Lee Yock Suan
Singapore
“The position will be clear when the regulations have been drafted. Right now we are debating it in the absence of actual wording of the regulations. The regulations will be fair, they are meant to maintain a level playing field, and we should wait for the regulations before we pass judgement. The intention is not to go after everybody.”
“I think the Member will be aware that Internet is a very dangerous place. We can have all kinds of poison letters and they will just spread like wild fire. So we must have some means to try and minimise this and make sure that everything is orderly and fair.”
“The other Members have no problem supporting the Bill, including Mr Chiam. I think the position is about 95% clear. 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. - [Mr Lee Yock Suan].”
“Then we will have to see the actual situation. But, as I said, the intention is to go after the popular sites, the main sites of parties and non-party political sites. If it is an individual, eg, a young man posting up his own site and saying "These are my views", we are not going to go after those people.”
“The intention is to make the rules clear for the main parties involved in the contest, in other words, the party websites. These are the areas we are mainly after.”
“I thank Mr Chiam for reminding me about his question. On listening to his speech, I was under the impression that he was asking whether this ban on opinion polls applies to the mass media. The answer is yes, it applies to all media, not just the Internet but also newspapers, TV and so on. Thank you for pointing this out.”
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“The workers are permitted to change jobs if they wish. My Ministry also permits, and indeed encourages, employers, regardless of size and economic sector, to recruit foreign workers who have valuable skills or qualifications. This is done through the 3-year work permit scheme which allows companies to recruit vocationally skilled or academically qualified workers. Foreign workers, for example, who have an NTC-2 Trade Certificate, or 5 '0' levels, can be employed in any sector of the economy.”
“Mr Deputy Speaker, Sir, in issuing work permits, a balance has to be struck between the need to help employers meet labour shortages and the need to minimize and mitigate the social and other problems associated with a large population of foreign workers. To try and achieve this balance, our foreign workers policy has the following features: (a) Additional foreign workers are admitted to the four approved sectors which are manufacturing, hotels, construction and domestic services. Manufacturing and hotels are export-oriented economic sectors, earning valuable foreign exchange for the economy. They have to face international competition. The availability of foreign workers to meet shortages helps these sectors to remain internationally competitive. The foreign workers serve as a buffer to cushion the swings in our economic cycle. The construction and domestic service sectors face perennial lbour shortages because of the reluctance of Singaporeans to work in these sectors. The construction industry is also cyclical in nature. (b) Companies are not allowed to recruit foreign workers beyond 50% of their workforce. This is to ensure that companies do not become over-dependent on foreign workers. (c) A levy has been applied on all new foreign workers. The levy serves to dampen demand for unskilled foreign workers. Within these broad guidelines, companies, whether small, medium-sized or large, local or foreign, may be permitted to recruit foreign workers. Companies are differentiated not by their size but by the nature of their operations, whether they are export-oriented and whether they can contribute to the upgrading of our economy. Companies that fall outside the guidelines are allowed to retain and renew the work permits of their existing foreign workers.”
“ADJOURNMENT Resolved, "That Parliament do now adjourn to a date to be fixed." - [Mr Wong Kan Seng]. Adjourned accordingly at Twenty-Seven Minutes to One o'clock pm to a date to be fixed. WRITTEN ANSWERS TO QUESTIONS COMMON MRT/BUS TICKETS 1. Mr Heng Chiang Meng asked the Minister for Communications and Information what is the status of the discussions on a combined fare structure for Mass Rapid Transit/bus commuters and when such new fares will be implemented.”
“53 - 54) Adjusted rates of contribution for pensionable employees in the transitional years will also be pegged at 60% of the adjusted rates for employees in the respective age groups in the private sector. BILLS INTRODUCED 12.30 pm EVIDENCE (AMENDMENT) BILL "to amend the Evidence Act (Chapter 97 of the 1985 Revised Edition)", presented by the Second Minister for Law (Prof. S. Jayakumar); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. ESTATE DUTY (AMENDMENT) BILL "to amend the Estate Duty Act (Chapter 96 of the 1985 Revised Edition)", recommendation of President signified; presented by the Minister for Finance (Dr Richard Hu Tsu Tau); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. SINGAPORE TOTALISATOR BOARD BILL "to provide for the establishment of the Singapore Totalisator Board and to regulate the conduct of betting by agencies of the Board, and for matters connected therewith", presented by Dr Richard Hu Tsu Tau; read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. INCOME TAX (AMENDMENT) BILL "to amend the Income Tax Act (Chapter 134 of the 1985 Revised Edition)", recommendation of President signified; presented by Dr Richard Hu Tsu Tau; read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. CENTRAL PROVIDENT FUND (AMENDMENT NO. 2) BILL "to amend the Central Provident Fund Act (Chapter 36 of the 1985 Revised Edition)", presented by the Minister for Labour (Mr Lee Yock Suan); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.”
“Mr Deputy Speaker, Sir, on the 28th July this year, I informed this House about the long-term target CPF rates which are applicable to the private sector as well as non-pensionable public sector employees. The Government has since decided on the long-term rates for pensionable employees in the public sector. Prior to the CPF cut in April 1986, the employer's CPF rate for pensionable employees in the public sector was 15%. This was 60% of the private sector rate of 25%. After the CPF cut, the employer's CPF contribution rate for pensionable employees was reduced to 6%. This is 60% of the private sector rate of 10%. The Government has decided to set the long-term rates for pensionable employees at 60% of the rate for each respective age group in the private sector. The current relativity in CPF contribution rates between pensionable public sector employees on the one hand and private sector employees as well as non-pensionable public sector employees on the other will thus be maintained. The target total contribution rate is therefore 24% for pensionable employees below age 55, 15% for those aged 55 to 59, 9% for those aged 60 to 64 and 6% for those 65 years old and above. I now ask the Clerk of Parliament to distribute an Annex (Cols. 53 - 54) which shows the target CPF rates for pensionable public sector employees. For comparison, the already announced long-term CPF rates for employees in the private sector are also given in the Annex. [Copies of document distributed to hon. Members.] Annex - LONG-TERM CPF RATES FOR PENSIONABLE PUBLIC SECTOR EMPLOYEES, LONG-TERM CPF RATES FOR PRIVATE SECTOR AND NON-PENSIONABLE PUBLIC SECTOR EMPLOYEES (Cols.”
“Mr Deputy Speaker, Sir, the Member seems to have a liking for asking detailed questions about numbers. I do not carry these numbers with me in my head. If he is interested, he could file a separate question for a later sitting and I would be happy to answer the question. CHILDCARE PERSONNEL (Training and Development) 16. Mrs Yu-Foo Yee Shoon asked the Minister for Community Development, with the emphasis given to the quality of childcare, whether the Government is paying adequate attention to the training and development of childcare personnel and whether his Ministry will give accreditation to the childcare training programme of the National Trades Union Congress which came into operation in 1985, so that there can be more qualified personnel available for childcare services.”
“Mr Deputy Speaker, Sir, there are very few workers here from China. They are here basically for training, for example, in the construction sector.”
“The working environment is unpleasant and the image of the firm is poor; 3. The company has more than 50% foreign workers in its workforce and is not allowed to recruit any more foreign workers; 4. The firm has been blacklisted for employing foreign workers illegally. The Member's question implies that the Government has to make available sufficient workers to meet whatever demand. With our limited working population this means an increasing access to foreign workers. Such a liberal policy would not be to our national interest. The current econo- mic situation is such that a ready supply of foreign workers tends to create its own demand. There will be no incentive to optimize the use of local manpower, to employ older Singaporean workers and housewives and to increase productivity through automation and improved work methods. Too liberal an inflow of foreign workers will also depress local wages and attract more unskilled labour-intensive operations to Singapore. The Government has to carry out a difficult balancing task. We have to allow a regulated inflow of foreign workers to facilitate healthy economic growth and upgrading whilst avoiding over-dependence on foreign workers. Economic growth should not be achieved simply by importing an ever-increasing number of foreign workers. Our goal should be to upgrade the level of our economy so that Singaporeans can be trained and employed in better paid jobs. To achieve this, both employers and workers must be prepared to make the necessary adjustments and to play their parts.”
“Mr Deputy Speaker, Sir, in terms of employment, the manufacturing sector has been the fastest growing sector this year. In the first eight months of this year, it created about 32,000 new jobs compared to 9,000 in the commerce sector, 2,500 in the transport and communications sector and 2,000 in the finance and business service sector. The growth in manufacturing has been mainly in the electronics and garment industries which account for about 60% of the job increases. These two industries as well as the retail sector have a preference for young unskilled female workers who are in short supply. With economic recovery, many jobs created have been taken up by new entrants to the labour market from our schools, vocational institutes, Polytechnics and Universities as well as by retrenched workers and other unemployed Singaporeans. Since June last year, about 30,000 unemployed Singaporeans have found jobs. There are also an estimated 36,000 Singaporeans classified as economically inactive who have indicated interest in seeking employment. To prevent the labour market from getting too tight, the Government has allowed the liberal entry of foreign workers into the four approved sectors which are manufacturing, hotels, construction and domestic maids. This policy indirectly benefits the other sectors of the economy by untightening the labour market. Foreign work permit holders who have been employed in the unapproved sectors have been allowed to remain in those sectors and to change jobs if they wish. Apart from increased competition for workers, certain firms may have difficulty in recruiting and retaining sufficient workers for various reasons. Some examples are: 1. The firm pays salaries which are below market rates; 2.”
“Mr Deputy Speaker, I will be answering questions on the work permit policy in reply to Questions 15 and 30. Maybe the Member can ask his question later. ECONOMIC SECTORS IN TIGHT LABOUR SUPPLY (Measures to ease) 15. Dr S. Vasoo asked the Minister for Labour (a) which economic sectors are facing a tighter supply of labour; and (b) what actions are being taken to ensure an adequate supply of labour to these economic sectors.”
“Mr Deputy Speaker, Sir, I do not have the figures here.”
“Mr Speaker, Sir, may I answer Questions 13 and 14 together as they overlap. The latest labour force survey in September 1987 shows that there were an estimated 44,700 unemployed persons, a decline of 14,100 persons from June 1987. This gives an unemployment rate of 3.6%, down from the 4.7% recorded in June 1987. With economic recovery, the unemployment situation has improved as many of the jobs created have been taken up by Singaporeans. My Ministry has been encouraging companies to employ more part-time workers as an additional source to meet their labour requirements. Our survey shows that about 27,000 housewives are interested to return to work. Of these, about 12,000 would like to work part-time. This is a potential pool of persons for employers to attract back to the workforce by devising part-time schemes with working hours which suit these women. There is also the pool of retired workers some of whom may be prepared to seek part-time employment. My Ministry is presently looking into how the Employment Act can be amended to facilitate part-time employment. I have made clear that the Government would like employers in the private sector to raise the retirement age of their workers to 60 years. In July this year I informed the House of the Government's intention to gradually reduce the CPF contribution rates for employees working beyond 55 years of age to facilitate the raising of the retirement age. I hope employers and their unions will settle this issue during the negotiations of new collective agreements. My Ministry will closely monitor progress on this issue. My Ministry is regulating the entry of foreign workers into Singapore. I will explain our work permit policy later in reply to Questions 15 and 30. 11.28 am [Mr Deputy Speaker in the Chair]”
“And that is why many of the maids want their work permits extended beyond two years, beyond four years, for a long time, and many more want to come.”
“Mr Deputy Speaker, Sir, I just want to make a point of clarification. When the Member for Potong Pasir was speaking, I did not want to interrupt him. He said that the Ministry of Labour referred maids to the Geylang Catholic Welfare Centre when they had problems. To my knowledge, this is incorrect. Of course, there are a lot of maids and I cannot know about every single case. I think it is true to say that maids went to the Centre on their own and the Centre subsequently referred their problems to us, and we tried to resolve their problems or difficulties with their employers. In general, when maids come to us we try and reconcile them with their employers. And occasionally we refer them to the Philippines Embassy where they have a Labour Attache to look after their problems. They even have a half-way house to accommodate these people. I would also like to take this opportunity to say that generally Filipino maids are very happy in Singapore. We have done a study of them and most of them are well treated. They are very happy here. And yet the Geylang Catholic Welfare Centre blew up the magnitude of the problems of some maids. They are bound to have a few problem cases. Yet the Centre blew up the whole problem and the result was to tarnish our image abroad. Furthermore, there was this play by the drama group called the Third Stage, which was involved in the conspiracy. The scriptwriters, the performers, were among this group of people who were arrested. The whole slant of the play was to exaggerate the problems of the maids. In fact, I think some of the people involved subsequently confessed on television what they were up to. The fact is that most employers in Singapore are good employers. They treat their maids very well.”
“Jayakumar); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. INTOXICATING SUBSTANCES BILL "to prohibit the misuse of certain substances which may cause intoxication when inhaled and for purposes connected therewith", presented by Prof. S. Jayakumar; read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. ACCOUNTANTS BILL "to provide for the establishment of the Public Accountants Board and for purposes connected therewith and to repeal and re-enact with amendments the Accountants Act (Chapter 2 of the 1985 Revised Edition)", presented by the Minister for Finance (Dr Richard Hu Tsu Tau); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. ECONOMIC EXPANSION INCENTIVES (RELIEF FROM INCOME TAX) (AMENDMENT) BILL "to amend the Economic Expansion Incentives (Relief from Income Tax) Act (Chapter 86 of the 1985 Revised Edition)", recommendation of President signified; presented by the Minister for Trade and Industry (BG Lee Hsien Loong); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. PUBLIC TRANSPORT COUNCIL BILL Order for Second Reading read.”
“If you open this avenue for education, the result will be that there would be more pressure on parents to send their children overseas. As for local education, there is already a loan scheme. I was told by the Minister for Education that, in fact, for this year for the new recruits to NUS and NTI, only about 16% have applied for the soft loan. So, in fact, most parents can afford to send their children to the local universities. But the important point is that we should have a system where the young graduates have a loan and pay off after they graduate, instead of depending on their parents' CPF which are rather low and required for their parents' own old age needs. I realize that this is an emotional issue and everybody thinks education is very important. I think so too. And that is why the Government is spending so much money on education and is subsidizing it so heavily. But the basic question we have to ask is whether a CPF scheme which is meant for old-age financial security of individual members should be led astray into areas quite unrelated to old age savings. I think I have covered most of the points. BILLS INTRODUCED 2.45 pm CONSTITUTION OF THE REPUBLIC OF SINGAPORE (AMENDMENT) BILL "to amend the Constitution of the Republic of Singapore", presented by the Second Minister for Law (Prof. S. Jayakumar); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. SINGAPORE CORPORATION OF REHABILITATIVE ENTERPRISES (AMENDMENT) BILL "to amend the Singapore Corporation of Rehabilitative Enterprises Act (Chapter 298 of the 1985 Revised Edition)", presented by the Minister for Home Affairs (Prof. S.”
“It is a better way than, say, having a quantum limit which would in effect benefit the richer workers who are above the cut-off point and there will be a problem of setting the quantum where, at whatever level, it may be too high for the lower income groups and too low for the high income groups. So the idea is to have a kind of a ceiling that is dependent on your income level. He asked for data on aggregate consumption and savings. I do not have these details here. I will supply him later. The Member for Paya Lebar, as usual, persists with his question on education. As I have explained, the CPF rate is calculated based on just the three basic needs. That is why we are able to keep it at 40% instead of going all the way up to 50%. If we go all the way up to 50%, it means there will be less take-home pay for the workers. There will be more cash flow soaked up from the economy. Since the CPF rate is only sufficient for the three objectives, it means that if you make any kind of withdrawal from the account for other uses, whatever it is, education for example, it must mean that the savings will be less than adequate for the member concerned. So education has not been taken in as one of the basic objectives of the scheme, the way it is designed. I have a feeling that the people who are clamouring for the use of CPF for education are the very few privileged ones who can afford to and who want to send their children overseas. It is difficult for the Government to design a scheme to cater for this group of people. Our scheme is meant for the vast majority of CPF members who have very low accounts at the moment. I have mentioned the figure of 85% of CPF members having less than $40,000 in their accounts, excluding housing.”
“On that basis we projected over a long period of about 30 years from the time a new worker starts work at about 21, 22 years and so on, all the way until age 60. So the CPF rate of 40% maintained over that period until age 60 will be sufficient to cover the three objectives I have mentioned. The Member for Leng Kee asked a few questions. One was: how long is long-term? I have answered the question. The second one is about assumed inflation rate. We have not assumed the inflation rate as such but we have netted off and calculated in real terms what will be the real increase in prices and so forth. He posed this question: why do we not vary the CPF rate with income instead of with age? The thinking is that it is better to vary with age because of three reasons. One is that it is more equitable. Everybody pays the same rate more or less. So whether you are at this income level or that income level, the savings are a certain percentage of your income. There is a good reason for this, and that is, a person's expenditure, needs and saving requirements are related to his income. By so doing, we project on a uniform basis for all the employees and the changes are only done with age, beyond 55, to encourage the employment of these older workers. To a certain extent, it also conforms with the cash flow requirements of the workers as they age. In fact, by so doing we are having a different ceiling of CPF contributions for each individual. It depends on this uniform rate and how long he works and how much his income is.”
“Whether companies are making money or losing money, unfortunately they will still have to pay close to the market rates to keep their workers and to make sure they are not too unhappy. So to a certain extent, you can regard this CPF rate as part of market rates. I think these companies should, pursue wage reform vigorously and in that situation a flexible wage will be helpful for them. The fourth question he posed is that since we are limiting the CPF rate to 40%, which is sufficient for the three basic objectives of the CPF scheme, whether this means that there will be more room for individual savings, for example, for use for education. That is, in fact, the philosophy of the Government - that we should not have too high a CPF rate. We should have a rate that is sufficient for the members to cover the three basic objectives of housing, retirement income and Medisave. Beyond that, it would be better for the members to have a higher take-home pay from which they can save on their own for education of their children, for example, or for other uses. The Member for Whampoa asked about the macro-economic impact. I think I have answered that question. He also asked how we calculate the CPF rate and whether projections could be made available. The calculations are very complicated. We had to go through computers and there is a whole pile of computer printouts. If the Member is interested, I can show them to him. Basically, we have taken a conservative approach. We have assumed certain moderate pay increases. We have calculated in real terms, that means after inflation. We have also assumed the HDB prices prevailing now, with slight adjustments, and so on.”
“We have estimated that if we increase the CPF rate from 35% to 40%, this will result in a net contribution to the CPF of about $600 million per year. This is something that can be tolerated if the restoration is done over a period of years with economic expansion and also as we liberalize the CPF scheme to open up more investment avenues. So the CPF rate of 40% will be tolerable in terms of the impact on our cash flow, exchange rate, and so on. The Member also asked whether it is contrary to our objective of encouraging the employment of older workers to have an increase in the employer's CPF rate from 10% to 12.5% for members in the age group 55 to 60. This may appear to be an apparent contradiction. But the important thing to note is that the total CPF contribution rate for employees in this age group will be 25% after the full restoration, which is lower than the previous 50% and lower than the 40% for younger workers. Both the employers and employees' CPF are part of wage cost. There could be adjustments to lower the wage cost for those employees in situations where this should be done. But there could be some workers who are age above 55 who deserve what they are being paid and, therefore, in that situation there will be a slight increase in the employer's rate and the employees' own take-home pay will also go up. The Member asked what happens to companies losing money. Well, as I have said, we will implement the adjustments in those years when the economy can afford it. Next year, for example, if the economy continues to do well, then we will make the adjustments. In that kind of situation, hopefully most companies will be making money and able to afford a certain wage increase, from which we will take a certain portion for the CPF to make the restoration.”
“Mr Deputy Speaker, Sir, I was answering a question from the Member for Cairnhill regarding the part-time employees, before we broke off for lunch. As I explained, the workers in the lower salary group will also benefit from the reduction in the employees' CPF rate. There is, in fact, already a lower rate for workers who earn less than $363 per month. Most of the part-time workers will probably be in this group and therefore their CPF contribution rate will, in fact, be less than for other workers. There are a number of problems in reducing the CPF rate for part-time workers. One is that there could a tendency for some workers to take on two part-time jobs instead of one full-time job. The other consideration is that part-time workers also need to have CPF to meet the three basic objectives of housing, Medisave and retirement income. Therefore, there are advantages in having a uniform rate for all categories of workers. But we can look further into this question. I was searching for some data on the number of employees above age 55 years old, in response to the Member for Pasir Panjang's question. Details of CPF members, of course, will be found in the CPF Report. The data here are for employed persons as of now. In the age group 55-59, there are about 37,000 of them; age 60-64, 19,000; age 65- 69, 9,800; age 70-74, 5,300; age 75-79, 1,900; and age above 80, 828. So there are obviously quite a few employees well above 60 years old who are still working. The Member for Radin Mas asked a number of questions. One of them concerns the cash flow problem, the overall liquidity situation. This was also asked, in a different way, by the Member for Whampoa. At the current rate of 35% CPF contribution, the inflow to the CPF Board roughly balances the outflow.”
“But in relation to this question, I would like to clarify that at present those workers earning below $363 per month, in fact pay less than the full CPF rate. The employers pay the full rate but the employees pay less than the current 25%. Those who are earning less than $200 per month pay nothing. The employee's CPF contribution is zero. At $200, the rate is 10% and then it goes up progressively to 25% at $363 per month. With the cut in the CPF rate on the employee's side, the lower paid workers will similarly get the benefit of lower CPF contributions on their part. In other words, those earning $200 per month will pay eventually 5% instead of 10% and so on. So they will benefit by the full 5 percentage point cut. Most part-time workers, I think, will be in the --- Mr Deputy Speaker: Order. It is 1.00 pm. I suspend the Sitting and will take the Chair again at 2.30 pm. Sitting accordingly suspended at 1.00 pm until 2.30 pm. Sitting resumed at 2.30 pm [Mr Deputy Speaker in the Chair] LONG-TERM CENTRAL PROVIDENT FUND RATES OF CONTRIBUTION Resumption of Questions.”
“Or to go one step further, if they are really that valuable, through private negotiations, there could be enhancement of salary since the CPF has been reduced. So there will be all kinds of situations. But I think in general where productivity has gone down with age then it is fair that there should be some adjustments. The Member asked the question: What are target rates? Do they represent a cap on the CPF rates? I think the Member for Leng Kee also asked a similar question. How long is long-term? The answer is this. We have done a careful study of all the factors and the conclusion is that 40% is enough for the three basic objectives of housing, retirement income and Medisave. Therefore, we will restore the CPF rate progressively to this final 40% and the intention is to hold this 40% for as long as we can to give stability both for employers and employees. But there could be economic situations where we have no choice. For example, there could be a severe bout of recession before we have built up the variable wage component. The preference will be to vary the wage component first and not touch the CPF. We will not touch it unless we cannot avoid it. It will be a kind of last resort. There could be another situation where we have hyper-inflation when it may be wise to soak off some of the money into CPF. Both these situations will be temporary situations, the intention being to restore back to the 40% as soon as possible. This is the meaning of target rates. The Member also asked the question about part-time workers, whether we could lower the rates to encourage their employment. This is something that requires further study.”
“This will go into their pocket as increased pay and they can make use of that to service their housing loan instalments. So all in, they will have 30% plus 4% plus 5%, a total of 39% points to service their housing loans. This is almost the same level as before, 40%. In addition, the CPF contribution will increase as salaries increase over the years. So the quantum will increase. We do not think the housing problem will be a serious one. The Member for Cairnhill has asked for data on the number of collective agreements which provide for retirement age above 55. I have some data here. If we exclude the marine officers who are on short-term contracts, there are about 933 collective agreements at present. Out of this number, 136 or 15% specify retirement age of 60 years. Some even provide for employment beyond 60, subject to mutual agreement and health permitting. 11 collective agreements provide for retirement at age 57 or 58 years. 67 collective agreements do not specify the retirement age. I think they will follow the norm of 55 at the moment. The remaining 719 collective agreements specify retirement at 55 years, the majority of them with the option to be re-engaged subject to medical fitness and mutual consent. This is the baseline from which we hope in three to four years' time to go generally to 60 years. The Member also asked whether there are any collective agreements where the wage scale is reduced after age 55. I am not sure of this point. But again I want to emphasize that this is not something that will have to apply to everybody. In fact, for those workers who are very valuable to the employers, there is a possibility that the salary will be maintained and therefore with the lower CPF rates they will have more take-home pay.”
“So what we are trying to do is to make it feasible for them to go on working beyond 55. We have done a study of numbers affected by the new CPF rates. Of those above age 55, we reckon that not more than 500 persons will be in some difficulty, in the sense of having to dip into their pockets beyond their CPF balances. As for the other members, there are about 280,000 CPF members who are still servicing housing loans, both private and public. We estimate that perhaps 10,000 may have to supplement their loan instalments with cash. The number is actually very small as a percentage of the total number who are still servicing their housing loans and there are various schmes to assist them, for example, the HDB scheme of extended repayment, ballooning, and so on. As for private property owners, we have a bridging loan scheme. But as of now, only 17 persons have made use of the scheme. So there does not seem to be a very big problem for this group of people. On this question of housing, I should elaborate a little bit. Before the CPF cut, out of the 50% CPF rate, 40 percentage points went into the Ordinary Account which could be used for housing. After the cut, out of the 35%, 29 percentage points went into the Ordinary Account. So it was reduced from 40% to 29%. With the restoration to the final 40% rate for workers below 55, 30 percentage points will go into Ordinary Account, 4 percentage points into Special Account and 6 percentage points into Medisave. For those members who have housing loan commitments, they will be able to make use of the 30% in the Ordinary Account plus the 4% in the Special Account, if they have exhausted their Ordinary Account. In addition, they will have the 5 percentage points which will be the reduction in the employee's CPF rate.”
“The retirement age is already 60 or 65 years in most developed countries. Our life expectancy has gone up. At the present moment it is about 75 or 76 years for males and 78 years for females. We are somewhat similar to the Japanese situation 15 years ago. Right now the Japanese life expectancy is about three years more. By the turn of the century, our life expectancy may well be in the 80's. So it is important that the employees should continue to work as long as they can. That is why the Government is so keen to raise the retirement age. The question was raised: What would happen to the CPF rate of pensionable officers? This is a detail which we are working out and there are various other details which will be announced in due course. Coming now to the questions from the Member for Yuhua. She asked for clarification of the time-frame for implementing the transition to the new rates. I have mentioned that if things go well, we will make our first move next year. Then we will have to observe the economic performance every year and, if conditions permit, we will make the adjustments. It is difficult to put an actual time-frame on it. It will depend on economic performance. But the intention is not to delay this unduly. I do not know, it may take five years. It depends on our economic performance. She asked whether we have considered the problems of those above age 55 in implementing the new rates. I think she has in mind mainly this question of housing loans. We have some data on this. There are about 7,200 CPF members who are above age 55 and who are still servicing their housing loans with CPF contributions. The important thing for this group of workers is that they should continue to be employed beyond age 55 because without employment there will be no pay, no CPF.”
“Those employed after that date form the vast majority of employees and with few exceptions, for example the uniformed services, the retirement age is now 60 for the public sector. Whether the Government will consider raising it for the other groups, I think the numbers affected are small because most of them would have retired by now. This is a question that I will pass over to the Minister for Finance because it is really in his field and it has to be looked into further. The Member for Buona Vista pointed out a technical error in the Annex. I thank him for it. Of course, at age 55, there is this question of the birthday - whether you are just below or above 55. The first line "below 55" means up to but not including age 55, and the other column "Above 55" means 55 and above, and so on. So this is the borderline situation. Coming now to the Member for Pasir Panjang. He was asking for numbers affected in the different age groups. I do not have the detailed numbers on CPF contributors with me. It should be in the CPF Report but I have some figures on the number of people employed beyond age 55. I think the figures should be quite similar. I will supply the data to him later on. His question No. 2: Will the public sector take the lead? The public sector has, in fact, taken the lead for many years already. The retirement age is in fact 60 for almost all employees in the public sector who joined on or after 1st July 1956. That was 31 years ago. By now the majority of those who joined before that date would have retired. But it is important that Government should set the lead. I would also appeal to all the union leaders and the public in general to understand the issue and make the necessary adjustments.”
“In those situations, I think it will not be feasible to simply insist that the employers raise the retirement age. What we have done is to lower their CPF rates to make it possible to lower the cost of employing the workers without affecting, if possible, their take-home pay. But it may not be sufficient in some cases, for example, where the wage scale is very long. There are some situations where the older employees at the top of the scale may be paid as much as three times the starting salary. So if we assume that the correct market wage may be somewhere in the middle, those at the top may, in fact, be paid 50% over their market value. The adjustments in the CPF rates may not be sufficient to correct for this factor. So it is important that both union leaders and the workers realize that it is in their self-interest to make the necessary adjustments, not only through the CPF rates but also, if necessary, through wage scales. Otherwise there will be no employment opportunities beyond 55. The third question: I think I have already answered it. It is not necessary that this will apply in every case. We are proposing these new rates for the different age groups. The rates will apply across the board to all the workers in the same age group. The expectation is that with negotiations, adjustments and so on, we will eventually reach a new equilibrium where the rates are at those levels and hopefully the workers will also be employed up to age 60 or beyond, and the economics will sustain that kind of a situation. Question No. 4: Will the Government set the example by also extending the retirement age of public sector employees who were employed before 1st July 1956? It is true that those employees who joined the Government before 1st July 1956 have a retirement age of 55.”
“Mr Deputy Speaker, Sir, as usual, Members have shown very keen interest in this issue and I thank them for their questions and comments. It will give me the opportunity to clarify various aspects. I will deal with the questions in the order they were raised. First, the questions from the Member for Kebun Baru. How will the new CPF rates for those above age 55 be implemented? The answer is that as we adjust the rates for the younger workers, we will also adjust the rates for the older workers. So both the rates for the younger workers and the older workers will be in phases. The time scales may not be identical but the basic concept is that it is better to phase in the rates to allow the people affected time to adjust, both the employers as well as the employees. Second question: whether this call to employers to negotiate, if necessary, lower wage scales beyond age 55 will cause delays in the wage reform process? Yes, it is true that wage reform is very important and I hope the employers will not delay unduly. With economic recovery on the way, it is important that they reform the wages as soon as possible. That obviously is top priority. But at the same time the Government is keen to raise the retirement age to 60, progressively. So it may be a good idea if we can start work straightaway and if the employers and the unions can get together to discuss this issue. It does not mean that wage scales will have to be lowered for all workers beyond age 55. There could be certain categories of workers, for example, brain services, where, in fact, the performance improves with experience and age. But there are certain other jobs, say, the manual ones, where clearly some workers may be overpaid when they are at the top of their wage scales.”
“Second, since the Minister has suggested that lower wage scales beyond the age of 55 may be necessary and that this should be taken into account in wage reform, is he not concerned that inclusion of this item in current wage reform negotiations may slow down the process? Third, is the Minister suggesting that, in general, wage scales should be lower for those above 55? Will there not be cases where the wage scales may, in fact, be higher beyond the age of 55? Finally, will the Government set a stronger example in employing older workers? Whilst the Minister has stated that the retirement age for workers in the public sector is 60, in fact those who were employed before 1st July 1956 have their retirement age still at 55. Would the Government consider raising the retirement age for these workers also to 60 years old?”
“As the economy is still recovering from the recession, the CPF rate will remain unchanged this year. Next year if the economy continues to improve, the Government is likely to raise the CPF rate with effect from 1st July 1988. Employers and employees should already take this into account in their wage negotiations this year. For example, if employer's contributions are raised by 3 percentage points, and employee's contributions are reduced by 1 percentage point, the total rate will be increased by 2 percentage points for workers below age 55. Simultaneous adjustments will also be made for older workers. This adjustment would increase employer's wage costs by 3% and employee's take-home pay by 1%, even if basic wages remain unchanged. Both employer's and employee's contributions are part of total wage costs. The CPF rate increase must therefore be part of an agreed overall wage increase for the year, and not be added on to it. The Government will decide on the 1988 adjustments to the CPF contribution rates after the economic results for the first quarter of 1988 are known. Similar adjustments in the years when the economy is performing well will gradually restore the total CPF rate for workers below age 55 to 40%, consisting of equal contributions by employers and employees. Mr Lim Boon Heng (Kebun Baru): Mr Deputy Speaker, Sir, the Minister's Statement is welcomed and I think it will be generally supported by both employers and employees. It is good to know what the long-term rate of CPF contribution by both employers and employees is going to be. I have a few questions to ask the Minister. First, I would like to ask him to clarify how he intends to implement the CPF contribution rate beyond the age of 55. It is not quite clear to me in the Statement.”
“It will review the situation in three to four years to decide whether any further measures should be taken. As regards the CPF rates beyond 55, most CPF members aged above 55 would have met their housing commitments in full and do not require as high a CPF rate as younger members. For those still servicing housing loans, it is important that they continue to be employed so that they will have the means to service their loans. They also need to accumulate further savings in their Medisave accounts to better provide for their medical expenses which are likely to increase with age and with improvements in medical science. Special Account Contributions to the Special Account have been suspended since April last year when the CPF contribution rate was cut by 15 percentage points. With future increases in CPF contribution, up to 4 percentage points will be channelled into the Special Account. This will help to ensure that members do not invest their entire CPF savings in property but will retain a cash reserve to provide them with at least a small income after retirement. However, some existing home-buyers have already committed to housing loans based on the previous 50% CPF rate. They will be permitted to draw on their Special Accounts to meet their committed loan instalments after they have exhausted their Ordinary Accounts. The Special Account will also serve as a buffer which can be more readily adjusted in a recession as the funds are not committed for housing. Implementation We must restore the CPF rate without hurting our international competitiveness. The restoration will be phased in over several years, in step with economic growth and increased productivity. The adjustments for older workers will also be in gradual steps.”
“Most workers should continue to be gainfully employed to age 60 or beyond, even though they will be able to withdraw their CPF savings at age 55. CPF Rate for Older Employees The Government encourages employers to extend the retirement age from 55 to 60. With longer life expectancy, workers should continue to be employed as long as they can be of value to their employers. 60 is already the retirement age in the Civil Service. However, with long seniority-based time scales, the wages of older workers may be higher than the market values of their jobs. Simply raising the retirement age without correcting the wage structure will burden companies with higher wage costs and impair their competitiveness. To lower the cost of employing older workers, the Government will progressively reduce the total CPF contribution rate beyond the age of 55 as shown in the Annex. But this by itself will not solve the problem. Wage reform must also be pursued vigorously, to shorten the wage scales and cap the salaries at the top of long scales. New, lower salary scales beyond age 55 may also need to be worked out. Employers and unions should therefore begin to negotiate higher retirement ages and new wage scales for older workers in their collective agreements. The retirement age should be raised progressively to 60, except in those jobs which are unsuitable for older workers. One way to do so is to phase the adjustment over, say, five years. Thus employees who are now 50 years old and below will retire at the age of 60, those now aged 51 will retire at the age of 59, and so on. The Government would like to see the retirement age raised on a voluntary basis, by agreement between employers and workers.”
“Mr Deputy Speaker, Sir, the Government has completed its study on the appropriate long-term rates and structure of Central Provident Fund contributions. The present contribution rate is 10% for employers and 25% for employees, making a total of 35%. After careful study, taking into consideration both social and economic factors, the Government has decided on the following rates. The target CPF total contribution rate is 40% for members below age 55, 25% for those aged 55 to 60, 15% for those aged 60 to 65 and 10% for those above 65 years old. The employer's and the employee's contribution rates will be equal. I now ask the Clerk of Parliament to distribute an Annex (Cols. 1425 - 1426) which shows the target CPF rates. Annex - TARGET LONG-TERM CPF RATES (Cols. 1425 - 1426) [Copies of Annex distributed to hon. Members.] Projections of CPF Balances Computations of CPF balances at ages 55 and 60 have been made for different income groups of new CPF members assuming various CPF contributions rates. These members are assumed to purchase housing commensurate with their income levels. After providing for Medisave, the end balances are computed and converted into equivalent monthly annuities to compare with the members' projected take-home pay. We can thus assess whether the end balances will be adequate for the members to live on over their average life span after retirement. The target CPF contribution rates will be just sufficient to provide for the three basic objectives of retirement income, housing and Medisave, if the CPF member retires at age 60. He would have a CPF balance which would be sufficient for him to draw down at the rate of about 20% to 40% of his last take-home pay.”
“Mr Deputy Speaker, Sir, a member can withdraw his CPF savings before reaching the age of 55 years if he: (1) leaves Singapore and West Malaysia permanently; or (2) having left Singapore for West Malaysia, has attained 50 years of age and has not worked in Singapore for at least two years; or (3) becomes permanently disabled; or (4) is found to be of unsound mind. The details requested for are shown in a Table (Cols. 1417 - 1418) which I would now ask the Clerk to distribute to Members. Table - NO. OF ACCOUNT HOLDERS WHO WITHDREW THEIR CPF SAVINGS BEFORE AGE 55 (Cols. 1417 - 1418) MOTOR VEHICLE DRIVING TESTS (Pass figures and cases of violence against testers) 12. Dr Ho Tat Kin asked the Minister for Home Affairs, in the last five years, what were the percentages of driving examinees who passed (i) after the first test, (ii) after the second test and (iii) after three or more tests; and how many cases of violence by driving examinees against driving testers were reported during the same period.”
“Mr Deputy Speaker, Sir, under the Minimum Sum Scheme, CPF members may place their minimum sum with a bank or with the CPF Board or in an annuity policy. Up to the end of May, 30 members bought annuities with their minimum sums as compared to 154 who put them in their banks, and 1,891 who left them with the CPF Board. Only a small number of CPF members have chosen to buy annuities probably because the concept of annuities is still new to most Singaporeans. More efforts will need to be made to educate the public on the benefits of annuities as an investment for old age. On its part, the CPF Board has published a guide book on the Minimum Sum Scheme. It includes details of the various approved annuity schemes provided by insurance companies. It is distributed free to members who join the Minimum Sum Scheme at age 55. The staff of the Board have also been drawing the members' attention to the advantages of buying annuities with their minimum sums when they come to the Board to withdraw their CPF savings. My Ministry will collaborate with insurance companies to further educate the public on the advantages of annuities as a form of investment for their old age savings. CPF WITHDRAWALS BEFORE AGE OF 55 YEARS (Figures) 11. Mr Lau Ping Sum asked the Minister for Labour if he will provide the number of Central Provident Fund account holders who, for various reasons, had withdrawn their CPF savings before the age of 55 in the years 1984 to 1986.”
“There are two fishing ports at Jurong and Punggol to serve as operational bases for the local fishing fleet. The wharves are backed-up with auction markets for local fishermen to sell off their catch. The Government is also constructing a live fish market at Punggol Fishing Port at a cost of $0.8 million. When completed in mid-1987, it will enable local fish farmers to market their produce more effectively. The Trade Development Board recently led a trade mission to Indonesia to explore further cooperation in fisheries and agriculture. The Indonesian government has now agreed to issue permits to our fishermen to fish in their waters. The Government is also actively promoting the development of marine fish farming and intensive high-tech marine aquaculture farms in Singapore. 100 hectares of sea area in our coastal waters have been designated for marine fish farming. So far, 66 marine fish farms occupying about 35 hectares have been established. 32 hectares of coastal land at Loyang have also been set aside for intensive high- tech marine aquaculture farms. The Primary Production Department (PPD) continues to provide technical assistance to fish farms to upgrade their farming technology. It regularly conducts training courses for fish farmers and their employees. PPD also undertakes research and development works on fish farming technology and fish disease control which are of direct benefit to local fish farms.”
“Sir, I have just given him the result of the review. The result is negative, for the time being. EXIT PERMITS FOR RESERVISTS 10. Dr Ho Tat Kin asked the First Deputy Prime Minister and Minister for Defence if he will consider (i) issuing multiple exit permits to reservists who are on overseas postings and (ii) granting reservists going overseas for further studies exit permits for the duration of the course instead of on a yearly basis. BG Lee Hsien Loong: Mr Deputy Speaker, Sir, again on behalf of my Minister. As a general rule, reservists on overseas postings are granted single trip exit permits valid for one year. Those who are able to produce documentary proof of overseas employment of more than one year would be granted single trip exit permits with a maximum validity period not exceeding three years. Multiple trip exit permits valid up to a year are issued to those who need to return to Singapore frequently during the validity period of their exit permits. For reservists who are on overseas course of study, Mindef would grant them exit permits for the full duration of the course. What the Member is asking to be done is, therefore, already being done. ASSISTANCE TO SINGAPORE FISHERMEN 11. Mr Chiam See Tong asked the Minister for National Development whether the Government (i) is willing to give assistance in whatever form to Singapore fishermen who fish in international and/or local waters and (ii) has any plans to boost the fishing industry in Singapore. Dr Lee Boon Yang (for the Minister for National Development): Mr Deputy Speaker, Sir, on behalf of my Minister. The Government supports Singapore fishermen and the fishing industry by providing the necessary infrastructure and technical assistance.”
“Mr Heng Chiang Meng (Jalan Kayu): Sir, may I remind the Minister that on 18th March last year, he gave the same answer and he did say that a more concrete conclusion would be given at the end of last year after a review. May I ask what is the conclusion of that review?”
“Mr Deputy Speaker, Sir, at present a CPF member can use his CPF savings to service a mortgage loan which is obtained for the purpose of financing the purchase of a property. He is not allowed to use CPF savings to service mortgage loans obtained for other purposes. Besides providing for retirement needs, the CPF Scheme also encourages home-ownership. Where loans are for the purchase of homes, both objectives are met. In other cases the loans are for purposes other than home-ownership. Allowing CPF funds to be used to service such loans would tantamount to releasing CPF funds for other uses. In some cases property-owners have mortgaged their properties to raise funds for other purposes. A few may be facing difficulty in servicing their loans and would like to have access to their CPF savings to pay their debt. If the Government allows refinancing in such cases on grounds of hardship, the question is what constitutes hardship. In genuine cases of hardship, the property owners may, in any case, have to downgrade their properties. They could sell their existing properties and buy smaller ones instead, using their CPF savings. This option is open to them. In the case of Singapore trustee shares and gold, it is not practical to disallow the refinancing of such investments with CPF funds. Such investments are easily traded. Somewhat different considerations apply to properties. The sums involved are much larger and the assets are relatively more difficult to buy and sell. On balance, the Government has not decided to allow CPF savings for refinancing of properties. However, if necessary, this issue could be reviewed at a later date.”
“Mr Deputy Speaker, Sir, there are no indications that the extension of the levy scheme has increased the cost of labour in Singapore. Foreign workers constitute only a small part of the workforce for the majority of companies in Singapore. With the help of the Singapore National Employers' Federation, companies which are more dependent on foreign workers have worked out new wage arrangements for their new foreign workers taking into account the levy scheme and the need to maintain cost competitiveness. Existing Malaysian workers in the manufacturing and hotel sectors will remain on the CPF scheme so long as their work permits are renewed. My Ministry has been in close touch with the Singapore National Employers' Federation as well as some affected companies to monitor the implementation of the levy scheme. The feedback so far indicates that companies are able to recruit workers on the new wage regime worked out by the Federation. We will continue to monitor the situation. The levy scheme is not intended to make it easier for companies to engage foreign workers. It is a mechanism to regulate the demand for foreign workers in order that a revolving pool of foreign workers can be allowed beyond 1992 without creating over-dependence on foreign workers. FINANCING OF BANK LOANS ON MORTGAGED PROPERTY 9. Mr Heng Chiang Meng asked the Minister for Labour when the Central Provident Fund Board will permit a CPF member to use his CPF balance and/or contribution to finance an existing bank loan predicated on the mortgage of a property acceptable to the Board.”
“In addition, immunization for a fee for the public was offered at nine Primary Health polyclinics and five Government hospitals from 1985. Immunizing all newborn babies against Hepatitis B would be an effective strategy to break the Hepatitis B infection cycle over the long term. My Ministry is currently looking into the implications of making this compulsory for all newborn babies.”
“Mr Deputy Speaker, Sir, I am replying in my capacity as Deputy Chairman of the People's Association. Hougang New Town will have about 30,000 dwelling units when it is fully developed by 1990. Based on the population catchment approach approved by the Government for building community centres, the New Town will need three modern community centres, each to serve about 10,000 families living within its vicinity. There are already two modern community centres located within Hougang New Town. These are the Paya Lebar Community Centre at Surin Avenue and the Punggol Community Centre at Hougang Avenue 3. The People's Association is considering building a third modern community centre in the neighbourhood of Hougang Avenue 8 or 10. The PA will discuss further with the Member for Punggol, his community leaders and the HDB regarding the proposed community centre. As it will take several years to plan and build the centre, it may be necessary to set up a temporary centre in the vicinity, preferably to be housed in shophouse units which can be returned to the HDB once the modern centre has been built. HEPATITIS B IMMUNIZATION 8. Mr Teo Chong Tee asked the Acting Minister for Health whether his Ministry will carry out an exercise to vaccinate Singaporeans against Hepatitis B and if he will make it a requirement for all new-born babies to be vaccinated against the disease. The Acting Minister for Health (Mr Yeo Cheow Tong): Sir, the Ministry of Health has, since 1983, been immunizing specific groups of Singaporeans who have a high risk of contracting Hepatitis B. They include health care workers, National Servicemen and newborn babies of Hepatitis B- carrier mothers.”
“It was basically a Government objective to counter the influence of the Communists. So do not get it wrong. It is not the eyes and ears of the people. It is the eyes and ears of the Government in reaching out to the people for nation building. And that is what we are still doing in the PA. If you look up the objectives of the PA under the People's Association Act, you will find that the basic objective is to promote nation building through various means, through sports, through social education, through classes and so on. So all this is going on all the while. It is not for the PAP that we are doing this. It is for the country, for community development and nation building. We try and get the people from the different races, for example, to take part in activities which are common to everybody. Of late, the PA has been trying to reach out more and more to the Malays, for example. This is an example of how we are carrying out Government's policies, policies which have been endorsed by the people. So it is not true to say that whoever goes to the PA or the CCs must declare his political affiliation. There is no such thing. The facilities are there for them to take part in the classes, in the discos, in whatever. But the PA reserves to itself the right to decide what activities should go on. And when we organize forums, of course, it is to explain Government policies. There is no reason why we should open up the facilities to Opposition Parties so that they can promote their own ideas.”
“Mr Chairman, Sir, I think it is true that in the early days when the PA was set up, it was meant to be the eyes and ears of the Government, not the people but the Government. It was meant to combat Communist influence and infiltration. The idea was to reach out to the people, to galvanize them for nation building.”
“It is not the way it is done in UK, not the way it is done in any system that is similar to ours, the system that we are practising in Singapore. This question of the Cultural Nite. I think the PA has got its own activities. There is no reason why we should allow anybody who just makes a request to come in and have their activities. We organize activities with a purpose in mind, and that is, to achieve the objectives of the PA. So it is entirely within our prerogative to decide who can use the CC and who cannot. As far as, say, games are concerned, there is no distinction. Anybody can walk in and pay a fee and play badminton, squash and so forth. But for the other more significant activities, the PA has its own programme and we will decide what activities should go on in the CC.”
“I think that is beside the point. So I think there is no point crying over this issue year in, year out. A decision has been made. It is going to be used as an office, and well-used, I would say. The population are not worse off. There are better facilities now. So they should make proper use of the facilities. The idea is to concentrate the activities in the modern centre rather than disperse the resources over several centres. Turning to the other point, he said, "Isn't the PA funded by public funds, taxpayers' funds?" You can extend the principle all the way through the Government machinery. Everything is paid for by public funds. Does that mean the Opposition party should have the same access to all these facilities as the Government? Surely not. Do they want to, for example, get involved in running the Army too, and to be able to march into the schools and insisting on using their facilities? The nature of this system that we have in Singapore is that whoever has the mandate of the people - and we have the mandate (we have 77 out of 79 seats); he has only Potong Pasir and he is saying he has got everything - has the mandate to run this government in the best way we can and that means, using all the resources at our control, to promote the policies that have been endorsed by the people. If we fail to do that, we will be failing in our duties. If the people feel that we are not doing our duties, they can throw us out and elect another Government. That new Government will have access to all the controls. This is the nature of our system here. So what he is saying is just that he is feeling let-down, that he is not enjoying the same facilities as the Government. You cannot have the same access to the Government facilities.”
“Mr Chairman, Sir, firstly, concerning the Sennett Community Centre. Granted it is a rather big building but it is nothing unusual. There are other centres of similar type that we closed down. The important thing is that we have replaced them with better CCs which are better equipped for the benefit of the residents. The Member is purely looking at the building itself, the structure, and saying, "What a waste!" He is forgetting that it costs a lot of money to run a centre. You have to have people there, you have to pay for the utilities and so on. So as a matter of policy, the PA can only allow one modern CC in each constituency as far as possible.”
“He has been arguing this point that we are trying to segregate the people from one party versus others. I think he is missing the point. The point is that the PA is a Government agency. It is the nature of this democratic process that whoever is in charge of the Government has full control over all the agencies with the objective of promoting the Government's policies, and one of these policies is, of course, community development. The PA has its own programme of activities. There is no reason why we should open this up and allow any Opposition party who wants it to come in and use the facilities. As regards the invitation to the former candidate for Potong Pasir to the dinner, I think this is nothing unusual. It is up to the Government to decide whom they want to appoint as advisors to the various grassroots organizations. Obviously we appoint people who are like- minded, people who will help us to carry out our objectives. There is nothing in the Constitution or anywhere else that requires the Government to appoint somebody from an Opposition party, just because he has been elected by the people in that area, to be advisors to our agencies and grassroots organizations. So I hope the Member will understand the situation and not bring up this issue year in and year out. There must be more important issues to be discussed.”
“We raise the money to foster community development. The donors realize that this is for a good project. Subsequently, we raise more funds; Government puts in more money and builds a better centre which is within walking distance of the previous centre. It is not possible for us to have several centres in every constituency. Of course, most Members will want to have this but it is just not feasible. Within our resource constraints, we can only have so much and we must upgrade the facilities. I do not have the actual number of CCs closed over the years, but I can tell him that they number something like 30 to 40 over the last two years alone. This is part of the on-going process of upgrading. No doubt the community has donated money to this project, but they were fully aware that we were going to upgrade the facilities. They have not been deprived of the use of a community centre. They have been given a better centre to use. His second point is: why is he not allowed to use the centre in Potong Pasir for carrying out his own dialogue sessions, forums, and so on? And he claims that we are denying a section of the population from using the CC. This is not true. Anybody can go to the centre, for example, to play squash, tennis, and to take part in other activities. The main point is that the PA is a statutory board established by the Government for a purpose, which is to promote community development. So the PA has its own programme of activities. The Member cannot just walk into any school, for example, and insist on using the school hall for his purpose. The PA already has its own programme of activities to achieve its purpose. Within those rules and regulations, we have to make the best use of the facilities.”