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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“In this way, affected lessees will not lose out as a result of the compulsory acquisition. Sir, in addition to the three main amendments I have touched on, the Bill also includes administrative changes to enhance HDB's enforcement of public housing rules and policies. The Bill empowers the Minister to make rules to regulate the carrying out of renovation in properties sold by HDB to ensure compliance with building and safety regulations. This is provided in clause 4. Next, the Bill empowers the Minister to make rules to require that all agreements for private sales of HDB flats shall be in a prescribed form and that all other forms of agreement shall be void. The purpose of this amendment is to protect both buyers and sellers of HDB flats. Another amendment aims to curb speculation by providing that Sales and Purchase Agreements entered into before the seller has occupied the flat for the minimum occupation period shall be void. To improve operational efficiency, the Bill allows HDB to appoint a wider group of persons to sign conveyancing documents on its behalf. This is in clause 2. It also streamlines the procedure for the appointment of HDB's Chief Financial Officer as this post is similar to HDB's other Heads of Department in that all are responsible to the Chief Executive Officer, who in turn is responsible to the Board. Furthermore, the Bill allows HDB, with the approval of the Minister, to enter into and carry out agency agreements that do not relate to housing or building ancillary services. Sir, I beg to move. Question proposed.”
“The Bill proposes to remove such protection in cases where HDB flats are wholly owned by Singapore PRs. We want to restrict the scope of the Act in so far as the issue of immunity from insolvency law is concerned to make a distinction between Singapore citizens and Singapore PRs. The amendment will cover all Singapore PR flat owners regardless of when they might have purchased their HDB flats. However, it will apply only to persons who are declared bankrupt after the commencement of the amendment Act. The third change is the acquisition of HDB flats for the purpose of the Main Upgrading Programme - clause 7. The Bill also seeks to incorporate a new provision in the Act to confer upon HDB the limited power to acquire individual strata units within HDB buildings for the specific purpose of implementing the Main Upgrading Programme (MUP). This will be necessary in order to build additional features in some MUP projects. For example, in blocks with no void decks, the ground floor units may need to be acquired and cleared in order to set up communal facilities not provided for in the past, such as a kindergarten or an old folks' corner. Let me assure Members that compulsory acquisition will be carried out only after careful evaluation of the various possible options. Furthermore, the final decision lies with the residents of the block in question who will vote for the MUP package that they prefer. The flats will be acquired only if 75% or more of eligible voters are in favour of a particular upgrading package which involves such acquisition. HDB will give the affected lessees a fair compensation package based on market value similar to that given under the Selective En-Bloc Redevelopment Scheme.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, the Bill seeks to amend the Housing and Development Act in three main areas: first, to empower the HDB to raise loans inside and outside Singapore through the issue of bonds and other financial instruments; second, to remove insolvency protection attached to HDB flats in cases where the flats are wholly owned by Singapore permanent residents; and, third, to confer upon HDB limited power to acquire individual strata units within HDB buildings for the specific purpose of upgrading the buildings. First, the issue of bonds - clause 8. The Bill seeks to enhance HDB's flexibility to raise loans from a wider range of sources in any way it deems advantageous. At present, HDB's development programmes and operational requirements are financed mainly by Housing Development Loans provided by the Government. With the passing of the Bill, HDB will launch its first bond issue in the later part of this financial year to fund part of its housing development programme. By tapping the bond market, HDB can reap the benefits of a more efficient financing structure that closely matches its development expenditure needs. The issuing of bonds by statutory boards will also help broaden and deepen the Singapore bond market, adding to its diversity. Let me now turn to the protection of HDB flats owned by Singapore permanent residents - clauses 6 and 10. The present Act protects all HDB flats whether owned by Singapore citizens or Singapore permanent residents (PRs) from being vested in the Official Assignee following the bankruptcy of their owners. It also provides that no HDB flat shall be sold by court order to satisfy a judgment debt.”
“We need to be realistic and recognise that ultimately the external environment must improve before an enduring economic recovery in Singapore can take place. Nevertheless, the Government will take the necessary steps to help alleviate some of the short-term pain as the economy adjusts to the shock of the financial crisis. On the exchange rate policy, the Monetary Authority of Singapore has been managing the Singapore Dollar exchange rate with greater flexibility. The objective is to maintain price stability with a view to ensuring the conditions for sustainable economic growth. On fiscal policy, the Government is pursuing somewhat more expansionary policies, for example, in increased spending on economic infrastructure. However, because our economy is so dependent on external demand, we cannot hope to pull ourselves out of the downturn by just stimulating domestic spending. Thus, the main focus of the Government's response is on reducing business costs in Singapore, with a view to sustaining our competitiveness. The Committee on Singapore's Competitiveness is undertaking a comprehensive review of measures to reduce business costs decisively and its recommendations will be ready by the end of the year. SCRAP VALUE OF CARS (Refund in cash) The following Question stood in the name of Dr Wang Kai Yuen - 10. To ask the Minister for Communications whether the Government will consider refunding in cash the scrap value of a car being scrapped.”
“The Asian financial crisis has indeed become globalised. Through the inter-linkages of the financial markets, the crisis has affected even countries with strong policy regimes such as US and Europe. President Clinton himself has acknowledged that this is the "biggest financial challenge facing the world in half a century" . Among the G-7 countries, there is a greater sense of urgency and the recognition of the need for action with respect to the crisis. However, there is no reason to be unduly pessimistic. The US economy remains robust and Europe continues to grow strongly. In their latest meeting on 3rd October, the G-7 nations have also expressed their commitment to promote financial stability and global economic recovery. The US, Canada and UK have pledged to maintain conditions for sustainable growth. The continental European nations have committed to implementing urgent structural reforms and reducing unemployment. Such measures will form the basis for a continuation of solid economic growth in the industrialised countries and thus support recovery in the rest of the world. Despite Singapore's strong fundamentals, we will not be insulated from developments in the world economy. This reflects the high degree of openness of the Singapore economy. In fact, external sources of demand account for almost two-thirds of the total demand for our goods and services. Should the financial crisis worsen and lead to a widespread downturn in global economic activity, the expected recovery in Singapore and the rest of the Asian region will be postponed. Given our small size and heavy dependence on demand conditions in global export markets, we are restrained in our ability to pursue specific unilateral policy initiatives.”
“I do not have the figure with me. But even if I do, I am not likely to release it. GLOBAL FINANCIAL CRISIS (Monetary policies and measures to stave off adverse repercussions) The following Question stood in the name of Mr Tay Beng Chuan - 9. To ask the Deputy Prime Minister (a) whether the financial crises spreading over Russia and Latin America together with the near-collapse of the US hedge fund Long-Term Capital Management signal a possible global financial crisis; and (b) what monetary policies and measures Singapore intends to put in place to stave off any adverse repercussions.”
“As at 31st August 1998, the six local banking groups had exposure of S$37.3 billion (or 15% of their total assets) to Malaysia, Indonesia, Thailand, Korea and the Philippines. Excluding the assets of Thai Danu Bank acquired by DBS in March 1998, the total exposure of the six local banking groups was S$31.3 billion. This is a 16% drop from the December 1997 figure. The non-performing loans of the six local banking groups to these five countries amounted to 17% (S$5.9 billion) of their loans to these countries as at 31st August 1998. As a percentage of the local banks' total loans, the ratio was 2.7%. Including domestic loans and other global loans, the total non-performing loans of the local banks amounted to 6.1% as at 31st August 1998. In view of the public's and market's interest in the level of non-performing loans of the local banks, MAS will release such data henceforth on a quarterly basis. The Singapore banks' non-performing loans in the region are likely to rise. The banks have set aside substantial provisions for this reason, and are likely to make further provisions so as to maintain their conservative stance towards possible loan losses and to preserve market confidence. The level of non-performing loans, present or projected, does not threaten the financial health of any of the local banks.”
“Mr Speaker, can I have your permission to take Question Nos. 7 and 8 together?”
“When the SES suspended trading on the market in 1985, because of the Pan-El crisis, that decision was also criticised by many investors. MALAYSIA'S CURRENCY CONTROL MEASURES 5. Mr Chng Hee Kok asked the Minister for Trade and Industry what is the extent of the impact of Malaysia's currency control measures on our economy. 6. Dr Lee Tsao Yuan asked the Minister for Trade and Industry whether Malaysia's imposition of capital and exchange controls will have any adverse effect on economic cooperation in ASEAN.”
“As I have said earlier, a decision to suspend trading is something that you do not take lightly. In fact, SES has suspended trading on the market for only three days in 1985, and that is to SES' credit that we keep the market open. That is the role of the Exchange, ie, to keep the market open. As long as there is equal information available to buyer and seller, the role of the Exchange is to keep it open. The Exchange only suspends trading if it is assessed that there is inequity in the availability of the market information. In this case, buyers and sellers were operating on the same level playing field. The announcement was made by the Malaysians. It is up to you to decide whether to buy or sell and whether you are going to make money or lose money. For every seller, as long as there is a buyer, there is a basis for the market. But if SES feels that the information is only available to one group and not to the other group, then, of course, to be the referee, it ought to suspend trading on the market. So such conditions were not there on 1st September and there was no reason for SES to suspend trading on the market.”
“First, there was a lot of uncertainty. The KLSE was changing rules practically every other day. So there was a lot of uncertainty and confusion. Second, there was a great premium to get out of the market. As Members could see, the difference between the share prices in Clob and the KLSE prices widened to 49% and even at the end of the trading, it ended at 42%, which shows there was a high premium. Singaporean investors have decided that they wanted to get out of it and they wanted to take their proceeds in Singapore dollars. Under such circumstances of uncertainty as well as a high premium on getting out and having the proceeds in Singapore dollars, it was not obvious to SES that people were trading below the value of KLSE just because they thought that their shares were worthless. The interpretation is that Singaporeans wanted to get out their proceeds in Singapore dollars and therefore were prepared to accept the heavy discount.”
“With hindsight, it is always possible to raise these questions. These events took place rather rapidly, and as the market adjusted it was not possible for SES to intervene and make an announcement and unsettle the market. When the announcement was made about the rules for Clob, SES responded by saying that it would remain open and it would trade as long as there is demand for its services. When the currency controls were imposed and the differences started to widen between the two markets, it became obvious, as the days went on, that they could not arbitrage any more. Therefore, the very vital feedback link was no longer there and you were just trading within yourselves without taking advantage of the price changes in the KLSE. That is why on 4th September, SES decided that it was no longer possible to continue with Clob and had to suspend trading and close down Clob. You do not make that kind of decision immediately. You have to weigh the pros and cons and you have to assess the impact. You do not immediately close Clob. What happens if that was the wrong decision? Then investors would be disadvantaged. I think it is fair for SES to make its decision after consultation with all the players and after assessing the impact of the currency controls. His next question was why SES did not tell the investors that their shares were not worthless. I think SES did not realise that Singaporeans thought that their shares were worthless. These were controls imposed by KLSE. If you are an informed investor, you know there is an omnibus account, of which your own stocks can be migrated to the KLSE MCD. Therefore, there is no reason for Singaporeans to think that their stocks were worthless. There were two things happening in the market during that period.”
“But once the Malaysians decided on currency controls, then they are prepared to accept the disadvantages of not having Clob, in having lower liquidity, etc. They are prepared to take that loss in furtherance of their overall currency controls and, under such circumstances, Clob cannot exist any more.”
“When the Malaysians first made the announcement, as SES explained in the press statement, SES could not straightaway close the market. There was no reason for it to do so. As Members will remember, subsequently, the Malaysians also imposed currency controls and, as a result, that removed the arbitraging between the Singapore Clob and the KLSE. When that happened, it became obvious that Clob could not continue any more and that is why SES suspended trading to make the announcement that trading would continue for another five days, after which the nominee accounts would be migrated to the KLSE. I think SES has responded correctly at every stage. The key issue is when to suspend trading on stock exchanges. This is something that you cannot take lightly and I think SES made the right decision in providing an orderly and free market so that investors can trade in the securities. But when conditions became clear that it no longer could trade any more because the arbitraging between the two exchanges could not take place, SES had to suspend trading and close down Clob. This explains the about-turn. It is not just the closure of Clob but also the imposition of currency controls. Mr Low also asked why it took one week. This is because of the announcement subsequently by the Malaysian government on the currency controls. His third question was, if we knew that Clob could be closed, why did we not take measures to prevent it. SES has explained that Clob exists only to service investors. As long as there is a demand for its services, there is a reason for Clob to exist. Clob also services the Malaysian investors by providing liquidity and more volume. So it is a win-win situation for both sides in having Clob.”
“Investors increasingly appreciate our AAA country risk rating, and the transparent, predictable and open business environment that Singapore offers. We are therefore confident that despite difficulties and occasional setbacks, Singapore is strengthening its position as a financial hub in the region.”
“1% of overall GDP2. Clob represented about 24% of the SES' turnover at that stage. But more recently from June 1998 to August 1998, Clob's share had declined to only 3-8% of the total turnover in the stock market. Moreover, since the closure of Clob trading of Malaysian shares, some retail investors have channelled their interest into Singapore shares3. 2 In 1997, the share of the stock market in the financial services sector was 9.9%, and the financial services sector in turn had a share of 11.4% in overall GDP. 3 For the period from 1st September 1998 to 15th September 1998, the average daily turnover of Singapore shares was $190.3m. This has increased to $201.1m during the period from 16th September 1998 to 30th September 1998. Over the years, the SES has taken steps to develop the market for local and foreign shares. Clob is not a market solely for trading Malaysian shares, although because of historical reasons and investors' familiarity, the bulk of the trade on Clob has been in Malaysian shares. The SES will continue its developmental efforts to provide investors with a broad range of options for trading of Asian shares. Singapore's financial sector provides a wide range of services and products, and serves a large pool of investors, borrowers and financial intermediaries. The regional crisis has shrunk the volume of financial activity, but the sector has remained resilient. Some financial activities have continued to grow despite the slowdown. A recent Bank for International Settlements survey found that daily turnover in the Singapore foreign exchange market has increased by 32% since 1995, whereas turnover in the other major Asian financial centres declined. SIMEX is also experiencing a record year in trading futures contracts.”
“Even after the SES had given repeated assurances to investors that their shares were not worthless, shares on Clob continued to trade at a deep discount1 to prices on the KLSE. Once the Malaysian measures were announced, nothing the SES did could prevent a decline of share prices on Clob. Many investors evidently preferred to sell their shares on Clob and receive the proceeds in Singapore dollars, rather than wait to dispose of their shares on KLSE and retain their proceeds in Ringgit accounts in Malaysia for one year, as required under the new Malaysian rules. 1 On 28th August 1998, Clob shares were traded at a discount of only 9% on average, compared to the prices of the shares on the KLSE. Following the amendment of the Malaysian measures on 31st August 1998 and 1st September 1998, the discount on Club prices widened to 49% on 3rd September 1998. Club was suspended from trading on 4th September 1998, and subsequently reopened for 5 trading days from 9th to 15th September 1998. At the end of the trading period, the discount on Clob shares averaged 42%. As at 31st August 1998, 197,000 investors held Malaysian shares on Clob. 90% were Singaporean investors. Many Clob investors sold their shares after the Malaysian measures were announced, including 24,000 who sold all their Malaysian shares. They would have made losses. But for every seller there was a buyer, hoping to make a gain by buying the shares and subsequently selling them on the KLSE. Most such investors, be they buyers or sellers, were Singaporean. The closure of trading of Malaysian shares on Clob is a loss to Singapore's financial sector, but the loss is not significant relative to the size of the financial sector. In 1997, the stock market accounted for 10% of the financial sector's value added, or 1.”
“Mr Speaker, Sir, the recent closure of trading of Malaysian shares on Clob, after Malaysia imposed capital controls and new rules on the clearing and settlement of Malaysian shares, has highlighted the risks of investing in shares. There is a price risk inherent in any share. But in addition, shares listed on overseas exchanges are subject to regulatory risk arising from changes in rules by the overseas exchange. The Government cannot protect investors from such risks. Investors have to keep their eyes open and judge for themselves whether the returns are adequate to justify the risks. The Malaysian government's opposition to trading of Malaysian shares on Clob is long standing, and has always been reported in the press. When the SES established Clob in January 1990, after Malaysia unilaterally delisted all Malaysian shares from the SES, the KLSE objected strongly. It declared publicly that Clob was an unrecognised market, and warned investors of the dangers in trading Malaysian shares on Clob. As recently as August 1998, the National Economic Action Council of Malaysia called for the closure of Clob. The SES responded that Clob would remain viable only so long as there is demand from investors for its services. This exchange was widely reported in the press, and put investors on notice of Malaysia's intentions. The SES has issued a statement explaining why it did not stop trading of Malaysian shares on Clob earlier, for example, immediately after the KLSE announced its new rules on 31st August 1998, or even before that. It apologised for not reassuring investors earlier than 7th September 1998 that the Malaysian actions had not made their shares worthless. However, this omission did not make a material difference to Malaysian share prices on Clob.”
“A total of 283,000 HDB flats were transacted during the period 1993 to 1997, comprising 127,000 transactions involving new flats and 156,000 resale flat transactions. The number of new HDB flats sold was 19,600 in 1993, 24,000 for 1994, 28,800 in 1995, 26,500 in 1996 and 28,200 in 1997. For resale flats, the number of resale applications approved was 20,500 in 1993, 30,400 in 1994, 30,800 in 1995, 38,900 in 1996 and 35,100 in 1997. WRITTEN ANSWERS TO QUESTIONS NEW AND RESALE PRIVATE PROPERTIES 1. Mr Yeo Guat Kwang asked the Minister for Law how many private properties, both new and resale, were transacted during the period 1993 to 1997.”
“The exact area that was cleared for the construction of the service reservoir is 11 ha. This area was specifically chosen to minimise the impact on the nature reserves. It consists of young forest with no key forest species. After the project is completed, about 7.5 ha will be fenced in as a protected area. The remaining area, which consists mainly of slopes, will be turfed to reduce erosion and reverted back to natural vegetation. NParks will speed up the regeneration by planting back with native plants to reforest the site, wherever possible. As to the Member's query on whether the area of the nature reserves should be increased to compensate for the land to be taken up by the proposed water storage facilities, MND has no plans to do so. Firstly, the present case is an exceptional one and the land take has been minimised significantly. Secondly, the size of the nature reserves has to be determined by the value of the bio-diversity contained in it as well as the overall balance of competing requirements for land in Singapore. It is therefore not a sacrosanct constant that has to be maintained. I would however like to reassure the Member that NParks will monitor and safeguard the integrity of the nature reserves, wherever feasible. CONTROL OF AIR SPACE 23. Mr Chuang Shaw Peng asked the Minister for Communications whether the proposed change in control of air space in southern peninsula by Malaysia will affect in any way our national security and airport services.”
“Under the current planning guidelines, residents are allowed to use their residential properties for start-up businesses so long as the businesses do not employ persons outside the households. However, they are not allowed to use their HDB flats as the registered addresses for their businesses. My Ministry recognizes that advancements in IT have brought along increased opportunities for businesses to operate from home, and thereby reduce business costs. HDB will work with relevant Government authorities to review its regulations with a view to facilitate the use of HDB flats for start-up businesses, particularly for those in the IT industry. NATURE RESERVE LAND 22. Mr Simon S C Tay asked the Minister for National Development what is the exact area of protected nature reserve land that was cleared for use for water storage facilities and if he will consider increasing the remaining nature reserves to compensate for the area so used.”
“The Main and Interim Upgrading Programmes were introduced as part of the measures to share the nation's wealth with Singaporeans. They are highly subsidised and are funded from budget surpluses. Thus, it would not be appropriate to speed up the programmes in view of the current economic uncertainty and the fact that the Government is likely to incur budget deficits in fiscal years 1998 and 1999. At present, MND is preparing its FY99 budget plan for submission to the Ministry of Finance. Given the budgetary constraints, we have to manage our limited financial resources carefully according to the country's priorities. These priorities will take into account, amongst other things, what are the most effective measures to stimulate the economy, and will be coordinated across the various ministries in a concerted effort to achieve maximum impact. USE OF RESIDENTIAL HOUSES FOR START-UP BUSINESSES 21. Dr Lee Tsao Yuan asked the Minister for National Development whether, in light of the objective of promoting entrepreneurship, regulations regarding the use of residential housing for start-up businesses can be relaxed, particularly for businesses in the IT industry.”
“Sir, as at 30th June 1998, HDB has a waiting list of about 110,000 applications on its registration system. 43% are first-timers and 57% are upgraders. Compared with 145,700 applicants in June 1997, the waiting list has dropped by 25%. With the current waiting list, the average waiting time for first-timers is 2� years from the submission of an application to the invitation to select a flat. It will take another 2 to 2� years for the selected flat to be completed. The Government will build 30,000 units this year to cater to the people on the waiting list. About 22,000 units will be allocated to the first-timers and 8,000 units to upgraders. Upgraders who take delivery of their new flats would release their existing flats to the resale market. In the first six months of 1998, the resale volume was 28,200, of which 10,600 were sellers who are moving into new HDB flats. Resale HDB flats will remain an alternative option for HDB flat buyers who prefer not to wait for their flats. 1.30 pm”
“Mr Speaker, Sir, under HDB's prevailing policy, flat applicants under the Registration for Flats System may switch to a smaller flat type if they have not been shortlisted to select their flats. However, this is subject to meeting the eligibility criteria and a 3-month setback in their registration numbers. For applicants who have already been shortlisted to select their flats, HDB does not normally allow changes to be made to the flat-type and zone applied. However, in view of the current economic downturn, HDB will consider such applicants' requests to downgrade to purchase a smaller flat type, on a case-by-case basis. Their registration numbers will similarly be set back by three months. SHORTLISTED HDB FLAT APPLICANTS (Retention of original queue position for downgraders) 5. Mdm Claire Chiang See Ngoh asked the Minister for Manpower what is the breakdown in terms of gender, age, industry, types of courses and amount of benefits received, of employees who have benefited from the Skills Redevelopment Programme; and if the subsidy does not cover the full amount of the training programme, what options an interested party has in order to obtain funding to cover the difference. 6. Mdm Claire Chiang See Ngoh asked the Minister for Manpower whether there are plans for skills redevelopment programmes to be offered to workers who have been retrenched and, if so, what kind of training will be offered for what kind of jobs. The Minister for Manpower (Dr Lee Boon Yang): Mr Speaker, Sir, Questions 5 and 6 are on a similar subject. May I have your permission to take both Questions together?”
“Our rental tenants belong to the lower income group and therefore HDB takes an even more sympathetic approach towards these families. Our rental arrears are higher than the loan instalment arrears because these are from the lower income families. But we do not evict people unnecessarily. We take great pains to let them stay in the HDB flats and, unless it is absolutely necessary, we do not evict our rental tenants. SHORTLISTED HDB FLAT APPLICANTS (Retention of original queue position for downgraders) 4. Mr Ang Mong Seng asked the Minister for National Development whether the Housing and Development Board (HDB) will consider allowing HDB flat applicants who have been shortlisted and wish to downgrade, due to the current economic slowdown, to retain their original queue position.”
“The HDB's policy on this is very clear. You are only allowed to own one HDB property.”
“If a family falls behind in its loan repayments, HDB will have to serve the necessary notice. This is the first warning to them, and then they come forward, and we work together. By deferring serving the eviction notice, I do not think you are helping the family adjust to its present circumstances.”
“This is part of the various measures which HDB has. If a family has over-extended themselves by buying a bigger flat than they could really afford, especially with this economic downturn, and it is quite clear that they cannot continue to service the loan, HDB would help them to sell off their flat if they are eligible to sell it off, and buy a smaller flat. Dr Tan Boon Wan: Mr Speaker, Sir, eviction notices are fearful messages to receive, especially to a person who is already down in the dumps, enveloped by a sense of gloom and helplessness. Will the Minister ask the HDB to thoroughly investigate each case to assess its merits before eviction notices are issued? Now is the time when understanding and compassion are appropriate. Households will be extremely grateful to the Board for their support to help them overcome their difficulties. I have no qualms with the Board taking harsh actions against those who try to abuse the system.”
“As I said earlier, the percentage of loan arrears has gone up by a very small percentage compared to nearly half a million mortgage loans that we administer. HDB takes a very positive and helpful attitude towards all home owners. It is our objective to let them keep their flat, own their flat, and we try our best to help each case that comes before us to reschedule and to make the payments, to stretch it over a longer time. The number of cases where we actually take back the flats is very few.”
“I do not have the exact number. But if my memory serves me, probably five or seven last year.”
“Under one of the schemes which I have outlined earlier, we first give them an initial period of six months and then, if they still face difficulties, we give them a further period of six months. And we work very actively with them to see how they could reschedule the loans, how they can make use of the ballooning scheme, how they can include additional family members to help pay for the loan. So our experience, both in the 1985/1986 recession, as well as all these years, is that servicing the mortgage loans for HDB flat is never really a big problem.”
“The five measures which I outlined earlier have been very effective. Very few HDB mortgage cases require us to repossess the flats. As of today, the percentage of arrears of mortgage loan instalments has increased only slightly from 1.9% in May to 2.1% in June. So the situation is still very much under control and HDB takes a very helpful approach to the mortgage loans.”
“If the loans are rescheduled, then the whole loan is recomputed.”
“HDB adjusted the interest rates for its housing loans on 1st July 1998. The public rate was raised from 3.58% to 4.39% in line with the upward revision of CPF interest rate. The market rate was also increased by 1% from between 5.25% and 5.75%, to between 6.25% and 6.75%. While the interest rate adjustments affected some 440,000 households with outstanding mortgage loans, the increase in the monthly loan instalment was $40 or less for 60% of the households. HDB has in place various financial assistance measures to help lessees who have difficulties in servicing their monthly mortgage loan instalments. These measures are: (1) Allow lessee to pay the mortgage loan arrears by instalments within a reasonable period; (2) Allow lessee to reschedule the mortgage loan repayment period up to the maximum repayment period that they are eligible for; (3) Allow lessee to defer payment of loan instalments for an initial period of six months. The deferment may be extended for another six months, if necessary; (4) Allow lessee to convert the loan scheme to an easy repayment scheme. Under this scheme, the monthly instalment for the first five years is set at 75% of the normal monthly instalment. The monthly instalment will then be recomputed from the sixth year to the end of the repayment period based on the outstanding loan at the beginning of the sixth year; and (5) Advise lessee to include a working family member as a joint owner if the latter meets the eligibility conditions. This will enable the family to use the CPF monies of the new lessee to pay for the arrears.”
“Mr Speaker, Sir, since Questions 1, 2 and 3 are related, can I have your permission to take them together?”
“For rental flats, a total of 2,169 tenants were in arrears for three months and more as at May 1997: 732 tenants were from the 1-room flat; 1,169 tenants were from the 2-room flat; 247 tenants were from the 3-room flat and 21 tenants were from the 4-room flat. This is 3.7% of the total 58,342 rental units under management. For sold flats, as at May 1997, a total of 6,412 lessees were in arrears of three months and more: 2,340 cases were from the 3-room or smaller flat lessees; 2,567 cases were from the 4-room flat lessees; and 1,505 cases were from the 5-room and Executive flat lessees. This is 1.5% of the total 414,983 units with outstanding loans. FUNDING OF SOCIAL SECURITY SYSTEM 11. Mdm Claire Chiang See Ngoh asked the Minister for Community Development what plans are in the pipeline to broaden the criteria for obtaining funding in our social security system to strengthen the capacity of disadvantaged families and individuals to cope with the economic downturn as well as the needs of Singaporeans in the 21st century.”
“The Urban Redevelopment Authority is looking into the relocation of the Heavy Vehicle Park at Pasir Ris N4 and the possible replacement sites. The MP for Pasir Ris GRC will be informed once a replacement site is found. ARREARS OF RENT AND MORTGAGE PAYMENTS TO HDB 10. Mr Low Thia Khiang asked the Minister for National Development how many people were in arrears of rent or mortgage instalment payments for at least three months as of May 1997, by types of flats.”
“To cater to the demand for heavy vehicle lots in Punggol South, URA will be expanding the existing heavy vehicle park (HVP) at the junction of Hougang Avenue 7 and Tampines Road (Site 1 in Annex II (Cols. 745-746)) . This will add another 288 lots to the HVP, bringing the total to 453 lots. The expansion works will be completed by the end of this year. Annex II - HEAVY VEHICLE PARKS (HVPS) (Cols. 745 - 746) While Sengkang and Punggol Towns are still under development, sites have been safeguarded in Sengkang DGP to provide for HVPs to cater for future demand. RELOCATION OF HEAVY VEHICLES PARK IN PASIR RIS 9. Mr Ahmad Mohd Magad asked the Minister for National Development if the Urban Redevelopment Authority will consider relocating the Heavy Vehicle Park at Pasir Ris N4 to another suitable site, away from the residential blocks along Pasir Ris Drive 4, in order to enhance safety when the new Pasir Ris Community Club is built.”
“HDB allows subletting of its leased commercial and industrial premises. In the case of commercial premises, no subletting fee is charged. Instead, lessees have to pay an administrative fee of $200 for the processing of the application to sublet the premises. In the case of subletting of HDB leased industrial premises, which are mainly industrial land leases, HDB charges a subletting consent fee, except in cases where the subtenants are wholly-owned subsidiaries of the lessees. This is because HDB's industrial land is not tendered out to the highest bidder, but is allocated to deserving industries, with the support of the EDB. The industrial land is intended for the industrialists' own manufacturing activities. Thus, it is reasonable to impose a subletting consent fee to ensure that the premises is essentially owner-occupied. HDB's subletting fee structure is similar to that used by JTC. Under this structure, the minimum subletting fee is $1,000 per annum. So far, about 37% or 200 of HDB's industrial lessees have sublet their excess space to unrelated companies. JTC has recently reviewed its subletting fee structure which will benefit new subletting cases as well as renewals. Essentially, the subletting fee will be moderated depending on the plot ratio of factory development (ie. the higher the plot ratio, the lower will be the new subletting fee compared to the current fee). The minimum subletting fee will also be reduced from $1,000 per annum to $500 per annum. HDB will, similarly, be reviewing its fee structure to be consistent with JTC. PARKING SPACES FOR HEAVY VEHICLES IN PUNGGOL 8. Mr Yeo Guat Kwang asked the Minister for National Development whether his Ministry will consider increasing the number of parking spaces for heavy vehicles in the Punggol area.”
“Secondly, the inspections can only be done at reasonable times and only after giving a notice under the hand of the Director at least six hours before the intended exercise of the power. Thirdly, the inspecting officer must produce an identification card, when requested. The United States and Canada have similar laws to empower their officers to enter premises for pest surveys and inspection. In summary, the Bill aims (1) to safeguard the health of Singaporeans with respect to fresh fruits and vegetables brought into Singapore and protect our plant trade through the control of pests; (2) fulfil Singapore's WTO obligations; and (3) allow PPD to overcome resource constraints and focus its resources on more critical areas. 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. CONTRIBUTION BY FOUNDING FATHERS (Motion)”
“The outsourcing of inspection for the issuance of phytosanitary certificates is allowed under the International Plant Protection Convention which is the reference point for the WTO on international standards, guidelines and recommendations on plant health. The United States has already taken advantage of this provision to introduce a scheme to accredit private companies to carry out such inspections. With modern transportation methods allowing pests and diseases better chances of surviving international travel, another critical function of PPD is the prevention or the containment of any inadvertent introduction of pests and diseases that could be detrimental to our plant trade. Operationally, PPD needs to enter private premises, such as farms, nurseries and warehouses to detect pests and, if need be, carry out eradication tasks. Based on data gathered, PPD would evaluate the impact on our trade in plants and plant products and decide whether import restrictions should be imposed and take remedial actions such as eradication operations. Early detection will provide us the opportunity to eradicate a pest before it is established. Current legislation presumes the entry of private premises by authorised officers to carry out pest surveys. In practice, if permission is denied, no entry can be made. Section 20 of the Act is therefore amended to give PPD powers to enter any land or premises to conduct inspection surveys in order to ascertain the presence of pests and to gather the necessary data to determine the need, cost and scale of any pest eradication, control or quarantine actions to be taken. However, to address possible abuse of such powers, certain safeguards have been built in. Firstly, the officer must be an "authorised" officer.”
“Under section 15A, the Director of Primary Production is obliged to take reasonable steps to protect certain confidential information received by him in relation to applications for registration of innovative pesticides and not to use the information to process other applications for registration of pesticides. Section 15B describes the circumstances where the obligations under section 15A do not apply. Secondly, the new sections 30(4) and 31(A) have been introduced to fulfil Singapore's obligations under the WTO Agreement on Import Licensing Procedures. The WTO Agreement on Import Licensing Procedures places certain obligations on WTO members with regard to the administration of import licensing procedures. These obligations are aimed primarily at promoting transparency and fairness. Section 30 requires the Director to provide the application with written reasons if he refuses to issue or renew the licence or permit applied for under the Act. New section 31A allows any person aggrieved by the decision of the Director regarding the grant, renewal, suspension or revocation of a licence or permit, to appeal to the Minister. Mr Speaker, Sir, my Ministry has also reviewed PPD's current operational needs. Clauses 9 and 15 will provide PPD the flexibility to carry out its operations with greater effectiveness. To allow PPD to overcome resource constraints and focus its limited manpower on the critical areas, clause 9 proposes amendments to section 26 to provide PPD the flexibility to outsource less critical operations to the private sector. These operations include the inspection of plants and plant products for the issuance of phytosanitary certificates; and the analysis of imported fresh fruits and vegetables for contaminants.”
“coli 0157:H7, an organism causing severe food poisoning and the Mediterranean Fruitfly, an insect that is detrimental to our trade in fruits. To allow PPD to impose sanitary controls, clause 2 provides a new definition of "tranship" and clause 5 re-enacts Part II of the Act to require a person who wishes to tranship fruits or vegetables through Singapore to obtain a licence, and also a permit for individual consignments of fresh fruits and vegetables. There is also a need to enhance the competent authority's control on imports of fruits and vegetables. New section 7 requires an import permit for individual consignments on top of the licensing requirement in the existing Act. With the two-tier control system of licences and permits, PPD will have the flexibility to impose and enforce conditions on both imports and transhipments. Under new section 30, PPD can restrict an import or transhipment immediately by withholding the licence or permit in respect of sources of fruits and vegetables when evidence is received of any disease outbreaks or other hazards related to fruits and vegetables and which may be brought into Singapore through import or transhipment. This speed of action is necessary as the jet age has allowed goods to be transported between countries in a matter of hours. Sir, I now turn to fulfilling Singapore's obligations to the various WTO Agreements. Mr Speaker, Sir, the next major feature is how to fulfil our obligations. Firstly, clause 6, incorporating new sections 15A and 15B, is proposed to comply with our obligations set out in Article 39 of the TRIPS Agreement.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Control of Plants Act was enacted in 1994 to consolidate legislation relating to plants and plant products. To fulfil Singapore's obligations under the Agreement on Trade-Related Aspects of Intellectual Property Rights, or TRIPS Agreement, the Inter-Ministry Committee on the TRIPS Agreement recommended legislative amendments to various Acts including the Control of Plants Act. My Ministry and the Primary Production Department (PPD) have taken this opportunity to review and update the existing Act. Sir, the main changes to the Act concern three areas: One, regulating the import and transhipment of fresh fruits and vegetables to safeguard the health of humans; Two, fulfilling Singapore's obligations under TRIPS and other WTO Agreements; and Three, improving PPD's operational effectiveness. I shall now go through and explain the rationale of the three main changes. First, regulating the trade in fresh fruits and vegetables. To address increasing concerns about the safety of the food Singapore imports, the Bill enhances the powers of the competent authority to impose conditions on the transhipment and import of fruits and vegetables. Stringent controls are also necessary to protect Singapore's trade in plants and plant products. Under the existing provisions of the Act, PPD has no legal power to impose or enforce any conditions on transhipment of fresh fruits and vegetables. This poses a potential health hazard as such products, although not meant for local consumption, may introduce harmful micro-organisms and pests into Singapore. Examples of potential threats are E.”
“Tenants who opt to rent the replacement units will be allowed to pay existing rental rates on a per square metre basis for the remaining term of their existing tenancies. Thirdly, industrial tenants will be given a two-month rent-free fitting-up period. This period will be extended to six months for Singapore citizen tenants.”
“Last year, HDB announced the redevelopment programme for its industrial estates. The main objectives of the redevelopment programme are to provide better facilities that will meet the operational requirements of the industrial tenants as well as to optimise the use of industrial sites. The current HDB industrial properties are sorely in need of redevelopment. Many of these were built many years ago and do not meet the industrial needs of today - for example, the electrical capacity is insufficient and there is no provision for heavy vehicles like container trucks. If we do not do anything, the premises will not be able to meet the industrialists' requirements and, over time, they will be less and less competitive. As such, the Industrial Redevelopment Programme has to continue. Since HDB's redevelopment programme is mainly concerned with re-housing its industrial tenants and the total number of units that it manages is less than 10% of the total stock of industrial space in Singapore, the programme will not contribute to an over-supply of industrial space. With regard to Defu Industrial Estate, it is currently not due yet for redevelopment. HDB will give the tenants sufficient notice before it is due. In addition, HDB will provide various measures to help industrial tenants relocate to new premises during this economic downturn. These measures include firstly, an ex-gratia compensation of $48,000 per unit for industrial tenants affected by relocation. Secondly, an option will be given to industrial tenants to either purchase or rent the replacement units. Prices will be kept at affordable levels by selling the replacement units at a shorter lease period of 30 years. Singapore citizen tenants will also be given a 5% discount of the market price.”
“In which case, the charges would double. SINGAPORE GENERAL HOSPITAL (Calculation of B2 ward fee) 5. Mr J B Jeyaretnam asked the Minister for Health whether he will explain how the full cost of $142.00 for a day's ward fee for B2 wards in the Singapore General Hospital is calculated.”
“Obviously, Mr Low does not walk around his housing estate. When he says within 3 km, he is talking about right in the middle of his housing estate. Most of us have constituencies where heavy vehicle parks are within our housing estates, and it is not possible to find more and more of such places. This is premium space and we have 2,500 on the waiting list. There is no way that they are going to get the lots. So the guy who has got a lot, he is enjoying a premium. We have to make the adjustment. It has been nine years since we raised the fees. Our costs of operating these heavy vehicle parks have gone up and we are making a small adjustment up and we are hoping the private sector will also make a small adjustment down, and then the market can work its way to allocate the supply and demand appropriately.”
“Mr Chuang is right. We are beginning to see more and more lorry drivers installing bikes on their heavy vehicles, especially on a prime mover, and this makes a lot of sense. If a driver is operating on a late night shift, he parks in the industrial estate nearest his home and he cycles home. I think there is no way that we can meet the demand for a lorry driver to have his lorry parked next to his home. It causes a lot of inconvenience. They start up their vehicles at 5 am and they disturb the estate. So we have to have properly designated heavy vehicle lots, both within our housing estates as well as outside the housing estates, and let the market pricing mechanism settle the preferences of individuals on wherever they want to park.”
“We do build heavy vehicle lots but there is a premium on land within the housing estates. And this is a historical situation where drivers of heavy vehicles have got used to the convenience of driving their heavy vehicles within the housing estates and sometimes park in the private housing estates next to the HDB estates. As Members will remember some 7-8 years ago, we made it mandatory for them to park in designated lots and not park illegally along public roads. This is an anomaly. If one is a driver of a tour bus, he is not allowed to bring his tour bus to his housing estate. There are designated parking lots for tour buses. Similarly, if a person is a driver of an SBS or TIBS bus, he does not drive his bus to his housing estate. But for heavy vehicles, we have this historical practice and therefore we are slowly moving away from this practice, and requiring the heavy vehicle drivers to park their heavy vehicles either in the factory or in the industrial estate where their vehicles are operating and then take public transport back to their homes. Mr Chuang Shaw Peng (Nominated Member): Sir, I understand that many lorry drivers work in shifts and they sometimes finish work very late. Usually, they carry a bicycle at the back of their lorries so that they can cycle home. Can the Minister look into the issue of how to improve the transportation from the heavy vehicle parks to the HDB estates? I believe that people choose the nearby heavy vehicle parks because they can ride their bikes to their homes. If it is more than 5 km, it probably takes an hour to ride the bike home.”