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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“Sir, that is a definite possibility. Besides locating in Johor, they could locate, for example, in Batam, Bintan or maybe even Thailand. So I am sure the businessmen, both the locals in Singapore as well as multi-nationals, are observing the situation and if things get too difficult to operate, they have to make the adjustments.”
“Sir, as I have explained in my answer, we have to wait and see what measures, if any, are taken. And if they contravene the international agreements like those under the WTO, then we will have to take up the problem with the Malaysian authorities as well as with WTO. Offhand, I cannot recall any past instance, but I am sure we have taken action if there were cases.”
“The impact will also be on Malaysia, because they will find it is more difficult to export their goods and services and there could be delays, higher costs, and so on. Our port will be able to meet up to new challenges that come its way. As I explained in my answer, this will affect the operations, both in Malaysia and Singapore, because there are companies, especially MNCs, which have factories in, for example, Johor, Penang and elsewhere which are linked to Singapore companies. They are supplying parts and components to Singapore companies and vice-versa. Similarly, they need to ship goods to the international markets. So if they do that, it is going to hurt them as well as us.”
“If Malaysia does so, there will surely be some impact on Singapore.”
“The statement is completely baseless. The companies and shipping firms use our ports because of the large number of shipping lines that call here, the efficiency and the competitive rates. So it is a free choice and there is no question of our stealing business from them.”
“Customers use our ports because it they provide good value for money. Mr Chng Hee Kok (East Coast): Sir, a Malaysian Minister has been quoted as saying that we stole the business of their port. Is there any rational basis for such a statement?”
“Mr Speaker, Sir, from The media reports, it is unclear has reported intentions by some quarters in what measures (if any) Malaysia will take to pass legislation to curb Malaysian businesses from using Singapore ports. The details of the proposed legislation are not available. If the measures which run counter to international rules and agreements, are imposed, Singapore will not hesitate to bring up the matter with the relevant Malaysian authorities and with international bodies such as the World Trade Organisation. This is in line with the free trading philosophy we subscribe to. Any measure taken will impact both Malaysia and Singapore. Businesses operate most efficiently in an open and fair market place where they are free to make procurement decisions based on the competitiveness of services and supplies. Businesses should be free to decide which port to use on the basis of their commercial needs and considerations. Singapore and Malaysia's economies are closely linked and complementary in many ways. Malaysia has traditionally been amongst Singapore's largest trading partners and top investment destination. Together, Singapore and Malaysia provide a platform for a number of MNCs to undertake distributed manufacturing to capitalise on the different comparative advantages of our two countries. Any move to discourage Malaysian businesses from using Singapore ports will hinder bilateral trade and investment. Manufacturers who have invested in Malaysia and MNCs who undertake distributed manufacturing in both countries will face higher operating costs and constraints on their operations. This must affect the flow of new investments. 5. Our ports serve s diversified markets extending to as far as countries like India and Australia.”
“Mr Inderjit Singh asked the Minister for Trade and Industry (a) whether there will be any significant impact on Singapore's economy when the Malaysian government block Malaysian businesses from using Singapore's ports; and (b) whether such protectionist measures which the Malaysian government is planning breach any of the World Trade Organisation agreements.”
“Mr Speaker, Sir, the Trade Development Board (TDB) has promoted trade with non-traditional markets since the 1980s. The Board has accelerated its efforts this year. For FY98, TDB plans to mount 22 trade missions to non-traditional markets. Some of the missions already undertaken this year were to Mexico, Finland, the Baltics, Kazakhstan, Azerbaijan and East Africa. To date, 45 companies have participated in these missions. In the coming months, TDB plans to organise missions to Eastern European, African and Latin American countries. Some 120 to 150 companies are expected to be involved. In addition, the Productivity and Standards Board (PSB) has programmes to help SMEs seek out business opportunities and establish strategic partnerships with companies in non-traditional markets. Under its Business Connect Programme, PSB has facilitated business matching between our local SMEs and companies in Chile and Australia, for example. Currently, 2600 companies have registered under the programme. 650 companies have benefited from such business matching activities. There are plans to work with TDB to organise business matching missions to newer markets in Latin America and South Africa. TDB has allocated additional funds to support companies in their promotional activities this year. It is estimated that an additional $10 million will go towards assisting and supporting companies in their overseas market and business development activities. Activities that are eligible for support include participation in missions and fairs, brand development, establishment of overseas marketing offices, overseas franchise development and direct marketing. MALAYSIA'S PROTECTIONIST MEASURES (Impact on Singapore's economy) 6.”
“Not that I am aware of, Sir. But if there are problems, we can always help them. SMALL AND MEDIUM-SIZED ENTERPRISES (Participation in trade missions) The following Question stood in the name of Dr Wang Kai Yuen - 5. To ask the Minister for Trade and Industry, to explore additional non-traditional export markets for local Small and Medium-Sized Enterprises (SMEs), whether the Trade Development Board will consider organising more trade missions and providing more generous support to encourage these SMEs to participate in these trade missions. Encik Ibrahim bin Othman (Bishan-Toa Payoh): Question No. 5, Sir.”
“If Members will refer to Table 1, it is true that the total number of loan applicants approved has dropped from 455 for the second quarter of last year to 423 for the second quarter of this year. Although the number of approvals has decreased the total quantum has increased by 28%, as I mentioned just now, from $123 million to $157 million. If Members were to look at the details, the increases are mainly in the short-term loans. For example, factoring loans, the number of applications approved has gone up from 10 to 59 and the quantum has gone up from $5.5 million to $41.3 million. Similarly, for working capital loans, the number of applications approved has gone up from 2 to 11 and the quantum has also increased. On the other hand, the loan applications approved for factory loans have gone down because there were fewer applications. As I explained in my answer, companies are now cautious about expanding. Despite the more generous terms we are giving now, such as larger quantums of loans and larger fixed assets qualifications for applying under the scheme, the actual approval rate has gone down for factory loans. In other words, for machinery loans, it has actually gone down for that quarter. People are still finding out about the scheme and we have to publicise it further. We are hoping that eventually there will be some adjustments. But in the short-term area, I think we have made some significant improvements.”
“Sir, the figures given in Table 2 refer to loan applications approved by PSB. PSB receives the applications after they have been processed by the banks. The data that we have at present pertain only to those collected by PSB, ie, when the loan applications have been processed by the banks for their credit-worthiness they are then submitted to PSB for final approval. The figures for applications received and approved by PSB are almost identical because almost every loan application that finally comes to PSB is approved. But what we are interested in is the approval rate by the banks and for that we have to collect the data. I do not have the data at present.”
“Dr Wang Kai Yuen asked if restructuring of loan repayments is allowed under LEFS. Such a practice is already in place. PSB and EDB do allow companies with healthy order books to restructure their loans based, in the first instance, on the participating banks' assessment of the credit worthiness of the company.”
“In March 1998, the Government enhanced the Local Enterprise Finance Scheme (LEFS) for a period of two years with a top-up of $360 million to the LEFS loan line making it a total of $1.1 billion. This is to help ease the credit squeeze on our SMEs. The LEFS enhancements have benefited our local companies. In the second quarter of this year, the amount of loan committed increased by 28% to $157 million compared to the second quarter last year. Members may wish to refer to Tables (Cols. 739-742) 1 and 2 which have already been distributed. The enhancements made to short-term loans, through an increase in risk sharing and loan quantum, were well received, especially for factoring loans. For April to June 1998, factoring loans approved increased from $6 million to $41 million, an increase of 650% (See Table 1), compared to the corresponding period last year. However, there was a drop in machinery loans as manufacturing companies are cautious about expanding in the current slowdown. Tables - SUMMARY OF YEAR-ON-YEAR COMPARISON: APR-JUN 97 AND 98 FOR NUMBER LEFS LOAN APPROVALS AND LOAN AMOUNT and LEFS APPLICATIONS APPROVED AND AMOUNT DISBURSED (JAN 96 - JUN 98) (Cols. 739-742) In June 1998, as part of the off-Budget package, the Government has further increased the LEFS loan line to $2 billion. As at June 1998, total loan commitments stood at $1.49 billion, of which $630 million have been disbursed. Table 2 shows the number of loan applications approved by the Productivity and Standards Board. The number has increased from 1,698 in 1996 to 1,981 in 1997. It was 889 in the first half of this year. I do not have data on the approval rate by participating banks. In response to industry feedback, my Ministry is currently studying further enhancements to the LEFS.”
“Mr Speaker, Sir, may I have your permission to answer Question Nos. 1 to 4 together as they are related?”
“Much would depend on the facts of each particular case. Clause 10 leaves it to a court to decide in each instance whether the network service provider has in fact done more than merely provide access. I would like to point out that clause 10 does not absolve the network service providers from regulatory regimes such as the Singapore Broadcasting Authority's Class Licence Scheme which requires some service providers to prohibit access to certain objectionable material. Finally, I would like to assure the Member that we are following international trends very closely. If there is a need to fine-tune clause 10 in the light of the experience of other countries or other international developments, we will do so.' .So this is the response from the Attorney-General's Chambers on this particular point. I think I have covered most of the points. If Members feel that I should cover something more adequately, please let me know. 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]. Bill considered in Committee; reported without amendment, read a Third time and passed. COMPUTER MISUSE (AMENDMENT) BILL Order for Second Reading read. 4.15 pm”
“This conduit-only role would occur, for example, when Internet access service providers provide connectivity services that allow their subscribers to access web sites in far flung corners of the globe. In such a case, these companies are not aware of, have no control over, and should not be held responsible for the content that the user obtains from these web sites. This type of protection is similar to the protection enjoyed by the postal service in respect of the content in postal mail. However, if the network service provider does anything more than merely provide access, then the protection is not available to him. Two examples are: (a) where the network service provider hosts on its servers or servers under its control the content in question. In such a scenario, the service provider has direct and actual control over the content and cannot in respect of the content be merely providing access; and (b) where the network service provider does not host but adopts by reference or hyperlinking the content of a third party. In such a scenario, the network service provider may, by endorsing it, be deemed to have adopted the content as its own. Hence, if a network service provider recommends or points users to content which infringes intellectual property rights, he may be deemed to have adopted such content to be his own, and may be held responsible for contributing to the infringement of the copyright owner's rights. But I would like to emphasise that clause 10 is not intended to impose or create liability when there is currently no liability under common law. What it does is to make it clear that there is no liability within certain restricted circumstances where the provider does no more than merely provide access.”
“So it is unavoidable that there must still be person to person contacts and there will be a role for the middleman in marrying these parties. So it cannot displace this middleman role in that situation. It might be more useful in cases like where you are trying to sell books or relatively small items. There again, because of our physical location and our shipping and airport facilities and so on, we can combine the commerce area, the Internet, the ease of communication, the trust and so on, with our physical infrastructure to position ourselves so that we are able to service the region and they are able to place their orders for products which are then kept here, whether it is books or consumer items or spare parts. There again, combining the Internet possibilities with all the logistic possibilities, I think, will open up a great new area for us. Prof. Chin touched on quite a few legal points. As I said, I will ask my officers to look further into them. He was concerned that the exemptions given to Internet service providers are too broad and so forth. This is an area which has been looked into very carefully. The Attorney-General's Chambers have been involved in this area and perhaps I could just read out to Members their comments on this point: `Clause 10 was drafted after very careful consideration of the scope of protection that should be granted to network service providers. Special attention should be given to the words "merely provides access". These words are in a sense the linch-pin of the section. Protection is only available where the network service providers merely provide access. In other words, where the service provider is merely fulfilling a conduit role in the transmission of content from the originator to the end user.”
“Through this process, we can extend the coverage of this law to also the other parties, or the contracting parties themselves can opt to be covered by certain laws. So those situations could be provided for. This new technology provides a lot of scope for the small businesses because through this means they are able, for example to create their web page, which can then allow them to access the international market. There have been instances of companies which are very small, for example in Australia, which are able to grow their business through making use of the system. So we have to help our small industries through various means, through funding support for example, in computerisation, through helping them to hire consultants and so on, to get them on to this new process. So my Ministry and the relevant statutory boards will work together with the SMEs to educate them and help them in this process. I think this is a great opportunity for them because it levels the field. It is not only the big players who are able to make use of this electronic commerce but also the small firms. There could be possibilities, for example, of central bureaus which provide service to these companies so that it is not too costly for them to develop their own systems. So they can make use of a common system to get on to the world markets. Of course, in the process, it may also cut out certain middleman roles. There will be certain businesses which will be affected, because when the seller can reach the buyer directly, they do not need the middleman. This may be true in theory but, in practice, for big deals you still want to see the person. It is a matter of trust.”
“It is up to the different Ministries and agencies to come on board as and when they are ready. Even when they come on board, they may still insist that certain documents be kept on paper form. In using this system, of course, there are responsibilities of the parties involved, not only the certification authority, but also the holder of the private key. Just like you would not allow your ATM card to be used by your family members, you must also be careful that you do not allow your family members easy access to these keys and misuse them. In addition, following this Bill, there is another Bill known as the Computer Misuse (Amendment) Bill which will be enhancing penalties for different kinds of fraud or hacking and so on. So we are trying to do all these things to provide the technical and legal infrastructure, enhance the penalties and so on, to make sure that we are in a position to make use of this technology and take advantage of this new and exciting field that opens up vast opportunities for us in the field of business. On the point about the use of the term "certification authorities", I have been told that in fact this is the term that has been internationally recognised and used in the USA and other OECD countries. I agree with the Member that in reading this Bill, one gets the impression that "authority" often refers in our case to Government. But it is a matter of getting used to the term and, if need be, we can of course make changes later on. Mrs Lim Hwee Hua asked how this would apply to cross border situations. What are the liabilities and so on? This Bill does provide for the possibility of cross certification. For example, the NCB has signed a memorandum of understanding with its counterpart in Canada to recognise each other's certificate.”
“This will give extra confidence to the businesses and the consumers. Even without this system, in fact, a lot of business has already been done. For example, those who order on mail service or order on the Internet and you give your credit card numbers. In fact, you are exposing yourself to misuse of the credit card numbers. Whereas if people were to use this system here, at least they have the assurance. For example, if you trade shares and you bid COEs or other big transactions, the parties involved are really the parties they claim to be, and there is assurance that the documents are secure and the process is safe, and where there are disputes the law tries to provide for those disputes. It has to be read together with other kinds of laws governing fraud, contracts and so on. This is to make it such that transactions done on the Net electronically can also be accepted in a court. Government ministries and departments like the Inland Revenue Authority are gradually moving on to this paperless world on an opt-in system. Not everything can be done paperless. There are certain areas like wills and title deeds where you still need paper. The Bill provides for those areas to be exempted. Later on, when we are ready we can bring them in. So to answer Dr Toh See Kiat's point about businessmen being confused, I think there should be no confusion here because it depends on what area you are involved with. It is for the Government ministry or department to say, "Okay, from now on, we can accept the electronic documents for this purpose." So businessmen will have to know what are the areas they need to look into and, if necessary, clarify with the departments concerned. There is no central body responsible for this.”
“This means changing the habits of people. They may prefer to go shopping and make it a day's outing for the family. We are trying to make it convenient for people to shop on the Net and also to do business, especially cross border business. We are not trying to cater just for Singaporeans. Of course, Singaporeans, being so used to changes in the way we do things, are a good test bed, as it were. Once we have wired up the whole island into an intelligent island, we can try out new services, video-on-demand, education and of course e-commerce. That is an area where a lot of people are putting in effort and we ourselves are involved in the international arena. For example, in APEC, we are working with Australia. We co-chair this APEC Task Force on E-Commerce. So we have raised the profile of Singapore to be one of the key players in this area. It is very important that we have this education programme, which has to be an on-going effort, to bring the public on board and to make them confident of what we are trying to do. So this whole law is to give confidence to consumers and businesses to make use of the systems that have been developed. One of the systems that NCB has developed is the digital signature system which makes use of a dual key system where one party holds a private key and the so-called certification authority certifies that this is indeed the person and there is a public key that can be matched with this private key through some computer process so that it can assure the two parties that in fact they are dealing with the people they profess to be. So this process of identification comes in. This system also helps to ensure that the documents are not altered once they have been signed. I have been told that this process actually does that.”
“Mr Speaker, Sir, I wish to thank all the Members who have spoken for their support of the Bill, even though some of them have reservations about very specific legal or technical aspects of this Bill. I will try and respond to the main points that have been raised. I can assure Members that my officers have been listening very carefully to all the points made and they will refer them to the relevant Ministries and agencies to further study this matter. This Bill really represents the best effort up to this point in time by the officers concerned to deal with a very complicated area which is fast evolving. Like Hong Kong, Australia, US and so on, we are trying to position ourselves at the forefront of this fast developing field which holds great potential for us. I think there is a good possibility for us to become an electronic commerce hub and to be a place where people have confidence in doing business on the Net, making use of our trustee services and so on, because of our record of reliability, transparency and the high regard of the international community for our laws and the judicial process. This is an area we want to position ourselves quickly to try and take advantage of what is fast evolving. In the process, they have come out with a Bill which is quite technical. They have assured me that they have tried to make this Bill neutral so that later on when there are other kinds of technology they can be incorporated fairly readily. This remains to be seen. But there is no big problem because, if need be, the Bill can be refined and further improved upon. I agree with Members that public education is very important. It is not just a question of investing a lot of money into Singapore One, infrastructure and so on. We must get people to use it.”
“It will also not affect any obligation founded on contract or any obligation imposed under any written law or by a court to remove, block or deny access to any material. Network service providers will of course continue to be liable for their own content, or third party content that they adopt or approve of. Conclusion As this Bill will have a significant impact on the growth of electronic commerce in Singapore, the views of the public and of experts in this field have been solicited when drafting the Bill. Ministries, statutory boards, academics from the NUS Law Faculty, as well as practising lawyers who are known for their expertise in technology law were consulted. Their valuable comments and inputs have, wherever appropriate, been incorporated into the final version of the Bill now before the House. The National Computer Board also conducted a Round Table Session for chief executives from the industry to brief them on the salient features of the Bill and to gather their feedback. In general, the feedback has been favourable and supportive of the new legal framework. In conclusion, Mr. Speaker, Sir, this Bill sets the basic legislative framework for e-commerce and electronic transactions. It removes existing legal impediments and instills confidence in businesses and individuals to engage in e-commerce. This Bill will bring Singapore to the forefront of international e-commerce developments. It will help us achieve our vision of turning Singapore into an international e-commerce hub. Sir, I beg to move. Question proposed.”
“The amendments to the definition of "Gazette" and "Government Gazette" in the Interpretation Act is to enable the Government to publish the Gazette electronically on the Internet, in addition to the hard copies printed by the Government Printers. The Government will take advantage of Internet technology to enable the Gazette to be published electronically on a daily basis instead of only once a week. Details of the plans are currently being worked out and will be announced in due course by MITA. Network Providers' Liability Mr Speaker, Sir, I will now touch on the final objective of the Bill regarding Network Providers' Liability. It is essential for the growth of a national information infrastructure that we manage the exposure of network service providers to the risks of liabilities for third party content. For example, an Internet Service Provider (ISP) should not be held liable for objectionable contents or defamatory statements on the thousands of web sites that are accessed daily, and over which the ISP has no control. Clause 10 of Part III of the Bill provides that a network service provider is not subject to criminal or civil liability for third party material for which the provider merely provides access. Where network service providers engage in activities which are indistinguishable from those of common carriers such as telephone companies and post offices, they should be given the assurance that they will be treated in the same way in respect of such activities. The clause, however, will not affect the obligations of a network service provider under any licensing or other regulatory regime established under the law, eg, Singapore Broadcasting Authority's class licences.”
“The Bill provides for different consequences in situations where a CA is licensed as opposed to one where the CA is not. Clause 45 of the Bill also provides for licensed CAs to enjoy the limitation of liability for any loss caused by the reliance on a false or forged digital signature of a subscriber, as long as the CA has complied with the requirements under the Act. Foreign CAs recognised by the Controller will enjoy similar benefits. This is known in the industry as "cross-certification" and will facilitate cross-boundary e-commerce. Electronic Applications and Licences for the Public Sector Mr Speaker, Sir, allow me to now go on to the third objective of the Bill, which is to provide for the acceptance of electronic documents by the public sector. To promote the use of the electronic medium in the public sector, the Bill will contain an omnibus provision in Part XI for Government departments and statutory boards to accept electronic filing without having to amend their respective Acts. It also allows public bodies to issue permits and licences electronically. It is an "opt-in" provision, so that those agencies that are not yet ready to go "paperless" are not compelled to do so. However, the Government is committed to making available counter services in the electronic medium as far as possible and where it is cost-effective. Clause 63 of the Bill makes a related amendment to the Interpretation Act (Cap. 1) to allow regulations on the manner and method of electronic filing and issuance to be made by these public bodies under their respective Acts.”
“A CA may perform a face-to-face verification of the individual before such a certification is given, in the form of a digital certificate. This certificate can subsequently be used to confirm the public key of an individual, and verify the signature that is generated by the individual. Netrust is the first CA in Singapore to issue keys for digital signatures. The CA, being in a position of trust, needs to be subject to some standards and controls, so that there will be public confidence in the services it offers. These are set out in the general duties of the CAs prescribed in Part VIII of the Bill There are also corresponding duties on the subscribers of such CA services. These are set out in Part IX of the Bill. These duties will not create criminal offences, but will form the basis on which courts may attach civil liabilities. CA Licensing Scheme and Controller of CA A voluntary licensing scheme is proposed in the Bill. Only licensed and approved CAs will enjoy the benefits of the evidentiary presumptions that I described earlier for signatures generated from the certificates issued. The exception to this is where parties agree to be bound by signatures created by a commercially reasonable procedure. Closed networks may continue to use unlicensed CAs for their own purposes. They may, however, also be licensed to gain the full benefit of the law. The Bill provides in clause 41 for the appointment of a Controller of CAs. The Controller will, amongst other duties, license, certify, monitor and oversee the activities of CAs. Clause 42 further provides for regulations to be made concerning the licensing and regulation of CAs and when a digital signature qualifies as a secure electronic signature.”
“One solution that has been gaining popular support is the digital signature. A digital signature, when affixed to an electronic document, has two essential properties. It confirms that a document has not been tampered with since the time the signature was fixed. It also identifies the person who fixed the signature. Traditional hand-written signatures do not perform these functions with the same degree of certainty. It is therefore justifiable to afford some evidentiary presumptions on digital signatures and the documents on which they are affixed, if these signatures are created in accordance with a secure procedure. The Bill provides for this legal effect. The use of such signatures will supplement the electronic contract rules that I have described earlier. Part V of the Bill provides for the circumstances and conditions under which electronic records and signatures are to be treated as secure. Parts VI and VII of the Bill go beyond electronic signatures to describe the legal effect of digital signatures and the general duties relating to them. Public Key Infrastructure Mr Speaker, Sir, I will now move on to the second objective of the Bill which is to provide for a Public Key Infrastructure. The generation and verification of digital signatures are done through cryptographic algorithms using a pair of private and public keys unique to an individual. A Public Key Infrastructure, consisting of Certification Authorities as trusted third parties, needs to be set up to enable public keys to be issued in a reliable manner. Singapore has been developing such an infrastructure. Under this infrastructure, the Certification Authority (CA), certifies that a given public key is associated with a given individual.”
“Part IV of the Bill clarifies that contracts can be made electronically. It also deals with the issues of time and place of sending and receipt of electronic messages. Electronic Records and Signatures Secondly, on electronic records and signatures. Part II of the Bill clarifies that electronic signatures have the same legal binding effect as that of written signatures. Transactions and submissions that are currently done and signed in written form can also be done in electronic form. Nevertheless, in the generating and processing of electronic records, Parts II and IV of the Bill can be varied by agreement between the parties to a transaction. As e-commerce is still in an early stage of development, we foresee a period of time before the international scene settles down. As such, the provisions of the Bill should not at this time go so far as to require recognition of electronic signatures and documents in place of physical forms entirely. There are certain classes of documents or transactions that may not be ready for such an immediate change. Hence, insofar as Part II and Part IV of the Bill are concerned, it is provided in clause 4 that in certain matters such as wills and documents of title, the electronic records, signatures and contract provisions do not apply. This does not, however, prevent the courts from recognising the use of electronic documents in these matters on a case-by-case basis. Eventually, when public confidence in electronic transactions grows, the Bill may be widened to include such documents. Secure Electronic Records and Signatures Thirdly, on secure electronic records and signatures. We recognise that in the digital world, there is no face-to-face interaction. As a result, issues concerning identity, authenticity and integrity arise.”
“Mr Speaker, Sir, in drafting the Electronic Transactions Bill, the following guiding principles were adopted: (a) The need to conform to international standards and international models in order to be integrated with the global e-commerce framework; (b) The need to avoid over regulation; (c) The need to be flexible and technologically neutral to adapt quickly to a fluid global environment; and (d) The need for transparency and predictability in our laws. Broadly, the Bill seeks to do the following: (a) Enact a Commercial Code to support e-commerce transactions; (b) Provide for a Public Key Infrastructure; (c) Enable Electronic Applications and Licences for the Public Sector; and (d) Clarify Network Service Providers' liability for third party content. I will describe each of these four objectives in turn. Commercial Code for E-commerce Transactions To clearly define the rights and obligations of transacting parties, we need a commercial code to support e-commerce transactions. The first objective of the Bill is thus to set out a commercial code that combines the best features of international models such as the United Nations Commission on International Trade Law's Model Law on Electronic Commerce and the Illinois Electronic Commerce Security Act. The Bill contains provisions dealing with how a contract can be formed electronically, and the status and use of electronic signatures and records. Electronic Contracts First, on electronic contracts in general. While rules on the formation of contracts are clear in the physical world, there are significant ambiguities in the electronic world. There is therefore a need to enact legislative provisions to clarify the rules of formation of electronic contracts.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The emergence of electronic commerce, or e-commerce for short, is transforming the way businesses are conducted globally. The possibilities and opportunities are limitless. Leading Internet research companies such as ActivMedia and IDC have projected worldwide Internet sales to reach the order of US$200-300 billion by the year 2001. There is little doubt that e-commerce will become an important engine of growth for the global economy in the next millennium. We want to be plugged into this global development and position Singapore as an international e-commerce hub. The aim is for Singapore to play the role of a secure and trusted node where e-commerce transactions from the region and around the world are processed. To do so, a pre-requisite is to provide a conducive legal and policy framework. We need to create an environment of trust, predictability and certainty in the Singapore system, with good arbitration and good jurisdiction, for e-commerce to flourish. The advent of e-commerce and the increasing use of the digital medium have created some novel legal issues where there are yet no clear answers. In the physical world today, there are requirements for documents to be in writing and for hand-written signatures. Such requirements need to be translated into the electronic realm. For communication and transactions occurring over a faceless network, there is a need for reliable methods to authenticate a person's identity and to ensure the integrity of the electronically transmitted documents. The Electronic Transactions Bill aims to address these important issues and to create the legal framework for e-commerce transactions in Singapore.”
“The essential point of this change is to broaden the scope of NCB so that it is not just a provider of computer services to the Government, which was its original role, but to broaden it and recognise that IT is a very big industry, and to put the focus on development of mainly the software and infrastructural aspects on NCB. In so doing, they will of course have to work with all the relevant agencies, including the Ministry of Communications, on the telecommunication aspects. NCB and the other agencies will be provided with adequate funding for their purposes. Already the funds are provided in the budget and, if need be, there could be other funds provided. 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]. Bill considered in Committee; reported without amendment; read a Third time and passed. ELECTRONIC TRANSACTIONS BILL Order for Second Reading read.”
“Mr Speaker, Sir, I thank Mr Chuang Shaw Peng for supporting the Bill and for making some very relevant points. It is true that IT is very wide; it is generic and covers a lot of areas, and it is also growing very fast. That is why the Government has in fact adopted a multi-agency approach. The purpose of the Bill is really to give NCB the powers to be more involved in the promotion of IT, especially in the areas of setting up the IT infrastructure, developing software, and so on. But the task will not just be for NCB alone, but also EDB, NSTB and others. For example, EDB is involved in promoting the computer manufacturing sector, disk drives, and so on. So all the hardware, that basically is under EDB. And increasingly, EDB is also approaching companies to do software and they have got all the offices overseas. So by having both NCB and EDB under my Ministry, it facilitates coordination. At a higher level, there is a Committee known as the National IT Committee, chaired by Minister Teo Chee Hean, and this coordinates policies at the broad level. Also, the agencies hold regular dialogues and exchanges among their working level committees to coordinate issues at the operational level. The Member also mentioned the National Science and Technology Board. NSTB also plays a role in this area. But NSTB's role is mainly to do with R&D on a very broad basis. So where it concerns IT, they are of course involved in the R&D aspects. NSTB is under my Ministry. So there is no problem of coordination.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Bill will amend the National Computer Board Act, which I will refer to as the NCB Act in short. Firstly, the Bill expands NCB's charter to develop the Information Technology (or IT) industry and to carry out other functions which may be conferred upon the Board under any written law. Secondly, it removes the requirement for Ministry-or-agency-specific appointees as members of the Board. I will now describe the proposed amendments in greater detail. NCB's Enlarged Role With the transfer of NCB to the Ministry of Trade and Industry, NCB's role was enlarged beyond the provision of computer-based services or data processing, as stipulated in the existing NCB Act. NCB is now also tasked to develop the IT industry and to harness IT to improve the performance of our economic sectors. Rapid evolution in the IT environment has placed new demands on NCB. This is particularly evident in the rapidly growing area of electronic commerce, where the marketplace is being transformed and new enabling infrastructures and services are needed. One new role of NCB is that of the Controller of Certification Authorities, as set forth in the proposed Electronic Transactions Bill, which is also before the House today. Clause 3 of the Bill amends section 11 of the Act to reflect NCB's enlarged role, and other new functions which it may assume in future. NCB's Board Composition To allow for greater flexibility in Board appointments, clause 2 of the Bill amends section 5 of the Act to remove the requirement that certain members of the Board be appointed to represent specific Ministries or agencies. Sir, I beg to move. Question proposed.”
“The Singapore economy is affected by the developments in the region given our close linkages. The impact on the sectors is not uniform. Sectors which depend on the region are badly affected. However, as the economy is well diversified, overall growth is supported by healthy performance in the US and EU economies. We do not expect the Singapore economy to slip into negative growth this year. NUMBER OF SUICIDES 5. Mdm Claire Chiang See Ngoh asked the Minister for Home Affairs what is the number of suicides or attempted suicides recorded by the Police during the period August 1997 and April 1998 and to what extent these suicides were related to the recent economic crisis by specifying some of the salient characteristics of the victims and causes of their deaths. Mr Wong Kan Seng: There were 253 suicides and 436 attempted suicides recorded by the Police from August 1997 to April 1998. It is difficult to ascertain whether the persons who committed suicide did so because of the regional economic crisis. Police investigations have shown that 4 suicides and 1 attempted suicide were probably caused by heavy losses in property, share or business investments. RETRENCHMENT OF WOMEN WORKERS 6. Mdm Claire Chiang See Ngoh asked the Minister for Manpower, in the recent economic crisis, how many women workers were retrenched; what kind of industries these women workers were retrenched from; and how soon afterwards did the Ministry succeed in finding job placements for them.”
“Presently, private vehicles are not allowed to enter Sentosa. Only authorised vehicles such as suppliers' delivery vehicles and taxis taking hotel guests are allowed into Sentosa. The Sentosa Development Corporation (SDC) reviewed this policy recently and decided to fine-tune it, to allow a limited number of motorists to drive into Sentosa in the evening. SDC has put in place measures to preserve the rustic charm of Sentosa and ensure the safety of pedestrians. Firstly, cars driving into Sentosa have to proceed directly to the designated car parks. The Sentosa rangers will ensure that vehicles do not roam freely around the island. Secondly, there is already a speed limit of 40 km/h on Sentosa's roads. In addition, there are many pedestrian footpaths and cycle tracks to segregate human traffic from the motor traffic. In any case, most cycling activities would have stopped at night. The Night Entry Scheme is on trial for 6 months and SDC will monitor the situation closely throughout this period. HEALTH SERVICES FOR NORTHERN SINGAPORE 38. Assoc. Prof. Chin Tet Yung asked the Minister for Health what health services can the residents in the northern parts of Singapore, eg, Sembawang, Marsiling and Woodlands, expect to be provided with in the near future.”
“Our bilateral trade finance guarantee scheme is to help facilitate trade between Singapore and Indonesia through selective guarantees of Letters of Credit issued in Indonesia. Restoration of trade is vital to the recovery of the Indonesian economy. The implementation of the trade finance guarantee scheme does not depend on the publication of our trade statistics with Indonesia. ALLOWING MOTOR VEHICLES INTO SENTOSA 36. Mr Sin Boon Ann asked the Minister for Trade and Industry whether Sentosa Development Corporation's decision to allow more motor vehicles into Sentosa in the evening will result in greater danger for the pedestrians and cyclists who use the roads on the island, and whether allowing more motor vehicles on the island will tarnish the image of Sentosa as a quiet and pollution-free tropical island resort.”
“Mr Speaker, Sir, the regional economic crisis has not pushed up our cost of living. In fact, consumer prices rose by only 1.1% in the first quarter of 1998, down from 1.7% and 2.3% in the first half and second half of 1997 respectively. There are three reasons for the low inflation. First, although the Singapore dollar has depreciated against the US dollar, it has strengthened against the regional currencies. Overall, the Singapore dollar has remained relatively stable on a trade-weighted basis. This has kept imported inflation at bay. Second, domestic inflationary pressures are low as a result of slower economic activity, weaker consumer sentiments and keener retail competition. Third, commodity prices like oil have declined. Our standard of living has not deteriorated. Nominal wages increased by 4.8% in the first quarter of 1998. With an inflation rate of 1.1%, real wages have risen by 3.7%, the same as in 1997. ASEAN PLUS (Details) 19. Mr Chuang Shaw Peng asked the Minister for Finance whether he will elaborate on the details of the mechanism in the proposed early financial warning system, the ASEAN Plus.”
“We are currently conducting an Integrated Test of the System involving all participating banks. MAS together with the banks will review the results of the Integrated Test before deciding on the implementation date, which will likely be in June 1998. The RTGS system was originally scheduled for implementation at the end of 1997. This target date was set early in the project. During the course of the project, however, a number of operational and technical issues had to be resolved. Following a review of the project schedule, MAS decided that the middle of this year was a more realistic target date for implementation. The RTGS system is merely a real-time payment system to settle inter-bank payments on a gross basis, ie, transaction by transaction, instead of accumulating all the transactions during the day to be settled on a net basis at the close of the day's business. RTGS systems are being implemented in many countries to reduce settlement risks. They do not reduce nor facilitate speculative attacks on a country's currency. How vulnerable the Singapore Dollar is to a speculative attack depends mainly on Singapore's economic fundamentals. HUMAN RIGHTS PRACTICES 3. Mr Sin Boon Ann asked the Minister for Foreign Affairs whether the Government has responded to the allegations in the US State Department Singapore Country Report on Human Rights Practices 1997, including the allegation that the Government had used the judicial system for political purposes, and, if not, whether the Government intends to respond.”
“MAS explained this policy publicly in a letter to the Straits Times in May 1993, after Singapore embarked on the regionalisation drive. It has also informed the banks. But the existing MAS notice to banks, Regulation 621, was issued earlier, in 1992. As it stands, Regulation 621 still states that banks should consult MAS on Singapore Dollar lending to Singa poreans, for use outside Singapore. Banks still feel constrained by what is stated in MAS Regulation 621. MAS will revise the Regulation. MAS is currently reviewing its policy on the internationalisation of the Singapore Dollar. The aim is to make the policy intention clearer and more explicit, and minimise the need for banks to consult MAS before making Singapore Dollar loans to non-residents. The basic policy of not encouraging internationalisation remains unchanged. MAS is working out guidelines to allow subsidiaries of Singaporean companies, and joint ventures between Singaporean and foreign companies, to borrow in Singapore Dollars for purposes of regionalisation projects. We are also examining whether to ease some of the specific restrictions on the use of Singapore Dollars, especially for activities related to the capital markets. MAS will issue a revised Regulation to banks once this review is complete. REAL TIME GROSS SETTLEMENT SYSTEM 2. Mr Tay Beng Chuan asked the Deputy Prime Minister (a) what is the status of the Real Time Gross Settlement System at the Monetary Authority of Singapore; (b) what caused the delay in its implementation; and (c) whether its implementation will make the Singapore dollar less vulnerable to speculative attacks by hedge funds. BG Lee Hsien Loong: MAS is in the final stages of testing the Real Time Gross Settlement (RTGS) System.”
“Only electrical workers licensed by the Public Utilities Board are allowed to carry out electrical work independently. Holders of National Technical Certificates who are unsuccessful in their applications for an electrician licence are able to practise if they work under the supervision of licensed electrical workers. Electrical workers are required to comply with the national wiring Code of Practice and gazetted regulations, which are in English. Furthermore, the instruction manuals of electrical fittings are normally in English. Therefore, licensed electrical workers need to have adequate knowledge of English to understand the technical and procedural requirements in the Code of Practice, gazetted regulations and instruction manuals to ensure that safety is not compromised. The PUB therefore has to use English when it assesses the competency of applicants for issue of licences for electrical workers. WRITTEN ANSWERS TO QUESTIONS FINANCING OVERSEAS BUSINESS IN SINGAPORE DOLLARS 1. Mr Tay Beng Chuan asked the Deputy Prime Minister whether the Monetary Authority of Singapore will review the current policy of restricting Singapore-based companies to borrow only in foreign currency to finance their overseas business expansion via shareholder loans and whether the policy can be relaxed to allow Singapore companies to do so in Singapore dollars instead. BG Lee Hsien Loong: MAS' restriction on Singapore Dollar credit facilities for use outside Singapore applies only to non-residents. Singa poreans, and companies that are majority-owned by Singaporeans, are free to borrow in Singapore Dollars to finance their overseas operations. Banks are not required to consult MAS on such loans, regardless of amount.”
“Yes, this is something we can do. ASEAN ENVIRONMENT MINISTERS' MEETING (Progress towards addressing problems of fires and haze pollution) 7. Mr Simon S C Tay asked the Minister for the Environment whether the recent ASEAN Environment Ministers' meeting has made significant progress towards addressing the problems of the South East Asian fires and haze pollution.”
“I am not clear what the Member means by rebates. If he has some good ideas, he can suggest to me and we will look into them.”
“Mr Speaker, Sir, currently, there are three incentive schemes which companies can make use of to help them implement water conservation measures. The Investment Allowance Scheme offers companies an investment allowance of up to 50% of their fixed capital expenditure for water conservation and recycling. The Resource Productivity Scheme provides financing to companies for automation and resource-saving equipment. The Resource Productivity Feasibility Scheme provides a grant of up to 50% of the qualifying cost of engaging external consultants to conduct resource productivity feasibility studies. There are also several existing incentive schemes which encourage the adoption of energy-efficient technologies and equipment, including the Investment Allowance Scheme, the Local Enterprise Technical Assistance Scheme (LETAS), and the accelerated depreciation scheme. The LETAS can be used by local enterprises to engage external expertise to modernise and upgrade their operations, including making them more energy-efficient. The accelerated depreciation scheme has been revised recently to allow companies to depreciate their energy-saving equipment in one year instead of three years. Besides these tax and financial incentives, companies that want to improve their water and energy efficiencies can approach the Public Utilities Board for water and energy audits. An Inter-Agency Committee on Energy Conservation chaired by the Ministry of National Development has also been set up to co-ordinate the efforts of the various agencies involved in setting energy conservation policies and to further improve energy conservation in Singapore.”
“Sir, I am not saying that we cannot take the assurances of our neighbours. But that is not sufficient. We need to have firm agreements. We need to be able to enforce them. If there are disputes, we need to be able to go somewhere to try and resolve the matter. The impact of the tariff increases has been very evident. Each time we increase the tariff, the consumption goes down. So we have to keep up the efforts, not only through tax means but through educating our public that water is very important to us, please conserve it. WATER AND ELECTRICITY CONSERVATION (Incentives) 6. Mr Simon S C Tay asked the Minister for Trade and Industry whether additional tax or other incentives can be offered to improve water and electricity conservation, especially by industries.”
“May I ask the Member whether he will just carry on on the basis of such assurances, or should we look after our own security, not only on water, but in other aspects? Because water is really crucial. You need water to live on. So we must continue to have efforts to drive home the message and get people to conserve water. The purpose of the tax is to get people to conserve water. It is not to address the point whether Malaysia will cut off supply or not.”
“The water taxes and the higher tariffs on water are very important to drive home the importance of water to Singaporeans and that we must always conserve our water resources. Whatever happens with our neighbours, whether we are able to get supplies, that is still uncertain. We must continue to look after our own security.”
“PUB has been working on the basis of about 50% from local sources. But as demand grows, it may not be easy to maintain that percentage.”
“Mr Speaker, Sir, Singapore's water supply comes entirely from the collection of surface runoffs from rainfall. With the help of experts, PUB has carried out geo-physical and hydro-geological investigations on ground water resources. The findings reveal that there are no significant ground water sources available, even at relatively great depths.”
“The Council on Professional and Technical Education (CPTE) is responsible for projecting the demand for university, polytechnic and ITE graduates. It adopts a demand-based econometric model to project skilled manpower needs in the short to medium term, based on projected GDP growth rates and labour productivity. Projections on demand and supply are derived from production functions and industry/occupation/education profile matrices. The model is regularly refined to meet changing macro-economic conditions. New variables and data are considered as and when they are available and relevant to the model. CPTE uses the manpower projections as a planning guide to identify broad trends in the demand and supply of skilled manpower. This is validated by feedback from industry and graduate employment surveys. These surveys serve as checks on the demand for skilled manpower by different sectors of the economy. As this is a highly technical subject, my Ministry will brief the Member if she is interested in the details of the model. Table - School Fees and Miscellaneous Fees (Cols. 1883-1884)”