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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“There is also no compelling reason for the Ministry to run a dual system where we now select subsidised patients for certain treatments in private hospitals, as suggested by the Parkway group. The public hospitals are providing acceptable standard of care to subsidised patients. The Ministry has allowed subsidised patients to be treated by private sector general practitioners and dentists under the Primary Care Partnership Scheme, but those eligible have to undergo a means test. The Ministry would be happy to contract the service from the private sector if it can offer lower costs at the same or better service quality with the proper framework in place. We are putting in place such a framework for the step-down care sector, with means testing, accredited private sector facilities, properly audited norm costs, revenue caps, and so on. If the private sector is keen to help keep healthcare costs down, they are welcome to provide step-down services within this framework for a start. SINGAPORE LAND AUTHORITY 19. Mdm Cynthia Phua asked the Minister for Law why does Singapore Land Authority need to appoint other Government agencies, such as Urban Redevelopment Authority, Housing and Development Board and Land Transport Authority, to sell state land when it is capable of undertaking such a sale itself.”
“The Ministry of Health acts as the purchaser of medical services for lower and middle income Singaporeans. Public sector hospitals and institutions are set up to provide good and affordable basic healthcare to them. The Ministry has put in place various safeguards to ensure that Singaporeans continue to enjoy good healthcare and to moderate cost increase. Amongst these are: a) Setting up two healthcare clusters as not-for-profit entities and imposing revenue caps on them. Each cluster has a tertiary hospital, regional general hospitals and polyclinics to ensure integrated and seamless care for patients at the lowest cost setting appropriate to needs; b) Specifying the number of Class B2+, Class B2 and C beds to be provided by our public hospitals to ensure that the needs of lower and middle income Singaporeans are met; c) Setting clinical and service standards to ensure quality in the medical services delivered; and d) Coordinating the introduction of high-cost and high-technology medicine and equipment to avoid wasteful duplication and manage increases in healthcare cost. All these safeguards are to make sure that our public sector hospitals and national centres keep cost down. Today, subsidised patients choose the public hospital and ward class they want to be treated in, and the appropriate Government subsidy is given based on the choice of ward class. The Ministry will not be able to extend this arrangement for private sector hospitals. There is no mechanism to determine who is eligible for treatment at private hospitals, and we would end up subsidising those who can and should pay for their own healthcare expenses.”
“No Singaporean would be denied essential medical care because of their inability to pay. BALI INCIDENT 10. Dr Amy Khor Lean Suan asked the Minister for Home Affairs, following the recent tragic Bali bomb blast, (a) what security measures have been taken and what advisory has been or will be given to individuals, businesses and private security agencies to prevent attacks of similar nature from occurring in Singapore; and (b) given that many Singaporeans are making holiday plans, what advisory will be issued for those travelling overseas. 11. Mdm Ho Geok Choo asked the Minister for Home Affairs (a) what lessons can Singapore draw from the recent terrorists' bombing in Bali with regard to alerting Singaporeans' receptiveness to information on terrorists' activities; and (b) what more can the Government do to ensure that Singaporeans shall at all times be prepared for any eventuality and not presume that all is well because the Government is taking care of everything. 12. Mr Steve Chia Kiah Hong asked the Minister for Home Affairs what travel directives and additional security measures are being introduced to protect our installations, assets and people working overseas, especially those on the Indonesian islands of Batam and Bintan.”
“There are two types of rebates that the Government has been giving to Singaporeans under the Hospitalisation Fee Assistance Scheme (HFAS) since 1st November 2001. First, Singaporeans who are class B2/C inpatients or subsidised day surgery patients in the public sector hospitals and institutions would automatically receive a 10% fee rebate on their hospitalisation bills. Second, retrenched Singaporeans and their non-working spouse and dependent children would be eligible for an additional 40% fee assistance. Thus, together with the 10% rebate, families of retrenched Singaporeans would effectively receive a 50% reduction in their hospital bills. For the past 11 months since the implementation of the HFAS (from 1st November 2001 to 30th September 2002), some 265,712 Singaporean families have benefited from the scheme. Of these, 139 were retrenched Singaporeans and their families who received a 50% reduction in their hospital bills. Altogether, the Government has paid out close to $20 million worth of rebates to Singaporeans and their families to help defray their medical expenses. Of this, $142,000 was given to retrenched Singaporeans and their families. The bulk of the rebates ($19.8 million) was given to Singaporeans who used the heavily subsidised class B2/C inpatient services or who underwent subsidised day surgery. The HFAS was introduced for 1 year under the Government's 2nd off-budget measures to help Singaporeans tide through the economic downturn. The HFAS will terminate on 31st October 2002 as planned. Singaporeans who face financial difficulties in paying their medical bills, including those who are retrenched, will continue to receive funding assistance from Medifund. They can ask to see the Medical Social Workers who will assist them accordingly.”
“The provisions also include a maximum financial penalty of $1 million to deter anti-competitive behaviour, which is consistent with that prescribed in the Telecommunications Act. The Bill also includes provisions relating to staff, financial matters, and transfer of assets, liabilities and employees, which are similar to the Acts of other statutory boards. Conclusion In conclusion, Mdm Deputy Speaker, the formation of the MDA will benefit the industry and the public. The MDA will provide a focus for the development of our media industry. As a single authority, it will enhance the efficiency and effectiveness of our regulatory regimes. The formation of the MDA is timely, as it would be well positioned to respond to the recommendations of the Economic Review Committee as well as the Censorship Review Committee on matters pertaining to the media industry. MITA is confident that the MDA, with its focus on the media industry, will be instrumental in developing Singapore into a vibrant global media city and contribute to the development of a creative economy. Mdm Deputy Speaker, I beg to move. Question proposed.”
“As part of its functions, the MDA will also administer the following media-related legislation: a) The Newspaper and Printing Presses Act; b) The Undesirable Publications Act; c) The Films Act; d) The Broadcasting Act, which is the renamed Singapore Broadcasting Authority Act; and e) The arts entertainment licensing aspect of the Public Entertainments and Meetings Act. The legislative approach taken is to not make any substantive changes to these Acts that MDA will administer. This is because the various Acts have served our national objectives well. The focus of this Bill, therefore, is the merger of the various units to form the MDA. After the MDA is formed, MITA will review these Acts, and propose further amendments as necessary to deal with convergence and other issues that may arise. However, Part IV of the MDA Bill addresses an immediate issue that needs to be dealt with, which is the competition framework for the media industry. Clauses 16 to 27 are provisions to allow the MDA to maintain fair and efficient market conduct and effective competition in the media industry, and also to prevent the misuse of monopoly or market power. These provisions in the MDA Bill are essential to provide legislative powers for the statutory board to intervene in competition-related matters, and are necessary to safeguard against the potential abuse of market powers by dominant media companies. The MDA will be empowered to intervene in competition-related matters that have an impact on the industry, including mergers and consolidations that involve media companies, agreements that could unreasonably restrict competition and restrictions on access to essential resources.”
“There is therefore a need to ensure that the competition between these players is not dysfunctional, and that public interests and social goals are not compromised. The MDA will therefore be empowered to implement a competition code for the media industry. Such a code would lay out the ground rules for fair market conduct within the sector, provide a more transparent competition framework, and prevent the abuse of market powers by dominant media companies, to ensure that quality is maintained. Competition codes are already in place in countries, such as Britain and Australia, to ensure healthy competition. SBA circulated a draft media competition code to the industry in April this year. The comments and feedback from the industry are currently being reviewed, and the code will be released by the first half of next year, after the MDA is formed. Now, let me move on to the MDA Bill. The MDA Bill The MDA Bill provides for the establishment and constitution of the new statutory board and outlines its main functions, duties and powers. I would like to highlight some of the key aspects of this Bill. Clauses 11 and 12 of Part III set out the functions, duties and powers of the Authority. The primary function of the MDA is to exercise licensing and regulatory functions in respect of media services in Singapore, including the establishment of guidelines and standards for media content, and any equipment or facility used to provide these services. In addition, the MDA will encourage, promote and facilitate the development of the media industries in Singapore.”
“Roles of the MDA The MDA will therefore have two primary functions - as a content regulator, and to develop the industry. On content regulation, MITA's view is that media continues to play an important and significant role in nation building. One of the MDA's key objectives will therefore be to protect Singapore's core values and safeguard the interest of consumers. To do this, it will take over the licensing and regulatory functions of SBA and FPD, and administer the relevant Acts. On industry development, the MDA will play a number of roles. Firstly, the MDA will promote the growth of the media industry, working closely with the Economic Development Board (EDB) and other agencies to attract investments to Singapore. It would use its domain knowledge to work with the industry and other Government agencies to build up the creative and technical capabilities we need. It will drive the Media 21 vision, which aims to develop Singapore into a vibrant global media city, specialising in the creation, development, distribution and trading of media content and copyrights. Secondly, the MDA will play an important role in maintaining fair and efficient market conduct and effective competition in the media industries. Media competition was introduced in June 2000 to give viewers and readers more media choices and higher quality content. This has resulted in innovative offerings from the media companies. However, given the relatively small size of the Singapore market, competition is likely to be limited to just a few players. Competition today is between two leading media companies, each dominant in one area of traditional media - television or newspapers.”
“Wireless broadband technologies, for example, promise to bring about greater convenience, more powerful communications capabilities and wider reach. The emergence of new media channels has also spurred the development of new content. Contents are now created with not just one channel in mind, but with the intent of being used and shared across many different channels. Likewise, industry support capabilities, like production houses, are structured to support multiple forms of media. And new content development capabilities, like the use of animation and films, are also being established. In its report, the Economic Review Committee (ERC) Sub-Committee on Service Industries projected that the creative cluster, of which media is a significant part, could contribute 6% to Singapore's GDP in 10 years, up from between 2.8% and 3.2% in 2000. Specifically, the media industry is targeted to double from 1.6% of GDP to 3.5% over the same period. It is therefore an important industry for Singapore, and one that has the potential to create many good jobs. These developments have two main implications. Firstly, a single authority is needed to respond to the needs of the cluster of media industries. A single authority would be able to develop strategies and devise schemes to facilitate the development of new innovative contents across all media, and to respond quickly to the rapidly changing technology and business environment. Secondly, a single authority will be in a better position to develop and administer a practical and appropriate censorship regime that takes into account the different nature, impact and viewership of different media. It would be able to regulate media companies with more flexibility, greater consistency and operational effectiveness.”
“I thank the Member for his advice. We will definitely have properly trained counsellors to do this, and I am sure they will do the right thing. 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. MEDIA DEVELOPMENT AUTHORITY OF SINGAPORE BILL Order for Second Reading read. 5.57 pm The Acting Minister for Information, Communications and the Arts (Mr David T. E. Lim): Mdm Deputy Speaker, I beg to move, "That the Bill be now read a Second time." Introduction During the debate on my Ministry's budget in May this year, I announced that MITA would establish the Media Development Authority of Singapore or MDA to give focus to the development of the media industry. The MDA will be formed by merging the Singapore Broadcasting Authority (SBA), the Films and Publications Department (FPD) and the Singapore Film Commission (SFC) into a single statutory body. The MDA Bill provides the legislative framework for the establishment of this new statutory board. Before I go into the Bill proper, let me first elaborate on the rationale for forming the MDA. Need to Form the MDA The need to form the MDA is driven largely by the convergence of different media, and the emergence of a cluster of high potential growth and high value-added activities in the media industries. Today, technology has blurred the lines between different types of media. Movies, for example, can be watched at cinemas, on television, and over the Internet. We get our news from the newspapers, radio and television, and also over SMS, MMS and the Internet. More changes are coming.”
“I am afraid I do not have the details. It is also something that Dr Amy Khor raised. This is something that the HPB and the various committees will do on their own. Assoc. Prof. Ngiam Tee Liang: Just a quick follow-up. Is it possible that in the suggestions on counselling, in order for it not to be counter-productive, due consideration is taken into getting the underlying causes for teenagers to be easily influenced by peers and to have some form of self-discipline that there would be self-awareness, sensitivity training provided for them to understand how to be assertive, how to resist peer temptation and also the kind of inner self-discipline? Because it appears that parents will also be involved. Similarly on the problems with drug abuse, if we do not tackle those underlying causes, then some of these measures could be just symptomatic treatment and not really that effective and, in fact, become counter-productive.”
“As part of our strategy, we have taken anti-smoking in schools quite seriously. We have conducted talks. We have brought role models, people in the media, people in the entertainment industry, who have agreed to help us in this campaign. So they go to the schools and they serve as role models, and they try to persuade young Singaporeans not to smoke. So that is part of the strategy. We try to strike a sensible balance, as Ms Irene Ng mentioned, when dealing with the young. I think you have seen our reply in one of the newspapers. Dealing with the young, we do not really want to put them off. So you have got to strike this balance. I believe the Committee looking into this has attempted to do so. On the various suggestions about banning additional places, this is something that we work closely with the Ministry of the Environment, whether it is banning of smoking in pubs or in other places, bus stops and other areas. This is something that we continuously take up with the Ministry of the Environment. Assoc. Prof. Ngiam Tee Liang: Mdm Deputy Speaker, I would like to follow up on the query on the counselling sessions mentioned in clause 8. Could the Minister kindly elaborate on what would be involved in that process?”
“We will take these up with the Committee looking into this. And I can assure you that these suggestions will be followed up.”
“Dr Lily Neo also suggested that we subsidise nicotine-free pills in our Smoking Cessation Clinics. This is something that I will refer to the Committee to look at. Dr Amy Khor and Ms Irene Ng both advocated very strongly that the tobacco tax be further increased. Let me assure the House that it is the Government's policy to continuously increase the tobacco tax to keep up at least with the purchasing power of Singaporeans. But, as Dr Amy Khor has observed, this year, while we raise the tobacco tax by 20%, the cigarette manufacturers lowered the cigarette prices, thereby negating the impact of the tobacco tax. But this is a war that we will continue to fight. It is not fought over one year. Ms Irene Ng raised several suggestions on how to influence the environment that youths patronise, to discourage them from smoking. I was particularly intrigued by her comment that young girls smoke to attract man, and boys smoke to look mature. I remember, some years ago, watching an advertisement which shows a lady smoking and the caption saying: "Do you want to kiss an ashtray?" So, I am not sure whether a lady smoking really attracts man. Anyway, I think we agree with all the speakers that we have a big battle ahead. It may be cynical, but the cigarette manufacturers are really targeting at the young. They know that smoking is addictive and they know that the strategy is to get people hooked onto cigarettes. I think this is a very cynical strategy but, unfortunately, it is the truth, and we have to combat it at every level. As you can see from the amendments that we put into the Bill, our effort is really strongly targeted at the young people to try and persuade them not to get started on the first puff. I thank Members for their support and their many suggestions.”
“Mdm Deputy Speaker, first, I would like to thank all four MPs who rose to speak in support of the Bill. This is a rare occasion for me where I am told I am not going far enough, and I need to be pushed forward. As I said in my Second Reading speech, the anti-smoking programme is a multi-faceted programme. We must pursue different strategies and from different angles. What we are discussing today is really the legislative changes to make it possible for us to keep the smoking rates in Singapore under control. For the items specifically under discussion today, the issue about smaller packs, I accept the different views. Whether it is effective or not, I think it is worth trying. And I thank those who support it on that basis too. Dr Lily Neo suggested setting up an anti-smoking activist group. I think that is an excellent suggestion. We will pass it on to HPB and to the Committee overseeing this and see how they can prompt or encourage such a group to be set up. We also need more enforcement, a point made by all three speakers. We need greater vigilance, enforcement of the rules, particularly against retailers who sell to underaged smokers, and also on the offenders themselves. While in the Bill we have asked for increase in fines and also introduce counselling, the changes will not be effective if these are not enforced. So I assure the House that with these additional powers and the existing powers, we are taking and intending to take stronger enforcement of these rules. On the suggestion of labelling, whether to provide more graphic or pictorial warnings, this is under consideration. It is proven to be quite effective in other countries. We intend to also review this and introduce this in Singapore.”
“This provision requires that such notices be delivered in person by an authorised officer, a time consuming and resource intensive method. In comparison, the Housing and Development Board has the option to issue notices via registered post, as provided for in the Housing and Development Act. A similar provision will be incorporated into the Act in order to allow the serving of notices to be made by other more efficient means such as the method of registered post. The final change is to refine the powers of investigation for authorised officers under the Act. In the course of investigating offences under the Act, the investigating officer authorised by the Health Sciences Authority may be required to obtain statements from persons involved in the investigation. Similar to the option available to the National Environment Agency, such powers of investigation are provided for in the Environmental Public Health Act. A similar provision will be made in the Act to facilitate the investigations of offences under the Act by the Health Sciences Authority. Mdm Deputy Speaker, the Ministry of Health believes that a multi-pronged approach is needed to encourage non-smokers to stay smoke-free and smokers to give up the smoking habit. The amendments to the Act will complement the existing strategies, to ensure that the legislative measures remain relevant to the social climate and on par with the best practices from other countries. Madam, I beg to move. Question proposed.”
“The fifth change is to extend the current licensing of tobacco retailers to include importers and distributors of tobacco products. At present, the licensing of tobacco retailers provides a system of monitoring and regulation of the sales of tobacco products at the retail end. However, there remain certain aspects of product compliance that may not be within the direct influence of the retailer. Examples of such product compliance include the tar and nicotine limits of cigarettes and mandatory health warning labelling requirements of tobacco products. Instead, greater accountability for ensuring such compliance with the licensing authority's requirements should be placed on the industry source rather than the small retail shops. This would ensure, for example, that the Health Warning Labelling regulations are properly implemented at the distribution stage before the products are supplied to retailers. In addition, this will also help to tighten the distribution of tobacco products to only licensed retailers. In order to be consistent with the approach that regulation of tobacco should begin at the source of the tobacco supply chain, the current licensing of tobacco retailers will be extended to include importers and distributors of tobacco products. In this manner, the source of the tobacco trade can be better monitored and regulated. The sixth change is to allow the serving of notice to attend Court, to be done by other means. The current Act does not have specific provisions on the serving of summonses and notices. In the absence of such provisions, the Health Sciences Authority has to rely on Chapter V of the Criminal Procedure Code on the serving of such notices.”
“Recognising that peer pressure is the main reason why many youths pick up smoking, this measure provides an excellent opportunity to communicate to both the youths and their parents not only the dangers of smoking, but also equip the youths with life skills to enable them to quit and stay smoke-free. Our survey shows that almost half of our young smokers have either one or both parents who smoke. The compulsory participation of parents in the counselling process will also enable the counsellors to motivate these parents to quit smoking and serve as positive role models for their children. This example illustrates how the enabling clause allows both enforcement and education to work hand in hand towards combating smoking among the young. The fourth change is to include the listing of other constituents in addition to tar and nicotine, in cigarettes imported or sold in Singapore. The current Act prescribes the maximum allowable limits for tar and nicotine contained in the emissions of cigarettes imported and sold in Singapore. However, in addition to tar and nicotine, cigarettes contain many other harmful and cancer-causing constituents. One such example is carbon monoxide, normally found in car exhaust fumes. Currently, Canada's legislation requires cigarette packs to list the amount of tar, nicotine, carbon monoxide, benzene, hydrogen cyanide and formaldehyde found in cigarette emissions. The Act will be amended to require the listing and its allowable limits of constituents other than tar and nicotine. This measure serves to inform consumers about the poisonous and toxic substances that are found in tobacco products and serves as a deterrent to some people to smoke.”
“The second change is to increase the fine quantum of underaged smoking offences from $50 and $100 for the first and subsequent offences, to a flat $300 ceiling. In spite of the ongoing national smoking control efforts, the trend of smoking among youths aged 18 years and below, is still a cause for concern. From a legislative perspective, the current system of penalties for underaged smokers does not pose a sufficient deterrent effect and is also administratively cumbersome. Under section 11(1) of the Act, an underaged youth caught smoking, chewing, buying or possessing any tobacco product is liable on conviction to a fine not exceeding $50, and in the case of a second or subsequent conviction, to a fine not exceeding $100. The existing amount of fines is not sufficient to deter the majority of youth offenders who can generally afford the amounts imposed. The revision of the current penalty towards a flat $300 quantum would thus have a sufficient deterrent effect on the underaged youth. The third change is to include an enabling clause to provide for the imposition of conditions when compounding offences. Currently, underaged youths caught smoking are not required to fulfill any conditions other than to face a fine of $50 or $100 upon conviction. This enabling clause will allow conditions to be imposed when compounding offences under the Act. For example, underaged smoking offenders and their parents or guardians could be conditionally required to attend smoking cessation counselling in order to have their offences compounded.”
“In order to support this approach, the legislation on smoking is reviewed and updated regularly so as to keep up with changes in social trends as well as to adopt the best practices from other countries. The Smoking (Control of Advertisements and Sale of Tobacco) (Amendment) Bill therefore comprises a total of seven amendments to the Act. Mr Speaker, Sir, let me now highlight the major new provisions that are being introduced in this Bill. The first change is to prohibit the sale of cigarette packs containing fewer than 20 sticks of cigarettes. The rationale for prohibiting the sale of cigarette packs containing fewer than 20 sticks of cigarettes is to discourage the youths from starting to smoke. Studies have shown that most smokers start smoking during adolescence. Many start by experimenting with one or a few sticks of cigarettes before they start smoking regularly. Cigarette packs containing less than 20 cigarettes are more affordable to the young smokers as they cost less. For instance, the average cost of a pack of 10 cigarettes is $3.50, about half the price of a pack of 20 cigarettes, which costs about $6.50. The smaller packs can also be concealed more easily from teachers and parents. According to a WHO publication, cigarette packs containing less than 20 sticks are, in fact, a marketing strategy by the tobacco industry to specifically target young smokers, who are experimenting with cigarettes and have less purchasing power. Australia, Canada, certain states in the United States of America and Thailand have also banned the sale of small packs with fewer than 20 cigarettes to discourage experimentation by young people.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." This Bill seeks to make amendments to the Smoking (Control of Advertisements and Sale of Tobacco) Act (Chapter 309 of the 1994 Revised Edition). Background Sir, the fact that smoking is addictive and that it causes lung cancer, heart disease and other fatal diseases in smokers is not disputed, not even by the cigarette manufacturers. It is estimated that 50% of long-term smokers will die prematurely in their middle age without reaching the life expectancy of 76 years, a loss of about 22 years of life. Yet, new smokers, especially the youth, are attracted to the habit and become addicted. The World Health Organisation (WHO) estimates that about half of those who experiment with smoking during their adolescence, will become regular smokers. [Mdm Deputy Speaker (Mrs Lim Hwee Hua) in the Chair] 5.10 pm The Singapore Youth Tobacco Survey in 2000 showed that in Singapore, 11% of the respondents aged 13-17 had smoked on at least one day in the preceding month, while 4% of these youths smoked at least 20 days in the preceding month. Smoking rates in Singapore had dropped to a low of 14% in 2001, from 18% in 1992, putting Singapore among the countries with the lowest smoking rates in the world. Nonetheless, the National Smoking Control Programme continues to actively work towards a smoke-free lifestyle among all Singaporeans. The basic tenet of the National Smoking Control Programme is a multi-pronged approach to control smoking. This includes public education, community involvement, legislation, enforcement, fiscal measures, and the provision of smoking cessation services.”
“However, the Comptroller will be given the discretion to waive the penalty imposed on late payment where there are exceptional circumstances. Finally, the Street and Building Names Board (SBNB). Currently, the Minister for Finance has authority to determine or change the name of any street, building and estate. He is assisted in this task by an advisory committee. In practice, most of the applications for names submitted to the committee are straightforward, and the committee's recommendations could be accepted without any amendment. Hence, clause 18 amends section 49 of the Act to establish the Street and Building Names Board and to vest in the Board the authority to determine or alter the names of any street, building and estate. The Chairman and members of the Board will be appointed by the Minister for Finance. There will also be an avenue to appeal to the Minister for Finance, against decisions made by the Board. 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. ARMS AND EXPLOSIVES (AMENDMENT) BILL Order for Second Reading read.”
“Any owner aggrieved by the inclusion in the Valuation List of any property or by the annual value ascribed to a property may, at any time within the period allowed for inspection of the Valuation List, write to the Chief Assessor to object. As taxpayers are informed of the annual values of their properties through their property tax bills or valuation notices, there is no need to publish the Valuation List for the public to inspect. Thus, clause 5 of the Bill removes this practice. Clause 7 introduces a new section 20A to the Act, which will allow taxpayers to object to the Chief Assessor with regard to the annual values ascribed to their properties at any time of the year. If the Chief Assessor rejects a taxpayer's objection, the taxpayer may proceed to lodge an appeal with the Valuation Review Board within 21 days of the service of the notice of the Chief Assessor's decision. This amendment effectively gives the taxpayer more flexibility to lodge an objection to the annual values of their properties. The next change is on the penalty for non-payment of tax. Under the current Act, if the property tax remains unpaid at the end of January or July, a notice would be served on the person liable. The taxpayer is required to pay the outstanding tax and a fee for the cost of the notice within 15 days from the service of the notice. A penalty may only be imposed upon the expiration of the requisite 15 days. To encourage property owners to pay their taxes on time, clause 16 introduces a new section 36 to the Act to impose a penalty at the point the payment is due rather than upon expiration of the notice demanding payment of outstanding tax. The penalty will be capped at 5% of the amount of outstanding property tax.”
“" Mr Speaker, Sir, this Bill will amend the Property Tax Act to give legislative effect to the following measures: 1) To change the billing cycle for property tax from twice a year to once a year in January; 2) To abolish the practice of opening up the Valuation list, in the month of August, for public inspection and objection; 3) To allow taxpayers to lodge objections on the annual value of their properties at any time within the current year; 4) To allow the Comptroller to impose a penalty not exceeding 5% of the amount of outstanding property tax immediately upon the expiration of the time period stipulated for payment; and 5) To establish a Street and Building Names Board which will determine or alter the name of any building, estate or street. Let me now explain the main amendments in the Bill. At present, property tax is payable half-yearly in advance in the months of January and July. Clause 3 of the Bill amends section 6(2) of the Act to provide for property tax to be payable yearly in advance in January. Property tax bills will then be sent out only once a year. This will bring about cost and manpower savings. Taxpayers paying their property tax through GIRO will not be affected, as they are already paying their property tax payments in 12 equal, interest-free, monthly instalments. Hence, IRAS will encourage those taxpayers currently paying their tax by cash or cheque to pay their tax through GIRO by sending them a package containing information of how to effect payment through GIRO. The second amendment is on objections to the Valuation List. Currently, the Valuation List for the ensuing year is open to the public in August for inspection.”
“For people who are not domiciled in Singapore, the estate duty only covers immovables in Singapore, because we want to make sure that foreigners who buy property, the property will be subject to a tax above the exemption limit. But foreigners who are not domiciled in Singapore are only taxed for movables within Singapore. So they could put their movables outside Singapore, and that would be outside the ambit of our tax. So, to encourage such foreigners not to keep their movables outside Singapore but to encourage them to invest in Singapore dollar denominated assets, this is the reason for the section 11 amendment. The reason why we are making this change with respect to foreigners is because, for foreigners, we are already not taxing them on movables outside Singapore. Therefore, we are now also exempting them on movables in Singapore, so that it is a level playing field, and we hope that they will in fact invest in Singapore assets. That is the reason for the change. But I take note of Mr Andy Gan's comments, and I am sure this whole debate on estate duty will continue. 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. PROPERTY TAX (AMENDMENT) BILL Order for Second Reading read. The Second Minister for Finance (Mr Lim Hng Kiang): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time.”
“Mr Speaker, Sir, I thank Mr Andy Gan for his comments. I think there are three issues that he raised. First, a very fundamental issue, is should there be estate duty in Singapore. This is a continuing debate - whether or not we should have a death tax regime. Most countries do have it - the UK, USA, Hong Kong, Ireland. They have either inheritance tax or estate duty. Some countries do not have an inheritance tax or estate duty, but they have a gift tax, ie, those who receive them have to pay a tax on the gifts that they are given. So this is a fundamental issue: when somebody builds up the wealth and you transfer the wealth as an inheritance, whether that should be taxed. As I said, a few countries have dispensed with this tax, but the majority of tax regimes still continue with this tax. So we will continue to review this. The second issue is whether or not we should treat immovables and movables differently. In Singapore, our estate duty is already very benign. Immovables are exempted up to $9 million, ie, if you have properties in Singapore, only properties above $9 million would be subject to estate duty. For movables, the exemption limit is $600,000. The exemption limit for movables covers both movables in Singapore as well as outside Singapore. So it is not true that Singaporeans can avoid estate duty by investing in movable assets outside Singapore. The tax treatment for movables is anything above $600,000, both within Singapore and outside Singapore. So, that is the second clarification I would like to make. The third clarification is how do we treat people who are not domiciled in Singapore. That is section 11 that Mr Andy Gan refers to.”
“When the Deputy Prime Minister raised the issue of the GST in Parliament this year during the May Budget speech, we made it very clear that we face very difficult times. And it is because of these very difficult challenges that we need to restructure the overall tax regime of Singapore. As it turns out, the situation is indeed very difficult, more difficult than we have envisaged, and, therefore, I think it makes it all the more urgent that we pursue with this tax restructuring. 2.00 pm”
“The neighbours and community leaders may want to persuade the family members to bring the person for voluntary psychiatric treatment in the first instance. Failing this, there are provisions in the Mental Disorders and Treatment Act for the apprehension of mentally disordered persons. Any person, who believes someone to be mentally disordered and dangerous to himself or others, may report him to the police. The police will investigate the matter and if necessary send the mentally disordered person, with a report of the facts of the case, to Woodbridge Hospital. If the doctor at the mental hospital believes such a person to be mentally disordered or to require psychiatric treatment as an inpatient, he is empowered by the Act to admit and detain him for 3 days in the first instance. There are procedures established under the law to extend the period of detention incrementally for a total of 13 months. Any further detention will be decided by a magistrate upon the recommendation of visitors appointed by the Minister to the mental hospital. MAINTENANCE CLAIMS 32. Ms Braema Mathiaparanam asked the Minister for Law (a) how many claims for non-maintenance have been filed by ex-spouses each year over the years 1999 to 2002; and (b) in such cases, what are the actions taken against the defaulting spouses.”
“The use of SAT I, a reasoning test, will help our universities assess a candidate's analytical thinking skills. This complements the `A'-level examinations, which is a rigorous and effective measure of content knowledge. Coupling these two modes of assessment will allow our universities to select the right type of students, and signal the type of graduates Singapore needs for us to succeed in the knowledge economy. In June this year, the College Board, while announcing the changes to the SAT I, stated that the new SAT I will remain a test of reasoning and thinking skills. Notwithstanding this assurance, my Ministry has set up a taskforce consisting of MOE, NUS and NTU representatives, to study in depth the changes that College Board is making to SAT I and to determine how best the new SAT I can be used to serve the universities' objectives. The taskforce is expected to complete its review by the end of 2002. TRANSFER FEE OF SECOND-HAND CARS 28. Mr Low Thia Khiang asked the Minister for Transport what is the rationale for the Land Transport Authority's decision to charge second-hand car buyers a transfer fee of 2% of the vehicle's market value.”
“Demand for wards with higher subsidy has increased in the past two years. In 2000, 70% of total inpatient discharges in restructured hospitals were from the heavily subsidised Class B2+, B2 and C. This proportion increased to 74% in first quarter 2002. Singaporeans could have become more cost conscious as a result of the economic downturn and our recent efforts to encourage them to spend more prudently on healthcare. Despite the higher demand for subsidised wards, restructured hospitals are able to give Singaporeans timely access to subsidised healthcare services. Accident and Emergency (A&E) patients are given prompt treatments at the A&E Departments. Moreover, more than 90% of A&E patients who require admissions are allocated a hospital bed within 1 hour. For the small minority who has to wait more than 1 hour, our hospitals are looking into ways to speed up the allocation process. For example, on days when demand for beds of a particular ward class is exceptionally high, the hospitals will allow patients to occupy a bed in a higher ward class first, until a bed in the ward class of their choice becomes available. They need only pay the rates of the ward class of their choice for their stay in the higher ward class. SCHOLASTIC ASSESSMENT TEST I 25. Mr Low Thia Khiang asked the Minister for Education whether the new Scholastic Assessment Test I, which will be used from 2005, will serve the original objective of his Ministry in introducing an additional mode of assessment for admission into university. RAdm Teo Chee Hean: The objective of including the SAT I for university admission is to introduce a reasoning test as an additional mode of assessment for university admission.”
“Currently, not all specialist outpatient clinics are able to achieve these targets. My Ministry commissioned an Operations Research study in April 2001 to look into the causes of this, and to recommend measures needed for the clinics to achieve these targets. The study is expected to be completed soon. In ensuring clinical and service quality standards, the Ministry and hospitals monitor and ensure that doctors are not unnecessarily overworked. At polyclinics, doctors work 45 hours a week, excluding lunch hours. This is comparable to a private-sector General Practitioner who works an average of 43 hours a week. Doctors in hospitals work an average of 60 hours a week. The working hours are longer because most hospital doctors, as part of their work, perform night calls. However, the working hours of our doctors are comparable to those of doctors in other developed countries. While public-sector doctors generally see more patients than a General Practitioner every day, hospitals and polyclinics also ensure that their doctors have sufficient time with patients so that quality of care is not compromised. HOSPITAL WARDS AND BEDS 23. Mr Nithiah Nandan asked the Minister for Health (a) whether there has been an increase in demand for wards with higher subsidy and, if so, why and (b) what is the range of waiting time for Accident and Emergency patients before being assigned to a hospital bed and the steps taken to reduce the time.”
“Polyclinics provide a comprehensive range of preventive and primary care services. They are able to manage acute illnesses like the common cold as well as the more chronic problems such as diabetes and hypertension. Other services include health education, family planning, antenatal and postnatal care, childhood immunisations and developmental assessment of children. We have about 200 doctors manning 17 polyclinics. About one-third of them have postgraduate qualifications in family medicine. For patients with more complicated medical problems, a full range of specialist outpatient clinics are available in the various restructured hospitals and specialty centres. We have about 640 specialists covering the 29 specialties with outpatient clinics, ensuring a high quality of clinical services. Apart from professional standards, my Ministry also recognises the importance of service quality such as waiting time and good communications. Polyclinics are well-used by residents as fees are affordable. The majority of the patients are walk-in cases who do not have prior appointments. The waiting times can therefore be longer because of the bunching effect. During the morning peak hours between 8 and 11 am, patients may have to wait up to 90 minutes to see a doctor. Waiting times could be improved if patients were to visit the polyclinics during non-peak hours. My Ministry is monitoring this situation closely, and the polyclinics are also working to ensure that their patients do not have to wait unnecessarily long. For the specialist outpatient clinics, our target is for at least 50% of our patients to be seen within 30 minutes of their appointment times, and for 95% of the patients to be seen within 75 minutes of their appointment times.”
“Interconnection will enable us to have gas from one source backing up supply from another, thus giving our system greater resilience. This can be done within five years. In the longer term, liquefied natural gas could be yet another fuel source. Presently, we use piped natural gas which cannot be stored. If we decide to use LNG as well, we will have a store of gas for emergency purposes. The public was understandably concerned that a disruption in gas supply could have caused such blackouts over parts of Singapore. We are not taking this incident lightly. It will be thoroughly investigated, and lessons will be learnt. The EMA and the power companies will spare no efforts in making our electricity system more resilient against fuel supply disruptions even as we move towards greater use of natural gas in the future. SENIORITY-BASED WAGE SYSTEM 7. Dr Jennifer Lee asked the Minister for Manpower (a) what efforts have been made by his Ministry since the mid 1980s to move Singapore away from a seniority-based wage system; and (b) what strategies and specific plans his Ministry has in the coming years to move Singapore away from such a system.”
“Conoco has reported that a false alarm from one of the monitoring instruments activated the emergency valve. The gas-fired plants, although designed to also run on diesel, could not switch over from gas to diesel in time as gas pressure was lost very rapidly. Instead, four standby diesel-fired turbine generators were pressed into service. It took about half an hour to bring all these units into operation from a cold start. This stabilised the system, and thereafter electricity supply was restored to the affected areas progressively. As the emergency shutdown valve was accidentally tripped, Conoco has stopped all non-essential maintenance work at the ORF until investigations are completed. They have also changed the computer logic by temporarily disabling tripping by this instrument in the automated safety system. Any tripping will be done manually. A Task Force comprising members from the industry and the Energy Market Authority (EMA) has been set up to identify all likely factors that could activate the ESD valve and cause gas disruption. The Task Force will review operating procedures and identify additional preventive measures to be taken to minimise, if not avoid altogether, future disruptions. The Task Force will take a month to complete its review. EMA is separately studying with the power companies if it is possible for the gas-fired generation plants to switch quickly over to diesel before the gas supply depletes. The likelihood of such sudden supply disruptions will be reduced when we have more sources of piped natural gas. As Members know, we will have another pipeline carrying gas from Sumatra next year. We intend to connect these separate pipelines and networks together.”
“Mr Speaker, Sir, I have been explaining ElderShield based on its merits for many, many months, if not years. And we have to clarify and clarify and sell it so many times that I feel like I am selling a koyok. Why don't we just look at the merits and decide for ourselves whether we are in or out? SAFETY MECHANISM AGAINST MAJOR BLACKOUT 6. Dr Warren Lee asked the Minister for Trade and Industry, in view of the recent major blackout in Singapore resulting from the sudden and accidental reduction in gas supply to our power stations, whether any safety mechanism exists to protect Singapore from suffering a repeat of such incident. The Minister of State for Trade and Industry (Mr Raymond Lim Siang Keat) (for the Minister for Trade and Industry): Sir, a disruption in the natural gas supply from West Natuna, Indonesia led to the tripping of seven gas fired generation plants at 10.00 am on 5th August 2002. About 1,550 MW of generation capacity was suddenly lost from the system which was drawing about 4,650 MW. Load amounting to 380 MW had to be shed to bring demand down to a level that will not overload the remaining generation capacity still operating in the system. Electricity supply was fully restored by 11.28 am. What caused the natural gas supply disruption? Natural gas from West Natuna is conveyed by a pipeline that terminates at Conoco's Onshore Receiving Facility (ORF) in Sakra on Jurong Island. During a routine maintenance carried out by Conoco at the ORF, an emergency shutdown (ESD) valve was automatically activated. This disrupted the natural gas supply to SembCorp Gas and its gas customers. The activation of the emergency valve is part of the protection design to prevent unsafe conditions in the gas network such as over-pressure.”
“Mr Speaker, Sir, all insurance claims need to go through an assessment process. For the ElderShield, we have set up a group of assessors who are GPs to make this assessment. If the policyholder is not happy with the assessment done by the assessors, there is a channel for appeal to the Ministry. But it is very early days. The scheme will not kick in until 30th September. The assessors are not out yet. So, let us wait and see what the claim histories are like. Right now, we still do not have enough cases to determine one way or the other whether the assessors have been overly strict or overly lenient. I think we need at least two, three, maybe five, years to build up some kind of a pattern. At the end of that period, we will do a review. Ultimately, Singaporeans must look at the scheme and determine for themselves whether the scheme meets their requirements or not. And if they do not, they opt out. If they do, they stay in.”
“Sir, at the end of five years, we will allow the insurers to have an increase if the claim history turns out to be worse than they expected, but the increase will not be more than 20%. At the same time, if the claim history turns out to be more benign than they expected, we will look at the claim history and we will ask them to rebate 50% back to the holders. NTUC Income has come out publicly to say that if the claim history is more benign, in fact, they will look towards giving back higher than 50% rebate. But the contract calls for a 50% rebate. Dr Lily Neo rose ---”
“Sir, we will have some say in the key parameters in the contract, eg, we ask them to stipulate the expected claim calculations on which they based their tender, so that sets the baseline. And if the claim history is higher than that, then we have certain provisions. If the claim history is less than that, we also have certain provisions. The provisions are in the premium adjustments, whether we get a rebate or whether we have an increase. In the contract itself, the Government, meaning the Ministry of Health and MAS, gave ourselves certain parameters that we can change, depending on how the claim history works out.”
“Sir, as I said, we are starting a very new scheme. When we call the tender, we could have said $300 and pay out until death, in which case there is no prescribed cap. Or we could call the tender and say $300 up to a maximum of 60 months. Then there is a cap. And the insurers will tender accordingly. We decided that, as a start, we put a cap so that the insurers have as much certainty as possible to bid for the tender. If we have put $300 and pay out until the person dies, then there is additional uncertainty and the risk is that the insurer may tender at a higher price or ask for higher premiums to cover the risk. So we want to start off with a scheme which is as simple as possible. And as we build up experience and knowledge, then we can have enhancements. It is also conceivable that as we develop our claims history we can allow the claims to go beyond five years. Then the insurers will be able to calculate and say what additional premium you will have to pay to have that enhancement. So we are keeping things as simple as possible in the start-up, and then we can have enhancements as we develop experience.”
“If they think they can look after themselves, then they opt out. The choice is theirs. What we try to do is to provide this facility which is open to Singaporeans and encourage as many as possible to join in.”
“ElderShield is a scheme based on actuarial calculations. So, the more people we have, the bigger the risk pool. Then, of course, those who are lower risk will subsidise those who are higher risk. The idea is to go out with at least a minimum cover of 250,000 people. That is what the actuarial consultants tell us is needed as the minimum risk pool. Anything beyond 250,000 participants, we have a sound basis for it. We have put in the contract with the insurers certain safeguards. As I said, we start off with a very simple scheme - $300 pay-out and we keep the premiums as affordable as possible. We understand that this is a very new scheme. The insurers do not have very much data to go by. They use our own data. We have done two longitudinal studies. We have taken the data of developed countries. Here, you are calculating your obligations for the next 40-50 years. Because if you take somebody in at age 40, he may live till 85-90. So you are going to do all these actuarial calculations to calculate your obligations 40-50 years down the road. I think the consultants and the actuaries have been very conservative. And that is the reason why in the contract, we have built in provisions that if the claim history is less than what they projected, then they will offer a rebate to the holders. If the claim history turns out to be higher than the projection, then, of course, we will allow them to raise the premium. Because this scheme is actuarial based and it must be self funding. In the end, the basis of the insurance is that you are paying a premium and the pay out ratio is between 1:4 or 1:5. And if Singaporeans want peace of mind and they are prepared to set aside this small sum from their Medisave, then they participate.”
“Sir, that is not true, because if you are from the low income group and you are admitted to a nursing home and you meet the means test, the nursing home will probably charge about $1,000 per month. The Government will subsidise 75%, which is $750, and your pay-out is $250. So I think the $300 goes some way in meeting the expenses. We are not saying that the $300 will pay for everything that you need if you are disabled. We want to keep the scheme as simple and as affordable as possible. We set it at $300 because that makes some sense in relation to somebody who is in the low income and will enjoy subsidies from the Government if he is admitted to a nursing home. As I said, if people think that this scheme does not quite meet their needs, they can opt out. And five years later when the insurers offer a higher pay-out of $1,000 and if they think that it meets their needs, they can opt in again. But at that time when they opt in, they will have to pass a medical test. It will not be auto cover.”
“Sir, as I said, we have to make sensible trade-offs in designing this scheme. We start off with a very basic scheme of $300, so as to keep the premiums as affordable as possible. If we raise the pay-out to $600, then the premiums will be double, and even more Singaporeans will opt out. For purposes of introducing this scheme, we want a simple scheme and as affordable as possible. And as we gain more experience, we will allow the insurers to have top-ups to the scheme. So it is quite conceivable that 3-5 years from now, the insurers will offer higher pay-outs, and correspondingly higher premiums. But the primary objective in launching this scheme is to get as many Singaporeans sign up as possible. So we want a basic scheme with low premiums.”
“Sir, severe disability insurance comes under different terms. In the private sector, it is called long-term care insurance. In other countries, it is called severe disability insurance. In our case, we coin the word "ElderShield" so that it is easier for people to identify the scheme. Essentially, severe disability sets in primarily when a person is elderly. So it is meant primarily for the elderly people. But, of course, severe disability can set in any time. A person can have a stroke when he is 45, and he will still be covered. But I think we want to reflect the primary purpose of this scheme, which is for the elderly. Hence, we call it ElderShield.”
“Mr Speaker, Sir, we are quite realistic. The scheme cannot meet the needs of everybody. We try to start off with a basic scheme, and it is quite understandable that a certain percentage of Singaporeans may assess that this scheme does not quite meet their needs. For example, those in the high income groups may feel that $300 pay-out is too low for them, and they will find their own means to seek other covers. For the low income groups, as I said earlier, the Government will continue to look after them if they meet the means test through our step-down care facilities.”
“The key priority now is to ensure that Singaporeans who have received the auto-cover understand the benefits of ElderShield and make an informed choice to join the scheme.”
“Mr Speaker, Sir, since the implementation of ElderShield, the Ministry of Health, together with the two ElderShield insurers - NTUC Income and Great Eastern - have been actively publicising the scheme through the various mass media and have conducted numerous grassroots briefings. Through the publicity efforts, we hope to create awareness and help Singaporeans understand the benefits of ElderShield. So far, 21% of Singaporeans aged 40 to 69 who are eligible for auto-cover have opted out of ElderShield. Some of them may already have adequate coverage from private insurance plans, while others in the lower income group may feel that they may not be able to afford the premiums. For those in the low income group, the Government will continue to help them meet their healthcare expenses through other avenues, such as Medifund and subsidies at the nursing homes. In recent weeks, 1,780 Singaporeans who opted out have changed their mind and opted back in again. For others who wish to do so, both ElderShield insurers have devised a simple process for these people to withdraw their Opt-out Forms, and still accord them auto-cover status so long as they inform the insurers of their new decisions before 30th September this year. On the time limit of 15th August 2002 to open a CPF account so as to qualify for auto-cover under ElderShield, I believe Singaporeans have been given ample time to do so since the publicity on ElderShield started in end June 2002. As at 15th August 2002, only 11 Singaporeans in the age group of 40 to 69 have come forward to open an account. There was therefore no need to extend the deadline beyond 15th August 2002.”
“As I said, the system has not changed compared to present practices. If there is a forgery or fraud and there is an investigation, then the investigation will determine who is at fault in the forgery or fraud. 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. ROAD TRAFFIC (AMENDMENT) BILL Order for Second Reading read. 6.05 pm”
“If there is any doubt with the cheque and it is dishonoured and sent back to the original drawer, then, of course, the person can verify whether the reason for the dishonoured cheque is valid or not - whether it is because of the date, insufficient funds or that the signature does not match, in which case he can go through the same processes today to get the drawer to re-issue the cheque. I do not think the processes of writing cheques and verifying cheques have changed by the process of introducing this new system. This is just a way of using technology to replace the human verification that goes on today in our automated clearing system.”
“The Association of Banks, in implementing this system, has taken relevant steps to bring this system progressively. This has been worked on for many years. We started in the middle of this year, and it will only be fully implemented around October this year. They have gone through the system. They have verified it. I agree with the Member that security is of the utmost importance, so that people have confidence in the system.”