination, turning a disadvantage into something we can be proud of. To facilitate that and hearing our farmers' feedback, we are reviewing our agriculture policies, including the lease tenure, to give farmers impetus to invest in transformative technologies. Through our Agriculture Productivity Fund, we will continue to provide financial support to promising farmers in adopting these technologies. We will create the right environment where our farmers can grow more with less, through the use of technology and innovation. Mr Chairman, may I have your permission to show some visuals on the LED screens, please?”
“For instance, the Animal Concerns Research and Education Society (ACRES) is one of AVA's contractors for responding to wild animal issues. AVA also works with the Society for the Prevention of Cruelty to Animals (SPCA) and the Cat Welfare Society (CWS) on the Stray Cat Sterilisation Programme (SCSP). Under the programme, AVA co-funds the cost of sterilising and micro-chipping stray cats in HDB estates. The AWGs also help to mediate cat-related feedback and manage community cat feeders to prevent nuisance to the community. AWGs play a very important intermediary role in the community. Going forward, AVA will expand the programme to cover stray cats in industrial and commercial areas, and private estates. With this expansion, we hope to sterilise 20,000 more stray cats. AVA also works closely with AWGs on public outreach regarding animal-related issues. Through the Responsible Pet Ownership Programme, AVA has held roadshows and joint adoption drives with AWGs, emphasising that a pet is for life and should not be abandoned. AVA plans to collaborate with AWGs to further such outreach efforts. Besides AWGs, AVA also works with the Immigration and Checkpoints Authority (ICA) and Singapore Customs (SC) to clamp down on illegal wildlife trade. AVA also works closely with international partners, such as wildlife authorities in ASEAN countries and the International Criminal Police Organization (INTERPOL), to deter such illegal animal trade. Through these efforts, the number of wildlife trafficking cases has decreased from 23 in 2011 to 12 in 2015. With the support of these partners, I would like to assure Mr Louis Ng that AVA will remain vigilant and continue to optimise resources to tackle animal issues and animal crimes.”
“In answer to Mr Chen Show Mao's question earlier about LBS, I think there are many options other than LBS in which the flat owner can monetise the flat, especially if the flat owner or the elderly couple has the desire to pass the flat on to their children. Monetising their flats in ways other than LBS will be an option for them to consider. The take-up of these monetising schemes is not a numbers game. There is no key performance indicator to meet, to see how many people should monetise their flats. They are options for the elderly to consider to suit their needs. In fact, many elderly today have personal savings and support from their children. They may not feel a need to monetise their flat. Nonetheless, HDB continues to publicise monetisation options through various means, through its website, local media, public talks, exhibitions and at enquiry booths at community events. Interested flat owners can approach HDB and be given one-to-one advice on how they can monetise their flats based on their individual needs. Beyond housing, MND also oversees the Agri-Food and Veterinary Authority (AVA), which has a wide scope, ranging from managing animals to ensuring Singapore's food security. AVA manages stray dogs, cats and wild monkeys to address feedback on public concerns caused by the animals. AVA's contractors are required to have the necessary expertise and comply with animal welfare guidelines in handling these animals. I also want to reassure Members that we take all animal cruelty cases seriously. AVA will investigate feedback on animal cruelty and welfare issues and take the wrongdoers to task. Mr Louis Ng has asked about collaboration between AVA and animal welfare groups (AWGs) on animal-related issues. AVA already does so.”
“Owners just need to register with HDB within seven days of finding a tenant for the room that they are letting out. Mr Chen Show Mao and Mr Alex Yam asked about the Lease Buyback Scheme (LBS). We enhanced LBS in April last year in a few ways: (a) we extended it to 4-room flats, which is the most common HDB flat type today; (b) we increased the income ceiling from $3,000 to $12,000; (c) we relaxed the CPF top-up required for households with multiple owners; and (d) we gave households a wider choice of how much lease they wish to retain. Five hundred households have taken up LBS since it was enhanced about a year ago. This is a significant increase from the average of 160 per year prior to the enhancements. We will monitor the response to LBS further before considering any extension to larger flat types. But let me emphasise that LBS is not the only option to monetise a flat. Elderly households staying in larger flats, for example, 5-room flats, actually have a few options to monetise their flat. Firstly, they can choose to rent out a room, especially if their children have moved out and they have a spare room. Secondly, they can also move to a smaller flat, if they are a couple with no children staying with them. By doing so and staying in a short-lease 2-room flexi flat, they can also benefit from the Silver Housing Bonus which is a cash bonus. Thirdly, for those who have moved in with their children to enjoy mutual support, they can also consider renting out the whole flat. These are all good ways to monetise a flat.”
“As for the 30-month debarment that Mr Faisal Manap said earlier, HDB takes a very flexible approach, and will look at this on a case by case basis to make sure that none of our residents is disadvantaged and has no roof over their heads. Er Dr Lee Bee Wah and Mr Saktiandi Supaat asked about how we help single parents with housing. We can do so in a few ways. Firstly, we help them secure a flat through a priority scheme dedicated to second-timer divorced and widowed persons with young children, if they are applying for a new 2- or 3-room flat in non-mature estates. Some Members will know this as the Assistance Scheme for Second-Timers (ASSIST). Secondly, if they face difficulties paying for the flat, HDB will assess their financial situation and provide them assistance wherever possible, for example, by allowing them to spread out their resale levy in their loan instalments. Thirdly, we can offer them temporary housing at below market rates while they await completion of their flat, under the Parenthood Provisional Housing Scheme (PPHS) or in Interim Rental Housing. Lastly, if they have no housing options and no family support, we will enable them to rent a rental flat. Let me move on to our efforts to help the elderly. Mr Muhamad Faisal Abdul Manap asked whether we can help elderly flat owners who want to rent out a room to find a tenant. We interviewed about 1,200 elderly flat owners on subletting a few years ago. Among those who did not rent out their flats or rooms, only 5% of those interviewed had genuine concerns about finding a tenant. And in actual fact, tenant-matching is already offered by estate agents and various websites. On HDB's part, we have made the procedure to rent out a room very straightforward.”
“I would like to assure Mr Muhamad Faisal Abdul Manap and Mr Alex Yam that we review and exercise flexibility on our policies to help vulnerable families and those having problems keeping up with their mortgage. For those in mortgage arrears, our primary objective is to help them retain their flats. HDB proactively engages households on how to resolve their HDB mortgage issues, especially those with loan arrears. For example, HDB may temporarily reduce or defer their mortgage instalments to help their cash flow situation. For those who need more long-term solutions, HDB may help them right-size to a more affordable flat with another HDB concessionary loan if necessary. 6.30 pm We also take a needs-based approach in assessing applications for a rental flat. If an applicant is assessed to have low income, no other affordable housing options and no family support; in other words, those who are at extremely high risk of having no roof over their heads, HDB will help them. Even if the applicant does not fulfil some of the eligibility criteria, HDB will exercise flexibility based on their individual circumstances. Together with other agencies and social workers, HDB will hold joint case conferences to find the best way to help them. As Mr Faisal Manap said earlier, many of these families have multifaceted and multifactorial, complex issues. Therefore, we require a multi-pronged and a multi-agency approach to help them get to the root of the problem. Housing is perhaps one of them; it could be just the surface and the symptom. We want to help them get on with their lives again by solving the problem at its root.”
“Mr Lee Kuan Yew said, "My primary preoccupation was to give every citizen a stake in the country and its future. I wanted a home-owning society". We want to see families in rental flats progress into homeownership. Thus, we provide substantial help, such as generous housing grants of up to $80,000 for first-timer families. Mr Gan Thiam Poh asked about the supply of 2-room flats to help our rental families to buy a flat. We currently set aside 10% of 2- and 3-room flats in our sales exercises under the Tenants' Priority Scheme (TPS). The scheme has been open to first-timer rental families. So, in 2015, we set aside 411 2-room flats under TPS. This is 8.5 times more than the 48 applications we received that year. I am happy to announce that we will extend TPS to second-timer rental families, including the Fresh Start beneficiaries that Minister Wong announced earlier. These second-timer families in rental flats have the same housing need as first-timer rental families. But as second timers, they have a lower allocation quota when it comes to balloting for new HDB flats. Therefore, extending TPS to these second timer families will increase their chances of selecting a flat and moving on to home ownership. So, from HDB's next sales exercise, second-timer rental families can also benefit from the 10% quota of flats set aside under TPS. Like their first-timer counterparts, they will be eligible if they have stayed for at least two years in a rental flat and are applying for a 2- or 3-room home ownership flat. Taken together, the Fresh Start Housing Scheme and the extension of TPS to second-timer rental families are significant measures to help our rental families achieve homeownership again and to build a more inclusive society.”
“Mr Chairman, thank you for allowing me to speak. In his speech, Minister Lawrence Wong quoted from our iconic national song "Home", which says: "There is comfort in the knowledge, that home's about its people too". I would like to expand on this with the preceding lines, "When there are troubles to go through, we'll find a way to start anew". For households who have fallen onto hard times, the Government helps them in various ways. One of these is enabling them to stay in heavily subsidised public rental flats. A few Members asked about our supply of rental flats. We have ramped up the rental supply from 42,000 in 2007 to 53,500 now, and it will go up to 60,000 in 2017. As a result, the waiting time for a rental flat has been reduced significantly from 21 months in 2008 to four months today. For those in urgent need of rental housing or any housing, HDB may give them priority allocation for a rental flat or provide them with Interim Rental Housing while they await their rental flat. The increase in rental flats is not only about the increase in quantity. We build rental flats in more locations with a better geographical spread and we integrate them within estates by locating them together with home ownership flats. These efforts help to promote interaction among residents, as Mr Chong Kee Hiong has called for, and ensure that tenants have the same access to amenities that people staying in home ownership flats enjoy. With rental flats in more locations, it is also more likely that tenants can get a flat nearer the preferred location of their choice. However, we should not increase our rental supply indefinitely. Staying in public rental flats should only be temporary for families to rebuild their lives.”
“Mr Chairman, I thank the Member for his clarifications. As mentioned in my speech earlier, there will be 2.3 million square metres of industrial space that will come on stream annually in the next two years. I think market forces would allow rentals to soften over the next couple of years. With the supply of retail and industrial space coming up, I do not think we are in any position to add to the supply.”
“Mr Chairman, I thank the Member for his question. The Government has been working closely with SBF on many initiatives and we will continue to do so. As far as productivity benchmarking is concerned, there are various benchmarks that can be utilised. The Government publishes labour productivity benchmarks, such as value-added per worker and value-added per actual hour worked. The Government also publishes sector-specific outcome indicators, such as site productivity for the construction sector. Other than the benchmark that the Member has mentioned, companies can also use the calculator on the "Way to Go" website to determine their productivity and compare it against other benchmarks. The Government's productivity assistance schemes are intended to support all companies and we will continue to utilise benchmarks that are useful for us to assess the productivity of companies.”
“We encourage more TAs to work with CASE on accreditation schemes to better safeguard consumers' interests. Thirdly, the CPFTA provides the same protection to consumers, whether their purchases are made online or from our regular brick-and-mortar retailers. On practices, such as pre-ticked boxes and arbitration clauses, the CPFTA already requires retailers to make material information clear to consumers prior to these transactions. We are working with CASE to educate consumers on the importance of reading the terms and conditions before finalising the transaction. Fourthly, MTI has engaged CASE on making information on petrol prices and discounts more accessible to consumers. CASE is working towards putting such information on their website. Mr Chairman, in conclusion, economic restructuring is a long-term effort which cannot be put on hold. SMEs must make use of every opportunity to upgrade their capabilities. The Government, too, needs to work closely with the industry on this and, hence, needs to strengthen our partnership with TACs. I am confident that we will emerge from our challenges a stronger economy, with our SMEs more competitive than before.”
“The Minister for Finance also spoke widely about the importance of partnerships in the ITP. But just as importantly, transformation must, first, come from the companies themselves. We have grants for companies, and TACs can take a proactive role in transformation and innovation. But all these will come to nought if companies do not have the hunger to transform. As Mr Thomas Chua mentioned during the Budget debate, SMEs need to have the correct mindset and must want to transform. By working with TACs, we want to foster a stronger spirit of self-reliance within our local enterprises. (In English): Mr Lim Biow Chuan has asked if more protection for consumers can be legislated. The CPFTA is regularly reviewed to ensure that it continues to provide consumers with adequate protection. We started our review last year and have engaged industry, including CASE, for their views. We are nearing the end of this review and intend to start public consultations soon. Let me respond to Mr Lim Biow Chuan's specific points. First, our proposed enhancements to the CPFTA will include strengthening the injunction framework to prevent errant retailers from side-stepping injunction orders, and appointing an administering Government agency with investigation and enforcement powers. Those who engage in criminal activities, such as outright cheating, will continue to be investigated by the Police under the Penal Code. Secondly, to mandate that businesses put prepayments into escrow accounts will raise business costs which, unfortunately, would ultimately be passed on to consumers. Instead, consumers can protect their prepayments by choosing retailers that are CaseTrust-accredited. Most CaseTrust-accredited retailers provide protection for consumer prepayments.”
“In addition, SPRING will also support the upgrading of internal processes within TACs, such as in HR, information technology and finance, by providing funding for consultancy, hardware and software upgrading. To spur transformation of the sector, SPRING will work with TACs under LEAD+ to strengthen the services they provide to their members. For instance, it will support a wide range of TAC-led activities, including collaboration with Centres of Innovation (COIs), OTR and market sensing activities. LEAD+ will be introduced in phases, starting with TACs that are already on board the LEAD programme. For smaller TACs that may lack the scale or capabilities, I encourage them to start by embarking on LEAD projects with SPRING. As mentioned by the Minister for Trade Lim Hng Kiang, TACs can also work with SPRING on TAC-Collaborative Industry Projects, in order to benefit their members. Through these projects, TACs and SMEs can work with our research institutes and tap on new technologies, which could include data analytics and food packaging technologies, as mentioned by Ms Sun Xueling. TACs can also come together and collaborate. For instance, our TACs in the logistics sector can also work with TACs in the food or retail sectors, to provide solutions to one another's problems in a synergistic and complementary manner. Smaller TACs can also consider moving to the TA Hub at Jurong Town Hall. By clustering at the TA Hub, smaller TACs can share facilities, tap on secretariat support from the larger TACs and explore collaboration in areas, such as training and organising overseas missions. I am happy to note that in addition to SCCCI, more than 10 TACs have indicated their interest to locate at TA Hub.”
“Fourth, TACs can embark on Operation and Technology Roadmapping (OTR) with A*STAR under the GET-Up Programme for their respective sectors. OTR is a detailed step-by-step plan that lays out the technological capabilities needed for companies or sectors to remain competitive. Fifth, as Mr Thomas Chua has noted, TACs can also bring SMEs together and help them internationalise. For example, a number of TACs have worked with IE Singapore on the Deal Hunter Programme to help SMEs source for business leads on a collective basis. Under this programme, the Franchising and Licensing Association (Singapore) organised 47 meetings in Japan for six companies, resulting in 15 business leads and overseas sales of $530,000. For TACs that are willing and ready to take on a larger role, the Government will put in more resources to build up their capabilities. Ms Foo Mee Har and Mr Thomas Chua may wish to note that we will be introducing the LEAD+ programme to help TACs from selected sectors. For a start, we will be working more closely with TACs that have already achieved a certain level of competency, and from priority sectors for transformation and growth. To help address the need for leadership development among TACs, SPRING's LEAD+ programme will support selected TACs on strategic planning, succession planning within TACs, as well as groom younger leaders. To strengthen the management of the TAC secretariat, SPRING will support training of the leadership team to manage corporate functions and also the secondment of up to 20 public officers over five years to TACs. SPRING will support up to 70% of the cost of this secondment and development programmes.”
“If SME Centres can be compared to GP clinics, then the role of TACs in ITP would be akin to that of "specialist doctors". Allow me to elaborate further. First, businesses best understand the trends, opportunities and challenges of their sectors. In this regard, TACs can play a critical role in leading the transformation of their respective sectors, by organising the industry players and set the direction for growth and transformation of the sector. The Government has to work hand in hand with our businesses. There is a saying that "the business arena is like the battlefield"; businesses should work closely with one another to achieve greater results. In this regard, the Government can set the economic strategies but, at the tactical level, businesses must still lead the charge. Second, TACs' extensive reach and business networks also create a multiplier effect for the Government to touch base with many more SMEs than Government agencies alone are able to. Ms Sun Xueling had asked about how SMEs can be alerted to business trends and opportunities. One effective way is through TACs. Mr Leon Perera may also wish to note that Government support for TACs is carefully scoped out and meant to create as wide an impact as possible. Since 2005, SPRING and IE Singapore have worked with 35 TACs on various sector upgrading projects under the LEAD programme. As of March 2016, 35 TACs have been supported for more than 180 industry-upgrading projects, totalling more than $120 million in grant and benefiting about 40,000 local enterprises. Third, TACs can also support their sectors' growth by facilitating the aggregation of demand and provide shared resources for the industry. This can free up the time and energies of many SMEs and allow them to focus on their core functions.”
“Secondly, there was more focus on accelerating overseas growth of Singapore companies. IE Singapore introduced a new tax incentive – the International Growth Scheme, and expanded the scope of Internationalisation Finance Scheme to include mergers and acquisitions. Thirdly, we introduced more targeted assistance to address the manpower needs of internationalising companies. IE Singapore enhanced the Double Tax Deduction for Internationalisation (DTDi) to include qualifying manpower expenses for Singaporeans who are posted overseas. This supports businesses that are expanding overseas and creates more skilled jobs and opportunities for our Singaporeans. The Minister for Finance has announced that the scheme will be extended for another four years until 31 March 2020. The Minister for Industry, Mr S Iswaran, talked about the ITP. One key plank of this effort is our partnership with our TAs. Mr Chairman, if I may now speak in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Ms Foo Mee Har and Mr Thomas Chua spoke about the role of our TACs. With over 300 TACs in Singapore, the TAC landscape is very diverse – ranging from the broad-based ethnic chambers, to industry associations, as well as smaller TACs with only a handful of members. The Government has been working closely with the business-focused TACs to reach out to SMEs. For instance, our apex chamber, the SBF, is one of our key partners in the Committee on the Future Economy (CFE). Besides working together with the broad-based TACs, our economic agencies will need to take a more targeted approach to drive transformation of our key sectors. For ITP to be implemented successfully, effective partnerships with TACs are crucial.”
“These specifications will then allow companies to explore productive initiatives, such as the installation of overhead cranes, to replace and reduce their reliance on fork lifts. 6.45 pm In addition, Mr Chen Show Mao may wish to note that JTC's subletting policy provides companies with the flexibility to adjust their space usage according to business needs and supports space sharing by allowing lessees to sublet up to 30% of the total gross floor area to other companies for better synergy or to put temporarily unused space to better use. However, in terms of market share, JTC industrial space currently constitutes only 8% of all industrial space and we do not have the critical mass to influence overall market pricing. Beyond our local environment, SMEs must also pay attention to the global environment and seize opportunities as they arise. As Mr Liang Eng Hwa pointed out, the Market Readiness Assistance (MRA) programme and Global Company Partnership (GCP) programme were enhanced last year to help companies internationalise and take advantage of these overseas business opportunities. Just to give some numbers, in 2015, IE Singapore supported 34,000 companies in their internationalisation efforts, and this is a 21% increase over 2014. Over 80% of these companies were SMEs. Through the MRA programme, more than 30,700 companies were supported, and the take-up rate of MRA grants increased by seven-fold over 2014, benefiting mainly SMEs with an annual turnover of below $5 million. And under the GCP programme, over 3,800 companies received help to grow their business overseas in 2015. IE Singapore also helped companies to secure $769 million in trade and financing loans in 2015, up from $753 million in 2014.”
“In a survey conducted after the campaigns, 94% of respondents said they were aware of such self-checkout facilities. Among these, 97% of them have used the facilities. If consumers play their part and we see businesses responding to it, we will get better traction in our productivity drive. Mr Thomas Chua asked about the need to help our traditional sectors transform and upgrade. One key strategy is the cluster development approach to revitalise and transform traditional sectors. We want to create a social environment where co-located SMEs can collaborate more with one another and find common solutions to solve common problems. Miss Cheryl Chan may wish to note that by clustering companies from sector-specific areas together, SMEs can share infrastructure and services to enjoy better economies of scale and lower the start-up costs. With reference to Mr Chen Show Mao's comment, this is one way that we have changed how we use business space while maintaining affordability and competitiveness. For example, the JTC Food Hub@Senoko, conceptualised jointly by JTC, SFMA and the Singapore Manufacturing Federation (SMF), houses a shared cold room and warehouse facility (CWF). At the food hub signing ceremony I attended last week, food manufacturing and services companies told me that they could save on start-up and operating costs by tapping on these ready-built facilities and services offered by the CWF operator. I am happy to announce to Members that JTC will be developing a new Metals, Machinery and Timber (MMT) Hub in Kranji for SMEs in metals, machinery and timber trades. To be completed in 2020, this multi-storey MMT Hub will have high ceilings and heavy floor loading to accommodate tenants' heavy automation machinery and products.”
“This will be especially helpful for retailers who already have their own brands as they can reach out to markets beyond Singapore. According to a recent report by Bain and Company, two-thirds of the 150 million digital consumers in Southeast Asia are already shopping online. This is a huge online market compared to the physical market of five million in Singapore. A number of local retailers understand that the opportunity for e-commerce is here and now. Forward-looking businesses are already changing in response to the changing consumer shopping habits. The Singapore Food Manufacturers' Association (SFMA) has also worked with IE Singapore to launch the first Singapore Pavilion e-commerce shopfront on Tmall.com, China's largest e-commerce marketplace. This has helped Singapore food manufacturers benefit from the collective branding, joint marketing, as well as the sharing of warehouses and logistics. And since the platform's launch in August 2015, 40 food companies have participated in this initiative. We have been focusing a lot on what the Government should do and how our businesses can transform. However, the reality is that businesses also respond to consumer needs and behaviour, and the retail sector cannot transform quickly enough if consumer mindsets and purchasing habits do not change. Consumers can also play their part in helping our businesses to transform. For example, we have been working with the major supermarkets to proliferate the use of "self-checkout counters". If consumers adopt such behaviours, it will help to release manpower from these supermarkets to do higher value jobs. To shift consumer mindsets, MTI has launched a series of publicity campaigns to promote this "Do-it-yourself (DIY) culture" within our consumers.”
“More than five years into our national productivity drive, we are on track to achieve the Economic Strategies Committee's target of 2% to 3% productivity growth for the decade as a whole from 2009 to 2019. At the macro level, between 2009 and 2015, labour productivity, as measured by value-added per actual hour worked, grew by 2.7% per annum. However, most of this was due to the high productivity growth in 2010. Productivity growth since then has weakened. At the sectoral level, however, the situation is somewhat more varied. Some sectors, especially the outward-oriented ones, are doing better than others. For example, since 2009, our finance and insurance sector achieved productivity growth of 4.7% per annum. Overall, labour productivity of the outward-oriented sectors grew by 5.1% per annum from 2009 to 2015. On the other hand, our domestic sectors, such as retail and food services, where the bulk of the companies are still heavily reliant on manpower, are not doing as well. From 2009 to 2015, the labour productivity growth of these domestically-oriented sectors remained rather weak, at 0.8% per annum. Therefore, we need to press on with productivity drives in these weaker sectors. Mr Saktiandi Supaat asked about our productivity strategies going forward. For our productivity drive to succeed, we must go beyond Government incentives and Government measures. Business and consumer mindsets must change. Let me illustrate this with the retail sector. Under the second five-year Retail Productivity Plan that was announced last year, one key focus area is sales growth. SPRING will support retailers to improve their online sales by collaborating with e-commerce players, such as SingPost, Google, eBay and RedMart.”
“The two business costs often cited by businesses are labour and rent, as Mr Chen Show Mao said earlier. The truth about labour costs is that between 2009 and 2015, real wage growth outpaced productivity growth. While labour productivity, as measured by value-added per worker, rose by 2.2% per annum over this period, the real median income of full-time employed residents, however, rose by a higher 2.5% per annum. This has contributed to an increase in unit labour cost of 1.5% per annum over the same period. Therefore, we need to press on with increasing our productivity to keep pace with wage increases. Next, on rental costs. Mr Chen Show Mao expressed concerns about rental costs in our shops. Mr Henry Kwek also suggested that steps be taken to lower rents should the economic situation worsen. But in reality, rents are already coming down and will continue to face downward pressure from a further supply of rental spaces coming on stream. Let me illustrate. In 2015, industrial rents fell by 2.1% compared to the previous year. In the next two years, an average of 2.3 million square metres of industrial space will come on stream annually. Similarly, for office and retail space, rents have fallen by 6.5% and 4.1% respectively in 2015, while a large supply of 993,000 square metres of office space and 808,000 square metres of retail space remains in the pipeline in the near future. Mr Saktiandi Supaat asked about the root cause of our slow productivity growth. Let me, first, say that slowing productivity growth is not something unique to Singapore. It is a global challenge. Productivity growth in the Organisation for Economic Cooperation and Development economies, for example, has fallen below 1% since 2012 and has remained weak at 0.3% in 2014.”
“To make Government assistance more accessible to SMEs, especially the smaller ones, SPRING has worked with TACs to set up a network of 12 SME Centres, all across Singapore, housed within TACs, our Community Development Council (CDC) offices as well as within the heartlands. Like general practitioner (GP) clinics, these SME Centres have been serving as the first port of call for SMEs and providing one-to-one consultations on business and productivity assistance. In 2015, our Business Advisors at the SME Centres reached out to more than 22,000 SMEs. But I hope that SMEs will also take the opportunity to be proactive in seeking help from these SME Centres, especially if they are in need of assistance. As mentioned by the Minister for Finance, the second half of 2016 will also see the public launch of the Business Grants Portal, which will make grants even more accessible to our SMEs. Ms Sun Xueling shared her concerns about SMEs' access to information. Apart from one-to-one consultations at these 12 SME Centres, our economic agencies like SPRING and IE Singapore have been conducting regular dialogue sessions with SMEs to discuss the latest trends and opportunities for SMEs. Just last week, SME Centres held a Convention for SMEs to share knowledge on business model transformation and innovation. Additionally, SMEs can also visit SPRING's SME Portal, which is in both English and Chinese-language, for information on broad level industry trends, business guides as well as business opportunities. Our companies, especially in the SME sector, must transform and do so urgently. As a small country with limited resources, we cannot compete on costs alone. We recognise that costs, as Miss Cheryl Chan pointed out, continue to be of concern to businesses.”
“For instance, we will put more resources into schemes that have created the biggest impact on our SMEs. One such scheme is SPRING's CDG. I am glad to also announce that another scheme will be enhanced which is the Ministry of Communications and Information (MCI) and IDA's Infocomm for Productivity and Growth (IPG), which is funded from the National Productivity Fund (NPF). The $500-million IPG was first introduced at Budget 2014 to accelerate the take-up of IT solutions by SMEs and this will be enhanced in three ways. Firstly, the scope of the scheme will be widened to support costs like retrofitting and business consultancy that are needed to unlock the productivity potential of the solutions. Secondly, help will be made available for SMEs to upgrade to the most effective solutions, even if they have received help from IPG before. And to maximise impact, we will also support the costs of solutions across all branches of the business. I would like to assure Mr Louis Ng and Mr Azmoon Ahmad that Government support is open to all local enterprises, including the smaller ones. Depending on their specific needs, many SMEs have made use of the $5,000 Innovation and Capability Voucher (ICV) for consultancy services, and to adopt the various Integrated Solutions, such as fleet management systems and mobile ordering and payment schemes. So, there are solutions that SMEs can adopt based on their individual specific needs. But the key challenge is in the outreach to this diverse group of 116,000 local micro-enterprises which can range from our HDB heartlander shops to a car workshop, for example.”
“Thank you, Sir. As mentioned by the Minister for Trade Lim Hng Kiang, we recognise that companies are facing headwinds this year. Some sectors will be more affected than others. Mr Yee Chia Hsing and Miss Cheryl Chan asked about how the Government will help SMEs ride through this period. During this year's Budget Statement, the Minister for Finance announced a number of measures to address the near-term concerns of our companies, especially SMEs. And these include measures, such as the enhanced corporate income tax rebate, holding off foreign worker levies for certain selected sectors and the new SME Working Capital Loan Scheme. The Government is monitoring this very closely and we stand ready to act when necessary. Let me highlight that these new measures are over and above the existing suite of assistance schemes that we have introduced over the years to help SMEs in their transformation journey. I am pleased to announce that over the next five years, the Government will set aside a grant budget of over S$2.3 billion under the fifth tranche of the Enterprise Development Fund (EDF 5), specifically for the development of local enterprises. This is a significant increase from the $1.4 billion approved under the previous tranche. EDF 5 will support existing SPRING and IE Singapore schemes, and EDF 5 will go towards supporting ITP that the Minister for Finance has announced. Mr Liang Eng Hwa may wish to note that this will go towards supporting SMEs to upgrade and capture new growth opportunities. But even as we set aside more funds for development of local enterprises, we are also sharpening our assistance schemes to make sure that our interventions are more targeted. This will ensure that we get the most out of our limited resources.”
“Mr Chairman, may I have your permission to display some slides later on in my speech?”
“Mdm Speaker, for flat owners who have financial difficulties, the banks would usually alert HDB when the flat owners start to default on their payments. In general, HDB will assist flat owners who are facing difficulties to seek help from social support agencies by recommending that they get a job if they are out of a job or to provide them with temporary financial support through the SSOs. HDB, however, is not a bank and is not able to offer personal loans to flat owners, although we can help them with restructuring their HDB mortgage loans.”
“Mdm Speaker, the Housing and Development Board (HDB) has various assistance measures to help families who have fallen on hard times. As a first step, Housing Counsellors in HDB branches provide financial counselling and explore sustainable housing options with the flat owners, for example, by subletting their spare bedrooms. The Housing Counsellors in the branches may also refer them to social support agencies for job placements and financial aid, for example, at the Employment and Employability Institute, Social Service Offices (SSOs) and Family Service Centres. Flat owners who face short-term difficulties in servicing their mortgage instalments may be offered a temporary reduction or deferment of their mortgage instalments to help them with their cash flow situation. For those who face longer term difficulties and hardship, HDB will advise them on measures, such as including their working adult children as joint owners, to help with the mortgage instalments. Another long-term measure is to right-size to a flat within their means. In this situation, HDB may offer them another loan and/or interim rental housing to help with their move. Page: 6 For low-income households who are unable to afford another flat, have no family support and no other housing options, HDB may offer them a public rental flat.”
“Mdm Speaker, in HDB's planning norms, what we want to do is to allow first-timers to have a greater priority in home ownership. Second-timers have already owned an HDB flat before and so, in that instance, they will not be given priority above first-timers.”
“Mdm Speaker, can I clarify with the Member again what is his follow-up question?”
“Mdm Speaker, the income ceiling and other eligibility criteria for rental flats are reviewed from time to time. At $1,500 per month of income, the current income ceiling enables us to prioritise our rental flat supply for low-income households. Nevertheless, the Housing and Development Board (HDB) exercises flexibility to allow some families with higher income to get a public rental flat, if they have no family support and no other viable housing options. These include divorced parents with children. HDB also grants priority allocation of rental flats on a case-by-case basis to families with school-going children, for example, to accommodate arrangements for the care of these children. Even without priority allocation, the waiting time for a rental flat has been reduced substantially from 21 months in 2008 to four months in 2015. For Sale of Balance Flats (SBF) exercises, HDB already gives priority to families with children through the Third Child Priority Scheme (TCPS) as well as the Parenthood Priority Scheme (PPS).”
“Mdm Speaker, in terms of HDB's priority, it is to ensure that people who want to purchase a flat are buying it within their means and not add a further financial burden. For such cases, wherever possible, we will try to incorporate the resale levy just to spread it over a longer period, so that they will find the payment of the instalments much more bearable on a monthly basis. For those cases where, clearly, even with incorporation of the resale levy, they will find it unaffordable, then I think the right thing to do would be to give them financial counselling and advise them to defer the purchase to a later date.”
“The Assistance Scheme for Second-Timers (Divorced/Widowed Parents), or ASSIST, was introduced in May 2013. Up to May 2015, there were 230 applications from divorced or widowed parents under ASSIST. There are sufficient flats set aside for them each year, with 97%, or 223 of the 230 applicants, being successfully shortlisted to select a flat. Eighty-five applicants under ASSIST had approached the Housing and Development Board (HDB) for financial assistance to purchase their flats. HDB helped over half of these applicants. Most needed help with paying the resale levy. HDB assesses the circumstances of each case and provides assistance wherever possible, for example, by incorporating the resale levy into the purchase price of the Build-To-Order (BTO) flat, so that the payments can be spread over a longer period of time. Of the remaining applicants, some wanted to buy a flat beyond their means. In such circumstances, HDB will advise them to buy a flat within their budget instead, while others were advised to defer the flat purchase until they were financially ready. Low-income divorced or widowed parents who have no housing options or family support may be allocated public rental flats or interim rental housing. Those who have booked BTO or uncompleted SBF flats may also apply to rent a flat under the Parenthood Provisional Housing Scheme. HDB reviews its policies and rental flat supply regularly to ensure that there are sufficient rental flats for such families. In 2015, about 800 divorced/widowed parents were assisted with various forms of rental housing, the majority being public rental.”
“Mdm Speaker, we do not have the numbers that the Member is asking for. Perhaps we could take this as a separate Parliamentary Question in subsequent Sittings. 1.30 pm”
“Madam, I thank the Member for her questions. For the last three years, HDB has not evicted any tenant in a rental flat who has been unable to find a co-tenant. HDB does exercise flexibility in each of the cases where there is difficulty in people getting along and staying Page: 31 together within the same rental flat. For the question on whether we would be building more of such unique 1-room rental flats, from the 2012 Building Plan onwards, certain stacks of 1-room flats are designed where feasible, with dual windows and partition walls. The partitions will divide the bed area into two with the living area, kitchen and the toilets as the common amenities. Each bed area will have sufficient spaces, as I had said earlier, to accommodate a bed as well as a small wardrobe, so that there is some degree of privacy for the tenants within a 1-room configuration. Starting from some projects under the 2013 Building Plan, such 1-room flats are further designed with partitions and doors that compartmentalise the sleeping areas such that each occupant will have a semblance of his or her own bedroom. To date, we have allocated 94 out of the 152 completed 1-room flats in Sengkang, Yishun and Sembawang with partition walls. Another 17 flats with partition walls and 348 flats with compartments are currently under construction. The first batch of 15 flats with compartments will be ready for allocation after they are completed in the third quarter of 2016 in Tampines town.”
“Madam, I thank the Member for his supplementary questions. First, on how many rental tenants have been allowed to retain the flat and stay alone when they are unable to find a flatmate, for the past three years, from 2013 to 2015, we have allowed 42 tenants or applicants to rent an HDB flat alone, owing to really extenuating circumstances. Usually, these are medical-related conditions. In cases of difficulty getting along, we will usually allow some time for the Residents' Committees, local grassroots as well as the Community Mediation Centre to mediate between the two tenants and hope for a good resolution. In cases where the tenants cannot get along, we would usually not force such pairings and may exercise some flexibility but we would usually seek an approach in which we encourage the tenants to continue to look for an eligible partner with whom they can get along to share the flat with.”
“The Housing and Development Board (HDB) registered 2,184 rental applications in 2015, of which, 398 or 18% were registered under the Joint Singles Scheme (JSS). JSS ensures prudent use of limited public rental flats to help those in need. Most JSS tenants are able to live together amicably. The key is mutual respect and tolerance. However, there are instances where tenants are unable to get along and request for a change of tenant. For the past two years, there were 235 such requests, out of around 12,000 JSS households. In such cases, HDB will advise them to settle their dispute amicably or seek help from the grassroots organisations or the Community Mediation Centre. If the dispute cannot be settled and one person needs to move out, HDB will advise the remaining person to include another eligible single to retain the flat. The outgoing person may submit a fresh application to rent another public rental flat with another eligible person. Page: 30 The Ministry of National Development (MND) and HDB have no plans to allow singles to rent a flat alone. Nonetheless, since 2015, HDB has made available some new 1-room rental flats with partitions to create separate sleeping areas for each occupant, for singles who prefer more privacy. Each sleeping area can accommodate a single bed and a small wardrobe and has its own windows, while the living area, kitchen and toilet remain shared. For those who need to stay alone for exceptional reasons, such as medical grounds, HDB will assess their requests on a case-by-case basis.”
“Mdm Speaker, may I have your permission to take the next two questions together?”
“Mdm Speaker, using a time series regression analysis, CCS has found that for a longer period that we looked at between January 2010 and January 2016, for every S$0.10 increase or change in the price of MOPS pricing, the listed price of the petrol for Octane 95 changed by about S$0.07 in the same direction on average, and this took place over a relatively short 10-day period. On average, there was no significance between the prices, whether it was on the rise or on the decline. So, on a day-to-day basis, the level of pass-through and time taken for adjustments may deviate due to fluctuations in the fuel and non-fuel components but, on the whole, the fluctuations do reflect the changes in the petrol pricing. On the three-quarter tank rule, that is something we have to continue to study and see the merits of whether it is something we should implement.”
“Mdm Speaker, I just want to clarify that with regard to actual petrol pricing, MOPS is a recognised international standard of pricing based on actual international trades from Singapore. The MOPS price is a price on which oil is traded in Singapore and the region. MOPS prices are also used in the region as a price benchmark to make an assessment of the financial value of oils which are transferred from upstream production to refineries and, subsequently, to the market. For example, Australia imports wholesale petrol from Singapore based on MOPS price, which is a key pricing benchmark. So, in terms of pricing of petrol, how the price varies with crude oil Page: 12 changes, I think that has been used as a consistent and fair international benchmark. As to whether we should continue to open up competition, as suggested by the Member, I think that is something that we will continue to study and see if the market is suitable for such an introduction.”
“Mdm Speaker, based on the CCS study, there is no evidence of collusion in pricing among the different companies. As far as the pricing of petrol is concerned for which the key variation in response to market crude oil prices is the MOPS pricing, that has been consistent with all the other companies. MOPS pricing was also used as an international standard in pricing for petrol sale across jurisdictions, so I think that is a fair method for pricing crude oil and how retail petrol is being used in Singapore.”
“Mdm Speaker, I thank the Member for his question. The petrol companies do make a profit but as long as the profit that they make is not in excess of what is a reasonable margin that other similar petrol companies make over the same time period, I do not think that they are making a profit at the expense of consumers.”
“Mdm Speaker, I thank the Member for his questions. There is currently no legal requirement for petrol companies to display their pump prices prominently. CCS notes that the reason why petrol companies do not display their prices prominently is because, in certain jurisdictions overseas, petrol companies are accused of anti-competitive price signalling when they do so, when it is not legally required to do so in the first place. That said, CCS recognises that improved price transparency in the retail petrol market may facilitate easier comparison and more informed petrol buying decisions by consumers. CCS will be conducting a customer survey on petrol demand in Singapore to understand consumer choices and their switching behaviour on petrol purchases, in particular, whether improving price Page: 11 transparency will facilitate a more competitive market. As to whether we should be having another petrol player in the market, that will be a commercial decision that NTUC has to take. I am not sure whether NTUC is contemplating this in the first place.”
“Based on information that CCS has gathered in the market study, there is no evidence to suggest whether there is any collusion in petrol pricing even though they do monitor the prices. Consumers, generally, as the Member pointed out, do enjoy discounts and rebates off the petrol prices. In 2014, consumers enjoyed an average of about 18% discounts and rebates off the retail petrol prices for Octane 95. The discounts and rebates, especially for credit cards, are quite variable and are not easily comparable due to varying terms and conditions.”
“Mdm Speaker, I thank the Member for his question. Let me just go through what exactly is the difference between listed prices and effective prices. Listed prices are prices that are observed at petrol stations, for example, those that are displayed at the pumps. Effective prices are listed prices that exclude the levy hike introduced in February 2015, but have factored in the discounts and the rebates that are enjoyed by the consumers. The price that Page: 10 consumers pay will be the listed prices minus the discounts and the rebates. The question of whether the petrol companies' prices will go up and how much the increase in petrol prices are affecting the operating income of the companies, for example, in terms of the profit margins that the Member was alluding to, on average, on a per litre basis, the operating income of petrol companies has generally increased over the past few years, but the increase is smaller relative to the increase in the non-fuel components that the companies have to shoulder. Unfortunately, CCS is unable to provide further details about the change in the operating income at the company level, as such information is deemed to be commercially sensitive. As to whether the companies are profiteering, on average, the operating income of petrol companies has generally increased over the past years. As I have said earlier, this increase is smaller relative to the increase in the non-fuel components, such as operating costs, taxes and duties, land cost, discounts and rebates. An increase in profit, in itself, is not a contravention of the Competition Act, unless the increase is due to market players engaging in anti-competitive behaviours, which would contravene the Competition Act.”
“Mdm Speaker, between June 2014 and January 2016, MOPS price fell by S$0.52, or 53%, as I had said earlier, while the listed price of Octane 95 fell by S$0.35, which is about 15%. The smaller percentage drop largely reflects the fact that MOPS price made up only a third of the listed retail price. So, a third of S$0.52 would be a ballpark of about 15%. The lack of complete pass-through could also be due to changes in non-fuel components, as I have listed earlier. As to whether we will be studying this further, yes, CCS will continue to monitor and study. We will be embarking on a study on the supply side of the equation to see if consumer behaviour does affect pricing from the petrol companies.”
“Over the six-year period between 1 January 2010 and 31 January 2016, CCS observed that the listed prices for Octane 95 petrol moved in tandem with MOPS prices. There was no significant variation between the time taken to either raise or lower the listed prices for Octane 95 petrol in response to changes in MOPS prices. The magnitude of the change in listed prices for Octane 95 Page: 9 petrol relative to the change of MOPS prices was also observed to be the same, whether MOPS prices increased or decreased. Based on the information gathered, there is no evidence, Mdm Speaker, to suggest collusion in retail petrol pricing, even though petrol companies do monitor and react to one another's published prices. CCS will continue to monitor developments in the retail petrol market.”
“In 2015, the Competition Commission of Singapore (CCS) commenced a study on the factors affecting the movement of petrol prices in Singapore since 2010. CCS found that the petrol companies use Mean of Platts Singapore (MOPS) prices, not crude oil prices, in their cost accounting and pricing decisions for retail petrol. Crude oil price is the price of unrefined oil while MOPS price is the price at which petrol companies purchase refined wholesale petrol from the refineries. MOPS price tends to be higher than crude oil price as it includes the cost of refining crude oil into wholesale petrol. In 2015, MOPS price made up less than one-third of the listed retail petrol price. Other components of retail petrol price include operating costs, taxes and duties, land costs, discounts and rebates. These non-fuel components have generally increased in the past few years. The retail petrol price that consumers generally pay includes the petrol levy as well as discounts and rebates. Consumers enjoyed an average of about 18% in discounts and rebates off the listed price for Octane 95 petrol in 2014 through site discounts, loyalty programmes and credit card payment. Between June 2014 and January 2016, crude oil price fell by an average of S$0.59, MOPS price fell by S$0.52 and the listed price for Octane 95 petrol fell by S$0.35. The pass-through, while relatively high at around 70%, is not complete because of the non-fuel components which make up more than two-thirds of listed retail petrol price. After taking into account the discounts and rebates that consumers enjoy and the levy increase in February 2015, the effective price that consumers paid for Octane 95 petrol fell by S$0.45, implying a pass-through of over 85%.”