Lim Hwee Hua
Singapore
“Mr Chairman, Sir, I believe the Minister for Finance has actually addressed that quite adequately in the Budget Statement. I will encourage the Member to read the Hansard. As I recall, he did say that our projections for revenue have been made for the next five years and we do not target a particular source of revenue.”
“Mr Speaker, Sir, I would encourage the Member to file a question for MCYS, if she would like to discuss safeguards further. What I would comment here is that at the outset when we conceived the whole Integrated Resorts idea, there were many business risks: whether it is country risk or the timing of the business cycle and so on.”
“Mr Speaker, Sir, the supplementary questions raised by Ms Denise Phua have actually been debated to some detail under the different heads, in terms of the intended strategy – why we are having Integrated Resorts and casinos in the first place. This has been debated quite extensively by the Ministry of Trade and Industry.”
“Madam, I take the Member's point about the need for checks to be done professionally, and indeed this is the case, and that is why the officers would be sufficiently trained to conduct these checks in a professional manner.”
“The proposed amendments are necessary in order to effect the new financing framework, to allow for greater contestability to be injected into the RTS industry, as well as to ensure security and continuity of the RTS operations. Madam, I beg to move. Question proposed. 4.28 pm”
“Because of the complexity of the issues and the need for us to continue consulting other players who have already been operating in that space, as well as consulting the business community in greater detail, the study would take the better part of this year. OUTCOME OF 50PLUS EXPO 6.”
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“Mr Chairman, Sir, I believe the Minister for Finance has actually addressed that quite adequately in the Budget Statement. I will encourage the Member to read the Hansard. As I recall, he did say that our projections for revenue have been made for the next five years and we do not target a particular source of revenue. We look at it holistically.”
“The keen competition for accounting talent across industries in Singapore and internationally is a key challenge for us, given the limited number of local accountancy graduates each year. A deep talent pool is critical to the development of Singapore into a leading global accountancy hub in Asia. Therefore, we need to develop the Singapore-branded, post-university professional accountancy programme. The new qualification programme (QP) will be an additional option for accountancy graduates. And the QP will be comparable to other internationally recognised programmes. More importantly, the QP will also provide a pathway for graduates from non-accountancy back grounds to enter the profession. This will help us to enlarge the talent pool and attract persons of diverse professional backgrounds from Asia and around the world. Finally, the point about uses for the Accountancy Sector Development Fund. This will be established under the purview of the SAC to support the implementation of the recommendations and also to improve the capabilities of the accountancy services sector. On our part, the Government is prepared to provide seed funding to build up the fund so that it can start off on a strong footing. And some of these will revolve around building value-adding capabilities for specialisation pathways as well. Sir, I have elaborated in my speech on how MOF will take a comprehensive approach towards its key focus of ensuring a high performance and accountable Government, fostering a favourable environment for business, and to develop capabilities in the accountancy sector.”
“Sir, based on the record last year, LTA's data shows that more than 85% of the expressway traffic incidents are cleared with less than 20 minutes of delay caused to affected motorists, so that is the experience so far. Where there is casualty, then it varies substantially depending on the scale of the pile-up or the incident. As regards public education, certainly that is an area where it is, again, a multi-agency approach and that will continue with LTA working with the Traffic Police as well as with the school children because that is a main group of concern as well. Currently, we have the traffic management channel which provides "live" data and feed to motorists who use the navigational systems, so they can be informed, too, about which are the roads to avoid in the event of an incident. FARE REFUNDS TO BUS COMMUTERS 15. Dr Lim Wee Kiak asked the Minister for Transport following the recent errors in calculation of distances travelled by buses (a) how many commuters or EZ- Link card holders were affected; (b) whether there is a more convenient alternative for less literate commuters such as senior citizens, who may not know how to use the ticketing machine to receive their refunds; and (c) what are the lessons learnt from this incident and how can we prevent it from occurring again.”
“Mr Speaker, Sir, I would encourage the Member to file a question for MCYS, if she would like to discuss safeguards further. What I would comment here is that at the outset when we conceived the whole Integrated Resorts idea, there were many business risks: whether it is country risk or the timing of the business cycle and so on. Many things could have gone very wrong too. But having taken the decision, we then planned for the best possible model. At the same time, we ensured that all the adequate safeguards are in place. We stand ready to move with additional safeguards should there be clear evidence that there is an increase in gambling addiction. IMPACT OF RISING COE PRICES ON UNIT BUSINESS COST 9. Mr Arthur Fong asked the Minister for Trade and Industry what would be the impact on unit business cost in Singapore as a result of the rising cost of Certificates of Entitlement in recent times.”
“Mr Speaker, Sir, the supplementary questions raised by Ms Denise Phua have actually been debated to some detail under the different heads, in terms of the intended strategy – why we are having Integrated Resorts and casinos in the first place. This has been debated quite extensively by the Ministry of Trade and Industry. As for the safeguards, the House has just heard earlier about how we have in place the exclusion orders as well as the entry levies and so on. These are the different measures that we have in place to ensure that the industry will progress as intended. At the same time, the extra revenue collected by the Government will go towards funding the Government's programmes. As for those collected by the Tote Board, they will be added to the surplus for the benefit of the community at large.”
“Madam, I take the Member's point about the need for checks to be done professionally, and indeed this is the case, and that is why the officers would be sufficiently trained to conduct these checks in a professional manner. As to the frequency, as I mentioned earlier on, under normal circumstances, this will be conducted on a random basis. But if there is heightened alert, the pattern will necessarily have to be changed. I would like to assure her that there are safeguards in place, including the audits. 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. – [Mrs Lim Hwee Hua]. Bill considered in Committee; reported without amendment; read a Third time and passed. CENTRAL PROVIDENT FUND (AMENDMENT) BILL Order for Second Reading read. 5.03 pm”
“In the event that there are new requirements, then the inter-agency Public Transport Security Committee will study carefully the cost implications and the allocation of costs across the public agencies, the operators and the other stakeholders. Madam, I believe I have answered most of the questions. Assoc. Prof. Paulin Tay Straughan: Thank you, Mdm Deputy Speaker. I am sorry to belabour this point but I thought it was important to follow up on the bag checks. We live in an era when we are so used to bag checks now but still I think the way it is done is so important. I want to ask the Minister if the proposed checks will be random, where every hundredth person will be checked, or based on some kind of profiling. That is what I am concerned about. Generally, we live with these kinds of inconveniences now because we accept that we are not picked out unnecessarily. There are two modes of doing bag checks. Sometimes, it is just random and you know that every fifth or tenth person would get checked, and so you just play along. Or sometimes, checks are done for every person, and so everybody complies to facilitate the process. What I am worried about is if there is some kind of selective profiling that goes on behind the scenes. That is where we need to handle it with sensitivity. The officers must be trained adequately. As the Minister mentioned, checking would be done in public so public humiliation is something that I am very concerned about.”
“Thirdly, LTA, the Public Transport Security Command (TransCom) and the PTOs themselves also conduct regular checks and audits on the transport security officers to ensure that they are performing the duties correctly and professionally. I should add also that the transport security officers who conduct bag checks at the RTS premises are licensed security officers who have undergone the Security Workforce Skills Qualifications' training and certification programmes, so they are sufficiently well-trained and will be professional. Let me now move on to Ms Sylvia Lim's comments. I would like to correct a point that she has asserted. Firstly, I would like to state that the legislative changes are not a belated response to the breach at the Changi Depot as asserted by her. In fact, since 2004, the provisions have already been in place. Transit security officers have already been deployed at MRT stations and bus interchanges since mid-2004 to enhance security and to deter potential attacks. The reason we are making these changes is really to ensure that emphasis is given to powers granted to authorised persons to conduct bag checks at MRT premises. It also serves to highlight the serious nature of these offences and to this end, the maximum penalties for these offences have also been raised from $500 to $1,000. As to whether the enlarged coverage will lead to increased cost burdens: this is currently the case where the PTOs are already maintaining these facilities, so there is no real material change except a formalisation of what is already in place. These facilities that I mentioned are really integral to the connectivity to the station as they provide access to the commuters. It is therefore justifiable for the PTOs to maintain them.”
“Dr Lim has asked when all bags will be checked. In a normal situation, bag checks will be conducted on a random basis. However, if there is heightened alert, both the deployment of transport security officers and the frequency of bag checks will be increased. He also asked whether commuters can bring drinks and food onto the train. They are generally allowed to bring drinks and food onto the train but they are not allowed to consume them. Under the RTS regulations, the operators have the right to prevent any items which they deem to be a nuisance or are offensive to other commuters from being brought into the train. An example of this will be durians. Let me now move on to the other aspects about whether the amendments to the security provisions would be applied to the existing operators as well. Yes, this will be the case. In fact, as of today, the operators already have in place extensive security measures on the ground and this amendment will not add undue additional security burden on the operators. In any case, fares, as I have mentioned earlier on, are regulated by the PTC and commuters will not be required to pay any more for any increase in security costs. Assoc. Prof. Straughan has asked whether there are safeguards in place to protect innocent individuals from the effect of this new section. Let me assure her that there are currently safeguards in place. Firstly, bag checks are conducted in the open view of the public and in areas which are under the surveillance of CCTVs. Secondly, transport security officers are required to document details of the checks conducted: the time, the date, who they have checked.”
“And by taking on ownership of all the RTS operating assets, LTA will be able to undertake integrated and holistic long-term planning for the entire RTS network, including planning of new lines, and effect the timely purchase of more assets such as trains to enhance the carrying capacity of existing lines. LTA is also in a better position to plan for the long-term needs as it will be privy to much of the planning data as part of its strategic transport planning function. As of today, the operators are already responsible for the operation and maintenance of the operating assets and under the new financing framework, this responsibility will not change regardless of the ownership. As I said, LTA has in place a rigorous set of asset management requirements to be complied with by the operators, failing which they will be penalised. But, really, the interests of the owner and the operator are closely aligned. The operators, who have to run these trains 18 to 19 hours a day, seven days a week, 365 days a year, will continue to have a huge stake in ensuring that they continue to do a good job in maintaining the assets for their own reliable rail operations. There is certainly scope for integration considerations. In fact, the Bill provides for LTA to take into account system integration when exercising its powers and statutory functions. LTA, as Members would know, has taken over the role of the central bus network planner and, therefore, can take a holistic approach when planning the bus and RTS networks. Network efficiency will be optimised from the commuters' viewpoint by ensuring seamless transfers and shorter overall journey time. Madam, let me now move on to the last section on security, a point which several Members have raised.”
“In arriving at this new rail financing framework, we have closely studied models used in many other cities around the world such as London and Melbourne where rail licences are similarly short. For profitable lines, the operators will bid in the form of an annual contract payment to the government. Likewise, for lines which are expected to be loss making, the government will ask the operators to bid for the subsidy which they will require from the government. Typically, there are also risk-and-reward-sharing mechanisms in these licences. Our financing model has been adapted from the lessons learnt around the world to suit our own local conditions and cost principles between the Government and the operators. The framework has been set up to maximise the benefits of contestability with sufficient regulatory oversight and safeguards to ensure the long-term sustainability of our system. Specifically on the questions of the Sinking Fund: the sources and the use of the monies in the Fund have been spelt out clearly in the Bill. LTA has the statutory obligation to ensure that all monies meant to enter this Fund are separated from the other general monies held by LTA. Dr Lim is concerned that with the Government taking over the ownership of the assets that replacement and upgrading might be slower or might suffer. I would like to assure him that this will not be the case because as asset owner, LTA will be responsible to monitor the status, the serviceability and the adequacy of operating assets. It will put in place an asset management framework to ensure timely and cost effective replacement and upgrading of assets.”
“Madam, let me assure the House that fares will not be affected by the transition to the rail financing framework. Public transport fares will continue to be regulated by the Public Transport Council with the fare adjustment formula based on the wider macro-economic indicators such as national inflation and wage increases and, therefore, will have no bearing on the specific operator's costs. Let me address now some of the specific questions raised with regard to the new framework. The first relates to contestability. Let me elaborate just a bit more about the safeguards against overbidding. In structuring the tender, we will place emphasis on both the quality and the financial value and sustainability of the tender proposals. This will ensure that the tender bids are competitive and, at the same time, realistic and provide us with the assurance that the operator that wins the tender will be able to ultimately deliver the service as expected. The service standards on the RTS will continue to be prescribed via the Operating Performance Standards (OPS) in the RTS licensing regime. There will also be stringent maintenance requirements on the operator and key performance indicators that they will have to fulfil so as to ensure that the operating assets remain in good working condition at all times. LTA will also maintain pre-emptive regulatory oversight by closely monitoring and enforcing compliance of the operators' operating maintenance and financial performance. And, finally, should any operator fail in spite of all these safeguards, the Government has the powers to step in to terminate the operating licence and take the necessary actions to ensure that the RTS network continues to service the needs of our commuting public.”
“Regardless of the new rail financing framework, the Government remains committed to invest in the development and expansion of the rail network which will see close to a doubling of the rail network in the next 10 to 15 years, with new lines such as Thomson Line, the Eastern Region Line as well as Tuas extension and the North South Line extension to Marina South. The objective of the new framework is to enable the timely implementation of future rail lines in a financially sustainable manner. Madam, let me now move on to the impact on operators. The new rail financing framework will be applied to new licences, starting with the Downtown Line operator licence. As for the existing licence operators, we will allow the licences to continue to run on the current licence terms until expiry unless there is mutual agreement to replace the existing licences with new licences. Dr Lim has also asked about the allocation of the costs in maintaining the MRT system. As I mentioned earlier, the operating and maintenance costs of the RTS system will be borne by the operator and recovered from fares, as well as other non-fare revenue such as commercial rental and advertising collected by the operators. In assessing our rail infrastructure, the Government takes into account the economic benefits and costs as well as the financial sustainability of the lines. On this basis, the total revenue collected by the operators should be sufficient to offset the operating and maintenance costs borne by the operators. Next, moving on to the impact on commuters, specifically whether there is a need to raise fares. Dr Lim has asked whether the competitive bidding would become destructive and cause the public to pay more.”
“First of all, I would like to thank the Members for their support of the Bill. As the questions have been raised under various categories, allow me to address the questions under the following broad categories: first, the role of Government in public transport; second, the impact on the operators; third, the impact on the commuters; fourth, some of the specific issues under the new rail financing framework; and fifth, the all-important issue of security. Dr Lim has raised many questions on the role of Government in public transport. Let me just recap that based on the 1996 White Paper principles, the Government would bear the capital cost of transport infrastructure, including the first set of operating assets. Government has also committed to help pay for the inflationary cost increases for replacement of operating assets, so as to help to keep MRT fares affordable. Madam, these principles would remain unchanged with the new rail financing framework. Maintenance and operating costs will continue to be borne by the public transport operators. Therefore, the cost burden on the Government will remain unchanged under the new framework. The difference, however, under the new arrangement is that LTA, instead of the operator, will now own the operating assets and be responsible for the replacement which will be funded from the to-be-created Railway Sinking Fund and, in return, the operator will pay for the use of these operating assets through a licence charge. Dr Lim has also asked about Government's investment and expenditure in the transport infrastructure over the past 25 years. Inclusive of the Circle Line, Downtown Line and Boon Lay extension, Government has spent over $33 billion in the past 30 years to build up the current rail network.”
“The proposed amendments are necessary in order to effect the new financing framework, to allow for greater contestability to be injected into the RTS industry, as well as to ensure security and continuity of the RTS operations. Madam, I beg to move. Question proposed. 4.28 pm”
“The new Part IVA provides for Railway Administration Orders, allowing the Minister for Transport to appoint a different person to manage the company to ensure the security and reliability of the railway system, and to allow the transfer of undertakings from an existing licensee to a new licensee. This can be effected if the existing licensee is unable to operate the railway, such as in cases where there are insolvency concerns or for reasons relating to safety, security or public interests. This is not unlike the provisions in the Civil Aviation Authority of Singapore (CAAS) Act where the Minister for Transport is empowered to make a special administration or other orders if there are serious contraventions of the airport licence or of the Act or if the licensee is unable to pay off its debts. Section 19A of the Bill provides an alternative to regulatory action in the event of default by a licensee. It allows LTA to make provisional orders before securing compliance with the conditions under the licence. This gives the licensed operators an opportunity to be heard and allows them to rectify minor breaches or contraventions. To enhance security, there is a need to augment LTA's powers and empower it to impose licence conditions, issue, approve or modify codes of practice and issue directions relating to the security of persons on the railway system. Section 23A is also added to empower authorised personnel appointed by the LTA to search baggage and property brought into the railway premises. Mdm Deputy Speaker, the Government is committed to investing in and developing the rail network in a timely and financially sustainable way.”
“To allow LTA to collect a licence charge, a new section 13A of the RTS Act has been added and related amendments will be made to the LTA Act to provide for the creation of a special purpose Railway Sinking Fund for the licence charges or grants to be paid into. The Sinking Fund will be used to fund any capital operating equipment such as trains, signalling systems and other operating assets for operating the RTS. The Sinking Fund monies will be ring-fenced for the purposes of purchasing new or replacing operating assets to meet demand. Madam, as new lines are added, it is important to ensure that the rail infrastructure is properly integrated with overall transport facilities and surrounding developments. Each station is in effect a transport node through which thousands of commuters pass each day. To effect this, we have added a new section 11A to set out the general considerations to achieve an adequate, sustainable, safe, secure and integrated railway transport system in Singapore. Section 15 and section 18 are also amended for the purpose of ensuring integration of transport services and facilities as well as enhancing passenger services, in line with our vision for a people-centred land transport system. The next part of the Bill deals with the continuity of RTS operations. Section 15 is amended, and new sections 16A and 16B are added to safeguard the continuity of RTS operations and provide further clarity and transparency to the conditions which LTA may impose. These include operational obligations to operate extensions and stations that are added to existing lines, facilitating the transfer of contracts and manpower in the event of transition from one licensee to another, the surrender or assignment of licence and the voluntary winding up by licensee.”
“This will allow us to phase in the changes before we consider opening the sector to new players in the future. Some may argue that by limiting the tender to the two existing players, we will not be able to enhance the level of contestability in the RTS industry. The issue here is really not about the number of potential players in the industry. Rather, the intent is to increase the level of competitive pressure in the industry by issuing shorter licence periods and ensure that the incumbent operator will have to face the prospect of competition at the end of their licence term. The shorter licence period would also allow LTA, as a regulator, to re-set and refresh licence conditions as appropriate, to take into consideration changes to the operating and business environment. Key provisions of the Bill Madam, let me now elaborate on the key provisions in the Bill. Under the new financing framework, LTA will collect from the operator a licence charge payable for the right to run and generate returns from the revenue service. The licence charge may comprise fixed and variable components, with a certain portion to be determined through competitive bidding. The design of the licence charge is intended to ensure that there is an appropriate level of risk-sharing between the Government and operators, given the nature of new RTS lines which will start off with relatively high fixed costs but whose revenue will steadily improve over time. This element of risk and reward-sharing in new licences is a key feature of the new RTS licence, and would enable LTA to also pool the licence charges received and decide on the best use of this money to improve the network capacity, such as purchasing additional or replacement trains.”
“The new network financial evaluation approach would be applicable to the next round of rail expansion plans beyond those that have already been announced under the LTMP, such as Downtown Line, Thomson Line and Eastern Region Line, which were all financially viable under the old criteria of individual line evaluation. We will carefully study which new corridors would require new rail lines as part of our integrated land-use and transport planning process under the on-going Concept Plan 2011 exercise. With this new rail financing framework in place, we can then consider how best to implement this for future lines, while continuing to ensure that the overall network remains financially viable. Second, to effect greater contestability, the licence period for new RTS licences will be shortened to about 15 years. To facilitate the new financing approach as well as the shorter licence periods, LTA will take over the ownership of the operating assets and lease them to the operators instead. By taking on ownership of all RTS operating assets, LTA will be able to undertake integrated and holistic long-term planning for the RTS network, including planning of new lines and effect the timely purchase of more assets, such as trains, to enhance carrying capacity. Under the new arrangements, operators will be required to follow a rigorous set of Asset Management Requirements (AMR) for maintaining the assets leased from LTA, failing which the operators will be penalised accordingly. Madam, we are implementing the new framework for RTS licences, starting from the next major RTS line – the Downtown Line (DTL). We will adopt a gradual approach and limit the tender to our two existing operators, SMRT and SBS Transit.”
“This is an important refinement which we feel is now appropriate to be made as we have had over two decades of operating the MRT and are better able to project the network effects of the rail system. What is unchanged, however, is our basic financial discipline of not providing subsidy for operating costs for rail operations as a whole. To inject greater contestability in the RTS industry Madam, in order to enhance the level of efficiency in the rail industry, we will be injecting greater contestability into the RTS industry. The current duration of 30 to 40-year licences issued to the operators is too long to provide an effective threat of contestability to the incumbent operator. As is the experience elsewhere, the duration should be shortened to introduce contestability to the industry and compel the incumbent to improve its efficiency, cost competitiveness and service levels. Such competition will help to drive better performance and efficiency, which in turn will bring about higher service standards and productivity. Even as we are making changes to the rail financing framework and possibly the industry structure through greater contestability, one key aspect of public transport will remain unchanged – the regulation of fares by the Public Transport Council (PTC) in accordance with the fare adjustment formula, based on macroeconomic factors, national inflation and wage increases, rather than the operators' specific costs. Features of new rail financing framework Going forward, we will enhance the rail financing framework by introducing the following features: first, we will adopt a network approach so that new lines can potentially be introduced based on the overall network viability.”
“While the Government is committed to expanding the rail network, we are mindful that rail infrastructure is increasingly costly to build and maintain. To ensure fiscal prudence, hitherto, we have always required new RTS lines to be both economically and financially viable before a decision is made to build the line. Government has funded and will continue to fund in full all the infrastructure costs for building new lines as long as they are financially viable thereafter. This means that each new line must be able to generate enough revenue to cover its operating costs so that Government does not have to provide any subvention to ensure it is viable. The current evaluation of the financial viability of a new line is conducted on a line-by-line basis. As we expand the rail network, new lines will become more costly to operate and maintain as they will mainly have to be built underground. At the same time, as they serve the less mature corridors with lower ridership, they will be less profitable initially than existing lines. Yet, when new lines are added, they generate positive externalities which benefit the rest of the existing RTS network. Under the existing framework of line-based financial evaluation, these network benefits are not recognised. Such network benefits should really be taken into consideration when evaluating the financial viability of future rail lines. Such an approach will help bring forward the implementation of new rail lines that may fall short of being financially viable on their own, but will fulfil the viability criteria when evaluated on an overall network basis.”
“For example, a ship engine may also be used in power plants, leading to potential revenue leakages if we do not have certainty. Nonetheless, IRAS remains keen to review the extent to which GST zero-rating can cover ship parts and components while minimising the need for supporting export documents and for the review, IRAS will be very happy to work with the relevant players in the marine sector, including the associations suggested by Mr Teo, to develop a workable solution for the industry. 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. – [Mrs Lim Hwee Hua]. Bill considered in Committee; reported without amendment; read a Third time and passed. RAPID TRANSIT SYSTEMS (AMENDMENT) BILL Order for Second Reading read. 4.15 pm The Second Minister for Transport (Mrs Lim Hwee Hua): Mdm Deputy Speaker, I beg to move, "That the Bill be now read a Second time." Madam, the Bill before this House provides for the implementation of a new rail financing framework in order to achieve the objectives as stated in the Land Transport Master Plan (LTMP), namely, to facilitate the future expansion of the Rapid Transit System (RTS) network in a financially sustainable manner and to inject greater contestability into the rail industry. At the same time, we are augmenting the Land Transport Authority's (LTA) regulatory powers to enhance integration, to safeguard the continuity of rail operations and to enhance security. Rail financing framework to support future expansion of rail network As our population grows, we need to expand in tandem with our RTS network which serves as the backbone of our public transport system.”
“Madam, let me first thank Mr Teo Siong Seng for his support for the changes which will be extremely helpful to the marine sector. Mr Teo has suggested that the Ministry consider extending the same relief granted to the qualifying aircraft parts to the marine or the shipping equivalent and that doing so would further enhance Singapore as an international maritime centre. Before I go on to respond to Mr Teo, perhaps I could just explain to Members the incentive that we incorporated in Budget 2009 for the aircraft industry. In Budget 2009 we had extended GST zero-rating to any local sale and repair of aircraft parts and components if they are for use on an aircraft deployed wholly for international travel. With this zero-rating, the aircraft parts and components need not be immediately exported after the sale or repair. And also businesses need not keep track of export documents, thus easing compliance for the aerospace industry. I wish to assure Mr Teo that, indeed, the Inland Revenue Authority of Singapore (IRAS) is keen to see if such a similar treatment can be extended to the shipping industry. In fact, IRAS has been studying the implementation issues in detail. In its earlier review, IRAS has noted that unlike the aerospace industry, unfortunately, the marine sector does not have an internationally recognised certification process for ship parts and components deemed exclusively for use by ships in international travel. Because of this lack of international certification, it makes it very difficult for IRAS to verify if there is a specific class of ship parts or components that can be zero-rated upfront in the absence of the relevant export documents. As I understand, certain ship parts and components may also have alternative uses.”
“But it does not mean that all routes of these distances will, therefore, be automatically considered unduly long routes. Let me give Members an example. A 35-km bus route that connects commuters from Woodlands to the airport, for example, via the expressway, will not be considered unduly long because it would have served the majority of the people for the bulk of the journey. The review would take into consideration all the different aspects, as I have mentioned in my reply. In particular for the elderly and the disabled, if there is a particular bus route that bears that potential based on the ground feedback, LTA would first identify the elderly passengers from the ticketing data to find out the travel patterns and to see whether they have alternatives. Likewise, for the disabled, LTA can contact their public transport operators to identify any regular passengers who commute in wheelchairs and see whether there are alternatives. Before LTA decides to split the bus route, LTA will factor in the travel patterns of these groups of passengers and see whether there can be mitigating measures for them. IMPACT OF EUROPEAN SOVEREIGN DEBT CRISIS 13. Mdm Halimah Yacob asked the Minister for Trade and Industry whether he can give an assessment of the impact of the European sovereign debt crisis on Singapore's economy, including our employment situation. 14. Mrs Mildred Tan asked the Minister for Trade and Industry (a) what is his Ministry's assessment of the financial crisis in Greece and whether it has shown signs of spreading to other EU countries; (b) what will be the impact on the Singapore economy if it is not contained; and (c) what plans are needed to be put in place to ride out any volatility.”
“Mr Speaker, Sir, let me set the context in which my comments were made and reported on 29th March. This was in the context of an update on the consultations that we had undertaken. The comment was made because there were many specific pieces of feedback about poor reliability on certain long bus routes. The second context was that with the intensification of the rail network, more and more parts of Singapore will be more accessible and, therefore, the need to introduce new cross-country buses, as I had called them then, would be greatly reduced, and this is especially so for those along the MRT corridors. So, that was the context in which I made those comments. As for the splitting of the long bus routes, there will be many factors to keep in mind, and the operational improvements will just be one of the considerations. As I said, commuter benefits would also have to rank high on the list of trade-offs to be considered. Let me also explain some of the considerations. There are really no strict criteria on, for example, what defines a long bus route. From the perspective of LTA, a bus route would be considered unduly long if the demand profile clearly shows that the majority of the passengers do not travel on that particular route for a substantial distance. So, if they do not travel on it for a substantial distance, then that particular route will be considered unduly long. And the routes that have been singled out by the constituencies are typically routes which pass through the city centre near the mid-point. Some of the bus routes that have been highlighted from the ground would range from a one-way route length of 20 km to 37 km. So it is really quite a range.”
“Because of the complexity of the issues and the need for us to continue consulting other players who have already been operating in that space, as well as consulting the business community in greater detail, the study would take the better part of this year. OUTCOME OF 50PLUS EXPO 6. Mr Laurence Wee Yoke Thong asked the Prime Minister (a) what are the significant outcomes of the recently concluded 50plus Expo held in early April 2010, especially in terms of participation and interests shown by the cohort of older persons and how will these affect the planning of such future events; and (b) whether these outcomes will have any impact on the active ageing and wellness of elderly movement, and what are the changes, if any.”
“Sir, I would like to assure the Member that even as the study is underway, the existing schemes will continue to be there to support the cross-border financing as well as internationalisation activities. So the SMEs will not have to worry about there being a reduction in lending or financing support. I will highlight some of the areas being considered in the study. There are two main areas of considerations. The first is the scale of operations for such a market-based institution, and this will include questions like, whether it will cover trade finance, internationalisation and project finance; in what forms should these be undertaken, whether they be guarantees or they be direct lending. There is also the question on which markets to cover, so as to better support the SMEs and Singapore-based companies seeking to expand abroad. Finally, there is the question which the Member has raised, which is the size of the institution, as well as the type of capital funding that such an institution will need in terms of equity and debt. These are all very complex issues that we would have to look through very carefully. The second major area of consideration is the nature of Government's participation. Here, there is a whole range. It could be a Government-owned and Government-run organisation or institution, to one that is in partnership with private institutions, to the other extreme where Government outsources the entire operation. Again, there are various implications for each of these models. So until the Government is convinced that the resulting institution is best able to meet the different needs, it will not rush into forming one that may eventually prove to be ill-equipped.”
“Yes, Sir. Copies of the Bill have been provided to the Clerk, who will now distribute it to Members. [Copies of handouts distributed to hon. Members ] ESTIMATES OF EXPENDITURE FOR THE FINANCIAL YEAR 1ST APRIL, 2010 TO 31ST MARCH, 2011 (Paper Cmd. 1 of 2010) Order read for consideration in Committee of Supply [7th Allotted Day]. [Mr Speaker in the Chair] Head S – Ministry of Manpower (cont.) Resumption of Debate on Question [11 March, 2010], "That the total sum to be allocated for Head S of the Estimates be reduced by $100." – [Mdm Halimah Yacob]. Question again proposed. 12.15 pm Adopting cultural diversity at work”
“Nonetheless, we have the Maritime Cluster Fund, which is still available for companies to build manpower capabilities as well as the Maritime Innovation and Technology Fund, for MPA to work with industry partners to grow our maritime R&D capabilites. MPA will harness technology as well to enhance customer service and the efficiency of our port services. One example is BunkerNet which enables the bunker industry to enhance their delivery and back-end processes through the strategic use of Information Technology.”
“The maritime industry remains a key pillar of our economy, contributing some 7% to GDP and employing more than 100,000 people in over 5,000 companies. We are optimistic of 2010. Cargo volumes have picked up and freight rates have regained some ground. However, it is still too early to tell if the recovery is sustainable and the excess supply of vessels continues to be a structural problem for the industry. However, the Government will do whatever it can to keep business costs competitive, and we will extend the port dues concessions announced last year for another six months and take stock of the situation at the end of September. To prepare for the upturn, we will continue to invest in port infrastructure for future growth. We are also pressing ahead with the expansion of the Pasir Panjang Terminals, and our port's size and overall connectivity will provide an enduring competitive advantage for our economy. We are also enhancing our incentive schemes to help grow the services. Our programmes have attracted some 120 international shipping groups with business spending of S$2.8 billion annually; and six ship financing companies managing some S$3.5 billion worth of assets. 2.45 pm The Minister for Finance has announced incentives during the Budget Statement for the shipbrokers as well as the Forward Freight Agreement traders. The MPA will release details shortly. As for the hike in foreign worker levy, the impact on the marine sector is unlikely to be large. Nonetheless, the companies can still tap into several schemes administered by the MPA to encourage investments in process improvements and human capital and this will complement the Productivity and Innovation Credit scheme that Dr Magad referred to which was announced during the Budget as well.”
“In August and September 2009, CAAS and CAG conducted the first exercise to determine the revenue yield cap (RYC) on aeronautical charges for the first regulatory period. The RYC is the maximum that CAG is allowed to collect from various aeronautical revenue streams per passenger per year. And these revenues, together with the partial subsidy from its non-aeronautical profits, will allow CAG to cover its aeronautical costs, including the cost of capital. User consultation is a key part of this process as CAG is required to formally consult all designated airport users. And the RYC is set at a level that balances the incentive for CAG to innovate with the need to keep Changi Airport's charges competitive. And the exercise has enabled the two entities to better familiarise themselves with their new roles. While developments have generally progressed according to plan, the framework is, nonetheless, still new. We will, therefore, require time for all stakeholders in the system to become familiar with it and to test it out in practice. Sir, in conclusion, 2009 has been challenging for the aviation industry. And while we start 2010 on a cautiously optimistic note, we are confident that our aviation industry is well-prepared not just for the recovery but also for the long haul. Let me now move on to Dr Ahmad Magad's cut on the maritime sector. He asked what the Government is doing to position the maritime sector for the upturn and how we intend to encourage the industry to innovate and increase its productivity. Sir, 2009 was indeed a tough year with our port recording a steep 13% drop in containers handled. Nonetheless, we maintained our global leadership in bunkering, vessel tonnage and overall container flows.”
“SMEs with less resources to implement new initiatives and launch developmental work will find these programmes especially relevant as they can potentially enjoy up to 70% of funding for approved projects. CAAS will provide more information on these programmes shortly. A budget of $100 million will be set aside for the ADF over the next five years and should the programmes be over-subscribed, we will certainly consider committing more funds for the ADF. Sir, let me now move on to the restructured CAAS and corporatised Changi Airport Group (CAG). Last July, CAAS was restructured into a new CAAS to focus on regulatory and strategic functions; and the CAG to operate Changi Airport. Let me update the House on the progress of the exercise. We have achieved a clear separation between the roles of the regulator and the operator – commercial functions and operations of Changi Airport are now carried out by CAG, while CAAS focuses on regulating aviation matters, providing air navigation services, and advancing Singapore's strategic interests in the international aviation arena. Since corporatisation, both entities have been performing their respective roles well. CAG recently introduced a package of targeted, performance-based incentives called the Changi Airport Growth Initiative (CAGi) for its airlines and other airport partners for 2010. The programme represents a shift from past across-the-board relief measures, to more customised incentives designed to promote passenger and cargo traffic volumes at Changi. This is an early sign of the kind of new air hub innovative efforts we hope to see in the corporatised entity.”
“Second, Changi Airport Group (CAG), as the operator, has to balance capacity and utilisation at the main airport terminals vis-a-vis the Budget Terminal. CAG has to work closely with the LCCs on the best arrangement for the airlines, and ensure adequate and appropriate infrastructure to meet the LCCs' needs. Sir, all airport terminals today are handicap-friendly, and wheelchair services are available for needy persons. To support the no-frills business model of LCCs, the Budget Terminal was designed without aerobridges. Nonetheless, wheelchair-related lifting services are available at a commercial rate. Let me address Mr Charles Chong's query on the Aviation Development Fund (ADF). The ADF will comprise various incentive programmes to support initiatives to raise productivity, promote innovation and ultimately enhance the competitiveness of our aviation industry. CAAS will launch the Aviation Partnership Programme and the Aviation Innovation Programme in April 2010. The Aviation Partnership Programme will support industry-level initiatives, encouraging the adoption of best practices or new industry standards or processes. An example could be the promotion of paperless freight documentation in the air cargo and logistics industry, which will result in cost and transport time savings. The Aviation Innovation Programme, in turn, will support company-specific projects. This programme will support the development of new capabilities and growth of niches of excellence, eg, new business concepts and R&D projects to develop new products or processes. I understand there has been much interest expressed by the SMEs in these programmes.”
“Sir, liberalisation has brought tremendous benefits to the travelling public in terms of competitive ticket pricings and wider travel choices. For example, ticket prices on the Singapore-KL sector have fallen sharply, from as high as $400 before liberalisation to as low as $50 presently. Besides, travellers can now choose from an array of airlines, including Jetstar Asia, Tiger Airways, AirAsia and Firefly. Apart from bilateral air services negotiations, we have also been actively pursuing liberalisation at the multilateral level. Within the region, two Multilateral Agreements (MA) liberalising freighter and passenger air services among ASEAN member states have recently come into force. A third MA, which will expand on the earlier arrangement to fully liberalise passenger air services within ASEAN, is expected to be signed this year. For the first time, ASEAN is also in negotiations with a dialogue partner, China, to establish a liberal air services regime. Next, on the Budget Terminal and the low-cost carriers (LCCs) growth. Mr Charles Chong asked about the plans for the Budget Terminal (BT) in relation to the boom in low-cost carriers activity. In 2004, LCCs accounted for just under 2% of Changi's passenger traffic. Last year, LCCs carried some 23% or almost a quarter. We must continue to tap this exponential growth by ensuring that Changi Airport remains attractive to LCCs. The Budget Terminal was recently expanded to accommodate seven million passengers, up from 2.7 million per annum previously. While we prefer to see more LCCs at the Budget Terminal, there are other factors to consider. First, some LCCs may prefer operating at the main terminals for connectivity reasons.”
“Sir, I thank Mr Charles Chong and Assoc. Prof. Dr Muhammad Faishal, who asked about the state of the Changi air hub and the benefits of our air liberalisation policies. The international aviation industry was badly affected by the economic downturn last year, but Changi fared better than we anticipated, helped by a strong recovery towards the end of 2009. Changi handled 37.2 million passengers in 2009, a marginal 1.3% decline from 2008. The December 2009 figures were especially encouraging – passenger traffic grew 9.7% year-on-year, recording the highest passenger volume ever of 3.83 million. The strong momentum continued into January this year, with Changi achieving a 10.1% growth year-on-year. In terms of aircraft movements, Changi actually experienced a growth of 3.6% in 2009 over 2008. Air cargo handling, however, continued to encounter challenging conditions. Air freight volume through Changi slipped 12% to 1.63 million tons for 2009. Nevertheless, there are reasons for optimism as volumes recovered and grew 15.7% in December last year year-on-year. Our Open Skies policy remains the mainstay of our air hub strategy. The benefits of liberalisation can be seen in the opening up of sectors between Singapore and key Malaysian cities. Despite the downturn, overall Singapore-Malaysia traffic grew a spectacular 41% in 2009 as a result of bilateral liberalisation of traffic rights. After declining for almost a decade, traffic on the Singapore-Kuala Lumpur (KL) sector itself rebounded to a 34% growth in 2009 from 2008. The Singapore-Kuching and Singapore-Kota Kinabalu sectors also experienced phenomenal growth, doubling in 2009.”
“Sir, all tax-paying entities can claim the enhanced deductions on expenses under the Productivity and Innovation Credit Scheme that they incur to produce income. The cash conversion option, however, is only available to companies, partnerships and sole proprietors with at least three local employees. This is because the intention of the option is to help business enterprises, especially SMEs, with cashflow needs for their expenditure on innovation. Nonetheless, MOF will review how we can support other entities such as Town Councils in the effort to upgrade productivity.”
“Sir, for process and organisational redesign, indeed, they can be instrumental in many companies to improve enterprise productivity. However, the challenge is in defining what exactly would be classified as process of organisational design for tax deduction purposes. I would go on to add that to implement most of these organisation redesign initiatives, businesses often have to acquire new equipment to automate the new processes, train their employees, to reskill them, and both these activities would qualify anyway. So they should adequately cover what the Member has suggested. As regards the exemption for mega events of the withholding tax, to attract more international rated acts, performances and so on, the Government has reduced the withholding tax of non-resident public entertainers from 15% to 10% for five years from Budget Day. Our withholding tax rate for royalties is already low by international standards at 10%. And Singapore has a wide network of tax treaties that can actually reduce the rate even further, such as to 5%. In addition, organisers of approved events can also apply for direct grants from STB under the Tourism Development Assistance Scheme, particularly under the Business Events in Singapore Scheme.”
“Mr Chairman, Sir, I am slightly confused by what Mr Low truly wants in terms of detail because he had asked for more specific line item details to which I have duly pointed out the direction. And then, he goes on to say that those were too many details. Let me just explain that the way we have organised information is really to make it as easy as possible so that in the main Budget Book, one gets a good overall view of all the different Heads. And if one were interested in the line items, one can go on to the two control documents. In addition, the Budget Highlights that he has referred to really provides also some of the summaries and highlights. If at all, I would think that people will be complaining about overload of information rather than under. As regards his comments about the Public Accounts Committee, the Public Accounts Committee is appointed by the Committee of Selection so that is strictly up to the discretion of that Committee.”
“Let me clarify that the Bill merely formalises the existing arrangements for primary dealers and does not add to the obligations. The proposed legislation merely sets out a clearer legal and due process framework which will give greater certainty to all the stakeholders. That would include the Government, MAS, primary dealers and investors. As for examples of directions that the MAS has issued, they include the requirement for the primary dealers to fully underwrite the share of the SGS in an auction and the obligation to make two-way bids for SGS under all price conditions. Finally, she has a question about the capital requirements. I would like to clarify that only financial institutions incorporated in Singapore have to meet MAS' regulatory capital requirements. Sir, I believe I have answered her questions. 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. – [Mrs Lim Hwee Hua]. Bill considered in Committee. [Mr Speaker in the Chair]”
“Mr Speaker, Sir, first, I would like to thank Mdm Ho for her support of the Bill. Let me clarify some of the concerns that she has raised. First, Mdm Ho has highlighted that although Government is currently able to finance its expenditures without borrowing, we should nonetheless be prepared for any unforeseen circumstances such as the recent financial tsunami. The prudent principle of not raising debt to fund Government's public expenditures has been enshrined in our Constitution. The issuance of the SGS is for the purpose of developing our domestic debt market. So the proceeds raised are invested together with the rest of our reserves. Despite the recent financial crisis, Singapore has actually maintained its AAA Sovereign rating and kept our debt servicing cost low and this has also indirectly benefited our local companies and businesses. But nonetheless, we will continue to ensure that the Singapore Government spends within its means and continues to exercise discipline and prudence, and should another extraordinary financial tsunami hit us, our Constitution allows the Government to seek the President's approval to draw on our reserves, as was the case last year. But let me assure Mdm Ho that there are safeguards in place and the first of which is that the Government cannot borrow more than the limit that has been authorised by this Parliament which currently stands at $320 billion. The second is that the Reserves Protection Framework ensures that the proceeds raised are invested as part of our reserves and cannot be spent. Mdm Ho also raised specific questions relating to the primary dealers. She commented that the Bill imposes quite a heavy obligation on the primary dealers.”
“In 2007, we increased the GST rate from 5% to 7% and in 2008, we revised the framework for spending investment returns from reserves to one based on the long-term expected returns which will enable us to tap on more of these returns. I would like to assure Mr Lee that the increases in revenue from these two sources would be more than sufficient to offset the reduction in revenues from the corporate tax reduction. 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. – [Mrs Lim Hwee Hua]. Bill considered in Committee; reported without amendment; read a Third time and passed. Column No : 1732 SINGAPORE ARMED FORCES (AMENDMENT) BILL Order for Second Reading read. 3.17 pm”
“Sir, first allow me to thank Mr Terry Lee for his support of the Bill. I agree with the Member's observation that many countries now compete on the basis of attractive tax rates, especially post crisis, but allow me to share with Mr Lee and Members of the House some of the guiding principles on how we set our tax rates. Firstly, our tax rates must indeed be competitive, relative to the alternatives that investors have. However, I would like to reiterate that Singapore is not a tax haven. We are a real economy with substantive businesses. Secondly, taxes are but one component of what it takes to be a conducive business environment and Mr Lee has rightly pointed out that there are other equally important attributes such as a quality workforce, a strong tripartite relationship, political stability, rule of law and so on. So we need to preserve, if not enhance, these attributes as well. Thirdly, our headline tax adjustments are designed for the long haul. This is in recognition of the long-term perspective that serious investors take. Hence we consider very carefully to see if our fiscal position can allow these adjustments before making them. Sir, our overall fiscal strategy is one of spending prudently and living within our means. Mr Lee has expressed concern about how much the tax foregone would be and how the Government would make up for this loss. The estimated tax foregone would be about $400 million to $500 million per year in the steady state. The reduction in the corporate tax rate is really an important part of our overall strategy to restructure revenue sources. If I may just recap for the House, steps were taken earlier on to raise revenues from other sources.”
“I would like to urge the Member to read the entire Report on the Land Transport Masterplan (LTMP) because the main thrust is that we need to do a whole suite of things, ie, providing the public transport infrastructure, improving the services as well as moderating car usage. So we need a whole combination of measures and not just one single measure that will achieve that shift. Column No : 1711 INTEGRATION OF NEW IMMIGRANTS (Measures and community-based programmes) 10. Mr Christopher de Souza asked the Minister for Community Development, Youth and Sports (a) if he will provide an update on the types of community-based initiatives which have provided platforms for Singaporeans and new immigrants to integrate and gain understanding of one another; and (b) what are the examples of such current initiatives. 11. Mr Teo Siong Seng asked the Minister for Community Development, Youth and Sports (a) what measures and programmes are put into place to help new immigrants integrate into Singapore society; and (b) what special incentives are being extended to encourage the ethnic Chambers of Commerce and Industry and other trade associations to play a proactive role in helping the new immigrants and foreign workers to adapt and work in harmony alongside our Singapore workers.”
“Sir, if this is asked in relation to the survey findings, let me reiterate the fact that the drop in the public transport mode share is largely attributed to the combination of a lack of major infrastructural work between 2004 and 2008 against the increase in vehicle population. It is not so much the drop in satisfaction levels. In fact, if I may inform the House that the annual public transport satisfaction surveys conducted over the past few years have actually shown an increase in satisfaction. According to the survey conducted in October last year, which is the survey 2008, 89.5% of respondents, or about nine in 10, were satisfied with the overall public transport services in Singapore. This is three percentage points higher than the 86.5% in 2007, which is itself higher than the 84% rate achieved in 2006.”
“Sir, for new estates, typically the public transport operators will be given preliminary information ahead of the actual operation of the estates. They will be given information by the HDB on how the estate would be laid out, the profile of the blocks and the density of the estate, including key installations like schools. They would also be given information by the LTA on the road layout as well as the location of major infrastructure like the rail lines and where the stations would be. This would enable the public transport operators to assess the density and to plan for basic services to serve the new estates, based on some assumptions. As the families start to move in, the public transport operators will continue to do more ground surveys to verify some of the assumptions as well as to track the patterns of moving in. In other words, the public transport services will necessarily have to evolve along the way, based on a lot of the feedback from the constituents as well as the public transport operators' own assessment. LTA's role as a central bus planner will be crucial in that LTA will seek to optimise the infrastructure that is already planned in the estate, for example, the rail line and the stations, all with the intention of optimising these by linking bus services to the hub itself. What LTA will do, which has already begun, is to consult the advisors as well as the grassroots leaders and the public at large to check what the travel patterns might be and whether there is a critical mass. And the public transport operators will actually provide the services ahead of the established demand. But this would largely be an evolution for the first few years.”
“In fact, I should add that this is intended to hold the casino operators to higher standards of accountability because with the accounting systems and the internal controls that they have, they are not expected to file incorrectly for casino taxes. Mr Deputy Speaker, Sir, I believe Dr Vivian Balakrishnan and myself have responded to all the queries. Once again, let me thank all Members for the support and I wish to underscore the need to continually review this piece of legislation even after the IRs are in operation. 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. – [Mrs Lim Hwee Hua]. Bill considered in Committee; reported without amendment; read a Third time and passed. ADJOURNMENT Resolved, "That Parliament do now adjourn to a date to be fixed." – [Mr Mah Bow Tan]. Adjourned accordingly at Eleven minutes to Five o'clock pm to a date to be fixed. WRITTEN ANSWERS TO QUESTIONS FOR ORAL ANSWER NOT ANSWERED BY 3.00 PM SUICIDE AMONG THE YOUNG 19. Mdm Cynthia Phua asked the Minister for Community Development, Youth and Sports (a) how many young people below the age of 21 committed suicide over the last three years; (b) what are the main causes of the suicides; (c) what lessons can be learnt from these cases so that such future suicides may be prevented; and (d) what is the Ministry doing to address this problem.”
“While we do not anticipate usage of these sections, we, nonetheless, propose the addition of these sections to give the Minister the flexibility to remit casino tax, if he assesses that a remission is just and equitable. Let me also confirm that this does not include a consideration on the viability of the IRs as raised by the Member. Ms Lim has also asked why the proposed section 146B(V) that gives the Comptroller powers to assess tax due and section 149A that governs penalties for incorrect tax returns are not similar to the provisions in the Income Tax Act. Let me just clarify that in the review of the Casino Control Act, references were made to the other tax acts, in addition to the Income Tax Act. So it is not just the Income Tax Act. And for this particular provision, section 146B(V), the more relevant act is actually the Goods and Services Tax Act, which is under a self-assessment system, as opposed to the Income Tax Act which is under an official assessment system. So section 146B(V) was modelled after section 45(VII) of the GST Act to address a similar scenario where the tax payer fails to make a tax return. And the higher casino tax assessment provided for here, acts as a deterrent to encourage the timely filing of returns. And finally on section 149A, let me clarify that income tax filing involves individuals and business entities and the distinction as outlined by the Member is relevant. This is because an offence under section 149A which relates to incorrect filing is assessed to be a lesser charge, and where the penalties for the offence under this section are half of that under section 150 which addresses a graver charge of tax evasion.”
“We also note that this provision is in line with similar provisions in the other tax acts such as the Income Tax Act and the Betting and Sweepstake Duties Act. Mdm Ho raised a question revolving around the phrase, "any person of the proposed section 149A." She is concerned that IRAS will impose on individuals a fine, or jail term for making incorrect returns or giving incorrect tax-related information, regardless of whether the action was intentional. Let me clarify that this provision is not intended to target individuals. And that the phrase, "any person" means any legal person. It is primarily targeted at the casino operators. We have used the phrase, "any person" to give the authorities sufficient flexibility to act against individuals such as errant employees and tax agents who collaborate with the casino operators to commit a crime. And I should also add that this is a legal term that is aligned with all the other tax acts such as the Income Tax Act. Ultimately, we should take note that the casino operators are responsible for filing casino tax returns accurately. And that filing an incorrect tax return under this provision is an offence by itself, regardless of whether there is an intention to evade tax. Let me, now, move on to the comments raised by Ms Sylvia Lim. Ms Lim has asked under what scenarios the Minister will remit casino tax as provided for under section 148A of the Act. Let me clarify that section 148A is aligned with similar provisions in the other tax acts such as sections 89(I) and 92(II) of the Goods and Services Tax and Income Tax Act respectively. And these sections are exercised under only very special and exceptional circumstances such as poverty or equity reasons.”
“Mr Deputy Speaker, Sir, first, let me thank all Members for speaking on and supporting the Bill. My colleague, Dr Vivian Balakrishnan has explained in detail the non-tax concerns as well as addressed the suggestions raised by the Members. So let me now address the specific tax-related queries raised by Mdm Ho Geok Choo and Ms Sylvia Lim in turn. Mdm Ho Geok Choo has raised queries on three aspects of the provisions concerning the administration of the casino tax. The first is on how IRAS will keep track of the profits which the casino operators would accrue from the different types of gaming activities. The casino operators are to comply with the set of internal controls requirements issued by the Casino Regulatory Authority for key processes within the casino. The internal controls specified include how the revenue is to be collected, counted and reconciled for every casino game. For example, the wagering activities at the slot machines will be tracked by the machines' meters and these are linked to a slot management system. This system can, in turn, generate reports on the breakdown of gaming activities like the amount of payouts and casino profits on a daily basis. Casino operators are also subjected to scrutiny by internal and external auditors, at least once a year. The audit findings relating to the computation of casino tax will then be sent to IRAS for review. And IRAS, in addition, will conduct its own audits and follow-ups with the casino operators on any irregularities discovered in the audits. Mdm Ho also raised the point on the penalties for tax evasion. She asked if these are sufficient. If there is a wilful intent to evade casino tax, as we are told earlier on, the operator will be liable to a penalty of four times the amount of the tax underpaid.”
“Sir, I would like to thank the Member for raising the question. If I may just articulate the objectives of the entire exercise. There are basically four objectives that we are looking at. The first is to improve the journey quality – the quality of the travel experience. The second is to achieve better integration across the public transport modes between bus and rail as well as between services on the same mode. The third is to strengthen our current hub-and-spoke model where we will optimise it – even transfers can be made a lot easier. Finally, it is to ensure that after doing all these and meeting these objectives, that we will have a system that will still be financially viable. Column No : 1292 H1N1-2009 (Impact on medical tourism) 5. Dr Lam Pin Min asked the Minister for Health (a) whether he will provide an update on medical tourism in Singapore for 2009; (b) how has the Influenza A (H1N1-2009) pandemic affected medical tourist arrivals; and (c) what is the Ministry's plan in boosting medical tourism in Singapore?”