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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“And since the DNC Registry provisions commenced on 2 January this year, about 600 organisations have checked a total of about 37 million telephone numbers against the three DNC registers. There are several cases of non-compliance that the PDPC is currently investigating and organisations will be given the opportunity to explain their actions before the PDPC decides on the appropriate enforcement approach. None of the cases so far involves in-service telemarketing messages – so, none of the cases that have been raised so far involved the exemption that was granted in December. Regardless, PDPC will take enforcement action for abuses of the exemption given, or for any other breaches under the Act. Er Dr Lee Bee Wah (Nee Soon): Mdm Speaker, I would think that the Do Not Call Registry is a good start. But I think a lot of people are looking into how enforcement is going to be carried out. Just recently, for example, I received an SMS from a tuition centre. I asked, "Do I have an on-going business relationship with you?" There was no reply. So, I would like to ask the Minister how does one report a case like this and what enforcement action is going to be taken.”
“And such a system would also have been very complicated for both consumers and organisations. In reaching its decision, the PDPC had studied the jurisdictions with established DNC Registries. None had structured their Registries with an opt-in facility. In the UK, which has a similar design of the DNC Registry as ours, similar in-service telemarketing SMSes sent to existing customers would be allowed so long as there is an opt-out unsubscribe facility. In the US and Australia, where the system is slightly more liberal than ours, permitted SMSes Page: 27 are not limited to in-service telemarketing messages made to existing customers, and in fact, all unsolicited telemarketing SMSes that are allowed have to have an opt-out unsubscribe facility as well. So, I would like to assure the House that the PDPC has put in place an extensive outreach and communications programme for both organisations and consumers. So far, the PDPC has reached out to about 55 industry associations whose members amount to more than 27,000 companies. More than 10,000 representatives from 1,600 companies have participated in the public briefings, workshops and seminars and almost all have found these to help in their understanding of the new requirements. Consumer education on data protection and DNC-related issues has also been ramped up, with resources like videos on how to register with the DNC Registry, consumer handbooks and leaflets that are made available. The PDPC has also been working with partners, such as the Consumers Association of Singapore, the Infocomm Development Authority (IDA), the National Library Board and MOE, to conduct talks and road shows for consumers. Organisations are, generally, aware of the Personal Data Protection Act and the DNC provisions.”
“So, if the recipient opts out, or has otherwise indicated to the organisation that he does not wish to receive telemarketing messages, the organisation cannot rely on the exemption to send any future in-service telemarketing message to that same telephone number, even if it is related to the subject of the on-going relationship. So, the exemption was permitted for text and fax messages, subject to these three conditions. The intent behind the exemption is to try to meet the preferences of as many consumers as possible. Without the exemption, when individuals register on the Do Not Call Registry, it would be an "all or nothing" choice, either to block or receive all types of telemarketing messages. The PDPC was guided by consumers' interest and what would be most useful and beneficial for consumers who registered on the DNC Registry. The exemption, with its limited scope, was assessed to be the best approach to try and benefit as many consumers as possible. Now, consumers have the flexibility to choose if they prefer to receive such in-service telemarketing messages, and opt out if they do not wish to receive these messages. In the US, this issue of whether to exempt telemarketing calls from organisations with existing relationships with customers was one of the most contentious ones they have to deal with when they set up their DNC Registry. And, eventually, the decision taken was to allow them. The PDPC did consider whether the exemption should be structured with an opt-in facility, as some had suggested. However, this approach would have required individuals with the opposite preference – in other words, those who prefer to continue receiving in-service telemarketing messages -- to take one additional step to opt in.”
“For text and fax messages, organisations can use the exemption to send in-service telemarketing messages in very narrow and limited circumstances. First, the organisation must have an on-going relationship with the customer. Messages from businesses which a customer does not have any contact with are still disallowed. A one-off transaction is also insufficient to establish an on-going relationship. For example, if an individual had given the organisation his telephone number in the course of enquiring about a property listing, buying a television set, or other similar situations, this would not constitute an on-going relationship. An on-going relationship is defined as a relationship between an organisation and a subscriber or user that arises from the conduct of business or activity on an ongoing basis, for example, a subscription, membership or account. Secondly, organisations can only send messages related to the subject of the relationship with the customer. Take, for example, someone with a 3G subscription with a telecom operator. Even with the exemption, the telecom operator may only send messages that are related to the 3G subscription, such as discounts for 3G subscribers to upgrade to 4G plans; the telecom operator cannot send messages that are unrelated to the 3G subscriptions, for example, sending a message on a standalone pay TV promotion that the same operator Page: 26 is having. So, that is the second condition. Third condition is that organisations must provide an opt-out facility in the same message allowing the recipient to opt out of future messages through the same mode.”
“This particular issue of the treatment of in-service telemarketing messages was surfaced by consumers as well as businesses and non-profit organisations. What is an in-service telemarketing message? An example of an in-service telemarketing message would be a telecom operator notifying a subscriber of his mobile prepaid card balance, and in the same message also provides information about discounted rates for IDD calls for prepaid card holders. Without the exemption on in-service telemarketing messages, the operator would only be able to inform a customer about his prepaid card balance. They Page: 25 would not be able to provide other messages to the customers. PDPC has an Advisory Committee comprising eight members from consumer organisations, data protection legal experts and from industry. In consultation with the Advisory Committee, PDPC recognised that while some consumers are very clear that they do not want any telemarketing messages from businesses at all, there are others who would like to receive in-service telemarketing text messages from organisations with whom they have an on-going relationship. Hence, on 26 December 2013, PDPC announced the issuance of an exemption that allows organisations that send in-service telemarketing SMS or fax messages, from having to check with the DNC Registry, if they meet a strict list of conditions. This exemption is much narrower in scope and application than the exemption that had originally been proposed by businesses. What would the exemption mean for consumers and business organisations? Basically, for voice calls, there is no change -- organisations cannot make a telephone call to a consumer to convey in-service telemarketing messages.”
“If an individual signs up their fixed-line or mobile phone number on the Do Not Call, or DNC, Registry, it means that organisations cannot contact the individual for telemarketing purposes by voice, text or fax. Organisations must, therefore, check the DNC Registry before sending out any telemarketing messages via a phone call, text message or fax. An organisation can only contact the DNC-registered number, if that individual had given clear and unambiguous consent for that particular organisation to do so. The framework for the DNC Registry, along with the Personal Data Protection Bill, was passed in Parliament in October 2012, after three rounds of public consultation before that, spanning September 2011 to April 2012. In one of these public consultations, some businesses had proposed that organisations do not need to check the DNC Registry if the number belonged to a customer with whom they have an existing business relationship. This would allow organisations to market any products or services that the organisation offers, to existing customers. However, this proposal was rejected then, as it would be too far-reaching. After the Bill was passed, the Personal Data Protection Commission, or PDPC, conducted another two rounds of public consultation between February and April 2013, and May and June 2013 on a set of advisory guidelines and business rules relating to the DNC Registry respectively. These guidelines and business rules were published in September 2013. Subsequently, as organisations prepared to comply with the DNC provisions, the treatment of in-service telemarketing messages emerged as a new issue, during the preparation to comply with the guidelines.”
“On the third point about online resources, certainly, that is a suggestion that we will be happy to look at – to make available the information on all the different visual artworks and installations that are in Singapore as well as provide artists and commissioning agents with more information on how best to maintain these artworks. So, that is something we will be happy to consider.”
“On the first question on developments that are demolished or which have some impact on the installations, there are indeed public agencies which will look at how to manage the impact on the installations. The agencies are the ones that are responsible for the schemes, namely, NHB, in the case of the Public Art Tax Incentive Scheme and URA, in the case of the Art Incentive Schemes for New Developments. These agencies will then look at what is the best way to manage the installations which are impacted and how Page: 15 they are to be relocated. On the second issue of commissioning, since the URA scheme has expired, whether we are looking at new ways in which more public art can be commissioned and installed. Indeed, we are doing so. I have said that publicly in an event a month ago that MCCY is looking at how we can promote more public art, make it more accessible. We are not just looking at PATIS, which is the NHB's tax incentive scheme, but the broad range of schemes that we have today. There is the Art in Transit Scheme by LTA which has already installed, I think, something like 48 installations in quite a number of our MRT stations. There is the CDL Sculpture of the Year Award which is a partnership between CDL and NParks to have sculptures commissioned and installed in our parks. We are looking at a wide range of different schemes that are available today and then looking at how we can enhance and make public art more available and accessible to Singaporeans.”
“The Singapore Citizenship Journey (SCJ) is a mandatory programme that helps new citizens learn about Singapore's multicultural society, values and norms; facilitates their involvement in the community; and welcomes them into the Singaporean family. The SCJ consists of an online module, an experiential learning programme that brings participants to significant historical landmarks and national institutions and a Community Sharing Session. The SCJ covers Singapore's history and policies, key institutions, such as our parliamentary system and rule of law, and highlights the responsibilities of citizenship. Through the Community Sharing Session, local community leaders share with new citizens their experiences of living in a multiracial and multi-religious society and encourage them to be involved in the community. The content of the SCJ is determined by two main criteria. First, does the content help new citizens to better understand and adapt to the Singaporean way of life? Second, does the content help them relate better to fellow citizens? Hence, the SCJ focuses on Singapore's history and institutions, social norms and community relations as the foundational content. We are continuously updating and finetuning the SCJ content to ensure that it achieves its objectives. Page: 172”
“Integration is a long-term journey for immigrants, whether in Singapore or elsewhere. Our new immigrants' sense of rootedness and belonging to Singapore and adaptation to the Singaporean way of life cannot be achieved through a single programme or project. These take time to develop and are influenced by their daily experiences in the community, schools and workplaces. Hence, the focus of the Singapore Citizenship Journey (SCJ) has been to facilitate our new citizens' on-going efforts to integrate into Singapore society, by fostering relations with their local community and encouraging active involvement. Some SCJ participants have gone on to participate more deeply in community activities or volunteer their time and resources to various causes. The personal ties they form with the local community help to strengthen their commitment to Singapore and their identification with fellow Singaporeans. This ground-up approach is more effective and sustainable than a centrally-directed capstone project, as it takes into account the varied needs and interests of new citizens, as well as the local communities in which they live. Page: 148”
“The International Olympic Committee (IOC) is a non-governmental international organisation. IOC recruits and elects its own members, who, in turn, represent the IOC in their respective countries. Mr Ng Ser Miang, like other candidates, ran for the Presidency in his capacity as an individual member of the IOC. No public funds were expended to support his campaign. Page: 196”
“The Inter-agency Committee for Community Dispute Management started work and began stakeholder consultation on a framework for managing community disputes in July 2013. In developing the framework, one guiding principle is to uphold good neighbourly relations, and to ensure that residents take the responsibility to try to settle private disputes amicably among themselves first. This means that greater effort needs to be placed on strengthening neighbourly ties, and developing a culture of civic-mindedness and consideration for others so as to reduce the incidences of private disputes. When third-party intervention is needed, mediation should be tried before resorting to legal means, since most disputing parties will still have to remain neighbours. The usefulness of a community-based approach, such as mediation, is borne out by the fact that approximately 70% of cases mediated at the Community Mediation Centre have had successful outcomes. At the same time, we recognise that there are intractable cases where individuals are victims of highly inconsiderate neighbours. These cases may not be easily resolved through voluntary community mediation. Hence, we plan to strengthen the legal and enforcement mechanisms to deal with such cases. In doing so, we are mindful of the risks of abuse, as an unreasonable party could use such mechanisms to victimise others, and this could lead to an escalation of the quarrels. Safeguards are, therefore, required to manage unreasonable Page: 195 complainants. MCCY intends to embark on wider public consultations on the community dispute resolution framework, before we finalise and implement it next year.”
“MAS conducts an annual survey of major lenders to small and medium-sized enterprises (SMEs) to better understand financing conditions for SMEs. The preliminary results for the 2013 survey indicate that SME lending grew by 9% in the year ending June 2013; 27% of SME loans were unsecured; 55% were secured on property collateral, mainly commercial or industrial properties, and the remaining 18% were secured on other forms of collateral. MAS does not call for banks to require that SMEs meet a project track record or any specific requirement in order to get a loan. All MAS expects is that banks and finance companies make prudent lending decisions, based on their own credit assessments and risk tolerance. In evaluating loans, financial institutions would typically also consider their interests in keeping their customers. Credit bureaus can help the market function efficiently. They help financial institutions make good credit decisions. There are indeed existing credit bureaus in Singapore which provide credit evaluation and monitoring based on other corporate information such as company and shareholder details, supplier Page: 124 payment trends and litigation records.”
“National Sports Associations (NSAs) are responsible for representing the interests of their sport and their athletes. In the case of the Singapore Bodybuilding and Fitness Federation (SBBF), despite repeated interventions by the Singapore Sports Council (SSC) to help address the series of administrative lapses and doping infractions, the NSA has failed to fulfil its obligations as the governing body for bodybuilding. SSC has, therefore, assessed that the SBBF does not have the capability or the credibility to remain as the NSA for bodybuilding and has decided to revoke its NSA status. SSC and the Singapore National Olympic Council (SNOC) are in discussion with parties that have the potential to represent the interests of the bodybuilding fraternity and support its athletes in the capacity of an NSA. When the new NSA is formed, SSC will work with it to develop the sport and support the athletes. Page: 87 Despite the revocation of the NSA status, bodybuilding athletes can still participate in regional and international bodybuilding competitions through their respective bodybuilding sports clubs, which are affiliated to the regional and international federations organising these events. For major games, such as Southeast Asian Games and Asian Games, if there are bodybuilding athletes selected by the SNOC to represent Singapore at these Major Games, then the SNOC and SSC will directly oversee the training and preparation of these athletes.”
“I thank the Member for the supplementary question. Indeed, the Singapore Sports Council is looking at the floating platform long term. I think it is a wonderful stage which we are very mindful can be used for things beyond the National Day Parade. When the new National Stadium is ready and we have the National Day Parade potentially moving to the new National Stadium, we can consider long-term potential uses for the floating platform. So, that is being studied, not just by Singapore Sports Council itself, but also in partnership with potentially other agencies which may have an interest in the long-term uses of the floating platform. Page: 50”
“I thank the Member for the supplementary question and I should avoid giving a tutorial on which Ministry is responsible for the organisation of the National Day Parade. It actually comes under MINDEF and not MCCY. But I will convey the feedback to the Minister for Defence and I believe that the National Day Parade Organising Committee would take that into consideration when organising next year's National Day Parade.”
“I thank the Member for his supplementary question. The planning and the preparations of the National Day Parade, indeed, have a long lead time. Actually, it is already in progress. It is a matter of deciding on the venue and I believe the National Day Parade Organising Committee, which has already been set up, are in close discussions with the Singapore Sports Council (SSC) and the Sports Hub Private Limited, which is the private-sector partner of the Sports Hub Project, and they will be deciding on the venue by the end of this year.”
“The Singapore SEA Games Organising Committee (SINGSOC) is still in the process of finalising the budget as several aspects of the plan for 28th Southeast Asian (SEA) Games to be held in Singapore, including the line-up of sports and events, will only be finalised with the SEA Games Federation after the 2013 SEA Games in Myanmar. Therefore, it is premature to give an estimation of the budget for the SEA Games. I shall inform this House when the budget is finalised. Based on past experiences and looking at other Major Games, the usual causes for budget overruns are changes in specifications between the initial budgeting phase and the actual implementation phase, as well as unforeseen requirements in major areas, such as venue construction and upgrading, organisation of the competitions themselves, and information technology. I have asked SINGSOC to keep a tight watch on these areas, and to work closely with the Singapore National Olympic Council and SEA Games Federation to define the appropriate service levels, so as to keep the costs of organising the Games under control. As much as possible, SINGSOC will plan ahead and bring forward the procurements in these areas. It will leverage on SSC's existing sports facilities and services. It will also actively seek corporate sponsorship to defray the costs, while working closely with stakeholders to ensure the success of the Games. Page: 176”
“For example, NAC works closely with volunteers to develop and present a sustained level of arts programmes in the community. In the process, volunteers also gain knowledge and practical experience in developing arts content, and working with artists and other partners.”
“MCCY and our agencies are committed to enlarging the space for ground-up arts and heritage initiatives. This year's PAssionArts Month is a case in point. Many Community Arts and Culture Clubs (CACCs), which comprise residents spearheading arts and heritage initiatives in their communities, have partnered national arts institutions, such as the Nanyang Academy of Fine Arts (NAFA), LASALLE College of the Arts and the Nanyang Polytechnic School of Interactive & Digital Media, to organise arts and culture activities throughout Singapore. These include exhibitions, talks, workshops and other community art projects. The National Heritage Board (NHB) has also been working with partners, such as the School of the Arts (SOTA) and Singapore Management University (SMU), to present exhibitions, performances and other collaborations in the arts and heritage district of Bras Basah-Bugis. Currently, we already work with the local community and other stakeholders to close certain roads for arts and heritage events. For instance, at this year's Night Festival in August and September, Armenian Street will be closed for a variety of programmes. We will look into the Member's suggestion of closing Waterloo Street or Short Street, and will do so in consultation with the various stakeholders involved, including the tenants and residents in the area. In fact, for the area around Waterloo Street, which is flanked by museums and arts facilities, we are also looking at ways to create a more pedestrian-friendly environment, and to provide more space to stage arts and cultural Page: 175 initiatives. Mr Ang also asked about assistance for volunteers in organising events. Our agencies already do so through various toolkits, advisory panels, workshops and other training programmes.”
“The Sports Hub is developed under a 25-year public-private-partnership (PPP) agreement, where Sports Hub Pte Ltd (SHPL) undertakes to design, build, finance and operate the entire project. As part of the contract, SHPL solicits and manages commercial opportunities for the Sports Hub. SHPL has commercial relationships with many partners and it does not require the Government's approval to enter into any such commercial agreements. What SHPL needs to do is to seek the SSC's approval for the naming of Sports Hub facilities. The PPP agreement provides for the sale of such naming rights for individual facilities within the Sports Hub, but it was silent on whether naming rights could be sold for the entire Sports Hub. Nevertheless, in seeking to secure the best sponsorship deal for the Sports Hub, SHPL had identified a potential sponsor which was prepared to pay for such a naming right, and it Page: 123 made a formal proposal to the SSC. My Ministry and the SSC studied this proposal carefully. It was an attractive proposal, which would have provided significant sponsorship monies for the Sports Hub. But we decided that it was important to retain the over-riding principle of preserving the Sports Hub and the National Stadium as national icons free from commercial naming rights. SSC has since clarified this point with SHPL. They have accepted our position, and are now looking at sponsorship deals confined to individual facilities within the Sports Hub. In assessing any proposal for the sale of naming rights, SSC will look at fair value considerations. This is done through an independent valuation of the commercial value of the property. At this juncture, the details of the naming rights deal for individual Sports Hub facilities are still being worked out.”
“The Tampines Bike Park is scheduled to be closed as its site is required for residential use. The Singapore Sports Council (SSC) will continue to operate the Bike Park for as long as possible until the site is required by HDB, tentatively around the middle of 2014. We recognise that there has been sustained interest in the Tampines Bike Park since the site was developed for the Youth Olympic Games in 2010. SSC will seek to continue to cater to the needs of its users after the closure. For mountain biking, there are alternative sites such as the Bukit Timah mountain bike (MTB) trail, the Kent Ridge MTB Trail and the Ketam MTB Trail in Pulau Ubin. These provide sufficient capacity and varying difficulty levels to cater to a wide range of mountain bike trail users. As for the BMX track, SSC is in discussion with the land planning authorities, namely, URA, HDB and NParks, for potential replacement sites. SSC will provide an update on the study before the closure of the Tampines Bike Park, and aims to provide a replacement by the end of 2014.”
“We recognise the importance of public art in Singapore's streetscape, be it in our commercial districts or our residential heartlands. For these reasons, the National Arts Council (NAC) and the National Heritage Board (NHB) offer several schemes to bring art by local and regional artists to more public spaces. The NAC supports public art projects through grants, and commissions new art pieces through platforms like the Singapore Biennale. The NHB's Public Art Tax Incentive Scheme allows individuals and organisations to get a double tax deduction if they commission or donate public art. My Ministry is now in the process of reviewing how we can further encourage more art in our public spaces. This is not just a matter of public funding. More importantly, we will need the support of all stakeholders, including commercial entities and building owners to develop our public art environment. Through this review, we aim to have more quality artworks in our public spaces for all Singaporeans to enjoy.”
“I thank the Member for the clarification. It is an important one because at the aggregate level, as the Member has observed, our household balance sheets are resilient. That is clear from a wide range of indicators. So, as I indicated in my reply, it is a segment of borrowers who have perhaps fallen into the overly leveraged category. But as I also indicated, if you would look more closely at the profile of these borrowers, they are not necessarily in the vulnerable category. The bulk of them have above-average household income levels. For the bulk of them – it is close to more than 90% – are servicing private property loans, and more than 80% of them are servicing one loan, not multiple loans so they are owner-occupied. For this category of borrowers, while they have exceeded 60% in terms of Total Debt Servicing ratio, they probably have a larger buffer in terms of their household income and assets, and they would be in a lower risk of default. So, overall, I think both at the macro and micro levels, our situation is quite resilient but we should not be complacent, as I have mentioned, and that is why we have introduced measures recently and we will continue to watch the market closely. 3.00 pm”
“Most of these borrowers have above-average income levels. In other words, their incomes are higher than the median household income of $6,000. Majority have also taken up private housing loans and are currently servicing only one housing loan. Therefore, they are likely to have a larger absolute buffer of income and assets. Nevertheless, we cannot be complacent about household leverage. More borrowers, including those whose debt service burdens are currently below 60% of income, will face some difficulty when interest rates rise. Fundamentally too, we have to prevent a situation where credit supplied at low interest rates drives property prices, taking prices beyond levels that can be sustained by underlying income growth. This is why the Government has taken a series of proactive measures to restrain borrowings for property purchases. Apart from housing loans, MAS is also dealing with other components of household debt. As Members would be aware, MAS has reintroduced Loan to Value limits and tenure curbs for car loans. MAS has also proposed new rules on unsecured credit and credit cards to help individuals with credit problems avoid further debt. MAS will continue to encourage prudence in both lending and borrowing and help to keep household debt at a manageable level.”
“Madam, Singapore's household balance sheets are, on the whole, in good shape. Even excluding the value of property assets, cash and deposits owned by households exceed household debt in aggregate. Another indication of the health of household balance sheets is the household debt-to-income ratio. This ratio fell in the second half of the last decade and has since risen because of the strong growth of investments in the property market. However, the debt-to-income ratio, estimated at 2.1 times in 2012, still remains significantly lower than in the middle of the last decade when it peaked at 2.6 times. Overall, therefore, households are currently not more leveraged than they have been in the past decade. The problem instead lies with a segment of Page: 38 borrowers. MAS knows from an examination of banks' credit files that some households are likely to have borrowed too much, lulled by an extended period of low interest rates. These are the borrowers that could be vulnerable when interest rates normalise. There is no precise measure of over-leverage. A rough guide is to look at the debt service burden, or the proportion of one's monthly income that is used for monthly re-payment of all loans, including the interest payments. By this measure, MAS estimates that about 5% to 10% of borrowers have a monthly debt servicing burden greater than 60% of their monthly income. It will be reasonable to consider them as over-leveraged. Housing loans constitute the bulk of their borrowings. However, while over-leveraging will cause borrowers difficulty, especially when interest rates rise, this does not mean that they will automatically default on their loans. Most of this group of borrowers with debt service burdens of more than 60% of their income, meaning overly leveraged category.”
“MCCY has been actively consulting our stakeholders on the design of the Cultural Donation Matching Fund. We have met many arts groups and donors in the last few months. We also launched an online public consultation exercise in April, and have just posted a summary of the responses on the MCCY website. The Matching Fund is a strong signal of the shared responsibility between the Government, private and people sectors in driving Singapore's cultural development. This signalling effect can and should encourage more new donations. Indeed, many people we engaged, including potential donors, were optimistic about the positive impact that the Matching Fund will have on new donations to the arts and culture. Arts groups have also told us that the Matching Fund will create opportunities for them tap new sources of giving. In fact, they see it as their responsibility to make this happen. The Matching Fund will have its own funding guidelines to ensure proper governance and accountability in the use of public monies. In working out these Page: 73 guidelines, we will take reference from existing funding guidelines that are already in place today, including those of the National Arts Council. When we announced the Matching Fund in the Budget this year, we made clear that we would engage in a process of consultation to work out the details of the scheme over the subsequent months. So far, we have kept to this timeline and we are on track. In our consultations, the vast majority were also comfortable with this timeline. So, we aim to finalise the scheme within the coming months and there should not be a need to backdate it to 1 April 2013.”
“We recognise that there is heritage value in the Bukit Brown municipal cemetery. This is why Government agencies, including the National Heritage Board (NHB), have been working with experts and stakeholders on various efforts to document and commemorate the memories of Bukit Brown for future generations. NHB is also studying how the heritage of Bukit Brown can be preserved, taking into account future development plans for the area. Not all sites with local heritage value will qualify as a UNESCO World Heritage Site. The standards required by UNESCO are very stringent, especially to meet the criteria of "outstanding universal value". This was why when the Ministry first explored the possibility of a UNESCO listing, it had engaged a technical expert to do a thorough and in-depth assessment to determine the Page: 72 site with the best chance of meeting the UNESCO criteria. As part of this process, we had done a consultation on possible sites that could be put up for the UNESCO bid. At that time, none of our stakeholders had surfaced the Bukit Brown cemetery as a candidate for consideration. As I had mentioned previously in Parliament, having worked through an extensive process of identifying the Singapore Botanic Gardens as our first nomination for the UNESCO World Heritage Site, our efforts are now focused on this bid. This will also give us an opportunity to better understand UNESCO's requirements and processes, before exploring other possibilities in the future.”
“In 2012, a total of more than 200 drama courses were conducted in the Community Clubs. Beyond the Community Clubs, our libraries and the Esplanade also present drama-related workshops. To cultivate more interest in drama, we have integrated theatre-related activities and workshops into our community events. For example, during the recently-concluded PAssionArts month, residents had the chance to work with drama artists and arts groups. A total of 30 theatre programmes and workshops were conducted for the community. These gave the residents the opportunity to tell their personal stories through drama, and co-create drama works under the guidance of theatre professionals. Residents can also join theatre interest groups at their local Community Clubs. Some examples include "Ageless Theatre", a theatre interest group for seniors based at Marine Parade Community Club; and "Yellow Chair Productions", a community theatre group based at Tampines Central Community Club. Theatre groups supported by the National Arts Council, such as The Necessary Stage (TNS), also actively engage the community through a variety of drama-related programmes. For example, under its Theatre for Seniors (TFS) programme, TNS trains senior citizens in the basics of theatre, and provides them with opportunities to participate in public performances. To reach out to youths, TNS also offers arts education workshops in areas, such as playwriting, acting and drama tasters. Cultivating interest in drama involves a partnership between the Government, artists and the community. My Ministry and our agencies will continue to provide opportunities for artists and theatre groups to engage the community through drama-related activities and programmes.”
“Even though it is still on a surveillance method, I think the SIBOR system would be more robust than it used to be. On the third point about sanctions on individuals and whether there is consistency in terms of what MAS can do, as I mentioned earlier, for the individuals that we investigated, we could not find evidence to prosecute for criminal wrongdoing. Therefore, the sanctions that have been done are taken at the company or firm level. Yes, there are differences because there are differences in the actions that each individual took and these have to be case-specific. Firms have done different things − some have demoted; some have asked these individuals to leave but, across the board, the actions that these individuals have taken will be on the record and the industry, as a whole, has committed to a reference check so that, in future, should they apply for jobs within the industry, the actions that they did this time will be on the record and Page: 15 will be taken into consideration for future employment. That is the approach we have taken, taking into account the fact that there was not sufficient evidence to pursue further action on an individual basis.”
“I thank the Member for the three questions. Let me take them in turn. In terms of a sort of assurance of actual rates, especially if volatility were to be high, I think that is something that we will have to monitor. This idea or the principle of relying more on actual versus survey rates is a principle that I think, internationally, regulators have discussed and have endorsed this move towards using actual rates. Will it have an impact when the markets are more volatile, when there is lack of liquidity, and then how do you actually look at actual rates, because there are not enough trades in the market, I think that is an issue that is real. But it is something that we have to evolve as we go forward. It is an issue that is not just us confronting it but many other regulators are looking at that same issue. And that is also why, to answer the Member's second question, not all rates, not all benchmarks have moved to actual rates. For some benchmarks, we are still using survey data and that includes SIBOR. Likewise, we are not the only ones looking at this issue because, on some benchmarks where there are data, where there are actual transactions where the markets are liquid, we are using actual transacted data. For other benchmarks, we are still relying on survey submissions by banks. And SIBOR is one of them. Likewise, in other jurisdictions, they are moving step by step rather than doing a sort of conversion entirely. For SIBOR, even though it is still based on survey submissions, what we have done is to enhance the governance and look at improving the oversight mechanisms. And this was done with the Association of Banks and with that more robust system.”
“The last question again? I missed that. Page: 14”
“On the second point about which bank had the highest number of traders who tried to manipulate the rates, I would say that MAS has put out information according to groups of banks based on the severity of the attempts to inappropriately influence the benchmarks. That information has been put out – in terms of groupings of severity. The group of banks that ranked highest in terms of severity of attempts is public information – UBS, ING and RBS. That is out in the public domain.”
“Madam, I thank the Member for the follow-up questions. In terms of the severity of the actions taken by MAS and compared to what other regulators have done overseas – which was alluded to by the Member – I would say that MAS has, indeed, looked at what other regulators have done. We have looked at it and then adjusted according to the size of the markets. As I mentioned earlier, the estimated contract size referenced to Sing dollar benchmarks is only about 0.17% of the estimated size of contracts referenced to LIBOR and EURIBOR benchmarks. So, there have been some adjustments to take into account the different sizes of the markets. Other than that, we have looked at what other regulators have done in terms of financial penalties, and MAS has adjusted and calibrated our actions accordingly. MAS' actions are not in the terms of a fine but in terms of additional statutory reserves. This, in itself, as I mentioned in my reply, would impose a significant burden on the banks. MAS is unable to impose a specific fine because we do not regulate rate-setting activities today; neither do many other jurisdictions. In fact, the jurisdictions that impose the fine did not rely on their financial regulations to impose the fine. They relied on other legislations and regulatory measures to impose the fines. It was not through financial regulations. Page: 13 In our case, we have looked at whether the actions undertaken by these individuals were criminal. CAD and AGC had investigated thoroughly and we were unable to find sufficient evidence to prosecute. We have not taken any further action, but MAS has taken firm and appropriate action through the imposition of additional statutory reserves.”
“Besides the MAS regulatory measures, the industry also has an important part to play in enhancing the robustness of these benchmarks. In this regard, the Association of Banks in Singapore (ABS) and the Singapore Foreign Exchange Markets Committee (SFEMC) have announced measures to improve the robustness of the benchmark rates. These measures include enhancing the governance framework for benchmark rates setting, and changing the methodology used to determine certain benchmark rates so as to place more reliance on actual transactions. MAS welcomes these new measures. In sum, MAS has taken firm and appropriate supervisory actions against the banks, based on a careful assessment of their respective deficiencies. Its actions are proportionate to the scale of the misconduct uncovered, and reflect the smaller size of our markets. MAS' prompt supervisory response, together with the enhancements to the regulatory framework for setting key financial benchmarks, will safeguard the credibility and reliability of such benchmarks set in Singapore. Page: 12”
“Financial supervisors internationally generally do not share detailed information about supervisory dealings with the financial institutions they Page: 11 regulate. Nonetheless, in this instance, MAS was of the view that it would be in the public interest to name the banks involved and to give an indication of the seriousness of the lapses in each bank, MAS, therefore, announced on 14 June the supervisory actions that it took against groups of banks. Like other major jurisdictions, the setting of financial benchmarks is not a regulated financial activity. As financial benchmarks are typically developed by the industry in response to market needs, we have so far relied on industry self-governance of the activity. Hence, our regulatory frameworks do not provide for specific criminal or civil sanctions for the manipulation of such benchmarks. This is also the case in many other countries, which do not have the regulatory powers to comprehensively penalise rate-fixing activity. Going forward, however, in light of this and other recent experiences abroad, MAS will strengthen its regulatory powers and oversight of key financial benchmarks, including the SIBOR, SOR and FX Benchmarks. Legislation will be changed to prohibit the manipulation of any financial benchmarks and to introduce criminal and civil sanctions for such misconduct. Taken together, these changes will enhance the credibility of financial benchmarks in Singapore, and minimise the risk of benchmark manipulation. MAS is conducting a public consultation on the proposed regulatory framework and will finalise the framework taking into account feedback from the consultation as well as the evolving global regulatory standards.”
“Many banks dedicated substantial senior management time and financial resources to do the review. Their strong commitment to do the right thing showed that banks here believe in upholding the integrity of Singapore's banking system, its financial markets and its banking professionals. Nevertheless, MAS takes a serious view of the inappropriate behaviour by the traders involved and has censured the banks' senior management for failing to exercise proper governance and oversight and to institute robust rate submission controls and processes. While MAS has not named the line managers and traders involved, nor imposed individual sanctions on them, all of them have been subject to disciplinary actions by their employers, including termination of employment, loss of bonuses, or demotions. The banking industry has also put in place measures to facilitate reference checks, so that an institution would be made aware if a potential hire had been implicated in attempts to inappropriately influence benchmarks. MAS referred five cases to CAD for investigation. AGC and CAD considered whether any criminal offences were disclosed by such alleged manipulation of benchmarks. However, there was insufficient evidence to support any prosecution based on our existing criminal laws. Mr Ang and Mr Yee asked for more details about what MAS uncovered in its review. MAS found 20 banks with deficiencies in their governance, risk management, internal controls, and surveillance systems relating to submissions of financial benchmarks. These weaknesses allowed 133 traders to participate in attempts to inappropriately influence the submissions of financial benchmarks.”
“For example, the estimated contract size referenced to Singapore dollar benchmarks is less than 0.2% of that which is referenced to LIBOR. The additional statutory reserves also serves as an incentive for the banks to put in place the necessary control measures required by MAS. MAS may vary the duration that the additional statutory reserves are to be placed with MAS, depending on its assessment of whether the remedial measures put in place by each bank are adequate. If any of the banks fail to comply with MAS' directives, MAS can impose other penalties, including fines. Ms Foo and Mr Yee asked about the impact of the traders' actions on financial markets and consumers. While the investigations found clear evidence of discussions and agreements to influence benchmark submissions, there was no conclusive finding that the traders had succeeded in manipulating the actual financial benchmarks, or that their attempts have had any unidirectional impact on the financial benchmarks applicable to consumers. Assoc Prof Tan asked if MAS would be taking any actions against the traders involved, while Mr Ang asked if the banks' senior management were Page: 10 aware of their traders' misconduct. Mr Yee Jenn Jong also wanted to know the number of cases that MAS had referred to the Commercial Affairs Department (CAD) and the Attorney-General's Chamber (AGC). Let me clarify on these issues. While a few line managers were aware of attempts to inappropriately influence benchmark submissions, MAS did not find evidence that the banks' senior management were aware of their traders' misconduct. In fact, the banks' senior management took the MAS-initiated review seriously and co-operated fully with MAS.”
“I thank Mr Ang Wei Neng, Ms Foo Mee Har, Mr Yee Jenn Jong and Assoc Prof Eugene Tan for their questions on MAS' supervisory actions against banks with regard to the attempts by some traders to influence the setting of local interest rate and foreign exchange benchmarks. MAS carried out its review of the benchmark submission process, on an industry-wide basis, and calibrated its supervisory actions against all 20 banks, Page: 9 taking into account three factors: first, the number of traders within the bank who attempted to inappropriately influence the benchmarks; second, the number of banks with which the traders had collaborated, and, third, the number of times these attempts occurred. MAS has censured the banks involved and directed them to adopt measures to address their deficiencies. The banks must report their progress to MAS on a quarterly basis and conduct independent reviews to ensure the robustness of their remedial measures. The banks have started implementing the remedial actions as directed by MAS. Nineteen banks have also been required to set aside additional statutory reserves with MAS for a period of one year. The imposition of additional statutory reserves represents a financial cost to the banks, in terms of the borrowing cost or the income foregone as they would have to place these reserves with the MAS at zero interest. In considering the level of additional statutory reserves to be imposed on the banks, MAS had taken into consideration the amount of penalties imposed by other regulators for deficiencies in the setting of the London Interbank Offered Rate (LIBOR) and Euro Interbank Offered Rate (EURIBOR) benchmarks. At the same time, MAS also took into account the smaller size of our financial markets compared to those in the major economies.”
“The Sportsman of the Year is part of the Singapore Sports Awards, which is a programme of the Singapore National Olympic Council (SNOC). SNOC is a non-government organisation affiliated with the International Olympic Committee. It forms a Singapore Sports Awards Selection Committee to select the award winners. This Selection Committee comprises sports administrators, athletes and sports journalists. SNOC informs the National Sports Associations (NSA) of the criteria for the Sportsman of the Year Award when they invite them to submit nominations. The NSAs nominate Page: 115 athletes for consideration by the Selection Committee, whose decisions are final. The Selection Committee considers various factors, such as the sporting achievements of the athlete, the level of and standard of competition, and whether the athlete has been an outstanding role model or if his performance was particularly inspiring to the nation. Standards for the top awards, such as the Sportsman of the Year, are high given the rising sporting standards and achievements in Singapore. Indeed, this is the not the first year that the Selection Committee has not awarded the Sportsman of the Year. There were also no awards in 2009 and 2010. I am confident that the Selection Committee has deliberated every nomination carefully based on its merits. We should respect the decision of the Selection Committee. At the same time, I encourage our athletes to continue to work hard, to raise their standards and achievements, and do themselves and Singapore proud.”
“The Sports Hub is hence structured as a Public-Private-Partnership, where SSC pays an annual unitary payment to Sports Hub Pte Ltd for financing, designing, building and operating the project. For the Changi Motorsports Hub project, SSC has not incurred any costs beyond what it would normally incur for such a tender. In the initial tender exercise, SG Changi had reimbursed SSC's professional advisors' fees. Any post-termination costs in respect of or relating to the site, such as the depreciation cost of the site, the cost of upkeeping the site and the reinstatement of the site will be extracted from the eventual partial refund to SG Changi after the land is returned to the State. We should recognise that Changi Motorsports Hub was all along intended as a commercial and not a public venture, and companies, in bidding for such projects, were expected to be diligent in managing their own risks. While the termination of the project was primarily due to the inability of SG Changi to raise funds, we have learned to be more circumspect about the financial strength and possible financing challenges faced by bidders in awarding future tenders.”
“As a general policy, the Government provides funding for the development of public sports facilities to meet the needs of the general public and the development of our national athletes, and where there is market failure. For motorsports, the Singapore Sports Council (SSC) and other public agencies concluded through a market study in 2007 the feasibility of a fully private sector funded motor sports facility in Singapore. SSC then launched a public tender to develop and operate the Changi Motorsports Hub as a fully private sector project. The tender attracted three bids. The winning bidder of the tender, Singapore Changi, committed to develop the facility at its own costs according to terms and conditions agreed with SSC. It later found itself unable to secure the necessary funds to continue with the project, after paying for the land, leading to SSC's termination of the contract with Singapore Changi. To decide if the site should be re-tendered, SSC conducted a request-for-information exercise to assess the current market interest, since the initial market study was done some years ago. In this latest exercise, interested parties all asked for either Government subsidies or concessions to make the project commercially attractive. Considering the limited outreach to general public and community impact, and in consultation with other Government agencies, we concluded that it would not be a good use of public funds to accede to these proposals. Page: 114 I wish to explain that this project is very different from the Sports Hub which is meant to be a national facility that serves the sporting and recreational needs of the general public and high performance athletes across many sports.”
“Since 2008, 12 owners or tenants of National Monuments have tapped on the Tax Exemption Scheme for donations. To date, about $4.5 million has been raised, and, correspondingly, about $10.5 million worth of tax exemptions have been granted. The scheme has helped owners raise funds for necessary restoration works, such as structural repairs to roofs and walls, to ensure that the integrity of our National Monuments remains protected. The Cathedral of the Good Shepherd, Siong Lim Temple, Sri Mariamman Temple and Abdul Gafoor Mosque are some of the Monuments that have benefited from this Tax Exemption Scheme. In addition to the Tax Exemption Scheme, the Preservation of Monuments Board (PMB) also launched the National Monuments Fund (NMF) in 2008 to further assist National Monument owners with the costs of restoration or extraordinary repairs beyond the scope of normal maintenance. Since its launch, a total of $3.6 million has been disbursed. The PMB makes use of various platforms, such as its annual tea session with Monument owners, to encourage applications for the NMF or Tax Exemption Scheme. The PMB also uses periodic monitoring and site inspections to help identify monuments which require restoration, and to identify suitable candidates for grant application each year. In addition to financial assistance through the various schemes, the PMB also provides assistance to Monument owners on various other aspects of the restoration process, including technical advice on the restoration works, as well as general advice on issues, such as fund-raising and internal coordination. The PMB will continue to promote the NMF and Tax Exemption Scheme to owners of National Monuments and work with them to preserve and enhance our National Monuments.”
“The National Monuments Fund (NMF) was launched in 2008 to assist National Monument owners with the costs of restoration or extraordinary repairs beyond the scope of normal maintenance. The NMF has received a total of 13 applications for funding. All 13 applications were successful. We recognise that the NMF provides valuable support to monument owners to maintain and protect their buildings and sites, which have significant heritage value to Singapore. The scheme has been extended to cover monument repairs in 2013. We are studying whether to further extend the scheme beyond 2013.”
“Food is something that resonates with many Singaporeans. It is an important part of our shared heritage. The National Museum has a Food Gallery which showcases our local food culture through audio-visual installations and displays of the everyday tools used to prepare local foods. It is one of the most popular galleries in the museum with children, adults, locals and even foreigners. Beyond the National Museums, NHB also showcases our food heritage around the island through travelling exhibitions. These exhibitions trace the origins of Singapore's signature dishes, and showcase famous food venues of the past and their evolution. We also have heritage trails, which highlight significant food finds in the different communities. For example, the Ang Mo Kio Trail highlights well-loved hawker stalls, including Ang Mo Kio's favourite fish soup, prata, mee rebus, satay bee hoon and kway chap stalls. NHB has also supported the publication of many food-related books, including one by food blogger Dr Leslie Tay, the person behind the very popular ieatishootipost blog. My Ministry, as well as NHB and its museums, will continue to do our part to promote and celebrate our local food culture. We see this as an important aspect of our intangible heritage. But this cannot just be the work of Government agencies. It is a shared responsibility. So, I would like to encourage companies and all food enthusiasts to also chip in and help to keep alive our uniquely Singaporean food culture.”
“There are a total of 358 sports administrators working in National Sports Associations (NSA). These comprise administrative and secretariat staff, as well as those involved in the high performance sports system, such as technical directors and coaches. Funding for the manpower costs associated with these administrators account for $16 million, which is about 50% of the direct cash grants that NSAs receive from Singapore Sports Council (SSC) annually. This constitutes about 7% of the total annual sports operating budget, excluding the Sports Hub. How much funding each NSA receives for manpower costs is determined based on a market benchmark which SSC uses for its own staff. However, this is for budgeting purposes only and the specific salaries of the NSA sports administrators are decided by each individual NSA, several of which supplement salaries using funds raised through corporate sponsorship.”
“The direct impact of the banking crisis in Cyprus on Singapore is unlikely to be significant. Banks in Singapore have negligible exposure to Cyprus. In addition, as Cyprus accounts for only 0.2% of the Eurozone’s GDP, its direct impact on the global economy is minimal. However, we must remain vigilant to risks of contagion from Cyprus or any of the other peripheral economies in the Eurozone, especially given the continued financial strains faced by these economies. Contagion risks combined with policy uncertainty can lead to renewed financial stresses in the broader Eurozone. Financial institutions in Singapore are subject to high standards of regulation and supervision. Our financial system has thus far remained resilient despite the crisis in the Eurozone. Liquidity conditions are sound and funding markets are functioning well. MAS, however, continues to closely monitor developments in the external environment and any possible impact on Singapore's economy and financial system.”
“The Youth Expedition Project (YEP) is a flagship programme of the National Youth Council (NYC). It aims to nurture socially responsible youths who contribute to the community both at home and abroad. Over the past five years, NYC has utilised around 95% of the funds allocated to the YEP programme. This has supported around 900 Youth Expedition Projects, benefiting over 1,700 youth leaders and 18,000 youths. There has been strong demand for the YEP, and an average of 40 more projects have been supported every year. With the establishment of the National Youth Fund, MCCY and NYC will review whether more funds can be allocated to support the YEP so that this meaningful programme can be made accessible to more youths.”
“I thank the Member for the questions. I do have not the details on the penalties now but I think we can provide the information and I agree with her that we should certainly raise awareness that there are penalties. There is a system in place that people can check on the licences. It is very convenient – send an SMS, the number is 74688 and you can check whether the licence is valid. We will put up more information on how people can do that. There is a charity portal. Check the charity portal. You can get information on the permits and where the fund-raising activities are being held. This is the information we can put out more to raise public awareness to do their own checks and then as a deterrent measure, as the Member had said, we can highlight what the punishments are. There are penalties in place. I do not have the details but I would be happy to share them separately. 3.00 pm”
“The financial commitment would largely remain the same. In terms of funding, the Government remains committed to funding the Arts Festival as it had done in the past. Of course, in the past, NAC would also raise funds from sponsors. Similarly, in the new arrangement, we would expect the company to raise funds from sponsors as well. In terms of the Government's commitment of funding, in the past, it was to NAC; now, it is to the new company. But that funding level will remain unchanged. And we would hope that besides Government funding, the new company would also be able to do more to raise funds from other sources, which NAC had done as well. Hopefully, with the new company, with new management, they can also do more to raise funds from other sources.”