Lawrence Wong
Singapore
“Sir, we will provide more information. I see the value of getting Ministries to put out more information, to share more about how their resources are being used and what outcomes they have achieved.”
“Sir, I agree fully with Mr Azhar that human capacity, human capital is critical. In fact, I would say the long-term potential of Singapore, how far we go really depends on us being able to maximise our human potential. That is key and that is why we have long invested in education. And it is not just about the investments.”
“Sir, we have been maintaining that commitment of 1% for some time now. I do not think it is about saying that we just have to do more and spend more. As many have highlighted, we want to ensure good outcomes from our R&D spending as well. So, we will continue if the outcomes are good.”
“This has never been the case. Temasek, when it started, was always very clear about its mandate from the very beginning – commercial, not doing national service, focused on commercial outcomes.”
“Sir, the MOF economists when they look at fiscal projections use Government's forecast of the economy, which is also published. We would typically use the mid-point of the range and then, of course, because these are in nominal terms, you have to factor for that. And the projections are done on those basis.”
“Sir, I was relieved that Mr Loh said he only has one question, but he asked the most difficult question. To answer the question, we will continue to monitor cost of living across all segments of society.”
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“Currently, all flat owners with an outstanding housing loan from HDB are required to take up a basic fire insurance policy under the HDB Fire Insurance Scheme. The HDB fire insurance policy provides basic coverage for the reinstatement cost of the building structures and fixtures, in the event of a fire. It does not cover renovation or third-party liability, in order to keep the premium low and affordable. This is in line with the market practice for private properties where the bank is the mortgagee. However, flat owners who wish to take up additional insurance cover for third-party liability have the flexibility to do so with an insurer of their choice.”
“This includes the existing MRT station and the upcoming integrated transport hub in Jurong East, as well as the new stations being planned for the Jurong Region Line and Cross Island Line. We will also plan ahead for infrastructure to accommodate new forms of transport, such as autonomous vehicles. URA will be launching a Request for Proposal today, 11 July 2016, to invite experts to draw up the concept plans for the area. We will also be engaging the public, especially residents in Jurong East and the neighbouring estates, to gather feedback and suggestions.”
“The siting of the High Speed Rail (HSR) terminus in Jurong East dovetails with the Government's vision to develop Jurong Lake District as a second Central Page: 76 Business District and as a new gateway to Singapore. The area around the planned HSR site is more than 100 hectares in size. I chair the Jurong Lake District Steering Committee to oversee the development of this new area and we have discussed several broad themes in the development plans. First, we should take advantage of its proximity to the Jurong Lake Gardens, which is itself undergoing a major upgrade, to make this a sustainable district distinguished by beautiful greenery and water. Beyond the business and commercial provisions, the area will also be an attractive leisure destination, anchored by the revamped Jurong Lake Gardens and the new Science Centre. Second, the area should be well-integrated with the Jurong Gateway, which is already shaping up well as a vibrant precinct, with a mix of office, retail, residential and other complementary uses. The developments in Jurong Gateway are presently connected by pedestrian links to one another and also to the Jurong East MRT station. These linkages will be extended seamlessly to the HSR site, which is located just south of the Jurong Gateway. Third, there needs to be an extensive transport network to ensure that residents and visitors can travel in and out of the Jurong East region smoothly. We are mindful of the existing traffic congestion issues in the area and the Government agencies are studying ways to improve the traffic flows. In particular, we will provide for convenient access between the HSR terminus and the nearby MRT stations.”
“Finally, Er Dr Lee Bee Wah and Mr Saktiandi Supaat also asked about publication and whether we should go beyond the publication of the Gazette to a broader statement to inform the public and I agree that we should do so. It is precisely for accountability and transparency that we want to make sure that the publication is made not just in a Gazette but to ensure that members of the public are informed of what we are doing and there can be a robust debate to Parliament, if need be. Finally, Mr Saktiandi Supaat asked how much advance notice the IMF needs to repay Singapore's loans to the IMF in the event that we face a balance of payment crisis. Under MAS' existing agreement with the IMF, the IMF is obliged to immediately and fully repay the loan upon request. So, it is obliged to repay immediately and fully. In the event that such a scenario arises, where we have a balance of payments need, that is the obligation of the IMF to repay immediately and fully. The IMF has set aside more than US$120 billion, as a buffer, to ensure its ability to repay creditors early, if and when such an emergency emerges. Madam, I believe I have addressed queries from the Members. I thank Members once again for their interest and for their support of the Bill. [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House. (proc text)] [(proc text) The House immediately resolved itself into a Committee on the Bill. – [Mr Lawrence Wong]. (proc text)] [(proc text) Bill considered in Committee; reported without amendment; read a Third time and passed. (proc text)] Page: 62”
“I want to emphasise that the MAS considers each IMF request for financial assistance carefully and exercises a high degree of prudence on whether or not to contribute. It may not be so practical to set the limit, given that there will be times of crisis when we think we should do our part to contribute to IMF resourcing initiatives. And, indeed, this was the case in 2012, when we provided a contingent loan to the IMF at the time of heightened global risk. In fact, I think I should also elaborate that, as I have said earlier in my opening speech, it is in Singapore's interest to do our part to contribute to a stable global financial and economic environment because of our role as a financial hub. So, it is, in fact, not just an obligation but it is also in our interest to make a Page: 61 contribution to ensure a stable economic and financial environment which we, in turn, will benefit from. I should also explain that each member of the IMF is assigned a quota based broadly on its relative size in the world economy, including GDP, openness of its economy and its international reserves. This quota determines a member's voting power and it is also used as a benchmark for the IMF to apportion potential financial assistance to the IMF. So, this is already in place. For instance, the IMF distributed gold sale proceeds to members in proportion to their quotas to be re-contributed to the PRGT, as I have explained earlier. Singapore's current quota share is about 0.82% of total IMF quotas and this remains a useful benchmark for deriving the financial assistance we provide to the IMF on a case-by-case basis.”
“As the IMF enjoys preferred creditor status, loans granted by the IMF must be repaid ahead of all other creditors. The IMF, with the advantage it has from its preferred creditor status and sizeable reserves that it can use to protect its members, has always repaid its own creditors. Mr Murali also raised the question about what forms of other financial assistance MAS would make under the Bill and whether this includes the giving of guarantees and if the Bill should specify the types of financial assistance that can be given. Madam, the amendments in the Bill will allow MAS to make grants to the IMF and consolidate existing powers to provide loans and interest-free deposits to the IMF. We expect these to be the main forms of assistance that MAS would give to the IMF in the foreseeable future. We have not been approached to give a guarantee to the IMF nor do we expect to do so. I think the Member highlighted Article 144 of the Constitution stating that "no guarantee or loan should be given or raised by the Government unless the President concurs". Article 144 does not apply to loans raised or guarantees given by a person other than the Government. And MAS is a separate vehicle from the Government. As such, Article 144 of the Constitution will not be engaged. Nevertheless, I should reiterate that MAS has not had to assist the IMF in the past by giving a guarantee; we have never had to do that and we do not expect to do so. Mr Saktiandi Supaat asked if a limit should be set over the total financial assistance that can be provided to the IMF and whether there should be some form of methodology to derive this total amount that is stipulated in our various agreements with the IMF.”
“Page: 60 Next, Mr Murali also asked if Article 22B(6) and (7) of the Constitution – basically, the Constitutional safeguards on the reserves – would apply to any of the financial assistance to the IMF. I would like to clarify that Article 22B(6) of the Constitution refers to transactions which are likely to draw on the reserves accumulated by a Statutory Board prior to the current term of office of the Government. And, indeed, as with any such proposed transaction, including any financial assistance to the IMF, the President would be informed if MAS has to draw on past reserves. If Article 22B(6) of the Constitution is engaged because a grant is likely to draw on past reserves, then MAS will inform the President before going to Parliament to obtain a resolution. But in this context, I would like to reassure Members that we do not expect any financial assistance to the IMF to require funding from past reserves. So, we do not expect any financial assistance to IMF to have to be funded from past reserves as MAS is most unlikely to participate in any scheme should this arise. Mr Murali also asked about the possibility that loans with the IMF may not be repaid. I would like to clarify, first of all, that section 6A of the Bill does not, in fact, allow Singapore to provide financial assistance directly to a country borrowing from the IMF. When we provide a loan in support of an IMF programme for the benefit of one or more countries, we are providing the loan to the IMF and entering into an agreement with the IMF. We are taking on the credit risk of the IMF rather than the direct credit risk of the countries that the IMF lends to. This is similar to the low risk that is associated with the MAS' subscriptions to the capital of the IMF.”
“As I have said earlier, any future grant will also similarly be subject to Parliament's approval. So, that is on the first point about the transaction mechanism, and whether it has an impact on our official foreign reserves. Second, Mr Liang also asked whether PRGT will be self-sustaining and if we expect more requests from member countries by IMF. Self-sustainability is, indeed, one of the key considerations for the PRGT fundraising initiatives. The pledges made by IMF members so far have increased the PRGT's annual lending capacity from US$1 billion to US$1.75 billion. The IMF estimates that these additional resources will be able to sustain the PRGT lending for two decades. So, that is an estimate that the IMF has already made to ensure that the PRGT is on a sound, sustainable financial footing. Next, Mr Liang and Mr Murali asked about the rationale behind section 6A(2b) of the Bill which requires that MAS be satisfied that at least one other government has provided or intends to provide financial assistance in response to the IMF request, before MAS can agree to such requests. Madam, I would like to clarify that this section was incorporated to preclude Singapore from making grants to the IMF purely on our own. Thus, the key phrase is "at least one other government" but, in practice, I would like to assure Members that MAS will carefully assess any IMF requests for financial assistance on a case-by-case basis and we will participate only where it is in our interest to do so and only as part of a multilateral effort. And as Mr Liang highlighted, IMF has acted with about 80% of IMF members, which is more than 140 countries, pledging grants with the PRGT from members' shares of the IMF's gold sales proceeds.”
“Mdm Speaker, I thank the Members, Mr Liang Eng Hwa, Mr Saktiandi Supaat, Er Dr Lee Bee Wah, Mr Murali Pillai and Mr Louis Ng, all of whom have spoken and given Page: 59 their support for the Bill. While the Members have highlighted the continued relevance of the IMF in maintaining a stable global financial and economic environment and the importance for Singapore to do our part in the IMF's multilateral efforts to assist low-income countries, they have also raised a number of issues and I will address them in turn. First, Mr Liang asked if the grant to the IMF's PRGT will constitute an expense on our official foreign reserves. Madam, I would like to clarify that the gold holdings in the IMF belong to the IMF. It is not Singapore's gold or members' gold. It is the IMF's gold holdings. And when the IMF sold its gold to raise funds for the PRGT, the proceeds arising from the gold sales were distributed to members in proportion to their quota shares, provided members agreed to contribute the proceeds as grants to the PRGT. So, the proceeds from the gold sales in 2012 and 2013, due to MAS, were recorded as income in the IMF's books temporarily and would be exactly offset when MAS makes the grant to PRGT. The net effect of this is that this entire transaction – income and outflow of grants – will not affect our overall level of official foreign reserves. As countries around the world face increased risks of economic and financial disruptions arising from a broad range of factors, the IMF will review its financial assistance toolkit from time to time to see how it can assist countries. Where new initiatives are proposed, we will consider contributing to such initiatives where relevant and as part of a multi-lateral effort.”
“Currently, agreements to provide loans to the IMF include a safeguard that obliges the IMF to immediately repay the loan in the event that Singapore has a balance of payments need. The Bill will introduce a new safeguard for loans and other financial assistance provided to the IMF. Such agreements must include provisions for MAS to require early repayment in the event of suspension, or premature termination, of the IMF programme for which the assistance was provided. Mdm Speaker, it is in Singapore's interest to continue to support the IMF as a global multilateral institution and its efforts to maintain a stable global financial system. The introduction of the Bretton Woods Agreements (Amendment) Bill will enable Singapore to support the IMF initiative to help low-income countries in times of crisis. Madam, I beg to move. [(proc text) Question proposed. (proc text)] 4.30 pm”
“The amendments will also consolidate MAS' existing powers to provide financial assistance to the IMF, including loans and interest-free deposits, into this single Act. The second key provision is about setting out strong safeguards when providing financial assistance to the IMF. The Bill will add the following safeguards that apply when MAS provides any loans, grants or other financial assistance to the IMF. First, any financial assistance can only be provided pursuant to a specific request from the IMF. In addition, MAS will provide financial assistance only as part of collective action among IMF members. Second, in the interest of transparency, the Minister-in-charge of MAS must publish in the Gazette a statement containing key information about the financial assistance. This statement will contain a description of the nature and terms of the agreement to lend, give grants or other financial assistance, and the maximum amount that MAS has agreed to lend or give to the IMF. While MAS has in the past issued media statements and provided answers in Parliament on such assistance, such as in the case of MAS' contingent loan to the IMF in 2012, a Gazette notice, as required in this Bill, will provide further transparency. Page: 52 Third, specifically in the case of a grant to be given by MAS to the IMF, the Bill provides that Parliament's approval by specific resolution is required. This is because grants are treated as expenses. This is unlike loans to IMF which are to be repaid at maturity and are recorded as assets in MAS' balance sheet. Loans to the IMF remain part of Singapore's Official Foreign Reserves, which are managed by MAS as the central bank. Next, let me touch on some of the provisions for early repayment.”
“Mdm Speaker, I beg to move, "That the Bill be now read a Second time." Madam, in July 2009, the International Monetary Fund (IMF) agreed to boost its capacity to lend to low-income countries impacted by the global financial crisis, through a new Poverty Reduction and Growth Trust (PRGT). The PRGT is the IMF's concessional lending vehicle, which provides lending facilities tailored to the diverse needs of low-income countries. To fund the PRGT, IMF members agreed in 2012 to contribute at least 90% of distributed profits from the sales of gold holdings at the IMF. As a highly open economy and international financial centre, Singapore has a strong stake in preserving a healthy global economic environment. This includes doing our part in the IMF's efforts to assist low-income countries. The PRGT will help support developing countries in Asia, such as Cambodia, Lao PDR, Myanmar and Vietnam, whom we share growing economic ties with. The amendments to the Bretton Woods Agreements Act will allow MAS to participate in the PRGT through a US$20 million grant paid from Singapore's share of the IMF's gold sales profit. The grant is subject to Parliament's approval. Any future grant to the IMF will also require Parliament's approval. Mdm Speaker, I will now go through the main amendments of the Bill. Firstly, key provisions of setting out powers to provide financial assistance to the IMF, including loans, grants and interest-free deposits. MAS currently has powers to provide loans and interest-free deposits to the IMF under the MAS Act, but not grants. So, the Bill will empower MAS to make grants to the IMF, but only with Parliament's approval.”
“Madam, as I have mentioned earlier, MAS does do audits, checks and penetration tests as well across the board in all our financial networks, including on FAST. So, I would like to assure the Member that these audits and tests are being done and we are always making sure that we have a resilient system that will be able to withstand cyberattacks.”
“Madam, there are, indeed, plans to do so and this is an area that, in fact, MCI and the CSA have been coordinating because the requirements cut across different sectors, not just in the finance sector but across all industries. The reality is that cybersecurity will become an emerging threat which all companies and all industries including in the public sector, will have Page: 36 to deal with. There will be more requirements for skilled people in this area and so our CSA is, indeed, looking at our manpower needs for the future, and our educational institutions, including our tertiary institutions, are stepping up provisions in this area as well.”
“Since its inception, the SCCS has championed a number of initiatives to raise industry standards, for example, in the area of penetration testing. They have also commenced regular sector-level cyber exercises amongst its members to test the FIs' responses and operating procedures against various cyber threat scenarios. The group also meets regularly to exchange insights and intelligence on cyber threats. At the national level, MAS and major FIs work closely with the Cyber Security Agency (CSA) to support our national initiatives on cybersecurity and critical information infrastructure protection. Madam, cyber threats are persistent and we must expect threat actors to continue to enhance their tools and techniques. So, MAS will continue to work with our FIs and industry partners to monitor developments in cyberspace and to adapt defences, as appropriate, to stay cyber-resilient.”
“Madam, I am taking this question on behalf of the Deputy Prime Minister and Chairman of the Monetary Authority of Singapore (MAS). The recent incident at the Bangladesh Bank is a timely reminder that cyberattacks can be very costly. MAS and financial institutions (FIs) in Singapore take cybersecurity very seriously and we have been paying close attention to global developments in cyber threats. MAS expects our FIs institutions to build strong and effective capabilities to safeguard the integrity and availability of their critical systems and services and to protect customer and other sensitive information from unauthorised access. This means having in place measures to protect their critical systems, to detect threats and system vulnerabilities in a timely manner and also to recover from cyberattacks swiftly. They must conduct regular security reviews and tests to ascertain the continued effectiveness of these measures. MAS assesses the FIs' cyber resilience through both onsite and offsite supervision. And where there are any gaps or areas of improvement identified, MAS requires the FI to develop a remedial plan of action and will monitor the institution's progress in its implementation. MAS also monitors the prevailing cyber threat landscape and issues targeted advisories to FIs. The FIs themselves have been taking proactive steps to combat cybersecurity risks. In addition to investments at the individual FI level, they are also collaborating on industry initiatives to strengthen the sector's cyber resilience. The Association of Banks in Singapore Standing Committee on Cyber Security (SCCS) was set up in 2013 and has since served as a useful platform for industry collaboration.”
“Madam, I understand the Member's concerns about the competitiveness of our banks and financial institutions. And, indeed, the higher cost will be a cause for concern with regard to competition if our banks were to do it alone whereas other banks elsewhere do not have to comply with these same requirements. But the reality is that these new requirements are imposed across the board. These are new international standards that all financial institutions are complying with. So, it does increase compliance cost but it is being done across the board and is applied on all financial institutions, be it in Singapore or internationally. So, I think this is an increased cost but it is a cost that financial institutions would have to bear in order to be more effective in the global fight against money laundering and against terrorism financing. Page: 35”
“Our regulatory and law enforcement agencies also share information and cooperate closely with their foreign counterparts. We are also making organisational changes so as to enhance MAS' supervisory focus and effectiveness at a time of increasing sophistication of illegal money flows globally. So, MAS will consolidate supervisory responsibilities relating to money laundering and other illicit financing risks in a dedicated department. MAS will also have a new enforcement department that will work closely with the Commercial Affairs Department (CAD) to investigate money laundering and other financial market offences.”
“Madam, I am taking this question on behalf of Deputy Prime Minister Tharman Page: 34 Shanmugaratnam who is also Chairman of the Monetary Authority of Singapore (MAS). As Singapore's financial centre grows in scale and sophistication, we have to be vigilant against the risk of its abuse for illicit financing activities. Indeed, all international financial and business centres face the risk of being used as a conduit for money laundering and terrorist financing activities. Singapore has taken this risk very seriously and we have in recent years significantly enhanced our regime for tackling money laundering and illicit financing risks. Our regime against money laundering comprises four key elements: strict regulations, rigorous supervision, effective enforcement and good cross-border cooperation. Financial institutions are the critical gatekeepers against the flow of illicit funds. So, we require financial institutions to comply with strict anti-money laundering regulations and to have in place robust controls to detect and deter illicit activities. More recent measures taken to strengthen our regime include criminalising the laundering of serious tax offences; enhancing MAS' Notices and Guidelines in line with evolving international standards; and stepping up our inspections of financial institutions. MAS will not hesitate to take firm actions against financial institutions whose anti-money laundering controls are found to be lacking. As Mr Ong has highlighted, MAS decided to withdraw the merchant bank status of BSI Bank for recurrent and serious breaches of anti-money laundering control requirements and MAS has also referred six members of the bank's senior management and staff to the Public Prosecutor.”
“Madam, I agree. That is why BCA has already been beefing up its experts team within BCA. BCA, as the lift authority in Singapore, has already, over the years, been building up a strong technical team and will continue to do so. I have also asked BCA to get advice from an independent panel of experts, who could be local and foreign. So, they will also be setting up an experts panel to provide advisory and technical expertise, in particular. We will be strengthening this area within BCA and, if Town Councils or any lift owners, for that matter, would like to get technical advice, they can approach BCA for it.”
“Madam, I fully agree with the Member's suggestions and I have asked HDB to do exactly that. They will be tightening on their processes of not just procurement but testing and commissioning of lifts, before taking over the lifts from the contractor.”
“I would like to ask: will there be more stringent HDB requirements for inspection, including certification of the parts in the factory to make sure that we do not have the problematic parts in the lift? Otherwise, later on, whatever maintenance we do, the fault will be very difficult to rectify.”
“Madam, I would like to suggest to Members that Town Councils should do the data analytics first and foremost because the TMS data reside with the Town Councils. All Town Councils today – if Members do not already realise this – have access to real-time fault data of every lift in your housing estate. It is a rich database that allows Town Councils to already do data analytics to understand better which are the lifts with higher fault rates and, for those with higher fault rates, to go in, understand the reasons why this is happening and, if need be, take corrective actions, take remedial actions. There can be various reasons. We have found out, for example, in some instances, it is due to the newspaper vendor coming in every morning and jamming the lift doors when they deliver newspapers. So, it may not be because of a mechanical problem. It may be a user issue. But with that kind of data analytics, as the Member has suggested, I think lift owners should take the responsibility to make use of these data and improve the maintenance regime. That applies across the board to all lift owners. Er Dr Lee Bee Wah (Nee Soon): Thank you, Mdm Speaker. I welcome the recent tightening of the maintenance regime for lifts. I would like to ask the Minister this: tightening maintenance is one aspect; the other issue is during the construction and fabrication. Will HDB be more stringent in checking the lifts that are being installed in our new BTO projects? For your information, this Page: 22 morning, I went and tried one new BTO lift which was just handed over recently but it was so noisy, no air, so hot inside and the HDB took over and gave it to the residents to use.”
“Madam, the Competition Commission has already started its investigation into this matter and I do not want to speak on their behalf. I am sure they would be putting up their findings soon. As I have said, the purpose of their investigation is to require OEMs to make available lift spare parts to all third-party contractors. That is the objective. So, they will put up their findings on the lift sector and how they intend to put these in place. On the first point on open standards and procurement so that you have suppliers that would indicate which are the third-party contractors or how their parts can be supplied, I think the main thing is, if there is a contractor who comes in, installs a lift, what we would like to see is that the supplier of that new lift would make available the parts related to the lift to other third-party contractors, or other OEMs for that matter, so that whichever lift contractor the Town Council chooses for maintenance subsequently, the Town Council will not necessarily be held hostage to one contractor only. That is our intent and what we will strive to do in our procurement.”
“On the second point about new lifts and the liquidated damages, I would say, we are aware that, for new lifts, there is generally also a higher breakdown rate or reported fault rate in the first year. And this is across the board, particularly because of teething issues or maybe, sometimes, it is related to residents moving in – renovation contractors and all sorts of things ̶ user habits. So, this tends to be the case. Then, it will stabilise. The lift fault rate tends to stabilise after the first year. And, then, as I have said, with wear and tear, you start to see older lifts having higher fault rates as well. But, first year, it is really a teething issue. So long as it is within the DLP, HDB will work with the lift contractor to make sure that any of these teething issues with your new lifts in your new BTO flats are resolved expediently and as soon as possible. If, indeed, the contractor is the one who is responsible, then this will be taken Page: 21 into account the next time the contractor submits a bid for a future HDB lift contract and HDB will look at its past records and consider it very carefully before awarding it any future tenders. So, on that score, you do not have to worry that you will have a recalcitrant contractor bidding for another future contract. I would say that most contractors that we have dealt with for these new lifts have been very responsive and they have come forward to make sure that whatever the complaints are for the new lifts, their issues are resolved as soon as possible.”
“Madam, I thank the Member for clarifying this point. As far as I am aware from BCA's checks with the industry, there is no such 15-year guideline in place across the board, certainly, for private sector lifts in Singapore or anywhere in the world, for that matter. So, that is from what we have gathered so far. In fact, if you look around the world, too, at lift replacement, it is a wide range. There are lifts in other countries that have been operating for more than 30, 40, 50 years and still continuing to operate. So, the point about the replacement period, it is simply a guideline. It cannot be prescriptive because these are machines and the replacement guide will depend on your usage frequency and standard of maintenance over the years. Obviously, if it is well maintained, it may even go beyond 28 years. But if it is a lift that has not been well maintained in the past, then you may want to replace it even earlier. Or, for that matter, you may want to replace most of the parts before 28 years are up. Replacement, really, has to be done on a case-by-case basis. I do not think we can generalise. Town Councils will, therefore, have to work with their lift contractors, looking at each particular lift, the model, the age, the history of maintenance, and then make a decision consciously whether to do early replacement or maybe to change some of the major parts or to allow the lift to continue with a good maintenance regime. On the earlier point that the Member has suggested on certification, we are going to tighten. As I have said, we are looking at clearer guidelines and training requirements for all lift personnel, including the technicians. We are doing that.”
“Thank you, Madam. Can I just ask the Member in response? I am not aware that there is a private sector benchmark of a 15-year replacement for lifts. It sounds to me to be very, very short and I wonder where the Member got that figure from.”
“Madam, I know the concerns about the availability of manpower and whether we have sufficient people in this sector. I would say, if you take another measure and look at the number of technicians per lift we have and compare that against other jurisdictions. So, we have done some comparisons against Japan, for example. We actually have more technicians per lift, compared to Japan. It is important to ensure that we have enough people, but it is also important to ensure that we have the people with the requisite skills and competencies and who are doing their jobs well. So, as I have mentioned earlier, we are in the process of engaging the industry to understand better their manpower needs for the immediate term. But in the long term, we do want to make sure that we have a good and healthy pipeline of people with the right skills and the right competencies coming into the sector and who are also continually upgrading their skills and keeping pace with new advances in lift technologies and safety.”
“Madam, I think that is a fair question and I recognise the point that Town Councils need the information early to plan ahead. So, we are doing a study right now and we will be informing Town Councils in due course what we intend to do for the safety enhancements and what vintage of lifts. Obviously, it would not make sense for us to spend a lot of money on safety enhancements on a lift that is already going to be due for replacement next year. Because the better thing to do, as Mr Pritam Singh has suggested, is for the Town Councils to replace these very old lifts. So, these safety enhancements would be done, as I had mentioned in my answer earlier, for lifts that are not due for replacement soon. Exactly what age, we will have to study and this will take time to implement as well because we are talking about a huge stock of existing lifts which we will have to do progressively over a few years. But I know that Town Councils need the data and the information to plan and we will strive to provide this information as soon as possible. Assoc Prof Randolph Tan (Nominated Member): Madam, I would like to thank the Minister for his responses so far. The Minister mentioned earlier that the breakdown rate actually improved by one-third. This is quite significant. He also mentioned that the total number of lifts in operation right now is 59,000. Does that actually imply that the number of lifts that have been brought into operation in recent years has outpaced the available supply of manpower that can handle the maintenance for such lifts?”
“Third, on manpower requirements, we are mindful that this may require more people in the industry, in the immediate term. In the longer term, we will, as I have said, look at sectoral plans to develop and ensure a healthy pipeline of technicians and engineers in this sector. In the immediate term, we are still in discussion with all the lift contractors. BCA is engaging them to identify specifically whether there are immediate manpower needs and how best to help them address these manpower needs. So, we are engaging the industry closely.”
“Madam, let me address the three questions in turn. First of all, on the findings of BCA's audits, I would say that across the various audits and also the investigation of incidents that have happened so far, BCA has not found any systemic trend, or identifiable trends across the various incidents. Each one is quite unique, it varies across different lift models and different ages. Generally, if you look at data, like from the TMS and if you look at the overall state of lifts today, we can say that older lifts tend to have a higher breakdown rate, in particular, older lifts beyond 20 years. If you were to take a more preventive or risk-based approach, I would say, step up the maintenance and have preventive checks for the older lifts, particularly the ones which are above 20 years old. That is commonsense because these are lifts which have been subject to more wear and tear and, therefore, they need better maintenance. On the Certificate of Lifts, the Member mentioned that it was taken away previously. But even though there was not a requirement to display, the certificates continued to be lodged with BCA. So, there was still that process. The decision now to require it to be displayed is really part of the broader review to see how we can tighten standards and ensure accountability. We want to make sure that it is not just about the certificate and the display of it, but to make sure that proper checks are done before the lifts are allowed to operate. Once that permit to operate is issued, it will be displayed, together with the Authorised Examiner's name, so that there is accountability – the person who did the checks, the name is there, is displayed. Potentially, even the lift contractor's name will be put up, together with the certificate. This is the second point.”
“Madam, on the first point about the breakdowns, I fully agree with the Member that we should strive to bring it down to as low a rate as possible. My purpose of mentioning it was to show that over the period of time from 2013 till today, the breakdown rates have fallen from 30 to 20 per 1,000 lifts. Twenty per 1,000 is still, I think, a figure that we should try to bring down even further. That can only be done if we all work together, as I said. There will not be a magic solution, but that can only be done if we tighten up across the board – procurement, maintenance and timely replacement. I agree with the Member on his subsequent point that we should look at procurement standards as well, and we are. As I mentioned, we will look at making sure that our standards are tight, that we procure not just looking at cost, but also looking at quality, which includes looking at the source, the origins of where the various lift parts are made, as the Member had suggested. On his suggestion about making sure there is a longer Defects Liability Period (DLP), meaning to say, after procuring and installing the lifts, would we want the contractor to have a requirement to maintain the lift for a longer period beyond the one-year DLP which is in place today? We will look at it and we potentially can consider a longer DLP. It may mean a bit of a higher cost, but it also means that the Town Council is locked into the OEM for a longer period of time and you would not have the flexibility to allow competition to come in and to switch between different contractors. So, we have to find a balance, but we are prepared to consider a longer DLP.”
“Madam, like I said earlier, HDB already imposes stringent requirements in its procurement criteria and we would be happy to see how we can tighten some of these requirements, as suggested by the Member, including looking at even higher liquidated damages. We will always review and make sure that our standards and our requirements are tight. I would also highlight that Town Councils themselves have maintenance contracts with lift contractors, and Town Councils themselves can impose these tighter requirements on their own lift contractors which they engage to do maintenance work.”
“As I had explained in this House earlier, HDB is already implementing the Selective Lift Replacement Programme (SLRP) to replace selected old lifts with new ones that come with better safety and security features on a cost-sharing basis with the Town Councils. The SLRP is a one-off programme and we do not have plans to extend it further. The replacement of old lifts is the responsibility of the Town Councils and ought to be undertaken by them as part of their cyclical maintenance programme. However, for the existing lifts that are not due for replacement soon, we will look at the possibility of helping the Town Councils retrofit them with key safety enhancements and features. So, I am not talking about lifts that are due for replacement because these are old lifts that should be replaced by the Town Councils; but about the ones that are not due for replacement soon, MND will look at the possibility of helping Town Councils retrofit them with key safety enhancements and features. This support for safety enhancements for existing lifts will require significant Government expenditure, so we are studying the matter carefully and will announce the details when ready. To sum up, all of us, be it the Government, regulator, lift owners, contractors, or even lift users, have a part to play to ensure that our lifts are reliable and safe. Over the years, we have put in place an effective operating and regulatory regime for lifts in Singapore. Let us work together to make it even better and safer for everyone.”
“I agree with him and I would like to share that the Competition Commission is looking into this very matter, to ensure that third-party lift maintenance contractors have access to essential lift spare parts. So, this will promote more effective competition and enable the Town Councils to choose the best contractor to do the job. Fourth, besides regulatory action by BCA, it is also important for Town Councils, as lift owners, to take responsibility and carry out proactive maintenance and cyclical replacement of lifts. For example, Town Councils can analyse the lift fault data from the TMS and the records of residents' feedback to identify lifts in their estates which may require more attention. Town Councils should also have qualified personnel within their management teams who can supervise the contractors and work with them to put in place an effective maintenance regime. A more comprehensive lift maintenance and replacement programme will cost more. For example, with more rigorous checks over time, Town Councils are likely to draw more on their Sinking Funds to replace worn out lift parts or to carry out a complete replacement of older lifts. Town Councils must project and plan ahead and ensure sufficient savings for long-term financial sustainability. That is why MND intends to require all Town Councils to set aside a higher proportion of their S&CC collections into their Sinking Funds and to ring-fence a part of the Sinking Fund specifically for lift replacement. Finally, Mr Pritam Singh asked about Government assistance and Mr Alex Yam also requested for an upgrading programme to replace older lifts.”
“It is also developing a sectoral plan which will take into account the manpower demand in relevant fields of expertise, as well as the need for better defined career development pathways to attract and retain more skilled professionals in this sector. Third, we should continue to effectively harness competitive forces in the industry to bring about benefits to residents. There are around eight main lift contractors that maintain about 70% of the lifts in Singapore, as well as many other smaller firms operating in the sector. So, there are many firms but eight larger ones that maintain about 70% of the lifts in Singapore. All of these lift companies, big or small, are free to bid for the installation of lifts in our public housing estates. HDB adopts a stringent procurement process which takes into account not just cost, but also the quality and reliability of lifts. For new lifts installed in BTO projects and under the Lift Upgrading Programme, HDB imposes the requirement of not more than one lift breakdown per month per 10 lifts installed during the one-year Defects Liability Period (DLP). Lift companies that fail to meet this performance standard will be penalised, for example, through the imposition of Page: 16 liquidated damages or debarments for future HDB tenders. Beyond this one-year DLP, Town Councils can decide whether to continue with the Original Equipment Manufacturer or switch to a third-party lift contractor. In this regard, Mr Ang Wei Neng suggested that we facilitate the use of common parts for lifts so that Town Councils will have more contractor options to choose from.”
“This is why BCA, as the regulatory authority for lifts in Singapore, has been focusing on this issue for some time and it has been engaging the industry, consulting lift experts and studying international best practices and standards with the aim of enhancing the regulatory and safety regime for lifts. So, let me share some of the key thrusts in our strategy and, in the process, also respond to the queries raised by Members. Our first priority is to raise our standards of lift maintenance. Currently, all lift owners, including Town Councils, have to engage a registered lift contractor to service the lifts at least once a month. The lift contractors must also carry out an annual inspection and testing of the lifts, in the presence of an independent Authorised Examiner, who has to certify that such inspection and testing were done in accordance with regulatory standards and that the lifts are fit for operations. This is the regime today. While these monthly and annual checks are being carried out today, BCA's audits reveal that the quality of work can be improved. This is why BCA has recently announced measures to tighten maintenance standards for lifts. BCA will also step up its audit checks to ensure that lift contractors achieve the required standards and to take enforcement action against non-compliance. The measures will be implemented this month. Second, besides tighter regulatory requirements, it is also important for lift companies to build up their capabilities and have competent technicians and engineers doing the work. BCA is, therefore, working with the industry to set clearer requirements on the scope and level of training for all lift personnel.”
“I understand and share the concerns raised by Members over the safety of our lift operations. Lifts are an integral part of our urbanised, high-rise living environment. Currently, we have around 59,000 passenger lifts, with 24,000 of these in public housing estates, all of which are used with high-frequency on a daily basis. Lifts in Singapore are checked regularly and safe to operate. But like any other machinery, they can malfunction from time to time. Data from the Tele-Monitoring System (TMS), which provides real-time monitoring of HDB lifts, indicate Page: 15 that there were around 20 breakdowns per 1,000 lifts every month in 2015, and the first half of this year. This is lower than the average breakdown rate of 30 per 1,000 lifts each month registered in the previous two years, in 2013 and 2014. This is just to reiterate. There are perceptions that there had been a sudden surge in lift breakdowns. This is actual data from the Tele-Monitoring System (TMS), which all the Town Councils have. This is real-time monitoring data of HDB lifts operating in their respective estates. We have compiled the data and the breakdown rates were: 30 per 1,000 lifts in 2013 and 2014, on average. And it has come down to 20 per 1,000 lifts per month in 2015 and the first half of this year. Nevertheless, despite the rates coming down, any serious lift incident is one too many. Furthermore, as our lifts get older and are subject to more wear and tear, they will face higher risks of faults.”
“Mdm Speaker, with your permission, I would like to take Question Nos 3 to 9 together.”
“The Housing and Development Board (HDB) provides a variety of spaces for residents' use, such as precinct pavilions and void decks. From feedback, we know that these community spaces are in demand and popular with residents. They are designed as public spaces for all to enjoy and use freely. So, it is not practical to track the utilisation rate of these spaces. In accordance with the Town Councils (Use of Common Property) Rules, the Town Councils may issue permits and impose charges, as they consider necessary, for the use of common property for social or communal functions such as weddings or funerals at void decks, open spaces and precinct pavilions. All applicants who wish to apply to use these spaces could approach the relevant Town Councils which would process such applications, while taking into consideration residents' needs and possible disamenities to residents living in the precinct.”
“Singapore is a city-state and, unlike other countries with large land mass, Singapore has to accommodate all our needs within limited land. Nonetheless, we recognise the value of these greenery and biodiversity systems and make a constant effort to sustain them. Today, there are four gazetted Nature Reserves and 20 recognised Nature Areas in Singapore. Nature Reserves and Nature Areas make up about 5% and 3% of Singapore’s land area respectively. Together, they occupy about 5,400 hectares. This is a significant size and is equivalent to about eight Ang Mo Kio towns, or almost half of all housing land in Singapore. In addition to setting aside land for Nature Reserves and Nature Areas, we have been adopting unique solutions to conserve nature in our urban setting. For instance, by incorporating green spaces extensively within our urban environment, we have retained a fascinating diversity of native plant species in our city. We have also weaved nature deep into our heartlands through an extensive network of park connectors, Nature Ways and projects like the Active, Beautiful and Clean Waters Programme. We will continue to look for opportunities to integrate greenery and biodiversity in our urban environment and create a high-quality living environment for all.”
“Currently, Town Councils manage the general repair and re-decoration (R&R) works, including repainting, for the residential blocks in their respective towns. The Housing and Development Board (HDB) manages the R&R works for all HDB multi-storey car parks (MSCPs), and generally adopts a seven-year cycle for such works. It is a good idea to coordinate the R&R works for the MSCPs and residential blocks, and HDB will be happy to work out suitable arrangements with the Town Councils. In particular, HDB can engage the Town Councils to undertake the R&R works for MSCPs on its behalf, with funding provided to the Town Councils for this purpose. This will enable Town Councils to better synchronise the R&R works in their towns, achieve a more coordinated look for the precinct and minimise inconvenience to residents. Some Town Councils have already taken up this arrangement, and HDB welcomes more to do so.”
“We look at every case on its own merits. In fact, the most common reason for allowing is for work overseas. That is usually the most common reason why HDB would agree to a request to subletting within the MOP period, that means, the person having bought an HDB flat, for some reason, employers request them to work overseas and then that is a valid reason. There may be other reasons like family circumstances, parents or somebody who has fallen sick for extended periods of time, a resident would appeal on a sympathetic or compassionate basis to want to move to take care of an elderly father or mother and would like to do that for a year or so. So, there could be various other reasons like these. And, like I said, we will look at it case-by-case and, if it is valid, HDB would want to support and provide room and leeway for the residents to be able to do so, on the condition, as I have said, that they would then have to make up for that period after they return to their flat.”
“Madam, if there are indeed cases of infringement, people who have flouted the MOP rulings, and residents suspect that their neighbours may be doing so, please alert HDB and HDB will certainly take enforcement action. Many times, when these cases or when we have had people making representations and we go to check, they are, in fact, legitimate subletting approved by HDB. But if there are cases where Members in the House have feedback from their residents, please encourage them to let HDB know, and we will not hesitate to take enforcement action.”
“Madam, flat owners have to fulfil the Minimum Occupation Period (MOP) before they can sublet their flats. However, some may have specific reasons to sublet their flats within the MOP, for example, because of full-time work assignments overseas. In such cases, they will have to put up an application to the Housing and Development (HDB), which will then assess the request on a case-by-case basis. Each approval to sublet within the MOP is for short periods of one or two years. And when these flat owners reoccupy the flat, they will have to make up for the period of subletting to fulfil the MOP. Over the last three years, HDB granted an average of 785 approvals each year to flat owners to sublet their flats within the MOP and this is about 2% of the total subletting approvals each year. Of these approved cases for subletting, an average of about 110 cases were granted an extension each year.”
“Madam, on the first point about singles. We would not be able to exactly pinpoint what is the demand from singles, because there may be more coming forward to apply. We do not have the exact number in terms of forecasting demand from singles, but I would say that it is still quite strong. We still see quite a lot of applications even in the last BTO exercise. If you look at the application rate, as I mentioned, it is more than seven, which indicates that there is still very strong demand. Based on that level, I think we will take two to three years to clear that level of demand. Will even more come forward once the queue gets shorter? Maybe. That is why I said even after we have cleared this current surge of demand, there may be more coming forward, but that is the kind of numbers and timeframe we are looking at. The second question is on the Fresh Start Grant and the condition for the school-going children. We are looking at a parent with at least one child in school, particularly because we want to make sure that the child has a stable environment to grow up in. At least one child, so that means school-going age, which is anything that is less than 16 years old. But if they have more than one child, they can be in university, they can be in tertiary institutions, private institutions, and that is fine.”
“Mr Chairman, I just wanted to add in response to Mr Low Thia Khiang's query, as I understand his suggestion is to look at how we can standardise more components within the lifts. We have two objectives. One, to bring down costs, and secondly, so that we will not be held hostage or the Town Councils will not be held hostage by any particular Original Equipment Manufacturers (OEMs). I agree fully with those suggestions. The objectives that we have are, indeed, aligned, because we have, over the years, been doing more standardisation. That is why, in the early days, all the lift maintenance contracts were done by OEMs entirely. We were in a very difficult situation where we had to pay whatever prices that the OEMs charged. Now, we have a more competitive market. There are third-party contractors, but Mr Low Thia Khiang is right, that not everything can be done by the third-party contractor. Sometimes, for very complex things, for certain parts, you still need to go to the OEM. We should try and aim for an even more competitive market, so I agree with the Member. With just one caveat, that we have to study this very carefully, because this is quite complex. If we were to overly prescribe certain standards, and say only these things can be done, we may end up with a situation where we limit our choices that we have to purchase. Fewer OEMs will bid for lift contracts in Singapore, the cost may be higher. So, it is complex and we have to look at this in detail. I would say that the direction of what the Member has suggested is something we agree with. HDB has already done this and we will continue to do more of it.”
“Mr Chairman, I understand the Member's concern with regard to the size of the flat, the MOP requirement and also the number of potential beneficiaries of Fresh Start. I would just highlight that when we thought about the scheme and we looked at the potential beneficiaries, the profile I was talking about, second-timers in rental flats with young children, school-going children. If you look at the savings and the balances they have today, there is an affordability issue even if we, say, buy a 3-room flat now, even with the grant. It is not going to be so easy for them to do so. So, we have to be realistic about what they can afford. Even after the Fresh Start grant, given the balances that they have in savings and the situation they are in, I think it is more realistic to aim for a 2-room flexi flat for a start. And the longer MOP is there to make sure that there is a stable environment for the children. Should any of these families who apply, eventually down the road, say that they have been able to be successful, with better incomes and now are better able to afford a 3-room flat, I think we can facilitate that. Even if it is within the MOP, we will find ways to facilitate that. Because that is a success story which we should celebrate; meaning this is a household which came under Fresh Start, got a 2-room flat, and then said, now we have succeeded, incomes are stabilised, are better, we are able to afford a 3-room flat. We will find ways to facilitate that. But we wanted the long MOP to make sure that there is stability for the home environment and also to avoid situations where families cash out their flats early.”
“Let us work together to build a better home with our families and a better community with our neighbours and fellow Singaporeans. Let us shape, together, our residential and urban landscape and build the best Singapore we know how for all Singaporeans. [Applause.]”
“URA has an existing programme which they will enhance and will call it, "Our Favourite Place", to invite Singaporeans to collaborate and play a greater role in shaping the use of our public spaces. Through this programme, we will support individuals or groups who have ideas and are keen to activate public spaces. We will assist them to streamline regulatory approvals from Government agencies and we will provide seed funding to get the ideas implemented on the ground. I hope that, in time, a network of like-minded volunteers and civic partners will grow through this programme. This will help us catalyse a broader movement to get Singaporeans involved in shaping our streets and public spaces. It will strengthen our sense of ownership, identity and emotional connection to home. Mdm Chair, we are all familiar with the song "Home", and there is one line in the lyrics that says, "There is comfort in the knowledge that home's about its people, too." Indeed, everything we do in MND, and the whole-of-Government, is about the well-being of Singaporeans. People are always at the centre of our policies, be it our housing programme, our urban transformation plans or our initiatives for more vibrant public spaces. 5.00 pm People are also a critical factor in the success of our policies. That is why we want Singaporeans to be actively involved in shaping our policies and our future city. Madam, I began by noting how housing has always been a hot-button issue, and that is to be expected, because ours is a stakeholder citizenry with the highest home ownership rate in the world. Taking ownership of the spaces we live in is what makes a house a home. So, as we take our first step towards SG100, let us make this a journey of closer partnerships.”