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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“I have asked the LTA to work with the train operators to review the options available and study their cost-effectiveness, with a view to further enhancing commuter safety. In the interim, SMRT has increased staff presence at the open platforms to assist commuters and to remind them to stand behind the yellow line. Sir, there has also been public feedback, including those who have spoken on the Media-Corp Talk-Back programme this morning, that we should deal with this issue sensibly. There is evidence, hearteningly, that the majority of Singaporeans are responsible and value the service that the SMRT is providing. Some members of the public have further pointed out that while the LTA and the operators can play their part, commuters should also take personal responsibility for their own safety when using the MRT system. Sir, I totally agree with them. The open platforms at the elevated MRT stations are like public roads where commuters exercise personal caution such as not standing too close to the edge and looking out for traffic. Likewise, at MRT stations, the public should observe and comply with the safety rules that have been put in place. For example, commuters should stay within the safety zone demarcated by the yellow lines on the platforms while waiting for the trains. If they are feeling unwell, they should take a seat or seek help from the station staff. With commuters conscientiously taking personal responsibility for their own safety, and operators exploring ways to improve safety standards, I believe we can collectively minimise the recurrence ofincidents. Sir, abalance needs to be struck – any excessive installation of safety features and implementation of safety measures would ultimately exact a cost on the provision of transport services.”
“This ismainly becauseworks are carried out only during a 4-hour window at night, so asto minimise inconvenience caused topassengers. Notwithstanding this, Iwish to inform the House that SMRT has given top priority to the CCTV cameras along the open MRT platforms which, unlike theunderground platforms, have no platform screen doors. As of 31st August 2004,CCTV cameras along the platforms ofall 35above-ground stations have been equipped with the recording feature.Completion of this first stage of the works will allow SMRT to better conduct any post-incident investigationwhen necessary. Sir, with all these safety measures and ongoing upgrades, one may ask how do our safety standards compare internationally. In all our open platforms, yellow lines are drawn 60 cm away from the edge to demarcate the safety zone. This is twice the buffer provided for in systems such as the London Underground. Metro systems in cities like London, Paris and New York also do not provide platform screen doors, even in their underground stations. In this respect, Singapore has already gone beyond the standards set in other comparable networks by installing platform screen doors in all our underground stations. Sir, I can fully understand the public reactions to the recent incidents, including the incidents at the Bukit Batok and Redhill Stations,whereby commuters were hit by oncoming trains after they fell onto the tracks. Some have suggested installing platform screen doors at all open platforms. Others, such as Mr Steve Chia, have noted that these options cost a lot and asked about cheaper options such as metal railings. I want tothank them for their suggestions and their concern for the safety of commuters.”
“Sir, Dr Amy Khor and Mdm Cynthia Phua asked about the safety measures that have been implemented at MRT stations and those that are under consideration. The Government has always taken a serious view on issues of public safety and I would like to assure the House that our approach to ensure commuter safety at MRT stations is no exception. Today, there are various safety measures in place at all MRT stations. These include Emergency Train Stop buttons at all platforms to allow commuters to stop the movement of trains. These buttons are also found at the Passenger Service Centres to allow station staff to perform a similar function. In addition, Emergency Phones located at all platforms allow commuters to speak with station staff during emergencies, and CCTVs enable the station staff to monitor the crowd situation at the platforms. Our train operators have also been proactive in promoting and reinforcing station safety through the regular use of recorded voice and video messages. For example, commuters are constantly reminded not to stand beyond the yellow lines and not to rush to catch a departing train. Patrolling staff are also deployed on the platforms to help commuters who may be unwell, or to advise them to remain seated while waiting for the trains. In addition, train drivers have been instructed to sound the horn when the trains approach a crowded station. SMRT is also in the process of upgrading its CCTV system to incorporate recording features. Sir, Mdm Phua asked if LTA will review the timeframe taken by SMRT to complete the CCTV system upgrade. I would like to assure Members that LTA has examined this issue. Given the complexity and scale of the upgrading works, the whole project will require another two years to complete.”
“AVA has also in placecontingency plans which can be activated immediately if and when HPAI is detected, whether among the live poultry imports or at the local poultry farms. AVA maintains close liaison with its counterparts inMalaysia and has jointly established the communication links and the protocol to stop imports immediately should HPAI be detected or suspected in chickens or ducks from Malaysia. Under AVA's farm accreditation system, all chicken and duck consignments can be traced back to the farms from which they originate. In addition to the veterinary health documentation required for each import consignment, each poultry crate is labelled with information on the farm of origin. In other words, the local poultry slaughterhouses thus have the ability to trace and recall products from the market, if necessary.”
“Sir, for FY03, the total contract value awarded as a result of Best Sourcing projects is $16.8 million. AVIAN FLU (Prevention of outbreaks) 8. Dr Teo Ho Pin asked the Minister for National Development (a) how many farms from Malaysia are supplying live chickens and ducks to Singapore; (b) what are the measures taken to prevent outbreaks of the Avian flu; and (c) whether there is any traceability or information dissemination plan which will inform consumers immediately upon the detection of diseases of imported chickens or ducks. The Second Minister for National Development (Mr Lim Swee Say):Mr Speaker,Sir, the Agri-Food and Veterinary Authority (AVA) has accredited 135 chicken farms, mostly located in Johor, and 42 duck farms, mostly in Perak, to supply live poultry to Singapore. AVA has also accredited 20 farms, located in Malacca and Johor, for the supply of eggs. Together, these Malaysian farms supplied about two-thirds of eggs consumed in Singapore, half of the chickens and 90% of ducks. To prevent the Avian flu, in particular, theHighly Pathogenic Avian Influenza (HPAI) from coming into Singapore,AVA only allows import of poultry and birds from countries or regions that are free from HPAI. Stringent checks are also carried out on all consignments of live poultry at the point of entry. These are supplemented by testing of blood samples collected from the live chickens and ducks as well as further inspections at the poultry slaughterhouses. Within Singapore, at the local poultry farms, AVAhas imposed strict bio-security measures. These include restricting visits to the farms, disinfecting vehicles before they enter the farms, requiring farm workers to wear protective clothing, and securing the poultry houses against wild birds.”
“Sir, I would like to thank the Member for her interest in the Public Private Partnerships initiative. Public Private Partnerships (PPPs)are long-term contracts where the private sector provides services and facilities to the Government. A typical PPP requires the private sector to design, construct, finance, maintain and operate facilities over a period of 15 to 30 years. Previously, the Government would have undertaken each activity with a different company. Under a PPP, the private sector will bring these same or similar companies together, often as a consortium, to undertake the whole project. Sir, because of the complexity and long term nature of PPP contracts, there are greater administrative costs involved. The Government can expect to save overall using PPP only if the projects are relatively large. The Ministry of Finance has set $50 million as a guide, meaning that all projects above $50 million should be considered for suitability as a PPP, while projects less than $50 million can also be considered, depending on the nature of the project. Small and Medium Enterprises (SMEs) can participate in the PPP consortiums as partners, contractors or subcontractors. In addition, SMEs can continue to contract directly with the Government for projects below $50 million. PPP contracts basically involve the provision of new services and facilities. As for current services, all public sector agencies are now required to increasingly market test non-core services which they are doing in-house. Under this Best Sourcing directive, the services will be outsourced if private sector vendors can offer the services more economically. In summary, Best Sourcing and PPP together present more opportunities for SMEs to be involved in the delivery of public services.”
“Mr Speaker, Sir, I will ask the Ministry to consider the hon. Member's suggestion. FARMING OUT PUBLIC SECTOR PROJECTS TO SMEs 7. Ms Olivia Lum Ooi Lin asked the Prime Minister and Minister for Finance as the move by the Government to apply Public Private Partnership on large projects exceeding $50 million will definitely benefit many large private companies but not many SMEs, has his Ministry any plans to further encourage the public sector agencies to critically review areas of works or services that can be farmed out to the SMEs under similar PPP arrangements.”
“Sir, the tax breaks and reliefs are really part of a holistic approach towards looking after the respective groups. The Ministry monitors and reviews these from time to time, and I will ask the Ministry to bear Miss Low's suggestions in mind at the next review.”
“Sir, allow me to clarify whyage 55 was used for the tax reliefand age 65 was used for the foreign worker concession. Age 55 was used as the age cut-off forparent relief because when the parent relief was put in place many years ago, age 55 was the retirement age norm. However, for the discount on the maid levy, the Ministry of Manpower has explained that the foreign worker levy concession is not pegged to the retirement age of the elderly person. Instead, it is consistent with the definition of senior citizens used by the Ministry of Health to qualify forthe concession at polyclinics and for medical prescription fees. Therefore, any lowering of this age would be inconsistent with the application of the second guideline.”
“Sir, the tax breaks for taking care of aged parents or disabled siblings are already available to singles. Singles can also benefit from the lower maid levy from1st Augustthis year for taking care of elderly parents. The tax relief per aged parent aged 55 and above is $3,500 or $5,000, depending on whether the taxpayer is staying with his parent. It goes up to $6,500 or $8,000 if the parent is disabled. The tax relief is $3,500 for each physically or mentally disabled spouse, child or sibling that the taxpayer supports. From 1st August 2004, the employer of a foreign maid will pay the lower foreign domestic worker levy of $250 per month instead of $345, if his elderly parent aged 65 and above stays with him.”
“We will press on with our preventive education efforts. As part of this effort, we will also publicise our strict laws as set out in the Misuse of Drugs Act against the trafficking, manufacture, possession and consumption of synthetic drugs. The second prong is enforcement. Synthetic drugs are closely associated with the night entertainment scene which young people are involved in. We have enlisted the help of operators in our fight against drugs. For example, in February this year, CNB conducted a briefing for licensees and operators of nightspots and entertainment outlets to remind them of their social and legal responsibilities to keep their premises free of illicit drug activities. CNB also regularly conducts island-wide operations to round up synthetic drug abusers. The number of raids at various night entertainment outlets has been stepped up . The third prong is rehabilitation. Rehabilitation of drug abusers will help prevent them from returning to their drug taking habits. Currently, convicted synthetic drug abusers are sent to prisons and do not benefit from the rehabilitative programmes that opiate abusers undergo at the Drug Rehabilitation Centres (DRC). We have reviewed this and will be introducing a DRC regime for synthetic drug abusers in lieu of imprisonment. This will offer them a more focused rehabilitation programme which will minimise the chances of them going back to drugs. In addition, the Community Action for the Rehabilitation of Ex-offenders (CARE) Network provides aftercare support services for these abusers after their discharge. In summary, Sir, we will take this multi-pronged approach and press on with our fight against drug abuse.”
“Question No. 7, Sir. Assoc. Prof. Ho Peng Kee (for the Minister for Home Affairs): Mr Speaker Sir, there has been some increase in the number of females below the age of 20 abusing drugs over the past three years. In 2001, 65 young female drug abusers were arrested. The number increased to 83 in 2002 and fell to 70 last year. The number of first-time young female abusers arrested increased slightly from 55 in 2001 to 60 last year. Overall, the number of young drug abusers has declined from 196 in 2001 to 191 last year. In terms of the types of drug being abused, synthetic drugs were the predominant drugs consumed. Of the 218 young female drug abusers arrested in the last three years, 156 or 72% were arrested for consumption of synthetic drugs. The problem is under control but we will press on with our efforts to tackle the drug abuse menace resolutely, adopting a multi-pronged approach. The first prong is preventive education. Potential drug abusers, especially the younger ones, must be steered away from being entrapped by drugs. In recent years, we have enhanced our preventive efforts with respect to synthetic drugs. The dangers of abusing synthetic drugs are constantly publicised, with many of the activities targeted at youths. For example, CNB conducts talks, competitions and other activities such as drama retreats and camps to highlight the harmful effects of synthetic drugs. In addition, the National Council Against Drug Abuse (NCADA) and CNB have been organising the annual "Clubs Against Drugs" Campaign, to enlist club operators to promote the anti-drug message to their patrons who are mainly young adults. NCADA also mounted a media campaign against ketamine abuse in March this year, specifically targeting at youths.”
“But, most importantly, on an intangible scale, every male has a shared experience that facilitates bonding with one another. Overall, NS has helped foster ties and served as a leveller, and as a melting pot for our diverse cultures. In a quick survey by the newsapaper, Today, some 45% of the women aged between 14 and 25 years polled said "yes" to NS. Although not all females are enthusiastic about being conscripted, as my two girls will readily tell you, we should bear in mind the bigger picture. The fact that only men are made to serve NS is a form of discrimination. The current policy of enlisting men only fails to recognise the equal role that women can play in the defence of our nation. It also denies them the privileges that their male counterparts are afforded by virtue thereof. Sir, DPM spoke of forging a strong society which must necessarily entail the contribution of all Singaporeans, both men and women. I do not deny that extending NS to women will increase defence and related spending as well as have potential ramifications for our labour supply. But change is what remaking Singapore is all about, is it not? I would therefore like to ask the Minister for his reasons for not introducing NS to females.”
“Sir, although National Service has been introduced for more than three decades, for a variety of reasons, females have never been enlisted. MINDEF's response has hitherto been that, based strictly on our current defence needs, there is no need to enlist women for NS. Sir, perhaps it is time to reconsider this policy for three reasons: Firstly, women have an equal responsibility to men for the well-being of Singapore. Singapore belongs as much to the women as she does to the men. On the economic front, women already have equal access to education and to employment, whilst on the social and political fronts, there are no hindrances to participation and contribution. By the same token, women should not be excluded from National Service. Secondly, National Service need not be limited to military service. Equally compelling possibilities are nursing and civil defence but not for the reasons that Mr Chiam has given, which appear to revolve around stereotype views. My point is about enlarging the whole concept of National Service, regardless of gender, and not to reinforce stereotype views that nursing is only for women. Even for military vocations, there are women who are professionally employed currently. As the Minister has said, as technology and knowledge will be applied on an increasing scale, that is, more brains than brawns, the exclusion of women becomes less defensible. Thirdly, currently, NSmen are recipients of preferential treatment in several ways. NSmen who join the public sector are afforded higher starting salaries. They are given tax reliefs and issued more distributions by Government, for example, the New Singapore Shares. They enjoy membership of SAFRA club facilities.”
“Equal efforts must be made towards this group of people and it must not be viewed as part of the corporate volunteerism programme of the National Library staff. I would like to ask the Minister what efforts are being made to literally bring the library to the people so that no segment of the population is left out inadvertently.”
“Sir, I would like to continue in the same vein as Mr Seng Han Thong, in terms of the importance of awareness and general knowledge. In this knowledge age, where human capital is a critical asset, the key to success is really to have a skilled and innovative workforce that constantly updates its skills and knowledge. By imparting knowledge to the people, by providing the means to empower themselves, and by firing their imagination, the library itself plays an important role in this regard. I would like to begin by applauding the efforts of the National Library Board in reaching out to the population as a whole. I note that there are many activities geared towards the young and there has been a variety of family-oriented activities being offered. I understand that the library also organises trips to schools to raise the awareness of the library services amongst children. Schools are also doing their bit towards cultivating the reading habit, a habit that is crucial to foster a life-long learning instinct. Thus far, not surprisingly, many of these efforts would involve physical library facilities around the main library which is being built, regional libraries or those in institutions of learning, such as schools and universities. To complement this, community children's libraries were set up to bring the library closer to the people. These had mixed results, although they were instrumental in attracting people who would otherwise not make a trip to the library for a variety of reasons. Sir, most of these activities currently reach out to the majority of the population. However, I am concerned about the access to these services for the unconverted, the ignorant or the disadvantaged. Most of these are likely to be from low income families.”
“Between building a strong market place, that is Singapore, and nurturing viable locally grown market players, the whole Government machinery, except for IE Singapore, appears to be geared towards the strong marketplace position. Admittedly, Sir, sometimes the interests are not aligned between vibrant engines of growth and establishing a hub of activity in Singapore. Ultimately, a balance must be struck and our relatively small domestic economy must surely mean that we need to nurture external growth, whilst retaining a strong Singapore presence. I would therefore like to ask the Minister if he would consciously urge all Ministries to enlarge their ambit, to include the building of expertise beyond Singapore as far as possible. Free Trade Agreements”
“Sir, I probably sound like a broken record even as I stand here to press home the one same point that the whole of Singapore must be alive to our increasing dependence on the external economy for sustained economic survival, and this must necessarily begin with the Government. Sir, I have flipped through the tables in the Economic Survey 2003 publication to get an assessment of the size of our external economy but with very little success. The closest I came to was Table A1.10 wherein the Gross National Income was calculated. I had no feel of how big our external economy is, nor how we are faring. Sir, I am no economist and would need some guidance towards getting an answer, but my point is really a fundamental question on whether the Government is properly organised to execute what we believe to be the economic strategy for Singapore. In short, we talk GNP but we act GDP. Firstly, we say we operate in the global marketplace and that competition is not confined to geography. Next we exhort our local companies to expand abroad in view of the limited size of the domestic market. Yet, we do not talk about how big or how important the external economy is, or whether we are indeed making headway in the region. To add to that, we have only one dedicated statutory board, IE Singapore, to help expand the marketplace for Singapore enterprises. During the discussion on the role of the public sector for economic growth, I have asked the Prime Minister if we have the appropriate human resources within the Government to help drive this strategy. But I believe the greatest challenge lies in the mindset of the ministries which appears to be more Singapore-centric.”
“Sir, what I shall be speaking on may sound a little contrary to the call to delegate more authority to the community, but I do think minimum professional standards must always prevail for all things. Sir, of late, there has been a conscious move by the Ministry, specifically the LTA, to involve the community more in local traffic management. This is extended to a whole range of issues from which car park lots to be reserved for season parking, to whether humps should be built along accident-prone stretches and, if so, where precisely. Sir, everyone knows that there is nothing scientific about which side of the road to draw double white lines, or where the single white line should end. As my parliamentary colleagues would well know, there is frequently no right answer nor consensus as everyone would readily support the building of humps but no one would want it right outside his home. Yet this can frequently give rise to unexpected, un-neighbourly behaviour. Sir, whilst the move to involve the community is very commendable, it should never be done at the expense of a professional opinion. Towards this end, I would like to ask the Minister to state what is the Ministry's position with respect to LTA's rendering of professional views for local traffic management issues, as not doing so is tantamount to passing the unpopular buck to grassroots volunteers. Grassroots volunteers are happy to help facilitate the getting of feedback, but I do think it is unfair to impose the burden of professional decision-making on them. ERP for Motorcycles”
“Sir, as Mr Leong Horn Kee has elaborated, the banking sector in Singapore has undergone extensive consolidation and restructuring over the past few years. Banks have merged and many have folded their finance operations into the banks proper. We now have fewer and hopefully better placed financial institutions with the scale to compete globally. Coinciding with the consolidation within the financial services sector is the economic downturn. Thus, risk assessment has sharpened and the risk appetite checked by business failure. The plight of the smaller borrowers, including the SMEs, is one of a double whammy effect. SMEs figure less in the larger banks' radar screens. A company which used to have credit with two merging banks finds out very quickly that, upon merger, its total credit is not the aggregate, but a much smaller number. The principle of single borrowing limits may have been applied a little more stringently to the smaller borrowers. The second whammy comes in the form of assessed higher risk, and therefore a reduced amount of credit again. The consequence is one of tightening cashflow, and some may have been prematurely decimated as a result of reduced credit, and not necessarily bad business. 3.00 pm Thus, the SMEs are not simply asking for new support for entrepreneurial initiatives. They are really seeking some respite from a structural change, ie, the consolidation, as well as from the cyclical effect, ie, the downturn. As the structural change is permanent, I would like to ask the Minister for Finance to review the whole concept of risk-sharing financial assistance for the SMEs, with a view to closing this gap arising from the consolidation. It would appear that the banks are not so keen on this form of lending. Small Business Banking”
“Government Procurement Policies Sir, the Government seeks to achieve an open, fair, transparent and competitive system through well-defined procurement policies. There is no quarrel with such prudence. I am also heartened to hear the DPM recount yesterday the volume of tenders which has been secured by the SMEs. This is indeed encouraging. However, there is still feedback that the requirements as imposed by the Government departments are often-times the main hindrance to more participation by smaller suppliers, rather than the need to compete with the larger suppliers. For example, some contracts require a minimum level of capitalisation by the service provider, well in excess of what is reasonable for the services to be tendered for. And worse still, evaluators themselves may favour the better-capitalised companies for greater comfort or insurance against default or failure. Yet others require a track record of a certain length. These impositions are sometimes so overly stringent as to preclude the smaller suppliers from having a fair chance. As we know, if you are never allowed to build up a track record, how can you ever have a track record in order to qualify? Hence, my question to the Minister for Finance is one of asking him if, firstly, he could ensure that the bar is not pushed up unduly high by overly conservative requirements, and secondly, that he will advise all Government agencies to review their procurement requirements so as not to unwittingly favour the larger suppliers. In short, set the bar at the right level. The SMEs are not asking for a lopsided bar. 2.15 pm”
“Sir, over the years, companies have become increasingly alive to the notion on the cost of capital and the return on capital. In the case of Singapore, where we do not have natural resources, and where we need to undertake capital-intensive infrastructural projects, it is only appropriate that the public sector operates on a similar mentality as well. Of course, there is a challenge in terms of measuring the return on capital, as it is frequently for the public good, which may defy any attempt to quantify the benefit. For example, beyond deciding that an expressway is required, how does the Government fund the construction? Previously, this was entirely cash. Now, perhaps bonds can be part of the equation. Take another example: how does a statutory board decide if it should construct its own building or continue to rent? If there is a notion of capital, the discussion will no longer centre on a one-off development expenditure item, which draws heavily on capital, but a recurrent expenditure. It is thus commendable that the Ministry of Finance has addressed this need. I understand that the Ministry has raised this consciousness amongst statutory boards by, firstly, introducing a notion of capital injection similar to shareholders' funds; secondly, encouraging statutory boards to source for alternative funds such as issuing bonds to the public; and thirdly, imposing a value-add consideration when evaluating performance. I would like to ask the Minister for the status of this capitalisation exercise, and his assessment of the results thus far, in terms of internalising a profit-and-loss discipline, a curbing of potential wastefulness and the measurement of statutory boards' effectiveness.”
“Finally, if there are checks and balances against excessive compliance related costs given the self-funding nature and monopoly of ACRA in the provision of such services. Corporate and Accounting Scandals”
“Sir, the Accounting and Corporate Regulatory Authority (ACRA) was recently established, combining the Registry of Companies and the Public Accountants Board into one single body. The aim is to achieve synergy between the monitoring of companies' compliance with disclosure requirements, as well as the regulation of public accountants performing statutory audit. Sir, as a self-funding statutory board, ACRA is obliged to raise its own funds through the provision of its services as it would not depend on the MOF for any grants. It will have to use its own accumulated surpluses to finance its own operations as well as development projects. I note that while Government-funded statutory boards are not to make any profits from the fees and charges they impose, self-funded statutory boards like ACRA are not similarly obliged to do so. In theory, they are expected to use market rates to determine the fees and charges. But ACRA is essentially a monopoly, so it has been suggested that its rates must be competitive with those in other countries. For example, company registration fees were recently reduced from $1,300 to $300 in order to be commensurate with the rates of other countries. However, Sir, for many years this was not the case and it was not corrected. I would therefore like to ask the Minister for Finance, if, firstly it might be prudent to prescribe certain minimum standards of service to be delivered by ACRA, as really companies have no alternative service provider. Secondly, whether MOF would annually review the rates and charges imposed to see if they are excessive. Thirdly, whether MOF could periodically review the surpluses of ACRA, again, to see if they are excessive. And, if so, if the cost of its services can be lowered.”
“The belief is that after years of start-up losses, the Singapore parent will reap the due benefits of the profitable subsidiary via dividends or other distributions. The tax revenue for the Government will then rise in tandem. Net Income from Investments”
“Sir, this is not a new plea but one that bears repetition as there is a need to help facilitate the expansion of local enterprises beyond Singapore or, simply, to give them the 'leg up'. The Government has taken a step, a very small step many would say, to allow a loss transfer system of group relief since Year of Assessment 2003. However, there are two conditions. This will only be allowed for 75%-owned subsidiaries and only for those that are incorporated in Singapore. Foreign losses may not be transferred for the purpose of group relief, the reason being that a subsidy of foreign ventures by domestic tax revenue could effectively result. Sir, whilst I do not disagree with the rationale, I do think that the Government can err on the side of being liberal, or even generous. Otherwise, this will not square with the push by Government for local companies to go offshore. The feedback is that a super-majority stake is not always possible, let alone subsidiaries that are incorporated in Singapore but for offshore businesses. Many have lamented that the current concession offers no effective tax support for start-ups, which would be a strain on capital for the parent who will be paying a high effective group tax rate. I would, therefore, like to ask the Minister for Finance if he would be prepared to, firstly, review the current concession with a different mindset, not just merely from a direct comparison of the different tax regimes (for example, how Singapore compares with Hong Kong), but also from the perspective of providing meaningful incentives for local companies to expand offshore; and, secondly, lower the threshold to a simple majority of just over 50%, and allow foreign losses to be transferred.”
“Sir, I would like to thank the Deputy Prime Minister and the two Ministers for their comprehensive answers to almost all the questions except for the issue of medical benefits for female civil servants. I would like to let the Deputy Prime Minister know that we are waiting with bated breath and in anticipation of positive changes to come. With that, Sir, I beg leave to withdraw the amendment. Amendment, by leave, withdrawn.”
“" Many scholars are periodically channelled into the different Ministries upon graduation from prestigious universities abroad. They have no working experience whatsoever, apart from the limited internships they might have done abroad. Sir, some of these comments are perhaps unjustified but the challenge remains very real - that of having compatible or complementary skills and talent within the public sector, to facilitate the growth of local enterprise beyond Singapore. I would, therefore, like to ask the Prime Minister two questions: (a) what long term plans are in place to ensure that the quality of human resources for the public sector keeps pace with the changing requirements; specifically, will the infusion of scholars continue; and (b) what steps are taken to ensure that sufficient commercial experience is brought to bear on policy formulation and execution? Service Quality”
“Sir, I beg to move, That the total sum to be allocated for Head U of the Main Estimates be reduced by $100. It is heartening to hear the Deputy Prime Minister reiterate yesterday the importance of having a pro-enterprise civil service. Sir, this importance cannot be overstated, given our need to grow beyond the domestic economy, and amidst intensifying competition. Sir, our civil service has come a long way and is renowned for its integrity and efficiency. The Government has taken pains over the years to ensure that there is sufficient talent within the public sector as effective policy formulation and execution will help ensure our economic survival. The current push is for an enterprising Singapore with local companies that can be engines of growth along with the MNCs. But we all know that the push for globalisation is not solely a private sector issue. The public sector bears a heavy responsibility in providing the essential hardware and even software. The demands of growing beyond Singapore are very different from those relating to satisfying a domestic market. Talent may no longer be defined in the same way it was in the 60s and 70s. If the public sector is to support enterprise, then its employees have to know what enterprise is. Sir, it has become increasingly common for criticism to be directed by the business sector, especially the entrepreneurs and SMEs, at the bureaucrats, that they are a breed of scholars not tuned into the realities of life. They are variously described as "young punks, big shots but clueless about real life business", or sometimes as "impatient young people wanting to act according to their textbooks", or worse still, as "people not interested to think beyond their Ministries, let alone beyond Singapore.”
“The mainstay of section 15 relates to whether the donor has given informed consent, and whether that consent is not obtained by virtue of fraud or duress. It does not however preclude contracts which allow for the reimbursement of any expenses necessarily incurred by a person in relation to the removal of any organ or blood in accordance with the provisions of any other written law. It is debatable therefore whether this extends to loss of earnings. Some clarification by the Minister with regard to this point would be helpful. Finally, a suggestion to the Minister for living related organ donations. These are in principle less susceptible to abuses such as organ trading, because of the presumption of emotional ties. However, there is also the fear that donors would feel pressured or even coerced to make a donation to a relative. The current professional guidelines issued by MOH do not require the approval of the hospital's ethics committee, so long as relevant evidence of kinship is produced. The Bill does not change this position. There has been the suggestion that such donors should be made to undergo psychiatric evaluations to ensure that there is no element of coercion or pressure. On this note, Sir, I support the amendments to HOTA.”
“I would, therefore, like to urge the Minister to carry out more public education on the stringent safeguards in place as well as provide adequate counselling for affected families. With this assurance, there should be no objection to the continued adoption of brain-death as a legal criterion of death. Thirdly, the regulation of living donor transplants. Sir, I note that living donor transplantation is widely accepted and performed regularly in many countries. There is currently no legislation, and it is timely to regulate such transplants. And most people are supportive of such transplants. While the first class of transplants involving related parties is well understood and accepted, those between unrelated parties can potentially lead to organ trading, if stringent guidelines and policing are not in place.   I note the adoption of the spirit of wanting certain proof that the donor is not motivated by financial incentives. In addition, the following considerations should be addressed: (1) The medical risks to the donors and how to mitigate these risks; (2) Whether there is informed consent; and (3) Whether the donor is acting under duress. There is a fear that legislation will not cover loopholes, such that a trade in organs will unwittingly develop. However, I note, Sir, that at present it is already illegal to pay for or trade in organs. Therefore, the proposed amendments should not raise the risk of a development of the organ-trade. However, at the same time, there may be a need for a reasonable compensation to defray the costs and expenses of donors. In the United Kingdom, this is apparently allowed for to a certain extent. Under the proposed section 15A for living unrelated donors, approval must be obtained from the hospital's ethics committee.”
“However, with the purview now widened to cover all deaths, the onus is on the Minister and his officials to ensure that the criteria for certifying death are stringent and that the assessors are bound strictly by criteria that ensured impartiality. I shall elaborate on the determination of death shortly. The fear appears to be more of possible inefficient policing, than one of principle. So long as there is efficient policing, there should be no objection to extending HOTA to non-accidental deaths. Sir, with regard to defining the moment of death, since its inception in 1987, HOTA has always been applied to brain-death cases. This is notwithstanding the amendment to the Interpretation Act in 1998 to widen the definition of death to include brain-death. The definition of brain-death used by Singapore is the same as that used in many developed countries, which is determined based on a well-defined standard set of clinical criteria. The point would thus appear to be moot at this late stage. However, as my colleagues Dr Neo and Mr Gan have alluded to, there is perhaps a renewed fear that with the growing breadth of HOTA, medical professionals may be less rigorous in their determinations of death, that they will be motivated by the competing prospect of potential donors. This may cause grieving families to wonder if the lives of their loved ones might have been prematurely truncated. In our survey, about half expressed such reservations. Sir, medical professionals may be well-acquainted with the determination criteria, but the lay person, by and large, appreciates cardiac death, or when the heart stops beating, better than brain-death. Once again, our survey bears this out, with half feeling more assured with cardiac death for the harvesting of organs.”
“Hence, while this does not constitute violent objection, I would like to urge the Minister to carry out the necessary public education. The Minister may also want to allay the fears that there would be cosmetic defects in their loved ones whose corneas have been harvested. The other concern raised revolves around the observation that cornea transplants are seldom life-saving, if at all. There is no reason in principle why we should adopt such a limited position, especially with regard to the debilitating effects of blindness. Of course, in saying this, I am not endorsing a carte blanche approval of any and every organ, the failure of which would have a similarly damaging effect on the body. It is, however, safe to say that the practice of cornea transplants is well established here, and there are no ethical concerns that justify precluding their inclusion. It remains to be pointed out that those who possess strong beliefs can always have the remedy of opting out of HOTA. Secondly, the inclusion of non-accidental deaths. Clause 4 widens the scope for inclusion of non-accidental deaths, which refer to deaths from medical conditions. As the Minister has said, many other countries have already included both accidental and non-accidental deaths in the legislation. We would, therefore, not be the first to make such a move. Sir, non-accidental deaths were omitted from the purview of HOTA initially to allay any initial distrust of the Act, since it was easier to accept that very little could be done to save victims of bad accidents, as opposed to patients who were terminally ill.”
“Mr Speaker, Sir, I rise in support of the proposed amendments to the Human Organ Transplant Act. The reasons are compelling and I shall therefore not repeat them. I would, however, like to address the issues which have arisen from the following amendments: (1) The inclusion of corneas and hearts; (2) The inclusion of non-accidental deaths; and (3) The regulation of living donor organ transplants. In addition, when discussing the inclusion of non-accidental deaths, I would briefly revisit the issue of the determination of the moment of death, for harvesting organs, as these amendments may rekindle old perceptions and fears. Sir, the PAP Women's Wing has consulted with professional women and carried out a survey amongst some 300 women activists of varying ages and from all walks of life. I shall be reflecting some of the feedback in my speech. Firstly, the inclusion of corneas and hearts. Sir, clause 3 seeks to add corneas, hearts and livers to the First Schedule in the definition of an organ. At present, a large number of corneas used for transplantation come from foreign sources and the challenges are well-known, as the Minister has already touched on. It would, therefore, be desirable to include corneas under HOTA. An equally compelling argument can be made for heart transplants. In our survey, more than 50% of the respondents disagreed with the Chinese belief that corneas were needed in the afterlife, compared with the 32% who thought so. This appears to be more of a Chinese folklore or belief, rather than being rooted in any religious grounding. Nonetheless, some may feel uncomfortable that their loved ones, or some day, they themselves, will literally die "heartless".”
“Sir, in updating the relevant legislation, what would the Deputy Prime Minister's approach be in terms of balancing the need to protect the unit holders of these new instruments as well as ensuring that the new instruments will have a fair chance of being viable and attractive?”
“Investigations by MINDEF and the police will be thorough and complete and, where there had been shortcomings, failures or wrongdoings, those responsible will be held to account and face the full force of the law. Second, to put right what has gone wrong in this unit and for the whole SAF to learn from this and tighten up, so that this does not ever happen again. To put the commandos on the path to setting right what has gone wrong and to rebuild themselves, MINDEF has posted in a new Chief Commando Officer to lead that process. Sir, I said just now in conclusion - and I think it is important that I say it again - that parents entrust their sons to MINDEF and the SAF to prepare and train them to perform a national duty in the defence of Singapore, and MINDEF and the SAF do not take this responsibility lightly. We will not let up on hard and realistic training, but we will never compromise on safety or risk the lives of our servicemen. It is MINDEF and the SAF's solemn commitment to take in our young men, train them well, and return them safely at the end of two or two and a half years to their families as operationally-ready soldiers.”
“Sir, this morning, I summoned all the unit commanders and senior commanders in the SAF from all the three services together with the service Chiefs - more than 400 of them - to impress upon them the seriousness of this incident and to reinforce the importance of looking after their men. I told them that this incident is a stain on the reputation of the SAF and that they have to erase that stain by their actions. Every instructor, section leader, unit commander, senior commander, is responsible for looking after his men. And they are personally responsible for this. I explained to them what I mean by looking after their men. Several years ago, I visited a country where, due to the security situation, units of the armed forces had to be ready for battle at any time. I spoke to a young commanding officer in an elite unit with young national servicemen and asked him what weighed most heavily on his mind, what kept him up at night. He told me: "Sir, what is foremost in my mind every day and what I think about all the time is that if my unit is called to battle tomorrow, that I have trained my men well enough so that they will do their duty for their country and be able to carry out their mission; that I can bring my men home again because I have trained them and prepared them properly; and that I can face the families of those who did not return, knowing that I did all I could to train them well and to lead them well in action." Sir, that is what our commanders must do to look after their men. I have two priorities now. First, to complete the inquiries and investigations, to find out who is responsible for carrying out these unauthorised acts and allowing them to take place.”
“Sir, I have two questions for the Minister for Defence. Given that the concept and image of National Service has evolved somewhat positively over the past few decades, where I think many now serve with real pride, how would the Minister assure the public that they can continue to put their trust in the SAF and that there will always be: firstly, honesty and complete disclosure about any mishap; secondly, utmost sincerity in tracking down the causes of death and taking the necessary corrective action as appropriate? The second question is specific to the internal audit that the Minister was talking about, whether, as a preventive measure, there is merit in setting up an audit body comprising ex- or non-SAF personnel to audit training programmes so as to ensure that only authorised methods are allowed and that safety standards are adhered to. RAdm Teo Chee Hean: Sir, I will look into the suggestion raised by Mrs Lim Hwee Hua on whether we can strengthen our audit in this way. I will look at it, together with the suggestion of Dr Ong Chit Chung on the GSI, to see whether that is one way in which we can bring a lot more experience into the GSI and to have more people to do more audits. Sir, I know that the words I say in this House will never be sufficient to alleviate the grief of the families of those who had died, nor fully answer the points and concerns that have been raised today and which surely must be in the minds of the public. They have to be answered, they must be answered. But not only with words, but by the actions of the SAF - what the Commando formation does to put right what has gone wrong and what the SAF does to look after its soldiers.”
“I would like to know whether these initiatives will also be extended to the other languages other than English alone, for example, in Chinese, Malay and Tamil, and also how would the DPM guard against an expectation of Government protection by the public against individual bad investment decisions as opposed to a lack of experience.”
“Hence, I am proposing once again that Government seriously consider, firstly, managing CPF on behalf of members, enlisting the help of fund managers where necessary, and, secondly, over time, to have the minimum interest rate more reflective of prevailing market trends. If we do not proactively ensure that CPF balances return attractively, lower contribution rates would almost certainly aggravate our ageing challenges. To conclude, Sir, I am optimistic that the changes will send the right signals, boost Singapore's competitiveness and investors' confidence in our resolve to tackle economic challenges. Already, analysts have applauded the move and are expecting on average an encouraging 1%-3% point boost in margins, to as high as a 10% jump in profits for the manpower-intensive industries. The move will also better position Singapore for the economic recovery, signs of which, though patchy, are nonetheless encouraging. On that note, Sir, I support the overall intent of the CPF revisions.”
“These changes would simply mean even less CPF contributions on an overall basis, be it in the Ordinary or the Special Account balances, unless income levels climb substantially. But we know that that is unlikely because competitiveness will always check any steep rise in our income level. Despite all the radical changes to the CPF scheme, we have, if I may suggest, one more sacred cow to be slaughtered, that is, the management of the CPF balances. Sir, the Government has shied away from managing CPF balances, preferring to allow individual Singaporeans to decide their own risk levels and allocation strategies, down to picking their own stocks. Thankfully, we no longer allow investment gains to be withdrawn. But there are still some gaps and I would like to elaborate on these. Firstly, by guaranteeing a minimum interest rate on both Ordinary and Special Account balances, the Government is already managing CPF monies by default. Secondly, there is sufficient anecdotal evidence to suggest that a balanced portfolio, including all the different asset classes, would generate, on average, a higher return in the longer term. Sir, we need to grow the nest egg, not through higher contributions in good times, or distributions of New Singapore Shares, but through the compounding effect of a higher rate of return. In addition, a diversification across different markets would reduce the incidence of double jeopardy in the event of a slowdown in Singapore. Currently, individual Singaporeans do not have the motivation to attempt any diversification as they have a risk-free alternative and they simply have no scale. And neither do fund managers have the scale to mount such aggregated products as they have no assurance that CPF members would want to take the risk.”
“We now know that for any of these assumptions to fail, some Singaporeans may no longer be able to hold on to their property. Wages have not only not risen, many have actually been cut - and these lower CPF contribution rates would aggravate the situation. Besides, with retrenchment and contract work being increasingly the norm, Singaporeans now have to factor in periods of no income in between contracts. The measures that the Government would be announcing would hopefully help many, even if they have currently negative equity on their property, that is, where the loans they have taken out far exceed the current market price, if they were to sell the property on the market now. However, the larger issue is whether there is a real threat that we would end up with negative equity for property, like Hong Kong or Japan. If so, these are not just problems for the affected Singaporeans, they also spell challenges for our banks as well. Sir, what about those who have made the wrong assumptions and who have found their purchasing or servicing ability so impaired that they simply cannot continue with ownership? For those who have borrowed from banks, I guess this is an issue that banks have to address. I hope the Deputy Prime Minister will address the situation for those who have, for example, purchased bigger HDB flats from the resale market at the peak and who have simply no means of servicing these loans right now. Secondly, the implication on financial sufficiency for old age. Sir, before these changes, we were already concerned with there being financial insufficiency post-retirement, especially in the context of our ageing population against a longer life expectancy.”
“Sir, many Singaporeans have asked why does the Government not dip into the reserves - does the present situation not constitute a rainy day? The Government needs to explain more. Having said that, unlike Mr Chiam, I recognise that the current unemployment challenge is more structural than cyclical. Hence, changes are needed rather than a dip into the reserves to help ride out the downturn. However, it is still necessary to have the package of measures to help cushion the otherwise harsh impact, especially for mortgage servicing. Sir, many Singaporeans have accepted the need for CPF cuts not because they are not going to be adversely affected but because they see the wisdom of taking short-term pain for a long-term benefit, which is ultimately the survival of Singapore. But they are also asking, if these changes are not sufficient and do not help to lower the unemployment rate, what is next? Another three percentage point reduction to 30%, and then what else? What other levers can we pull? Sir, it is important therefore to rally Singaporeans behind every effort and for the Government to continue to instill confidence through a clarity of purpose for each and every move. Let me, Sir, talk about two of the more significant implications of these changes for Singaporeans. Firstly, the threat of negative equity for property assets and, secondly, financial sufficiency for old age. Negative equity and structural erosion of affordability. Sir, unfortunately, many Singaporeans have based their property investment decisions on assumptions which were drawn up during the heady growth phase of the 1990s, where we had a steady 5% to 10% wage increase every year, continuous employment and frequently more than one income stream.”
“Sir, I would like to make two general comments relating to the CPF changes and discuss two specific implications. Firstly, as a supply-side measure - the CPF changes are blunt but effective. The PERC survey and other job data comparisons, regardless of how one would like to interpret or qualify the results, with anecdotes, such as what Mr Chiam has done, point to the reality that we have indeed priced ourselves out of the global market. Because of this reality, there are really no two ways about it in that we do not have the luxury of time. These changes would have an immediate impact on wage costs unlike tax cuts, which are contingent on corporate profitability. Yet, we must be fully conscious that this move to retune the CPF scheme is no panacea for the unemployment challenge; it merely seeks to mitigate further loss of both blue and white collar jobs from uncompetitive wage levels. Sir, as many of my colleagues have emphasised, we must also recognise that a holistic approach is needed, not just a restructuring of wages, which is inevitable, but a concerted effort to lower all components of business costs, including Government levies and charges and real estate costs, to complement the CPF changes and the tax cuts that have already gone before them. Specifically, the Government needs to address the rigid, seniority-based wage system for the public sector, beyond these CPF changes, since, firstly, the public sector competes with the private sector for manpower during tighter employment situations and, secondly, expenditure on manpower is a significant component and affords room for cost cutting by the Government itself. Secondly, dipping into reserves.”
“One major fund manager recounted how his group's filings for Singapore accounted for 17% of the total, when the group's holdings represented a mere 1% of the total exposure. Another fund manager has a department of four individuals dedicated to ensuring such compliance, but with no clear idea of what the value-add is. Of course, it can be argued that a similar trend can be drawn from the UK investments. However, the practical question is: can these fund managers ignore the UK market? The answer is no. Can they ignore the Singapore market? I do not think we should be deluded into thinking that they have to be invested in Singapore. But, Sir, this is not the only cost. The real cost is in the consequential curtailing of the liquidity of our own listed companies and their ability to tap capital from a wider shareholding base. Investors of Singapore equities fight shy of raising exposure in the fear that they may breach the law as a group even though the decisions are frequently undertaken independently. I therefore propose that, in instances where international fund managers acquire listed shares not for purposes of control and where the funds are managed separately, they be allowed to apply for an exemption from aggregating the interests in respect of funds. This can be done on a case-by-case basis. It is essential that we keep pace with changing market practices. My proposal should reduce the compliance burden of the international fund managers and result in more meaningful disclosure. It will also go a long way towards enhancing Singapore's position as a wealth management centre. On that note, Sir, I support the Companies (Amendment) Bill.”
“This approach requires review, especially in the context of our circumstances where our companies are relatively smaller in terms of market capitalisation and where there is insufficient breadth of investible companies. Sir, international fund managers manage a variety of funds, comprising typically mutual funds and institutional funds for which they serve as investment advisors. These funds are developed for investors with varying needs and requirements subject to different investment objectives, time horizon guidelines and restrictions. The funds also invest in a wide range of investments, such as equities, bonds and money market instruments. No two funds within the same group are identical. The real test of control, which is essentially the underlying focus, is in the voting of shares. Within a corporate group, there may be a number of entities, including companies, funds and managed investment schemes which hold voting shares in the same listed company. In deciding how to vote their shares, the entity, for example, a fund, must act in the best interests of its members. This may not necessarily be aligned with the interest of the corporate group as a whole nor of the other entities within the group. Sir, in light of the differing nature of the funds, shareholdings should not be aggregated across the funds for the purposes of complying with the disclosure requirement of substantial shareholding interests. Let me highlight this unsatisfactory treatment in real operating terms, to bring home the extent to which we are imposing unduly high compliance costs on international fund managers investing in Singapore.”
“Mr Deputy Speaker, Sir, I support the provisions in the Companies (Amendment) Bill. I welcome the various moves which are undertaken in the spirit of ensuring that the company law and regulatory framework for Singapore is modern, accords with global standards and one which will promote a competitive economy. Sir, it is in this same spirit that I will focus on the issue of definition of substantial shareholding for compliance purposes. The interpretation of the new section 83, as described in clause 10, like the old section 83, will continue to have far-reaching effects on capital markets here, not least of all, our stock market. Any over-zealousness, witting or unwitting, to apply a more conservative interpretation than necessary, will serve to stifle our own stock market growth, and ultimately to limit the ability of our listed companies to raise capital. Sir, allow me to elaborate. Clause 10 of the Bill repeals and re-enacts section 83 to require the reporting of changes in substantial shareholding where the shareholding exceeds discrete 1% threshold, above the minimum 5% threshold, the 5% level being defined as what would constitute a substantial shareholding. This is an improvement from the present position, which is, I believe, similar to that being done in the UK. But, Sir, this does not address the dilemma being faced by funds, particularly big funds, investing in Singapore. The underlying challenge is one of the need for international fund managers to aggregate the interests of the various funds which they operate. Hitherto, the approach has been, like in the UK, to aggregate shareholdings across all associated entities, including funds, within a corporate group.”
“Mr Speaker, Sir, I have two questions for the Deputy Prime Minister. The first is on the issue of public education and awareness. For unwitting breaches of the Home Quarantine Orders, how would the Government help address the issue of ignorance, especially of the older citizens who may not understand the implications of their actions or simply the substance of the matter, or of illiterate persons who can converse only in dialects? The second question relates to the economic impact on groups of people who rely on licences which are linked to the Medisave contributions. Will the renewal of licences for conducting business, for example, the vocational driving licences for taxi drivers, be linked to the Medisave contribution? And where there could be cashflow crunches in view of the SARS effect, would the Government be flexible enough to allow the renewal without insisting on a complete fulfilment of this request but by accommodating payments by instalments or even reductions in contribution?”
“Sir, as restructured hospitals attend to both subsidised and private patients, there is always a nagging suspicion that it is run on a not-for-profit basis for the subsidised patients, but on a totally commercial one for private patients. Some even conclude that medical practitioners are remunerated according to how much revenue they can bring in; in other words, how many private patients they see. In short, many wondered if there is a disincentive to treat subsidised patients properly. I am not advocating that the same basis should be applied to both, but it would be useful for the Minister to explain how doctors are remunerated at the restructured hospitals. Finally, one can argue that the best test of what is the right level of subsidy and what constitutes affordable healthcare might be to extend the subvention to the private hospitals. Generally, private hospitals contemplate capital expenditure carefully. They do not have the luxury of building ahead of demand and can thus provide a useful benchmark for the restructured hospitals. I would be interested in the Minister's response.”
“Sir, the Minister has informed this House that the Government's restructured hospitals would be run on a not-for-profit basis. This has indeed provided assurance to the public at large that there will not be the typical pre-occupation with making profits that a commercial concern would have, which can otherwise undermine the Government's intent to make healthcare services affordable to all. Sir, some lingering concerns still exist, for which I seek the Minister's response. These revolve around, firstly, the motivation for cost control in order to ensure overall affordability; and secondly, the alignment of interests of medical practitioners with the hospitals and, ultimately, with the public. Sir, within the not-for-profit framework, how do hospitals control costs, both recurrent in the provision of healthcare and in the maintenance of facilities which are, to a large extent, overheads? I realise it is difficult to predict patient demands. But how do we guard against the over-supply of beds in restructured hospitals? Over-capacity attracts some maintenance cost, even if sections are closed. If nothing else, it reflects an opportunity cost. Next, I would like to echo Dr Lily Neo's sentiments on the state of the healthcare delivery system today. We now have two clusters, SingHealth and National Health, with the respective complements of specialities and facilities. How much oversight is there, at the strategic planning level, to ensure that there will not be unnecessary duplication of capabilities, or, worse still, no spiralling up of manpower cost from the limited talent pool? Furthermore, how do hospitals within each cluster operate within this not-for-profit framework? How much latitude do they have in cost control measures?”