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PARLIAMENT OF SINGAPORE · FORMER

Liang Eng Hwa

Singapore

IN THEIR OWN WORDS

Sir, in Mandarin, please. (In Mandarin): [Please refer to Vernacular Speech.] I would like to thank IMDA for its flexibility in allowing the filming of "Dear You" in the Teochew dialect, and for approving additional screenings to meet public demand.

PROPOSAL TO REVIEW DECISION FOR "DEAR YOU" FILM TO BE DUBBED IN MANDARIN FOR GENERAL COMMERCIAL RELEASE - 2026-07-07 · READ THE OFFICIAL RECORD

Thank you, Mr Speaker. Sir, we hope that there will be peaceful resolution to the Middle East conflict soon and that the Strait of Hormuz will be fully open.

IMPACT OF ENERGY CRISIS ON HIRING PROSPECTS - 2026-05-07 · READ THE OFFICIAL RECORD

Sir, I believe the political office holders have not replied or responded to my cut on traffic congestion, so can I perhaps ask the Minister, whether is it because he disagrees with me that the traffic congestion has worsened or that there is no non-pricing solutions to traffic congestion, which I had asked for.

COMMITTEE OF SUPPLY – HEAD W (MINISTRY OF TRANSPORT) - 2026-03-04 · READ THE OFFICIAL RECORD

Sir, Minister Chee, in his speech mentioned that this year we will be launching 19,600 new BTO flats. So, I would like to ask, how he sees the trajectory in the next two, three years.

COMMITTEE OF SUPPLY – HEAD T (MINISTRY OF NATIONAL DEVELOPMENT) - 2026-03-04 · READ THE OFFICIAL RECORD

Also, flexible work arrangements, through inter-agency coordination, could also help flatten peak demand. Sir, road pricing remains important, of course, but it must be a multi-pronged approach to manage congestions. And all these suggestions that I have made, I hope would also help to reduce congestions.

COMMITTEE OF SUPPLY – HEAD W (MINISTRY OF TRANSPORT) - 2026-03-04 · READ THE OFFICIAL RECORD

Thank you, Speaker. Sir, there are Singaporeans who felt strongly that the founding Prime Minister Mr Lee Kuan Yew's original wish to have the house demolished should be respected. It is not just because this is his personal wish but also the values that he espouse, which is not to have personal monuments.

THE GOVERNMENT’S INTENTION TO PRESERVE THE SITE OF 38 OXLEY ROAD - 2025-11-06 · READ THE OFFICIAL RECORD

The complete record

Every one of 1,031 lines we hold for Liang Eng Hwa, in date order, each linked to its source. Free to read, in full, without an account. Page 18 of 21.

  1. I came off the ride with cold sweat, giddiness and an unsteady gait for at least a minute before gaining full composure. I checked with my friends whom I was there with and at least 30% of them felt the same symptoms. From my very brief experience, I certainly feel it is important for thrill rides to meet safety standards and requirements. It is also appropriate for the authorities to assume oversight over these rides and ensure all aspects of the rides are optimised. Sir, we are debating this new Bill after two recent high profile incidents mentioned by my colleagues earlier. Injuries and accidents which happen can be caused by, first, mechanical causes, secondly, electrical causes and thirdly, human errors. Besides these, there are also issues such as lightning strikes as we are dealing with a relatively tall structure here, ejections and, of course, suicides, occasionally. I would like to suggest that the operators place a strict emphasis on preparedness and have an algorithm in place so that all staff know exactly what to do in the event of an untoward incident or other emergencies. These need to be regularly practised through drills and exercises. With the new Bill, Sir, operators will have to get relevant permits and approval. Public entertainment licence is also to be obtained in between installing and operating the rides. This is stipulated to be done yearly. Will there be yearly inspections then, done on this renewal? I hope that it can be effected. This will help us put our practice in alignment with the United States as stipulated in their National Amusement Park Rides Safety Act which appoints a task force to inspect rides regularly and present educational campaigns to promote safety as well.

    OFFICIAL REPORT - 2011-02-14 · READ THE OFFICIAL RECORD

  2. I would also like to ask if the person responsible or the ride manager is a foreign national, would there be a need for a local guarantor or some form of reference just to ascertain the suitability of the responsible person or the ride manager, and also if they are responsible individuals. Sir, as in all regulations, we can have the best rules and regulations but if they are not strictly enforced and complied with, there would be no significant difference in enhancing safety. I would like to ask Senior Minister of State what are the enforcement measures that the authorities have taken in the past on the operators and what are the common violations? Under the new framework, how would BCA and the other agencies intend to strengthen enforcement and compliance of the new regulations? Sir, with that I support the Bill. 3.37 pm Assoc. Prof. Fatimah Lateef (Marine Parade): Sir, on 23rd December, I went on one of these permanent rides in Singapore, which I have to confess as a medical specialist who deals with trauma, I have always been sceptical about. I got into the seat and suddenly, someone said "hands up" and a metal bar came across my thighs. That was the only device to strap me down and off we went forward into a dark tunnel. Before I knew it, we were moving backwards at a very rapid speed, and I feared for my neck. Feeling some strain already, and from the contraction and extension movement that was going on, I feared even further. My mind wondered, thinking of the consequences of a whiplash injury. Then, before my eyes could accommodate, bright lights were shining and eerie noises and voices came on. For the rest of the ride, I kept myself crouched as I felt this was the best position to protect my neck.

    OFFICIAL REPORT - 2011-02-14 · READ THE OFFICIAL RECORD

  3. In March 2010, the famous Battlestar Galactica roller coaster at Universal Studio Singapore was halted one week after opening when a seat fell off during the routine testing after a metal bar holding it to the chassis of the roller coaster gave way. These incidents have rung the alarm bells as they could impact Singapore's reputation as a tourist destination and, more importantly, risk the lives of the patrons and public. I would like to ask the Senior Minister of State to share whether if the certification and the maintenance regime on the permanent major rides is rigorous enough. Also, what are the frequencies of audits or inspections by BCA or the CAs? Sir, the ultimate responsibility and accountability of the public safety must fall on the management of the amusement ride operators or person responsible as defined in clause 2 of the Act. I also support the creation of the ride manager role under the Act for further accountability. It would further strengthen safety consciousness among the employees of the operators. Clause 19 imposes duty on the holder of an operating permit and ride manager to notify the Commissioner of Amusement Rides Safety of any contraventions of the regulation where they know or ought to reasonably know even if it does not lead to an incident. I think this is a requirement for self escalation of any violation is good and would instil a more safety conscious culture among the permit holders. The operator and the ride manager need to be constantly reminded of this duty. The Act also mentioned in clause 16 that the ride manger to be suitably qualified and to be a trained person. It would be better if the qualifications required can be more specific, for example, requiring a certain level of technical proficiency.

    OFFICIAL REPORT - 2011-02-14 · READ THE OFFICIAL RECORD

  4. We are seeing more world-renowned amusement rides in Singapore at our theme parks. Some of the rides may even be the first-ever to be introduced worldwide. Obviously, the vendors and the manufacturers would spare no efforts to increase the thrill factor to attract more patrons. For the temporary rides, many of the ride equipment are imported or leased from overseas locations as far as Europe. Some of these complex relocatable rides come on short notices and stay on short tenures during the festive seasons, for example, Lunar New Year. There could be major modifications done on the rides to customise to local conditions. While BCA would be in a much better position than the SPF to do the job, would they have the domain knowledge and resources to effectively regulate the industry – which is getting more sophisticated – and to enhance public safety? Still on expertise, I would also like to ask the Senior Minister of State if there are currently enough trained Conformity Assessors (CAs) and Qualified Persons (QPs) in the industry so as not to cause bottlenecks in the industry. Are the QPs trained enough to look into rides that may be water-borne or air-borne like hot air balloons? I was told in some countries, some rides would even involve some pyrotechnics and fire. Also, I would like to know whether the new framework is likely to significantly increase costs, especially to the major rides. In December 2008, the breakdown of Singapore Flyer, one of our iconic tourist attractions, left passengers stranded for six hours.

    OFFICIAL REPORT - 2011-02-14 · READ THE OFFICIAL RECORD

  5. Sir, first and foremost, I applaud the Ministry for carrying out this timely review on the regulatory regime. Over the years, amusement rides have now become more adventurous, more complex and much bigger in scale. As the past Chairman of the River Hongbao organising committee, I saw for myself how thrilling the rides can be and how such fun rides can add to the carnival atmosphere as well as act as a crowd puller. It seems the sky is the limit for these amusement rides as they just get higher and faster. Just watching these rides in itself is a thrill, not to mention to ride on them. Sir, I support the new regulatory approach which is more structured and comprehensive, involving the right expertise to tackle the increasing sophistication of the amusement rides. The new framework adds a lot more clarity on the regulatory requirements as well as the responsibilities of the related parties. I am heartened to note that public safety is the key motivation for the Bill and would always be the overriding consideration. Central to this new approach is the appointment of BCA as the lead agency taking over the role from Singapore Police Force. As the amusement rides are more of an engineering safety issue than a law and order issue, we should rightly not burden the Singapore Police Force (SPF) with such technical regulatory functions so that they can better focus on enhancing security. However, I would like to find out from Senior Minister of State how may the Building Construction Authority (BCA) intends to gear up for this new role. We know that BCA is a competent regulator for buildings and construction. Would the authority have the required technical expertise and know-how to effectively regulate rides and stay abreast of the industry developments?

    OFFICIAL REPORT - 2011-02-14 · READ THE OFFICIAL RECORD

  6. Sir, notwithstanding the statistics given by the Minister of State on the number of cases and so on, I think on the ground, when we visit the residents, we know that there are many cases of high-rise littering that go unreported and hence not captured in the data that the Minister of State has just revealed. My first question to the Minister of State is: should there be more and even stronger measures to deal with high-rise littering and perhaps more resources allocated to this? Secondly, the problem of high-rise littering in HDB estates cuts across a few agencies – the HDB, Town Council, even the Police, in addition to NEA – it seems that there is no clear ownership and accountability of this problem. So I would like to ask the Minister of State whether NEA should be the agency that takes ownership of this problem and that will coordinate with the other agencies so that we can deal with this problem decisively.

    OFFICIAL REPORT - 2011-01-11 · READ THE OFFICIAL RECORD

  7. The Police have, for example, bought more CCTVs and, where appropriate, they have also helped the residents, Town Councils and grassroots fix CCTVs. On the question on youths – this is something we are monitoring all the time. Like I have said, the figures have shown that for youths under 16, the number of youths involved in loansharking and harassments has come down. There is no trend as such but this is something we are always mindful of. As I have said, we have strengthened the law, so a person over 21 years who instigate or get a youth under 16 years to get involved in loansharking can now be sentenced up to nine years. Sir, the message is very clear and I would urge everybody to continue to press on.

    OFFICIAL REPORT - 2010-11-23 · READ THE OFFICIAL RECORD

  8. Sir, notwithstanding the Senior Minister of State indicating that numbers are stabilising, we still hear from the ground feedback and reports about loansharking causing a lot of distress, inconvenience and fear to our residents. Some residents have given feedback that they have got used to this kind of harassment which is a worrying sign. I would like to ask the Senior Minister of State whether we should set a more ambitious target in terms of reducing the number of cases of harassment and loansharking activities and perhaps commit a bigger budget and more resources to decisively deal with loansharking activities. Deal them a severe blow so that we can break the back of the racket and the network. My second question: we discussed earlier about youth gangs and whether there are indications that many of these teens in the gangs are also involved in these loansharking activities. Are these groups breeding grounds for loanshark runners? Assoc. Prof. Ho Peng Kee: Sir, the first point is that we must see the situation in context. As I mentioned just now, given that the surge from 2007 to 2009 has stabilised and come down means that we are doing something right. I would like to attribute it to all the stakeholders working together. Having said this, I also agree with Mr Liang that every case is one case too many. Definitely from the feedback on the ground, we feel for the residents when they get harassed. I receive many appeals from Members. When MPs write to me, I would ask the Police to see whether more can be done. It is not a matter of resources because the Police are, in fact, resolved to work with the grassroots to tackle this problem.

    OFFICIAL REPORT - 2010-11-23 · READ THE OFFICIAL RECORD

  9. Sir, I thank the Minister for the reassuring reply. While I understand that as an international financial centre, we do experience outflows and inflows. My further question to the Minister is whether in the midst of these in- and outflows, how much is leaked to the local markets and, hence, driving up the asset prices and Singapore dollar? Secondly, whether it is the case where the foreign capital inflows are more short term and "hot money" in nature, while the outflows which may come from local sources, are longer term in the investment horizon? Hence, the related question is what will happen if US begins to unwind its quantitative easing? Would there be a massive capital outflow and what would be the impact to Singapore and Asia?

    OFFICIAL REPORT - 2010-11-22 · READ THE OFFICIAL RECORD

  10. Sir, I thank the Minister for the reply. The two big casinos have only just started and there is a long road ahead. I have two further questions. Firstly, are there sufficient measures in place to either encourage or even compel the casino operators to look to the overseas markets, given that the Singapore market will always be a low-hanging fruit for them to pick and an easier recurring income for them to look for? Do we need more disincentives for the local market? And do we need more incentives for them to target the overseas market? My second question is related to the number that the Minister has given – one million visitors. I think there is this concern on the ground and in the community about problem gambling. I would like to ask the Minister whether there is sufficient awareness among the public about problem gambling in Singapore and whether, at the community level, there is enough traction to work with the various community or grassroots organisations to stem the rise of addictive gambling in the neighbourhoods.

    OFFICIAL REPORT - 2010-09-15 · READ THE OFFICIAL RECORD

  11. Sir, the significant ramp up in the housing supply was only announced recently. I would like to ask the Minister why did the Ministry of National Development (MND) not increase the supply of flats sooner to cater to the increase in immigration in the recent years that has led to this current shortage. Was MND caught by surprise by this surge in immigrants?

    OFFICIAL REPORT - 2010-09-15 · READ THE OFFICIAL RECORD

  12. Mr Yeo Guat Kwang asked the Minister for Transport (a) if the recently introduced measures to enhance the safety of workers transported on lorries should be effected sooner instead of the phased approach; (b) whether the deadline for compulsory installation of higher side-rails on existing lorries should be brought forward rather than wait till 2012; (c) whether the current number of buses/minibuses is sufficient to meet the transportation needs of the industry; and (d) whether the Ministry will consider supporting businesses who wish to convert to bus transportation in the near future by providing incentives/subsidies. 15. Mdm Halimah Yacob asked the Minister for Transport (a) whether the Ministry will consider bringing forward the deadline for introducing new safety measures for the transport of workers on lorries that were supposed to be introduced by 2012; (b) what enforcement action will be taken against errant employers who fail to comply with safety rules when transporting workers; and (c) what are the immediate steps taken to provide better protection to workers pending the introduction of new safety measures. 16. Dr Lim Wee Kiak asked the Minister for Transport (a) if the Ministry will consider bringing forward the proposed measures to have higher protective side railings and canopies for lorries which will only take effect in 2012; and (b) whether there are plans for interim measures such as public education for transport operators who ferry workers. 17. Dr Lam Pin Min asked the Minister for Transport (a) what are the underlying reasons for the spate of accidents involving foreign workers transported in lorries; and (b) whether the speed limit for vehicles used in transporting workers can be further reduced to make travelling on these vehicles safer.

    OFFICIAL REPORT - 2010-07-19 · READ THE OFFICIAL RECORD

  13. At the same time, it is better for us to work with the condominiums and businesses around the area to bring them into this early warning system, and to play a part to prevent flooding from occurring in their own developments. As mentioned by Mr Christopher de Souza earlier, some of the condominiums' management will probably have to make a decision as to whether they want to implement some of the flood prevention measures that we have advised them to do so. These are the things that we can continue to do together to ensure that we can minimise the impact of flooding if it occurs again at Bukit Timah. SAFETY OF FOREIGN WORKERS ON LORRIES (Reasons for recent accidents and review of safety measures) 13. Mr Christopher de Souza asked the Minister for Transport in light of the deaths of three foreign workers arising from an expressway accident on 22nd June 2010 (a) what measures will be implemented to ensure the safety of foreign workers being transported to and from work on their employers' vehicles; (b) how will these measures help minimise injury and how quickly will they be implemented; and (c) whether the Ministry will consider legislating that employers must transport their workers in mini buses or buses with compulsory seat-belting. 14.

    OFFICIAL REPORT - 2010-07-19 · READ THE OFFICIAL RECORD

  14. Sir, my question is related to what the Member has just asked. I would like to ask the Minister: when will the alert system be ready to roll out to the public? The second question is similar to Mr Christopher de Souza’s. I am also a MP of the Bukit Timah area. Bukit Timah is supposed to be known as a flood-prone area. Despite the construction of the drainage system in the area, we are still experiencing floods in that area. I would like to ask the Minister: even with the enhancement to the drains, canals and so on, would Bukit Timah ever be taken off the flood-prone area list? Or can it be less flood-prone than what it is today? Assoc. Prof. Dr Yaacob Ibrahim: Sir, honestly, no Minister can ever give the Member the answer. [Laughter ]. It is difficult for us to say as to whether or not we can make it entirely flood-free. I was reminded by senior Members of the Cabinet that Bukit Timah was known to be a flood-prone area in the 1960s and 1970s. But if you look at the chart, the PUB has been very successful in reducing the numbers of flood-prone areas, including areas in Bukit Timah. But, obviously, more needs to be done and we will do our best. We cannot look at the control of floods just purely from the drainage system. The idea of protecting yourself, warning yourself early that a flood may occur, what you can do – is an important part of the challenge. So it is both trying to give you early warning so that you can do something, and on the part of the PUB to increase the drainage system as much as possible to drain off the water into the sea as quickly as possible. So we will do our best, expand the drainage and the canals that we have in Bukit Timah.

    OFFICIAL REPORT - 2010-07-19 · READ THE OFFICIAL RECORD

  15. Sir, I felt the need to re-visit the issue of food hygiene at public places such as hawker centres and coffeeshops as there is already no room for complacency. It is an area that we need to maintain constant vigilance so that incidents such as what happened at Geylang Serai Rojak stall will not happen again. Lapses in food hygiene at hawker centres can impact public confidence at public eating outlets. And we need to send a clear signal to stallholders. With the increase of back-to-work women and double-income families, more and more families are dining out. The usual two-meals-out routine could soon become all-meals-out phenomenon. Hence, food safety and hygiene becomes essential and critical as Singaporeans eat out more often. 6.15 pm Can the Minister provide an update on what has been done to strengthen the food hygiene regime since the incident? Has the NEA done regular spot checks and what was the number of lapses in food and environment hygiene since the incident? Have there been improvements? Can the Minister also give an update on the rat situation at hawker centres and public eating outlets, which is becoming more noticeable?

    OFFICIAL REPORT - 2010-03-08 · READ THE OFFICIAL RECORD

  16. Sir, we have a number of economic agencies that go all out to help our businesses and companies, like IE Singapore, EDB, SPRING, A*STAR, and so on. In addition to that, we have many trade associations and the business chambers all out there to help the businesses as well. So clearly there are some areas of overlaps. I want to ask the Minister whether there is a need to consolidate or streamline many of these agencies that are helping the businesses, including maybe even sharing of database. MCYS promotes the philosophy of Many Helping Hands. I do not know whether MTI subscribes to this philosophy, but certainly if there are too many cooks it may spoil the food. Maybe the Minister may want to give a response on how we would want to streamline these, in the light of the ESC report that more schemes will be announced.

    OFFICIAL REPORT - 2010-03-08 · READ THE OFFICIAL RECORD

  17. It would also be a good gauge of the risk profile of Singaporeans on the susceptibility of the nuclear risk. Our neighbouring countries are also looking at the nuclear energy option. Given the close proximity, can the Minister give an update on the developments at our neighbouring countries and how it could impact us? Do we have an ASEAN stand on nuclear energy, for example? I would also like to ask the Minister on the progress and developments of the other alternatives. How would nuclear energy feature when compare to these other alternatives like solar, wind, and so on. Solar energy

    OFFICIAL REPORT - 2010-03-08 · READ THE OFFICIAL RECORD

  18. Sir, one of the recommendations of ESC that caught the public's attention was the possibility of nuclear energy being a possible option to meet our long-term electricity needs. We know that nuclear energy has been around for some time and has been a strategic source of energy for many countries for many years. Technically, it is a rich source of energy at competitive economic cost. However, like many Singaporeans, it comes as a surprise to me that the nuclear energy would ever be a possible option in an island state with a size of about 710 square kilometers and a residing dense population of five million people. It may take a while for some to overcome that psychological barrier, given the perception of the radioactive hazards and safety concerns. 2.30 pm There are strong strategic and economic appeals for the nuclear option. It would certainly enhance our energy resilience and, unlike many countries, we have the patient capital for such high capital intensive investments. Like the decision we made on the casinos some years ago, we know the compelling economic benefits but the question is whether the other costs can be mitigated and reduced to an acceptable level. Not much has been said by the Government or MTI since the release of this far-reaching recommendation by ESC. So, I hope that the Minister can shed more light on the Government's thinking and its position; pending, of course, the feasibility study. A decision like the adoption nuclear energy would have a significant bearing on future generations. I also hope that with more information from the Government, it would trigger a healthy and informed public debate on this issue much like what had happened to the IR debate.

    OFFICIAL REPORT - 2010-03-08 · READ THE OFFICIAL RECORD

  19. Here, I hope that the Government will keep tab of the costs of doing business and our cost competitiveness even as the economy recovers. In this transformational phase of the economy, many of the businesses may be incurring short-term adjustment costs as well as managing the rising input costs as the economy grows. Are we expected to see inflationary pressures in the economy, especially in areas where bottlenecks existed even during the crisis, such as the construction and hotel sectors? Our own history provides us with some learning lessons. In the 1980s, Singapore was enjoying strong economic growth and then the economy undergone a major shift towards higher value adding activities. However, rising business costs, including higher wages, took away our competitive edge as some businesses struggled with high overheads and low profit margins. We had to respond then, and it was a painful time for all. I remember we had to introduce sharp reductions to CPF contributions and forced to lower business costs sharply again. I would like ask the Minister for his take on the business cost and inflation outlook in the next one to two years. Credit liquidity and Special Risk-Sharing Initiative

    OFFICIAL REPORT - 2010-03-08 · READ THE OFFICIAL RECORD

  20. Hence, I would like to ask the Minister if an entrepreneur culture has indeed taken root in Singapore, something we had debated at length in the past. Besides growing companies to beyond the $100 million sales revenue, we should push for the growth of new industry champions and develop our local brand names, global in outlook, yet anchored to the local economy. Having a strong base of such companies gives us a bigger handle of our own economic destiny and hence greater economic resilience. These companies will employ our skilled and productive local workforce, utilise our infrastructures and real estate, pay returns to our capital and, most importantly, call Singapore their home. We need more of these queen bees, as I have said in my Budget speech. We could leverage on our strengths and advantages. We have the capital, the talents, the infrastructures and system know-how for new industry champions to emerge. So let us aim to nurture and develop between three and five global brands, similar to the likes of SIA in the next 10 to 15 years. Business cost Sir, the economy is recovering with little spare capacity. Unemployment remains at a very low level of about 2% and bottlenecks remain in many parts of the economy. Externally, commodity prices are on the uptrend again and oil prices today are above $80 per barrel. Coupled with the impending increase in foreign worker levy which will have a spiral effect on the economy, there is a real risk that business cost will rise sharply again in the next one to two years. 2.00 pm The investments in productivity growth, which would take some time to bear fruits, would not help improve the situation in the short term.

    OFFICIAL REPORT - 2010-03-08 · READ THE OFFICIAL RECORD

  21. In this case, I am glad that the ESC has recommended an ambitious target to double the number of local enterprises with revenue of over $100 million from 500 to 1,000 within the next 10 years. There are generous schemes announced in the Budget that would certainly help. Some examples include the $1.5 billion growth capital for co-investments in local companies, tax deductions for angel investors and Government assistance in cross-border financing. This is all great news for local companies seeking internationalisation. My only concern is whether there are now just too many measures being offered by the various economic agencies. This buffet spread of schemes may be getting too much for the companies and even for the staff of these agencies to digest. I read that between the various agencies, like IE Singapore, SPRING, EDB, Customs, and so on, there are about 157 schemes. I am sure the bright officers at these agencies would be able to come up with more schemes each time the businesses or the MPs present a strong and deserving case or request. However, following ESC report, I believe it would also be timely to take stock of the various schemes across agencies and see how we could harmonise and further streamline the various programmes and also minimise the administrative paper work. The challenge is to make these schemes even simpler, yet retain their effectiveness. Besides assistance schemes to help companies grow, I am glad that the Budget also enhanced the future business leaders scheme. Without entrepreneurial skills, there would not be business and ventures. We need a new generation of self-starting businessmen to emerge, stand tall and be prepared to take risk on their capital.

    OFFICIAL REPORT - 2010-03-08 · READ THE OFFICIAL RECORD

  22. Sir, the key buzzword for this year's Budget is productivity. Given the significant gap between our productivity levels and that of our global leaders, it is clearly something we need to work on. In several of our large sectors, we are about 60% of the global leaders. Even if we are able to achieve the 2%-3% productivity growth for a whole decade, it will at best only get us near the leaders and put us in the game. Our competitors who are behind us will catch up and narrow the productivity gap as well. My point here is that a competitive, skilled and productive workforce, while essential and necessary, is only a prerequisite and a tentative first step. It does not guarantee us long-term livelihood in the brave new world. At the end of the day, we need viable and successful businesses and companies in Singapore to create and sustain quality jobs for our workforce. Of course, without a first class workforce in Singapore, we will also not have a viable and successful business here. So, only with labour and capital working seamlessly together, can we multiply our economy value and grow. Given our small and export-dependent economy, we must get our local enterprises to be more outward looking and to have their business strategies geared towards the wider world. Many of these firms may be doing well locally but we need them to think big, expand the operation beyond our shores and develop our external economy. However, as the ESC pointed out, we do not have a healthy spread of local companies of different sizes. We have a dire shortage of large firms, especially those that have annual sales turnover of beyond $100 million or above. There is a clear need to expand this $100 million club and spur some of its members to grow into industry champions in their own right.

    OFFICIAL REPORT - 2010-03-08 · READ THE OFFICIAL RECORD

  23. With the new Budget measures and an infusion of $250 million from the productivity fund, would this be sufficient to uplift productivity and reduce the dependence on foreign workers? What are the possible initiatives and the timeline be like? "Green" buildings

    OFFICIAL REPORT - 2010-03-08 · READ THE OFFICIAL RECORD

  24. Sir, the construction sector, despite accounting for only 6.2% share of the GDP value-add, has helped underpin the overall economy with its double digit growth in the last few years. More often than not, the concern for the construction sector is whether the industry has the capacity to meet the ever increasing construction needs of the economy. There are a number of mega infrastructural projects ongoing and there are also many in the pipeline. Coupled with the increasingly buoyant property market and the recovering economy, I would like to ask the Minister for his thoughts on the state of the construction industry and whether the industry is now better able to cope with increased demand of construction activities. In particular, also how was the level of activity for the construction sector last year compare to the peak and what is the level of activity expected in the next one to two years? How would the completion of the two Integrated Resorts impact the industry? In one of my first parliamentary questions in 2006, I asked about the likelihood of a construction industry bubble forming in view of the many ambitious mega projects in the pipeline then. I would like to ask again whether we would again be seeing construction bottlenecks coming back like what we saw in 2007 and 2008 which resulted in sharply increasing construction costs. With the new foreign worker levy structure, the average foreign worker levy is expected to rise by $100 by 2012, how would the increase in foreign worker levy impact the industry? Have the industry made progress in the area of technology enhancements and productivity?

    OFFICIAL REPORT - 2010-03-08 · READ THE OFFICIAL RECORD

  25. This is not just to plan the infrastructure to contain the population, but it is also to meet the aspirations of citizens like me for quality living, so that they can have the rootedness and sense of belonging. But we face many challenges, because we have land constraint, a really dense population, changing demographics, an increasingly greying population, a different population mix and environmental changes. I hope that the Concept Plan 2011 has considered all these factors and discussed these issues as well, and how we can overcome these challenges. There will be many trade-offs as you decide how best to position Singapore in land planning, both as a home and as a place for business. There is no easy solution. That is why the Concept Plan 2011 is important as it looks at the next 40, 50 years to answer these questions. I really hope that you would be able to do the forward planning as well as we did 40 years ago and achieve the same success. Singaporeans will continue to find Singapore a place they can identify with, be proud of and make it their home. Effective land use

    OFFICIAL REPORT - 2010-03-08 · READ THE OFFICIAL RECORD

  26. So it led me from the coast, to the lagoon, then to the HDB flats, ran beside the coffee-shops, back to the beach, go into the residential area and finally to the end point. This is what we call pavement running or now popularly-known, park connectors. I am also very excited that the Ministry of National Development (MND) is talking about building an entire park connector round-island pavement of 150 kilometers. When that is up, you can imagine that families can go trekking for three days two nights – around Singapore, going through industrial areas, residential areas, HDB heartlands, into the city and back to their home. I have lived in two other cities for a period of time. These cities are filled with a lot of energy and business life, but also a lot of people. However, they have vast land and nature. That is something that Singapore does not have in natural reserves, vast land or nature. But, then, I would say that the credit goes to the Singapore Government and the Ministry of National Development for doing very careful planning to keep our rustic nature. The other day, I signed up for another long distance race of 25 kilometres, that is to run the trails from MacRitchie Reservoir, to Peirce Reservoir, into Bukit Timah, and back. That was only 25 kilometres, but the longest distance is about 100 kilometres. That 100 kilometres takes you round two loops of 50 kilometres. Singapore does have 50 kilometres of trails, and I am not sure if many Singaporeans know that. We are not just an urban city, we actually have very good reserves and nature to enjoy. I am glad that MND has now launched the Concept Plan 2011 public consultation to plan for the next 50 years. To me, it is a very important project, as a nature-lover and an outdoor-activist.

    OFFICIAL REPORT - 2010-03-08 · READ THE OFFICIAL RECORD

  27. Limited land resources Sir, with only about 710 square kilometers and a residing population of almost five million coupled with the aspiration to be one of the leading economic powerhouses in Asia and in the world, land use planning in Singapore is probably the most challenging task of any land planners in the world. Here, we have to salute the land planners at the Ministry of National development (MND) and Urban Redevelopment Authority (URA) for having done a great job for Singapore since independence. Singapore is now a great place to live, work and play in Asia despite our tight land constraints. Going forward, our limited land resources will be increasingly squeezed again as we embarked on the next phase of economic growth, to be a distinctive global city. How do we plan even smarter so that the land constraint would not impede our future growth and progress? What are our options – short term and long term? The Economic Strategies Committee (ESC) has also come up with recommendations. I would like to hear also Government's response to the recommendations, and in particular how would the emphasis of land productivity impact the cost of industrial land. Concept plan 2011 – Singapore's future The Senior Parliamentary Secretary to the Minister for Community Development, Youth and Sports and Minister for Transport (Mr Teo Ser Luck): Sir, three years I signed up for a marathon. In all the marathons I have run, there are white strips after white strips on the road. It is a very long road when you think about 42 kilometers of running. But I was actually looking forward to this marathon. It can lead me from one place to another on a pavement, instead of the road.

    OFFICIAL REPORT - 2010-03-08 · READ THE OFFICIAL RECORD

  28. Are there unusually large numbers of foreign buyers coming to the market and are they one of the causes for the rising prices? Is there evidence of unhealthy speculation in the market? I would also like to ask the Minister how the Government determines whether the property market is speculative, bubbly or overheating? What are the key indicators and references that the Government uses? Would it be better if the Government adopt a more transparent approach and communicate these to the market? I believe more information and communication will lead to less volatility as well as reduce second-guessing by the market players and participants? I also hope that Government can look at ways to pre-empt another emergence of the so called "en bloc fever". Excessive en bloc activity could cause distortions to the property market and add volatility in the short term. If too widespread, it is a negative externality to the economy as it adds upward pressure on costs in a tight labour market condition and can contribute to further bottlenecks in the construction industry. Besides, en bloc related construction activity can be harmful in many other ways. To the environment, it is extremely wasteful to tear down and rebuild buildings in otherwise great condition. We have also read about how en bloc sales at private estates have heightened tensions and stirred up conflict among neighbours, residents and developers. Some of these disputes end up being played up in the courts, costing involved parties more money and stress. This would certainly destroy the social cohesion that we are trying to foster. I feel strongly that the Government should look into the en bloc rules and look into ways to slow excessive and wasteful en bloc activity.

    OFFICIAL REPORT - 2010-03-08 · READ THE OFFICIAL RECORD

  29. Sir, Singapore’s private property market is small by both global and regional standards. Coupled with a significant number of foreign buyers and high ownership mobility, our local property market can be quite easily heated up. To complicate matters, we do have en bloc fevers from time to time that cause short-term distortions to the market. In the last few months, I have heard remarks from friends and in the community such as "just close your eyes and buy, and it would not go wrong!", or at the launches, you hear "no cheque book, no deal", or even some issuing signed blank cheques for property launches. As a result of buoyant activities, prices have moved up sharply. This was in sharp contrast to last year's COS debate where we were talking about how to help the real estate industry tide through the downturn. Despite a still sluggish economy which is recovering from one of our sharpest recessions, the property market rebounded very strongly in the second half of last year. Once again, our property market has demonstrated its highly volatile nature. Is this a case of a demand-supply mismatch? Hence, I am glad that the Government has come up with the recent cooling off measures and urge the Government to continue to watch the market closely. A highly volatile property market is unhealthy for the economy. It may result in more capital and resources being allocated to this sector and thereby depriving long-term investments in other productive sectors. I would like to ask the Minister to give his thoughts on the state of the current property market. In particular, I hope that the Minister can address the fundamental question as to whether there is sufficient supply to meet the demand in the next one to two years.

    OFFICIAL REPORT - 2010-03-08 · READ THE OFFICIAL RECORD

  30. Sir, earlier, the Minister mentioned about the many BTO exercises which resulted in a high subscription rate but also high drop-out rate. I would like to ask whether the HDB wants to review this system perhaps to see whether it is the best system to manage the flat orders, especially when we have a high subscription rate. We may send the wrong signal to the market that there is a demand in the market, and then the resale market starts to move up as well. Secondly, the Minister also mentioned that many of the applicants who dropped out said that it was not a flat of their choice. Perhaps the HDB may want to look at what is the flat of choice of many of the applicants. And then maybe through some creative or innovative design and presentation, we might be able to match their preference and then offer better choice of flats to the applicants.

    OFFICIAL REPORT - 2010-03-05 · READ THE OFFICIAL RECORD

  31. All in, I applaud the Government for not going on the populist path in its Budget offerings and resolutely work on the basics so that we can maximise opportunities in the new world environment and be the distinctive global city. Sir, with that, I support the Budget. 1.08 pm

    OFFICIAL REPORT - 2010-03-02 · READ THE OFFICIAL RECORD

  32. In the Singapore context, the budget is an investment into the future, both economic and social investments. And at the end of the day, the basic fundamental is that we must live within our means Mr Speaker, Sir, our national reserves are our last line of defence, and they serve to ensure a strong safety net that we can fall back on. In the face of a global economic meltdown last year, swift action was taken to dip into our national reserves to supplement measures to stimulate the economy. While we understand that the reserves remain strong, it is vital that the Government should continue to look at ways to re-grow our kitty. As we can see in budgets of the last few years, NII and NIR are our crucial balancing items in the budget. Given our small and open economy as well as our growing and greying population, strengthening our national reserves is imperative to adequately "capitalising" the country's balance sheet. For a little red dot like us and to remain as a compelling destination for quality foreign investments, we need to maintain our high ratings – our AAA sovereign ratings – as well as demonstrate our ability to maintain a stable Singapore dollar, in addition to the other economic and security pre-requisites. Having a strong balance sheet will allow us to fulfil these objectives. As recent global events have shown, juggling economic growth with fiscal prudence is nothing short of a high-wire balancing act. While we may never be able to avoid the external factors, building a resilient economy backed up by solid financials is the best, if not the only way, to ensure that we are poised to take a beating, and bounce back, when – not if – it comes.

    OFFICIAL REPORT - 2010-03-02 · READ THE OFFICIAL RECORD

  33. Another area which I hope the Government would send a clear signal to is the property market. A volatile and sharply increasing property sector is not conducive for the healthy growth of the economy. It also has direct impact on business costs. In particular, I hope the Government can pre-empt another emergence of the en bloc fever. Excessive en bloc activities could cause distortions to the property market and add volatility in the short term. Besides, en bloc sales, if too widespread, can be harmful to the environment and waste much of our precious resources. Hence, I believe the visible hand of the Government here can do some signaling to our market. Finally, as parliamentarians scrutinising our financial budget, it is worth taking a quick look at the economic woes the European countries now face and remind us of the importance of prudence. Take, Greece, for example, currently in the throes of its worst economic crisis. Years of unrestrained government spending, cheap lending and a severe lack of financial checks and balances – all designed to spur growth – have instead landed the world's 27th largest economy with a budget deficit of 12.7% of its GDP. This is more than four times the Eurozone allows. And its debt is at 112% of its GDP. The Greece government is planning a package of austerity measures which include freezing public sector pay, raising taxes and a rise in the petrol tax. It also intends to raise the retirement ages of their public employees to save the cash-strapped pension system. This has resulted in turmoil as the public sector workers are planning a series of nation-wide strikes. Sir, we need to exercise prudence especially in good times.

    OFFICIAL REPORT - 2010-03-02 · READ THE OFFICIAL RECORD

  34. Top tier Singapore companies were able to grow their overseas revenues far better than the smaller players, despite deeper and more direct exposure to the global recession. So, here, I think the size does matter to a certain extent. And I also agree with the Finance Minister's new incentives to encourage more M&As among the local enterprises. Today, the economy is recovering with minimal slack. Unemployment remains at a low level of about 2% and bottlenecks remain in many parts of the economy. Externally, commodity prices are on the uptrend again with oil prices today at around US$76 per barrel. Coupled with the impending increase in foreign worker levy, there is this real risk that business cost will rise sharply again in the next one to two years. The investments in productivity growth, which would take some time to bear fruit, would not help improve the situation in the short term. Here, I hope that the Government will keep tab on the costs of doing business and our cost competitiveness even as the economy recovers. In this transformational phase of the economy, many of the businesses may be incurring short-term adjustment costs as well as managing the rising input costs as the economy recovers. Our own history provides us with some learning lessons. In the 1980s, Singapore was enjoying unprecedented economic growth which, more often than not, was entrenched in the double-figure zone. However, rising business costs took away our competitive edge, as some businesses struggled with high overheads and low profit margins. We had to respond then, and it was a painful time for all. Wage freezes were introduced, tax cuts were mandated and there were sharp reductions to CPF contributions. So we must not allow history to repeat itself.

    OFFICIAL REPORT - 2010-03-02 · READ THE OFFICIAL RECORD

  35. While I am happy to note that ESC has adopted a number of suggestions submitted by the GPC, it has not adopted our suggestion to set up a national investment agency, specifically mandated to grow new industry champions like the way we build SIA, SembCorp, Keppel and so on, 30 to 40 years ago. We could leverage on our strengths and advantages. We have the capital, we have the talents and we have the infrastructure and the system know-how for new industry champions to emerge. Sir, I want to repeat what I have said in last year's parliamentary sitting which is that we should target to nurture and develop between three and five global brand names, similar to the likes of SIA in the next 10 to 15 years. Take the example of CapitaLand. It is a great success story. CapitaLand is now one of Asia's largest real estate companies and exporting real estate services overseas. While they have significant business presence in several growth cities, their head office remains deeply rooted in Singapore. They serve as the queen bee in many of their overseas venture; bring along many of the local brands into their shopping malls they operate. Mr Liew Mun Leong, its CEO, despite being an ex-civil servant, does not stop thinking entrepreneurial and taking calculated business risks. Data has also suggested that large companies have done better in their internationalising effort when compared to smaller companies. According to the latest Singapore 1000 (S1000) rankings published by the DP Information Group, total annual revenue generated by the top 1,000 local companies in 2009 was $1.7 trillion, an increase of 11.1% over the previous year. Yet, the total overseas revenue of the top 100 biggest companies rose even more – a respectable 17.9% to hit $205 billion.

    OFFICIAL REPORT - 2010-03-02 · READ THE OFFICIAL RECORD

  36. As an export-dependent price taker in the global marketplace, we see strong growth when consumption and spending in major economies such as the US, Europe and China turn euphoric. But when a global downturn like the one we saw last year hits our shores, our GDP takes a sharp hit and we are inevitably swallowed by the tide. So, if there is a single takeaway from this recession, this has to be that we need to build greater economic resilience. And how do we do so? SMEs are important part of our corporate ecosystem. They are like the lubricant of the local corporate ecosystem and seizing business opportunities big or small within the economy. However, we do not have a healthy spread of local companies of different sizes. We have a large base of SMEs with sales turnover of $100 million and below; numbering about 160,000. However, beyond the $100-million mark, the number of companies dwindled to only about 530. There is clearly a need to grow more companies to join the ranks of those above $100 million. There is also clearly a need for more companies to join the rank of the very large companies who would be industry leaders in their own right. Having a strong base of our own very large companies, rooted in Singapore, gives us a bigger handle of our own economic destiny and, hence, greater economic resilience. These companies employ our skilled and productive workers, utilise our infrastructures and real estate, pay returns on our capital and, most importantly, call Singapore their home.

    OFFICIAL REPORT - 2010-03-02 · READ THE OFFICIAL RECORD

  37. As the Finance Minister had highlighted in his Budget statement, productivity levels in our larger sectors are about 60% that of the global leaders. This means that even if we were to achieve 2% to 3% productivity growth for a decade, we are probably just getting near to the leaders, assuming they are in a standstill. It puts us in the game but we are just playing catching up. A comparably skilled and productive workforce while essential does not guarantee our long-term livelihood. Potential competing economies that are behind us now may catch up and give us a run for our money. So while we need to narrow the productivity gap with the leading economies, we also need strong and globally competitive companies of our own, where skilled and productive workers can value add and be gainfully employed. Hence, I support the strong measures to develop the capabilities of our SMEs. The ESC has set an ambitious target – doubling the number of local enterprises with revenues of over S$100 million within the next 10 years, from 500 to 1,000. It may seem a tall order, but certainly not an unattainable one. Generous measures announced in the Budget, such as taking on the role of co-investors to grow local private companies and offering tax deductions to angel investors that nurture start-ups, will go a long way in helping companies build capabilities and access much-needed patient capital. I am also glad that Government has set up the Local Industry Upgrading Programme (LIUP) to strengthen procurement linkages between MNCs and local companies. In case the Finance Minister may not know, this is one suggestion that I had put forward in my speech in Parliament during the debate on the President's Address.

    OFFICIAL REPORT - 2010-03-02 · READ THE OFFICIAL RECORD

  38. To achieve better clarity, we should even explore the possibility of having "M&As" among these agencies, just so that they can be more productive and be more focused on the scheme. Also, I am glad that the Government's assistance has not left out the individual man in the street, especially the older and low-wage workers. As we climb the skills ladder and ramp up towards an advanced economy, there will be a segment of Singaporeans who may not be able to catch up. Drawing on experience from other economies, we are likely to see higher structural unemployment. While I am heartened by the enhancements to WIS and WTS, I hope that the Government can continue to strengthen the safety net in a targeted manner so as to mitigate any social fallout. While I understand the reason for raising foreign worker levies, we need to be mindful of the unintended consequences. For example, we would not want our increased levies to lead to the so-called "race to the bottom" phenomenon. With higher levies, businesses may opt to pass the hike on to their customers in terms of higher prices, or to the foreign workers in terms of lesser pay, or combination of both. The former will increase business costs while the latter may lead to quality foreign workers shying away from Singapore, and we may end up with the bottom rung of the foreign workforce in Singapore. To spur productivity further and incentivise hard work, we should also look to further reduce our income tax. I think that is something that many of the middle income group will be looking forward to, especially when they are always on the lower end in terms of receiving goodies from the Budget. So, I hope the Finance Minister will look into this again.

    OFFICIAL REPORT - 2010-03-02 · READ THE OFFICIAL RECORD

  39. If we could structurally change the character of our construction industry and significantly uplift its productivity, it would be a role model for other industries to follow. From the feedback I received on the schemes announced, the SMEs appear to prefer the more direct and immediate NPF approach, that is, the National Productivity Fund. They are hesitant about the Productivity and Innovation Credit scheme, which entails more administrative work and is less readily available as companies must first have the taxable income to enjoy the credits. Another feedback received from the GPC Resource Panel is that the word "productivity" may mean different things to different people. We need more clarity into what it means at the national level, and also communicate its definition for what it means for the company and to the individual. Beyond just announcing and establishing the schemes, more hand-holding and buy-ins may be required to encourage SMEs to think long term and to think big. This is unlike the MNCs and large corporations which will continually innovate and raise productivity standards, with or without the incentives. Put plainly, innovative culture must take root within the SMEs to do the national effort justice. The chief motivation for businesses to improve their productivity cannot be just to qualify for the schemes but, ultimately, to become bigger and profitable players. There are a number of economic agencies like IE Singapore, SPRING and EDB, plus various trade associations and chambers, which are servicing our local companies. It would be helpful to harmonise both the existing and the new schemes across the agencies and organisations to make it simpler for firms to seek help and seek financial assistance.

    OFFICIAL REPORT - 2010-03-02 · READ THE OFFICIAL RECORD

  40. Accepting a slower growth rate 3% to 5% going forward is a recognition of this constraint. Yet in opting for moderate, all-inclusive growth, I believe this Government has made the right choice. Making fundamental changes may mean that we are unable to pluck all the low-lying economic fruits in the short term, but it can only propel our nation towards greater heights in time to come. The key word that stands out in this Budget is productivity, and I support the Government for the numerous measures and schemes to maximise the potential and performance of our workers and companies. The ESC report recommended that the Government introduce strong economy-wide fiscal incentives for companies to invest in productivity enhancement and innovation. The $1.1 billion per year over five years to help enterprises and workers raise productivity will amount to about around 0.4% of our annual GDP. Given that raising productivity is the key centerpiece of this year’s Budget and its strategic importance in the economic race, I was a little disappointed with the size at 0.4% of the GDP. I am not sure if this qualifies as a strong economy-wide fiscal incentive as the ESC has recommended. Nevertheless, this is perhaps only the start and I tend to believe that there would be more upside adjustments as we implement them, as in the case of Workfare and the other Government measures that are introduced. I applaud the Government for the creation of the National Productivity Fund (NPF), in particular, dedicating about $250 million out of the first $1 billion to raise productivity in the construction sector. This sector rightly deserves top priority, given its dependency on foreign workers. In fact, construction may well be our test case.

    OFFICIAL REPORT - 2010-03-02 · READ THE OFFICIAL RECORD

  41. Sir, compared to last year’s extraordinary $20.5 billion Resilience Package, this year’s Budget would appear somewhat ordinary, or some would say, "extra" ordinary. The feedback from our GPC colleagues when we met the business sectors ranged from mild positive to negative. Similarly, the feedback I received from the ground has also been less enthusiastic compared to previous Budgets. Depending on your standpoint and the time horizon in question, the likeability of the Budget differs a great deal. I will touch on some of the feedback I received later. Simply put, this Budget is about going back to basics. It has set out to tackle the root cause of our supply side structural weakness, by focusing on the basic factors of our production – labour, land and capital. And if we get it right, it will significantly upgrade our economy, catapult us towards the premier league of economic powers and enhance our long-term survivability. This Budget and the Economic Strategies Committee (ESC) report also confirm that the Singapore economy is now in the mature phase of growth. What this means is that as a country, we now need to weigh the benefits of economic growth against non-economic factors such as social cohesion, quality of life, environment, and so on. In economics, there is this textbook term called "efficient frontier". In essence, if you are not on this frontier, one can grow the economy without significant social impact. However, when you are on the frontier, then it will entail having to make trade-offs between economic benefits and social costs. Singapore, I believe, is already on the frontier. Gone are the days where we can just floor the accelerator and pursue economic growth at full speed.

    OFFICIAL REPORT - 2010-03-02 · READ THE OFFICIAL RECORD

  42. Sir, I would like to ask the Parliamentary Secretary whether he agrees with me that in the HDB estates' situation, it tends to be a small minority of culprits that is the root cause of this high-rise littering. Hence, would the Ministry, together with the other agencies, want to be more targeted, for example, have step-up surveillance measures on some of these possible repeat offenders, enforcement as well as counselling of these repeat offenders?

    OFFICIAL REPORT - 2010-01-11 · READ THE OFFICIAL RECORD

  43. Would the implementation of this new EOI standard open the door to reviving negotiations with the US and increase the prospects of entering an agreement with the US? Finally, in a way, this financial crisis and recession have hastened these developments. The various corporate bailouts and economic stimulus measures have left many governments with huge fiscal deficits. These gaps need to be filled quickly and hence the push by politicians in these countries to focus on tax leakages and finding ways to discourage the use of tax havens or low tax offshore financial centres. In a short span of a few months, OECD has "forced" upon a certain level playing field. We have no choice but to adjust and adapt accordingly to the new tax world. In any case, in this ever dynamic and competitive environment, with or without the EOI, Singapore will still need to continually find our own niches and comparative advantages to stay as the top financial centre. Sir, I support the Bill.

    OFFICIAL REPORT - 2009-10-19 · READ THE OFFICIAL RECORD

  44. This right must be highlighted to the taxpayer whenever the situation arises. My third concern is in regard to the need to regulate and monitor the information flow to avoid it falling into the wrong hands. There is this real risk that the information sought by the requesting state may be lost, leaked, stolen or misused. Such sensitive information in the wrong hands could cause damage to the taxpayer's good name, reputation and his business activities. I would like to ask the Minister whether we would require the requesting state to sign an undertaking acknowledging the duty of secrecy as well as indemnifying IRAS from any claims should this sensitive information be mishandled. With the EOI in place, the requests for such information are expected to increase significantly. So my next question is whether these jurisdictions would have the ability as well as the capacity to reciprocate when the request is made. In particular, do these countries have the administrative practices and the legal mechanism to professionally carry out the exchange of information? This was an issue raised in some forums by a few concerned jurisdictions. As Singapore is a member of the steering group in the Global Forum, we should strongly emphasise that reciprocity of EOI is an important building block. Non-reciprocity can alter the level playing field and lead to parties second guessing each other and therefore mistrust. With the EOI in place, it should smooth the path for more DTAs to be signed and therefore enhance Singapore status as an international business centre. Singapore has yet to enter into the Comprehensive Avoidance of Double Taxation Agreement with the US. I would like to ask the Minister if EOI is the stumbling block in the earlier negotiations.

    OFFICIAL REPORT - 2009-10-19 · READ THE OFFICIAL RECORD

  45. However, I do have some concerns to raise. We need to be watchful of any cases of disguised protectionism when countries seek information under the EOI. We read about reports where foreign governments when faced with daunting economic challenges would put the blame on low tax jurisdictions for their problems. In particular, it is sometimes perceived that tax benefits enjoyed by these companies, outside their home country, led to the loss of jobs and tax revenues. Foreign corporate taxpayers that are subjected to the request for sensitive information by their government will fear the loss of financial privacy and that may discourage other companies from moving offshore. How would the Government safeguard against requests for information which has this protectionist intent? My second concern is the so-called "fishing expeditions" that the Minister mentioned. The safeguards against the so-called "fishing expeditions" by the requesting party are provided for at the Eighth Schedule with the list of 11 questions. I felt that the safeguards can be made even more explicit by making the requesting jurisdiction declare that they are not on a "fishing expedition". Also, as issues related to such "fishing expeditions" can cut across different areas of Government, is there the need for the involvement of other agencies other then IRAS to ascertain that request is not a "fishing expedition"? We may want to err on the rigorous side to prevent any abuses. At the individual level, I welcome the clarity and legal security provided for by section 105J for the individuals, which essentially provides for the right of the party against whom the order is made and the information is sought to apply to the High Court to vary and discharge the order within seven days.

    OFFICIAL REPORT - 2009-10-19 · READ THE OFFICIAL RECORD

  46. There would be increasing dependence on international co-operation. And having a commonly accepted international standard on the effective exchange of information would enhance certainty and stability as countries interact and cooperate. This would not only benefit our trading partners but Singapore as well. As an international financial centre, one of our strong credentials among others is the tough confidentiality laws. This is probably one important ingredient that made Singapore a vibrant wealth management centre that it is today. So the key concern with the EOI is whether this would jeopardise financial privacy and undermine the attractiveness of our private wealth management industry. A relevant question would be whether any competing financial centres will benefit at our expense when the EOI is rolled out here. Judging by the recent successes of Global Forums to urge both OECD and non-OECD countries to substantially implement the standards, no jurisdictions which aspire to be a financial centre or commercial centre can get away with just remaining in the status quo. Coupled with the synchronised approach among the so-called Peer Review Group, in which Singapore is the Vice Chairman of the group, it is unlikely any late mover would be able to profit from these developments. For example, Hong Kong, like us, has also put forward legislative changes. In fact, there are no countries left in the list of un-cooperative jurisdictions maintained by OECD. In any case, we do not want a reputation where our banking secrecy laws will be abused to facilitate tax evasions or other crimes. The existence of EOI with our treaty partners would encourage compliance and deter taxpayers from withholding information from their tax authorities.

    OFFICIAL REPORT - 2009-10-19 · READ THE OFFICIAL RECORD

  47. Sir, I commend the Government for its swift and sensible action to amend this Act. This amendment inserts key provisions that strengthen the ability of IRAS to comply with requests for information under the Avoidance of DTAs. These legislative changes are inevitable and necessary if we do not want to be singled out by OECD as countries that are less than cooperative on the tax front. As a small and open economy that heavily depends on international trade, services and global investments to sustain our economic livelihood, the ramifications are serious if Singapore is being categorised as an uncooperative tax regime. Since the publication of the grey list at the G20 London Summit in April, the number of jurisdictions in the list has acted equally fast to amend their law and implement the exchange of information (EOI). Like Singapore, countries such as Switzerland, Belgium and Luxembourg have no choice but to expedite the implementation of the exchange of information. While getting out of the grey list may be the key motivation for this amendment, I feel that these changes are also a step in the right direction if we want to build a respected and admired tax regime that is sustainable and healthy. Our value proposition as an international financial centre cannot be based on "beggar-thy-neighbours" approach. Neither should it be at the expense of other jurisdictions’ tax policy. Rather it should be built on the quality and expertise of our financial institutions as well as the strong and fair legal system that we have established. In today's environment where business transactions are increasingly international in nature, tax authorities around the world face greater challenges to enforce cross border tax laws.

    OFFICIAL REPORT - 2009-10-19 · READ THE OFFICIAL RECORD

  48. Sir, I would like to move away from prices to quantity. I like to ask the Minister whether are there enough new flats to meet the demand as well as the preference of first-time flat buyers. And in HDB or MND's view, whether the current waiting time is acceptable and can it be further shortened. Secondly, will HDB build new flats in mature or more popular estates so that new flat buyers can stay near their parents? And also, are there ready-made flats that HDB can sell to these soon-to-be-married couples?

    OFFICIAL REPORT - 2009-09-14 · READ THE OFFICIAL RECORD

  49. We have raised the quality bar – the admission criteria for S-Passes. This is important as part of our overall strategy to upgrade the quality of our workforce. We have provided training and upgrading opportunities for our local workforce. For foreign workforce, we also have to continue to enhance the quality by raising the entry bar, by raising the qualification that is needed to be granted S-Passes. So through these various measures, we will strike a delicate balance between foreign workers and local workers to make sure that the foreign workforce in our midst will continue to contribute and augment our local workforce so that we can support economic growth in the long term. JOB VACANCIES IN THE CIVIL SERVICE (Number of applications and new hires) 7. Mr Seah Kian Peng asked the Prime Minister in light of the Civil Service's announcement that it will be looking to fill 18,000 jobs in the next two years, whether he will provide an update on the number of new hires in the public service. 8. Mr Christopher de Souza asked the Prime Minister if any of the 18,000 public sector jobs to be created are already available and, if so, (i) what publicity campaigns have been conducted to raise awareness of these job vacancies; (ii) how many of these jobs have been taken up; and (iii) how many people have applied so far.

    OFFICIAL REPORT - 2009-07-20 · READ THE OFFICIAL RECORD

  50. Sir, the financial and social impact faced by the unemployed PMETs is not any less dire compared to the low skilled workers. I would like to ask the Minister whether the Ministry will review the criteria for awarding of the training allowance under the SPUR, in particular, doing away with using the simple cut-off of the "A" level qualification to allocate the training allowance. And, secondly, relating to PMETs, can the Minister shed some light with regard to the Ministry's efforts to tighten controls on the S-Pass and whether, in the Minister's view, a more discerning S-Pass criterion is needed to improve the employment prospects of Singaporean PMETs in this downturn? Mr Gan Kim Yong: Sir, with regard to the training allowance for workers who have undergone training, the purpose of the training allowance is not really to address the daily cost of living of the unemployed. We have other programmes, like ComCare Fund, and for the individuals, we have also provided GST credits and various rebates to help them deal with their cost of living. The main purpose of the training allowance is to help the trainee overcome some of the costs related to the training, like transport cost, and so on. I think it is important for us to bear that in mind. For PMETs who are going for longer-term courses, especially the various conversion courses, many of them, as I mentioned in the example I quoted, do receive a monthly stipend even if they are PMETs. As the Member pointed out, those who have more than "A" level qualifications, and on a diploma course, they will also be granted a stipend of up to $1,000. So the programme is in place. With regard to the controls on S-Pass holders, I mentioned earlier this year during the COS that we are enhancing the quality of S-Passes.

    OFFICIAL REPORT - 2009-07-20 · READ THE OFFICIAL RECORD