Lau Ping Sum
Singapore
“Sir, does the Minister agree with the present method of computation under which any amount withdrawn on the last day of the month would not earn any interest between the first day of the month and the date of withdrawal?”
“In the case of the new housing projects in Ang Mo Kio, in deciding on the judicious mix between public and private housing, would the Ministry take into account the fact that a large number of Ang Mo Kio residents have indicated a preference for more HDB flats within the town?”
“Mr Speaker, Sir, I beg to move, That the sum to be allocated for Head O of the Main Estimates be reduced by $10 in respect of Code OA 1500. Sir, foreign service in Singapore, as in other countries, is a premier service. The demands on and challenges faced by the foreign service officers are many and varied.”
“Sir, in the last 35 years, a large number of Singaporeans have benefitted from technical assistance given by other countries, eg, under the Colombo Plan. Many of our senior engineers and other professionals were, in fact, trained in countries like Australia and New Zealand.”
“I am certain that the Singapore Turf Club is more than capable of devising schemes of various descriptions to finance the relocation of its facilities to Kranji. For example, with the use of modern technology, wireless communications and smart phones, off-course betting can raise its revenue significantly.”
“The activities that they organise are many and varied and it is common knowledge that many of our foreign guests are impressed by the safety and the quality of life that we get in HDB estates.”
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“Sir, does the Minister agree with the present method of computation under which any amount withdrawn on the last day of the month would not earn any interest between the first day of the month and the date of withdrawal? In other words, if the withdrawal is made on the 30th, then no interest will be earned even for the first 29 days of the month?”
“I beg leave to withdraw my amendment. Amendment, by leave, withdrawn.”
“In the case of the new housing projects in Ang Mo Kio, in deciding on the judicious mix between public and private housing, would the Ministry take into account the fact that a large number of Ang Mo Kio residents have indicated a preference for more HDB flats within the town?”
“Sir, I beg to move, That the sum to be allocated for Head U of the Development Estimates be reduced by $10 in respect of Code UI 5100. Ang Mo Kio estate is a popular one. It is only a mere 15-minute MRT ride from Orchard Road and, for a 20-year old estate, it is very spacious and well laid out. The blocks are not as closely clustered as those in the new estates. Residents enjoy a full range of excellent facilities, social, educational and recreational. It is therefore not surprising that numerous requests for new flats within Ang Mo Kio town have been received by the MPs, both from the young couples who wish to live near their parents and from families with grown-up children. Last year, several blocks of new 5-room and executive apartments were completed at the junction of Avenue 4/Avenue 5. The demand for these units had been overwhelming. We notice that there is some vacant land near the Ang Mo Kio library. Many residents hope that more HDB flats will be built here instead of transferring it to URA for public tender. In the last few years, several plots of land near the Ang Mo Kio Community Hospital had been sold to private developers and despite periodic forecasts to the contrary, private condominium prices continued to climb to levels beyond the reach of most HDB households. So it was good and welcome news to hear that the Minister has plans to upgrade the whole of Ang Mo Kio town. I would like to ask the Minister when these long-term development plans would be available for public information, how many precincts will be included for MUP and IUP and, in view of the solid support that Ang Mo Kio GRC and Cheng San GRC have given to the Government over the last 15 years, whether Ang Mo Kio town will be given priority in this exercise.”
“I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $147,271,170 for Head O ordered to stand part of the Main Estimates. The sum of $16,000,000 for Head O ordered to stand part of the Development Estimates.”
“Mr Speaker, Sir, I beg to move, That the sum to be allocated for Head O of the Main Estimates be reduced by $10 in respect of Code OA 1500. Sir, foreign service in Singapore, as in other countries, is a premier service. The demands on and challenges faced by the foreign service officers are many and varied. Diplomacy changes the course of momentous events. At the same time, it is well known that life in Singapore is very comfortable and many regard an overseas posting a hardship rather than an opportunity for career development. The private sector offers many rewarding and interesting career options. Under the circumstances, is the Minister satisfied with the recruitment and retention of the talented in the Foreign Service and are there plans to improve the terms and conditions and the training given to ensure that MFA gets a fair share of the brightest in Singapore?”
“Sir, in the last 35 years, a large number of Singaporeans have benefitted from technical assistance given by other countries, eg, under the Colombo Plan. Many of our senior engineers and other professionals were, in fact, trained in countries like Australia and New Zealand. As Singapore advances, it is fitting that we play a more active role in providing training to other countries, not just to improve bilateral relations but also to fulfil our role as a responsible member of the community of nations. These training schemes can contribute towards greater understanding, harmony and development in the world. Can the Minister give an update of the various training assistance schemes and is he satisfied with their implementation?”
“I beg leave to withdraw the amendment. Amendment, by leave, withdrawn. The sum of $5,386,000,000 for Head K ordered to stand part of the Main Estimates. The sum of $300,000,000 for Head K ordered to stand part of the Development Estimates. Head E -”
“I am certain that the Singapore Turf Club is more than capable of devising schemes of various descriptions to finance the relocation of its facilities to Kranji. For example, with the use of modern technology, wireless communications and smart phones, off-course betting can raise its revenue significantly. The Singapore Turf Club can explore other options to divert bets placed with illegal bookmakers to the Turf Club. With electronic betting systems, the Club can offer the convenience of placing a bet anywhere and anytime. Punters and race-goers need little persuasion to part with their money in any case. Would the Minister consider reallocating all or part of the $150 million to other more worthy causes, for example, the National Computer Board's IT Cluster Development Fund or the NSTB's R&D grants which will benefit Singapore in a more meaningful and tangible way in the long run? 5.02 pm”
“For example, even with the adjusted threshold values, the stamp duty for property transfers of a million dollars amounts to $24,600. As an indirect tax, stamp duty remains a very high tax and a reduction in rate rather than adjusting threshold values would be preferable. The reason given for not reducing the rate is that we want to curb speculation in properties. However, for genuine buyers and people who are upgrading and in line with the national objective of asset enhancement, people who buy a property once in five years or 10 years should not be made to pay the 3% stamp duty. Perhaps we can impose 3% on those who buy and sell properties for speculation, but for the genuine upgrader, a lower stamp duty of 1% or 1 1/2% will do. Sir, the GST has been implemented effectively. The Minister and his team of tax officials ought to be complimented for a highly efficient exercise in tax collection. However, I notice that the GST is also applied on the PUB tax which, by definition, is not a fee for the provision of utility services. It is a tax on PUB charges. I remember it was Dr Goh Keng Swee who introduced it in the early 70s to encourage the conservation of the use of electricity and water. Since GST is imposed on the total PUB bill amount, including the tax component, GST has become in this case a tax on tax. I recall Dr Hu had gone to great length last year to explain that the GST was not a tax on tax. Can the Minister review the need to levy GST on the PUB tax? Whilst the amount involved is small, the principle of consistency should, I think, be followed. Sir, in this year's Budget, the sum of $150 million has been set aside by the Revenue Division of the Ministry of Finance for relocating the Singapore Turf Club from Bukit Timah to Kranji.”
“Sir, the economic performance in 1995 was impressive. We have steady growth, a healthy balance of payments of $12.2 billion or so and strong foreign reserves amounting to more than $97 billion. The Budget indeed brought good news to one and all, contrary to what some of the Opposition MPs have been saying. It is the right thing to do. Whilst the economy is doing well, the fruits of success should be shared by all. A friend from China commented that Singapore seems to be using capitalistic means to achieve socialist goals. If by socialism he means the belief in sharing of wealth and improving the standard of living of the people, then indeed Singapore has achieved more than most, if not all, the socialist countries in the world. But the more wealthy citizens have not been left out in Singapore for they too have benefitted from lower income tax, property tax and lower estate duty. Dr Hu's approach is, as usual, one of caution and quiet confidence. Recognising rising business costs and the widespread concern, he has reduced corporate tax to 26%. The reduction is welcome and it is unlikely to over-stimulate the economy. High rental and wages and labour shortage are problems confronting all developed countries. As we progress upwards, these problems are likely to get worse. It is therefore important for the Government to explore all possible options to moderate such increases. Sir, the stamp duty on property transfers has been reduced by adjusting the threshold values for the three rates, ie, 1-3%. In effect, this would result in maximum savings of $3,000 on property transfers of $360,000 and above. However, the 3% rate is still high, given the high property prices today.”
“The activities that they organise are many and varied and it is common knowledge that many of our foreign guests are impressed by the safety and the quality of life that we get in HDB estates. Sir, I would like to make a plea for our grassroots leaders who wish to continue to stay on in their existing estates to be given a greater number of flats for allocation among them.”
“Sir, during the early 80s, we used to get a lot of requests from residents for early allocation of flats. But with the accelerated construction programme that HDB undertook during the mid-80s and the late 80s, the number of such requests dwindled. In the last few years, we noticed that the number of such requests has gone up again. This could be due to the rapidly rising prices of private housing and there are many residents who are getting more and more worried because, to many of them, private housing prices are simply beyond their reach. I know it is impossible to devise an allocation system which can satisfy everybody. However, in some cases, perhaps some fine-tuning is still necessary. For example, in a family with three children, they get certain priority. But we do not, I understand, differentiate between a family with three teenage children and a family with three young children. For a teenage girl, it is rather inconvenient and awkward to have to share a room with her two brothers. But in the case of a family with three young children, there is no such problem. Would the Ministry consider some fine-tuning for families with three teenage children? The second case I would like to bring up is the allocation of flats for our grassroots leaders. Our successful housing programme is due not only to the excellent design and architecture of HDB flats but also to the quality of life that exists in our HDB estates. And to a large extent, our grassroots leaders, our CCC, MC and RC members have played a significant role in bringing about a safer and better environment in our HDB estates.”
“I beg leave to withdraw the amendment. Amendment, by leave, withdrawn.”
“Sir, I wanted to know whether the Ministry has any numbers over the next five years. What would be the optimum number of data centres? RAdm Teo Chee Hean: As to the precise number of data centres that we have, I do not have an answer for Mr Lau. This is something which is constantly under review. The trend in the technology is towards distributed computing client-server networks. As these evolve, we will evolve as well.”
“The migration of MTI's mainframe to the data centre is in progress and it is expected to be completed in 1995. This will bring about further manpower and cost savings. The data centre will have to respond to the needs of its civil service customers. It has to evolve its services to stay useful as Government Ministries and departments move towards down-sizing and newer technologies. However, over the next 5-6 years, mainframe computers operated by the data centre will continue to be used by the civil service as large processing and information centres in a client-server architecture. During this period, the data centre must move into network management, mid-size servers and other areas to stay relevant as the relative importance of mainframe computers declines. Indeed, the civil service is now a very heavy user of local area networks and microcomputers. In short, market forces will shape the evolution of data centres.”
“Sir, I beg to move, That the sum to be allocated for Head N of the Development Estimates be reduced by $10 in respect of Code NG 5200. Sir, in the 1970s, before NCB was formed, there were only two data centres in the Government service, one at the Ministry of Defence and the other at the Ministry of Finance. After NCB was formed in 1980/81, it decided to increase the number of data centres in order to expedite computerisation. In due course, the number of data centres proliferated. By now, I think we have data centres in most of the Ministries in the civil service. In the last few years, however, there has been a fundamental shift of computing from mainframe computers to much smaller, more compact, and yet very powerful platforms such as PCs and network computers. For large mainframes, the overheads are high. Not only have they to pay considerable maintenance costs, they also need specialists to maintain these centres, people like database administrators, system programmers, who are in short supply in Singapore. Sir, I agree with the decision to rationalise the data centre operations in the civil service and reduce the number of data centres in the civil service. What I like to know is: what would be the estimated cost savings that we have achieved as a result of this exercise? And over the next five years or so, what would be the optimum number of data centres in the civil service? RAdm Teo Chee Hean: Sir, with the consolidation of the mainframe operations of the Ministry of Finance, Ministry of Health, the Judiciary and IRAS' data centre, the Government was able to achieve an estimated manpower saving of 58 staff or 38%, and a cost saving of $8 million or 32% in 1994. These savings have come about without any deterioration in the quality of service.”
“In appreciation of their hard work, the Government is now distributing the surpluses gained. I believe the people of Singapore are proud to have an efficient and effective Government and will continue to support the Government. I support the motion.”
“In this way, the people do not feel the burden and I have not heard anyone criticising Singapore Post for the increase in postage. I believe the move by the Singapore Post should be followed by other authorities in terms of raising their charges. Similarly, Singapore Telecom has been bold enough to reduce the subscription rate for handphones from $50 to $45. These are two examples out of a number of measures. This is the best way to do things. I mean, when profits have increased, levies should be reduced. Charges should also be reduced. These are things that the people always look forward to, and they will be really appreciative of them. Having made these points, I can conclude by saying that the PAP Government -P A P - has become a Profitable government and from its profits, the government Pays the people and I would urge the Government to continue doing so. As an example, the Government has given out a total of $594 million to the people, $234 million through the 10% income tax rebate and $360 million through CPF top-up on 1st October. This amount does not include rebates for Service and Conservancy charges and rentals. I believe these measures will leave the people with a sense of pride in the efficiency of the Government, and they will continue to support the Government. Some quarters might look upon this generosity as an economic or fiscal instrument to curb undue expansion of the economy without sacrificing growth. The Government actually realises that the people play an important role in the country's success because the people have been hardworking, because they have maintained stability and racial, social and political harmony in the country and because they have been determined to improve their life and education.”
“It will be exempted in the case of non-resident unit holders. By granting the same benefit to Singapore residents, investment in unit trusts will be more attractive. For the CPF account holders who use their CPF savings for investments, unit trusts will be a much safer bet than venturing into the volatile stock market. Encik Harun bin A. Ghani (Hong Kah GRC)( In Malay): Mr Speaker, Sir, basically the Budget presented by the Minister for Finance this year is intended to satisfy all sectors of society. I think the Minister's objective has been achieved because the Budget has benefited both individuals and the business community. However, people being what they are, when money is the issue, there is often a desire for more, as we have heard from speeches before. The Government's generosity in returning the surpluses to individuals and to those living in the flats gives the impression that the Government is beginning to pamper the people, although that is not the real intention. Here I am concerned that this generosity might be held by the people against the Government one day when it is not in the position to continue giving these handouts. I hope this will not happen and the Minister for Finance will continue to increase our surpluses so that the people will always be grateful for whatever they are given. At the same time, I would like to say that in raising the surpluses, the Government should consider the difficulties caused when levies are imposed abruptly and at high rates. In this regard, I must commend the Singapore Post for its wisdom in raising the postage rate by only 2 cents, when we know that petrol prices have not gone down and the cost of transportation continues to rise.”
“In order to encourage companies to venture abroad, the Minister announced removal of the two-level restriction. However, it is not entirely clear what the 50% shareholding requirement entails. Does it mean that the flow through is allowed as long as the company receiving the tax exempt dividend holds directly or indirectly at least 50% of the shares of the company paying the dividend? Or is a direct shareholding of at least 50% in the company from which it receives the dividend sufficient, notwithstanding that its indirect interest in the company paying the dividend is less than 50%? The incentive would be more attractive if the flow through of tax exempt dividends is allowed in both cases. In addition, the Minister has stated that the 50% requirement may be waived on a case-by-case basis. As the granting of a waiver on a case-by-case basis involves some degree of subjective judgement, can the guidelines used in such reviews be made known? Furthermore, would the Minister consider the following measures to further encourage Singapore companies to venture abroad: (1) To review the credit limitations rule from an itemised income basis to permit `averaging' of foreign taxes with respect to foreign income from different countries. (2) To allow carry-forward excess foreign tax credits without time limit for utilisation in subsequent years. Taxation on Unit Trusts The Minister announced a number of changes for interest, gains on disposal of securities, dividends and other income received by the unit holders. These changes by and large benefit the non-resident unit holders. Can the same benefits be extended to the individual unit holder resident in Singapore? For example, 10% of the gains on disposal of securities used to be taxed at 27%.”
“It is noteworthy that the Government has time and again re-emphasised the importance of every Singaporean to have a role to play and a contribution to make to the country. The HDB upgrading programmes, the CPF top-up schemes, rebates on rental and service and conservancy charges are visible measures to allow every Singaporean to enjoy the fruits of success. To promote social cohesion, these measures are necessary but not sufficient. But the desire for more of the good things in life can never be completely satisfied. We should be mindful of the universal values of diligence, thrift, mutual support and respect. Our neighbours in Malaysia have recently discovered that there are certain common principles between Confucian and Islamic teachings. We in Singapore should re-examine the way in which such basic values can be strengthened now that the teaching of Confucian ethics and religious knowledge has been discontinued in the schools. When Singaporeans learn to be more gracious and less self-centred and develop an interest in the non-materialistic aspects of life, we will have a more balanced perspective. Next, I would like to comment on some of the tax changes. On the payment of tax-exempt dividends out of foreign income, at present, a Singapore company may distribute foreign income as tax exempt dividends to its shareholders. If the shareholder is a company owning not less than 50% of the capital of the company paying the tax exempt dividend, it can in turn pass on the tax exempt dividend to its own shareholders. But the flow through of tax exempt dividend is restricted to two levels of shareholdings. Any further upward payment of dividend would be taxed in the hands of the recipient.”
“Mr Speaker, Sir, against a forecast of a FY94 budget surplus of $1.58 billion, the revised figure was $5.95 billion. As we all know, Singapore is one of the few countries capable of increasing the cumulative surplus year after year. Other countries with recurrent deficit face mounting debts or escalating inflation or both. The surplus of $5.95 billion is therefore good news. However, the original assumptions underlying the forecast of $1.58 billion appear to have been extremely conservative. While prudence in budgeting is necessary, official estimates may lose their credibility if the gap between the estimated and the final figures is too large. In this case, the revised FY94 budget surplus is 3.8 times the estimate. In the MTI Economic Survey of Singapore 1994, it is stated that sustained efforts were made to maintain a small and efficient public sector to release maximum financial and manpower resources to the private sector to build up the Singapore economy. Some people have therefore wondered if the high excess of receipts over outlay has not compromised these efforts. The Minister mentioned three key areas in which we need to devote attention. First, to prepare Singapore for the global economy; second, to provide maximum incentives to create wealth; and third, to build a more cohesive society. Without a cohesive society, even a highly skilled population will not be able to sustain Singapore in the long run. At the first sign of trouble, some of the highly skilled will leave for the greener pastures of other countries. On the other hand, if a large number of Singaporeans are not convinced that their future or their children's future is in Singapore, dissatisfaction will spread.”
“Sir, would the Minister agree that in some cases, the waiting period for transplants for dialysis patients is so long that they have very little choice but to go overseas? And in some cases, they have exhausted their savings in getting the overseas transplants. Would the Minister consider their application for subsidy more favourably? BG George Yong-Boon Yeo: We have considered whether or not we should encourage Singaporean patients who are still waiting for kidney transplants to go overseas. But, on balance, we decided at the Health Ministry level that it is unwise to encourage Singaporeans to go overseas for such transplants, for reasons I have stated earlier. As for patients who could afford to go for overseas transplants and who come back and for reasons of life's fortunes are suddenly unable to pay for the unsubsidised cyclosporin, then they can always appeal for Medifund assistance.”
“Some of the surpluses should be spent on the present generation to lessen the financial burden and to alleviate the anxiety of the common people. But of course, the system must not encourage abuse, wastage or the dependency mentality. Mr Loh Meng See: Sir, I am raising this subject of traditional Chinese medicine because I feel that if traditional Chinese medicine is here to stay and the public continues to use the services of Chinese sin seh, acupuncturist and bone-setter for treatment, it is better that the Government face the issue and deal with it. We may be able in the process to get maximum value and benefit out of traditional Chinese medicine. The local bodies, the Chinese Physicians' Training College and the Institute of Chinese Medical Studies, are trying their level best to improve the standards of training and practice of traditional Chinese medicine. With their limited resources, I doubt they can go very far without Government intervention. I read from press reports on the conferment of professorship and doctorate degrees on prominent alumni of the institutes. I wonder if this will not create confusion among members of the public as to the educational standards and quality of training of the institutes. It is time that we set the proper high standards for those who wish to practise traditional Chinese medicine in Singapore. The experience of Hong Kong and Taiwan shows that it is possible for traditional Chinese medicine to co-exist with Western medicine. Traditional Chinese medicine and Western medicine can be allowed to play the complementary roles in promoting the health care of Singaporeans. Is it not also to draw the best of the East and West in the field of medicine as well? I hope the Minister can comment on this.”
“Firstly, the Government's approach towards medical services for the people. I would like to emphasise that I agree with the Government's policy and philosophy on health care. However, I would like to ask the Government to consider allocating a slightly bigger budget for medical expenses in order to reduce the burden and anxiety of the common people whose fear of the rising costs of medical services is well known. The additional money, however, should be spent in such a way as not to encourage wastage and abuse. Secondly, MediShield and MediShield Plus do not cover medical expenses when the individual is more than 70 years old. How would those people at this advanced age then pay for their medical expenses? At that advanced age, medical expenses are likely to rise. Why should the Government design schemes which make these elderly people more anxious, particularly at the time when they are short of earnings and their medical needs are the greatest? By making this point, I am not suggesting that the Government gives automatic rights to a series of handouts on medical matters. That can lead to abuse. But I do mean that the Government can be kinder to those people whose economic situation is not that strong. Sir, the Government's sound financial policy has given us a strong economy. The Government is right in putting emphasis on education, on building up a good infrastructure and in accumulating strong reserves. Yes, we need to provide for our children. But how many future generations should we provide for? Beyond a certain point, we should not build up reserves, just for the sake of the reserves. The people are very concerned about medical expenses.”
“Sir, with the completion of the Ang Mo Kio Community Hospital last year, the concept of providing a relatively low cost hospital near the community has come to fruition. Grassroots leaders who were invited to view the hospital came away highly impressed. They were impressed by the beautiful facade of the hospital, the excellent quality of the finish and the interior decor of the hospital. However, they also expressed a concern that the Community Hospital may not be so low cost after all, and this perception may be brought about by two factors. First, we always emphasise the point that the consumer must pay. The payment must be made at the point of consumption. So ultimately, the consumer, in this case the patient, must pay a certain portion of the cost of running this excellent hospital. The second reason may be that some of them have gone to the private clinics located within the hospital - the Community Hospital has leased out a certain section of the space for use by private clinics - and the fees charged by these private clinics are seen to be rather high. So I would like to ask the Minister whether, for future planning, greater emphasis would be paid to the basics and the functionality of the community hospital rather than the aesthetics and the beautiful architecture of the building. The second point is in regard to the shortage of manpower in this community hospital. We know that the Minister for Health is a very persuasive person. I would like to find out whether he has been successful in persuading the Minister for Labour in securing greater manpower to fill the vacant positions of all the hospitals in Singapore, including the community hospitals. Mr Peter Sung (Buona Vista): Sir, I would like to make two brief points.”
“Sir, just now the Minister mentioned that the average effective tax rate paid by a Singapore taxpayer is 7% compared with Hong Kong's average effective tax rate of 8.9%. In computing the Hong Kong figure, it was based on the 1993 income tax provisions. In the latest 1994 tax provisions, I think the Hong Kong Financial Secretary has increased the personal relief from HK$30,000 to over HK$70,000, and effectively excluding another 440,000 taxpayers from the tax net. Taking that into consideration, is the comparison still valid? Cdre Teo Chee Hean: The restoration of medical benefits to their previous condition is only with regard to pre-existing illnesses which the civil servant already has, and not to all the illnesses which he may encounter in the future.”
“I hope that the Ministry of Finance could consider the following suggestions: firstly, interest earned from fixed deposits of clan associations be allowed to enjoy tax concession, so long as it is used for scholarships and bursaries for the children of their members and welfare funds for the poor. Secondly, as long as the premises of clan associations are owner-occupied and not sub-let to others, they should be entitled to property tax rebates. However, when these properties are sold for profit, then the Government may recover the tax rebates previously granted to the association to offset the higher property tax which they may have to pay upon revaluation of the premises.”
“Everyone responsible for the running of these associations is aware that the Government has given a lot of moral support to these associations. But they are puzzled as to why these associations which are non-profit making organisations cannot enjoy tax rebates on interest earned from their fixed deposits, despite the fact that these organisations are not commercial organisations and the funds raised are through donations from the public. Furthermore, with the recent revaluation of the properties they own, these clan associations have to pay higher property tax. The premises of these associations are actually used for cultural and social activities and not for profit. So with higher property tax, these associations will have to bear a heavier financial burden, much to their dismay. I understand that the Ministry of Finance had turned down their appeal because their activities are confined to members only. Therefore, the Government cannot relax its rules. The problem is that these clan associations are formed on the basis of blood relationship, of common ancestral home and surnames, for mutual-aid among members of the same community. As such, the membership cannot be open freely to everyone. Otherwise, the association will lose its unique identity. For example, a Teochew cannot become a member of the Singapore Hokkien Huay Kuan. And the Chan Association would not allow those who carry other surnames to be admitted as its members. It has been the established practice of these associations to allow non-members to participate in their activities. For example, my brother-in-law who is a Teochew has been regularly sending his children to the Hokkien Huay Kuan for art classes every Sunday.”
“Sir, the implementation of GST has resulted in a great deal of work to be carried out by all the companies in Singapore, and a great deal of work remains to be done. In line with the national objective to use information technology, I think we should, as far as possible, automate the processes. For example, some companies would like to enquire which companies have been registered for GST and which have not. The record format of the computer files concerned should be given to the companies or banks concerned so that easy access for downloading can be carried out without duplicating the process of updating records in all these companies. I hope IRAS will consider sympathetically such request and make such information available earlier. My second point, as a matter of interest, is on the long-term distribution of direct taxation and indirect taxation in Singapore. What is our long-term goal? For example, in Hong Kong, in the recent budget announced by the Financial Secretary on 2nd March, the distribution is something like 48/52. There are some comments by management consultants that perhaps in the long-run, Hong Kong should also have consumption tax in order to cater for fluctuations in the economic performance. What is our long-term goal in terms of direct and indirect taxation? And will such information be made available to us? Mr Peh Chin Hua (Jalan Besar GRC)( In Mandarin): Sir, I wish to speak on the subject of income tax and property tax of clan associations. The main activities of clan associations in Singapore are to promote Chinese culture, language and traditional values. They also play an important role in helping the less fortunate people in our society.”
“What defeated the Marxist prognostication was the rising productivity of the working class with the use of better tools and technologies. The working class has become the middle class in income and status. Productivity gains per se are not the only benefits. The self-respect and pride of the workers will be raised. Mr Speaker, Sir, whilst we criticise rightly the West for its flawed welfare policies, we should be mindful of the fact that there is a great deal we can learn from certain aspects of western society. In Melbourne, for example, I understand that the garbage collector only comes by twice a week. Bottles are collected only once a week. But each household would carefully arrange its garbage bags neatly. Bottles would be collected and taken out once a week. They do not need hefty fines to keep their suburbs clean and tidy. Yet in Singapore it is sad to say that it is not uncommon to see old furniture and boxes left next to the lifts of HDB flats despite many reminders to residents to bring them to the ground floor for disposal. Littering still occurs. Road bullies have to be dealt with severely to protect innocent motorists. Mr Speaker, Sir, although we have achieved remarkable economic growth in the last 30 years, we have some way to go before we can be considered a gracious people, a society of distinction. It is the social responsibility of all Singaporeans and not just the Ministry of Community Development to encourage good behaviour and civic-mindedness amongst all Singaporeans. 3.08 pm”
“Whilst most young Singaporeans are able to speak some English and their mother tongue, our friends across the Causeway, the Malaysians, in some cases, are effectively trilingual - English, Malay and Mandarin. At present, some of our secondary pupils take German and French as a third language. I hope the Minister for Education will encourage our pupils to take up Malay or perhaps the regional languages like Vietnamese and Thai, or perhaps a higher level of Chinese language as well, for this will help Singapore as we expand trade and investment links in the region. A knowledge of the languages and cultures of these countries will be a tremendous advantage as we venture abroad. The President stressed the need for Singapore to master new technologies and promote key industries in the manufacturing sector. As we develop as a knowledge and services centre, the productivity of our knowledge and services workers must be raised. In manufacturing, working smarter is one key to increased productivity. But in knowledge and services work, it is the key. The greatest productivity gains come from not only re-defining the tasks but also from eliminating unnecessary tasks. Call it what you will, scientific management, system engineering, business process re-engineering or office automation, working smarter has been behind the productivity explosion. Are our information and services workers spending too much time on unnecessary tasks? Can some of these be eliminated? Re-engineers start from the future and work backward, unconstrained by the existing methods and boundaries. The aim is to achieve major gains in cost, service or time. When Marx predicted the inevitability of the proletariat revolution, it seemed reasonable to many people.”
“Mr Speaker, Sir, I rise to support the motion moved by Mr Loh Meng See thanking the President for his Address. In his Speech, the President pointed out that in economics our major thrust was to venture abroad and develop trade and investment links with neighbouring countries. He referred to the fact that we were familiar with both East and West, with the region as well as the developed countries. This is indeed a strength we should nurture for maximum advantage. At the same time, it is true that a number of Singaporeans are more conversant with the ideas and institutions of the West than our own cultural heritage. Their perception of Asian traditions may have been coloured by the Victorian, Euro-centric view that China and India were down-and-out civilisations, cowering in servitude to the ascendant West. When Confucianism was taught in the schools a few years ago, there were serious reservations about its relevance. Perhaps they saw Confucianism as a straitlaced and blinkered rejection of modernity instead of a means to reconcile tradition and change and, more importantly, as a source of strength which contributed to the dynamism and vitality of the economies of East Asia. A number of Singaporeans until recently had questioned the need to give learning of our mother tongues due emphasis. It was only after China opened up its economy that Singaporeans realised that vast opportunities existed in that country. For the businessmen and officials who have a solid foundation in Mandarin, they can better understand the nuances and subtle meanings of the words and phrases used by their counterparts in China. Even the best interpreter can only attempt a feeble translation of the expression into English.”
“Would the Management Services Department be incorporating the ABC techniques to fine-tune the management accounting system? Sir, I am happy to note that greater funding for the arts, sports, cultural and recreational activities will be available. The quality of life in Singapore should be enriched by a more vibrant cultural scene, hopefully, of the right kind. I was surprised to read in the newspapers recently, Sir, that we had some local drama performances where the actor or the performing artiste urinated in front of the audience and drank his own urine. I fail to see the artistic merit, the talent or the sensibility in this performance, and hope that Government funds were not involved in this production. I would urge the artistes themselves to exercise restraint and not to indulge in similar bizarre acts. Traditional cultural values and activities should be promoted for nothing is more dehumanising than to be impoverished beneath the veneer of American pop culture. The American economist, George Gilder, said: `The most dangerous threat to the US economy and society is the breakdown of our cultural institutions - the family, religion, education and the arts - that preserve and transmit civilisation to new generations. If the social fabric continues to fray, we will lose not only our technological prowess and economic competitiveness but also the quality of life itself.' Let us pause and reflect if this observation holds true in our context. The great unfinished task ahead of us is to achieve excellence in both economic competition and cultural pursuits.”
“The Minister for Finance rightly pointed out in a TV interview after the Budget Speech that we had to introduce these tax changes because the world was changing. There is tremendous competition for capital investments, and tax reforms are necessary. No doubt, they are necessary but not sufficient. We need to enhance the quality of our workforce, upgrade the infrastructure and improve our knowledge of the culture and business environment of the high-growth Asia-Pacific countries. Sir, a common concern frequently voiced on the GST is the tendency of some merchants to use it as an excuse to raise prices. The Government together with CASE and the community leaders, the Shopkeepers' Associations, could work together and see how such acts could be discouraged. NTUC Fairprice and other companies will play a useful role in this regard. Sir, on the Management Accounting Systems adopted in the Government, it is noteworthy that these computer-based systems have been installed in Government Ministries and completed ahead of schedule. By April, the systems will be in place in all Ministries and statutory boards are being encouraged to adopt them. The objective of using these systems to deliver high-quality public service at lower cost is, indeed, commendable. I would like to know if the concept of Activity-Based Costing (ABC) has been included in the current management accounting systems. ABC is a relatively new approach which, whilst keeping an eye on costs, focuses on the activities that add value to customer satisfaction in a direct way. Rather than concentrate on after-the-fact reports, the emphasis is on setting proactive improvement targets, planning optimum work procedures and preventing variances from occurring in the future.”
“Do you think to sit here till doomsday come?' Despite its excellent track record and considerable strengths, IBM was not quick enough to adapt to the fundamental changes occurring in the computer industry. A weakened demand for mainframes, another term for it, downsizing, moving processing from large computer mainframes to smaller PCs and networks, the explosion of power of PCs, the user demand for more friendly interfaces and open architecture (which means that you could buy equipment and software from a number of vendors instead of just one proprietary vendor), all these require decisive changes which the multi-layered bureaucracy of IBM seemed unable to make in time. Contrary to what my good friend, Dr Ow Chin Hock, said yesterday, size is no longer the most important consideration. Rather, speed in anticipating new trends and understanding their implications is a critical success factor. Intel, the semiconductor company, has become enormously successful by investing for the long term and adapting to changing markets with tremendous speed. Its Chairman, Andy Grove, a refugee from Hungary in 1956, who left the country with $20 in his pocket and, today, the Chairman of Intel, said: 'If we hadn't kept moving the technology rapidly from the 8088 chip in the original PC with 30,000 transistors to the 486 [which is the latest PC] with 1.2 million transistors, to the forthcoming Pentium with over 3 million - we wouldn't have an advantage ... and we are already beginning to invest hundreds of millions of dollars in the generations to follow. The pace of work these days isn't easy to live with, but welcome to the nineties.' This is a fact of life. Rapid and even exhausting changes.”
“In 1982, Tom Peters' book "In Search of Excellence" became a best-seller. All the business administration schools in the US, Europe and elsewhere adopted it as part of their compulsory reading list. Hundreds of seminars were organised to analyze the reasons for the excellent track records of certain companies. And we know that among the companies highly commended by Tom Peters was Wang Laboratories, which unfortunately filed for Chapter 11 Bankruptcy Protection. In fact, Tom Peters himself, in December 1992, admitted that he had badly underestimated the importance of adaptability because about 30% of the companies that he had highly commended went into difficulties of varying degrees within a few years after 1982. Even IBM, for three decades, the most admired and even feared computer company, is going through a rough patch. Last year, it lost US$4.8 billion. With several Nobel Prize winners in its payroll and a capital expenditure and R&D budget amounting to US$10 billion a year, IBM could not reverse a steadily declining market share. It is currently less than 20% of the total computer revenue in the world, but used to be more than 30-35%. Its total stock value of US$106 billion in 1987 plunged to below US$30 billion in 1992. Microsoft, whose Chairman, Bill Gates, dropped out from Harvard University is now the richest man in US. With a much smaller staff of about 12,000, compared with a high employment of IBM's 400,000, Microsoft's stock value would, by now, have matched or even surpassed IBM in total value. No wonder an angry IBM shareholder, in December 1992, sent a message to Mr John Akers, the then Chairman of IBM, citing Oliver Cromwell, in 1652, when he tried to dissolve the long Parliament and I quote: `Begone, you have sat long enough.”
“Mr Speaker, Sir, the Minister's Budget Statement this year gave Singaporeans both a clear and comprehensive overview of the underlying philosophy of this Government and details of the fiscal measures proposed for the next financial year. Investing in the future to secure the long-term success of the economy and sustain the quality of life in Singapore, this fundamental philosophy has been instrumental for our success. As is well known, the long run consists of a series of short runs. Hence the range of tax changes, for example, corporate and income tax reduction and the GST have been proposed in line with the objective of making Singapore more competitive and easing the direct tax burden of the economically active population. An effective government must look ahead, anticipating probable problems and devising plans of action to counter them. But this is easier said than done. Often, social, economic, political and even technological changes overwhelm the best of plans. Sociologists, economists, political scientists and social anthropologists have their favourite theories on, for example, how Japan managed to transform a ruined economy after the Second World War into the most successful modern economy, the leader in many industries, within a generation. Equally, they are more than willing to speculate on the root causes of Japan's current recession and problems of corruption and malpractice in the financial markets. But there is no sign of agreement on the fundamental reason for the relative performance of different economies. Against the backdrop of volatile changes, the need for adaptability and flexibility is crucial. Even in the business sector, the ability to respond speedily to structural and technological changes cannot be over-emphasised.”
“In view of the fact that a few Singaporeans are still missing, is the Minister aware of the actions being taken by the Malaysian Government in further trying to identify the whereabouts of these people?”
“Sir, on the sale of the shops to sitting tenants, I asked a question during the debate on the National Development Ministry. Unfortunately, there was no time for the Minister of State to answer. I would like to bring it up again, and this is in regard to the conditions under which the proceeds or compensation money from fire insurance will in fact go to HDB, even though the premium had been paid by the purchaser in the first place. So effectively there is no protection for the purchaser of the shop. I am wondering if the Ministry has plans to modify the proposed memorandum of lease for these cases. Secondly, at the present moment, as it is worded, there is a set of wide ranging conditions under which HDB can re-enter or re-possess the premises. These conditions have been loosely or generally defined, and I believe they are not in the interest of the purchaser. I am wondering whether the Ministry would look into this area and suitably improve the wording to protect and safeguard the interest of the purchaser.”
“Thank you. Sir, in an increasingly competitive society, certain behaviour of a small number of Singaporeans gives cause for concern, for example, the excessive aggression of some drivers who resort to physical violence over minor traffic accidents. And there are cases of press reports of child abuse or maid abuse. In fact, this topic was also brought up in the meeting at the ASEAN Inter-Parliamentary Organisation (AIPO) Conference last year where our friends from some ASEAN countries referred to such press reports. We know that such cases are few and far between and yet the fact that these problems are mentioned is cause for concern. In our pursuit of material success, sometimes we may forget that cooperation with and consideration for other people could well be more important for collective well-being than individual flair and flamboyance. From our discussions with the Resource Panel for GPC (Health), it seems that there is a shortage of psychiatrists in both the public and private sectors. I would like to know if the Ministry has plans to increase the number of psychiatrists and psychologists, and what plans there are to improve the career development and technical expertise of the existing staff. I believe this is an important area, and I wish to seek the Minister's views on how to safeguard the mental health of our population.”
“The terms and conditions of service, the training opportunities and career development should be made more attractive to ensure that the targets of 200 physiotherapists and 150 occupational therapists by year 2000 will be met. Sir, may I move on to the next topic on Psychiatrists?”
“Sir, today there is a mistaken belief on the part of some Singaporeans that Class C patients are not entitled to specialist treatment even if their conditions require it. This misconception could have arisen from the fact that only Class A and B1 patients could choose particular consultants and that these specialists get to retain a portion of the fees paid by the patients. I would like to ask the Minister whether there are plans to fine tune and perhaps modify the system to remove any inherent bias, whether real or perceived, in favour of the more well-to-do users of the health care service. Sir, in our drive towards a medical centre of excellence, it is important that the number of specialists providing support services is adequate. At present, apparently, there are significant shortfalls, for example, in the area of pathology, radiology and health therapy. I was surprised to read in the main report of the Review Committee on National Health Policies that even Hong Kong has a much higher health therapist to population ratio than Singapore. Hong Kong has a ratio of 100 physiotherapists and 65 occupational therapists per million population as against Singapore's corresponding ratio of only 20 physiotherapists and 8 occupational therapists per million population. Sir, in this day and age, it is important that we continue to explore different means of addressing this problem of shortfalls in these significant disciplines. We also read that the Ministry plans to set up a local School of Health Sciences in the fourth polytechnic. In addition, I think it would be necessary for the Ministry to ascertain the reasons for the small number of Singaporeans who have decided to take up a career in these disciplines.”
“Sir, since we are running out of time, I would just make one point. As a percentage of GDP, Government health subsidy has remained at 0.7% for the last five years, although in absolute terms the subsidy has increased to $420 million in 1990. It will be useful to know, as a percentage of GDP, what is the target Government health subsidy in the long run. We are, of course, fully supportive of the Government's prudent management of financial resources, as there are always numerous and competing demands for resources. But 0.7% does not appear to be an alarming percentage.”
“Sir, the proposed scheme to sell shophouses to sitting tenants is an attractive proposition. It allows the tenants a chance to decide whether they want to buy over the shophouse, rent it to another operator and make long-term plans once the uncertainty over the shop rentals has been removed. One of the key factors involved is the selling price and we have been assured by the Minister that the selling price in each case would depend on the characteristics of the shophouse, including location and the amount of business that the shop is likely to attract. I would like to ask the authorities concerned whether they are prepared to allow a second opinion in setting the price. In other words, whether a panel of valuers or assessors will be allowed to independently determine what the selling price in each case should be. This will help remove some doubts on the basis of computation of the selling price. After all, we would like to assist as many of the tenants as possible to be able to afford the selling price and to continue to operate on the premises. 12.45 pm The second question I would like to ask is whether the proposed memorandum of lease will contain some of the conditions in the existing memorandum, in particular there is a clause which says that in the case of a fire, the compensation money will go to the HDB and not to the shophouse operator. Would the same condition continue under the new memorandum of lease?”
“Could I seek a point of clarification from the Minister of State? It is on the question of the different classes of wards for the community hospital. The concern is that if we allow those who can afford Class A or Class B to go into the single class ward, then you will deprive those who are going into Class C. If the space available for Class A and B is, in fact, used for the single class ward, and based on the assumption that the space per patient in Class A and B wards is bigger than that in the single class ward, would it not be true that more patients could be accommodated if there is only one class in the community hospital?”
“For example, PUB reduces the deposits required for accounts using GIRO payment. (5) Installation of automatic telephone systems for enquiries and complaints. Certain information can be given by automated phone system, for example, CPF and Telecom have already done this, but other statutory boards can follow suit. (6) Finally, a more proactive approach. In recent years, the private sector in the United States of America has taken a more proactive approach in monitoring customer satisfaction, for example, AT&T uses a system called "Telsam" to conduct telephone sampling and measure customer satisfaction. In Singapore, the CPF Board has public contact improve- ment programme to obtain feedback and gauge public perception. It is a good idea, but form filling by the public is required and this may not result in comprehensive or representative information. Another area of concern is the time taken for the Government departments to respond to applications for approval. For example, planning approval for renovations to residential properties takes many months. It may take the Government department more than a month to answer relatively straightforward enquiries. Even then, the reply is usually brief and uninformative. I would like to compliment the leadership for setting up this vitally important function. An alert and responsive civil service providing quality service consistently could do wonders to forging a closer link between the Government and the people. We need a more personalised approach and a less bureaucratic response.”
“I am glad to note that much improvement has been made in this direction. For example, the Immigration Department and Work Permit Department have introduced electronic displays and comfortable chairs for the public. But the need to shorten waiting time remains. It appears that the public may have to wait for several hours in certain departments, such as the Immigration Department, when they have to obtain an extension of social visit pass or in the Work Permit Department when they are trying to apply for approval to employ a foreign maid. I would like to suggest that the counter service be improved further as follows: (1) Further automate counter service. It appears that one of the factors for long delays seems to be the need to trace paper files. Paper files are bulky and need manual handling and storage space. They have to be distributed or despatched from section to section. With optical disk, electronic files can expedite information retrieval. Counter procedures may be redesigned to shorten the turn-around time for each transaction. (2) Selection and training of counter staff. Counter staff must be thoroughly conversant with the policy of the department. They should be cheerful and courteous, which is not easy to maintain at all times. I suggest that the civil service learn from SIA in the area of selection of counter staff, training and performance measurements because SIA counter staff has consistently maintained excellent standards. (3) Incentive. Additional allowances and other fringe benefits should be given to counter staff as their duties are more demanding and require tact and patience. (4) Further promotion of the GIRO scheme, because the GIRO scheme will reduce counter congestion.”
“Sir, throughout his life, a Singaporean interacts with many Government departments and statutory boards. At birth, his particulars and those of his parents are entered into the databases of the Ministries of Health and Home Affairs. When he goes to school the Ministry of Education records the particulars of his family. When he reports for National Service, Mindef. On starting work, he interacts with CPF and the Inland Revenue. When he purchases a flat, HDB, PUB, Telecom, Town Councils keep his records in their files. Imagine that he has to change his address or when he gets married, how many of these departments and statutory boards he has to inform to update his particulars. In fact, with on-line databases and networking, where all the databases are interconnected, it should be quite simple for this to be done at one place, for example, the Ministry of Home Affairs, and the rest will be updated electronically without him having to visit all the statutory boards and Government departments. The potential for greater efficiency is therefore tremendous. Sir, there is a need to monitor the quality of service at all times because the attempts to improve quality must be made on an on-going basis and by all levels of the civil service. Counter service is one of the most crucial because it is where our people come into direct contact with the Government. The impressions of counter service, favourable or otherwise, will last for a long time. A careless remark, an unsmiling face of a counter clerk, can create the impression that the Government is rigid and unwilling to listen. An unpleasant experience over a relatively minor incident can nevertheless cause resentment against the Government as a whole. Long queues in the Government departments used to be common.”