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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“Mr Speaker, Sir, I thank the Member for speaking in support of the Bill. As I mentioned just now, MAS consulted widely with the industry and took in many of their comments. Generally, the industry is in support of the Bill. First of all, the proposed resolution powers are in line with major jurisdictions and, therefore, we are not out of line. Secondly, the anticipated levies for the PPF Scheme are not expected to be onerous and, therefore, will not affect the competitive position of our insurance sector. 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. SINGAPORE UNIVERSITY OF TECHNOLOGY AND DESIGN BILL Order for Second Reading read. 3.26 pm”
“Paulin Tay Straughan: Sir, I rise in support of this Bill which exemplifies the Government's commitment to protect the interests of policy owners. As a policy owner, I am much assured by the provisions stipulated in this Bill that will protect my interest should an insurer fail. May I ask the Minister if he can share with us the reaction of the Industry on the proposals specified in the Bill? Specifically, how do the new rules which enhance the powers of the MAS, affect the attractiveness of the Singapore market when compared to comparable economies like Hong Kong? Will these new regulations result in less attractive and more expensive insurance options for Singaporeans?”
“This is followed by payment or funding, as the case may be, that comes from the PPF Scheme for the policy liabilities of the failed insurer that are covered by the Scheme. This priority ranking also serves to strengthen the ongoing viability of the PPF Scheme. Priority will next be accorded to policy liabilities not covered by the PPF Scheme. Of the policy liabilities not covered by the PPF Scheme, policy liabilities in respect of direct policies will be granted priority over policy liabilities in respect of reinsurance policies. Removal of statutory deposit requirement Mr Speaker, Sir, the requirement for registered insurers to maintain a statutory deposit of S$500,000 with MAS will be removed. The statutory deposit, first established when the Insurance Act was enacted in 1963, was intended to provide some security for policy owners if an insurer were to be wound up, and to defray potential costs incurred in winding up an insurer’s business. This statutory deposit acted as a capital buffer, which is no longer relevant with the introduction of the Risk-Based Capital Framework for insurers in 2005. With the enhancements to the PPF Scheme, there is also no longer a need for a statutory deposit as a means of providing security for policy owners. Mr Speaker, Sir, the framework for the resolution of insurers contained in this Bill will enable MAS to act swiftly when dealing with a failing or failed insurer, so as to protect policy owners and maintain stability in the financial system. It will also enable the continuity of insurance coverage as far as reasonably practicable for policy owners. Mr Speaker, Sir, I beg to move. Question proposed. 3.23 pm Assoc. Prof.”
“This provides MAS the opportunity to check that proper due diligence has been exercised when determining the appropriate amount of assets to be transferred. To facilitate the smooth transfer of assets and prevent such transfers from being subsequently unwound, any claw-back mechanism available in the Companies Act will not apply to transfers of assets that have been directed or approved by MAS. The Bill also empowers MAS, with the approval of the Minister-in-charge of MAS, to make a determination on the transfer of share ownership of a Singapore incorporated insurer. This could be either through a compulsory restructuring of the share capital or a sale of existing shares to other investors. Before these powers can be exercised, MAS has to consider the interests of policy owners of both the transferor and transferee. The affected parties will be given a right to be heard prior to the Minister's approval of such a transfer, except where it is not practicable or desirable to do so. Powers for insurance resolution – post-liquidation Where an insurer has gone into liquidation, no person may be appointed as liquidator of an insurer registered under the Insurance Act without MAS' approval. To secure the continuity of insurance coverage, a liquidator of a failed insurer must either seek to sell or transfer the portfolios of the insurer or continue the business of the insurer until the portfolios are transferred. Amendment to the priority ranking of liabilities To be equitable to all insurers that have contributed to the Policy Owners' Protection (PPF) Scheme, the priority of claims following the insolvency of an insurer will be conferred first to outstanding levies due from the failed insurer to the PPF Scheme.”
“In preparing this Bill, MAS has consulted the industry and the public on the policy positions as well as on the draft Bill. The feedback received was carefully considered and has been incorporated into the Bill where practicable and consonant with its regulatory objectives. Mr Speaker, Sir, I will now touch on the key features of the framework for the resolution of an insurer. Powers for insurance resolution – pre-liquidation In the event that an insurer gets into financial difficulties, the existing Insurance Act allows MAS to direct the insurer to stop issuing or renewing policies to protect existing policy owners from any further deterioration of the insurer's financial strength. To achieve the objective of securing continuity in insurance coverage where reasonably practicable, MAS or the insurer may search for potential buyers for the business. In order to facilitate the transfer of policies from a failing insurer, MAS will have the power to direct such a transfer and, at the same time, a moratorium will be imposed automatically on any applications to wind up the insurer or commence legal proceedings against the insurer. This will widen the options available to MAS in seeking to secure continuity in insurance coverage for policy owners of a failing insurer. Continuity in coverage is especially important in respect of life policies as they tend to be long term. An early termination could cause substantial loss due to surrender penalties or the inability of the life assured to take up new insurance cover because of advanced age or deteriorating health. In the case where an insurer is voluntarily transferring its assets and liabilities, such a scheme will have to be approved by MAS before submission to the High Court for confirmation.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The House has just debated on the Deposit Insurance and Policy Owners’ Protection Schemes Bill (DI-PPF Bill), which will, among other things, strengthen protection to policy owners in the event of a failure of an insurer. In conjunction with the DI-PPF Bill, the Insurance (Amendment) Bill 2011 will amend the Insurance Act (Cap 142) to enhance MAS’ powers in relation to the resolution of a failing insurer. This will reinforce protection to policy owners. While MAS seeks to promote and preserve stability in the financial system through high standards of licensing, regulation and supervision, it does not aim to prevent the failures of all financial institutions. Such a "zero-failure" scheme is neither feasible nor desirable as it leads to considerable moral hazard and places an excessive regulatory burden on our financial institutions. When dealing with an insurer in distress, a private sector resolution option is often preferred by regulators. In the event that this is not possible, what is of utmost importance is the ability of the regulator to be able to take action quickly to protect the interests of the policy owners. The Bill will align the resolution powers in the Insurance Act with that in the Banking Act, providing MAS with a broader range of resolution options in dealing with a failing insurer. The Bill will also strengthen MAS' ability to make arrangements so far as reasonably practicable for securing continuity in insurance coverage when an insurer fails. In addition, the Bill will amend the priority ranking of liabilities where an insurer becomes insolvent or is unable to meet its obligations, and remove the requirement for insurers to maintain a statutory deposit with MAS.”
“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. INSURANCE (AMENDMENT) BILL Order for Second Reading read. 3.15 pm”
“The more comprehensive the coverage of the PPF, the higher the funds will need to be created and, therefore, the higher the levies. So, we need to have this balance and we have yet to establish the actual fund size and the levy structure. MAS will be consulting the industry both on the target fund size as well as the levies in due course. The aim of this Bill is to set up the structure but, in setting up the target size and the levies, we will be very mindful of this trade-off needed and also the basic principles in setting up the levies. This will be risk adjusted to be equitable to all the participants. Mrs Mildred Tan also asked whether the DI can be extended to investment products. This is something that we have considered and consulted with the industry and felt that we should not at this moment provide cover for investment products because that will entail higher costs because the nature of investment products entails a higher risk. At this juncture, it is better for people to understand the risks especially if they invest in complicated investment products and do not expect this to be insured by the DI. So, this is the position for the time being. On corporate governance: this is very important. There will be proper audit of the SDIC. The process will be that MAS will decide on the levies of the individual's scheme member participants depending on their deposit liability base and the SDIC will then collect the appropriate levies from them. And as MAS does its bank inspection, they will be able to check that these deposit liabilities that are declared by the banks and the finance companies are actually accurate and true. So, there will be proper processes to make sure that everybody who is participating pay up the correct levies. Question put, and agreed to.”
“Mr Speaker, Sir, I would like to thank the Members for their support of the Bill and for their comments raised. Let me address these comments respectively. First, Assoc. Prof. Paulin Straughan asked whether the PPF insurance will allow the transfer of policies from a failing insurer to another insurer. This, I think, is one of the key intentions. If the insurer fails, if there is indeed a willing buyer and allows the insurance policies to be transferred to this willing buyer, then, of course, we will try to facilitate it because this is a very neat solution. In the event that there is not a willing buyer, then, of course, SDIC has the option to establish a separate legal vehicle to continue with the coverage of the outstanding policies and let these policies, as a technical term, run off. Of course, if this is not deemed to be a good solution, then the third option is to pay off the policies. But we do recognise that for older policyholders, especially those with existing health conditions, finding a willing buyer is a better option or having a run-off is also a good option. Mrs Mildred Tan asked about the review timeframe. I think we established the key parameters of the Deposit Insurance Scheme on the level of coverage desired and, therefore, the review will really take place when we see the coverage dropping. So, we try to achieve between 80% and 90% coverage. When the Scheme was first started in 2006, it took us five years to review it and the significant increase is because of the increases in the level of deposits and we are now able to achieve 91% coverage. The second question is, of course, the cost considerations. I think this is a very important trade-off.”
“Should an insurer fail, one main concern for older Singaporeans is their inability to take up alternative insurance because of their advanced age and/or deteriorating health conditions. Is there provision in the Bill to ensure that they would be able to obtain equivalent new insurance cover?”
“This arrangement ensures cost efficiency and leverages on the SDIC's capabilities. Since its incorporation, the SDIC has established systems and processes to ensure that insured depositors can be compensated quickly in the event of a payout. The SDIC will collect premium contributions and levies from DI and PPF Scheme members respectively, compensate those who have been insured in the event of a payout as well educate the public on the DI and PPF Schemes. In addition, the SDIC will manage the DI, PPF Life and PPF General Funds. These three funds will be maintained separately and no inter-fund lending will be allowed. The Bill requires the SDIC and the funds to be audited, and for a copy of the audited financial statements, auditor's report and annual report of SDIC's key activities during the year, to be provided to the Minister. Sir, the proposed enhancements to the DI and PPF Schemes will strengthen the safety net for small depositors and policy owners. The enhancements have been carefully designed to achieve this objective, while keeping the costs of the Schemes manageable and preserving incentives for market discipline. Sir, I beg to move. Question proposed. 3.00 pm Assoc. Prof. Paulin Tay Straughan (Nominated Member): Sir, I rise in support of this very important Bill which serves to alleviate Singaporeans' concerns about the security of their saving deposits in financial institutions. This Bill is particularly timely as Singaporeans are still recovering from the financial crisis triggered by the failure of Lehman Brothers in 2008. I have one short query for the Minister. With regard to health and life insurance policies, my primary concern is with older policy owners.”
“General insurance policies will be fully covered with no caps, as general insurance policies typically indemnify losses as they occur and payouts are made based on actual claims incurred. As there is no relationship between the amount of losses and the level of sophistication of the policy owner, the moral hazard risk is lesser. Pre-funding In addition, the revised PPF Scheme will now be pre-funded, like the DI Scheme. Life insurers and general insurers will pay levies annually into the PPF Life Fund and PPF General Fund, respectively. A pre-funded approach is more equitable compared to a post-funded approach, as the failed insurer would have contributed to the fund prior to its failure. It will also expedite payout in the event that an insurer fails. Review and administration of the schemes Sir, the coverage limits and scope of the DI and PPF Schemes have been carefully calibrated to meet the objectives of these Schemes. These features will be reviewed from time to time by the MAS in consultation with the Singapore Deposit Insurance Corporation (SDIC). To facilitate changes that may arise from such reviews, the Minister-in-charge of MAS will be given powers to approve an increase in coverage for these Schemes, based on MAS' recommendations. In its review, MAS will have regard to the interests of depositors and policy owners, taking into account the costs to the Schemes, or the stability of, or confidence in, the financial system. If the increase is temporary, the Minister may also decide on the duration of the increase and the period of any extension. Sir, I will also speak briefly on the administration of the Schemes. The SDIC, which currently administers the DI Scheme, will also administer the PPF Scheme.”
“Currently, the PPF Scheme only covers life policies written by life insurers as well as compulsory motor third party injury and work injury compensation insurance policies. The PPF Scheme will be extended to cover all accident and health (A&H) policies written by life insurers and Singapore policies of specified personal lines written by general insurers. These specified personal lines are personal motor insurance, individual and group short-term A&H insurance, personal property insurance for structure and contents, foreign domestic maid insurance, and personal travel insurance. In addition, the PPF Scheme will be enhanced to cover 100% (up from the current 90%) of the liabilities of life policies, subject to caps. The increase in the level of coverage will help allay the concerns of policy owners, should they become anxious that their insurer may fail and seek to cancel their policies. Where the level of coverage is 90%, some policy owners may believe that they are better off getting back 100% of their policies' surrender values, rather than waiting for compensation under the PPF Scheme. But if the insurer does not fail, policy owners who prematurely surrendered their life policies may not be able to obtain equivalent new insurance cover, for example, due to advanced age or deteriorating health. The introduction of the aggregate caps, which did not exist previously, will mitigate the risk of moral hazard as it creates an incentive for policy owners to exercise prudence in their selection of insurers. In this way, the caps will help keep the PPF Scheme affordable. This approach is similar with the DI Scheme, which provides for 100% coverage up to a cap of S$50,000 per depositor per Scheme member.”
“This will mitigate potential cash flow problems of small business depositors in the event of a bank failure, which is in line with the Scheme's primary objective of protecting small depositors. Second, the maximum level of coverage under the DI Scheme will be raised from S$20,000 to S$50,000 per depositor per DI Scheme member. The separate coverage of monies placed under the CPF Investment Scheme and CPF Minimum Sum Scheme will also be raised from S$20,000 to S$50,000. With the increased S$50,000 coverage limit, the proportion of insured depositors that are fully insured will be raised to 91%. Gross payout In addition, under the enhanced Scheme, depositors will be paid the gross amount of their insured deposits up to the DI coverage limit, without first netting off their liabilities to the Scheme member. Gross DI payout contributes to greater confidence and stability in a distressed situation as it is easier for depositors to understand and is operationally faster. It also allows depositors to have quick access to the full amount of their insured deposits up to the coverage limit, mitigating potential cash flow difficulties they may face. If payout is on a net basis, a depositor who has a loan with the same Scheme member may receive partial payout, or no payout if his loan is larger than his deposit, thereby limiting the effectiveness of the Scheme in protecting small depositors. The depositor, however, still remains responsible for any liabilities owed to the Scheme member. The Scheme member's liquidator will be empowered to recover these liabilities from the depositor. PPF Scheme-Coverage Sir, let me now explain the enhancements to the PPF Scheme. First, the scope of coverage will be expanded.”
“This was sufficient to fully cover 86% of insured depositors when the Scheme was first designed, which was within international norms of 80% to 90%. A separate scheme – the Policy Owners' Protection (PPF) Scheme – exists to protect insurance policy owners. The PPF Scheme is provided for in the Insurance Act to compensate policy owners of life policies and compulsory insurance policies in the event that their insurer fails. The existing PPF Scheme covers 90% of the liabilities for life policies and 100% of the liabilities for compulsory insurance policies. The Scheme is currently post-funded. This means that PPF levies will be collected from PPF member insurers only when there is a payout following the failure of an insurer. The PPF Scheme provides policy owners with certainty as to how much of their policy monies will be protected and also whether the losses they have incurred from insured events will be compensated, should their insurer fail. Besides alleviating financial distress to individual policy owners, the PPF Scheme supports public confidence in the insurance industry and helps limit possible disruption to the economy. To ensure that the DI and PPF Schemes continue to provide adequate protection to depositors and policy owners, several enhancements are proposed. Mr Speaker, Sir, I will now go through the key provisions of this Bill. DI Scheme-Coverage There are two main changes to the deposit insurance coverage. First, the coverage of the Scheme will be expanded from insuring only individuals and charities to insuring all non-bank depositors. This means that deposits of sole proprietorships, partnerships, companies and unincorporated entities will be insured up to the coverage limit.”
“Sir, I beg to move, "That the Bill be now read a Second time." This Bill enhances existing protection schemes for depositors and insurance policy owners, and brings them together into a single piece of legislation. The Deposit Insurance Act which established the Deposit Insurance (DI) Scheme, as well as provisions under the Insurance Act relating to the Policy Owners' Protection (PPF) Scheme, will be repealed as a result. The proposed enhancements in this Bill will strengthen the protection of depositors and owners of insurance policies. In developing the enhancements, MAS consulted the industry and the public and, where appropriate, incorporated their feedback in the key features of the Schemes. MAS also took into consideration lessons learned internationally during the recent global financial crisis. Mr Speaker, Sir, I will first provide some background to the existing DI and PPF schemes. The DI Scheme in Singapore was implemented in 2006. It aimed to provide a basic level of protection to small depositors. A DI Fund, built up through regular contributions levied on the full banks and finance companies who are Scheme members, would help ensure that depositors can receive quick compensation on their deposits up to the coverage limit without having to wait for the outcome of the Scheme member's liquidation process. The Scheme was also designed to keep the cost of providing deposit insurance manageable, while preserving incentives for large depositors to continue to exercise market discipline. At present, the DI Scheme insures Singapore dollar deposits of individuals and charities in current, savings and fixed deposit accounts held with a full bank or finance company, up to S$20,000 per insured depositor per Scheme member.”
“If you look at the coffeeshop sector in Singapore, one can say that it is a competitive sector. There are no signs of monopoly or anti-competitive behaviour, so we should let the traders decide on the prices. And I think the RPWG has done a good job highlighting those stalls which have pledged to keep their prices stable for the next six months and encourage customers to patronise such stalls. FEASIBILITY OF NUCLEAR POWER FOR SINGAPORE (Update on assessment after Fukushima incident) 5. Mr Teo Siong Seng asked the Minister for Trade and Industry in view of the recent Fukushima nuclear fallout, whether his Ministry would provide an update on the status of the feasibility study for nuclear power in Singapore. 6. Mr Low Thia Khiang asked the Minister for Trade and Industry (a) whether the Fukushima nuclear power plant crisis in Japan has derailed the Government's decision to study nuclear energy as an option; and (b) whether the Government has assessed the risks to Singapore if ASEAN countries pursue nuclear energy options. 7. Mr Michael Palmer asked the Minister for Trade and Industry in light of the ongoing Fukushima nuclear power plant crisis in Japan (a) whether the Government would reconsider proceeding with a pre-feasibility study for nuclear power in Singapore; and (b) whether the Government would explore other sources of alternative energy instead of nuclear energy.”
“The Government will continue to monitor the external situation and ensure that there will not be any disruption to Singapore's food supply.”
“This gives consumers more choices. To date, the RPWG has also implemented various initiatives to help moderate the inflationary pressures consumers face. For example, the RPWG has worked with various supermarkets, such as NTUC FairPrice and Sheng Siong, to maintain the prices of various house-brands of essential food items for the next six months. Through the "I Support RPWG" label, the RPWG has helped identify businesses that have recently decided to maintain prices or provide promotions for their customers. About 1,000 food stalls in hawker centres and food courts are part of this initiative. This informs consumers of the range of affordable food options. It also helps to promote patronage of the stalls that are providing good value. To ensure food supply resilience in Singapore, Singapore has been actively pursuing the strategy of import source diversification. By buying from many sources, Singapore is better buffered against potential food shortages and to a lesser extent from food price volatility. The Agri-Food and Veterinary Authority (AVA) of Singapore has been leading food diversification efforts. They have also worked closely with International Enterprise Singapore (IE Singapore) to encourage companies to source food from a variety of sources and to enter into upstream sourcing, for example, through contract farming. This will provide better leverage over the food supply chains. Various sourcing missions have been carried out to diversify the sources of our food imports such as seafood, fruits and vegetables. To enhance the diversification efforts, a $10 million Food Fund was also launched in December 2009 to allow food companies to explore new food sources overseas, raise local farming productivity and enhance local farming capabilities.”
“Mr Speaker, Sir, I have covered my Ministry's response on the outlook for inflation in my earlier response. As a small and open economy, Singapore is obviously a price taker in the global market. With almost all of our food and energy needs imported, we are vulnerable to any increase in global commodity prices. However, the Government adopts various measures to mitigate the effects of higher inflation on households. One of the key strategies is to allow the Singapore dollar to strengthen. This would dampen the cost of imported goods including essential food items. But we are mindful that strengthening the Singapore dollar too much could hurt export competitiveness. Hence, the Government has also rolled out the "Grow & Share" Package to help Singaporeans cope with the rising costs of living. The initiatives include – Growth Dividends for all adult Singaporeans, with most getting between $600 and $800, Workfare Special Bonuses for those on Workfare, and a 20% rebate on personal income tax for Year of Assessment 2011, up to a maximum of $2,000. To help with specific household expenditures, there are also additional U-Save rebates of up to $360, rebates for service and conservancy charges of up to three months, and others. For the lower and middle income Singaporean families, the benefits they receive from "Grow & Share" are significantly more than the increase in costs they will face. The Government has also set up the Retail Price Watch Group (RPWG), headed by the Minister of State for Trade and Industry and Manpower Lee Yi Shyan, to keep a close watch on excessive price increases and anti-competitive behaviour from businesses in Singapore. The RPWG works with grassroots leaders to provide the public with information about competitive alternatives.”
“Mr Speaker, Sir, between the two developing situations, I believe the developments in the Middle East and North Africa still have several legs to work through. I do not think we are seeing the end of it yet. Whereas in Japan, the signs – hopefully – are pointing to stabilisation and maybe improvement from here on. It behooves us to be very vigilant because the situation in the Middle East and North Africa can turn for the worst, affecting oil prices and global growth, and affecting us, particularly in the cost of energy. As to the impact on our "pre-feasibility" study on nuclear energy, I think there are subsequent parliamentary Questions filed on this subject. I will let Senior Minister of State, Mr Iswaran, respond to those. IMPACT OF GLOBAL FOOD DISRUPTIONS ON SINGAPORE'S INFLATION 4. Mdm Cynthia Phua asked the Minister for Trade and Industry with the continued high oil prices coupled with the recent disruptions in food supply chains arising from natural disasters (a) what is the Ministry's projection on inflation for Singapore in the next six months; (b) what is the Ministry doing to mitigate the effects of inflation especially on essential foodstuff; and (c) what is the Ministry doing to ensure that Singapore is able to import food produce from alternative sources.”
“Mr Speaker, Sir, I think it is too early to tell. We have to do a deeper sectoral analysis on how this whole situation will pan out. It can work both ways. The need to rebuild and grow in Japan may require some repatriation of funds. At the same time, on the other side of the spectrum, Japanese industries may also want to diversify from their base in Japan. It is too early to tell which of these two trends will be the stronger trend.”
“Mr Speaker, Sir, as I had mentioned in my reply earlier, these assumptions were based on the current power disruptions in Japan. We expect the situation to stabilise and not deteriorate too badly in the coming months. In that case, the supply disruptions will be minimal and our companies have taken steps to find alternative sources for their supplies.”
“Growth for the year is expected to be in the range of 4% to 6%, unchanged from the forecast announced in February this year. Mdm Ho Geok Choo has also asked about the impact on inflation. Assuming no further escalation in global oil prices, we expect the full-year headline CPI inflation to stay within the current forecast range of 3% to 4%. This means that CPI inflation, which rose by 5.2% on a year-on-year basis in the first two months of 2011, is expected to moderate from here on. The Government will continue to closely monitor these external developments and the potential impacts on our economy.”
“A slowdown in tourism flows from Japan would thus affect our tourism-related industries. However, our preliminary assessment is that the impact is not expected to be significant at this juncture. Let me now turn to the political unrests in the Middle East and North Africa which have led to higher volatility in global crude oil prices. Crude oil prices, for example UK Brent, have risen from around US$100 per barrel at the end of last year to US$120 per barrel recently. Higher oil prices will lead to an increase in business cost. Certain sectors such as our transport and chemicals sectors will be affected more. It could also affect consumer sentiments and lower private consumption. Higher oil prices could also dampen global economic growth and affect us indirectly. At this juncture, the unrest in the Middle East and North Africa has not significantly affected global oil supply as the worst-affected countries such as Libya and Bahrain are not key exporters of oil. Moreover, some members of the Organization of the Petroleum Exporting Countries (OPEC) such as Saudi Arabia have made commitments to increase oil production to cope with any supply disruptions in the region. As such, although the recent increase in oil prices is likely to have affected global economic activities to some extent, the impact has been small. Barring any further deterioration in events in Japan, the Middle East and North Africa region, Singapore’s economic outlook remains positive. Early indicators of industrial production and exports point to growth continuing at a healthy pace. There are also signs that the recovery in the advanced economies is gaining momentum, as indicated by recent improvements in the US job market.”
“Sir, Mr Speaker, the situations in Japan, the Middle East and North Africa remain fluid, with a great deal of uncertainty. However, let me give my Ministry’s preliminary views based on current state of events. Japan, as we all know, is the world’s third largest economy, accounting for around 5% of global trade and 9% of world output. It is one of Singapore’s key trading partners, accounting for around 6% of our total trade with the world. As such, the recent developments in Japan will inevitably be of concern to the rest of the world, including Singapore. The immediate source of concern lies in the impact of the ongoing nuclear emergency and power outages on Japan’s industrial activities. As Japan is an integral part of the regional supply chain, particularly in the electronics and automobiles sectors, the near term output loss in the economy could have some spill-over effects on manufacturing and trade activities in the rest of the region. Much will depend on how prolonged the disruption to industrial activities in Japan will be. At this juncture, we do not expect significant impact on our supply chain. Less than 10% of our electronics imports – mainly components and parts – are from Japan. Feedback from our precision engineering firms also suggests that they have sufficient inventory buffers to tide over any supply disruptions for a few months. If Japan can resolve its nuclear power plant problems and factory production resumes in the near term, any negative impact on the supply chain will likely be transitory. The events in Japan could also have some implications for our services industries. Japan accounted for around 5% of the total number of visitor arrivals to Singapore in 2010.”
“Mr Speaker, may I have your permission to take Question Nos. 1 to 3 together?”
“Sir, I do not want to underestimate the complexity and the difficulties we face. Our approach is to take it at various levels: at the overall economy level, at the sectoral level, at the firms' level, at the workers' level. As the Deputy Prime Minister Teo Chee Hean explained, we take some issues which cut across different areas, so if it concerns the low-income group, we have another group to address it. Some issues can also be horizontal issues, like IT applications, so we have another scheme for it. As Minister of State Lee Yi Shyan explained, we have a very elaborate outreach programme to the SMEs through either the trade associations, which then gives us a very sectoral approach, or through the EDC which is a very broad-based approach. Ultimately, of course, the heavy lifting comes from the firms themselves. They must want to improve. There are a lot of schemes and we are open to suggestions how we can make the schemes more easily available to them. But I do not doubt the heavy lifting will, in the end, be borne by the firms and we hope that the firms will rise to the occasion. The impetus to all these is really competition. The companies must realise that this is the way forward. We are providing all these schemes, we are providing all the mechanisms and the help. If they do not restructure and change and others do, then the competition will come from the other companies who will do much better than them. In the end, that would be the main impetus.”
“Sir, as the Member correctly pointed out, there is a very strong trade-off involved. Our monetary policy is hinged on the value of the Singapore dollar, the exchange rate policy. At the same time, we do have other factors to consider – our export market, manufacturing as well as tourism and other sectors. But taking all these into consideration, so far, the Monetary Authority of Singapore (MAS) has a dual role unlike other central banks. Some central banks only have inflation as the key role but the MAS' role is to nurture stable economic growth, which means competitiveness as well as keeping the economy on a stable front, meaning also an inflation role. This is the balancing act that we will have to continue to meet.”
“Can the Minister elaborate on how existing efforts have been enhanced and how do companies, researchers and entrepreneurs stand to benefit from this plan? Prior to this plan, how successful have we been in reaping growth from investment in innovation? Can the Minister share a few success stories from this effort? 12.30 pm Innovation as key enabler”
“I agree with Ms Jessica Tan that we need a quantum step improvement in service excellence – visitors must go away with a happy experience. Productivity is not just about reducing the denominator, it is also about increasing the numerator – the value-add. And raising the service standards, in fact, allows us to also raise the value-add. Mr Chairman, let me conclude. Singapore is, in fact, in a very good position to tap the opportunities in a rising Asia. Our medium-term growth prospects are promising. However, constraints in labour supply compel us to raise productivity and make the best use of our resources. We therefore need to persevere in our restructuring efforts. We will then have an economy that will create a better quality of life for all Singaporeans. There are some cuts which overlapped with what we are going to talk about in SMEs, so I will leave to Minister of State Lee Yi Shyan to deal with this later. Innovation for growth Assoc. Prof. Dr Muhammad Faishal Ibrahim: Sir, the Prime Minister announced a $16.1 billion plan to boost research, innovation and enterprise over the next five years in September last year. The move to generate economic growth via innovation is certainly the right way to go for Singapore as a knowledge-based and innovation-driven economy. As a Member of Parliament, from time to time, I have met Singaporeans who would like to better understand how our investments in research, innovation and enterprise translate to benefits for Singapore and the man in the street. I would like to ask the Minister to elaborate on the key strategies under the $16.1 billion plan. What programmes have been rolled out under this plan?”
“We also need to anchor global players to improve the dynamism of our PE sector. This is not restricted to manufacturing but extends to the entire value chain. This is something that Ms Jessica Tan also raised – the need to have the entire ecosystem and the supply chain. An example is Kulicke & Soffa. This is a market leader in the manufacture of semi-conductor wire bonders. The company started operations here with a modest sales team in 1993, it has since moved on to include manufacturing and product management, and recently also made Singapore its global corporate headquarters. In the hotel industry, we face a different set of challenges. Based on the Singapore Tourism Board's (STB) study, our hotel industry's productivity level is comparable to that of Hong Kong. Here, our main challenge lies in attracting manpower for rank-and-file jobs in an already tight labour market. To raise productivity, more hotels have to improve their operational efficiency. They need to review systems and leverage technology to optimise manpower resources. An example of a hotel that has done so is Grand Park Orchard. It purchased passport scanning devices to facilitate guest check-ins, dispensing with the need for manual entries. In this way, their guest services officers are now able to check in a guest in two-and-a-half minutes compared to four minutes previously. To complement the move to improve operational efficiency, rank-and-file jobs in hotels need to be upgraded and redesigned to become higher-skilled ones with better remuneration. More Singaporeans will then be attracted to these jobs. For the hotel industry, high service standards are also critical.”
“At the third level – at the firm level – this is where much of the heavy lifting will be done and therefore the Government has enhanced the Productivity and Innovation Credit (PIC) to further encourage companies to invest in activities that foster productivity and innovation. The PIC will allow the individual firm to respond to the productivity call, so, in this way, we can reach out to a very broad base. Finally, at the individual worker level, it is also very important that workers continue to upgrade themselves and take advantage of the many avenues in our Continuing Education and Training (CET) system to do so. Assoc. Prof. Dr Muhammad Faishal asked about our plans for the various sectors such as construction, retail and F&B. I think in the MND debate yesterday we highlighted the roadmap for the construction sector, Deputy Prime Minister Teo has also provided updates and some examples from the retail and F&B sectors, so let me share with you two others sectoral examples: precision engineering and hotels. In precision engineering (PE), the level of productivity in the sector is only about 50% of that in developed countries such as the US, Germany and Japan. To catch up, our PE players have to move up the value chain. The industry needs to be transformed beyond one that supplies standard parts for local customers to one that designs and makes its own sophisticated final products for the export market. Meiban Group is a local PE player that has successfully made such a transition. They started off as a contract manufacturer of plastic products. It then began to pursue industrial design a few years ago. This has paid off. Meiban is now able to design and patent tools that have doubled the output of current equipment.”
“Dr Muhammad Faishal and Mr Teo Siong Seng, it is clear that Members share the view that productivity will be crucial to our ability to achieve sustained economic growth in the future. To achieve our productivity growth target of 2% to 3% per year, we have to achieve sustained productivity improvements at all four levels. At the economy level, we must move towards higher value-added sectors. This is part of the ongoing restructuring of our economy, shifting from low value-added activities to higher value-added sectors and growing new clusters. What I highlighted just now about the developments in our key clusters as well as the new clusters that are nurturing reflect this effort. Second, at the sectoral level, we must move up the value chain within existing industries. Efforts at this level recognise that each sector faces its own challenges and requires different solutions to improve productivity. This is something that Assoc. Prof. Dr Muhammad Faishal also highlighted. We will work with companies that have made headway in their productivity efforts. These companies will serve as productivity champions and help demonstrate the value of productivity improvements to the rest of the sector. The trade associations and chambers (TACs) have a key role to play as champions of productivity. We will engage the TACs through our Local Enterprise and Association Development (LEAD) programme which offers sectoral-based customised assistance that target unique industry needs. Mr Teo Siong Seng also highlighted the importance of engaging with the TACs and we intend to do so.”
“To be closer to their main markets, companies are relocating their logistic centres to Asia. This creates opportunities for us, too. Hitachi Data Systems, for example, found it too slow to ship products from the US to its growing customer base in Asia, so last year it opened a regional distribution centre in Singapore to aim for faster delivery. Mr Chairman, a competitive logistic cluster serves as an enabler for all our other clusters. So, to cement our position as a logistics hub, we are developing competency in new niches. For example, SATS recently launched Coolport, a facility that can store perishable foodstuff as well as heat-sensitive pharmaceutical products in a temperature-controlled environment. This will help us anchor new investments in biomedical sciences as well as other clusters. Our efforts in nurturing new clusters are also progressing well. For example, we foresee good prospects for clean technology which encompasses solar power, wind energy and others. Leading players like Vestas, Siemens and Bosch already engage in high-value innovation and manufacturing in Singapore. To strengthen our base, we have also set up public R&D centres specialising in clean technology. This includes the Solar Energy Research Institute of Singapore (SERIS) in NUS and the Energy Research Institute at NTU. All in all, clean technology is on track to add S$3.4 billion to our GDP. This is slightly over 1%, and generate an additional 18,000 jobs by 2015. Let me know turn to our third strategy which is to pursue productivity-lead growth. From the comments on productivity from Ms Jessica Tan, Assoc. Prof.”
“Using this database, the centre will be able to analyse how well its Asian-based clients are doing in HR management compared to their peers in the region. The database will also allow it to advise its clients on how their HR operations can be optimised. We are also helping companies access Asia-ready talent. Many companies have fed back to us that they lack managers who are ready for Asia; managers who understand the Asian business environment and are comfortable operating in Asia. So, last year, we launched the Human Capital Leadership Institute (HCLI) to develop business leadership capabilities in Asia. Come May, HCLI will roll out the Singapore business leaders' programme which will help prepare senior executives for regional leadership positions. Our second strategy is about strengthening Singapore's export base and diversifying our industrial portfolio. Let me share with you examples from some of our key clusters. In electronics, we have remained competitive by scaling the value chain. In the 1990s, we engaged in four-inch, six-inch and eight-inch wafer fabrication, now we have 12-inch wafer fab plants. As a result, our share of global semi-conductor output has risen from 6% to 11% over the past decade. The renewal process continues. We are developing deep capabilities in integrated circuits. These are vital components of portable devices such as laptops and handphones. Last year, we launched an Integrated Circuit Design Centre of Excellence in NTU called VIRTUS. VIRTUS specialises in developing technologies required for applications in medical technology, clean technology and consumer electronics. It also helps train talent in emerging electronic sectors such as power management and energy harvesting. In logistics, we are similarly undergoing a renewal process.”
“At the same time, Asian champions wanting to expand from their domestic base to other parts of the world will also find Singapore very useful. Our global Asia hub strategy is working. Take, for example, Applied Materials, a leading global semi-conductor equipment supplier. Last year it set up its first Asian semi-conductor equipment manufacturing plant in Singapore. Applied Materials expects 50% of its global semi-conductor equipment supplies to be manufactured here. The company also manages its regional supply chain out of Singapore. Hoya Surgical Optics is another example. It is world-leading manufacturer of intraocular lenses which are implanted in cataract patients. Hoya's presence in Singapore dates back to 2003 when it first set up a plant to manufacture intraocular lenses for global markets. Earlier this week, Hoya announced the relocation of its global headquarters to Singapore. The integration of its headquarters and manufacturing activities in Singapore will improve its overall operational efficiency and bring the company closer to the emerging Asian markets. To be a global Asia hub, our value is not just location. Our companies must also understand the business environment in Asia, they must know the business regulations, the demand conditions, have insights to consumer as well as HR best practices in various Asian markets. To support this, we are growing niche capabilities in our professional services cluster. PricewaterhouseCoopers, the fifth largest HR consulting player in the world by revenue, set up the Asia-Saratoga Centre here last year. The centre will develop a database of HR performance matrix pertaining to companies in Asia. Examples of such matrix include recruiting costs and workplace productivity.”
“If we take a longer-term view, we have done fairly well. Over the last five years, our GDP grew by 6.4% per year. Median resident household income grew by 2.6% per annum in real terms. For our residents, the average unemployment rate in each year over the last five years stayed within the range of 3% to 4.3%. This year, as we have forecasted, we expect the economy to grow by 4% to 6%. Over the medium term, our growth prospects remain positive. Emerging Asia will become a key growth engine and we can take advantage of the growth opportunities arising from that. Ms Jessica Tan, Mr Wee Siew Kim and Mdm Ho Geok Choo have asked how the Government is helping Singapore-based companies seize growth opportunities, become competitive and expand into Asia. Let me outline three key strategies to achieve this. They are: (i) to make a Singapore a global Asia business hub; (ii) re -position existing clusters and grow emerging ones; and (iii) p ursue productivity-led growth. 12.15 pm Our first strategy is to develop Singapore as a global Asia hub. The companies of today operate globally. Many site their activities across Asia and coordinate them from control towers. Control tower functions will include things like innovation, commercialisation, supply chain and talent management, amongst others. Our political stability, connectivity, access to talent and our educated workforce make Singapore a compelling destination for global and regional control towers. We, in fact, target three groups of companies: multinational corporations, global mid-sized companies as well as Asian champions. We can be a base for MNCs and global mid-sized companies to penetrate the Asian market.”
“Mr Chairman, let me thank Members for their comments. First, let me make some general remarks then I will deal with the issues raised. 2010 was indeed an exceptional year. Our economy grew by 14.5%. We had a strong recovery because we responded effectively to the 2008/2009 financial crisis. Our good performance also validated our economic strategies in the last decade. Let me highlight three lessons learnt. First, it validated our strategy of diversifying trade partners and growth clusters. This minimises concentration in any single market or industry, and smoothens economic volatility. Going forward, we can expect global economic volatility to remain a feature so diversification in our economy is of critical importance. Second, it reinforces our policy of welcoming talent who can contribute to our economy. This has helped us to anchor higher value-added activities that created good jobs for Singaporeans. Many of our sectors thrive because Singaporeans and foreign talent work together. Can you imagine our financial services sector or our manufacturing sector, our offshore trading sector, competing without the participation of foreign talent? This would be like competing with one hand tied behind our back. Third, our support for the internationalisation of Singapore companies. Due to our small domestic market, our companies have no choice but to expand overseas relatively early in their growth cycle. This is our karma. We are not a huge continental economy like the US, India, Europe or China. Our domestic market is limited and our companies have to go overseas. Later on, I will deal with the economic strategies specific to the next few years but I thought I should reinforce these three key fundamentals. We should not lose track of these fundamentals.”
“Mr Deputy Speaker, Sir, I beg to report that the Committee of Supply has made further progress on the Estimates of Expenditure for the financial year 2011/2012, and ask leave to sit again tomorrow.”
“Mr Deputy Speaker, Sir, may I seek your consent to move that progress be reported now and leave be asked to sit again tomorrow?”
“More bins are now sited in areas where migrant workers frequently congregate as well as in areas with high human traffic in housing estates; and (iii) Sustain community outreach programmes. This builds on existing partnerships with the Community Development Councils and Grassroots Organisations to introduce more outreach programmes, such as Litter Free Ambassador and the Cleanliness Ambassador. There are early indications that the campaign has been effective: (i) A 37.5% decline in the number of tickets issued for littering offences, from 32 per enforcement man-hour between January and May this year to 20 between June and October; and (ii) A 35% drop in the litter count recorded at 20 littering hotspots, from an average of 17 pieces of litter per five square metres of space to 11. We will build on progress made in arresting the littering problem by working more closely with the community to engender greater ownership for the cleanliness of our environment. (2) Notice To Attend Court. SEXUALITY PROGRAMME FOR SCHOOLS 8. Mr Terry Lee asked the Minister for Education (a) how effective is the sexuality education programmes in schools; (b) over the last three years, what is the trend in numbers of pregnant students (i) in schools; (ii) dropping out or changing schools; and (c) how can these programmes be further improved.”
“Dr Lim Wee Kiak asked the Minister for the Environment and Water Resources (a) how many littering offences in the past one year are committed by migrant workers; (b) what is being done to educate migrant workers on Singapore's anti-littering laws; and (c) what is the Ministry's assessment on the effectiveness of its anti-littering campaign so far. Assoc. Prof. Dr Yaacob Ibrahim: There were 11,378 tickets(2) issued to foreigners for littering in 2009. This constituted about 29% of all the tickets issued for littering offences caught in the year. NEA leverages multiple platforms to educate migrant workers against littering and committing other socially unacceptable behaviour such as spitting. These include: (i) Exhibition and quizzes in road shows held in dormitories. Some 170 roadshows were organised since 2008; (ii) Training courses conducted by the Ministry of Manpower (MOM) and the Singapore Police Force (SPF); (iii) Posters and banners publicising the penalties for littering, displayed in dormitories, construction sites and areas where migrant workers frequently congregate. Since 2008, some 1,000 banners and 60,000 posters have been put up island-wide; and (iv) Customised activities at district level, such as organised litter-picking by migrant workers. Examples include the "Keep North West Environment Clean & Hygienic" and "My Dormitory Shines! @ South West 2010". The national anti-littering campaign, launched in June this year, aims to tackle littering through three broad thrusts: (i) Increase visibility of enforcement. This involves deploying uniformed officers to areas where migrant workers frequently congregate, to deter littering; (ii) Deploy more litter bins.”
“Mdm Ho Geok Choo asked the Minister for Trade and Industry (a) how many investors were granted PR status under the Global Investor Programme (GIP) over the last three years and what was the cumulative amount of their investments; (b) where are these investors from and how many of them operate from Singapore; (c) what are the employment opportunities generated by these investors over the last three years; and (d) how does Singapore's GIP compare with those in other countries and whether our GIP guidelines are too stringent. Mr Lim Hng Kiang: The Global Investor Programme (GIP) is intended to attract entrepreneurs setting up business or investing in Singapore to make Singapore their home. With effect from 1st January 2011, a minimum investment of $2.5 million is required to qualify for the GIP. This is higher than the investment quantum required under the PR programmes in widely favoured locations such as Australia, Canada, US and UK, which are in the S$1.1 million to S$2 million range(1). Over the past three years, the GIP has attracted close to 1,000 investors who have invested over $1.5 billion either in an approved investment fund or directly in a business in Singapore. These investors are predominantly from North-East Asia and South-East Asia. Close to 100 have invested directly in businesses ranging from engineering, R&D, shipping, asset management and services and trading, creating some 1,500 jobs. (1) Australia (AUD$1.5 million/S$1.9 million), Canada (CAD$0.8 million/S$1.1 million), US (USD$1 million/S$1.3 million) and UK (£1 million/S$2.07 million). LITTERING OFFENCES AMONGST MIGRANT WORKERS 7.”
“The Singapore Tourism Board (STB) does not actively promote Singapore as a regional spa centre. Spa experiences are profiled only as one of the many visitor experiences that tourists can enjoy in Singapore, alongside shopping, dining, events and entertainment offerings. STB has been careful to profile only spas that have a sound business model and proven track record. Imposing prescriptive regulations can restrict business flexibility, reduce consumer choice, and potentially lead to higher costs for consumers. A better approach to protect consumers is to help raise their vigilance through consumer education and industry accreditation of spas. The Consumers' Association of Singapore (CASE) has, with MTI's support, launched the CaseTrust for Spa and Wellness Accreditation Scheme in April this year to raise consumers' awareness of spa standards and to put in place good business practices. These include giving customers a cooling-off period of at least five working days to seek full refund of payments made for packages, and not allowing sales pitch to customers during treatment. These measures will help obviate cases where consumers are pressured into buying packages. CASE is also currently looking into requiring financial soundness to be taken into account in the accreditation scheme. We will monitor the situation and refine our approach further, if necessary. GLOBAL INVESTOR PROGRAMME 6.”
“We understand that envelopes containing the complimentary tickets for the YOG volunteers were hand-delivered to the SingPost office in two batches, on 21st and 22nd September. The tickets eventually reached the intended recipients on 23rd, 24th and, after the F1 race, on 27th September. SingPost's investigations revealed that the second batch of tickets reached SingPost after the 5.00 pm collection time on Wednesday, 22nd September, and was treated as the next day's mail, which was Thursday's. SingPost also found that some of the mail items had to be repackaged and manually sorted because the packaging had became unsealed, and were of non-standard mail size, which could not be put through the automatic processing machine. Such manual handling would have reduced the prompt handling, postmarking and sorting of mail. Regrettably, some of the mail was only delivered on 27th September, after the F1 races, even though SingPost's delivery of Thursday's mail on the following Monday is consistent with the QoS requirement of delivering mail by the second working day. I understand that SingPost will work more closely with their customers to prevent recurrences, especially for important and urgent mail. COMMUNITY INTEGRATION FUND 17. Ms Audrey Wong Wai Yen asked the Minister for Community Development, Youth and Sports what has been the impact of the Community Integration Fund so far.”
“00 pm for mail posted outside the CBD. There are also other QoS standards set out for the local processing of foreign ordinary mail. These QoS standards are measured monthly, and IDA requires SingPost to submit QoS reports every quarter to show its compliance. Members of the public can also view postal QoS information on IDA's website. Postal operators who fail to comply with IDA's postal QoS standards would be liable for a financial penalty of either S$1,000 or S$5,000; depending on which QoS indicator was breached. To date, IDA has not imposed any financial penalty on SingPost as it has generally been able to exceed the postal QoS standards. For example, the QoS report for April-June this year showed that 99.5% of local mails were delivered to destinations within the CBD by the next working day, and 98.6% to destinations outside the CBD, exceeding IDA's requirement of 99% and 98% respectively. As an additional check, IDA actively monitors the complaints relating to the postal delivery service. From IDA's experience, the number of public complaints concerning postal delivery incidents has been low compared to the total volume of ordinary mail delivered by SingPost. For example, from January to June this year, there were 17 complaints to IDA, SingPost and the media on late or lost ordinary mail. During the same period, SingPost delivered about 384.7 million ordinary mail items. Nevertheless, IDA continues to work with SingPost to provide better levels of service and to meet the public's postal needs. With regard to the recent delayed delivery of F1 tickets to Youth Olympic Games (YOG) volunteers, SingPost had conducted an internal investigation into the matter.”
“Mr Baey Yam Keng asked the Acting Minister for Information, Communications and the Arts (a) what measures are in place to monitor local mail delivery time and ensure that it meets service levels; (b) if there have been more incidences of mail taking longer to reach their destinations; (c) what penalties Singapore Post is liable to if the service levels are not met and what have been imposed so far; and (d) if the recent late delivery of F1 tickets to YOG volunteers is due to slow processing by Singapore Post. RAdm [NS] Lui Tuck Yew: I thank the Member of Parliament for his interest in the postal delivery system and measures in place that safeguard postal delivery service levels. I would like to take this opportunity to provide a brief overview of the regulation of local mail delivery, the service levels we can expect and how they are safeguarded. Singapore Post, or SingPost, is designated as the Public Postal Licensee, and is required to comply with Quality of Service (QoS) standards that the Infocomm Development Authority (IDA), has set out for the delivery of local ordinary mail. This is defined as basic letters that weigh up to 500g. For destinations within the Central Business District (CBD), the QoS standards require 99% of local ordinary mail, posted before stipulated collection times, to be delivered by the next working day, and 100% to be delivered by the second working day. For destinations outside the CBD, the delivery standard is 98% by the next working day, and 100% by the second working day. The stipulated collection times for Mondays to Thursdays are 7.00 pm for mail posted within the CBD, and 5.00 pm for mail posted outside the CBD. On Fridays, the collection times are extended by one hour, ie, 8.00 pm for mail posted within the CBD, and 6.”
“Singapore is currently contracted with the Formula One Administration (FOA) to host the F1 race until 2012. FOA has the option to offer an extension for an additional five years. In the event Singapore decides not to take up such an offer, we will have to serve notice with FOA to terminate the arrangement, with the last race to be held in 2014. The decision to extend the contract arrangement beyond 2012 needs to be carefully studied. Our decision will be based on an assessment of the costs and benefits to the economy over the long term. These would include factors such as the projected attendance and overseas visitorship at future races, the impact on our tourism industry and other sectors, its contribution to Singapore's international branding, and how F1 would continue to fit in with the ongoing renewal and transformation of our tourism landscape. The Singapore Tourism Board will be studying this together with other Government agencies and the race promoter, Singapore Grand Prix Pte Ltd (SGP). Given the range of issues to be studied, the review exercise may take about a year to be completed. An announcement on the outcome will be made when ready. I would like to take this opportunity to thank Singaporeans and the many volunteers for their continued support for the F1. Our Government agencies and the race organisers will continue to work to further enhance Singapore's F1 night race which has gained the reputation of being one of the highlights on the F1 season calendar. We look forward to the continued support of Singaporeans and all stakeholders as we prepare to host the race in 2011. LOCAL MAIL DELIVERY TIME (Late delivery of F1 tickets to YOG volunteers) 15.”
“Since 2008, Singapore has successfully hosted three Formula One (F1) night races. The first two races in 2008 and 2009 brought in a total of more than $260 million of tourism receipts, attracted 70,000 international visitors constituting about 40% of race attendance, and were watched by a total of more than 195 million "live" television viewers worldwide. The figures for Year 3 have not been finalised but preliminary estimates place this year's international visitorship at about 40,000, close to Year 1 levels. Overall, the event has helped to brand Singapore as a premier lifestyle destination to a global audience. The race has given Singapore good international exposure and it continues to enjoy strong support locally and internationally. Beyond the headline figures, the event has also brought significant benefits to businesses and the local community. With the influx of international visitors, tourism-related businesses have benefitted from the F1. In particular, many hotels reported significantly higher occupancy rates of over 90% whilst charging a premium for rooms over the F1 weekend. The event also provided a networking platform for businesses with many taking up hospitality suites to host partners and clients at the race. This year, the Singapore Exchange organised a conference at the sidelines of the race to bring together potential investors in the Asian motorsports industry. Within Singapore, the F1 has fuelled local interest in motorsports, creating opportunities for close to 1,000 local enthusiasts to serve as volunteer race marshalls. It also provided training opportunities for more than 1,000 ITE students who were subsequently deployed as street guides and event officials at the circuit park over the race weekend.”