Lim Hng Kiang
Singapore
“The company has made commitments to recycle the ash, and as for renewable energy, the gasification project is not an energy project, it is not a generation company (genco). It is to produce hydrogen and carbon monoxide or, essentially, carbon. Because as feedstock to the petrochemical sector, you need more C and more H2.”
“The Government will continue to recover the IIA awarded if the company fails any conditions or breaches the legislative amendments. I would like to highlight that there are no errant cases in the last five years for IIA and the current amendments are, therefore, not reactionary in nature, but are being made for legislative clarity.”
“In addition, the IIA scheme will be extended till 31 December 2022. Clauses 10 to 13 give legislative effect to this change. The remaining legislative changes arising from our periodic review of the income tax system are either administrative or technical in nature.”
“Data on household and individual savings rates by income groups are not available. However, data on the aggregate level of household financial assets can be obtained from the Household Sector balance sheet compiled by the Department of Statistics.”
“The aggregate level of financial assets owned by Singapore’s household sector6 in each of the past five years is provided in Table 1 below. Data on the amount of financial assets owned by households and individuals in the different income percentiles is not available.”
“The Second Review of the Comprehensive Economic Cooperation Agreement (Second CECA Review) is ongoing. The review is taking some time as both countries have our respective interests to work through, such as in the area of labour mobility. Our agencies regularly engage Indian counterparts to work through issues collaboratively.”
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“Sir, between 2000 and 2004, the number of small and medium enterprises (or SMEs) increased by about 13,000. Today, we have some 133,000 SMEs in Singapore, which make up 99% of all our enterprises. About 94% of our SMEs belong to the service and commerce industries, with the remaining 6% in manufacturing . SMEs contribute some 42% of our GDP and employ 56% of our workforce. Capability upgrading The Member asked about the pressing needs of our SMEs and what we are doing to help them. A key concern facing our SMEs is the increase in global competition, especially from lower-cost competitors offering higher value-added activities. In this respect, we have various programmes, at both the industry and the enterprise level, to help our SMEs upgrade their capabilities and move up the value-chain. At the industry level, we have the Local Enterprise and Association Development, or LEAD programme, which supports industry development efforts by able and willing industry associations. At the enterprise level, we have introduced the Capability Development Programme, which covers areas such as process improvement, strategic alliances, and certification of products and processes to international standards. Companies can also leverage on the Technology Innovation Programme to strengthen their technology innovation capability and capacity. The programme provides SMEs with the expertise, infrastructure as well as the financial support for their research and other innovation related projects. Financing The second area that we help our SMEs is in financing. Access to financing, as we all know, is a key concern of our SMEs.”
“Sir, we awarded the IR to the Malaysian company entirely on the merits of their proposal. And we hope that our neighbours - Malaysia, Indonesia, whichever country - will welcome Singapore investors on the merits of their investment proposals. I think this is the best way for an enduring and sustaining relationship. Of course, with more economic contacts with our companies, the economic linkages and the people-and-people linkages will help facilitate relationship between us and our neighbours. SMALL AND MEDIUM ENTERPRISES 10. Mdm Ho Geok Choo asked the Minister for Trade and Industry (a) what is the increase in the number of small and medium enterprises (SMEs) in the last five years and which industries do they belong to; (b) what contributions do they make to the Singapore economy; and (c) what are some of the more pressing needs of these SMEs and how are they being helped.”
“Sir, the obligations of the Integrated Resort (IR) operators are clearly outlined in the Requests for Proposals and the Development Agreements. The two IR operators are contractually bound to deliver the overall IR concept and all the components of the IR as detailed in the accepted proposal. Any changes to the accepted proposal would require the Government's approval. Furthermore, the IR operators must start construction within three years and complete the construction within eight years from the date of the signing of the Development Agreement. They also have to incur 100% of the development investment within three years from the first issuance of the casino licence, or eight years from the date of signing the Development Agreement, whichever is earlier. If the IR operators fail to meet their contractual obligations, the Government reserves the right to forfeit the security deposit, which is 5% of the development investment, or about $200 million for each IR. If necessary, the Government can also repossess the IR land. Let me assure Members that while we have put in place robust safeguards, the IR operators themselves have every incentive to complete their projects on time and on budget. The two IRs have an exclusivity period of only 10 years, and every month of delay translates to not just substantial revenues forgone, but also interest costs incurred for the IR operators. The cost of delay will thus be high especially given the large investments involved. The Government will continue to closely engage with the two IR operators to ensure the successful implementation of the IRs.”
“They are located in the newer estates, such as Jurong West, Sengkang and Punggol, as well as established towns like Bukit Merah, Queenstown and Toa Payoh. The stock of unsold flats has declined from 9,000 units in October 2005 to the current level of 6,000 units. The main mode of sale for HDB’s unsold flats is via the Walk-in Selection (WIS) system, under which eligible buyers can book any flat on offer on a first-come-first-served basis. HDB also offers surplus SERS replacement flats for sale under its Balloting Exercises. To reach out to potential buyers, HDB actively markets the flats by announcing the sales exercises through press releases, as well as through newspaper advertisements and other media, such as TV Mobile, radio and outdoor advertising. WRITTEN ANSWERS TO QUESTIONS EN BLOC SALES 1. Mr Chiam See Tong asked the Deputy Prime Minister and Minister for Law as regards en bloc sales of private properties, what is the percentage of Singaporeans who have gained from en bloc sales when compared to permanent residents and foreigners, for the years 2000 to September 2006.”
“Businesses can start off serving the domestic market and later expand to cater to the global market. A recent example would be our businesses in water technologies which are beginning to take off and expand their business beyond Singapore. Regardless of how one chooses to ‘slice and dice’ the economy, one certainty is that it will continue to undergo restructuring as we move up the value chain in a globalised economy. Currently, our economy is doing well. We now have a strong labour market with low unemployment. Last year, more than 110,000 (113,300) jobs were created, the strongest gain in eight years. This year, within the first nine months, more than 120,000 (123,100) jobs have already been generated. We are able to enjoy these because we have been prepared to undertake the necessary restructuring and allow the economy to ride the uplift in a favourable global economy. Going ahead, we will continue to help Singaporeans to acquire the skills required by new economic activities, with the ongoing retraining and job redesigning efforts. We will then remain in a strong position to take advantage of the tide of opportunities presented by globalisation. More Singaporeans, including those in more domestically-oriented industries, will be able to enjoy the fruits from these opportunities. HDB FLATS (Unsold flats) 25. Dr Muhammad Faishal Ibrahim asked the Minister for National Development in view of the recent months' strong interest in new HDB flat launches at Tampines and Geylang Serai (a) if the Ministry could update the House on the progress of the sale of unsold flats in estates like Jurong West; and (b) what actions have been taken to market them. Mr Mah Bow Tan: HDB currently has about 6,000 unsold flats available for sale.”
“By a “dual economy”, I believe the Member for Holland-Bukit Timah GRC is referring to one where export-oriented businesses enjoy faster growth than domestic-oriented businesses. In general, the external-oriented industries catering to the global market, such as electronics, biomedical sciences and chemicals, tend to have higher and more volatile growth. In comparison, the growth of industries like retail and restaurants which are more focused on our much smaller domestic market is slower. That export-oriented industries often enjoy much faster growth than domestic industries is not a new phenomenon. Since independence, we have been attracting externally-oriented industries to Singapore. Beyond the new activities and capabilities brought by these industries, we also benefit from their growth permeating to the rest of the economy. The pace at which the economic benefits of each export-oriented industry filter to other industries will vary from case to case. The more flexible our labour markets and versatile our manpower skills are, the faster the rate of transmission will be. For instance, the growth of our electronics sector generates activity in our supporting precision engineering sector, which employs over a quarter of all local workers in manufacturing. The jobs created in turn benefit our retail and restaurant sectors, among others. In the past few years, the strong performance of the export oriented industries has brought growth to the whole economy. The retail sector provides an illustration. Reflecting the health of the sector, retail sales have been growing strongly for the past three and a half years. In any case, it is not meaningful to box up businesses in these two groups as they are not static.”
“I have read the article and I have also read the responses by different groups. As I have explained in my answer, if you do not have mandatory membership, there is a problem of free riders. People will enjoy the benefits put up by SBF but do not pay the subscriptions. This was debated in 2002 and we decided to make it mandatory. Mandatory membership is not unique in Singapore. It is practised in many countries. In these countries, they find an apex umbrella business organisation is a very useful mechanism. Next, I have explained that even though it is mandatory, we have exempted a large portion of companies, especially the small companies. Finally, I have explained that more than two-thirds of the companies pay less than $400 subscription, or less than $1 per day. So it is not a very significant financial burden on these companies to subscribe and to be members of an umbrella organisation which is increasingly providing value for its members. ESTIMATES OF EXPENDITURE FOR THE FINANCIAL YEAR 1ST APRIL, 2006 TO 31ST MARCH, 2007 (Paper Cmd. 3 of 2006) Order read for consideration in Committee of Supply [5th Allotted Day]. [Mr Speaker in the Chair] Head L - Ministry of the Environment and Water Resources”
“Mr Speaker, Sir, I have already explained that membership is mandatory. So people cannot say that they want to join or they do not want to join. At the same time, we have exempted significant groups of companies, so that only less than 10% are required to join. So companies who are in this 10% group, if they think that the SBF is irrelevant or they do not find value, then it is for them to put up a case to SBF so that they can get exemption as a class or as a group.”
“Mr Speaker, Sir, I have answered the question. I said that if the SBF decides that there should be further exemptions based on other clear criteria, then I will consider them, meaning, if the members who think the SBF is irrelevant to their needs, they should put up their case to SBF. And if there is a group of them who can demonstrate that the SBF is irrelevant and SBF also agrees, like what SBF has done previously for the small companies and companies with zero employees, then it is for SBF to put it up to the Ministry.”
“Last year, members' participation in SBF events doubled from 12,000 in 2004 to 22,000. We are told that the recent Budget 2006 briefing, organised as part of SBF's regular updates on changes affecting businesses, was attended by over 1,000 members. We encourage the SBF to come up with more such activities, services and programmes that will deliver value to its members.”
“Mr Speaker, Sir, the establishment of the Singapore Business Federation with mandatory membership was proposed by the former Singapore Federation of Chambers of Commerce and Industry (SFCCI), as a new apex organisation to represent Singapore's business interests more effectively both locally and abroad. The Government supported the Singapore Federation of Chambers of Commerce and Industry's recommendation and enacted the SBF Act in 2002. SBF membership was made mandatory as the earlier practice of voluntary membership by business chambers and associations had not been effective. The business community had remained fragmented, and lacked a strong and united private sector umbrella organisation. Compulsory membership would ensure that SBF has a strong membership base, and has the mandate of the entire business community. Compulsory membership of business chambers can also be found in France, Germany and Brazil, for example. However, only local companies with paid-up capital and foreign companies with authorised capital of $0.5 million and above are required to be members of the SBF. So a total of 136,000 small companies, 26,000 partnerships and 114,000 sole proprietorships, have been exempted. In addition, the SBF (Exemption) Order was passed by this House in 2002 to exempt all companies with zero employees. As a result, 6,000 more companies were exempted. To date, SBF has about 15,000 members or just 9.6% of all companies in Singapore. If SBF decides that there should be further exemptions based on other clear criteria and recommends them to me, I will consider them. SBF has been in existence for only four years, and we are seeing encouraging signs that more members are finding its services useful.”
“Currently, hydrogen as a transport fuel is still very costly compared with traditional fuels like diesel and gasoline. This is due to the high manufacturing cost of hydrogen-powered fuel cell vehicles, technological barriers in hydrogen storage, and start-up cost of the hydrogen distribution infrastructure. While the technology to supply hydrogen safely on a large scale is available, it is still not commercially viable. Despite its advantages in being more energy efficient and environmentally friendly, hydrogen-powered fuel cell vehicles still cost on average 10 to 20 times that of conventional vehicles. The automotive industry expects to produce commercially viable hydrogen fuel cell vehicles only 10 to 15 years from now. Similarly, hydrogen refuelling is also not commercially viable at present due to the lack of a critical mass of hydrogen fuel cell vehicles. Therefore, hydrogen fuel cell vehicles are being promoted more for research and test-bedding activity rather than for wide-scale adoption. For example, automotive firm Daimler Chrysler is currently test-bedding six hydrogen fuel cell vehicles in Singapore's tropical urban environment. BP Singapore has also set up two hydrogen refuelling stations to evaluate the commercial application of hydrogen infrastructure. Going forward, the Economic Development Board (EDB) will continue to attract investments that will reinforce Singapore's position as a global centre for test-bedding new technologies, including that of hydrogen infrastructure. APPENDICES”
“On the issue of Jurong Island, I can say unequivocally that it has been a good investment and it has been very good for Singapore. Entrepreneurship”
“Next, the other key principle is that we want to encourage the leverage of the industries and that is the reason why we target to achieve two-thirds of the research to be done by the companies, because the companies will know where the commercial potential is, and I think it is one way we can be assured that the research money will be appropriately spent, if we have the partnership with the private companies. 2.30 pm The fourth principle is that I do not think we can be very far wrong if we invest in talent. So a large part of the S&T plan is to build up our local talent, encourage our students to do PhDs and take up research as a career. Sir, with all these measures in place, I think we are well poised to go into this programme. The Government has decided to put in resources into this programme and it is our responsibility to make sure that these resources are properly spent, and that we get the best benefit out of these resources.”
“Two, it shows that some of the areas that we are collaborating in are also in areas which these agencies are interested in. But I will be concerned if we use this as a primary factor of the effectiveness of research because if we send the wrong signals to our research agencies, if they pursue this factor, then I think what they will be doing is that they will be aligning our research objectives in line with all these agencies in order to get their funding. And I am not sure this is entirely the right thing for us to do because, as a small country with competencies in different areas, we do want our research directed at different sectors. So, this ability to secure fundings from international and other national agencies is a useful way to collaborate, that we are reaching certain standards and that we are doing things right, but I would not want to make this the primary output factor. I think the main issue that we need to address, going forward, in R&D is, one, we must put in more resources, if we want to be in the game. We have to take the risk. If we are very cautious, we run the risk of losing out. Two, we want to make sure these resources are invested in the right areas and this requires both a bottom-up as well as a top-down process. The bottom-up process involves us tapping a big panel of research experts to draw upon the expertise and to understand which are the areas that we should invest in. The top-down input involves the Prime Minister chairing the Research Council so that he has an overview and that he is assured that the resources are directed at the right areas and that it is not just money chasing after a few big names or encouraging a feed frenzy.”
“I think that puts us in a very strong position, going forward, because R&D is all about talent and we need to build up our local talent to undertake R&D. Prof. Ivan Png also suggested other measures. Let me just go through some of them. He suggested using the Multi-Factor Productivity as an indicator. Prof. Ivan Png is an economist, I am not, but my little knowledge of MFP indicates that it is not really a measure of productivity alone. So the table he showed is not a measure of the low productivity of Singapore economy. If you look at the productivity parameter, in fact, Singapore has done fairly well. But when you look at Multi-Factor Productivity, this factor is really any GDP growth that cannot be attributed to changes in labour or capital inputs and so it is a very illusive concept and an illusive parameter to measure. Perhaps what we need is a research grant to see how MFP can be used as a way of measuring the competitiveness or the productivity of the economy. But I know that MFP does not specifically measure R&D output. That much I know. But how we can use MFP to measure the effectiveness of R&D, that is something that we have to study further. Prof. Ivan Png also suggested that we look at the grants that we are able to secure from overseas R&D agencies as one way of measuring performance. I think this is a valid point and, in fact, A*STAR agencies and research institutes have been fairly successful in securing fundings from other national and international agencies, such as the US National Institute of Health, the US Defence Advance Research Project Agency (DARPA), and also from the European Commission. I think this reflects well on us on several counts. One, it shows that our standards of research are high.”
“As the Prime Minister highlighted in his Budget debate round-up speech, R&D is a major effort and we are undertaking to transform our economy by building a strong foundation for our sustainable growth and competitiveness. Going forward, in a global knowledge-based economy, competition will not be simply about lowering costs but, increasingly, it is about talent and creating value. So, I think all Members are agreed that building up our R&D capability is, therefore, a crucial piece of securing our economic future. There will be risks, but it is something we have to do. I think what Members are more concerned about is how do we go about investing our R&D funds in a way that will deliver the output that we desire. If you look at R&D, and this is a very complicated subject, based on the interventions by Members, you can see that there is great difficulty in measuring the output of R&D because this is a very long term process. But we have to be bold and we have to take this step to invest heavily in our R&D effort. Basically, if you look at comparisons among various countries, it is always easier to compare the inputs, the percentage of GDP devoted to R&D or the amount of funds or resources, both the public and private sectors, put into R&D. When you start looking at output, I think the indicators are more difficult to arrive at. The easy output indicators will be, for example, the number of research scientists and engineers that are active in the country. I think, on this measure, Singapore has done well through our successive Science and Technology Plan (S&T). The number of research scientists and engineers in Singapore has progressively been increased.”
“In the evaluation, EDB will also estimate the value-added and also the number of new jobs generated as a result of these investments. As the Prime Minister indicated, as long as all these items are in the positive, generate jobs, create value-add, then we are prepared to provide EDAS and other incentives to bring in the investments. So over the last five years, EDB attracted $42.5 billion in manufacturing Fixed Asset Investments and $10.6 billion in services Total Business Spending. These investment commitments will create a total value add of $50.4 billion per year and 110,000 new jobs when fully realised. Of the 110,000 jobs created, 71% will be skilled and professional. So it is very important for us that this pipeline of investments continues to give strength to our economy, add to the value-add and help generate jobs. Prof. Ivan Png has suggested that we consider a tax revenue budget to manage revenue loss through tax incentives. As I have explained earlier, we are in a very competitive environment. We have to compete with both the developed countries, as well as with the emerging countries for such investments. Our tax incentives are also granted by tying the companies to new investments. If we had not provided these incentives, the companies could have taken their investment to competing locations. We would, therefore, not have collected the taxes to begin with. But, nevertheless, we will look at his idea of a tax revenue budget to see whether it can be used to complement our methods of evaluating the investment proposals that we want to attract to Singapore. The final question I would like to address is research and development.”
“And, therefore, their annual fees range from $300 to $400 per year, or about $1 a day. So I do not think this is a very heavy financial burden. As you know, the SBF has had only four years of operation. It is young by any standard of a business association. So I urge Members and other businesses to give SBF a chance to develop. In due course, we will do a stock-take and encourage the SBF to find ways where it can provide value to its members. Let me now turn to the question raised by Prof. Ivan Pang about the performance measures that we use to evaluate the Economic Development Assistance Scheme (EDAS) and also Mr Inderjit Singh's comment about the value of the FDIs that we have attracted to Singapore. As you know, attracting FDIs is a very important component of our investment and development strategies. Even though Singapore is a capital-surplus country we believe that the foreign direct investment into Singapore is very important because it not only brings in capital but, more importantly, it brings in technology and gives us access to export markets. The Prime Minister also explained during the Budget response that we are in a very different environment nowadays. We are competing for foreign direct investments not just with the other emerging economies but also with the developed countries as well. So the Economic Development Assistance Scheme (EDAS) is a very important tool by which the EDB uses to bring in foreign investments to Singapore. And EDB goes about it in evaluating whether the EDAS is to be used through four key indicators. EDB will look at, for manufacturing, the Fixed Asset Investments that the foreign investor is bringing in and, for services, the Total Business Spending arising from investor's commitments in Singapore.”
“So, even though the tariff saving is only a few percentage points, this has increased its margin and swayed the decision for it to expand in Singapore rather than in the US. So, overall, I would say the FTAs have added value to Singapore's attractiveness as an investment location. Let me now turn to some of the other issues raised by Members. Mr Chew Heng Ching has asked for an update of the SBF. Members will remember that the SBF was set up in 2002 to create an apex organisation to represent Singapore's business interests more effectively, locally and abroad. SBF membership was made mandatory as the earlier practice of voluntary membership by business chambers and associations had not been effective. Compulsory membership will ensure that SBF has a strong membership base, and has the mandate of the entire business community. Compulsory membership of business chambers or business associations at the apex level is not uncommon. France, Germany and Brazil also have this practice. However, only local companies with paid-up capital and foreign companies with authorised capital of $0.5 million and above are required to be members of the SBF. Small companies, partnerships, sole proprietors and companies without any employees are exempted. As a result, SBF has exempted some 142,000 companies and another 140,000 partnerships and sole proprietors. In fact, SBF has only a membership of 15,046 which constitutes just 9.6% of all companies in Singapore. So, even though we make it compulsory, through this exemption process, the membership profile of SBS only constitutes 10% of all companies. Furthermore, if you look at these 15,000 companies, about 11,500 of them have paid up/authorised share capital of less than $5 million.”
“This special unit will not only organise seminars and provide general information, but also provide the individual company with consultations, to show them exactly how they can make full use of the FTAs for the products that they are producing and exporting. I therefore encourage our businessmen to take advantage of these resources and make full use of these FTAs. Dr John Chen has also asked whether the FTAs have been successful or helpful for us in bringing investments into Singapore and he mentioned particularly the case of China. I would say that Singapore's extensive FTA networks have added to our overall value proposition in attracting investments to Singapore. In fact, when EDB officers approach the various clients, they actively market our strong network of FTAs when highlighting our strengths to potential investors. When they make client calls on the companies they will, in fact, work out what the FTAs can offer these companies and talk directly with the company executives on how if they invest in Singapore they can take advantage of these FTAs. 2.15 pm We also work with companies to identify the areas where our FTAs are able to offer a preferential edge over other competing investment locations, be they in terms of tariff savings or investment protection. And we have had some successes. Let me give you an illustration. A leading US manufacturer of oilfield drilling equipment doubled its manufacturing plant capacity in Singapore. It did so because the tariff savings from the US-Singapore FTA, combined with Singapore's logistics infrastructure and our competitive costs, made it more economical for it to manufacture here and export to the US.”
“Going forward, there are other plans to develop SEZs, both in Indonesia, in India and further afield also in Russia. If companies find that this is sensible strategy to locate in business districts and industrial estates developed by Singapore companies, then this is one strategy they can pursue. But I would be loath to concentrate all our resources just in one or two industrial estates and encourage or direct all our companies to go there. We should allow our companies to diversify and go to different industrial estates and different countries to pursue their opportunities. Let me now turn to another area which is the FTAs. So far, we have signed 11 FTAs. Mr Inderjit Singh asked exactly how our companies have benefited from the FTAs. I would say in several ways. First, the FTAs gave our companies a competitive advantage through the elimination or reduction of the tariff as well as non-tariff barriers. Second, the FTAs can help our companies gain access to emerging markets such as India and the Middle East. Finally, our FTAs contain safeguards to provide our companies with better protection when they venture overseas. This protection can include guarantees on repatriation of capital and profits, as well as investor-state dispute settlement mechanisms. But I believe we can do more. In order to help our companies take advantage of all these benefits, MTI and its partner agencies have been reaching out to the business community through various activities and programmes, eg, seminars, workshops and guide books. A dedicated FTA website has also been set up. This year, IE Singapore has established a special unit to help companies leverage on FTAs.”
“Last year, some 1,900 companies leveraged on IE's capability-building programmes, particularly in branding, design and international manpower development. It is important that companies formulate a viable market strategy before entering any new market. The Internationalisation Roadmapping Programme was launched early this year to help companies develop long-term business planning strategies as part of their internationalisation plans. The second "C" is Capital. Coupled with other inroads that we have made on supporting financing, we have also promoted the Regionalisation Finance Scheme, which is a fixed interest loan scheme. Since 2001, it has committed over $54 million in loans, benefiting some 43 companies as at end 2005. The third "C" is Connections. SMEs, in particular, need help to enter into overseas markets. To build connections, SMEs can participate in outgoing missions and fairs organised by IE Singapore as well as IE Singapore's networking platforms, namely, Network China, Network Indonesia and Network India. Companies can also tap on the International Marketing Activities Programme which supports the activities organised by trade associations and chambers, or the Pathfinder Scheme for Distribution, which helps exporters by matching them with overseas intermediaries who have extensive local business networks. Mr Lawrence Leow suggested that our SMEs can go together and find suitable locations when they go overseas. I think this is indeed what many have done, not directly through the Government but indirectly. As you know, Singapore companies have helped built industrial estates in Batam, Bintan, Vietnam, China and India. Many of our SMEs find comfort in operating in many of these industrial estates developed by our local companies.”
“The Government has instead partnered some 16 financial institutions to administer the loans to our SMEs, so that we can leverage on their market expertise as well as to foster the start of hopefully a lasting banking relationship between the SMEs and the financial institutions. This win-win arrangement has worked well so far. Over the past five years, Spring and IE Singapore have worked with financial institutions to facilitate more than $3.1 billion worth of loans to more than 12,500 companies. What the Government in fact can do is to designate more financial resources to help our local enterprises grow. This is indeed what we are prepared to do. I am happy to announce that the Government will set aside $3.9 billion over the next five years (FY2006-2010) for this purpose. Grants will take up $900 million, an increase of 35% over the previous five years. The remaining $3 billion will be in loans, and through partnerships with our various financial institutions, this is expected to catalyse more than $6 billion worth of loan financing, almost 60% more than the previous five years. So we are prepared to put more resources to support our local companies. The second area in helping our companies is to encourage them and facilitate them to expand overseas. I mentioned just now about the consortiums. Let me also briefly outline what IE Singapore is doing to help our companies go overseas. IE does so through a 3C framework - Competency, Capital and Connections. For example, last year, IE Singapore helped some 32,000 companies through its services and its activities. Let me highlight some of the key initiatives under each of these 3Cs. Competency involves helping our companies to build up capabilities so that they can compete more effectively in overseas markets.”
“For this, I would like to thank Mr Inderjit Singh and the Financing Crucible of the Action Community for Entrepreneurship (ACE) for their contributions and effort. Last year alone saw the launch of several new financing schemes. Among them is the SME ACCESS Loan to help SMEs, especially under-served enterprises without collateral or with a limited track record. To date, over S$100 million in loans have been extended to more than 400 SMEs. To spur greater angel investments, EDB has also recently launched the $30 million Business Angel Scheme. This was launched in September last year. In October last year, IE Singapore started the Trade Credit Insurance Programme, which offers premium trade credit insurance rates through the pooling of demand. The scheme has already benefited more than 270 companies with a total volume of sales insured amounting to over $45 million in just three months. We will continue to work on improving the access of our enterprises to financing. I think in PM's response in the Budget debate, he gave Members a printout of several sheets of all the schemes and we welcome feedback from Members on how to improve these financing schemes. Dr Wang Kai Yuen suggested that the Government could consider a single Government-funded institution to provide financing to the SMEs. Currently, there are already many private sector financial institutions which are providing loans to SMEs. In fact, more banks are recognising the potential of the SME market and have set up specialised teams to focus on SME customers. For the Government to set up its own SME banking or financial institution to compete against the private sector will be against the "Yellow Pages Rule".”
“I have given examples of these previously in the House of the work done by the food manufacturers and the textile and garment and furniture industry associations. I think Members would also have read newspaper reports, the most recent one by the Furniture Association of their plans to develop Sungei Kadut to improve design and to increase their export opportunities. Let me today give you another example, the Print and Media Association of Singapore. Some may perceive printing as a sunset industry in Singapore because of our high labour costs. But our printing companies have been very resilient, surviving downturns and strong competition by finding niches for themselves and moving towards high value print jobs. For example CS Graphics prints fine quality art books for key clients such as the Metropolitan Museum of Arts. Another group of local printing companies has come together, such as Fabulous Printers, COS Printers and Markono Print Media, in order to support Blackwell Publishing, one of the world's leading scientific, technical and medical journal publishers. Blackwell is drawn to our local printers because of their quality and their competitive prices, as well as Singapore's strong supply chain capabilities, which enable them to quickly distribute their journals worldwide. Some of our printers not only do the printing, but also maintain a website and fulfil the orders for Blackwell. Mr Chairman, let me now turn to specific areas where SMEs need help. The first area is financing. We have been systematically improving the financing infrastructure for enterprises by plugging the funding gaps through a mixture of loans and equity schemes.”
“For example, the EDC at the Singapore Manufacturers' Federation focuses on mainly manufacturing-related diagnostic and consultancy services, while the one at the Singapore Chinese Chamber provides comprehensive advice on doing business in China. So far, as Mr Lawrence Leow has pointed out, the Government has provided co-funding support to defray the set-up costs for the EDCs. In the longer-term, we hope that the EDCs will evolve into thriving centres for business information and knowledge exchange, sufficiently valued by the SMEs that they become an integral part of the chambers and the industry associations. The Government will thus work closely with the EDCs to help them succeed and be commercially viable and sustainable over time. Mr Chairman, the next level of our support is working with the industry associations to develop vibrant industry clusters. The industry associations know the business environment, the challenges and issues faced by the SME members much better than the Government does. Thus, by working with them and through them, we can better reach out and target our assistance to our SMEs. It was with this in mind that the Government launched the $50 million Local Enterprise and Association Development (LEAD) programme to support able and willing industry associations in spearheading industry development efforts. The LEAD programme has had very good success to date. So far, the Government has approved grants of more than $20 million to six associations in industries such as the restaurant industry, the food manufacturing industry, furniture, textile and garment, process industry and the precision engineering sector. These projects are expected to add more than S$800 million to the economy and create more than 4,000 new jobs.”
“A concrete result of this integrated, multi-agency approach is the recent launch of EnterpriseOne, which stands for "One Network for Enterprises". The portal at www.business.gov.sg is a Government-wide initiative managed by Spring in partnership with business chambers and industry associations. It enhances the SMEs' access to business information, Government e-services from more than 30 agencies, and advisory and consultative services. I urge Members to give it a try and I welcome your feedback on the effectiveness and usefulness of this portal. The second pillar of the EnterpriseOne initiative is the network of Enterprise Development Centres (EDCs) that are being set up. These EDCs are run by the various business chambers and associations, and they offer business advisory and consultancy services. Today, SMEs can visit any one of the three EDCs at the Association of Small and Medium Enterprises, the Singapore Manufacturers' Federation and the Singapore Chinese Chamber of Commerce and Industry. Mr Lawrence Leow has asked about the Government's long-term plans for these EDCs. The idea of EDCs was actually prompted by industry's calls for a consultancy or advisory panel which SMEs can turn to for business advice, be it to upgrade, expand or venture overseas. Recognising that most SMEs will not be able to afford the services of the likes of McKinsey, the Government sought the cooperation of the major business chambers and industry associations to provide guidance and advice to our enterprises and our would-be entrepreneurs. 2.00 pm As each chamber and association has a specific business focus, the EDC so formed will similarly have its own focus and area of specialisation.”
“This enables the SBIC to present an integrated team capable of delivering complete solutions, thereby boosting their chances of success, especially in securing larger contracts. The LIUP programme and the iPartners programme illustrate that our approach to developing our SMEs is a painstaking one, involving sector by sector, consortium by consortium. We cannot just wave a magic wand and every SME will be helped. Mr Inderjit Singh proposed establishing a Local EDB, while Dr Wang Kai Yuen suggested also centralising help to the SMEs. I remember reading in the newspapers that Dr Ong Chit Chung, during the Budget debate, had said that SMEs were like Cinderellas and called on the Government to send in a Prince Charming to transform Cinderella into a princess. But we have 120,000 SME Cinderellas in all shapes and sizes, and they all wear different sizes of glass slippers. They range from our neighbourhood stores, to bigger names like Osim, Inter-Roller and HTL. It is hard to imagine that a single agency can be a Prince Charming, with the full breadth and depth of sectoral knowledge and domain expertise to fully cater to all our SMEs' needs. For example, we need BCA's involvement to help our SMEs in the construction and renovation sector; IDA's help for IT and media development; and WDA's help for workforce upgrading and retraining. Hence, the more sensible approach of developing our SMEs is to adopt a "whole-of-government" approach rather than a single agency. What we have done is to appoint Spring as the overall champion for SMEs. Spring will leverage on the strengths and expertise of the other agencies to provide holistic and integrated services to our SMEs, in line with the vision of "Many Agencies, One Government".”
“Not only that, it has also given rise to a huge electronics international wholesaling and trading cluster in Singapore, creating more business opportunities for additional local companies. This same story is repeated in our chemicals, transport engineering and biomedical sciences (BMS) clusters. Increasingly, we are seeing the spill-over of such linkages across clusters. For instance, the local precision engineering industry, which started off supporting the electronics industry, is now also serving new growth areas like the medical technology, aerospace and automotive industries. The second suggestion put up by several Members, such as Dr Tan Boon Wan, Mr Inderjit Singh and Mr Lawrence Leow, is how to help our companies go overseas. They have suggested two approaches: (i) by banding together, such as through consortiums; and (ii) Mr Lawrence Leow suggested going together, also as a cluster, in the same location. This is something that IE Singapore fully supports. By banding together, our companies increase their chances of success. Through the iPartners programme, IE encourages the formation of strategic alliances among our local companies, both the large and the small enterprises. Last year, for example, IE supported 12 new alliances, comprising 60 companies, which are expected to generate over S$415 million in overseas sales. One such alliance is the Singapore Building and Infrastructure Consortium (SBIC). Led by SembCorp Engineers and Constructors Pte Ltd and DP Architects Pte Ltd, the consortium is targeting the Middle East market. Collectively, the 14 consortium members represent the complete value chain for the building and construction sector, from master-planning, engineering, consultancy, construction to procurement.”
“One such platform is the EDB's Local Industry Upgrading Programme (LIUP), where MNCs form strategic partnerships with their SME suppliers and other companies. It is a win-win partnership. MNCs can build up a strong supplier base supporting their requirements, while the SMEs can avail themselves of the MNCs' technical and managerial expertise to upgrade and be more competitive. Over the last five years, the LIUP has assisted some 670 local companies. One good example is Baxter Healthcare SA and its group of local suppliers. Baxter manufactures medical products, such as intravenous sets and renal pumps. Under the LIUP programme, Baxter has worked to develop the suppliers' capabilities through knowledge transfers and promotion of quality standards. Last year, for example, it conducted two training sessions for 24 of its local suppliers to equip them with the ability to supply quality predictive tools to streamline their manufacturing processes. As Members will remember, this is how we built up the electronics industry over 30 years. The MNCs provided the base that led to the development of the local precision engineering industry, which comprises many SMEs serving the tooling and component needs of the MNCs. Some of our SMEs later grew and internationalised, such as Unisteel and Seksun. Others became contract manufacturers, such as MMI. The vibrant local precision engineering industry in turn attracted more electronics MNCs, and further strengthened our electronics cluster. The supply chain management for electronic products gave the logistics sector a boost, with several SMEs growing to become sizeable regional logistics players, such as Accord Express Holdings.”
“Mr Chairman, first, let me thank Members for their very many insightful comments and suggestions. Many Members have spoken about how we can help our local enterprises, as well as the importance of research and development (R&D). These are indeed two areas that will strengthen our competitiveness in the coming years, and where we will be giving more emphasis over the next five years. I would also like to divide the issues raised into two levels. At the macro level, Members have suggested ways to improve our competitiveness and adjustments to our economic policies. I think all of us agree that the Singapore economy has recovered and the prospects are positive. We are ranked very high in terms of competitiveness, effective tax rates, ease in doing business, quality of infrastructure, and our connectivity. We also have a strong pipeline of investments, our trade growth is robust and our tourism receipts are growing. Furthermore, with our focus on R&D and investment in our talent, I am confident that our competitiveness would be reinforced. But, at the second level, I sense that Members would like to see how our economic policies and programmes can be effectively implemented to help our companies grow and create jobs. I agree completely with Members. We must ensure that our strong GDP is translated into growth opportunities for our companies, that more FTAs mean more export opportunities, and that higher R&D spending results in technology upgrading in our companies. Let me elaborate as I respond to the comments raised by Members. First of all, Dr Ahmad Magad has suggested a platform for the MNCs and SMEs to regularly meet and interact. I agree with him that we should strengthen the economic linkages between the MNCs and the SMEs.”
“Mr Speaker, Sir, the Member raised two questions, but I will take them in a general context. In general, we have trade associations and business associations set up to help its members. Sometimes, they venture into statements which talk about prices of their services. This is a generic issue and we will be looking at this whole issue of associations giving guidelines to their members on prices of their services. SCHOOL BUS FARES 3. Assoc. Prof. Ong Soh Khim asked the Minister for Transport whether his Ministry will request the Singapore School Transport Association to periodically and extensively publish the detailed breakdowns of the components that constitute the monthly school bus fares charged by the school bus companies under this Association so as to enhance transparency in the frequent requests for fare adjustments. 4. Assoc. Prof. Ong Soh Khim asked the Minister for Transport whether his Ministry has plans to stipulate that the Singapore School Transport Association submits future school bus fare increases to the Public Transport Council for approval, similar to the requests for transport fare increase made by the public transport providers.”
“Mr Speaker, Sir, the Competition Commission of Singapore has received two complaints since 1st January 2006, when the enforcement provisions of the Competition Act came into force. The complaints were filed by consumers and members of the public. The Competition Commission is currently looking into these complaints, establishing the facts of the case, the nature and details of the alleged agreement or conduct and its effect on competition. The Commission is unable to reveal more information as all case information must necessarily be kept confidential during this stage when it is still conducting its examination.”
“It also proposes that ITU establish a working group to study and recommend solutions for the development of a global emergency access system, including the adoption of the global emergency number. Jamaica's proposal will be discussed when the ITU Study Group meets in May this year. Amongst the many issues that need to be addressed include the choice and format of the proposed emergency number. Today, countries that have configured their national numbering and dialling plans and technical networks around their own emergency number may not be prepared to align to an international standard number if it is different from theirs. Some countries are also constrained by the availability of numbers, which are a scarce national resource and need to be managed judiciously. Operators will need to consider the technical and commercial implications of changing numbers. Regulators must consider appropriate public awareness campaigns to educate the citizenry on the changes and to enforce the change worldwide. Realistically, we cannot expect a swift international consensus on the matter given the wide impact on the global community. Singapore will certainly consider participating in the deliberations of the ITU Study Group in May this year. We hope to contribute to the effort to build international consensus on a common emergency number.”
“Closer to home, Indonesia is using "112", the Philippines "911" while Malaysia has adopted "999". Singapore has adopted "999" as our emergency service number. In 1998, with the growth of mobile technology, a public-private sector initiative, comprising standards organisations and mobile phone companies from all over the world formed the 3rd Generation Partnership Project (3GPP). The aim was to cooperate for the production of a complete set of globally applicable technical specifications for the 3rd Generation Mobile systems. One of the technical specifications that came out of this initiative was the use of "112" as an international emergency number for GSM mobile phone networks. This means that GSM mobile phone users who make calls to "112" will have their calls redirected to the local emergency telephone number, if one exists in the country they are in. This is valuable for foreign travellers, who may not know the local emergency number. Singapore is a member of the 3GPP consortium. Today, our mobile networks support both the "112" and the "911" international emergency number. This means that foreign travellers in Singapore with roaming hand phone facilities can dial either the "112" or "911" emergency numbers to reach an Emergency Call Centre in Singapore. In the longer term, a single global emergency number is desirable. Hence, the ITU is now studying the feasibility of a single global emergency number based on an initiative proposed by Jamaica last year. Jamaica had proposed the adoption of a three-digit non-geographic number "112" as the global emergency number to be dialled anywhere in the world, in fixed, mobile and nomadic access modes to reach the local fire, police, medical and ambulance and coastguard emergency services.”
“Mr Speaker, as I mentioned in my reply just now, the Sentosa Development Corporation regularly reviews the beach gradient to make sure that it remains safe for beach-goers to go to. The lagoons are part of the open sea and are subject to the various tidal wave conditions. So, when people swim at the Sentosa beaches, they must realise that they are actually swimming in the open sea. In Singapore, there is an average of 40-50 drowning incidents along our coastline. Sentosa beaches are part of this coastline. Beach-goers should take all precautions when they are swimming in the open sea. ASIA-PACIFIC ECONOMIC COOPERATION AND INTERNATIONAL TELECOMMUNICATIONS UNION (Adoption of common emergency telephone number) 2. Prof. Ivan Png Paak Liang asked the Minister for Information, Communications and the Arts if he will consider adopting, as an action item for the Asia-Pacific Economic Cooperation (APEC) and the International Telecommunications Union, a common emergency telephone number throughout APEC and the world respectively. The Senior Minister of State for Information, Communications and the Arts (Dr Balaji Sadasivan) (for the Minister for Information, Communications and the Arts): Mr Speaker, Sir, the development of emergency telephone numbers has not been internationally coordinated. Historically, the International Telecommunications Union (ITU), which is the United Nations specialised agency for telecommunications, left the assignment of emergency numbers to national administrations. As a result, each country decides on its emergency number to facilitate public access to emergency services. For example, the European Union has adopted "112" as its emergency number, while the USA and Canada have "911".”
“However, it is not possible to comprehensively and systematically track all lost investment commitments as we are a free and open economy. Hence, this information requested is not available. SCHOOL DROPOUTS (Causes and prevention) 6. Dr Amy Khor Lean Suan asked the Minister for Education (a) what is the number of school dropouts for each year starting from 2000 and broken down by primary, secondary and Institute of Technical Education levels as well as by race; (b) what are the key reasons given by students for dropping out of school; (c) what intervention programmes do the schools and ITEs have to minimise dropouts; (d) how successful have these intervention programmes been; and (e) if the Ministry is looking into new programmes to help prevent dropouts.”
“The main performance indicator that EDB tracks for the manufacturing sector is the level of manufacturing fixed asset investment (FAI) commitments from investor companies. EDB releases this investment commitment data through their annual Year-In-Review press conferences held every January. Please see Table 1. Table 1: Manufacturing FAI Commitments by Industry ($ billion) 1990 1991 1992 1993 1994 1995 1996 1997 Electronics 1.0 1.2 1.3 1.2 1.5 2.6 3.5 3.8 Chemicals 0.7 0.6 1.0 1.1 2.7 2.6 2.7 2.8 Biomedical Manufacturing 0.0 0.2 0.1 0.4 0.0 0.2 0.3 0.2 Precision Engineering 0.4 0.5 0.7 0.6 0.6 0.7 0.7 0.8 Transport Engineering 0.2 0.2 0.2 0.3 0.6 0.3 0.3 0.4 General Manufacturing Industries 0.2 0.2 0.2 0.3 0.4 0.4 0.6 0.5 Total 2.5 2.9 3.5 3.9 5.8 6.8 8.1 8.5 1998 1999 2000 2001 2002 2003 2004 2005 Electronics 3.0 3.3 4.4 4.6 4.6 4.2 4.6 4.3 Chemicals 2.5 2.6 2.2 1.9 2.0 1.6 1.6 2.0 Biomedical Manufacturing 0.5 0.3 0.8 0.9 0.9 0.9 0.8 0.9 Precision Engineering 1.0 1.0 1.0 1.0 1.0 0.4 0.4 0.4 Transport Engineering 0.4 0.3 0.5 0.4 0.3 0.2 0.5 0.6 General Manufacturing Industries 0.4 0.5 0.3 0.4 0.2 0.2 0.4 0.3 Total 7.8 8.0 9.2 9.2 9.0 7.5 8.3 8.5 [Source: EDB annual Year-In-Review press statements] The percentage of foreign investment commitments in the manufacturing sector has averaged about 75% from 1990 to 2005. But at the industry level, EDB does not differentiate between local and foreign sources as EDB aims to develop the industry as a whole. We understand "net" investment commitments to mean the gross amount of investment commitments less the investment commitments lost due to projects withdrawn or relocated during a certain period.”
“Mr Low Thia Khiang asked the Minister for Trade and Industry what is the amount of foreign investment committed to the manufacturing sector, by industry, on an annual basis from 1990 to date and what is the net foreign investment amount committed to the sector during the same period.”
“We do not have comprehensive data on the annual amount of foreign direct investment (FDI) inflows and outflows to and from Singapore in the manufacturing sector. However, the Department of Statistics keeps track of the total FDI stock in Singapore by industry sectors and publishes this data on an annual basis in its "Foreign Equity Investment in Singapore" report. Table 1 is a summary of the total FDI stock in Singapore in the manufacturing sector on an annual basis from 1990 to date. Table 1: FDI Stock in Singapore, 1990-2003 ($ million) 1990 1991 1992 1993 1994 1995 1996 1997 Manufacturing 21,985.5 22,079.9 20,464.6 22,750.1 28,824.4 35,510.7 39,444.8 47,076.4 1998 1999 2000 2001 2002 2003 Manufacturing 52,404.7 57,781.0 69,872.6 82,733.0 86,476.7 91,254.6 [Source: Singapore Department of Statistics. Note: Prior to 1998, the data comprises foreign direct equity investment (ie, paid up shares and reserves) only. From 1998 onwards, the data incorporates net lendings from foreign investors to their affiliates in Singapore.] In general, there has been an increase in the annual FDI stock in the manufacturing sector since 1990. We would like to reassure Mr Low that manufacturing continues to be strong in Singapore. Manufacturing has been consistently accounting for more than 20% of GDP since 1972. More importantly, the value-add of manufacturing (which is the direct contribution of manufacturing to GDP) grew at an average rate of 6.1% per annum from 1990 to 2004, close to the average annual growth rate of GDP of 6.3% during the same period. AMOUNTS OF FOREIGN INVESTMENTS (Manufacturing sector) 5.”
“STB has set bold targets under its Tourism 2015 vision to attract 17 million visitors and generate S$30 billion in tourism receipts by 2015. STB also estimates that 100,000 tourism-related jobs will be created by 2015. Moving forward, STB will continue to work closely with the tourism industry to target the key customer segments (ie, Leisure, BTMICE, Healthcare and Education) in our main source markets to achieve the Tourism 2015 targets. ______________________ 1 Tourism receipts comprise mainly Total Expenditure of Visitors (TEV), and include expenditure from transit passengers, foreign air/sea crew and foreign students. TEV refers to any expenditure incurred by visitors during their stay in Singapore as well as the amount they prepaid on components such as accommodation and sightseeing tours before arrival. 2 Business Travel, Meetings, Incentives, Conventions and Exhibitions. 3 Refer to the "Tourism Resource Centre" link in STB's website www.stb.com.sg to purchase a copy. AMOUNTS OF FOREIGN DIRECT INVESTMENTS (Industrial sectors) 4. Mr Low Thia Khiang asked the Minister for Trade and Industry what are the amounts of foreign direct investment inflows and outflows by industrial sectors to and from Singapore on an annual basis from 1990 to date.”
“The number of tourists visiting Singapore annually over the last 10 years and the tourism receipts1 over the same period are shown in Table 1: Table 1: Visitor Arrivals and Tourism Receipts Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Visitor Arrivals (million) 7.3 7.2 6.2 7.0 7.7 7.5 7.6 6.1 8.3 8.9 Tourism Receipts (S$ billion) 11.0 10.0 8.5 9.6 10.1 9.1 8.8 6.9 9.8 10.8 The top five source markets for Singapore in 2005 were Indonesia, China, Australia, Japan and India, accounting for 50% of total visitor arrivals. In 2004 (based on latest available statistics), Leisure visitors formed the largest category (54%) of visitor arrivals to Singapore, followed by BTMICE2 visitors (26%). Shopping formed the largest share (50%) of visitor expenditure in 2004, followed by Accommodation (22%) and F&B (14%). There have not been major changes in these broad expenditure patterns over the past five years. With the growing economies of China and India, we are welcoming more visitors from these two countries. Visitor arrivals from China and India increased at an average annual growth rate of 15.9% and 12.4% between 1996 and 2005 to become Singapore's 2nd and 5th largest source markets respectively by 2005. This is in contrast to 1996 when China and India were not among the top 10 source markets for Singapore. Visitor arrivals from ASEAN countries such as Vietnam and Philippines have also increased rapidly between 1996 and 2005, registering an average annual growth rate of 23.9% and 8.5% respectively. More details on Singapore's visitor profile can be found in the Annual Report on Tourism Statistics, 2004 (latest available) published by STB3.”
“The Government does not specifically track the number of businesses that have closed down due to poor business, these businesses' outstanding corporate or government financed loans, or their servicing of financial liabilities thereafter. Our approach is to let businesses and companies operate in an open commercial environment, with minimal Government monitoring and intervention wherever possible. From the administrative angle, the Government ensures that the process of registering or closing a business or company remains easy. While certain requirements of disclosure need to be adhered to, the procedures are kept streamlined and convenient to facilitate entrepreneurship in Singapore. Furthermore, the processes of business or company closure and formation are natural elements in any healthy economic environment. Businesses and companies may be closed down or formed for various reasons. To illustrate the economic churn, we could look at the general rates of closure and formation. From January 2000 to June 2005, 150,259 companies and businesses were ceased while 209,755 were formed. This means a total net formation of 59,496 companies and businesses over this period, or an average of 10,817 each year. I assure Members that there is a vibrant business scene in Singapore, and the spirit of enterprise is very much alive. Column No : 2123 AVIAN FLU AND INFECTIOUS DISEASES (Policy review and free treatment) 6. Mdm Halimah Yacob asked the Minister for Health with the heightened concern worldwide over the spread of infectious diseases and a possible outbreak of a bird flu pandemic, whether the Ministry will review its policy not to provide free treatment for infectious diseases.”
“Mr Speaker, Sir, as I mentioned in my answer, it is left to the retailers to exercise their own procedure and to make their own commercial judgement on the credit-worthiness of their customers. Column No : 1994 CREDIT CARD COMPANIES 19. Assoc. Prof. Ong Soh Khim asked the Senior Minister in respect of credit card companies, (a) what are the measures to (i) curb over-aggressive marketing campaigns; (ii) regulate the ready availability of easy credit; (iii) curb the aggressive tactics employed by their debt collectors; and (b) whether there are any reviews of the current insolvency practices to include mandated intermediation as part of the legal process before bankruptcy.”
“Mr Speaker, Sir, retailers who offer goods to consumers on deferred credit terms or hire-purchase are governed by the Hire-Purchase Act. The Act requires such retailers to provide material information for consumers to make informed choices. These minimally should include the effective interest rate, method of calculating balance upon early settlement and administrative charges. The Hire-Purchase Act does not restrict who the retailers can offer deferred credit or hire-purchase to. It is left to the retailers to exercise their own commercial judgement on the credit-worthiness of their customers. Similarly, the Moneylenders Act does not dictate the loan quantum that can be extended to borrowers. Commercial lenders will have to make their own risk assessment of their clients. Assoc. Prof. Ong Soh Khim: Sir, is there a regulation for these retailers and non-regulated entities to check the credit reports of these applicants before issuing this facility to them?”
“Mr Speaker, Sir, our policy on academic freedom and our policy to encourage rigorous policy debate and to encourage a spirit of questioning in Singapore, ie, in schools and universities, I think that is well known. Our OB markers, especially on race and religion, are also well known. Students who want to stage protests will have to follow the laws of the land. Column No : 1993 RETAILERS AND NON-REGULATED ENTITIES (Offer of deferred credit terms and unsecured credit to consumers) 18. Assoc. Prof. Ong Soh Khim asked the Minister for Trade and Industry whether there are policies and regulations to restrict (i) retailers and non-regulated entities from offering deferred credit terms and unsecured credit to consumers, especially the lower income group; and (ii) non-MAS regulated institutions from offering relatively higher credit facilities to those in the lower income group.”
“Mr Speaker, Sir, to date, we have attracted 16 leading universities from all over the world in a diverse range of disciplines to establish a presence in Singapore. These include the University of Chicago, MIT, INSEAD, the Technical University of Munich, and Waseda University. The University of New South Wales' plan to set up a comprehensive university is progressing well. When interviewed by the Australian press, Prof. Greg Whittred, President of the University of New South Wales' Singapore Campus, had expressed that they were extremely confident that academic freedom is not going to be an issue here. In the case of the University of Warwick, its Vice Chancellor, in a letter to the Straits Times on 21st October 2005, said that many in Warwick's academic community would like the University to continue discussions with the EDB which he expected would end up with Warwick having a significant presence in Singapore. In the same letter, however, he said that the academic community in Warwick was concerned with the governance and financial structures being considered for the Singapore campus. EDB will continue to work with Warwick and we welcome them as before. However, Warwick will have to assess for itself and decide for itself whether a Singapore campus fits into their plans. Warwick's decision has not affected our plans to attract leading foreign universities to establish a presence in Singapore. The EDB is in discussion with other renowned universities in the world to set up their presence in Singapore.”
“These amendments do not have any new policy positions for which public consultation are required. They are all practical changes that will enable CCS to carry out its investigative and enforcement functions efficiently and effectively. This, in turn, will help CCS fulfil its mission of promoting healthy competitive markets that will benefit the Singapore economy. 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 Lim Hng Kiang]. Bill considered in Committee; reported without amendment; read a Third time and passed. Column No : 1827 LEGAL PROFESSION (AMENDMENT) BILL Order for Second Reading read. 3.12 pm”
“The new section 66 also provides that a professional legal adviser cannot be compelled to disclose a document that enjoys legal professional privilege. This is a privilege which belongs to the client and only he can waive it by making the disclosure himself or allowing his professional legal adviser to do so. A professional legal adviser includes in-house legal advisers and foreign legal advisers. The power to require the details of relevant persons will only be used where necessary to ascertain if the communications are indeed privileged. Litigation privilege, which protects from disclosure, documents produced in connection with a possible court case, continues to be protected under common law. Section 71 - Granting a right of appeal to non-infringing undertakings that are subject to directions Let me now turn to clause 4 of the Bill which amends section 71 of the Act to give a right of appeal to parties who are not infringing undertakings, but who have been given a direction by CCS. As a matter of fairness, these parties whose rights may have been affected by a CCS direction should be given a right of appeal. Section 91A - Allowing CCS officers to act in appeals and court proceedings on behalf of the CCS Finally, clause 5 of the Bill adds a new section 91A to empower CCS legal officers to act for the CCS in proceedings before the Competition Appeal Board and the courts. Similar provisions also exist for legal officers of other agencies, such as Inland Revenue Authority of Singapore (IRAS), Monetary Authority of Singapore (MAS) and Intellectual Property Office of Singapore (IPOS). This is a practical amendment to enable CCS legal officers to carry out their duties. Conclusion Sir, the operative provisions of the Act will come into force on 1st January 2006.”