Lee Tsao Yuan
Singapore
“My last point and, perhaps, the most important, is that the fundamental tenet of democracy is that it must bring the greatest good to the greatest number of people.”
“Clarification, Minister. I think my question was really regarding the last part of your comment which said that you would change the Constitution in order to state whether what part of NII would belong to past reserves and to current reserves. Perhaps I was wrong in this matter.”
“As I see it, Minister, if the change of the Constitution is to define the portion of NII that belongs to past reserves, then would the Minister also consider at the same time including in the Constitution the definition of "reserves" that was stated in the White Paper? Because right now it is not in the Constitution.”
“The Minister stated that he would consider changing the Constitution in order to define NII or the part of NII that goes to current or past reserves. Would the Minister also consider at the same time changing the Constitution in order to incorporate the definition of past reserves in the Constitution?”
“Another clarification, please. As far as I understand from the White Paper, and I could be obtuse, supposing you have a future government that informs the President of the day that it disagrees with the definition of the value of State land, in other words, the value of State land at fair market value at the point of transaction, then tho…”
“The Minister said that the principles in the White Paper are binding and that if a future government so decides to define fair market value as not at the point of transaction but at the time it took over office, then that is clearly in violation of the definition of past reserves.”
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“Corporatisation and full divestment in terms of management.”
“Sir, in terms of the Government divestment programme, does the Government also intend to divest management, and not merely corporatisation? In other words, is it the Government's intention to have a full divestment, including that of management?”
“Mr Lim Swee Say asked the Minister for Labour (a) how many workers were retrenched in 1997; (b) on average, how long these retrenched workers took to find new employment; (c) whether older workers take a longer time than younger workers in securing new employment; and (d) how his Ministry will help retrenched workers, especially those who are unskilled and not-so-young, to find employment. RATE OF UNEMPLOYMENT 4. Mr Chuang Shaw Peng asked the Minister for Labour what is the current rate of unemployment and whether this rate is rising rapidly and, if so, how the Government plans to address this problem.”
“Sir, does the Deputy Prime Minister think that, in light of the fact that probably there will be a real exchange rate devaluation among the regional countries, actually competitiveness will be a bigger issue for us now and particularly in the medium term after these Asian economies recover than before, let us say, July of last year? BG Lee Hsien Loong: I think it will vary from industry to industry. Overall, yes, it will be offset somewhat because we have become more competitive compared to, say, developed countries, and the developed countries were, to some extent, competing against us for investments and exports. But against the neighbouring countries, they will end up somewhat more competitive than us, particularly our more labour-intensive industries. The older plants which have been here for some time - mass production, very low margins - will be under pressure and adjustments will have to be made. At the upper end, the effect on us is not so much on the cost as on the state of the markets, and some of those have been affected too, particularly where they export to the region or where the region has a big influence on world prices. For example, with petrochemicals, when the region boomed it was a big consumer and now that the region is down, prices are down. Some of our projects are going to see investors reconsidering them, and maybe deferring them for some time. But it is part of being in an economic slowdown. RETRENCHED WORKERS (Particulars) 3.”
“The Minister mentioned that Singapore companies that trade in the region probably face problems. Do we have an indication as to the extent of the problems that these Singapore companies face? Is it not possible to have some statistical magnitude of this kind of problem so that we know what is the extent of the problem?”
“We are examining how to help the economy and companies through this difficult period. There are schemes in place such as the Local Enterprise Finance Scheme, where the Government joins the banks to extend credit to small and medium local enterprises, and share the credit risks. Commercial lending decisions by banks, both local and foreign, must continue to be based on the banks' assessment of their relationship and credit risks. Banks will naturally take a long term view of their customer relationships.' However, what the Government can do is to enhance the Local Enterprise Finance Scheme (LEFS). We are studying this and the Minister for Trade and Industry will be explaining this later in his reply to Mr Tay Beng Chuan, if we have time to reach the Question today. We must take the regional economic slowdown in our stride. The Government will continue to invest in economic infrastructure to build up our capabilities and productive capacity. Companies too should use this opportunity to trim costs, restructure and upgrade productivity, so that when the region recovers and becomes more competitive, they will not be left behind.”
“The impact has been mixed, depending on the company's customers and whether its costs and revenues are denominated in regional currencies, Singapore dollar or US dollar. Those with export markets outside the region have not been too badly affected. But those who export to the region for local consumption have been hit by the weaker demand and the problem of debt collection. Some tightening of bank credit is inevitable at a time of uncertainty. However, the MAS' figures show that overall bank lending to non-bank entities is still growing, not contracting. Loans to non-bank customers continued to increase, from $133 billion as at June 1997 to $139 billion as at September 1997 to $143 billion as at December 1997, although there have been some signs that new loans are decreasing now. Interbank rates have also been declining in recent weeks, indicating an easing of liquidity. After hitting a high of 14% in January, the 3-month interbank rate is now back down to 6_%. I know that companies are concerned not just about the interest rate, but also that banks may be pulling back loans altogether. It is difficult and inappropriate for the Government to intervene in such cases. These are commercial lending decisions, which the banks themselves have to take, because the banks, and not the Government, will bear the consequences of the decisions. Mr Lee Yock Suan addressed this issue in his speech on Chinese New Year's Day at the Singapore Chinese Chamber of Commerce and Industry. I quote: `One issue which companies have highlighted to us is the tightening of bank credit as a result of the currency turmoil. There have been some calls for the Government to help companies tide over this credit squeeze.”
“Sir, the Deputy Prime Minister has given the assurance that all local banks are financially sound and they have all made generous provisions for these loans. The figures that he has given are actually for the six local banks in total. I was wondering whether it is possible for the Deputy Prime Minister to actually reveal, not so much in terms of absolute amounts but a relative amount by individual banks in order not to disclose the identity of the banks, if that is actually a concern, in order to allay any suspicion that these banks are indeed, in terms of their total exposure, financially sound. BG Lee Hsien Loong: Mr Speaker, Sir, all the banks are financially sound, from the largest to the smallest. They will all face a difficult year but none of them are in danger. The banks know that I am making this statement today and that this information is coming out. And they also know that when they publish their annual reports, they will have to give further elaboration on their individual exposures. They are expecting to publish their annual reports and their annual results probably early in March. COMPANIES AFFECTED BY ECONOMIC TURMOIL (Assistance) 8. Mrs Lim Hwee Hua asked the Deputy Prime Minister, given the current economic turmoil in the region, how the Government will help companies which are badly affected by both a reduction in demand and a tightening of bank credit, and whether the Government will work with financial institutions to assist such companies. BG Lee Hsien Loong: Mr Speaker, Sir, Singapore cannot escape the regional financial turmoil which affects our neighbours. The Committee on Singapore's Competitiveness, chaired by Mr Lee Yock Suan, has gathered feedback from our businessmen on how they have been affected.”
“This is where the consensus building practice of tripartism has a significant role to play. The tripartite partnership, built up carefully over the years in good times, is there when you need it in bad times. I therefore see tripartism not merely in economic terms, not merely as a competitive advantage. I believe it goes beyond economics. It is an institution that contributes to the very fabric of socio-political stability in Singapore. I also believe that the Asian currency crisis has added an urgency to the task of productivity enhancement in Singapore. Right now, we are affected by the crunch in regional demand and liquidity. However, it is during the recovery phase and beyond when the affected countries are on their way out of their present troubles that there will be a stronger effect on Singapore's competitiveness. We should therefore strengthen the tripartite partnership now in order to implement further productivity enhancing and other labour market reforms in preparation for a more competitive future. In conclusion, I am optimistic about Singapore's future in the midst of the currency crisis not only because of our strong economic fundamentals but also because of strong socio-economic institutions, such as tripartism. I support the motion.”
“In the light of the labour issues which have come to the forefront and the need to raise tripartism to a higher plane, I would like to propose that the mandate of the NWC be broadened to include a regular discussion and recommendation on manpower issues, such as skills retraining, health care financing, working mothers and foreign worker productivity. At present, there is limited discussion within the NWC on these issues as the predominant topic is wages. What I would like to see is an enlargement of the agenda of the NWC to include manpower issues as well as wage negotiations. This would amount to a formalisation of the existing system of the NWC supplemented by ad-hoc tripartite committees. In order to reflect its enlarged mandate, the Council could be renamed, for example, the Tripartite Advisory Council on Manpower. This Council could be a body which the proposed new Ministry of Manpower could tap for advice and recommendations. The fourth point I would like to make is to reflect on the Asian currency crisis and its implications for Singapore and tripartism. The Asian currency crisis has come as a tremendous shock to us in Asia because of its magnitude and the suddenness of the contagion effect. It reminds us of how volatile the international economic environment can be. And that no matter how strong a country's economic fundamentals, interdependence means transmission of this volatility. It is in these volatile and uncertain times that the strength of a country's social and political institution is tested. The ability to rally a country in times of crisis is primarily a task of the political leadership. But that task is made easier if there were already in place mechanisms to achieve that common mindset to take the pain and bite the bullet.”
“An aging society has to consider the institutional arrangements for health care and employment of older workers. These two have already been elaborated by the union speakers before me. In labour-short Singapore, we have yet to attain that balance of encouraging women to work on the one hand, while at the same time enabling them to continue to look after not just children but also aged parents on the other. Also, since foreign work permit holders constitute a not insignificant proportion of our workforce, we need to think of how we can increase the productivity of foreign work permit holders. The solutions to these issues are not easy because they involve changes to established norms and practices. They will take time, determination and much effort. Government cannot handle these issues alone, nor can business, nor can unions. They are best handled and discussed, implemented in the tripartite framework. The benefit of tripartism is that it forges a common vision and a common determination to implement change for the common good. I therefore agree that there is a need to strengthen tripartism to meet the challenge of change. The third point I would like to make is to raise a proposal as to how tripartism can be strengthened. At present, the main instrument of tripartism is the National Wages Council. The NWC was established in 1972 with the objective of recommending wage increases. Over the years, it has shifted from recommending quantitative wage guidelines to qualitative wage guidelines. It has also been active in encouraging other aspects of labour market reform, such as the flexible wage system, and there has been discussion on co-payment of health care cost and increasing the female labour force participation rate.”
“Third, NTUC and tripartism have also been instrumental in encouraging labour market reforms, such as the switch from fixed to flexible wages that Minister Lim Boon Heng mentioned, and in raising the retirement age from 60 to 62. It is often difficult to change established practices. But tripartism has enabled these adaptations to be made to the Singapore labour system for the good of workers and employers alike. The second point I would like to make is that Singapore's competitive edge in the future will increasingly entail a greater dependence not on the hardware, such as physical infrastructure but on the software. This includes an innovative culture, quick response time and continued flexibility to adapt to rapidly changing circumstances. All these attributes have one denominator - the ability to bring about change in society. The speed of change is crucially dependent on the organisation of that particular society and in particular on its socio-political institutions. That society which is organised in such a way that desired changes can be brought about rapidly and peacefully will be that society that can survive shocks and adapt, even ride on trends in the external environment. I would like to outline some of the forces which are relevant to the labour market and how tripartism as a key labour market institution can help us to successfully meet these challenges head-on. The cutting edge issues in the labour market have to do with responding to three key trends in the world today - technological change, globalisation and aging. Technological change and globalisation both accelerate the obsolescence of skills and make re-training essential for continued productivity.”
“Mr Speaker, Sir, at the outset, let me first state that I have been a member of the National Wages Council for two years. The NWC is one of the key instruments of tripartism in Singapore and I have therefore had the opportunity to observe the workings of tripartite partnership at first hand. I would like to make four points. The first point I would like to make is that I agree that tripartism has been a key competitive advantage. It is one of the main socio-economic institutions that has contributed to peaceful industrial relationship in Singapore and has helped to achieve labour market reforms in order to lower the cost of doing business and increase productivity. This tripartite partnership has served Singapore well in three respects. The good industrial relations that we have had in Singapore cannot just be attributed to our labour laws alone which permit workers to strike only after recourse to arbitration. Rather it is due to the meeting of minds of unions, business and Government representatives, achieved after considerable discussions and negotiations. This tradition of dialogue is now well established in Singapore. Its anchor is the NWC which meets intensively for several months each year principally to negotiate wage increases. In its 25 years of existence, the NWC has indeed contributed significantly towards peaceful industrial relations in Singapore. Second, during the 1985-86 recession, the most important policy change that turned the economy around was the one-off reduction in total labour cost when employers' contribution to the CPF was cut from 25% to 10%, reducing total labour cost overnight by 12%. Without the push from the labour unions and Government, this would not have occurred peacefully.”
“If the policy is to increase the supply of manpower to train specialists for the caring profession, then in as much as income is also one factor in considering working in the caring profession, should not measures also be taken to look into the salary structures for the people in the caring profession?”
“My question is: at what point, or at what stage, was it very early on?”
“Could the Minister of State please inform the House at what stage did the Singapore Government convey to the Malaysian Government that they would match the toll rates charged by them?”
“If it is because of the huge size, would it not be possible actually to break them down into small bits, so that the private sector can then chew on them?”
“If indeed that is the longer term objective, would it be possible for the Minister to outline what actually are the criteria for these companies to be divested? Perhaps then they could be divested earlier because these criteria can be satisfied.”
“Is it not there in a sense then a sort of fundamental dilemma with Government-linked companies because, on the one hand, you do want them to be publicly accountable and, on the other hand, you do want them to be entrepreneurial, and for that you would indeed have to take risk, and when you take risk, there is indeed a risk of failure?”
“Is there a sense now, because of what happened with Micropolis, that Government-linked companies are subject to greater public accountability and public scrutiny than private sector companies?”
“Is it correct then to assume that except for these very large investments of over $500 million, to all intents and purposes, Government-linked companies run and operate like commercial companies in the private sector?”
“The figures which the Deputy Prime Minister has mentioned really show that exposure to Indonesia and the other countries which are badly affected by the Asian currency crisis is really rather small. Is there, in his view, therefore any reason why the banking counters at our stock exchange had actually fallen so rapidly, except for yesterday? BG Lee Hsien Loong: There are two things on which the MAS never expresses its views. One is the stock market, the other is the exchange rate.”
“To the extent that there is indeed an acceleration of offshore investments from Singapore, particularly of the lower end, would the Minister expect then that there would actually be some more medium term effect, say, for example, on unskilled workers in Singapore?”
“Sir, to the extent that the other ASEAN countries as well as Korea are able to effect a real depreciation of their currencies, would not the Minister anticipate that there will be greater cost competitive pressures on Singapore, and also that there will actually be a greater outflow of investments from Singapore as a result of this, bearing in mind that it is not just the ASEAN countries but also our competitors, eg, Korea, that have depreciated in terms of their currencies?”
“May I ask the Minister whether he anticipates that the recent Causeway jam will have a negative effect on companies' decisions to relocate their investments to Johor?”
“Will the Minister please comment on the effect on the Singapore economy of, first, weaker regional currencies and, second, possible lowering of regional growth rates? Dr Richard Hu Tsu Tau: I mentioned that the immediate impact is very small, certainly for this year. The longer term effect depends entirely on how long these large depreciations of the neighbouring countries' currencies persist. Clearly, in the case of, say, Thailand, the impact on us is not likely to be very large because their basket of export goods is very dissimilar to ours. Similarly, for Indonesia. The largest impact probably lies with the Malaysian currency. If the large differential persists, then of course, the issue of competitiveness against us becomes a little more important because there is some overlap in the middle range. So a great deal depends on how long the differential exists. The lowering of the value of the Malaysian ringgit, for example, obviously has pluses and minuses. Where we purchase, say, consumption goods from Malaysia, like food products, over time the prices should ease. Of course, the negative effect is that it would make Singapore become much more expensive from the Malaysian consumers' point of view. So tourism will be affected. The impact varies across industries, but the most important factor is how long these economies will remain under stress and the longer term impact on us will depend very much on how the growth rates of these countries are affected.”
“Could I ask the Minister whether in the spirit of ASEAN cooperation, Singapore and the other ASEAN countries could do more in the next few weeks and also in terms of preventive measures in future?”
“The third theme is that accompanying Singapore's rapid economic growth has been equally rapid changes in norms, expectations and lifestyles. For example, 65% of first-time applicants for HDB flats opted for 5-room and Executive flats in 1995 compared to 47% in 1992. In other words, in just three years, there has been a change of 18 percentage points in terms of the numbers of first-time applicants who opted for 5-room and Executive flats. Why do norms in Singapore have to change so rapidly? If 3- or 4-room HDB flats were good enough for our parents and even for us when we were growing up, why are they no longer good enough for the present generation now? Have some of us gotten on to the treadmill of rising norms only to face the frustration of unfulfilled expectations? To summarise, the basics are still affordable in Singapore, 3- and 4-room HDB flats, primary and secondary school education, bus fares. It would be hard put to say that these are beyond the reach even of the majority of Singaporeans regardless of income levels. However, A class and private hospital health care, private property, cars, these are expensive in a thriving city state located in a booming Asian region. It is ultimately a lifestyle choice and what one can afford. Take, air travel, for example. There is really no necessity to opt for first-class or even business class. Economy class gets you to your destination in exactly the same time on the same plane. I support the motion, Sir.”
“This included university tuition fees that Mr Chay Wai Chuen just referred to and A and B1 hospital ward charges. It is also instructive that while the price of a 4-room Model A HDB flat increased by an average annual rate of 5.4% between 1992 and 1995, that for 5-room and Executive flats increased by 10% and 11.2%, respectively, about double that of the annual increase of 4-room Model A HDB flats. Does this mean then that the Goverment system of pricing is no good and should be changed? One must consider that the other side of the coin is that while subsidies have been reduced, so have taxes. The corporate tax rate is now 26% while the highest marginal personal income tax rate is 28%, relatively low by international standards. We do not have large budget deficits because of subsidies which are difficult to control. I believe that market rate pricing of Government services is the most efficient system available to allocate scarce resources. I also support the Goverment's policy of continued subsidies in order to make basic services affordable, particularly for the poor and the needy. Dr Soin has elaborated at length on the need for such affordability, particularly in the case where for the poor and the needy, they need these subsidies in order to make basic services affordable. However, I do not support subsidies for what can be considered more luxurious accommodation, such as Executive Condominiums. I would also urge Government agencies, statutory boards and corporatised agencies to think twice, perhaps more than twice, before increasing Government fees and charges. The multiplier effects are actually quite considerable when these fees and charges are raised. Price increases should be considered as a measure of last resort, not just to maintain profits and surpluses.”
“In essence, this could be summarised as market rates, wherever possible, with subsidies for essential services based on a sliding scale. Take, land, for example. Government land sales are now by tender in the open market. Land acquired under the Land Acquisition Act used to be compensated at historical prices which bore no relation to reality. But now compensation for land is much closer to market rates. The principle of market rate valuation plus the rise in land prices in a booming economy could be one factor while the land cost index for HDB housing rose by 24.9% per year during 1992 to 1995. This in turn was one of the two major reasons for the price increases of HDB flats during the period. In the area of essential social services, such as health, housing and education, the Government still grants subsidies but on a sliding scale. C class wards have a subsidy rate of 80%; B2 wards, 65%; B1 wards, 20% and A class, none at all. Similarly, it used to be that the subsidy rate for 3- and 4-room HDB flats was about 30% of the total development cost, while that for 5-room and Executive flats was about 10%. More recently, it was announced that there would be a price guarantee for 3- and 4-room HDB flats so that at least 90% and 70% respectively of Singaporean households would be able to pay their monthly mortgages entirely out of their CPF. Similarly, subsidies in education are nearly 100% for primary, secondary, junior college and vocational education, while it is 78% for university education. What this meant was that where subsidy rates were higher than the target levels, the reduction in the actual subsidy rates contributed towards price increases in the relevant services.”
“Discount the more overtly political elements, if you will, but I would urge Singaporeans not to throw the baby out along with the bath water. Many of the recommendations made by the CRC are good, sensible ones which could genuinely help in keeping costs down. The second theme is one which has been lurking beneath the surface and that is the question: to what extent is the Government to be blamed for the rise in the cost of living? I believe that the first and most important factor accounting for the rise in the cost of living in the 1990s is the booming economy. The economy grew at 8.9% per year from 1992 to 1995. With such buoyant demand and constraints in supply, wages increased by 7.1% and property prices also rose. Wage and rental costs have worked their way into the pricing of goods and services, particularly of domestic services. For example, a bowl of noodles is more expensive and has less ingredients in it now than even five years ago. Were it not for the fact that the Singapore dollar appreciated during this period, inflation would have been even higher than what it has been. Does this mean therefore that Government policy had no part to play at all in the rise in prices? I do not think so. Certain Government policies have had the effect of contributing towards an increase in demand and hence a rise in prices. For example, where HDB resale flats are concerned, the sharp rise in prices in 1993 is clearly associated with the easing of the HDB mortgage loan scheme from 80% of 1984 posted prices to 80% of market value. The reverse has also been experienced with the stricter property market regulations introduced in May this year. There is another factor. This is the Government's philosophy of pricing public sector goods and services.”
“Mr Speaker, Sir, let me declare at the outset that I am a member of the Cost Review Committee. Since I have been part of the process, I fully support and endorse the Report and its conclusions. I would urge the Government to seriously consider the recommendations, particularly for the poor and the elderly. Affordability of basic essential services is key to a socially cohesive Singapore. What I would like to do today is to elaborate on three themes related to the Report. The first theme is to consider the view that the reconvening of the CRC is politically motivated, that it is yet another political move made by the PAP Government in its attempt to get at the opposition. After all, the CRC is chaired by a Cabinet Minister and the Deputy Chairman is a long time PAP MP. The CRC, as this view goes, is therefore not really independent and cannot be expected to criticise the Government. Most importantly, the general election is around the corner. In my view, there is undoubtedly a political element in the reconvening of the Cost Review Committee. The issue of the rising cost of living in Singapore has once again become a hot domestic issue. SDP and PKMS have politicised this by making the claim that the rise in the cost of living has been no less than phenomenal and that there has been a statistical massage of the numbers. However, the fact that this issue has become politicised makes it no less an issue of sufficient importance. It therefore merits serious consideration with or without its politicisation. It affects the life of many Singaporeans, every Singaporean. The SDP-PKMS' allegations provided an occasion for the reconvening of the CRC.”
“Sir, would the Senior Parliamentary Secretary and the Ministry care to review the basis for the allocation of priority housing for grassroots leaders in the light of his comment regarding charitable welfare organisations? It would seem to me that those working in volunteer welfare organisations would also deserve proximity to their place of work in the charitable welfare organisations on the same basis as for grassroots leaders. Would the Senior Parliamentary Secretary care to comment on this, please?”
“Sir, the Senior Parliamentary Secretary said that the reason is that grassroots leaders have to do work in that particular area. My point is that it would seem to me that priority allocation for HDB flats is perceived as a reward. Is it not possible also to give that same kind of reward to those who do volunteer work in the vicinity in the same way as for grassroots work? I would again ask for the Senior Parliamentary Secretary's opinion as to whether one views charity work on the same level as that of grassroots work.”
“Sir, the Senior Parliamentary Secretary gives the reason of proximity for priority allocation for those doing constituency work. Will the same reason of proximity not also apply to those doing volunteer work in welfare organisations in the vicinity?”
“Question No. 6, Sir. The Senior Parliamentary Secretary to the Minister for National Development (Mr Matthias Yao Chih) (for the Minister for National Development): Mr Speaker, Sir, HDB grants priority allocation of flats to grassroots leaders under the Grassroots Organisations Priority Scheme. At present, 5% of the flats offered in HDB estates are set aside for the Scheme. Under the Scheme, the grassroots leaders must meet the HDB eligibility conditions on citizenship, income ceiling, family nucleus and non-ownership of private property. In addition, they must have at least three years of continuous service, immediately prior to their flat applications, in the Citizens' Consultative Committee (CCC), Community Centre Management Committee (CCMC), Youth Executive Committee (YEC), Women Executive Committee (WEC), Residents' Committee (RC) or Boys' Club Management Committee (BCMC). At the time the grassroots leaders take possession of the flats that they have selected, they must still be serving members in the grassroots organisations. They also cannot transfer their flats which are allocated under priority to another family member or sell them in the open market within five years. As at August of this year, there are about 130,000 applicants for HDB flats. HDB does not intend to broaden the Grassroots Organisations Priority Scheme. Those who do charity work in voluntary welfare organisations would be recognised in other ways.”
“Question No. 4, Sir. The Senior Parliamentary Secretary to the Minister for Home Affairs (Assoc. Prof. Ho Peng Kee) (for the Minister for Home Affairs): Mr Speaker, Sir, the Police follow strict procedures when dealing with minors, ie, those who are 16 years and below, who are arrested. While the law allows the Police to detain persons of all ages for up to 48 hours, procedurally, officers are directed not to detain minors for more than four hours unless there are extenuating circumstances to justify longer detention. In such instances, clearance from supervisors of at least the Chief Investigating Officer level who is a police officer of inspector rank or above would have to be sought. Sir, police also exercise great care when interviewing minors. Officers will assess if a minor is able to communicate properly and understand the questions being asked. Depending on the nature of the case and the mental state of the minor, his parents or relatives may be invited to be present during the interview if the police deem that they could help in the interview. For a minor who is mentally abnormal, specialists in the training of such children may also be called in to assist in the interview. TRANSPORTATION OF WORKERS IN OPEN PICK-UP TRUCKS (Measures to modify practice) The following Question stood in the name of Dr Kanwaljit Soin 5. To ask the Minister for Communications if he will consider instituting measures to modify the dangerous practice of transporting workers in open pick-up trucks.”
“Providing them with re-training would contribute towards helping them to find meaningful employment and contribute towards their sense of dignity and self-worth. I therefore support this amendment. I hope, however, that the Government will not just stop here but will implement all changes necessary to help bring about this flexibility between work in the marketplace, work at home and retirement. For example, the Back to Work scheme recently elaborated on by the Minister of State is a very good start. It involves 18 companies which are offering more than 3,200 service jobs and the Skills Development Fund will give each employer $350 per trainee. But so far the scheme only involves 18 companies. I hope that more companies will join the current 18 in the scheme. And I hope also that in Singapore we will soon evolve a mindset and a structure whereby we will see women moving in and out of the workforce in order to be able to efficiently and fully balance their child-bearing, family responsibilities and work.”
“Mr Speaker, Sir, one of the main objectives of this amendment is to widen the scope of the use of the Skills Development Fund to include not only employed persons but also to train persons to join or re-join the workforce. I have three points to make in this regard. First, the amendment will further our economic goals. There is an estimated target group of about 150,000 persons who are not working but can work. This comprises nearly 9% of the 1.7 million workforce which is not an insignificant proportion. It will therefore help ease our tight labour constraint if some of these people were to join or re-join the workforce. For this, they would need training and re-training. Use of the Skills Development Fund for this purpose will be beneficial to employers, the people themselves, as well as to the nation. Second, the use of the Fund to train people to re-join the workforce also contributes towards our social goals. It is important for society to recognise that it is not easy for women to balance family and work responsibility and that structures and institutions should be adjusted in order to help women to do so. This is for the sake of the family in particular, and society as a whole. One option is for women to work part- time, flexi-time or to re-join the workforce after a few years of child caring. The amendment Bill helps precisely in this purpose. Third, the use of the Fund also helps in enabling older people, retirees to be gainfully employed. Nowadays, with an average life expectancy of about 75 years, many older people are still physically and intellectually active and can be employed even when they are above 60.”
“With the release of these Executive Condominiums, what is the Ministry's assessment regarding the market for private condominiums? In particular, would the Ministry assess that it actually has a dampening effect on the price of similar types of private condominiums?”
“Does the Ministry intend to have these flats sold at more or less the same prices as for Eastvale and Westmere?”
“The income statistics do show that income distribution has improved and not deteriorated over time. Where then is the perception? I merely wish to point out that perhaps there could be a larger issue than just the issue of property discounts for Ministers. Similarly, this House extensively debated a White Paper on Ministerial salaries. At that time, I stated that I agreed with the philosophy but had problems with the methodology. However, perhaps there are still some who do not agree with the philosophy of private sector benchmarking for Ministerial salaries. If this is the case, then it is important for the Government to convince this segment of the population. In conclusion, I hope that Singapore society and the Government do not over-react. There is indeed at this time an overlay of political sensitivity, no doubt because of the upcoming general election. The Government is concerned that political hay not be made out of this issue. Although there would be attempts to do so, I certainly hope that we as Singaporeans can address this issue coolly and calmly. They can also over-react by introducing even stricter measures to ensure clean Government in Singapore. I believe that there are already sufficient safeguards. As far as I am concerned, the Singapore Government is clean enough.”
“For many years, the principle of meritocracy has led to plenty of real-life examples that those with ability can make it, no matter whether one's parents are hawkers or taxi drivers, no matter what the colour of one's skin, the system recognised and rewarded talent. Education was freely available and was a great equaliser. If one grew up in an attap house, one could with dedication, effort and capability purchase landed property and a Mercedes-Benz, if not a Lexus to boot. That was the Singapore dream. Perhaps for some, that dream is now fading away. Property prices have risen so much more rapidly than average income growth that many have asked in despair whether they would ever be able to buy landed property. Now, one way to own such property is through inheritance or the generosity of one's parents. With nearly 60% of the cohort receiving tertiary education, education is now seen as a basic necessity. Where before one has it made if one were a university graduate, it is no longer all that big a deal these days to be a university graduate. What are the equalisers in Singapore society now? Will the rich get richer? Is there a privileged class emerging in Singapore, a trend accelerated because of the pulls towards more unequal income distribution world-wide? These are questions that some in Singapore are now asking. Hence, the fact that there are indeed a privileged few who are eligible for property discounts exacerbates the frustrations of those who feel that the good things in life are beyond their reach. Could this be an underlying reason for the hue and cry? Whether there is indeed an emerging elitism in Singapore society is an issue that should be addressed at length, I believe, but not in this debate.”
“Mr Speaker, Sir, in my mind, there has never been a question regarding the financial integrity of the Senior Minister and the Deputy Prime Minister, not when the news first broke out regarding their property purchases, not when reading subsequent statements. This view has in fact been reinforced by listening to the speeches made yesterday. I am glad that there is this opportunity to clear the air. Clean government has not only been a distinguishing hallmark of the PAP Government, it has become a bedrock on which Singapore as a nation has been built. Clean government is an issue of political legitimacy and the moral authority to govern. We need to make every effort to preserve this fundamental tenet of our system of governance, and there must not be any doubt regarding the financial integrity of Cabinet members and of the civil service. Why then the extent of unhappiness over this matter? I think that the unexpectedly intense negative public reaction is a result of three larger issues. I realise that there may be some digression from the issue at hand regarding financial integrity, but it may be useful for the House to examine some of these larger issues because they concern society at large. The first could be the perception that there is the emergence of a privileged class in Singapore. The second, that the discount pertains to a matter which is very close to the Singaporean's heart, not food this time, but property. The third is that there are some who still hold fast to the notion that public service should involve, if not sacrifice, at least not what they would consider exceptional accumulation of wealth.”
“This can be done in phases. The first phase could constitute the establishment of two three-week executive management programmes. These could be taught jointly by university staff from Singapore and staff from the local university. The second phase could be the establishment of MBA courses abroad. It would be desirable to include in these two-year programmes a visit to Singapore of, say, three to four weeks or even a business attachment to a business company located in Singapore in order to enable the students to get a flavour of the business culture here. While I would suggest that one starts with business programmes, this concept could also be applied to engineering and computer sciences, among others. These are all skills which are in high demand in Asian developing countries and Singapore has some degree of experience and expertise that it can offer. In conclusion, the emphasis on education in Singapore has been a major factor of our economic success. It is time to share this with other countries in a way which is mutually beneficial to all.”
“Sir, Singapore's regionalisation is proceeding in a rapid pace. Many manufacturing companies have established production plants overseas. Companies in the services sector, such as architects, engineers, retail and hotel, have also gone overseas. However, one area where Singapore is rather slow to regionalise in is educational services. There is a huge demand for education in Asia. Rapid economic growth has created unprecedented opportunities for professional, technician and skilled workers in these countries. In all of these countries, people see education as the means to secure a better future. For the economy as a whole, human resource development is the key to sustained economic performance. While the hunger for education is true at all levels, it is particularly true for business education. In Asian countries, such as China, India, Indonesia and Vietnam, for instance, there are many who are eager to learn about modern management techniques in order to apply international best practice in their businesses. I would like to suggest that our educational institutions, particularly the business faculties of our two universities, accelerate their regionalisation programme while there is this unique window of opportunity in the region. The business faculties of our two universities are, to some extent, already meeting this demand. Foreign students do enrol in the MBA courses as well as the shorter executive management programmes in our universities. Some of these courses are especially tailor-made for foreign participants. While this is a laudable effort, coming to Singapore is costly in terms of airfare and accommodation. What can also be done is to establish business courses abroad, for example, in training programmes with foreign universities.”
“I would like to propose that the Ministry of Community Development initiate a research project on the societal implications of the increasing female labour force participation rate in Singapore, particularly on the implications for child care. We have already emphasised the importance of having children, three or more if you can afford it. This is to correct the rapid decline in the national birth rate in the past. I believe that since the beginning of this policy, the birth rate has indeed gone up. However, this is not enough. In the bringing up of the young generation, to realise their full potential in the future there is probably no other more important factor than that of the parents, and for the younger children, that of the role of the mother. If indeed the results of the study do show that there is a positive link between working mothers and child care, then as a society, we need to do something about it. If not, and if the results show that there is no relationship, then there is nothing to worry about in terms of the increased female labour force participation rate. In my mind, it is always better to leave no stone unturned than to discover the mistake 20 years too late.”
“Sir, the female labour force participation rate has increased from nearly 30% in 1970 to 50% in 1995. In other words, half of all women of ages 15 and over are either working or looking for work. However, the labour force participation rates for the age groups where women are most likely to be mothers of young children are even higher. For the 25 to 29 age group, it was 77%; the 30 to 34 age group, 64%; and 35 to 39 age group, 58%. Note that the female labour force participation rates are higher for the younger age groups than for the older. In other words, it has probably become more the norm than the exception for women to continue working after they become mothers. Singapore is short of labour and women can contribute to society by working. My question is: are there implications for the quality of child care of the increased female labour force participation rate and in particular of working mothers? Is there a danger that the quality of child care will suffer? Is there any evidence linking the increased lack of discipline, for example, in schools to the lack of quality child care at home, or of the rise in juvenile delinquency? I simply do not know. In terms of child care itself, one can say that it all depends on the quality of child care, whether there are extended family members and/or domestic help who share the responsibility of looking after the children during the day, the quality of child care centres, and so on. Societal factors, friends, etc, also play a part. Nevertheless, I think that this complex question does bear some thorough examination.”
“Rather it does mean that public communication becomes more important for the Government. Public communication of Government policy is by and large the domain of politicians. This is rightly so. However, this is not enough. There are many occasions where briefings and speeches are done not by Ministers, Ministers of State or Parliamentary Secretaries, but by senior Government officials. I would therefore like to suggest that public communication be part and parcel of the skills package of senior civil servants. In other words, in order to rise through the ranks, a civil servant should not only be able to manage well but also to be able to communicate well, orally as well as in writing. Public communication is a skill that can be developed. I believe that articulate Permanent Secretaries and Deputy Secretaries would greatly enhance the public communication ability of the Government. In conclusion, I have attempted to distinguish between two categories of principles of economic governance - those that have remained essentially unchanged over the years and those which have undergone significant modification. I have also attempted to offer some suggestions as to improvement of a few of these principles. Just as a company succeeds by adapting its products to changing demand, a nation succeeds by adapting and refining its policies in response to the changing international and domestic environment. Singapore has succeeded these last 30-odd years by doing so, and I hope that Singapore will continue to have the creativity and boldness to do so in the future. 2.50 pm”
“As an economist, I agree that in order for the market mechanism to allocate factors efficiently, factored prices should reflect their true scarcity. In order to have optimal effect, correct factor pricing should be implemented across the board throughout the economy. This will then result in the correct pricing of output and if there is a subsidy, the true extent of subsidy in each activity. But I wonder whether this has indeed been implemented across the board. I refer in particular to the pricing of land. For land-intensive projects under the public sector, has the full price of land been factored in, for example, for HDB housing and for roads? I suspect that if this were indeed done, the extent of subsidy would be higher than what the public realises. A fourth and final principle that I would like to touch on pertains to the fundamental reforms to the civil service that the Minister for Finance described in his Budget speech. Credit goes to the Government for recognising the need for change to keep up with our stage of economic development and for implementating "PS 21". I agree with the Minister that, "On the domestic front, the emergence of a generation of better educated Singaporeans and an ageing population means higher expectations of and demands on all aspects of public services." A more educated population is one which is more aware of public policy and would like to know why certain policies are implemented the way they are and why others are not. The days are past when the population would merely accept the Government's word that it knows best what to do. A more educated population will ask questions, and I think that it is the Government's responsibility to answer. It does not mean that there need be any change in Government policy per se.”