Lee Boon Yang
Singapore
“6 The other guidelines are that there must be a post office sited within 5 km of every private residential estate and within 1 km of any commercial or industrial estate. MAID LEVY CONCESSION (Applications by the disabled) 32.”
“Madam, can I quickly respond to the point on assistive technology? Certainly this is an area of interest. We cannot say that we have the capability at this juncture but we will certainly look into what is possible and work with our ICT sector.”
“Nevertheless, if the spouse of the homemaker is working, he will be eligible for WIS if he satisfies the criteria. Husbands of homemakers are further eligible for tax relief.”
“Sir, I do not think it is quite correct to say that we always expect our own artists to perform for free or do public service. There are, of course, occasions where we do seek Singapore artists and arts companies to contribute to the national causes. For instance, when we went international for Singapore Season in China.”
“Ms Sylvia Lim asked the Minister for National Development (a) what checks does the Ministry or the National Environment Agency have in place to prevent mistaken payments to hawkers who cease operations due to upgrading works at hawker centers; (b) how did the mistaken payment of $18,000 to Mdm Lee Ah Muey come about; and (c) what will the…”
“While it was also true that initially the reaction or the response of the licensing authority was that foreigners should not participate in such an event at the Speakers' Corner - because there is already an existing prohibition against any foreigners taking part in any activities at the Speakers' Corner - subsequent assessment resulted i…”
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“Those above the age of 45 will not be subjected to the full increase in the Minimum Sum. Those aged 45 now, are the first cohort of CPF members to be required to set aside the full $80,000 as their Minimum Sum. Our projections show that most of them will be able to do so. For example, a typical 45-year old worker, who earns $1,000 a month today and had used his CPF savings to buy a 3-room flat in a new town 10 years ago, will accumulate about $90,000 in his Ordinary and Special Accounts by the time he reaches 55. He can pledge his flat for half the Minimum Sum of $40,000, set aside another $40,000 of his CPF savings and withdraw the rest of it, ie, he can withdraw $50,000. If he earns a slightly higher salary of $1,200, his CPF balance at age 55 will be higher, about $120,000. He should have even less difficulty meeting the Minimum Sum requirement. Another concern is that CPF members in the lower income group, particularly the older ones, will not have sufficient CPF savings to set aside the Minimum Sum and therefore will not be able to withdraw any CPF savings at the age of 55. However, as I have explained, CPF members, whose total savings are less than the Minimum Sum requirement, will still be able to withdraw half of their cash savings at the age of 55. Our projections show that most CPF members in the lower income group should be able to meet the Minimum Sum requirement. About 72% of active CPF members, who are citizens, who reach the age of 55 in 1995 will have Special and Ordinary Accounts savings (including the amount that has been withdrawn for their housing needs) which exceed the Minimum Sum requirement of $40,000. This is shown in of Table 6 (Cols. 965 - 966).”
“As the Minimum Sum is raised, the prevailing Minimum Sum will apply to the Topping-Up Scheme. Hence, a member wishing to use CPF to top up his parents' Retirement Account on 1st July 1995, must have at least twice the prevailing Minimum Sum, in other words, $80,000. As is the current practice, the Minimum Sum requirement will not apply to CPF members using their CPF savings to buy approved shares of corporations which are formed when Government privatises its statutory bodies or Government-linked companies. One example is the Group A shares of Singapore Telecom. This waiver will give lower income groups the opportunity to invest in privatised statutory boards or Government-linked companies, thus helping them to enhance their old-age savings. Sir, to further help CPF members build up their savings, the Government has decided to pay 1.25 percentage points more interest than the normal CPF interest rate on savings in the CPF Special and Retirement Accounts with effect from 1st July 1995. This was announced by the Minister for Finance in his Budget Statement. This higher interest rate will help CPF members to accumulate more savings in their Special Account by the time they reach the age of 55. For instance, projections show that the higher interest rate will enable a typical 45-year old CPF member earning $1,000 per month today to accumulate about $1,000 more in his Special Account when he reaches the age of 55. Finally, Sir, I wish to address some concerns raised since the Prime Minister made the proposal. Several Members were concerned that raising the Minimum Sum can cause hardship to older workers. To meet this concern, Government has decided on the gradual increase of $5,000 a year, which will minimise the impact on older workers.”
“In other words, those who are going to receive pension when they retire or who have bought annuities which will assure them of receiving a stream of monthly payment which is equal or better than what they would obtain under the Minimum Sum Scheme, they would be able to withdraw all their CPF balance at the age of 55. At present, the Minimum Sum is a qualifying criterion for CPF members to participate in the CPF Basic Investment Scheme and the Education Scheme. In the Basic Investment Scheme and the Education Scheme, the CPF member must have a gross CPF saving (including amounts that have already been withdrawn for housing and other investments) which exceeds the Minimum Sum before they can invest in gold, shares, or take out education loans. As the Minimum Sum is raised, the prevailing Minimum Sum will apply to these Schemes. For instance, from 1st July 1995, when the Minimum Sum is raised to $40,000 ($36,000 in property and $4,000 in cash), a CPF member must have at least a Minimum Sum in such composition before he is allowed to invest under the Basic Investment Scheme or to take out a loan under the Education Scheme. We will also be adjusting the $50,000 cash savings members must have before they can participate in the Enhanced Investment Scheme. Sir, the other Scheme that uses Minimum Sum as a qualifying criterion is the Minimum Sum Topping-Up Scheme. Under that Scheme, CPF members who have at least twice the Minimum Sum in their CPF account are allowed to use their CPF to top up their parents' Retirement Account. They can top up their parents' Retirement Account up to the prevailing Minimum Sum amount. CPF members are also allowed to top up such retirement account with tax-exempt cash contributions.”
“CPF members who have set aside their Minimum Sum under the existing Scheme, ie, those who have already met their Minimum Sum requirement before 1st July 1995, will continue to be allowed to make monthly withdrawals at subsistence rate, with the usual adjustment for inflation. Sir, as with the existing Scheme, we will make annual adjustments to the Minimum Sum for inflation after it reaches $80,000 in the year 2003. We will also make adjustments to the monthly withdrawal amount under the revised Scheme. Now I will touch on the Minimum Sum requirement for married couples. The present Minimum Sum Scheme gives a concession to married couples. They are required to jointly set aside only 1.5 times the Minimum Sum required, instead of twice the Minimum Sum. The shortcoming of this approach is that when one spouse dies, the surviving spouse may end up with less than the full Minimum Sum, if he or she was not nominated as the sole beneficiary of the Minimum Sum by the deceased spouse. This can happen. To avoid this situation, we will require couples who wish to set aside jointly only 1.5 times the Minimum Sum to irrevocably nominate each other as the beneficiary of their Minimum Sum for as long as they remain husband and wife. Otherwise, they will each be required to set aside the full Minimum Sum as individuals. Sir, the present Minimum Sum Scheme exempts CPF members, who are receiving pensions or annuities exceeding the Minimum Sum monthly withdrawal amount, from the scheme. Where the pensions or annuities are less, they are required to set aside a reduced amount. This feature of the Minimum Sum Scheme will be retained.”
“But over the next 10 years, we will be approximately doubling the Minimum Sum. To allow a person retiring in 1995 with $40,000 in his Minimum Sum to withdraw from his Minimum Sum as if he had retired in the year 2003 with $80,000 in his Minimum Sum will mean depleting his savings twice as quickly. Therefore, in future, the amount members can withdraw monthly will be based on the amount they themselves have actually set aside, both in cash and pledged properties. It will be adjusted annually for inflation. However, the amount which can be withdrawn at monthly intervals will not be lower than the amount which can be withdrawn under the present Minimum Sum Scheme because this amount, which can be withdrawn under the present Minimum Sum Scheme, is already estimated to be at the subsistence level. Therefore, we will assure all CPF members that the minimum that they can withdraw monthly under the revised Minimum Sum Scheme will be equal to this amount, which is $230 per month at present, but this amount will be adjusted annually for inflation. Sir, if the CPF member continues to work after 55, he will be required to make up any shortfall in his Minimum Sum. In other words, those who are unable to set aside the full Minimum Sum at age 55 can withdraw only half of any subsequent CPF contribution made after the age of 55. CPF members who are working after the age of 55 can withdraw their CPF contribution at three years' interval. We will be requiring them to withdraw only half of what they have contributed. The other half will be used to top up his Minimum Sum amount in his Retirement Account.”
“This is meant to help members with low CPF balances who would otherwise not be able to withdraw a significant amount at age 55. However, this is also the same group of people most in need of help in building up their retirement savings. We will, therefore, refine this feature by lowering the minimum withdrawal amount from $11,600 to $5,000. I refer Members to Tables (Cols. 957 - 964) 2, 3, 4 and 5 which set out four examples of how the new Minimum Sum amount will affect CPF members when the scheme is implemented on 1st July 1995 and by 1st July 2003, when it would have reached the targeted amount of $80,000. Tables - EXAMPLE 1, EXAMPLE 2, EXAMPLE 3, EXAMPLE 4 (Cols. 957 - 964) As the monthly withdrawal from the Minimum Sum is meant to provide an income for retirement, the age at which such withdrawal commences will be pegged to the prevailing retirement age. Today, the Minimum Sum withdrawal age is 60, coinciding with our current or prevailing retirement age of 60. Hence, as we raise the retirement age progressively to 67 over the next seven to 10 years, we will correspondingly raise the age at which monthly withdrawals begin. At present, all CPF members on the Minimum Sum Scheme may withdraw the same monthly amount in a given month, regardless of how much the member actually sets aside. The savings of members who have set aside less than the full current value of the Minimum Sum will, therefore, run out much earlier. Someone who has set aside half the Minimum Sum and withdraws on a monthly basis the same amount as somebody who has set aside the full Minimum Sum is obviously going to consume it twice as fast. This has been workable so far as the adjustments in the Minimum Sum from year to year for inflation have been quite small.”
“The existing Minimum Sum Scheme allows CPF members to pledge their properties instead of setting aside the Minimum Sum in cash. The weakness of this is that the Minimum Sum set aside in property cannot generate cash income for the CPF member, unless he sublets, sells or mortgages the property for cash. To remedy this, we will require half the Minimum Sum, ie, $40,000 to be set aside in cash by the year 2003. To reach this target, we will require $4,000 to be set aside in cash from 1st July 1995. This amount will increase by $4,000 a year until it reaches $20,000 on 1st July 1999; and subsequently by $5,000 a year to reach $40,000 on 1st July 2003. CPF members can still pledge properties for the remainder of the Minimum Sum, ie, up to $36,000 from 1st July 1995. This will increase by $1,000 a year until it reaches $40,000 on 1st July 1999. Details are shown in columns 3 and 4 of Table 1. Sir, under the existing Minimum Sum Scheme, every CPF member can withdraw a lump-sum of at least half his CPF cash balance at age 55. This will continue to be the case under the revised scheme. In other words, a CPF member whose cash saving is less than twice the Minimum Sum requirement can still withdraw half of his cash savings. This will help meet the needs of CPF members, particularly those nearing 55, who have already made plans to use their CPF savings immediately at age 55. The lump-sum will also provide CPF members who for a variety of reasons are unable to continue working after the age of 55 with some money to live on until they reach 60, when they can start monthly withdrawals from their Minimum Sum accounts. Under the existing Minimum Sum Scheme, CPF members with less than $11,600 can withdraw their entire CPF balance at the age of 55.”
“For a start, the Minimum Sum will be raised to $40,000 on 1st July 1995 and subsequently by $5,000 a year until it reaches $80,000 on 1st July 2003. The schedule of the increase is as shown in Table 1 (Cols. 955 - 956), which I understand the Clerk of Parliament has already circulated to Members. I wish to remind the House that the increase in the Minimum Sum includes adjustments for inflation over the next 10 years. In fact, if we do not revise the Minimum Sum Scheme but only carry on with the annual adjustments for inflation, by the year 2003, the Minimum Sum would be about $46,000, ie, if we just carry on with our current practice of adjusting the Minimum Sum annually for inflation, and this assumes that our low rate of inflation of about 3% per annum remains for the next 10 years. Hence, the proposed adjustment to the Minimum Sum is not as dramatic as it sounds. Table 1 - SCHEDULE OF INCREASE OF MINIMUM SUM (Cols. 955 - 956) $80,000 in the year 2003 is less than double today's Minimum Sum of $34,600 in terms of actual purchasing power. Nevertheless, this amount will provide a retiree with a monthly income of about $450 for 20 years from age 60. In terms of real purchasing power, this $450 in the year 2003 is equivalent to $345 today. This is what one person in a two-person household in the lower income group spends today, ie, the lower 50th percentile of our household income. This assumes that we manage to keep inflation low over the next 10 years. Thus, the new Minimum Sum amount will enable retirees in future to maintain only a modest standard of living somewhat higher than the subsistence level provided by the existing Minimum Sum. Sir, I now come to the pledging of properties by CPF members to meet their Minimum Sum requirement.”
“In the long term, they will cripple the economy. We must therefore encourage and enable workers to start saving for their old age as soon as possible through the Central Provident Fund mechanism. Sir, the Prime Minister's proposal to revise the CPF Minimum Sum Scheme is not the only way to cater for the longer retirement period and greater need for retirement savings of Singaporeans. A more direct solution would be to raise the CPF withdrawal age to the prevailing retirement age for all current CPF members. Or a variation could be used where you raise the withdrawal age only for new contributions or new members joining the CPF system. But raising the withdrawal age for current CPF members would require those who are nearing the age of 55 to make major adjustments to their plans to use some of their CPF savings. They may have to postpone their long awaited desire to make a haj, buy something for themselves or carry out some renovations to their homes or pay for some educational expenses for their children. The direct approach might cause great misunderstanding and concern among current CPF members, particularly the older members. We have decided that it is not necessary to make such drastic changes. The revision of the Minimum Sum Scheme will achieve the objective of getting Singaporeans to set aside adequate savings for their old age more quickly and with less disruption. CPF members will still be able to withdraw part of their CPF savings at age 55. Whether the member is a low income or high income earner, when he reaches 55, he can withdraw some CPF savings to meet his immediate needs. Sir, my Ministry will raise the Minimum Sum gradually to the target amount of $80,000. We will make the adjustment over the next 10 years.”
“In 30 years' time, compared to our neighbours, Indonesia, Malaysia and Thailand, we will only have half the number of economically active persons supporting each aged citizen. Our problem will be more acute if we do nothing to prepare our society for the drastic and unavoidable change. The two main problems of an ageing population are, firstly, getting the older workers to work for as long as they are healthy and able; and, secondly, providing for the aged in their retirement. To address the first problem, we have already raised the retirement age to 60 years from 1st July 1993. We will be raising it progressively to 67 over the next seven to 10 years. The second is a serious problem experienced worldwide, particularly in countries that rely on state pension to provide for their retirees. Several European countries, such as Germany and Italy, both facing ageing populations, have resorted to raising the retirement and pension withdrawal age. France has extended from 37.5 years to 40 years the length of time people must work before they qualify to collect full retirement benefits. Sweden is also planning to increase its retirement age. In Singapore, we have adopted a different approach to provide for old age. Instead of state pension, we have the Central Provident Fund which is a fully funded individual savings scheme. Each worker saves for his own old age requirement so that the Central Provident Fund will never lack funds to pay those who reach the withdrawal age. Nor will future governments of Singapore have to impose heavy taxes on Singaporeans to pay retirees their pensions. Countries which adopted welfarism have found that such taxes erode competitiveness and act as a strong disincentive to work. They drive up costs of production and services.”
“Mr Speaker, Sir, on 18th January this year, during the Debate on the President's Address, the Prime Minister proposed raising the Minimum Sum amount in the CPF Minimum Sum Scheme as a way of coping with an ageing population. Before I explain how Government intends to revise the Minimum Sum Scheme, allow me a few moments to reiterate some of the points made by the Prime Minister. While other countries such as the United States, United Kingdom, Germany and Japan are also ageing, Singapore is ageing far more rapidly. It will take the United Kingdom 85 years to double its aged population from 10% to 20% of the population; it will take us only 17 years. We are ageing faster than Japan, already one of the fastest ageing countries in the world. In Japan, it will take them 25 years to double the aged percentage. This means that the resources which we must devote to the aged will increase dramatically in the next two decades unless we help the aged to prepare for a prolonged retirement. Our rapid ageing is mainly because of the unusually sharp decline in fertility rate coupled with the increase in life expectancy. The total fertility rate has dropped sharply from about 3.1 per female in 1970 to 1.7 in 1992. On the other hand, life expectancy of Singaporeans has increased quite dramatically from 63 in 1957, which was two years after the inception of CPF, to 67 by 1970 and to 76 by 1992. These are figures for life expectancy at birth. Life expectancy at age 55 is even longer. It is now 79 for a person aged 55 in 1992. Singapore will therefore increasingly feel the impact of an ageing population as our post-war baby boomers join the ranks of the aged at around 2015-2030.”
“Sir, with your permission, allow me to respond to that point. In fact, my Ministry is in the process of assessing all these applications, including some applications from the private sector employers, and they will be putting up the recommendation shortly. We should be able to give an answer quite soon.”
“Sir, I will assure this House that there is no possibility of such an event of any corruption, or wrongdoing, taking place in Mindef's procurement procedures. But I do not know what goes on in other countries, regardless of what the Member is suggesting here. Let me assure him and other Members of this House that we regularly audit our procedures to ensure that no wrongdoing can ever take place.”
“Potential suppliers - and these are international suppliers because when Mindef calls for tenders for the supply of equipment, these are international tenders and the defence industries from many countries take part in these tenders - know very well, through our tender document, that it is illegal to offer gratification and, through the practice of our procurement procedures, they know that it is useless to attempt political or other influence on our process of evaluating tenders. They know that it is useless to attempt influencing present serving or retired members of the armed forces. Depending on the value of the purchase, the committee which approves the purchase may involve Ministers from other Ministries to further enhance impartiality and objectivity. Sir, the procurement procedures and the actual contracts themselves are routinely audited both by Mindef's internal audit department and also the Auditor-General's Office. Sir, our military procurements are therefore based on sound, tested and regularly audited procedures to ensure that the SAF derives maximum value for every defence dollar spent.”
“Sir, the Member for Hougang has asked whether Mindef has any safeguard in its military procurement procedures. Sir, let me assure this House that Mindef is fully conscious of the need for a rigorous and objective military procurement system. Mindef has to stretch every dollar in its defence budget to build up a credible defence capability to ensure Singapore's peace and security. Sir, apart from the quality of our commanders and soldiers, the success or otherwise of our mission to defend Singapore also depends on the defence systems which we purchase for peace time training and for countering threats in the event of war. Our procurement system is, therefore, designed to ensure that we get the most cost-effective equipment. Before any system is procured, there are many steps to be taken. From defining the needs for a particular weapon system to the actual acquisition of the system, there are stringent procedures and involvement of various professionals to ensure that money is spent only when there is a clear and definite need for that particular system and that they be spent in the most cost-effective way. Sir, there are many different levels in the committee comprising professionals from the military services, meaning the airforce, the army and the navy, Technology Division, Contracts and Finance Organisation within Mindef which will objectively deliberate and assess the requirements and the funding limits for the respective projects before Mindef proceeds to procure what is required. Sir, every purchase is recommended only after thorough evaluation by different groups of professionals. They evaluate offers based on specifications established clearly beforehand.”
“So he will give valuable input as a non-serving member of the SAF and yet, at the same time, preserve the element of knowledge and experience in matters of military discipline. Sir, I hope that clarifies the concerns about victimisation expressed by the Chairman of the GPC. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Dr Lee Boon Yang]. Bill considered in Committee; reported without amendment; read a Third time and passed. JUDICIAL COMMITTEE (REPEAL) BILL Order for Second Reading read.”
“This is consistent with many other professions, for instance, accountants, lawyers, doctors, when it comes to professional misconduct, a peer group sits in judgment of the offender. Likewise with military officers, if they are going to be tried summarily, I think it should be done so by their fellow officers who are senior to them. To be able to conduct a summary trial against a military offender, the person conducting the trial should have some knowledge and background of military discipline and military code of conduct. Let me give you an instance. There are many military offences which concern breach of professional standards such as offences like "conduct to the prejudice of good order or discipline" which must be taken in the military context. Or "behaviour in a manner unbecoming of a member of the Singapore Armed Forces", which again has to be taken in the context of the SAF. Therefore, only officers of the SAF who are more senior to the offender will have a proper background and knowledge of the context under which the offence took place and would be able to conduct a summary trial of the offender. When it comes to the SDC, the SDC in fact can include a non-SAF officer because the Armed Forces Council includes the Permanent Secretaries of the Ministry of Defence. So when the Chairman appoints a Senior Disciplinary Committee to conduct a summary trial for a Colonel or a more senior officer, he could always include one of the Permanent Secretaries of the Ministry of Defence to be a member of the SDC. The Permanent Secretary (Defence), while he is an outsider as far as SAF is concerned, is also somebody who is very familiar with military conduct and military discipline, by nature of his work as a Permanent Secretary of the Ministry of Defence.”
“Mr Speaker, Sir, let me reiterate that this amendment does not confer additional powers beyond what is already allowed in the SAF Act to conduct summary trial of senior SAF officers. All it does is that it enables the AFC to now delegate the power to summarily try Lieutenant Colonel to the Chief of Defence Force and for an officer of the rank of Colonel and above to be summarily tried by a Senior Discplinary Committee. Powers are already existing in the Act for these officers to be tried by summary proceedings. As to whether there is safeguard against victimisation, let me assure the Chairman of the GPC for Defence and Foreign Affairs that all summary trials in the SAF are conducted fairly and equitably and that the serviceman who is being tried will be treated fairly and there are adequate safeguards to prevent victimisation. I also want to point out that only scheduled offences as listed in the Schedule to the SAF Act can be tried summarily. There is also in existence another safeguard that during a summary trial, if the serviceman feels that he is not being treated fairly and that, in fact, the penalties that are going to be handed down by the officer sitting in summary judgment of him will be more than just a reprimand, the serviceman in every case can always opt to have his case referred to a full court martial, so that he will not be subject to victimsation by just one senior officer sitting in summary judgment against him. On the point as to whether we could include an outside person in the Senior Disciplinary Committee that is appointed by the AFC to conduct summary proceedings against Colonels and above, I would like to point out that the SAF is a profession. Military discipline has to be administered by members of the military, by members of the profession.”
“Works under the Interim Upgrading Programme are confined to the precinct and block level. Since the Interim Upgrading Programme is merely an advancement of some of the improvements under the Main Upgrading Programme, precincts that are upgraded under the Interim Upgrading Programme are still eligible for the Main Upgrading Programme later on. However, as far as possible, the improvements provided under the Interim Upgrading Programme for a particular precinct will not be duplicated in the main upgrading package for that precinct. The full interim upgrading cost expended by Government on the precinct will also be deducted from the precinct's main upgrading budget. For example, the total direct upgrading cost for a 3-room flat under the Basic Package of the Main Upgrading Programme is about $22,500. If the flat has enjoyed $6,000 worth of interim upgrading works, it is only eligible for $16,500 worth of improvement works under the Main Upgrading Programme later on. In other words, the total upgrading budget for a precinct is fixed. The Interim Upgrading Programme enables the Town Council to implement part of the upgrading works earlier leaving the major component, involving mainly works within the flat, to be done later under the Main Upgrading Programme.”
“I was therefore deeply saddened by the report of the tragic accident in Jurong Shipyard in the morning of 8th February this year. Our heartfelt sympathy goes to the family of the nine workers who died in the accident and the two injured workers. I have appointed a Committee of Inquiry to determine the causes and circumstances leading to the accident and to recommend appropriate preventive measures. Shipyard managements must rigorously implement safety measures and stringently enforce compliance by their workers and employees of their sub-contractors. Workers must also understand that when they are working in hazardous conditions, disregarding safety precautions can be disastrous both to themselves and to fellow workers nearby. I hope that the three accidents which occurred so close together will remain a painful and vivid reminder for a long, long time to all shipyard managements and their workers to work safely. HDB INTERIM AND MAJOR UPGRADING PROGRAMMES (Integration) 7. Mrs Yu-Foo Yee Shoon asked the Acting Minister for National Development if he will explain how the Housing and Development Board integrates both the interim and major upgrading programmes for flats; and whether a flat, which has undergone interim upgrading, will be entitled to major upgrading later on. The Acting Minister for National Development (Mr Lim Hng Kiang): Mr Speaker, Sir, the Interim Upgrading Programme complements the Main Upgrading Programme. The Main Upgrading Programme is intended for flats older than 17 years. The Interim Upgrading Programme allows HDB residents of precincts in the 10 to 17 years age band to enjoy some benefits of the Main Upgrading Programme earlier. Otherwise, they would have to wait for more than eight years before they are eligible for the Main Upgrading Programme.”
“The regular monitoring and enforcement visits showed that the major shipyards have implemented practically all the recommendations of the Committees of Inquiry. Shipyards are also in the process of implementing the recommendations of the study mission to Japan. The only major recommendation of the Committees of Inquiry which is still not fully implemented is the conduct of safety audits by external auditors with specific experience in auditing safety systems of shipyards. So far, only Sembawang Shipyard had conducted such audit. ASMI is actively sourcing for consultants to draw up standard auditing procedures, which the other shipyards could use for their external safety audits. The Ministry has also conducted a comprehensive review of existing safety provisions for shipyards. The recommendations of the two Committees of Inquiry on measures to prevent fire and explosion have been incorporated in a new set of safety regulations. In addition, the review also covers other hazards, such as those arising from the use of scaffolding, lifting equipment and electrical installations. These regulations will be gazetted shortly. Apart from these steps to tighten regulation of safety management, the Department of Industrial Safety conducts regular inspections of shipyards to ensure that they comply with accepted safety practices and procedures. In 1993, the Department of Industrial Safety conducted 1,223 inspections of shipyards. Shipyards which had violated safety regulations were issued with notices of non-compliance or composition fines. For more serious violations, shipyards were prosecuted in court. In instances where the workplace was grossly unsafe, stop work orders were issued to force the shipyard to improve safety measures before work resumed.”
“Sir, the Ministry's approach to safety in shipyards and, for that matter, any other factory or worksite, is to impose and enforce all practicable safety precautions. We systematically review and amend safety regulations, so that workers can work in a safer environment. Unfortunately, from time to time, lapses in compliance and human errors have resulted in accidents, sometimes with fatal consequences. In 1992, there were two major shipyard accidents involving the loss of 14 lives and 75 workers suffering injuries. The Government convened two Committees of Inquiry to look into the causes and circumstances of the accidents. The Committees conducted thorough investigations and hearings. They recommended enhanced safety measures for hot works, chemical usage and audit of safety management system. In May 1993, my Ministry ordered Sembawang Shipyard, where both accidents took place, to comply with all the recommendations. The shipyard had done so, including conducting an external safety audit. In addition, the Ministry organised a study mission to Japan to study safety management in Japanese shipyards. Senior management of major shipyards and representatives of the Association of Singapore Marine Industries (ASMI) joined the mission to study first-hand the Japanese safety management system. The Ministry organised a Workshop on Accident Prevention in Shipyards in October 1993 to discuss and disseminate the recommendations of the Committees, and the findings of the study mission. Senior managers of shipyards and union representatives took part and agreed to implement these recommendations in their own shipyards. Subsequently, the Department of Industrial Safety (DIS) monitored monthly progress in implementing the safety recommendations.”
“Mr Speaker, Sir, may I have your permission to answer Questions Nos. 5 and 6 together since they cover the same area?”
“My Ministry will continue to monitor the situation. Where demand has risen and there are sound economic reasons to allow more foreign workers into Singapore, we will adjust the dual mechanism of dependency ratios and foreign worker levy to regulate the growth in foreign workers. WRITTEN ANSWERS TO QUESTIONS CONTRACT FOR PUBLIC HOUSING AWARDED BY THE HOUSING AND DEVELOPMENT BOARD IN 1984 1. Mr Chiam See Tong asked the Minister for National Development, in respect of each contract for public housing awarded by the Housing and Development Board in 1984, what were (i) the financing and overhead costs and (ii) the professional and supervisory fees, as percentages of the total construction costs.”
“The demand for foreign workers varies from economic sector to sector. In the manufacturing sector, despite advances in technology, more higher value added investments and redistribution of labour-intensive operations to the region, the foreign worker population has remained largely stable since 1990. In fact, there has been a slight pick-up in employment of foreign workers in the manufacturing sector since the early part of the year. The marine sector is currently facing a slowdown in business. Nevertheless, the foreign worker population in the marine sector has been increasing since the middle of the year. The domestic maid population also continues to increase, although the increase has been moderated by the higher levy of $300 per domestic maid introduced since 1st April 1992. The strong growth in the service and construction sectors has resulted in heavy demand for more foreign workers. In particular, the construction sector had benefitted from the liberalisation of dependency ratio from 1:3 to 1:5 foreign workers since November 1992. In the longer term, we must achieve more capital intensive, higher technology and higher value-added economic enterprises. This is the only solution to maintaining our competitiveness with a base of only 3 million Singaporeans. We cannot hope to compete in the labour intensive industries against our neighbours with far larger population bases. The emergence of India, Vietnam and the PRC as market-oriented economies makes it even more urgent for us to move away from cheap-labour activities. Already the impact of having more than 200,000 foreign workers in Singapore is being felt, such as the difficulties of housing foreign workers and the problems created when they congregate in some parts of Singapore.”
“Sir, the demand for foreign workers varies from economic sector to sector. In the manufacturing sector, despite advances in technology, more higher value-added investments and redistribution of labour-intensive operations to the region, the foreign worker population has remained largely stable since 1990. In fact, there has been a slight pick-up in employment of foreign workers in the manufacturing sector since the early part of this year. The marine sector is currently facing a slowdown in business. Nevertheless, the foreign worker population in the marine sector has been increasing since the middle of this year. The domestic maid population also continues to increase, although the increase has been moderated by the higher levy of $300 per domestic maid which was introduced since 1st April 1992. The strong growth in the service and construction sectors has resulted in heavy demand for more foreign workers. In particular, the construction sector benefitted from the liberalisation of the dependency ratio from 1:3 to 1:5 foreign workers since November 1992. Sir, in the longer term, we must achieve more capital intensive, higher technology and higher value-added economic enterprises. This is the only solution to maintaining our competitiveness with a base of only three million Singaporeans. We cannot hope to compete in the labour intensive industries against our neighbours with far larger population bases. The emergence of India, Vietnam and the PRC as market-oriented economies makes it even more urgent for us to move away from cheap-labour activities. Already the impact of having more than 200,000 foreign workers in Singapore is being felt, such as the difficulties of housing the foreign workers and the problems created when they congregate in certain parts of Singapore.”
“Mr Speaker, Sir, I have no objection to doing that. I will ask the CPF Board to look into how it could widely publicise this information that CPF members or any Singaporean are welcome to make voluntary contribution to the CPF account of their non-working relatives. MEASURES TO ENSURE MOTORISTS GIVE WAY TO EMERGENCY VEHICLES The following Question stood in the name of Mr Robert Chua Teck Chew - 9. To ask the Minister for Home Affairs what measures are being taken to ensure that motorists on the road give way immediately to ambulances, fire engines and other emergency vehicles which are in the course of handling emergencies.”
“The Board does not have a minimum amount requirement at the moment. So far, I think not that many people are doing so. We will be prepared to set a minimum contribution if in fact more and more people are coming forward to make such voluntary contributions on behalf of their non-working relatives. I am prepared to review the condition in the light of experience.”
“Mr Speaker, Sir, the CPF Board has all along welcomed people who wish to make contributions to the CPF accounts of non-working relatives. Such accounts can be opened at any of the Board's offices. Contributions can be made in cheque, cash or through NETS at the Board's main office or any post office, or in cheque or through NETS at the Board's branch offices.”
“If a licence is revoked for any reason, the licensees and directors of that agency will be prevented from obtaining any agency licence in the future, even under a different agency name. This is because anyone who has had an interest in an agency which had its licence revoked is deemed unsuitable to operate an employment agency, and hence would not be issued with a licence. AIDS SCREENING ON WORK PERMIT HOLDERS 12. Dr Kanwaljit Soin asked the Minister for Health what is the rationale for carrying out AIDS screening on work permit holders only and not on employment pass holders.”
“All employment agencies in Singapore are governed by the Employment Agencies Act, Employment Agency Rules (1984) and (Amendment) Rules 1993, and a list of conditions of licence. If it is established that a licensee has contravened any of the provisions of the Act, its Rules, or conditions of the licence, section 11 of the Employment Agencies Act empowers the Commissioner for Labour to revoke the licence. The same penalty applies if the licensee is found to have conducted his employment agency business in a manner likely to be detrimental to the interests of his clients. The licensee's security deposit may also be forfeited The Ministry of Labour (MOL) takes a very serious view of violations of the law or regulations by any employment agents. Since March 1992, more than 10 employment agents have had their licences revoked and their security deposits forfeited. To regulate more effectively the employment agencies in Singapore, MOL recently announced a revised set of Employment Agency Rules. These Amended Rules took effect on 1st August 1993. One significant change is the increase in the security deposit, from $10,000 to $20,000. Amongst other things, the amended Rules also allow the Commissioner for Labour to make enquiries regarding persons who may have an interest in the grant or renewal of a licence, whether or not such persons are joined in the licence application. A licence will not be issued if the Commissioner finds the applicant or an interested party unsuitable, such as in the case of undischarged bankrupts, those convicted of offences like fraud, or in cases where it is considered in the public interest not to grant a licence.”
“(a) As at 16th August 1993: (i) 39,335 Singaporeans have opened new CPF accounts and (ii) 71,224 CPF members have activated their CPF accounts. (b) According to the Minister for Finance, the figure of $200 million quoted in his Budget Statement on 26th February 1993 was only an estimate of what the CPF Top-up Scheme is expected to cost Government There is no unused portion because the FY93 Supply Act did not include any provision for this purpose as the scheme was only announced on Budget Day. Accordingly, when the total grant requirement has been determined, payment into the CPF accounts will be made by a drawdown from the Contingencies Fund. The total amount drawn from the Contingencies Fund for this purpose will subsequently be replenished by including it in a Supplementary Supply Bill to be tabled in Parliament. LICENSING OF EMPLOYMENT AGENCIES 11. Dr Kanwaljit Soin asked the Minister for Labour what measures are being taken (i) to regulate foreign maid agencies and (ii) to prevent these agencies from registering under a new company after their original company licence is revoked.”
“This will ensure that CPF savings invested in the project can be recovered since the house would have been fully completed and marketable by the time the CPF savings are released. Sir, the other clause of the Bill which I would like to highlight is clause 2. It introduces a new subsection 21(1)(ba) to enable the CPF Board to place a statutory charge on the house whose construction has been financed by CPF savings withdrawn by the CPF member. The charge is to secure the refund of the CPF savings withdrawn in the event that the member sells the house. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Dr Lee Boon Yang]. Bill considered in Committee; reported without amendment; read a Third time and passed. LAND TITLES BILL (As reported from Select Committee) Order for Third Reading read.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." At present, a CPF member is allowed to use his CPF savings to buy private residential property or one under construction by a developer licensed under the Housing Developers (Control and Licensing) Act. He may also use his CPF to repay a loan taken out for the purchase. However, he is not allowed to use his CPF savings to finance the construction of his own house. This is because of the risk that CPF savings sunk into the project may be lost if it is not completed. On the other hand, the use of CPF savings for properties developed by licensed developers had been allowed because the Ministry of National Development regulates and enforces the Housing Developers (Control and Licensing) Act to protect the interest of house purchasers. A CPF member building a house for himself does not come under the ambit of this Act. Mr Speaker, Sir, the Bill before the House seeks to amend the CPF Act to enable CPF members to withdraw their CPF savings to finance construction of their own house with safeguard for the CPF fund invested in the self-construction project. Sir, the main features are in clause 3 of the Bill. It empowers the Minister to make Regulations to allow CPF members to withdraw their CPF savings to, first, repay any loan taken to finance the purchase of any land and the cost of constructing a house on the land and, secondly, to reimburse themselves the cost for the purchase of any land and the construction of a house on the land. As a safeguard, no such withdrawal will be permitted unless the construction has been completed and a Temporary Occupation Permit has been issued for the house.”
“In the case of foreign domestic workers who bring their problems to our Ministry, we have in most cases been able to resolve them amicably.”
“Mr Speaker, Sir, domestic workers have been exempted from the Employment Act all along and they include local domestic workers, not just foreign domestic workers. The reason is that unlike other employees, domestic workers work for a single employer and live with their employer for the whole period of time. So, foreign domestic workers will live in the households of their employer. Their terms and conditions of employment are highly variable. Some employers require their domestic maids to look after babies; others require their maids to tend to aged persons; some require their maids to do cooking and household cleaning; others just require them only to do maybe household cleaning and no cooking. The fact that the maid lives with the employer and that the conditions are so highly variable it makes it very difficult to have this category of workers included in the Employment Act, which can only spell out very general conditions. In fact, the Employment Act exempts or excludes seamen from such coverage basically for the same reason that they are also working and living on board a vessel for the whole duration, essentially 24 hours a day on board the vessel. Hence, we think that it is not practical to try to include foreign or even local domestic workers within the ambit of the Employment Act. Nevertheless, my Ministry does provide service to the domestic workers, be they foreign or local domestic workers, in the sense that if they have any disputes or grievances with their employer, they are free to come to my Ministry to lodge a complaint or to raise their concerns. My Ministry offers a free conciliation service to such people. Our experience is that our conciliation effort has usually been quite successful.”
“Mr Speaker, Sir, the Ministry condemns the abuse of foreign domestic workers by their employers. The most effective deterrent against such abuse is to promptly investigate any allegations of abuse and to charge employers in court whenever there is evidence of abuse. The Ministry works closely with the Police to ensure that employers who abuse their maids are dealt with firmly. Employers who are convicted of abusing their foreign domestic maids face severe penalties, including imprisonment and caning. They are also barred from future employment of foreign domestic workers. This extends to the person's spouse as well, to prevent future abuse in the household.”
“All transactions are properly documented. In addition, the Board and the agent bank send regular statements to the member informing him of all his transactions of purchase or sale of shares authorised by him. Sir, regular audits are also carried out to ensure that all procedures laid down by the CPF Board and the agent banks are complied with. As most of the transactions are computerised, the audits will also cover the computer system for handling such withdrawal and purchase of shares. With this safeguard, I think the security of members' CPF savings is quite well assured. ABUSE OF FOREIGN MAIDS BY EMPLOYERS (Measures to discourage) 7. Dr Kanwaljit Soin asked the Minister for Labour what measures are being taken to discourage abuse of foreign maids by employers.”
“Mr Speaker, Sir, the arrangement to allow CPF members to withdraw their capital gains from their investments in stocks and shares should not result in a greater opportunity for price-fixing by any individuals or group of individuals. In this respect, I would like to assure the Member that there should not be any possibility for price-fixing which will benefit individual members who are investing their CPF savings. On the question of security features of the CPF system, in view of the large number of CPF members now investing in shares, the Board has, in fact, looked into this matter extensively. It is well aware of the need to ensure that members who enter the investment market have their investments and savings safeguarded. The Board has actually included various security features in the computerised as well as the manual system to ensure that CPF savings withdrawn for investment purposes cannot be wrongfully withdrawn or siphoned off. All withdrawals of CPF savings for investments are channelled direct from the Board to the member's investment account with an agent bank without passing through the member's own bank account. This prevents the loss of CPF savings in transit. In addition, the computerised system checks the validity of all applications of withdrawal before the Board releases CPF savings into the investment account of a member. Sir, shares bought with CPF savings are held in custody by the agent bank. They are not held by the CPF member. In addition, the shares must be registered in the name of the agent bank's nominee instead of the CPF member himself. This ensures that upon sale of the shares, the proceeds will be returned directly to the member's investment account instead of going to the member himself personally.”
“Sir, the number of CPF contributors who used their savings to invest in the Stock Exchange of Singapore is as follows: Year Number 1991 34,675 1992 34,520 January to July 1993 55,520”
“An example of this category of home-based work is the journalist, insurance or property agent who is given the flexibility to operate both from the office and his home.”
“Home-based work is of two categories. In Singapore, most home-based work does not involve employer-employee relationship. The usual arrangement is for a company to enter into a contract for service (as against a contract of service) with an individual party to perform a task or to undertake work at his home, using his own tools and at his own pace without any supervision. As he is not an employee of the company, he will not be paid a salary. Instead, he will be paid a fee based on work done for the company. An example of this type of home-based work is a housewife who undertakes to sew and complete dresses for garment factories in her own homes and at her own pace for a fee on a piece-rate basis. Another example is a freelance accounts personnel who helps a company to prepare and complete a set of accounts and be paid a fee for his services. As there is no employer-employee relationship, our labour laws do not apply to them. Should there be any dispute between the contractual parties, they would have to seek remedies in the Civil Courts. Another category of home-based work is those which involve employer-employee relationship under an employment contract of service. Under their contracts, the employees concerned could operate from both the office and their homes as long as they could deliver what is expected of them. With advanced technology in telecommunications such as computers and fax machines, more and more people are now able to operate from their homes. As long as such persons are covered by an employment contract, they are employees of a company, and the appropriate provisions of our labour laws will apply to them.”
“The International Labour Organisation does not define "casual" workers. It would be very difficult to canvass and obtain information on whether a person is working "casually". In Singapore, we have defined a person who works for less than 30 hours each week to be a part-timer. This may be the closest approximation of a "casual" worker. The June 1992 Labour Force Survey revealed that 50,400 or 3.2% of employed persons worked part-time. Of these, some 33,100 or two-thirds were females, while males numbered 17,300. Majority of these part-timers are Singaporeans. The total number of daily-rated workers is not available. However, there were 4,913 daily-rated workers, mostly Singaporeans, in Government ministries and departments as at end-May 1993. No breakdown by gender is available. LABOUR LAWS ON HOME-BASED WORKERS 8. Dr Kanwaljit Soin asked the Minister for Labour whether there are any guidelines for factories or businesses who contract out home-based work.”
“About 28% of our local workforce have no active CPF accounts. About 41% of self-employed persons have CPF accounts. NUMBER OF PART-TIME AND DAILY-RATED WORKERS 7. Dr Kanwaljit Soin asked the Minister for Labour what is the estimated number of Singaporeans who are (i) casual workers and (ii) daily-rated workers and the gender breakdown.”
“Forty-six percent of CPF members who withdrew their Central Provident Fund at age 55 years in 1992 had set aside the full Minimum Sum. CPF ACCOUNTS OF WORKFORCE AND SELF-EMPLOYED 6. Dr Kanwaljit Soin asked the Minister for Labour what percentage of the workforce (excluding foreign workers) has no active Central Provident Fund accounts and what percentage of the self-employed has CPF accounts.”
“Clauses 5 to 12 inclusive ordered to stand part of the Bill. Bill reported without amendment; read a Third time and passed. CONSTITUTION OF THE REPUBLIC OF SINGAPORE (AMENDMENT) BILL Order for Second Reading read. 4.19 pm”
“But, in reality, you need some penalty to deal with errant employers who will repeatedly flout the law. I understand that Assoc. Prof. Woon is drafting a Bill to legislate on filial piety. I understand that he is drafting a law which will force children to be responsible for the welfare of their parents. It is a very honourable objective. I do not wish to prejudge his draft Bill. But if the filial piety Bill does not have any sanction against offenders, he may well find that the law would have little effect on the hard-hearted children who persist in abandoning their aged and destitute parents. So even in a matter of father and son relationship, the law may well have to provide some sanction against the repeat offender or the violator. What more in the case of employer-employee relationship where we also need to safeguard the interest of the employee from an employer who may repeatedly violate the law. Assoc. Prof. Walter Woon: I thank the Minister for his clarification, but I again think that he has misunderstood me. I do not want to take the penalty out of the Bill. I just think that the penalty is in the wrong place. There is already a penalty under clause 7. You go to conciliation, the Minister makes the order, you ignore the order, there is a penalty. There is no need to have a double penalty because, as I said, there are repercussions that go beyond the Bill. I think what we have is a basic difference of opinion about whether or not such a provision is going to be useful. I think that lawyers being what they are, they will find ways around it. But I respect the Minister's judgement. If he feels that it is not necessary, I hope the conciliation will be sufficient. Amendment negatived. Clause 4 ordered to stand part of the Bill.”
“If an employer contravenes section 81 of the Employment Act, he commits an offence under section 87 and he is liable to a fine not exceeding $1,000 or to imprisonment for a term not exceeding six months or to both. So an offence is created here. Section 53 of the Employment Act states that any employer who employs any person contrary to Part IV of the Employment Act where certain terms and conditions of employment are provided for or fails to pay any salary in accordance with Part IV commits an offence and is liable to a fine not exceeding $1,000. If it is a second conviction, the fine is a sum not exceeding $2,000 or to imprisonment for a term not exceeding one year or to both. Sir, in the Industrial Relations Act, section 82(1) states that an employer shall not dismiss or threaten to dismiss an employee by reason of, inter alia, his becoming an officer or member of a trade union, being a member of a trade union which is seeking to improve working condition. Any employer who contravenes section 82(1) of the Industrial Relations Act commits an offence and is liable to a fine not exceeding $2,000 or to an imprisonment for a term not exceeding 12 months or to both. Sir, such provisions or criminal sanction against violations committed by employers have not soured up employer-employee relationship in Singapore. On the contrary, the provision of criminal sanction has ensured that employers uphold their end of the bargain and that there are far fewer disputes as a result of the provision of sanction. Sir, maybe at the risk of being considered diverting from the main discussion, I understand that Assoc. Prof. Woon has a desire to eliminate the penalty factor from this Bill.”
“Sir, I am grateful to the Member for his strong support of our conciliation process. The Ministry is also of the view that conciliation should be carried out first before any prosecution is contemplated. Here I would like to reassure the Member that it is not the intention of the Ministry to prosecute under clause 4(3) of the Bill all violators of the law. We will, in fact, carry out a process of conciliation to resolve the dispute between employer and employee before we consider any further action. While conciliation will help to settle disputes relating to unlawful dismissal on account of age, we should nevertheless retain the right to prosecute employers who blatantly and repeatedly resort to dismissing employees on account of age. The GPC Chairman for Labour has pointed out that, in fact, some employers may not all be averse to paying some compensation if they feel strongly enough and want to get rid of a particular employee. So compensation alone for the ex-employee may not be sufficient to deter employers from resorting to dismissing workers on account of age. So we should always have some criminal sanctions to act as a deterrent to the employers who, in dismissing their employees, would now have to take greater care to ensure that the dismissal is on valid grounds and not because of age. Sir, similar offences are also provided in both the Employment Act and the Industrial Relations Act. The provision for criminal sanction in employer-employee relationship is not new. Both the Employment Act and the Industrial Relations Act have such a criminal sanction. Section 81 of the Employment Act (Cap. 91) states that no employer can dismiss a female employee who is absent from work because of confinement.”
“If the Minister finds the complaint to be justified, he makes an order, gives a direction. If the employer disobeys this direction, that is the time you impose a fine or jail sentence. But to prosecute someone without going through the conciliation process seems to be redundant if you want conciliation most of the time. This is why I am suggesting that clause 4(3) be taken out, because really it is going to be redundant. That is the first reason. The second is that it is too easy for lawyers to poke holes in it. As we have indicated - Mr Shanmugam has indicated - I think the legal Members of this House will know that lawyers being what they are, they will find a way around this if you have to go through a formal prosecution. Question proposed.”