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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“] This is a tax credit with a refundable cash feature. It will support high-value and substantive economic activities, including the setting up or expansion of manufacturing facilities; new innovation and R&D activities; as well as activities in support of the green transition. Essentially, this new tax credit will help us to stay competitive and attract investments from global companies with the right know-how and create good jobs for Singaporeans. To support this and other investment promotion efforts, I will top up the National Productivity Fund by $2 billion this year. Besides anchoring new investments, we must build on our existing strengths and upgrade the sectors where we have competitive advantages. These advantages did not come about by chance. They are the result of many decades of hard work to restructure and upgrade our economy. We did not just keep costs competitive. We also enhanced our capabilities and moved up the value chain, so as to justify the higher premiums for operating out of Singapore. And we are pressing on with these restructuring efforts through the Industry Transformation Maps. Take semi-conductors as one example. Singapore is not the cheapest location worldwide. But we have many things going for us – our excellent connectivity, our reliability and stable business environment, and also a critical mass of leading companies based here, and they operate across the value chain, from design, to wafer fabrication, to assembly and testing. The companies here do not produce cutting-edge 3 nm chips, which you will read about in the media these days. But they have carved out a niche in other types of chips, like specialty chips and NAND flash memory chips.”
“We will not be able to afford the social services we need. And in the end, lower-income workers and families will be hit the hardest. We therefore make no apology for pursuing growth. To be clear, we are not going for growth at all costs. There is a limit to how fast we can grow due to the tighter constraints we face in land, labour and carbon. But by focusing on productivity and innovation, we can push the frontier and grow at an average of about 2% to 3% each year over the next decade. This is an ambitious goal given our stage of economic development. But we must aim high, so that Singapore keeps moving forward, and our people continue to enjoy more opportunities and a better quality of life. A crucial enabler for growth is our ability to attract high-quality and high-value investments to Singapore. Because such projects bring the latest know-how and capabilities, and create good jobs for Singaporeans. So far, our investment pipeline has been healthy. Despite a challenging external environment last year, the Economic Development Board (EDB) exceeded its targets, and brought in investments which are expected to create over 20,000 new jobs. But the competition for investments is getting tougher. Governments around the world are rolling out vast subsidies to attract investments, especially in strategic industries. For example, in November last year, Japan announced that it would allocate ¥2 trillion, or about $18 billion, to support its semiconductor industry. We cannot afford to engage in a “bidding war” with the major economies. But neither should we stand still and just do nothing. We will therefore enhance our investment promotion toolkit by introducing a new Refundable Investment Credit. [Please refer to Annex C-1.”
“The Credit provides additional support for eligible employers to cover their out-of-pocket expenses when they embark on workforce and business transformation. With this extension, employers will have another year to claim any unused credit. The measures in this Enterprise Support Package are tilted towards firms that make the effort to restructure and transform. I encourage all firms to make full use of these schemes, so that they can thrive and succeed, amidst a more challenging operating environment. [Please refer to Annex B-2.] The enhanced Assurance Package and the Enterprise Support Package will provide some near-term relief to Singaporean households and firms. These are needed during this difficult period when inflation, while moderating, remains on the high side. But they are not permanent solutions. In the longer term, the best way to deal with inflation is to ensure that our firms and workers are more productive, and that real incomes continue to rise sustainably. Our key priority is to ensure a strong, innovative and vibrant economy. This is absolutely essential to secure good jobs and better lives for all Singaporeans, and on a sustained basis. Since our early days of independence, we have been able to defy the odds and consistently achieve good economic performance. But we cannot afford to be complacent, especially in a more complex and volatile external environment. In past years, some had suggested that Singapore should slow down, do not have to grow so quickly. Indeed, that happened last year – our economy grew by just about 1%. But if we were to experience similarly slow growth for several years in a row, we will be in trouble. We will have no chance of improving our collective wellbeing. Singaporeans’ living standards will be dented.”
“A middle-income household of four, with two young children, will receive about $3,000 in benefits. A middle-income household with six persons – a larger family – including two seniors and two young children, will receive about $8,000 in benefits. Sir, these are concrete ways to help Singaporeans tackle cost of living pressures. Let me assure everyone – we will always have your backs. [Applause.] Beyond the Assurance Package, I will top up the Good and Services Tax (GST) Voucher Fund by $6 billion. This delivers on our commitment to permanently defray GST expenses for lower- and middle-income households, through the GST Voucher scheme. Businesses also need help to manage rising costs. Many companies have seen increases in their wage bills, rental, and utilities, amongst others. I will therefore introduce an Enterprise Support Package, which will provide $1.3 billion in support to companies. First, companies will receive a 50% Corporate Income Tax Rebate, capped at $40,000, in the Year of Assessment 2024. Not all companies are profitable, and some may not benefit from such a rebate. So, I will provide a minimum benefit of $2,000 in cash payouts for companies that employed at least one local employee in 2023. Second, I will enhance the Enterprise Financing Scheme, which helps Singapore enterprises with their financing needs. The maximum working capital loan quantum will be permanently raised to $500,000. I will also extend until 31 March 2025 the enhanced maximum trade loan quantum, as well as the Government’s risk sharing of project loans to support domestic construction projects. Third, I will extend the SkillsFuture Enterprise Credit by a year to 30 June 2025.”
“So, in this Budget, I will do more to support households and further enhance the Assurance Package. First, I will provide an additional $600 in Community Development Council (CDC) Vouchers for all Singaporean households. The first $300 will be disbursed in end-June this year, and the remaining $300 will be disbursed in January next year. Second, I will provide a Cost-of-Living Special Payment of between $200 and $400 in cash. This will be extended to adult Singaporeans with Assessable Income of up to $100,000, and who do not own more than one property. Third, I will provide additional one-off U-Save rebates to help HDB households cope with increases in their utility bills. In total, eligible HDB households can expect to receive two-and-a-half times the amount of regular U-Save rebates, or up to $950, in FY2024. This will cover about four months of utility bills for those living in 3- and 4- room flats. Fourth, I will provide an additional one-off Service and Conservancy Charges (S&CC) Rebate for HDB flats. Together with the regular S&CC rebates, eligible Housing and Development Board (HDB) households will receive up to four months of such rebates in FY2024. Altogether, the additional support under the Assurance Package will cost $1.9 billion. [Please refer to Annex B-1.] We have designed the Assurance Package so that lower-income families get more support. We have also ensured that larger households, particularly those with seniors and children, get more support. Let me give some illustrations. A lower-income household of four, with two young children, will receive about $5,500 in benefits in FY2024. This comprises cash, MediSave top-ups, U-Save and S&CC rebates, and CDC Vouchers.”
“We can build a nation that is vibrant and inclusive, fair and thriving, resilient and united. We have an ambitious agenda to achieve these shared goals. We have major plans to unfold over the coming years. Some are ready to be implemented now. Others will require more time to study or to work out the implementation details. In this Budget, we will roll out the first instalment of our Forward Singapore programmes. Budget 2024 is therefore about taking concrete steps to build our shared future together. We will: (a) tackle immediate challenges for households and businesses; (b) pursue better growth and jobs, and equip our workers for life; (c) create more paths for equality and mobility; (d) provide more assurance for families and seniors; (e) and ultimately, forge a stronger and more united nation. I will touch on each of these in turn in the rest of my speech. We have enjoyed low inflation in Singapore for more than a decade. But inflation rose sharply in 2022, following the outbreak of the war in Ukraine, which led to significant increases in global energy and food prices. Despite the unprecedented surge in prices, we had good economic growth in 2022. So, incomes that year rose faster than inflation and Singaporeans were better off, in real terms. Unfortunately, this did not happen last year. Inflation had in fact started to moderate. But economic growth also slowed. As a result, real incomes declined. We had picked up early indicators of this negative trend. And that is why I introduced the Cost-of-Living Support Package in September last year and enhanced the Assurance Package to over $10 billion. While we expect the situation to improve this year, there are uncertainties in the outlook, as I mentioned just now.”
“Besides lower inflation, we expect higher gross domestic product (GDP) growth at 1.0% to 3.0%. But there is considerable uncertainty in the outlook and the risks are tilted to the downside. The international environment has darkened dramatically. The post-Cold War era that began in the early 1990s and fostered three decades of peace and stability is over. We are now in a new era of conflict and confrontation, and there is no turning back. What can we expect in this new world? It will be more violent. We already see a growing zone of impunity involving armed conflict and terrorism that cannot be easily resolved by the global community. It will be more fragmented. Because the major powers are prioritising national security over economic interdependence, and traditional modes of cooperation are breaking down. It will be messier and more unpredictable. Because there will be diminished willingness and capacity to tackle global issues, be it responding to future pandemics or tackling climate change. These are the stark realities before us. For some time to come, Singapore will have to operate in an external environment that will be less stable and favourable to our security and prosperity than the preceding three decades. That is why we embarked on the Forward Singapore exercise – to refresh our social compact to keep our society strong and united, and to set out a roadmap for our way forward in this very troubled world. Through Forward Singapore, we aim to give more assurance to help Singaporeans navigate the uncertainties in today’s world; strengthen our sense of cohesion and solidarity; and keep our society together. For as one united people, we can overcome all odds. We can turn every challenge into opportunity and every vulnerability into strength.”
“Mr Speaker, Sir, I beg to move, "That Parliament approves the financial policy of the Government for the Financial Year 1 April 2024 to 31 March 2025." Mr Speaker, Sir, I beg to move, "That Parliament approves the financial policy of the Government for the Financial Year 1 April 2024 to 31 March 2025." The past year has not been easy. The international environment was troubled. The global economy was subdued. Our economy grew by a modest 1.1%, avoiding a recession. I know that many households are feeling the pressure of higher living costs. Fortunately, we had some unexpected revenue upside from our strong economic rebound in the preceding two years. And this is why the Government was able to enhance its assistance measures to relieve the burden on households. For 2024, the outlook is mixed. Growth in the major economies on the whole is expected to remain resilient. But geopolitical risks continue to loom large. Wars are raging in Europe and the Middle East. These conflicts can escalate dangerously, leading to disruptions in global energy markets and supply chains. Fortunately, there are some upsides. Global inflationary pressures are expected to recede further. This may provide some room for the major central banks to adopt more accommodative stances, which may ease financial conditions and support demand. The global electronics industry is expected to recover. This will bolster the growth of many regional economies, including our key trading partners. Meanwhile, Asia continues to be a key driver of global growth, with a wider spread of opportunities across the region – not just in China, but also in India and many parts of Southeast Asia. On the whole, we are cautiously optimistic that 2024 will be a better year.”
“The Government's support for households should be viewed holistically across multiple schemes, which work together to provide help where it is most needed. The Community Development Council Vouchers scheme is a simple, broad-based scheme designed to help all Singaporean households cope with daily expenses and rising cost of living. We have other schemes that provide help on an individual basis and would, therefore, ensure more support for larger households. For example, every adult Singaporean received cash payments of up to $800 in December 2023. This month, eligible Singaporean seniors will receive up to $300 in Seniors' Bonus, while seniors and children will receive $150 in their MediSave. The Government will continue to regularly review how our support measures can better support Singaporeans, including those from larger households.”
“Social support schemes which disburse benefits automatically make use of administrative data available to the Government to disburse the benefits accurately. In 2023, there were about 20,000 enquiries and appeals for the Goods and Services Tax (GST) Voucher scheme. The vast majority of disbursements are accurate. But adjustments were made to the amount disbursed for some cases, due to changes in the individuals' latest circumstances. We strive to keep our data accurate and updated. But there is a small proportion of cases where adjustments have to be made. These are discovered through internal audits, audits by the Auditor-General and also feedback from the public. For example, in its financial year 2021/2022 report, the Auditor-General's Office identified 3,166 ineligible Housing and Development Board households which received the GST Voucher – U-Save, or about 0.3% out of more than 950,000 eligible households. In such cases, we would rectify the errors and do a thorough review to tighten our operational processes. We have also encountered a small number of cases of erroneous payouts due to fraud. The Government remains committed to upholding high standards of accountability and integrity. We have zero tolerance for fraud. Any potential offences will be thoroughly investigated and referred to the Police if there are grounds to do so.”
“The Government supports Singaporeans through all phases of life. Much of this support is in the form of subsidies which Singaporeans receive automatically when they access public goods and services, such as education, healthcare and housing. In addition, there are various targeted support schemes and services across multiple domains, such as children and youths, work and learning, seniors and disability support. Information about these schemes is available on the SupportGoWhere portal (supportgowhere.life.gov.sg). There are around 60 schemes, with slightly more than half requiring applications. Where feasible, social support schemes are disbursed automatically when the qualifying criteria are objectively quantifiable and administrative data is readily available for the Government to disburse the benefits accurately. The reasons why some schemes require applications vary. Schemes, such as ComCare, require holistic assessments of the individual or household's needs so that the relevant agencies can provide the appropriate level of support based on the individual or household's circumstances. Other schemes, such as the Home Caregiving Grant, require a disability assessment to qualify a recipient for the grant.”
“Mr Speaker, it still resides in MOH. The coordination office and function are in MOH. But rest assured that it will be empowered to effectively coordinate across the whole-of-Government. 2.08 pm”
“We want everyone on board, so we learn together and continue to finetune our strategies based on your feedback and ideas and our shared experiences and insights. Together, let us build a Singapore where everyone matters, where everyone has a place and where everyone belongs. Together, hand-in-hand, let us improve the mental health and well-being of all Singaporeans. Mr Speaker, I support the Motion. [Applause.]”
“The Government is making policy moves in this direction by reviewing our education system, narrowing wage gaps and strengthening safety nets, so that everyone can be better assured of their basic needs at every life stage and can have the space to venture forth and be the best version of ourselves. But we cannot make this happen through policy alone. Our attitudes, our mindsets must also change and align with our shared aspirations for a refreshed Singapore Dream. Indeed, to achieve all of these goals, we must work together. There are many ground-up initiatives and community and social services organisations already working in different ways to meet the mental health and well-being needs of Singaporeans. I know from personal experience, having served as Patron to the Samaritans of Singapore for more than 10 years. I have interacted with many of the volunteers there and seen first-hand, their commitment and dedication to save lives. We value the collaborations and partnerships with all of you. Through the SG Mental Well-being Network, we have been linking up with many groups and volunteers to address the diverse needs of our people, be it befriending lonely seniors or providing a safe space for youths to talk about their mental health struggles. The setting up of the National Mental Health Office will enable us to coordinate these partnership efforts more effectively and to better synergise and maximise our efforts on the ground. I call on all Singaporeans, who are passionate about this issue of mental health and well-being, to join us in this national movement. We have lots to do and a full agenda ahead of us. The Government has set out clear plans and deliverables. But the issues are complex and we do not have all the answers.”
“Sir, the Government is fully committed to doing more to improve mental health and well-being. But for all these plans to work, we also need to change our attitudes and mindsets. We need to do more to destigmatise mental health conditions so that people do not hesitate to seek help. Stigma reduces a complex and difficult problem into unhelpful labels and stereotypes. It opens people struggling with mental health to discrimination, such as in the job market. It may cause them to be socially ostracised. It makes them feel ashamed, isolated and stops them from seeking treatment. As I mentioned just now, we do see attitudes shifting. But the stigma remains and we can do much more to build a society where we help one another cope with life's stressors, are considerate of one another's feelings and carve out safe spaces for them. We also need to change our mindsets about what we consider success in life. It is good to have a culture in Singapore that values hard work, promotes excellence and encourages everyone to aspire and strive to do better. But we should not be unwittingly drawn into a rat race of hypercompetition and endless comparisons with one another just to get ahead of others, but end up worse off as a society. In fact, this was one of the key points from our Forward Singapore engagements. The vast majority of Singaporeans wish to see a more inclusive Singapore Dream. One where we are not pressured to conform to narrow definitions of success, where we embrace excellence and talents across many different areas and find meaning and purpose in what we do.”
“Several Members also spoke about private insurance coverage outside of healthcare, including in areas like life insurance. Life insurers in Singapore have, in fact, offered coverage to persons with mental health conditions. But the underwriting of such persons can be a complex matter, as our own data is limited and insurers here typically reference the underwriting guidelines of global life reinsurers. We will study and review how this coverage can be improved and ensure that financial institutions deal fairly with all their customers, including those with mental health conditions. Importantly, we will have a bigger focus on preventive care, so that everyone can take proactive steps and take charge of their own mental health. We will start young in schools. We want our children to develop good cyber habits, so they learn to use the Internet and social media safely and responsibly. To be clear, our approach is not to remove all stress. That is not going to help our children. Instead, we want our children to learn to deal with stress at age-appropriate levels. We want them to develop self-belief and resilience and grow up with the confidence to tackle challenges, stresses and demands that they will surely encounter later in life. We will continue to integrate mental well-being into our Healthier SG and other preventive health programmes. We sometimes think of body and mind as separate entities, but they are closely linked, each affecting the other greatly. Staying active; exercising regularly; connecting with friends in person, not online; learning new skills; contributing to a larger purpose. All these sound like commonsensical advice, but they are not so easy to do and they are foundational habits that will enable all of us to improve our overall well-being.”
“The Ministry of Education (MOE) is on track to achieving its target of deploying more than 1,000 teacher-counsellors across our schools. This is on top of the basic counselling skills that all teachers will be trained in as well as the one to two counsellors that every school will have to support students with more challenging social and emotional needs. We will provide parents with resources to support their children's mental health and well-being needs. We will establish more peer support networks in the community, including in schools, institutes of higher learning (IHLs), workplaces and amongst our national servicemen. These networks will have trained peer leaders who can spread the message on the importance of mental health and provide a first-line response to their friends or colleagues who need help. My colleagues, Senior Parliamentary Secretaries Rahayu Mahzam and Eric Chua, Minister of State Gan Siow Huang and Senior Minister of State Janil Puthucheary, will elaborate later on some of these areas. These are significant moves. They will require more coordinated efforts across the Government – more training, people and, ultimately, Government spending. But we will set aside the resources to advance this important agenda. Through these moves, we aim to reduce waiting times and make mental health services more accessible and closer to where individuals are, be it at homes, schools or workplaces. We aim to keep mental health services affordable and we will do so through our national healthcare financing framework of Government subsidies and the 3Ms – MediSave, MediShield and Medifund – which will cover all cost-effective mental health treatments. Importantly, no one in Singapore will be denied access to appropriate care because of an inability to pay.”
“All of which are important for healthy brain development at a young age. But other researchers think that there is more to it. That it is not just about more online safeguards, that we also need to loosen up in the real world and give our children more space for free play and autonomy. Because when children have less room to play and explore or to interact and build social skills at an early age, they are also less likely to grow up with the sense of independence and confidence to take charge of their own lives. The bottom line is that more work will need to be done to better understand what has changed globally in recent years. It is an area that requires further research and study to identify the key causal factors and the interplay between the factors, so that we can design and put in place appropriate interventions, based on data and evidence, to better help our young people. These are some of the considerations behind our national strategies. Let me highlight quickly several key moves we will be making, with several targets we aim to achieve by 2030 or earlier. We will increase capacity at IMH and the redeveloped Alexandra Hospital for those that need specialist care. Capacity at long-term care facilities will also be increased to provide step-down care for those who need it. We will increase the number of public sector psychiatrists and psychologists by about 30% and 40%, respectively. We will introduce mental health services to all polyclinics and 900 more GP clinics. We will equip and train an additional 28,000 frontline personnel and volunteers. They serve across our community and social service touchpoints, so they can identify people struggling with mental health and offer early assistance. We will also redouble our existing efforts.”
“Teenage angst has always been part of the growing up process. Teenagers have to learn about themselves, take on new responsibilities and prepare for adulthood. But something has changed around the world. Since around the early 2010s, because the current generation of young people are expressing more concerns about their mental health than previous cohorts, many countries have reported increases in suicidal ideation as well as mental health conditions, like anxiety, and depression, amongst their youths. Last year, the US Surgeon-General called the increasing mental health needs of US youths as the "defining public health crisis of our time". Even the Nordic countries, consistently ranking high in global happiness and well-being surveys, they, too, are reporting rises in youth anxiety, depression and a variety of mental illnesses. So, we see a similar trend in Singapore. It is not at the same high levels as some other countries, where the mental health issues are conflated with other difficult issues, like drug abuse, homelessness and street violence. But it is, nevertheless, a worrying trend and we are taking it seriously. So, we are linking up with researchers from around the world to try and understand the root causes behind this recent surge in youth mental health issues. Some think that heavy social media usage is a major cause. Indeed, the constant pressure to present a positive image online, the fear of missing out, the algorithms that flood news feeds with stories that are designed to spark outrage and the issues of cyber-bullying. All these can take a toll on one's mental health. Furthermore, the more time spent on the Internet or social media means more sleep deprivation, less physical exercise and less real-life interactions.”
“So, let there be no doubt: the Government is making mental health and well-being a key priority in our national agenda. To understand the approach in this new strategy, we must, first, appreciate the full range of mental health issues. On one end of the spectrum are mental health issues that require medical treatment, like bipolar disorder and schizophrenia. These conditions can be debilitating, severely affecting a person's ability to carry out important daily activities. On the other end of the spectrum are issues affecting mental well-being, like anxiety and stress. While these typically do not require medicalisation, it does not mean that we should take them lightly. If not addressed well, poor mental well-being can also affect our ability to lead our lives productively. Because mental health issues lie on a spectrum, it means we need a broad suite of solutions. Not all mental health issues need to be treated in a specialist healthcare institution. It is the same when we have a physical ailment. We do not go to a specialist for treatment immediately when we experience some symptoms of ill-health. Instead, we see our family doctor first. If it is more serious, the matter gets referred to specialist care. So, improving mental health is not just about hiring more psychiatrists or building more capacity at IMH. We will certainly do that. But we also need to strengthen capabilities across our entire spectrum of care, including at our polyclinics and GPs and across other settings, like schools, workplaces and in the community, so that more timely support can be rendered to those in need. In our strategy, we are redoubling our efforts to better understand the issues that young people face, something that many Members spoke about. It has never been easy to be a teenager.”
“Mr Speaker, I rise in support of the Motion and I thank Dr Wan Rizal, Mr Edward Chia, Ms Mariam Jaafar, Dr Tan Wu Meng and Mr Yip Hon Weng for moving this Motion as well as all Members who have spoken passionately about the issue. Mental health has grown in importance, both in Singapore and across the world. In the past, people dealt with mental health issues privately. It was always in the shadows and not something we talk about publicly. In recent times, attitudes have shifted, for the better. People are more informed about mental health and more willing to talk about this openly. COVID-19 also brought mental health issues to the forefront. Because across the world, people had to cut back social interactions and isolate themselves from family and friends. And this took a toll on mental health. It happened in Singapore too. After the circuit breaker was introduced, we observed an increase in the utilisation of mental health services and more calls to the Institute of Mental Health's (IMH's) mental health helpline. That is why we set up the COVID-19 Mental Wellness Taskforce, which later became the Interagency Taskforce on Mental Health and Well-being, chaired by Senior Minister of State Janil Puthucheary. The work of the Taskforce builds on previous national efforts to improve the quality and accessibility of mental health services in Singapore. The Taskforce has published the National Mental Health and Well-being Strategy, which sets out concrete plans to plug existing gaps and to strengthen our mental health ecosystem. We will now translate these plans into action. Our plans are not static. We will continue to evolve and update them, including taking on board the many useful suggestions from Members in this debate.”
“Banks are allowed to adopt Singpass services, such as Myinfo, to obtain and verify their customers' personal particulars. This has been widely implemented for online banking channels. The extent of adoption at bank branches varies and depends on individual banks' considerations, such as the profile of branch customers and their respective preferences and the extent of information technology integration needed. The Monetary Authority of Singapore encourages banks to integrate Singpass services into their branch systems so that customers have a choice between digital and physical identity card verification at branches.”
“The Singapore General Insurance Code of Practice is issued by the General Insurance Association of Singapore (GIA) and sets out guidelines and standards as best practices for its member insurers to follow. Paragraph 6.2 of the Code relates to GIA member insurers’ commitment to process claims on a timely basis, with service standards stated therein. If a GIA member has not fulfilled its obligations with the Code, the policyholder may refer the matter to GIA. The Monetary Authority of Singapore (MAS) in its Guidelines on Risk Management Practices for Insurance Business establishes supervisory expectations for all insurers to set out clear procedures for notification, assessment and settlement of claims, and monitor the claims handling process. MAS expects insurers to have in place an internal dispute resolution process to handle all consumer complaints and feedback independently, effectively and promptly. As part of MAS’ ongoing supervision of insurers, complaints received from consumers relating to non-adherence of disclosed service standards will be referred to the relevant insurer to handle and MAS will track that an appropriate response is provided to the consumer.”
“This question will be answered in the reply to Mr Pritam Singh's Parliamentary Question filed for the Sitting on or after 6 February 2024. [Please refer to "Expected Additional Property Tax Collections Following November 2023 Announcement of Increase", Official Report, 6 February 2024, Vol 95, Issue 121, Oral Answers to Questions section.]”
“In 2022 and 2023, the Inland Revenue Authority of Singapore (IRAS) received a total of 23 appeals from singles purchasing a replacement private property for remission of Additional Buyer's Stamp Duty. Each case is considered carefully and holistically, based on its facts and circumstances. The majority of these appeals were approved as they involved extenuating personal circumstances, such as a need to purchase a replacement property for themselves and their child shortly after their spouse's demise.”
“The Monetary Authority of Singapore (MAS) does not collect the requested data. As stated in the response to a Parliamentary Question in January this year, deposit rates are set competitively in the market. Apart from basic savings accounts, consumers can choose from a range of other savings and fixed deposit products – with higher interest rates – offered by banks.”
“The total amount lost to scams can be obtained from the bi-annual scam statistics published by the Singapore Police Force, which are derived from police reports filed by victims. There is no regulatory requirement for financial institutions to report the amounts lost by their customers to scams, to the Monetary Authority of Singapore (MAS) or other authorities, as MAS has access to the data needed for supervision.”
“Individuals convicted of corruption involving a public officer, in connection with a Government contract, will be debarred from being awarded new Government procurement contracts for a period of time. The debarment may also be extended to companies or businesses on which the convicted individuals serve as directors, partners or sole proprietors. The framework for debarment from Government contracts is published and available on the GeBIZ website. Individuals under investigation are generally not debarred if the individual has not been convicted yet, as the determination of whether an offence has been committed would usually not be complete. Agencies can however take this into consideration, where relevant, as part of their evaluation of competing bids. For example, if the agency assesses that the contractor does not have the necessary controls in place to ensure that it can perform the contract while under investigation or facing criminal proceedings, this would be a relevant factor in scoring. During the debarment period, for contracts which have yet to be awarded, Government agencies will not consider debarred persons for the award. For existing contracts, where the contractor, any person employed by the contractor or any person acting on behalf of the contractor has committed corruption, Government agencies can terminate the contract as provided for under the Government’s standard conditions of our procurement contracts. This is considered on a case-by-case basis to avoid adversely affecting delivery of goods or services where appropriate.”
“This question will be answered in the reply to Mr Pritam Singh’s Parliamentary Question filed for the Sitting on or after 6 February 2024. [Please refer to "Expected Additional Property Tax Collections Following November 2023 Announcement of Increase", Official Report, 6 February 2024, Vol 95, Issue 121, Oral Answers to Questions section.]”
“The data that the Member asked for on Singapore-incorporated companies is not readily available.”
“Money Lock is a feature that allows customers to set aside a portion of funds in their bank accounts that cannot be transferred digitally. This adds a layer of protection for customers to mitigate their losses should their digital access to bank accounts be compromised. Since its launch by the local banks in November, Money Lock has been activated on about 38,000 accounts, with over $3.2 billion of savings set aside. The Monetary Authority of Singapore (MAS) is working with other major retail banks to introduce the Money Lock feature as well, even as the local banks continue to raise awareness of this feature among their customers. MAS works closely with financial institutions, industry players and other Government agencies to implement technologies and solutions to counter increasingly sophisticated scam tactics employed by scammers. A recent example is the enhancement of banks’ banking apps which block access to the app when there is a side-loaded app with access permissions turned on in the customer’s mobile phone. This enhancement has led to a significant reduction in the number of malware-enabled scams in recent months. MAS will continue to work with financial institutions to assess additional measures for higher risk transactions, including those relating to transfers to overseas payees and access of bank accounts from overseas locations. These and other measures will be rolled out if assessed to be effective.”
“The Monetary Authority of Singapore has put in place various safeguards on consumer credit extended by financial institutions, so that individuals do not borrow beyond their means. Unsecured borrowing by an individual, including through credit cards, is subject to the individual meeting minimum income requirements, and the total amount of such borrowing is capped at his or her annual income. Accounts are suspended if the borrower is 60 days past due on their payments. Mortgages, which constitute the largest liability for households, are subject to both a loan-to-value limit and a total debt servicing limit, with the latter based on a borrower’s income. Together, these rules limit how much young people can borrow from financial institutions and ensure that it is in line with income. Besides regulatory limits on borrowing, financial education helps to inculcate good financial understanding and habits among our young adults. The national school curriculum from primary up to the tertiary level has incorporated key financial concepts, such as the effects of compound interest and the responsible use of credit. The efforts are complemented by talks and exhibitions organised for youths by MoneySense, our national financial education programme.”
“Registered charities do not have to pay property tax on the properties they own, so long as these properties are used exclusively for charitable purposes, including public religious worship and heritage. The recent increase in market rentals, which affects a property’s Annual Value, should therefore not have an impact on the property tax payable by these organisations.”
“U-Save rebates are meant to offset households’ utilities expenses. U-Save rebates have no expiry date, and unutilised rebates can be rolled over to offset future utilities expenses. For service and conservancy charges (S&CC), eligible households receive the GST Voucher – S&CC rebates, which offset between 1.5 and 3.5 months of S&CC each year. The Government has a range of support measures to help Singaporeans with their living expenses. These include the upcoming Assurance Package (AP) Cash and AP Cash Special Payment of $200 to $800 which all adult Singaporeans have received in December 2023 and $500 Community Development Council (CDC) Vouchers which all Singaporean households will receive in January.”
“The Government’s decision to ban the use of e-cigarettes in 2018 was based on public health considerations, to protect our population from the harms of these products. The potential loss in tobacco tax revenue from the reduced consumption of tobacco products was not a factor in this decision. If the Government were to legalise and tax e-cigarettes, the challenges would be similar to those we encounter for cigarettes and other tobacco products today. In any case, the Government has no plans to change our current approach, as our priority is to protect the health of our population and prevent e-cigarettes from causing harm to our people, especially to younger Singaporeans.”
“The total amount of unsecured borrowings across FIs is capped at the individual's annual income and facilities are suspended if the borrower is 60 days past due on his payments with the FI. MAS closely monitors household debt holistically for financial stability purposes. The range of metrics MAS tracks assesses the borrowers' debt servicing burden relative to their income. From the data we track, household and individual credit quality has remained stable and we are not seeing a deterioration in the proportion of households falling behind or defaulting on their payments. MAS had also provided further details on household and individual debt trends in its reply to a Parliamentary Question in November last year. [Please refer to "Trend of Household and Individual Debts and Profile of Debtors", Official Report, 22 November 2023, Vol 95, Issue 117, Written Answers to Questions for Oral Answer not Answered by End of Question Time section.]”
“The Monetary Authority of Singapore (MAS) shares the concern that the higher interest rates globally and in Singapore could result in more indebtedness for households and more strain on their family finances. As such, MAS' regulatory requirements and the monitoring of household credit directly take into account changes in interest rate conditions and household incomes as key factors for debt sustainability. MAS requires financial institutions (FIs) to implement specific safeguards to mitigate the risk of consumer over-indebtedness, particularly in relation to two common forms of consumer loans: firstly, mortgages, which form the largest component of a household's debt; and, secondly, unsecured credit cards which have interest rates that are typically higher than 26% per annum. Such safeguards ensure that debt taken on by a borrower is in line with income. Specifically: (a) For property loans, the total debt servicing ratio and mortgage servicing ratio frameworks limit an individual's borrowing by capping their monthly mortgage repayment at a prescribed percentage of their income. The monthly repayment is calculated using the higher of a prescribed medium-term interest rate or the highest interest rate offered by the FI during the tenure of the property loan. In September 2022, MAS increased the medium-term interest rate by 0.5 percentage point to 4%, to ensure that individuals continue to borrow prudently as interest rates rise. The Housing and Development Board also uses a similar mortgage servicing ratio framework in relation to mortgage loans it offers. (b) For unsecured credit cards, FIs may extend such facilities only to individuals with a minimum annual income of S$30,000.”
“Deposit rates are set competitively in the market. The Monetary Authority of Singapore (MAS) does not directly intervene in the pricing of bank deposits, but expects banks to treat their depositors fairly and clearly disclose information on the available deposit options and the corresponding product features. Apart from basic savings accounts, banks offer a range of other savings and fixed deposit products with higher interest rates. For example, based on the latest public information, depositors can earn interest of between 3.1% and 3.4% per annum on fixed deposits if they meet requirements, such as tenor and minimum deposit amounts, which could be as low as S$1,000. Some banks also offer accounts that provide higher interest if customers credit their salary or CPF LIFE payouts to the account and conduct other transactions with the bank. Besides bank deposits, consumers can also access alternatives like Singapore Savings Bonds, Singapore Government Securities and Treasury Bills that currently pay in excess of 3%. MAS will continue to monitor banks' deposit products and processes and work with the industry to ensure that information on the wide range of deposit options are effectively communicated to all bank customers.”
“Cashier's orders are typically used for large transactions, such as property and vehicle purchases, where certainty of payment is critical. Issuing cashier's orders involves additional processing compared to regular cheques, and banks charge a fee – currently $3 to $15 depending on mode of application – to cover these costs. The Monetary Authority of Singapore generally does not set limits on the fees charged by banks for their products and services, but expects banks to clearly disclose the fees and deal fairly with their customers. For the first cashier's order payable to the account holder's own name, some of the major retail banks would waive the fees. Some other banks that do not automatically waive the fees would consider doing so on request from customers with financial difficulties, including lower-income elderly. For consumers who wish to transfer their funds to an account in another bank, there are alternative methods of funds transfers, such as via automated teller machines or Internet banking services, that can be used free of charge.”
“Under the Securities and Futures Act 2001 (SFA) and the Singapore Exchange's (SGX's) listing rules, a listed company and its directors must ensure timely disclosure of information that may materially affect the price or value of its listed securities. Failure to do so is a breach under the SFA if it is committed intentionally, recklessly or negligently. Where there is suspected non-disclosure of material information, SGX Regulation (SGX RegCo) will pose queries to the company concerned, review the matter and refer potential breaches of the SFA to the Monetary Authority of Singapore (MAS). In the case of Cordlife Group Limited (Cordlife), SGX RegCo posed queries to the company on 6 December 2023 after two announcements were made by the company disclosing developments impacting its business operations. The company's responses were published on 10 December 2023. SGX RegCo is currently reviewing the information it has received from Cordlife. It will then make an assessment of any potential breach of the SFA and follow-up with MAS, as appropriate.”
“As of 22 November 2023, the President is: (a) Chairman of the Board of Trustees (BoT) of the Group of Thirty (G30), (b) Co-Chair of the Global Commission on the Economics of Water (GCEW), (c) Co-Chair of the United Nations Human Development Report (UNHDR) Advisory Board, and (d) a Member of the BoT of the World Economic Forum (WEF). For now, the President is holding these appointments in his Official capacity. The Attorney-General has confirmed that this is not unconstitutional. After the Constitution of the Republic of Singapore (Amendment No 3) Bill is passed and comes into force, the President will, subject to the framework in the new Article 22Q, be able to exercise his roles in these appointments independently and in his private capacity.”
“The Monetary Authority of Singapore (MAS) licenses credit bureaus that collect consumer credit information from banks and other financial institutions (FIs) in Singapore. The FIs are members of the credit bureaus and may use the credit reports generated by the bureaus for credit assessment of consumers. Licensed credit bureaus are required to implement appropriate measures to safeguard the confidentiality, security and integrity of consumer credit information. Credit bureaus generate consumer credit reports based on information provided by its members and relevant publicly available information. Litigation records are displayed in a consumer credit report only when the consumer is a litigant, in his personal capacity. The credit report will not include lawsuits where the party involved is not the consumer himself but a company in which the consumer is a shareholder. Consumers have the right to access, review and dispute their credit reports. Should a dispute be raised, MAS requires credit bureaus to investigate and correct any erroneous data within 10 business days.”
“In dollar terms, the aggregate household debt increased by 5% over the past five years. But, as a percentage of GDP, it decreased from 70% five years ago to 56% today. Household debt also decreased from 1.4 times of personal disposable income (PDI) five years ago to 1.2 times PDI today. Household and individual credit quality has remained healthy. As of the second quarter of 2023, non-performing loan (NPL) ratios for housing loans and other loans to individuals have remained low and stable over the past year at about 0.2% and 0.6% of total loans, respectively. MAS does not collect data from financial institutions (FIs) on their individual debtors by age, income levels or ethnicity, as requested by the Member. Granular information on individual debts is available from the Consumer Credit Index report published by the Credit Bureau Singapore. Its latest published data on mortgage, credit card and motor vehicle loans show stable delinquency and default rates across age groups over the past three years. The overall household debt situation in Singapore has remained manageable. Nonetheless, there are pockets of vulnerable borrowers who may come under strain if economic conditions worsen. Borrowers in distress can seek help from various avenues. Those who have taken unsecured debts with FIs may sign up for the Debt Consolidation Plan, which is offered by participating FIs. The plan enables borrowers to restructure and consolidate their debt. Borrowers can also approach Credit Counselling Singapore, which offers debt management guidance and has helped distressed borrowers to work out sustainable debt repayment plans. Borrowers in mortgage loan arrears can similarly approach their FIs to seek assistance and explore potential loan restructuring solutions.”
“Now, Sir, I beg to move, "That the Bill be now read a Third time."”
“Sir, the answer to the first question is yes. Senior Minister Teo or, for that matter, the many examples I cited before him – Dr Goh Keng Swee and other Ministers – were acting in their private capacity in these international organisations. And that is because they were authorised to do so by the Prime Minister. There is no legal impediment for the Prime Minister to so authorise Ministers to act in their private capacity, subject to safeguards and principles, which I have just described. And so, this has been happening not just with Senior Minister Teo, but even way back with Dr Goh and many other examples. Then, you say, why can you not do it for the President? And as I have explained, the Prime Minister cannot authorise the President to do likewise. The AGC has advised this is an area that the Constitution does not clearly provide for. And that is why we debated, and we thought about it. One option, as I described just now, was for us to, rather than authorise the President to act in his private capacity, allow the President to serve in his official capacity, but with some latitude to express his private views. And AGC said that is not clearly, expressly prohibited. But it is not ideal. That was what I tried to explain in my speech – not ideal. It leads us into new grey and ambiguous areas because no one will know whether what the President says is reflecting his personal views or the Singapore Government's views, official views, what is it? And we prefer not to operate like that in such an ambiguous manner. We prefer to be upfront. We prefer to be transparent. And we prefer to do this in a principled manner, with a clear governing framework, hence the amendments before this House. 7.25 pm”
“In some ways, Singapore is at the stage of our development where our national interests are becoming more closely intertwined with global interests. So, we need to find ways to achieve this intertwining, and this Bill is one of the ways to achieve this. So, let us all, hopefully everyone in this House will agree, give your support for the Bill, do our part to strengthen Singapore's voice on the international stage, to add to our participation in influential global forums and to ensure that this little red dot continues to shine brightly in a dark and troubled world. Mr Speaker, I beg to move. [Applause.]”
“And so, we are amending the Constitution so that the President can act independently to bring value to the organisations he operates in, while serving our national interest, because he is the Head of State, and this is why it is novel. Previously, it was okay for Ministers, but now we are dealing with the President. It is a new situation and because he is the Head of State, we have put in place a framework to ensure his participation in these international bodies does not affect in any way his constitutional responsibilities to Singaporeans or the discharge of his custodial duties. The President will not be directly representing Singapore's official positions in these bodies or commenting on any of Singapore's domestic or foreign policies abroad. And when there is any danger of him being put in a difficult position or in conflict with national interest, the Cabinet will advise him not to take part or even to withdraw from the body. Sir, this Bill recognises and supports the Government's commitment to always look out for opportunities to further advance Singapore's interests, in this case, through facilitating arrangements to tap on deserving individuals' experiences and personal standing. And it also reflects how this Government works – to deal with issues squarely to be upfront and transparent and to act in a way that is consistent with sound legal and governance principles. So, I will ask the WP and the PSP, having heard my explanations to reconsider your positions. There is no need to oppose for the sake of opposition. There is no need to oppose something that will clearly advance Singapore's interests and bring benefits to Singapore and Singaporeans.”
“I cannot emphasise how much Singapore has gained because our top officials are regularly tapped on by international bodies and foreign governments. And this was the case from our founding generation of leaders. Dr Goh Keng Swee, for example, was tapped on by the Chinese government in 1985 to advise them on the setting up of the Special Economic Zones in China. He was then Deputy Chairman of both the Monetary Authority of Singapore (MAS) and GIC. While he was Deputy Prime Minister, he was also tapped on by the Sri Lankan government to advise them on the restructuring of the economy. The Chinese and Sri Lankan government did not ask Dr Goh because they wanted him to act in the interest of the Singapore Government in China or Sri Lanka, obviously. They asked him because they knew his record as the architect of Singapore's economy and hope that he would be able to help them. The Prime Minister then Mr Lee Kuan Yew readily agreed to Dr Goh playing these roles because they brought credit to Singapore. They underlined our usefulness to the world and projected our influence abroad. Likewise, these international bodies are not asking President Tharman to continue playing a role in their organisations because they want him to represent Singapore's views or the views of the Singapore Government. They are asking him because they know his record in the Singapore Government and hope he would be able to give sound advice on global issues. And Cabinet has readily agreed to President continuing in these roles because they bring credit to Singapore, underline our usefulness to the world and project our influence abroad effectively.”
“Should Parliament pass this amendment Bill, then the new framework will be in place and President Tharman will be able to attend future meetings under this new governing arrangement. And, indeed, there are upcoming meetings, including the G30 Winter Plenary in New York next week. Sir, this Government will always take a sensible, rather than a dogmatic or ideological, approach to the Constitution. We know that the Constitution is a living document. It should not be amended frivolously, but it also cannot stay static. It has to evolve as our needs change over the years. And indeed, it was Cabinet that assessed the need to move this constitutional amendment. We agreed that it would be a positive and necessary structural change and would increase the ability of individuals to contribute to Singapore while ensuring the relevant safeguards and ensuring greater accountability. Sir, as a small and open economy, Singapore has always recognised the importance of staying engaged with the international community. Our survival depends on us being able to respond to the changing global landscape and to deliver value to the world. Opportunities to take up office in respected international institutions where we can actively contribute to shaping global norms – these do not come by all the time. It is not as though these institutions will say, "Look, any Singaporean also can come and serve in my organisation." But the few occasions when these invitations come by, I think we should treasure them. They are invaluable for Singapore. And this is indeed how we have built strong relationships with other countries, while safeguarding our interests and ensuring that our voices are heard on the global stage.”
“At the end of the day, it would not be in the national interest for the President or a Minister to take on external appointments that affect their ability to perform their official duties. All assessments made by Cabinet will carefully weigh any potential bandwidth concerns against the potential benefit the appointments will bring. So, Sir, at the end of the day, I think we have to come back to the substance and merits of what this amendment Bill is about. Do we want the President to take on these international roles in his independent and private capacity, when it is in the national interest? And if so, do we want to put in place a proper legal and governing framework for such an arrangement rather than to pretend, fudge the issue and just operate in this ambiguous, grey zone without being upfront? The Government’s position is very clear. We want to have a principled framework to govern how the President and Ministers take on international appointments in their private capacities, where required by the national interest. And we want to do so sooner rather than later. We have identified the issue, it came up, we looked at it and we settled on a solution which is being proposed in this House. The sooner we get this done, the sooner the President can embark on his engagements under a clear constitutional framework. There is nothing to be gained by delay. Up to now, out of an abundance of caution, I should say, President Tharman has not attended any formal meetings of the four international bodies that he has been appointed to since 14 September and prior to this reading in Parliament. That is out of an abundance of caution because he has been appointed in an official basis, but he has decided not to attend any formal meetings.”