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 1997 Labour Force Survey showed that there are 117,500 economically-active persons in the workforce aged 45 and below who have either never attended school, or have only lower primary education. This represents 6.4% of the labour force, down from 15% in 1985. These workers are especially vulnerable to structural unemployment. The Government, the NTUC and community self-help organizations have put in place several programmes to help upgrade these workers. The Basic Education for Skills Training (BEST) programme, launched in 1983, caters to those who have missed out on a basic education. BEST allows workers to study English Language and Mathematics up to Primary 6 level. As of December 1997, 217,600 workers have enrolled in at least one BEST module. To date, 57,100 have received the BEST Module 4 Certificate (equivalent to Primary 6) in either English Language or Mathematics, or both. 23,000 (40%) of them have progressed to other courses like the WISE (Worker Improvement through Secondary Education) or MOST (Modular Skills Training) programmes. Fast Forward is another such programme. A national tele-video training scheme offered by the Productivity and Standards Board (PSB), it is specially designed for the worker with low education and little time for training. About 33,300 have completed or are still engaged in the programme. The NTUC, EDB, PSB and ITE have launched the Skills Redevelopment Programme (SRP) to help unskilled and semi-skilled workers increase their employability. To date, a total of 50 companies have signed up to train 5,900 unskilled workers in ITE-certified courses under the scheme. The SRP will be expanded to train more workers during this period of economic downturn. REVITALISING THE RETAIL SECTOR 7.”
“Electricity and gas tariffs have to be approved by the Public Utilities Board, the regulating authority. My Ministry and the PUB are mindful of the need to keep our electricity and gas tariffs competitive. FOREST FIRES IN EAST KALIMANTAN AND SUMATRA 23. Mr Simon S C Tay asked the Minister for the Environment whether the forest fires burning in East Kalimantan and Sumatra are likely to affect Singapore with haze pollution in the foreseeable future and whether Singapore has given or offered technical, financial or other forms of assistance to deal with the fires.”
“Electricity tariff comprises two components: fuel and non-fuel costs. Fuel cost, which is passed on to consumers, is adjusted quarterly to reflect changes in the market price for fuel oil. There is a time lag between the dates of fuel purchases and usage. The fuel cost for this quarter is determined by the prices paid over the previous months. Fuel oil prices in US dollars increased by 11 % from June 1997 to October 1997. In addition, over the same period, the US dollar appreciated by about 9% against the Singapore dollar. As a result, the fuel price in Singapore dollars increased by about 21%. The tariff increase of 0.7 cents/kWh for the quarter February to April 1998 is mainly to offset the higher-than-expected fuel cost in the previous quarters. Since October 1997, fuel oil prices in US dollars have fallen but the US dollar has continued to appreciate against the Singapore dollar. The net effect of these changes will be reflected in the tariff review for the next quarter. If the downward price trend persists and the exchange rate remains favourable, tariffs will be lowered for the next quarter. Non-fuel costs refer to labour, depreciation, maintenance and other operating costs. Singapore Power has frozen the non-fuel cost of electricity tariff for the past 12 months despite increases in operating expenses. It has been able to do so through productivity improvements. The non-fuel cost component of the electricity tariff is regulated by the CPI-X formula. Singapore Power will not be allowed to increase this tariff component by more than the percentage change in the Consumer Price Index less the efficiency gain X. The X factor has been set at 1% for three years from 1st April 1997 in the first instance.”
“Mr Ong Ah Heng asked the Minister for Labour how the Government will regulate the flow of foreign talent to ensure that they will not be allowed to come here to take over jobs held by Singaporeans simply because they are cheaper to hire.”
“Given the financial crisis in the region and expected slower economic growth this year, there will be some moderation in labour demand from the high levels of recent years. As more companies adjust to cope with the situation, we will see a general slowing down in the hiring of new staff. However, weakness will not be even across sectors. Although new hiring in the financial and business services, and commerce sectors is expected to weaken, the employment outlook for the manufacturing sector is relatively more optimistic. EDB's latest survey of business expectations for the manufacturing sector shows that it will continue to invest in productive capacity over the next 12 months. The public sector also requires more staff, for example, the teaching and nursing professions. In recent years, the labour market has been very tight, resulting in the import of a large number of foreign workers and a high rate of labour turnover. The cooling of the employment market will moderate this situation. New entrants to the job market should be able to find employment if they possess skills and are not too choosy with jobs. Older and lower skilled workers should make use of this period to enhance their qualification and skill levels to make sure they remain productive and employable. To satisfy its pipeline of incoming investment projects, EDB estimates that two out of three new jobs to be created will require skilled workers with minimum NTC-2 qualification. On the whole, we still expect the labour market to remain fairly tight for professional and skilled manpower, such as engineers and technicians. REGULATING FLOW OF FOREIGN TALENT 20.”
“Enhancement to Overseas Enterprise Incentive The Overseas Enterprise Incentive was introduced in 1993 as part of the Government's efforts to encourage the development of an external economy. Income derived from approved overseas projects is exempt from tax for up to 10 years. Tax-exempt dividends can be paid up to two tiers of shareholders, subject to a 100% shareholding requirement at the first tier. In 1995, changes were made to the Income Tax Act to allow the flow-through of tax exempt dividends to more than two levels of shareholders, provided that a 50% shareholding requirement is met at each level paying the dividends. The 50% shareholding requirement may be waived with Ministerial approval on a case-by-case basis. Clause 4 of the Bill makes similar amendments to the Incentives Act relating to the Overseas Enterprise Incentive. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Lee Yock Suan]. Bill considered in Committee; reported without amendment; read a Third time and passed. UNDESIRABLE PUBLICATIONS (AMENDMENT) BILL Order for Second Reading read.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Bill will amend the Economic Expansion Incentives (Relief from Income Tax) Act, which I will refer to as the Incentives Act in short. Firstly, the Bill extends the Investment Allowance incentive to approved space satellite projects. Secondly, it enhances the Overseas Enterprise Incentive by allowing the flow-through of tax-exempt dividends to the ultimate shareholders of an overseas enterprise. These changes were announced in the 1997 Budget Statement and shall take retrospective effect from 11th July 1997. I will now describe the proposed amendments in turn. Extension of Investment Allowance Incentive to space satellite projects Satellites play an increasingly important role in today's telecommunications and broadcast industries. There exists a huge market for wireless transmission of voice, video and other multimedia content that satellite operators in Singapore can exploit. Clause 3 of the Bill extends investment allowance to cover space satellite projects. This will encourage companies to launch satellites, and operate them out of Singapore. To qualify for the incentive, companies will be required to undertake high value-added services in Singapore, such as setting up a Tracking & Telemetry Control Centre or a Network Operations Centre. The Bill will make two consequential amendments to the Investment Allowance incentive. Firstly, the definition of "fixed capital expenditure" will be amended to include productive equipment used outside Singapore as opposed to only in Singapore. Secondly, fixed capital expenditure will be deemed incurred so long as the productive equipment is delivered to the company.”
“The details of this will be announced in the Budget speech. So maybe the Member can wait. PUBLIC SECTOR (Containment of size to free resources for private sector to stimulate economic growth) 14. Mr Tay Beng Chuan asked the Minister for Finance how the Government will contain the size of the public sector to free resources for the private sector to stimulate economic growth in the face of the regional financial turmoil.”
“The Government is very sympathetic to these companies. But when it comes to public funds, we have to be very careful. So there is no question about bailing out companies that are not feasible. But where it is feasible, we will see where we can help out. As explained, we are looking at the LEFS to see whether we can broaden the scheme. For example, if they have good collateral here, maybe the banks will be willing to lend them the money with the Government sharing part of the risk, and they themselves can then lend to their own subsidiaries. Mr S. Iswaran (West Coast): The Minister just mentioned a little bit about how we intend to broaden the scope of the LEFS. Are there any other areas we are looking at?”
“The answer to the first question is obviously no. I think nobody foresaw it, not even the big banks which lent so much money and are now facing problems collecting their loans. As to the second part, we have told companies, "Please go regional. It is necessary for us to make use of resources in the region and to tap the markets", and many have done so, but they must go in with their eyes open and they have to use their own resources.”
“Mr Speaker, Sir, some Singapore companies with regional investments are adversely affected by the regional financial crisis. The problems are difficult to overcome as they are dependent on how the banking and financial systems of the host countries are sorted out. Nevertheless, my Ministry will try to assist companies, where feasible. We will continue to support eligible companies with financing under the Regionalisation Finance Scheme. It helps local companies by providing low cost loans for investment in fixed assets, such as buildings and equipment. The Local Enterprise Finance Scheme (LEFS) is designed primarily for the Singapore operations of local small and medium-sized enterprises. Depending on a company's regional project, its financing needs and associated risks, it may be feasible to extend some financial assistance under LEFS. The lending decisions are made by the participating banks with the Government sharing part of the risk. My Ministry is examining the LEFS to broaden its scope. We will continue to monitor the regional developments closely and review what else can and should be done. Ultimately, companies have to accept that there are risks involved in any investment decision, whether locally or abroad.”
“To give an indication, Singapore's exports to the four ASEAN countries, Indonesia, Malaysia, Thailand and the Philippines, last year amounted to S$69 billion. 40% of this is by locals. That amounts to about S$28 billion for the whole year. So for one month it would be about S$2 billion. So you can estimate. It is hard to say how much of this is going to be lost. But it is of that order of magnitude, in terms of credit extended. That is why I said this is not a significant risk to the economy. Another indicator is that Singapore loans to the four ASEAN countries (this includes loans by MNCs which are in Singapore lending to their subsidiaries in the four ASEAN countries) amounted to $3.5 billion. This is probably over a longer term period. So some of it may be due; others may be having problems. But we have no figures to show. On the whole, I think we are all right. COMPANIES WITH PROBLEMS IN REGIONAL PROJECTS (Assistance) 13. Mr Tay Beng Chuan asked the Minister for Trade and Industry how the Government can assist companies which have invested heavily in the region in response to the regionalisation drive and which are now facing cash flow or implementation problems in their regional projects because of the current financial turmoil.”
“Mr Speaker, Sir, we do not have such figures as companies are not required to declare them. About 60% of Singapore's exports to the region are by MNCs exporting parts and components to meet final demand outside the region. As these are largely intra-company transactions or sales to other MNCs, they do not face problems of non-payment. Singapore companies that sell to the region for local consumption are facing some credit collection problems due to the current liquidity shortage. Company feedback gathered by TDB suggests that the companies are tackling the problem through various means. Some have extended the credit period. Some were able to convert these debts to equity; while others are exploring counter-trade options. This problem does not pose a significant risk to the Singapore economy.”
“Mr Speaker, Sir, the regional economic crisis has not had any significant impact on our cost of living. Consumer prices rose by a modest 2.3% in the second half of 1997. 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. Domestically, inflationary pressures are also low as a result of slower economic activity and keener retail competition. The rate of consumer price inflation in 1998 is expected to remain low. NON-BANK PRIVATE SECTOR CREDIT EXTENDED TO REGIONAL COUNTRIES (Magnitude) 12. Dr Lee Tsao Yuan asked the Minister for Trade and Industry what is the magnitude of non-bank private sector credit which has been extended to countries in the region affected by the financial crisis, namely, Indonesia, Malaysia, the Philippines and Thailand.”
“However, this may not always be possible at some of the other shelters given the space and physical constraints at some of these locations. LTA will explore how to overcome these constraints without compromising the safety of the motorists. There are currently 15 such rain shelters. Two more will be added at the flyovers at the junction of the Seletar and Tampines Expressways.”
“The Singapore ONE pilot was launched in June 1997 and is still in its pilot phase. Households can access Singapore ONE through two network operators: Singapore Telecom (SingTel) and Singapore Cable Vision (SCV). Island-wide service is not available at the moment, but both operators are upgrading their systems with a view towards island-wide service by end 1998. There is no selection process for the Singapore ONE pilot project. Households which are located in the areas serviced by SingTel's or SCV's network will be able to participate in the Singapore ONE pilot by subscribing to either network operator's service. Households interested in participating in the Singapore ONE pilot, or subscribing to the service in future, can approach SingTel, SCV or the National Computer Board for assistance. RAIN SHELTERS UNDER FLYOVERS FOR MOTORCYCLISTS 18. Mr Chuang Shaw Peng asked the Minister for Communications whether his Ministry will consider rain shelters under flyovers to provide relief to motorcyclists during heavy downpour and to enhance road safety. Mr Mah Bow Tan: Motorcyclists usually congregate and wait under flyovers on the left lane during heavy downpour. Hence, LTA has constructed rain shelters under flyovers for motorcyclists to take cover during heavy downpour. These are concrete bays located away from the main traffic to ensure the safety of the motorcyclists and other motorists. LTA will extend such shelters to all flyovers where space permits. LTA will be improving the existing rain shelters, such as the one along East Coast Parkway at the Tanjong Katong Flyover, by expanding the bays to allow them to accommodate more motorcyclists.”
“BG George Yong-Boon Yeo: SBA will serve as the primary channel for public feedback on the regulation of Internet content. The public can provide SBA feedback by letter, telephone or e-mail. Other channels for feedback are the National Internet Advisory Committee (NIAC) and its various sub-committees. The Ministry of Education also takes a special interest in Internet content. Members of the public can also call the Feedback Unit. The recent revision of the Internet Code of Practice, and the issue of new Industry Guidelines, were done after wide consultations with various groups. JOINT CELEBRATION OF LUNAR NEW YEAR AND HARI RAYA AIDILFITRI 16. Mr Zulkifli bin Baharudin asked the Minister for Community Development whether the Government plans to have official and national functions to celebrate the Lunar New Year and Hari Raya Aidilfitri to be jointly organised this year, to highlight racial harmony and understanding and multi-culturalism in Singapore.”
“We are also reviewing existing laws against computer crimes in order to ensure that penalties are proportionate to the damage caused. EC Applications NCB has been working with industry to develop EC applications. To date, we have more than 120 local EC applications. Several directory services have also been developed. Promote Acceptance of EC NCB has been working with other Government agencies and industry to promote EC through seminars and workshops. For example, NCB and the Singapore Tourism Board organised the "Shop On The Net" event in July 1997. Comparison of EC Development with the United States In the US, EC development is spearheaded by the private sector. The US Administration's EC framework is based on the following five principles: (a) Private sector should lead; (b) Governments should avoid undue restrictions on EC; (c) Where governmental involvement is needed, its aim should be to support and enforce a predictable, minimalist, consistent and simple legal environment for commerce; (d) Governments should recognise the unique qualities of the Internet; and (e) EC on the Internet should be facilitated on a global basis. The Singapore Government has adopted a more promotional approach involving both the private and public sectors. EC is a strategic area and Singapore should take advantage of its headstart to build up its capabilities quickly in this new area. CHANNELS FOR PUBLIC FEEDBACK ON INTERNET REGULATIONS 15. Dr Lee Tsao Yuan asked the Minister for Information and the Arts, as regards the recent revisions to the Internet Code of Practice, what channels are available for continued public feedback regarding Internet regulations, in order to meet the twin objectives of promoting the growth of the Internet, and protecting children from pornographic material.”
“Status of EC Development in Singapore The National Computer Board (NCB) has been working with other Government agencies and the industry to promote electronic commerce (EC). For a start, it launched the Electronic Commerce Hotbed (ECH) programme in August 1996, with the following objectives : (a) To deploy infrastructural services to enable EC; (b) To address policy and legal issues associated with EC; (c) To showcase EC applications; and (d) To promote acceptance of EC by industry and the general public. An ECH Policy Committee was formed in January 1997 to address policy issues and concerns affecting the conduct of EC in Singapore. The committee has recently completed its work and its recommendations have been accepted by the National IT Committee chaired by Minister Teo Chee Hean. We will proceed to carry out the recommendations. Security of Transactions For EC to flourish, transactions must be secure and obligations of contracting parties must be legally recognised. Each transacting party must be assured of the identity of the other party, that the transactions are verified and that information flow is secured. Digital certificates, digital signatures and encryption keys serve these functions. In July 1997, NCB and the Network for Electronic Transfers (NETS) jointly set up Netrust to issue digital certificates and manage them for individuals and organisations. Netrust is Southeast Asia's first certification authority. For on-line payment, NCB has set up the Secure Electronic Transaction (SET) system with VISA and MasterCard. The NETS Cash Card for Internet payment is now being piloted. Legal & Policy Framework to Support EC We will enact new legislation to recognise contracts formed electronically and protect the rights of the transacting parties.”
“Jurong Town Corporation (JTC) launched the Scheme for Housing of Foreign Talents (SHIFT) on 27th August 1997. The objective of the scheme is to ensure the availability of affordable housing in our current effort to attract foreign talent to Singapore. Under this scheme, JTC purchases flats from the resale market and HDB at market prices and rents them out to foreigners on a commercial basis. JTC is processing about 1000 applications and has allocated about 60 flats so far. The process will be speeded up as JTC gains experience with this new scheme. JTC is giving priority to newcomers, especially joint applicants and those with families. WOODLANDS TOWN CENTRE 40. Mr Hawazi Daipi asked the Minister for National Development whether the Government will consider (i) giving retailers and hawkers at Woodlands Town Centre discounts on rentals in view of the substantial drop in business as a result of the prolonged Causeway jam and the stronger Singapore dollar; and (ii) allowing passenger vehicles to go into the Woodlands Town Centre car park from the exit way at Centre Road so that residents and shoppers can have better access to the shops and hawker centre.”
“The Singapore economy is among the most open in the world and the Government is committed to a free market economy. The Government does not condone price-fixing behaviour among cartels or suppliers. The best way to prevent this is to promote open competition in the market place, so that customers benefit from paying the most competitive prices for any product or service. My Ministry administers a Price Control Act, which provides for the control of prices, including the setting of maximum prices. It gives the controller wide powers to curb profiteering. Currently, it has 2 items as controlled articles - rice and pigs. However, MTI has not found it necessary to use the Act, as keen competition in the retail sector has made any direct government intervention unnecessary. CLAIM FOR LOSSES IN BONUSES BY NSMEN 37. Mr Ong Ah Heng asked the Deputy Prime Minister and Minister for Defence whether he will allow NSmen to claim losses in their bonuses and pay components, in view of the common use of flexible wage systems.”
“The BACKtoWork (BTW) Programme was launched on 13th September 1996 to encourage economically inactive persons such as housewives and older persons to rejoin the workforce. It is a tripartite effort by MOL, PSB, SNEF and the NTUC. The BTW programme was piloted over a six-month period from September 1996 to March 1997. The response has been encouraging. Some 1,900 housewives and retirees have registered to re-enter the workforce. Of these, 63% were housewives, 21% older persons and 15% were displaced workers. Of the 1,900, 700 have been successfully placed in companies. The number of participating companies has also increased from the initial 18 to 80. Most companies provide orientation training to the re-entrants to help them build confidence, acquire communication skills and develop positive attitudes towards work and quality. To supplement this, PSB offers a Core Skills Training Programme. The SDF provides 100% grant for the programme. To date, more than 60 housewives and retirees have completed the course. To further develop the BTW Programme for the next phase, an Advisory Committee was set up in September 1997. This Committee aims to identify the needs and constraints of housewives and older persons returning to work, encourage employers to offer innovative part-time and flexible employment schemes, including redesigning of jobs; and identify the incentives to attract the target group. PROGRESS OF NATIONAL MENTAL HEALTH PROGRAMME 29. Mdm Claire Chiang See Ngoh asked the Minister for Health what has been the progress of the 3-year National Mental Health Programme launched in February 1993 which identified seven strategies to promote good mental health and prevent mental disabilities among Singaporeans.”
“For the moment, I remain optimistic. As I have said, we will monitor the situation. In fact, we have so many foreign workers here. For the longer term, we have to be careful and make sure that our older workers who are less educated are retrained for the higher value jobs. As of now, I am completely optimistic of the situation. FINANCIAL SECTOR IN SINGAPORE (Supervision with a lighter touch) The following Question stood in the name of Mr Zainul Abidin Rasheed - 13. To ask the Minister for Finance, despite the recent regional currency and stock market turmoil and calls from certain sectors for greater regulation on speculative activities, if he will elaborate on the reasons for the need for Singapore to call for the supervision of the financial sector with a lighter touch.”
“In Singapore's case, we cannot avoid having this effect. If we try and keep everything in Singapore, we will end up strangling ourselves. So the lower value end will, in fact, have to go offshore and we have to look to the region and further afield as possible areas where we can enlarge our economic scope. Our aim should be to go higher. In fact, we are working closely with the Indonesians in Batam, Bintan and so on, to the extent that it is more attractive now for them to go overseas. In fact, we can encourage and help some of them to go overseas so long as what is remaining here is upgraded and we have full employment.”
“The Chinese Renminbi is controlled because it is a closed situation. The Chinese government will, of course, monitor and they may have to adjust. I do not know. It is up to them. But so far, the country is performing very well and the growth rate is very high. As I said in my answer, we will have to assess and monitor and see how it goes. So far, it looks all right. In fact, in terms of the investment flow to Singapore, we are still doing very well. EDB is still very confident and, if anything, we are in a somewhat stronger position now in terms of our stability and ability to sustain real activity. And confidence of investors in Singapore is very high. Dr Lee Tsao Yuan: Sir, the reason for Singapore companies regionalising is because of more attractive markets abroad and because of supply constraints internally, but also because of cost pressures in Singapore. Does the Minister not expect that to the extent that there is a real devaluation by these countries, actually there would be a greater outflow of investments from Singapore?”
“As I have mentioned, relative to the ASEAN countries, our export composition is somewhat different. For example, Indonesia is still very dependent on exports of oil and natural produce and their manufactured goods are lower end products. Our closest competitor is probably Malaysia. But there again, we are ahead of them in terms of the skill content. We are higher up the value added ladder. We will have to keep ahead of them. Where we are exporting the same kind of products to the same markets, then they may have a cost advantage in terms of their lower local cost. But if they are importing a lot of components, for example, and the value added component is really not very big, the question is whether they can keep their cost down. There will be higher inflation, there will be wage pressures and so on. Relative to the NIEs - Hong Kong, Taiwan and Korea - in fact, they are worried that ASEAN currencies having depreciated, apart from the Singapore dollar which has also depreciated by about 10%, the others have gone down by about 30-40%. Taiwan, in fact, has allowed its currency to come down in order to compete and its situation is somewhat similar to ours. Hong Kong is still maintaining its peg and this has been translated into impact on the interest rate as well as the real economy and the stock market. Korea is in a rather difficult situation. We have to watch and see. But there again, they have tried to keep their currency at a certain level, which is rather high relative to the US dollar. Of late, it has come down.”
“On the first question, the answer must be yes. There has been some impact, eg, in terms of tourist arrivals and this has also affected the retail trade. I think the impact would probably be greater in the fourth quarter than in the third quarter, and this is compounded by the haze problem. We have to tell our foreign visitors from Europe and elsewhere that the haze has, in fact, cleared. But the message is still there, ie, there is a haze problem here. The currency turmoil has affected us in different ways. In the real economy, in manufacturing, in fact, we have done very well and we are geared for further growth. We have recently completed a petrochemical project. Our electronic plants are doing well and the world economic recovery has set in in the field of electronics. For next year, if the situation stabilises and the funds start to come back and the stock market picks up, obviously the situation would be better. But it is hard to say how much without proper estimation.”
“With about half of our exports going to the OECD countries, the depreciation against these currencies will help our exports. The composition of Singapore's exports of goods and services is also different from those of other ASEAN countries. Over the years, we have upgraded our manufacturing and service sectors to stay ahead of our regional competitors in terms of technology, skill content and value added. To remain competitive, we have to continually improve our productivity by upgrading our capabilities and moving into higher value added activities. The Government will continue to invest heavily in education and training, improve our business infrastructure, optimise the use of our limited land and labour resources, and keep a close track of our cost situation so that we remain internationally competitive.”
“The financial services sector is likely to see slower growth in the Asian Dollar Market next year as major infrastructure projects in the region are postponed. General uncertainty about the region could also keep funds away and dampen the fund management industry, although fundamentals in the region remain sound and when the currency and equity markets stabilise, foreign funds could return within a relatively short period, to seek good investment opportunities at attractive lower levels. Taking all these factors into consideration, MTI's preliminary GDP forecast for 1998 is 5%-7%. This currency crisis has highlighted the importance of fiscal prudence and sound financial management. Singapore has a strong current account surplus which stands at 15% of our GDP. The Government budget has been in surplus for many years and there has been no need to borrow money for public expenditure. The MAS has imposed high prudential standards on our financial institutions. Our foreign reserves are strong. Investors have remained confident of Singapore's economic prospects, despite the regional financial turmoil. Recently, MNCs like 3M and Molex announced their plans to expand their plants in Singapore. In the third quarter of 1997, the manufacturing sector registered investment commitments of S$2.2 billion in fixed assets. My Ministry does not expect the depreciation of the regional currencies against the Singapore dollar to have a serious impact on our export competitiveness, although it is monitoring the situation and will recommend appropriate measures, if necessary. Although the Singapore dollar has appreciated against the regional currencies, it is competitive on a trade-weighted basis as it has depreciated against the currencies of most developed countries.”
“As the Singapore economy is closely linked to the region, it will inevitably be affected if the regional currency crisis continues for a prolonged period. However, the impact on the real economy has been marginal so far. There was some impact on the volume of re-exports and visitor arrivals. Nevertheless, economic growth picked up in the third quarter to 10.1% compared with 8.2% in the second quarter. For the whole of 1997, we are on track to achieve a GDP growth rate of about 7%. Two main factors have provided underlying support for our healthy growth this year. (a) Firstly, we are benefiting from the recovery in global electronics demand, with favourable spin-off effects on trade and hub services; (b) Secondly, a large part of Singapore's regional trade consists of intra-firm movement of parts, components and final products by multi-national companies. As demand from the eventual markets of the US and EC remained strong, Singapore's trade was not seriously affected by the regional currency crisis. Looking ahead into 1998, we can expect some moderation in growth. The sustained global electronics recovery and expected healthy growth in the US and EU will continue to provide strong underlying support for Singapore's economic growth. However, the regional financial turmoil is expected to affect our services sector somewhat. Activity in the commerce sector will be dampened by fewer visitor arrivals from ASEAN and lower spending from those who come, reflecting their reduced purchasing power. Re-export trade may also be affected by cutbacks on imports to the region, although this would be somewhat offset by the electronics recovery. Any slowdown in trade would also have a negative knock-on impact on the transportation sector.”
“Mr Speaker, Sir, may I answer Question Nos. 11 and 12 together as they are related?”
“Sir, I do not have specific details, but I believe there may be some. PERISHABLE GOODS (Diversification of sources of supply) 7. Mr Hawazi Daipi asked the Minister for National Development, in view of the irregularity of supply of perishable goods caused by problems at the Johor customs checkpoint, what steps is the Government taking to diversify our sources of supply so that we are not overly dependent on one source.”
“This is done on the other side of the Causeway for the cars coming back. It is perfectly in order for us to check the cars because, with the GST and with the decline in the value of the Malaysian dollars, it is important to make sure that we are collecting the GST which is due from the Singapore shoppers who have gone across the Causeway. And there is a limit of $200 per adult for those who go for less than 24 hours and half that amount for children. So the Customs were just doing their job when they did the checks.”
“Yes, I am sure it will have some impact because this casts a doubt on the feasibility of having plants distributed in various parts of ASEAN, especially between Singapore and Johor. The assumption of manufacturers is that they can source parts and components easily from either Singapore or Malaysia for their factory in the other location. So it is important to facilitate the free movement of parts and components.”
“Mr Speaker, Sir, as Questions 4, 5 and 6 are related, may I answer them together?”
“Clause 7 will re-designate the Director of the Board as Chief Executive, or such other designation as the Board may decide. Clause 8 will give the Board the power to appoint and delegate power to committees. Clause 9 will rename the Tourist Promotion Fund to Tourism Fund. Clause 12 relates to the Board's Annual Report and annual estimates. Clause 15 provides for penalties for misusing the Board's new symbol or the Merlion symbol. Clauses 17 to 20 are to make consequential amendments to the Tourism Promotion (Cess Collection) Act, the Economic Development Board Act, the Industrial Relations Act and related regulations and to make transitional provisions. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Lee Yock Suan]. Bill considered in Committee; reported without amendment; read a Third time and passed. CIVIL DEFENCE SHELTER BILL Order for Second Reading read.”
“STPB has hitherto focused mainly on marketing itself as a tourist destination by itself. By adopting a partnership approach to jointly market neighbouring destinations as well as invest in regional tourism projects, we will be able to offer a more varied and attractive product to visitors and ride on the growth of the tourism industry in the region. Let me now highlight the main clauses of the Bill. Clause 5 will amend section 3 of the Act to rename the Singapore Tourist Promotion Board as the Singapore Tourism Board. Clauses 2, 3 and 4 are consequential amendments arising from this change of name. Clause 10 inserts a new section 13A which sets out the expanded functions of the Board. Clause 11 re-enacts with amendments section 14 to give the Board the necessary powers to carry out its expanded role. It will be able to play a pro-active role in developing the tourism industry including granting loans to tourism enterprises, if necessary, entering into tourism-related joint ventures, whether within or outside Singapore and, with the Minister's approval, borrowing money to finance the Board's activities. Clauses 15 and 16 will replace STPB's existing corporate symbol, the Merlion symbol, with a new corporate symbol to reflect the expanded role of the Singapore Tourism Board. However, the Merlion symbol will continue to be protected and used to promote Singapore as a tourist destination. Other Amendments The other clauses are intended to update the Act and make consequential amendments. Clause 4 will replace the term "tourist enterprise" with "tourism enterprise". Clause 6 will accord greater flexibility to the Minister in the appointment of Board members.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The main objective of the Bill is to give the Singapore Tourist Promotion Board (STPB) an expanded role in the development of the tourism industry in Singapore. The STPB will be renamed the Singapore Tourism Board to reflect its expanded role. The Bill will also update the Tourist Promotion Board Act and make consequential amendments to several other Acts and Regulations. Increasing competition for Singapore's tourism industry Tourism is one of the largest and fastest growing industries in the world. In Singapore, the tourism industry is an important sector of our economy. In 1996, we attracted 7.3 million visitors who spent $11 billion in Singapore. The industry is facing increasing competition. Growth in visitor arrivals slowed to 2.2% in 1996, compared to growth rates of 12% per annum from 1985 to 1990, and 6% per annum from 1990 to 1995. Between 1985 and 1995, per capita visitor spending fell from $751 to $721. The currency crisis and the haze problem affecting the region are additional difficulties to our tourism industry. Tourism 21 However, the long-term outlook for the global tourism industry is positive. The World Tourism Organisation has estimated that tourist arrivals to the Asia-Pacific region will grow from 84 million in 1995 to 190 million in 2010. The challenge for us is to continue attracting high value tourists to Singapore and to participate in this growth industry in the region. To address the challenges ahead, my Ministry launched the Tourism 21 plan last year. Under Tourism 21, we aim to attract more tourists to Singapore and to be an attractive location for tourism investments and businesses as well as to be a tourism hub and gateway to the region.”
“Does that mean many Singaporeans are doing double jobs, triple jobs? Two, three, four reasons? Therefore, a lot of Singaporeans are doing many jobs?”
“On the first point, it is obvious that at every election the public will judge our performance in totality, the pluses, the minuses. These fee increases have not gone down quietly. There have been so many letters in the press. When we meet the people in the meet-the-people sessions, they complain to us. No fee increases are popular. But they are able to see the total picture. Have their lives improved? Has the Government been honest? Have we run away with public funds? Have we improved the overall structure of our economy and moved forward? They must take all that into consideration and cast their votes. If, as the Member says, we have done so badly, at the next election, they can throw us out. On the second point whether there are double income families, as he spoke he realised that it is not quite the same thing, is it not? To say that one person is doing two or three jobs is quite different from saying the husband and wife choose to work or have to work. It is quite a different thing. Each of them is doing one job. And they are doing it because there are a lot of job opportunities. Incomes are good. They want to invest in properties. They want to move from a 3-room flat to a 4-room flat to a 5-room flat and to private properties. They buy a 3-room flat from HDB for maybe $30,000 in the past. Now they sell it for $200,000. That is what people want to have. They want to invest. That is why they feel that their cash flow is rather tight. They also want to have a higher standard of living. They want better things in life. These things cost money.”
“We have been very patient listening to him - MPs' time, journalists' time, wasting our resources, always going over the same issues. I think if he were to summarise his points, think them through carefully and not spread falsehoods, he will make a greater impact on this House. On that note, Sir, I would like to ask the House to resoundly reject the Member's motion.”
“Also for our students. We are paying. The costs are going up. The Government is bearing its share of capital cost entirely and about 80% now of the running cost. And as costs go up, both Government's share and the parents' share go up. But it is a matter of policy, and I think it is a good policy, that we get our students to pay 25% of the running cost, because they are using up a lot of resources and eventually they will earn high incomes. We are giving them a long time to pay. They can borrow from the universities at zero interest rate until they graduate, and thereafter they repay the loan over 20 years. I think we are generous enough. Many countries, including UK, which Mr Jeyaretnam is always looking towards, are trying to raise fees. Otherwise their universities will go bankrupt. Another instance of falsehood. He said, "Oh, the poor are affected by the water rate increases." Does he not know that in fact we have increased the rebates for PUB bills, service and conservancy charges, so that they more than cover the fee increases for 1-room, 2-room and 3-room flats? For 4-room flats, they cover about half the increase. So please get the facts right. Do not come here and spread falsehoods. He goes on, but I do not want to go into too much detail. Basically, what he wants is to have an All-Party Committee. To do what? This is already an All-Party Committee. In fact, the Members of Parliament are being very patient with him. We have stayed back until almost 8.00 pm to listen to him for one hour, and he is not even an elected Member. He is an NCMP. How many opposition Members of Parliament are there in this House? Three Members, including him. How much time have they taken up?”
“They live here. It goes to show that they are willing to come here and work on our local wages. Australians and New Zealanders find that our wages are attractive enough and that it is worth their while to come here and work, and not in their own countries. Let me give him another example. I do not want to go into figures. But it is a fact that teachers in Singapore are paid higher than teachers in UK. He can check this out. Another example. He may have read this sometime back. A foreign maid working in Singapore is paid about $300 a month, some may be more, $350. There are stories of Filipino maids in Singapore who are able to bring back their income and employ maids in the Philippines and still have income left over for their families. That goes to show where our position is. It is no point quoting figures and giving his opinion. What is the factual situation? He goes on to say that Singaporeans work two or three jobs to survive. Where are the figures to show this? This is another example of just exaggerating and basically telling a lie. Another instance of untruth. He says, "Is it a case that because there is no explanation, because we are going to cut down the fees for foreign students to encourage more to come in, from 50% add-on to local fees for ASEAN students and 100% for non-ASEAN students, down eventually to 25% and 10%, that this means that our students are subsidising them." That is not true. It means that the Government will be paying more for these foreign students. That is a fact.”
“I do not want to take up much time because it is getting late and, if need be, we can always have another discussion on another day. And I am quite sure that we will not hear the end of this. We have got quite used to listening to Mr Jeyaretnam and he is always going back on the same old issues. He quoted a lot of figures on incomes. I cannot dispute them because I do not have the figures here, but I presume that they are accurate. He claims that because about 62% of Singaporeans earn less than $2,000 per month, therefore, our incomes are low. Low compared to what? He said that foreigners find Singapore expensive. Yes, this is because they live in hotels, they drive around in cars, they eat in restaurants.”
“For the middle 60% income group, the corresponding figures are 0.4% for Government fee increases and 1.8% total CPI increase for this year. For the highest 20% income group, the corresponding figures are 0.3% for the fee increases and 2.5% overall. If we include other secondary effects, the overall inflation this year is estimated at 2-2.5%. This is close to the average of 2.4% over the past six years and is one of the lowest inflation rates in the world. The Government is mindful of the impact of the fee and rate increases on lower income Singaporeans and has implemented various schemes to assist them. These include the rebates for utilities, rentals and charges for service and conservancy. The rebates extend even to those living in 4-room HDB flats. For those who do not live in HDB flats, there is the CCC assistance scheme which has a $3 million fund to help them. Families with less than $1,500 monthly income can apply under this scheme. As for the university, polytechnic and ITE fees, there are various loans, bursaries and scholarships to assist needy students including those awards funded by Edusave and the CCCs. The Government reconvened the Cost Review Committee last year to relook at the issue of cost of living in Singapore. Unfortunately, both the Workers' Party and the SDP declined to have their MPs sit on the Committee. During this year's budget debate, the opposition Members had ample opportunities to raise the fee increases for debate but failed to do so. Under these circumstances, we can only conclude that Mr Jeyaretnam's proposal for another committee to examine fee increases is mere politicking. Sir, I would just like to respond briefly to some of the points that were made a while ago in the debate by Mr Jeyaretnam.”
“All the recent fee and rate adjustments have been fully justified and explained to the public. Bus and MRT fares were raised by 10 cents per trip for cash payment. For payment by farecards, the fare for non-air-conditioned buses was raised by 5 cents per trip, but there was no increase for air-conditioned buses and the MRT. These adjustments are necessary to ensure that the bus companies and MRT remain viable as fares have not risen in tandem with the rise in operating costs over the last few years. University fees have been increased slightly every year to reflect the cost increases and to move towards recovering 25% of running costs. University students constitute only about 6% of our student body but they use up about 20% of the education budget. With the target of recovering 25% of running costs, it means that taxpayers will continue to subsidise university undergraduates heavily to the extent of 100% of fixed costs and at least 75% of running costs. Water rates have to be increased sharply to reflect the much higher cost of producing water by desalination. Water is a vital resource which must be priced correctly to encourage conservation and to enable us to reduce our dependence on external sources. Coming close together, these fee and rate adjustments may appear to the public to have a large impact on our cost of living. However, it is actually not so. My Ministry has been monitoring these cost increases and their total impact on our consumer price index (CPI) and the impact is actually quite small. For the lowest 20% income group, the fee increases will raise inflation by 0.6 of a percentage point. Including the projected cost increases for non-governmental items, such as food, clothing, etc, the CPI for this group is expected to rise by 2% this year.”
“Mr Deputy Speaker, Sir, there is no need to set up an All-Party Committee of Parliament to examine fee increases by Government or Government-related organisations. Such fee adjustments are the responsibility of Government and have to be fully justified to the public. If necessary, they can be brought to the attention of Parliament and thoroughly debated. Members of Parliament, including elected and non-elected Members, are free to ask questions and to probe, query and criticise the Ministries concerned for their action. Ultimately, the Government is answerable to the voters who can give their verdict of the Government's performance at the ballot box. The Government must have the political courage and conviction to govern well and decisively for the benefit of all Singaporeans. Many countries are in a log jam and are unable to extricate themselves from their structural difficulties, because their political leaders are unable or unwilling to act decisively in the interest of the country. For example, more and more cities are getting snarled up with traffic, not because their government officials do not know what to do, but because their political leaders are afraid to upset voters by taking unpopular but crucial action to remedy the situation before it is too late. Singapore would have been faced with a similar situation years ago if the Government had not taken drastic action to control the vehicle population besides investing heavily to expand the road network, build the MRT and improve public transportation. Unpopular measures had to be implemented despite their political cost to the PAP. The end result is that the traffic has continued to flow smoothly, the economy has grown strongly and the voters have reaffirmed the confidence in the PAP Government.”
“Mr Speaker, Sir, PowerGrid has been converting and will continue to convert power supply from overhead cables to underground cables at the request of residents in private residential estates. Residents are required to pay a standard connection charge and engage a licensed electrical contractor to shift their electricity supply intake point to the front of their houses, and provide the necessary lead-in pipes up to the fence so that they can tap from the underground mains located along the roads. However, PowerGrid will not be able to remove the overhead cables if even one resident decides to continue with overhead supply. My Ministry will study whether to legislate such that PowerGrid will be able to proceed to convert power supply from overhead cables to underground cables if a large majority, say, 75% of affected residents agree to the conversion. CENTRAL EXPRESSWAY (Provision of underpass from Towner Road to Whampoa Drive) 11. Mr Choo Wee Khiang asked the Minister for Communications whether the Land Transport Authority will consider providing an underpass at the Central Expressway (from Towner Road to Whampoa Drive).”
“(a) The Chinese Garden and Japanese Garden are operated at a loss and have to be subsidised by the Jurong Town Corporation. The operating deficits incurred for FY94/95, FY 95/96 and FY 96/97 are as shown: Financial 94/95 95/96 96/97 Year Income $1,161,843 $ 851,047 $ 891,571 Expenditure $1,412,411 $1,294,394 $1,039,937 Operating $ 250,568 $ 443,347 $ 148,366 Deficit (b) In view of the high cost of maintaining the buildings and special structures in the Gardens, admission charges are necessary to help defray part of the operating cost. However, to make the Garden more accessible and affordable, a scheme of unlimited entry (excluding special functions) at a nominal rate of $20 per annum per person will be introduced in August this year. TENDERS FOR WET MARKET 2. Mr R. Ravindran asked the Minister for National Development why the Housing and Development Board has been unable to secure successful tenders for the wet market located at Taman Jurong Shopping Centre, Block 399 Yung Sheng Road.”
“Mr Deputy Speaker, Sir, I beg to report that the Committee of Supply has made progress on the Main and Development Estimates for the financial year 1997/1998, and ask leave to sit again tomorrow.”