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, first, let me thank Members for their comments and suggestions. The issues that they have raised fall under the following three categories: (i) Making the tax system more effective; (ii) Enhancing financial stewardship of our investments; and (iii) Strengthening the framework for governance and accountability. Our tax system seeks to promote enterprise and entrepreneurship while raising sufficient revenues to meet our expenditure needs. The key tax changes this year will help Singapore attract more investments and create more good jobs over time, and opportunities for our people. Sir, our income tax system is characterised by low headline rates coupled with targeted incentives and reliefs to promote enterprise and effort. In this year's Budget, we have enhanced a number of our tax incentives to boost our capital markets. These changes will further strengthen Singapore as a financial centre. Mr Inderjit Singh has suggested that, beyond these measures, the Government should encourage investments in private equity by allowing upfront income tax relief on such investments. Our tax regime is already highly favourable for all investments by individuals, including in private equity. We do not tax capital gains. For approved start-ups, we have the Enterprise Investment Incentive (EII) which shares the risk faced by investors by granting them tax relief for investment losses made on disposal. Sharing the downside risks on these investments and allowing investors to keep their upside gains by not having a capital gain tax is better than an upfront deduction of investment which could distort investment choices. Mr Singh also has proposed to grant either tax deduction for funds for investment or tax deferral for companies that invest in overseas expansion.”
“There are generous tax reliefs for taxpayers caring for their aged parents and young children. A taxpayer may claim up to $8,000 in relief for maintaining each parent, depending on individual circumstances. Taxpayers who have fewer or no siblings are not disadvantaged. This is because only one child may claim parent relief in respect of one parent and the amount of relief a taxpayer can claim does not depend on the number of siblings he or she has. Our tax system also provides support to those raising children. Including the Working Mother’s Child Relief, a taxpayer can claim up to $25,000 in tax relief per child. In addition, taxpayers are also granted Parenthood Tax Rebates of $10,000 for their second child and $20,000 for each of the third and fourth child thereafter. SELECTIVE EN BLOC REDEVELOPMENT SCHEME (SERS) (Concessionary loans for replacement flats) 29. Mr Baey Yam Keng asked the Minister for National Development, with regard to the original Selective En Bloc Redevelopment Scheme (SERS) flat owners who are eligible for concessionary housing loans for their replacement flats, whether the Ministry will consider treating those opting for replacement flats of the same size as having enjoyed only one concessionary loan, since they have been compelled to take up a subsequent housing loan.”
“Sir, allow me to put the situation in context. Currently, most GST-registered persons do not have difficulties in paying GST to IRAS. In 2006, 93.4% of GST-registered persons actually paid GST on time. The amount that is actually not paid on time is only about 5% of the GST collection. Having said that, for businesses that have special circumstances or experience genuine financial hardship, IRAS would certainly help them tide over the financial difficulty by granting monthly instalments with the late payment penalties. "NO WRONG DOOR" POLICY (Publicity) 13. Ms Lee Bee Wah asked the Prime Minister and Minister for Finance (a) since the introduction of the "No Wrong Door" policy in 2004, whether there has been any feedback on how this scheme has worked out; and (b) will his Ministry look at ways to give more publicity to this scheme as it may not be widely known by the public.”
“Sir, as for levying a charge for advance ruling, this is, in a way, to counter the cost savings that companies would realise by having the advantage of an advance ruling. As regards the special arrangement that might come about from helping businesses to register for GST compliance, I shall leave the Member to await the Minister's statement afterwards.”
“00 PM CARDIOPULMONARY RESUSCITATION (Training in schools) 15. Dr Fatimah Lateef asked the Minister for Education if there are plans to incorporate cardiopulmonary resuscitation (CPR) training into the school curriculum especially from secondary school level onwards as many cardiac arrests happen in the community and not in hospitals and healthcare institutions.”
“Mr Speaker, Sir, I beg to move, That this Parliament, pursuant to section 7 of the Civil List and Pension Act (Chapter 44), resolves that the Schedule to that Act be varied by deleting the figures "$2,507,200", "$117,000", "$2,733,200", "$1,108,500" and "$92,800" in the second column and substituting for them the figures "$2,661,700", "$132,000", "$2,724,400", "$1,301,500" and "$64,500". Sir, I propose an additional provision of $325,400 be supported for the Privy Purse under Class I Expenditure for FY 2006 in view of higher bonuses and higher expenditure on utilities. This will increase the Class I expenditure for FY 2006 to $2,797,300 and Class III expenditure to $1,301,500. For Class II expenditure, I propose a revised provision of $2,724,400. This is $8,800 lower than the budgeted provision of $2,733,200. For Class IV expenditure, I propose a revised provision of $64,500 which is $28,300 lower than the budgeted provision of $92,800. It is therefore necessary to vary the provisions in the Schedule to the Civil List and Pension Act (Chapter 44) as indicated in the motion before the House. Sir, I beg to move. Question put, and agreed to. Resolved, That this Parliament, pursuant to section 7 of the Civil List and Pension Act (Chapter 44), resolves that the Schedule to that Act be varied by deleting the figures "$2,507,200", "$117,000", "$2,733,200", "$1,108,500" and "$92,800" in the second column and substituting for them the figures "$2,661,700", "$132,000", "$2,724,400", "$1,301,500" and "$64,500". ADJOURNMENT Resolved, That Parliament do now adjourn to a date to be fixed. - [Mr Wong Kan Seng]. Adjourned accordingly at Four o'clock pm to a date to be fixed. WRITTEN ANSWERS TO QUESTIONS FOR ORAL ANSWER NOT ANSWERED BY 3.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Overview of the Bill The Bill seeks to repeal the Property Tax (Surcharge) Act with effect from 1st July 2006. This change was announced by the Prime Minister in his 2006 Budget Statement. The Property Tax (Surcharge) Act was enacted in 1974 to impose a surcharge, in addition to the property tax payable, for certain classes of properties held by foreign owners before 1st January 1974. The purpose then was to discourage foreigners from holding onto these properties during the time of housing shortage. The surcharge is no longer needed as, firstly, we now regulate property ownership by foreigners through the Residential Property Act (RPA), and, secondly, most of these landed properties bought before 1974 have either been sold to Singaporeans or to other foreign owners who have obtained approval under the RPA and who therefore are not required to pay the surcharge. Key provisions Sir, clause 1 introduces the Act and states that it will be in effect from 1st July 2006. Clause 2 repeals the Property Tax (Surcharge) Act. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mrs Lim Hwee Hua]. Bill considered in Committee. [Mr Deputy Speaker in the Chair]”
“As many of them are technical in nature, or relate to improvements in tax administration, I will not put Members through the details of the remaining changes. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mrs Lim Hwee Hua]. Bill considered in Committee. [Mr Deputy Speaker in the Chair]”
“My Ministry has reviewed the rebate and will be making the following enhancements: Firstly, to further promote the importance of an intact family, the rebate will be extended to the natural parents of an illegitimate child born on or after 1st January 2004 if they marry before the child reaches six years of age. Secondly, for parents of an adopted child, the child’s qualifying age for the parents to receive the rebate will be streamlined from the current age of 21 years to 6 years with effect from 1st January 2006. This means that parents who adopt a child on or after 1st January 2006 will qualify for PTR if the child is below six years old at the point of adoption. The changes to the Parenthood Tax Rebate Scheme are reflected under clause 29 of the Bill. (h) Adoption of the Financial Reporting Standard 39 for accounting purposes I will be introducing a new section to institute the tax treatment arising from companies’ adoption of the Financial Reporting Standard 39 which relates to Financial Instruments: Recognition and Measurement, or FRS 39 for short. With FRS 39, companies will now have to reflect most of their financial assets and liabilities at market values in their financial statements. To minimise the tax adjustments arising from the adoption of this standard, the income tax treatment of financial assets and liabilities has been changed so as to be more in line with the accounting treatment. This new section is provided by clause 21 of the Bill. Members may wish to note that IRAS has already issued a circular on 30th December 2005 to explain the changes in detail. Conclusion Finally, 19 other off-Budget changes have been incorporated in this Bill as well.”
“Off-Budget Tax Changes I shall now deal with the other tax policy changes which require amendments to the Income Tax Act. Our existing tax policies and incentive schemes are reviewed regularly to ensure that they remain relevant. Let me now highlight three major changes to our incentives and policies that arose from these ongoing reviews. (f) Penalty for failure to file an income tax return Currently, the penalty for not filing an income tax return is significantly less severe than the penalty for under-declaring income. This creates an incentive for taxpayers to avoid taxation by not submitting their income tax returns. To discourage this practice, a penalty of double the amount of tax undercharged will be introduced for the failure to file a tax return in respect of any year of assessment within three years from the filing deadline. I would like to clarify to Members that the new penalty will only be imposed on taxpayers who without any reasonable excuse fail to file their returns in a timely fashion, and is not targeted at taxpayers with valid reasons for late filings. The penalty is introduced by clauses 39, 40, 41, and 42 of the Bill. (g) Enhancement of Parenthood Tax Rebate (PTR) for parents of legitimised and adopted children The Parenthood Tax Rebate was introduced as part of the Marriage and Parenthood Package announced in August 2004 to married parents for their second, third, or fourth child born to them or legally adopted on or after 1st January 2004.”
“(c) Writing down allowances for the cost of acquisition of intellectual property rights To boost Singapore’s attractiveness as an intellectual property hub, writing down allowances will be extended to companies which have acquired or will be acquiring the exclusive or substantial economic rights to approved intellectual properties in the window period running from 17th February 2006 to 31st October 2008, subject to conditions. The Income Tax Act will also be amended to allow companies to claim writing down allowances for the full cost of acquiring an intellectual property on or before 31st October 2008 even if the payments for the acquisition were made on a staggered or instalment basis. The enhancements to the rules for claiming writing down allowances are covered under clause 16 of the Bill. (d) Tax deduction for treasury shares for employee stock option and share award obligations With effect from the year of assessment 2007, companies will be able to deduct against their income, the cost incurred in the purchase of treasury shares which are used to fulfil obligations on employee stock options and share awards. Clauses 11 and 12 of the Bill provide for these enhancements. (e) Enhancement of the tax exemption scheme for foreign-owned funds Currently, the tax exemption scheme for foreign-owned funds is limited to funds which are not tax resident in Singapore. To further support the growth in our asset and wealth management industries, tax exemption will be extended to foreign-owned funds which are resident in Singapore and approved during the period from 17th February 2006 to 16th February 2011. This enhancement is reflected under clause 10 of the Bill.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time". The Income Tax (Amendment) Bill comprises two groups of amendments to the Income Tax Act. The first provides for the income tax changes announced in the Budget Statement in February 2006. The second group covers other amendments to the Income Tax Act arising from ongoing reviews to improve our income tax framework. The Income Tax (Amendment) Bill was released for public consultation from June to July 2006. The draft Bill has been revised to incorporate a number of suggestions from businesses and members of the public. Tax changes from 2006 Budget Statement Let me first highlight the key tax policy changes that were announced in the 2006 Budget Statement. (a) Maritime Finance Incentive (MFI) scheme The Maritime Finance Incentive or MFI scheme was introduced to nurture the growth of ship financing activity so as to enhance Singapore’s position as a maritime hub. Under this scheme, tax exemption will be granted on the qualifying incomes of Approved Ship Investment Enterprises, with a concessionary tax rate of 10% for Approved Ship Investment Managers. The MFI scheme is introduced by clauses 2, 10, 35, and 44(f) of the Bill. (b) Tax treatment of prescribed Islamic financing arrangements To promote Islamic finance in Singapore, the tax treatment of prescribed Syariah-compliant financing arrangements entered into by a financial institution on or after 17th February 2006 will be harmonised with conventional financing arrangements to ensure a level playing field. Clause 21 of the Bill provides for these changes.”
“These are qualities which appeal to the maritime business, given the capital intensive requirements and the long term and cyclical nature of the industry where players seek to minimise sovereign risk arising from the changes in tax or regulatory policies. Singapore would be well placed to be the maritime hub of Asia. Air Transport”
“To this end, MPA and NUS have set up the Centre for Maritime Studies to focus on research on maritime business issues in June last year. Maritime R&D received a further boost with the launch of the NOL Fellowship Fund to fund research in key transportation and logistics issues. Sir, Mr Ong Kian Min raised a question on how our local shipping SMEs will fit into the plan to develop Singapore as an IMC. I wish to assure Mr Ong that both SMEs and global shipping groups are very important complementary components of our IMC strategy. SMEs in fact make up the majority of companies in the maritime services sector performing critical functions in areas such as ship agency and crewing, bunkering and ship chandling, just to name a few. As the IMC in Singapore grows, SMEs will also benefit from the larger market and expertise brought in by international shipping groups. Singapore shipping SMEs are therefore well placed to grow into world-beating companies. One such example is Pacific International Lines (PIL). Indeed, as we strive to develop as a world-class maritime centre, our aspirations must be greater than just being fast followers of others, but leaders in research, industry development and public-private collaboration and partnership. In this regard, the Singapore Maritime Foundation plays an extremely important role in terms of facilitating networking amongst different sub-sectors, profiling the industry as well as leadership in marketing and promotion efforts overseas. We have the advantage, Sir, of being along a major maritime trade route between India and China, and in the heart of South East Asia with a first-class hub port and a growing and vibrant maritime community. Singapore is well known for being a predictable, efficient and quality business environment.”
“Singapore's growth as a base for shipping companies has also spurred the growth of ship financing activities here. We have already a number of major foreign ship finance banks, but with the slew of new buildings, especially from Asia-based shipowners and an already well developed financial sector in Singapore, there is clearly an opportunity for us to do more and aspire to be Asia's ship financing hub. The new Maritime Finance Incentive (MFI) will target alternative ship financing structures such as shipping funds and shipping trusts. It provides tax exemption for ship investment vehicles and a 10% concessionary tax rate for ship investment managers. This incentive can bring ship ownership and investment beyond the traditional shipowners to institutional investors and even the investing public. Beyond just adding to the growth of our economy and, in particular, the financial sector, the MFI will make Singapore a more comprehensive one-stop location for all the stakeholders. Since the Budget Speech announcement, I am glad to inform the House that we have received positive feedback and strong industry interest in this scheme. Mr Yatiman Yusof also asked about manpower development. Indeed, this is an integral part of our IMC strategy. In 2002, the MPA had set aside $50 million over five years under the Maritime Cluster Fund to give maritime training a boost. To date, we have spent about $24 million on various manpower development programmes and tie-ups with universities and institutions. I would like to assure Mr Yatiman that these are opportunities open to both Singaporeans and foreigners. Also, our position as a leading port and maritime centre can only be sustained if we build up capabilities in the area of commercial and technical research.”
“The Singapore Registry of Ships is now the fifth largest merchant fleet in the world with more than 3,200 vessels totalling 33 million gross tonnes flying the well-respected quality Singapore flag. This is an improvement from our seventh position and an increase of more than 40% since 2002. Under the AIS, we have a stable of 68 international shipping groups. In 2005 itself, we registered a strong 50% increase with reputable global players like Norgas Carriers, Teekay Shipping and J Lauritzen joining our cluster. With more reputable names in our maritime fold, our cluster has increased in prominence. AIS companies have committed to generate business spending in excess of $2.5 billion annually. It is therefore fitting that the Minister for Finance should announce in this year's Budget that the AIS scheme will be extended by a third 10-year term, bringing the maximum incentive period for qualifying shipping companies to a total of 30 years. This extension will provide shipowners and operators with greater certainty to develop their business in Singapore for the long term. The surge in the Registry tonnage as well as the rise in the number of AIS participants can only mean multiplying effects for the maritime ancillary services. These are, however, uneven across the different ancillary services. Sir, there are some services which are sticky and more resistant to relocation to Singapore, which include financial, insurance and legal services. Nonetheless, the Government will continue to direct more efforts at attracting such services here by working closely with industry partners to identify gaps which we can fill. Mr Wee Siew Kim asked about the promotion of ship financing structures.”
“Mr Andy Gan also asked about the impact of the purchase by Dubai Ports World of P&O ports on PSA's internationalisation efforts. Sir, P&O operates some 29 ports around the world with a strong presence in South Asia, Australia and the US. Acquisition of P&O would have helped PSA expand overseas in new markets amid growing competition in the industry. However, as the bidding for P&O intensified, PSA, after careful consideration, decided that it would not be to its interest to make a higher counter-bid for P&O. There are still many opportunities in the global marketplace of ports. I am sure PSA will continue to be on the lookout for attractive projects to increase its international footprint. On the Government's part, we will continue to closely monitor key industry trends, such as consolidation and vertical integration in the global port and shipping sectors. And where necessary, we will adjust and adapt quickly and flexibly to maintain our port's competitiveness. Sir, let me now move on to the International Maritime Centre (IMC) itself. Mr Ong Kian Min, Mr Andy Gan and Mr Yatiman Yusof have asked about the progress of the IMC, and I am pleased to report that we have made some noteworthy progress. Sir, shipowners and operators are the cornerstone of an IMC and they are the primary generators of demand for other maritime ancillary services, such as ship management, shipbroking, marine insurance, finance and legal services. Our fiscal incentive schemes, such as the Singapore Registry of Ships (SRS) and the Approved International Shipping Enterprise (AIS), are therefore designed to encourage a core group of shipowners and operators to set up here in Singapore, and both schemes have had some measure of success.”
“For planning purposes, we have therefore made preparations for our ports to have the capacity to handle 50 million TEUs by 2018. Sir, despite our favourable market position, we cannot take our customers nor our good performance for granted. Regional ports are competing hard to increase their share of the container transhipment business. It is therefore critical that the Marine and Port Authority of Singapore (MPA) and our port operators work hard to remain competitive. To ensure this, we have adopted three main strategies. First, we must continually build on and improve our port infrastructure to meet the needs of shipping lines. As mentioned, we are doubling capacity by 2018. Besides reclaiming more port land at Pasir Panjang Terminal over the next few years, we are also looking at a number of options to raise capacity beyond the expansion of Pasir Panjang Terminal to meet the longer term growth needs of our ports. Second, we need to ensure that we maintain our edge in operational efficiency, connectivity, as well as cost. For instance, Singapore has launched an integrated platform called the TradeXchange that will provide a single common access to existing trade systems, such as TradeNet, Marinet, PortNet, from October next year. 4.15 pm Third, our terminal operators must continue to keep in close touch with their customers and remain responsive to their needs. For example, more shipping lines are now keen to co-invest in dedicated terminals to gain assurance of capacity. Our port operators must allow for this. PSA has already entered into joint ventures with major shipping companies like COSCO and the Mediterranean Shipping Company to operate dedicated terminals.”
“Mr Chairman, Sir, I would like to thank the many MPs for their questions and suggestions on our maritime and port sectors. I will now provide an update on our performance as well as what the Ministry is doing to remain competitive. First, let me begin with the Port, which is an essential pillar of our International Maritime Centre (IMC). Sir, Mr Andy Gan asked about PSA's performance. The departures of Maersk in 2000, and Evergreen in 2002 were, indeed, lessons well learnt. Since then, PSA has enhanced its competitive position by continually restructuring cost, raising productivity and, most importantly, responding proactively to its customers' needs. Their efforts have resulted in tangible achievements. Between 2001 and 2005, PSA's throughput increased by some 40% and PSA has just reported a healthy profit of over S$1.2 billion for the financial year 2005. The Singapore port operations, which contributed the majority of the group's profit, registered a strong increase of 21%. Sir, we have retained our position as the world's busiest port by vessel tonnage, with total tonnage rising 10% to 1.15 billion gross tonnes. Singapore is also the top bunkering port with bunker sales growing 8% to reach 25.5 million tonnes, double that of our nearest rival. And, notably, Singapore overtook Hong Kong to regain the position as the world's busiest container port, having lost the lead since 1998. The Singapore port itself handled 23.2 million TEUs of containers in 2005. Our throughput growth of almost 9% compares well with the 2% recorded by Hong Kong, 4% by the Port of Tanjong Pelapas and 6% by Port Klang. If world trade continues to boom and fuel container shipping growth of about 6% per year, we estimate that throughput will probably double in about 12 years' time.”
“As an example of tightening up on spending, the Ministry of Finance introduced in 2003 the requirement for statutory boards to refer all projects above $50 million to MOF for clearance, whereas previously statutory boards were free to proceed on their own if they did not need grants from the Government. Centrally, MOF has also initiated and will continue to initiate a consolidation and standardisation of processes for economies of scale. Let me just quote three examples. The first is the shared services centre for the conduct of HR and finance services. The second is the standard operating environment for a common platform for info-comm technology across all the Ministries. And, thirdly, it is the aggregation of demand for common goods and services which different Ministries might need to procure. So far, the net savings have been encouraging. Finally, there is of course the external audit function performed by the Auditor-General. The Auditor-General's audits encompass the review of key systems and controls. In the course of such reviews, the value-for-money issues present themselves. They would be pursued and reported. The Auditor-General's past reports have included many value-for-money issues such as the cost of car park maintenance, the cost of vacant flats for rental, utilisation of vacant Government properties, the high cost of contract variations for private estates upgrading, and so on. 5.15 pm While the audits by the AGO encompass both process and outcome, the Audit Report itself tends to focus only on the outcomes to demonstrate the effect of some of the control weaknesses. Control weaknesses and recommendations are then reported to Ministries after each audit project and brought before the Public Accounts Committee of this House by the Auditor-General.”
“Sir, let me first thank the Member for his comments and suggestions. I wish to inform him and the House that audits are only a part of the Government's overall efforts to achieve value for money in public spending. As I mentioned in my speech earlier on this afternoon under Head M, the Government's philosophy is to exercise prudence in spending and to deliver more for the dollar as a standing demand on all Government agencies. While some other jurisdictions, as those cited by the Member, may choose to focus on what we call ex-post audits to check excesses and inefficiencies, in Singapore, we aim to achieve value for money proactively at various levels as a matter of habit. Let me just elaborate. Firstly, at the agency level, there is management oversight on spending that is guided by Government-wide principles of effective budgeting, awareness of value in public spending and efficiency in operations. The PS21 (Public Service in the 21st Century) movement drives the whole public sector to productivity, quality service and organisational excellence. The block budget system which sets caps on Ministries' spending as a percentage of GDP, the Economy Drive initiative which requires Ministries to strive for cost savings, and market testing and best-sourcing of non-core functions are all important ways by which the Government seeks to enhance efficiency and reduce costs in the public sector. Secondly, all Ministries today have internal audit functions. In addition, the Accountant-General's Department assists the Ministry of Finance (MOF) in looking out for issues relating to efficiency in operations and excesses in spending.”
“Sir, let me just repeat what I have just said. For the exact size and returns of our investments, we have explained that the disclosure is not in our national interest.”
“Mr Chairman, Sir, I believe I have actually answered that. But let me just reiterate for the benefit of Mr Chia that we have explained on numerous occasions that the disclosure of such information is really not in our national interest.”
“But in substance, they are two related sides of the same investment transaction and viewing the net effect will give a better reflection of the return profile of the swap investment. Ultimately, what is important is that returns on our investments are monitored on a net basis, ie, after deducting expenses, and that the long-term performance of our investments remains consistently good over the years. As for the exact size and returns of our investments, we have explained on numerous occasions that the disclosure of such information is not in Singapore's national interest. Our financial reserves help to maintain confidence in the Singapore dollar and the Singapore economy. Any revelation would make it easier for currency speculators to target the Singapore dollar. Mr Chia can take comfort in the fact that there is full accountability for GIC and Temasek's overall performance and risk management. Islamic Finance and Banking”
“These address all the major categories of investment risks, including market risk, credit risk, regulatory risk, operational risk and political risk. The Ministry of Finance is involved in deciding the long-term return objectives, the risk tolerance levels and the asset mix for the Government's funds managed by GIC. As for Temasek, MOF endorses the overall strategic directions for its investments. However, the Government does not get involved in individual investments, leaving these to the respective boards and management. It is not for Government to approve each investment by GIC and Temasek, much less the Temasek companies, nor for us to second guess the risk assessments. Such micro management will ultimately be counter productive. What is important is that there is a good governance framework, regular performance evaluation, robust risk management and an effective system of checks and balances. These, I can assure Members, are in place. Sir, Mr Steve Chia has also asked about the increase in investment expenses. Allow me to explain very briefly. The expenses on investments should not be viewed in isolation but within the context of the size and nature of the investments. The increase in EOI in recent years reflects really three things: first, the growth in the asset size; secondly, the investments in new markets and products; and, thirdly, accounting effects arising from changes in investment strategies. 4.30 pm The bulk of the increase was due to a greater use of investment instruments like interest rate swaps. Currently, the Government accounts treat the paying and receiving legs of the interest rate swaps separately as expense and income.”
“Sir, the second aspect of seeking value for money in Government is to ensure adequate returns on our investments. Mr Inderjit Singh has asked about performance benchmarking and risk management for GIC and Temasek. Our investment objective for Government's reserves managed by GIC and Temasek is to achieve good long-term risk adjusted returns on a sustainable basis. GIC is the Government's fund manager, managing a globally diversified portfolio of assets comprising a whole range from equities, bonds, real estate, private equity and other assets. Temasek is the Government's investment holding company with stakes in a broad range of companies, principally in Singapore and the region. As fund owner and shareholder respectively, Government holds GIC and Temasek accountable for returns and overall performance. The Ministry of Finance regularly reviews the performance of GIC and Temasek with the boards and management. We are satisfied that GIC and Temasek have performed creditably against comparable benchmarks. Sir, what are these benchmarks? In the case of GIC, the performance of each asset class is benchmarked against relevant international measures like the Morgan Stanley Capital International, or commonly referred to as MSCI Equity Indices and the Lehman Brothers Aggregate Bond Index. Performance is also evaluated against other peers. On this basis, GIC has achieved good long-term returns. In the case of Temasek, since inception, Temasek has delivered 18% total shareholder return by market value and 16% total shareholder return based on shareholder's funds. Investments taken by GIC and Temasek are subject to rigorous risk management and internal control frameworks.”
“Moreover, playing host to a meeting focused on promoting economic development, alleviating poverty and fostering macro economic and financial stability will also reinforce Singapore's reputation as a responsible global citizen. Secondly, the economic benefits. In addition to the official annual meetings, there will be at least 300 other meetings and events held concurrently during that time. With the bulk of the expenses borne by the private sector and accruing to the local businesses, there are significant spillover effects on our economy. In terms of tangible economic output, practically all the $135 million that it would cost to organise the whole event would go to contracts for local businesses. In relative terms, I would like to assure Mr Chia that Singapore's expected expenditure is commensurate with that of previous hosts. The IMF/World Bank meetings in 2003, which was hosted by Dubai, incurred expenditures of over $360 million, though that included the construction of a brand new convention centre just to house the meetings. With 16,000 foreign visitors converging in Singapore in September, the meetings would also generate at least $50 million in tourism receipts. As it is, almost all the hotels and functions rooms in downtown hotels and conference venues have already been booked. We are mindful, Sir, of getting value for money and keeping costs down but without compromising on security or good organisation. Just to give a little example of the exercise of innovation. For example, to provide some 1,000 office premises for the delegates, the organising committee opted to build temporary offices within Suntec itself rather than to retrofit hotel rooms into office spaces. And this creative solution saved us over $4.5 million.”
“Sir, first, let me thank Members for their comments and suggestions. In addition to balancing the Budget and providing a fiscal framework that is best for business and beneficial for citizens, the Ministry of Finance is also keenly focused on seeking the best value for money in Government, both for expenditure as well as in investments. First, on value for money in Government spending. Members have heard the Prime Minister. Every dollar the Government spends has first to be earned. Members of this House can be assured that we are conscious of the need to live within our means. Our philosophy is always to exercise prudence in spending and to deliver more for the dollar. Sir, Mr Steve Chia is concerned about the budget allocated for organising the annual meetings of the Boards of Governors of the IMF and the World Bank group. I would like to state that we do not take this expenditure lightly. We decided to bid to host the meetings only after much deliberation and hard-headed assessment of the costs and benefits. Let me just spell out briefly the benefits that these meetings would bring to Singapore. Firstly, strategic benefits. We aim to develop Singapore as a global knowledge hub - a place where people, businesses and non-profit organisations converge and exchange ideas. Hosting premier international events is an integral part of this strategy, as it will help establish the Singapore brand globally, which he does not deny. Hosting meetings like the IOC and the World Trade Organisation's Ministerial Conference provides a unique opportunity to present ourselves to the rest of the world as gracious host, meticulous planners and efficient organisers.”
“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 Friday, 17th February 2006." - [Mr Mah Bow Tan]. Adjourned accordingly at Eleven minutes past Four o'clock pm to Friday, 17th February 2006. WRITTEN ANSWERS TO QUESTIONS SCHOLARS IN PUBLIC SECTOR 1. Assoc. Prof. Ong Soh Khim asked the Prime Minister and Minister for Finance (a) what percentage of officers in the various Government-related boards, such as the Economic Development Board, are scholars; (b) how many of these scholars are assigned to administrative positions that are not in line with their undergraduate training; and (c) will there be any steps taken to match the training of these scholars to the job scopes assigned to them, after the completion of their studies, so as to ensure that their talents are not wasted.”
“The amount of the PII must necessarily be driven by the coverage required to safeguard public interest, and not the objective of encouraging the formation of Accounting LLPs per se. Again, the aim of this Bill is to provide an additional structure by which accountants can choose to provide their professional services. It seeks neither to encourage or discourage accountants from setting up Accounting LLPs. That said, again, a review will, however, not be ruled out in future. Mr Ahmad Magad noted that under the LLP Act, all partners are required to ensure that proper accounts are kept for the LLP. While a LLP is not required to file accounts with ACRA, this oversight by all partners helps to safeguard creditors and clients' interest. It is the responsibility of each and every partner of the LLP to ensure that proper accounts are kept. The criminal liability is imposed on the LLP and every partner if proper accounts are not kept. Therefore, it is fair and appropriate that every partner should have access to the accounts so that they may perform the necessary due diligence. Finally, on his point about the definition of a "manager". Although the title "manager" is commonly used today, it has to be understood here within the specific context of the Act. There should not be any concern of ambiguity in this instance, as section 23(2) stipulates that "every LLP shall ensure that the particulars of every person who acts as manager of the LLP and his consent to act as such are lodged with the Registrar". So it would be clear to any LLP who the manager is for statutory purposes as the LLP will have to identify and lodge this information with the Registrar. Sir, I believe I have answered his questions. Question put, and agreed to.”
“Mr Speaker, Sir, I wish to thank Mr Ahmad Magad for his support of the Bill. I would like now to address his questions in turn. He asked whether the two-thirds requirement is actually necessary. Sir, the requirement for at least two-thirds of the partners in an Accounting LLPs to be public accountants is the same as that for accounting partnerships and accounting corporations. A large majority, as opposed to a simple majority, will provide additional assurance and help to maintain public and business confidence in the professionalism and credibility of Accounting LLPs, just as the rule does for accounting partnerships and corporations. I should also add that this requirement is similar to that for other professions like the architects and the professional engineers. The Architects Act, for example, requires that two-thirds of the shareholding of the company must be owned by allied professionals. In fact, the rule for the legal profession is even more stringent where 100% of the partners of a legal partnership or LLP must be lawyers. Sir, we would be cautious in making any changes to the requirement at the start so that Accounting LLPs do not inadvertently bring the integrity of the accounting profession into question. That said, the requirement could obviously, as in all regulations, be reviewed later in accordance with changing business conditions and public expectations. As regards professional indemnity insurance, or PII, let me note that Accounting LLPs, like accounting corporations, enjoy limited liability. Hence, the PII is required for Accounting LLPs to safeguard clients and creditors' interest given the limited liability to be enjoyed by such accounting entities. This is also the case for the legal LLPs.”
“Finally, since partners of Accounting LLPs will enjoy limited liability similar to shareholders in Accounting Corporations, Accounting LLPs will also be subject to the investor and creditor safeguards applicable to Accounting Corporations. In particular, all Accounting LLPs will be required to maintain a minimum capital base of $50,000 and secure professional indemnity insurance of at least $1 million. Conclusion Mr Speaker, Sir, allowing the formation of Accounting LLPs will facilitate the expansion and internationalisation of accounting services from Singapore. This will complement and further our strategy to develop Singapore into a services hub and a leading jurisdiction for business. Sir, I beg to move. Question proposed. 3.55 pm”
“LLPs for accountants have already been introduced in other countries like the UK, Jersey and US-Delaware where the response and feedback has been positive. Sir, I shall now highlight the main amendments proposed in the Bill. Main amendments to the Accountants Act First, the Accountants Act is amended to specify that Accounting LLPs shall abide by the requirements laid out in the LLP Act and all other legislation applicable to LLPs. For instance, an accounting LLP and all other LLPs will be required to have at least two partners and lodge an annual declaration of solvency with the Registrar of LLPs. Second, this Bill proposes that Accounting LLPs shall be subject to the same standards of governance, professional conduct and administrative care as are required of Accounting Firms (namely sole proprietorships and partnerships) and Accounting Corporations under the Accountants Act. For example, similar to other business structures providing public accountancy services, an Accounting LLP must be managed by one or more partners who are public accountants ordinarily resident in Singapore. Accounting LLPs must also be overseen by the Public Accountants Oversight Committee (the PAOC) of ACRA in the provision of public accountancy services. The PAOC shall have the authority to investigate any complaint made against an Accounting LLP and institute disciplinary proceedings, if necessary. In addition, Accounting LLPs shall be subject to the same complaint and disciplinary processes, penalties and restrictions on employing disqualified persons as Accounting Firms and Accounting Corporations.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time". Background This Bill amends the Accountants Act to enable accountants to form Limited Liability Partnerships (LLPs) for public accountancy services. The LLP business structure was introduced in April 2005 when the Limited Liability Partnerships Act was passed. This new business form is now available to most businesses and the take-up has been encouraging. From 11th April 2005 to 1st January 2006, a total of 947 LLPs were registered with the Accounting and Corporate Regulatory Authority (ACRA). To enable the accounting profession to have the option of adopting the LLP structure as a vehicle for providing their services in Singapore, the Accountants Act has to be amended. Currently, public accountants can choose to operate as sole proprietors, ordinary partnerships or accounting corporations. The new LLP option will enable accountants to form structures that provide them with limited liability similar to companies, while preserving flexibility similar to "partners" in a partnership. As accounting firms expand globally, the LLP option will be particularly relevant as a partner operating in one region would no longer have to be held accountable on an unlimited basis for liabilities arising from the actions of another partner operating in another region, simply because they belong to the same accounting partnership. On an individual basis, however, a public accountant will remain professionally accountable for each audit he performs. A public accountant in an accounting LLP will therefore be held to the same standards of professional conduct and competence as a public accountant in an ordinary accounting partnership, including unlimited personal liability, for his own wrongful acts or omissions.”
“PhD scholars will return home to man the research institutes as research scientists and will be working to help upgrade the industrial R&D capability of our manufacturing industries in order to enhance their competitiveness and to strengthen our economy. When the returned scholars have firmly established themselves within their research institutes, A*STAR may permit outstanding scholars with the passion and aptitude for teaching to take on joint appointments in the local universities to help in the supervision of subsequent batches of A*STAR scholars who are pursuing their PhD studies locally. Assoc. Prof. Ong Soh Khim: On these returning scholars who will come back to help to man the research institutes, I would like to know how many would be expected to be performing administrative and management type of jobs in these institutes as compared to performing research jobs in this institute?”
“Sir, I just wish to reiterate that the "poor performers" or the "losers" of today could well be the "winners" of tomorrow. The question that the Member has posed should actually be viewed in context. But suffice it to say that the "poor performers" would always be reviewed for their long-term business strategy and their long-term economic viability. And that is the role that Temasek would perform across its whole portfolio. As to whether there is any pre-dominance of foreign or local-owned companies, amongst his so-called definition of "poor performers", we do not track the companies as such. The role of Temasek is really to manage a widely-diversified portfolio so that we get the benefits of diversifying across markets and across business sectors. A*STAR (PhD scholars) 10. Assoc. Prof. Ong Soh Khim asked the Minister for Trade and Industry (a) what are the respective numbers of A*STAR PhD scholars who will be returning to Singapore in the next five years; (b) what are the job options available to these returning PhD scholars; and (c) will the returning PhD scholars be given a choice to pursue an academic career at the local universities. The Second Minister for Trade and Industry (Dr Vivian Balakrishnan) (for the Minister for Trade and Industry): Mr Speaker, as of December 2005, A*STAR has 122 scholars pursuing their PhDs locally and 66 pursuing them abroad. They are due for deployment to A*STAR research institutes within the next five to seven years as the length of PhD training varies between four and five years at the minimum.”
“With the upturn in the global semi-conductor industry, both have reported a return to profitability. Instead of focusing purely on past performance, it is more critical to assess the underlying strength and future potential of each investment. In this regard, Temasek actively and continually reviews its investments as a long-term shareholder. On whether the remuneration paid to the management of these 'money losing ventures' is appropriate in light of their performance, this is a matter for their respective boards to decide, not Temasek. Apart from ensuring that compensation plans are structured competitively and support sustained execution of business strategy, such committees would typically build in a performance element into these compensation plans. What is important is that the remuneration of management is disclosed to all shareholders, including Temasek, in the companies' annual reports in accordance with the Financial Reporting Standards.”
“Sir, Mr Steve Chia has raised concerns that Temasek's total shareholder's return (TSR) of 1% for the five-year period ending March 2005 is lower than the 2.7% increase in the Straits Times (ST) Index over the same period. Such a comparison does not, however, provide a complete picture of Temasek's performance. Let me explain why. TSR, by market value is, by definition, highly sensitive to the opening and closing market values of the investment over the selected time period. Therefore, it is instructive to review performance over a longer period to avoid market distortions. Temasek's 10-year TSR of 6% compares favourably with the 4.3% return on the ST Index. This is why Government evaluates Temasek's performance over multiple periods, using a variety of measures and benchmarks to get an accurate sense of whether it is delivering good returns. For instance, if we take TSR by shareholder's funds, rather than market value, which tracks the changes in the underlying book value of Temasek's portfolio, Temasek achieved a TSR, by shareholders' funds, of between 9% and 11% for the 3-, 5- and 10-year periods. Since its inception, we have received a healthy average annual cash dividend yield of more than 7% from Temasek. We are satisfied that Temasek is performing creditably and giving us good long-term returns as shareholder. As to which are the "poor performers" in the Temasek group, this must again be viewed in context. Like all companies, Temasek companies experience short term fluctuations in profit, in line with changing market conditions and economic or industry cycles. For instance, in the past few years, some companies like Chartered and STATS ChipPac were subject to the volatility of the technology sector.”
“Sir, when the PTC decides on the fare increase proposals, it will not just look at actual profits. In fact, they will be guided by many other things, one of which, as I have stated, is the Return-on-Total-Assets. In this regard, they could look at the transport operators elsewhere and compare those numbers to see whether these are reasonable. It will not be reasonable nor practical to impose an absolute number. TEMASEK HOLDINGS (Shareholders' return) 9. Mr Steve Chia Kiah Hong asked the Prime Minister and Minister for Finance (a) what are the reasons for Temasek Holdings' poor shareholders' return of 1% over a five-year period, as opposed to a 2.7% return for the Straits Times Index; (b) which are the "poor performers" in Temasek's group of companies; (c) how much did they contribute to negating the positive returns of Temasek; (d) what are the bonuses and remuneration paid to the senior management of these money-losing ventures; and (e) what is the rationale for paying them these remunerations despite their losing money for Temasek.”
“Mr Speaker, Sir, I would like to reiterate that the Government has not excluded the provision of green cars as an option. The different proposals are free to include that. As to whether the Government should stipulate a certain percentage, I think that would really impose an additional cost on car companies, because it is not only a question of providing the cars for the duration of the event. They need to have the assurance of being able to dispose of the cars after the event as well, and this would go into the computation of all the costs of the proposals. Assoc. Prof. Ong Soh Khim: Sir, one of the problems in including green cars is because of the supply of hydrogen. Hence, in the effort to promote using energy-efficient green cars which use hydrogen as a fuel, I would like to ask the Minister of State what are the relevant Ministries' efforts in finding commercially viable ways of supplying hydrogen safely on a larger scale and hydrogen-refilling projects in Singapore.”
“Sir, I do not have the breakdown by commercial and private vehicles, but suffice to say that the trend in terms of just tracking breakdowns by age is actually common across the different vehicle types and, therefore, the need to check remains the same. COURT PROSECUTION CASES 17. Mr Steve Chia Kiah Hong asked the Deputy Prime Minister and Minister for Law since 2000 (a) what has been the success rate of charges brought to the courts by public prosecutors for each year; (b) what is the percentage of defendants who chose to plead guilty instead of claiming trial; and (c) for those who claimed trial and were subsequently found not guilty by the courts, what remedial actions were they able to take to claim for the legal cost and damage to their reputation.”
“Sir, the periodic vehicle inspection regime was introduced in the early 1980s to ensure that vehicles on our roads meet roadworthiness standards, thus minimising vehicle breakdowns and road accidents. Vehicles which are not roadworthy can be a potential hazard to road users. Our inspection standards and frequency of inspection are generally comparable with practices adopted in Japan and Europe. For a private car, the first inspection is required when the car reaches three years. Subsequently, it is to be inspected once every two years until the tenth year, after which it must be inspected once a year. Despite our well-maintained roads and general improvement in the quality of vehicles and their maintenance, our inspection statistics showed that there are still cars which fail the first inspection. From 1st January 2004 to 31st December 2005, 7,202 (or more than 6%) of three-year-old cars failed their periodic inspection at the first attempt. These cars mostly fail the wheel alignment and brake tests. This means that they may need more steering effort or longer braking distances, which in turn increases the risk of accidents. Some vehicle parts, such as tyres and brake pads, are also subject to frequent wear and tear and may be worn out within three years. They could be crucial to vehicle roadworthiness if not checked and replaced. Hence, it is still necessary to inspect cars that are less than five years old. I would like to assure the Member that the Land Transport Authority regularly reviews the inspection standards, taking into account the latest developments and the best practices in vehicle inspection that are adopted internationally.”
“Sir, the Budget Terminal project was undertaken after extensive consultations with the different users. It is one where, as the Member has rightly put it, an evolving model. This is really a question of judgment. By the same token, if we had waited for models to succeed elsewhere, then Changi Airport would never have been built as well. So, in many cases, these are business decisions as well as strategic decisions that the Government would have to take. But I would like to assure the Member that this decision has been taken after extensive consultations. In case he is worried that should Tiger Airways decide to shift back to the main terminals, I would like to assure him that most of the equipment can actually be redirected for use at the main terminals as well. VEHICLE INSPECTION SCHEME (Review) 16. Mdm Ho Geok Choo asked the Minister for Transport (a) for the past two years, how many new motor vehicles which had been sent for their first annual vehicle inspection upon reaching the third year of their registration, had failed their inspection; and (b) will his Ministry review the vehicle inspection scheme and require only cars which are five years and older to be sent for annual inspection, instead of the current three years.”
“Sir, Mr Ong asked about the benefits of operating out of the Budget Terminal. There are both direct and indirect benefits. In terms of the direct benefits, as I mentioned earlier on, it is the doing away of the use of the aerobridges at the Budget Terminal which is the main cost savings. The other cost savings would come in the form of lower aircraft towing cost and also ground handling charges. The simple and no-frills design will enable users to save on overheads, like the office rentals and check-in counter charges. Our estimate is that users can actually save as much as 50% of the cost that they would otherwise incur at the main terminals. The other indirect benefit would, of course, be the shorter waiting times for aircraft push-back for take off as well as disembarkation. Here, passengers would also benefit from the lower passenger service charge of $7 as opposed to $15 at the main terminals. Mr Ong's second question about whether Tiger Airways' commitment is firm and binding on the Budget Terminal, I would say that both Tiger Airways and CAAS are committed to making the Terminal a success. There is no minimum tenure but, given the cost considerations, we trust that Tiger Airways would continue to operate out of the Budget Terminal for as long as it is commercially viable. At the same time, other airlines are also welcome to use the Budget Terminal.”
“5 metres free room and whether they would pose a danger to building structures and other road users. I would like to assure Mr Ong that the risk is actually minimal as only a very small percentage, in fact, 2% of overhead structures has less than a 4.5 metre height clearance, and most of these are actually height restriction gantry placed just before the MRT viaducts and road structures. Information on these will be gazetted and provided on the One.Motoring website. So owners of such vehicles would know where to look for information and which are the roads where the height restrictions would be. Whilst we agree that notifying the authorities may provide extra protection, on balance, we think that there is sufficient mitigation of risk of collision and we would like to move to a self-regulating regime. Let me now just move on to Mr Low's two comments. The first is whether the Government, in drafting the regulation of bus interchanges, has the intention to tender out the bus interchange. Sir, the drafting of the amendments serves to provide for as much flexibility as possible. So whilst now these interchanges are all being managed by the bus transport operators, we do not rule out that that could be a possibility. Secondly, he asked whether, essentially, the levying of licensing fees would add on to transport costs in future. The LTA intends to only levy a very nominal fee and therefore this should by no means be any imposition in terms of transport costs in general. Sir, I believe I have answered the 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]. [Mr Speaker in the Chair]”
“On the transaction aspects, a PIN, which is referred to as the authentication code in the Bill, will be required for each transaction. So it would not be just one. It would be one for each transaction, and this would also be issued under strict controls. They would be done at the request of the owner over the Internet, or in person, or by duly appointed authorised representative by the owner, and the PIN will be sent to the registered addresses. So it would not be misdirected. This is quite similar to how PINs are being handled for many other systems as well. The transaction PIN will only be required for online transfers, deregistration of vehicles, transfer of rebates and temporary COEs and division of rebates. So as Mr Ong has noted, the non-confidential information would still be based on input of vehicle numbers, for example, information on the expiry of road tax, and so on. Mr Ong has actually made a valid observation about how members of the public which include us, occasionally or quite often will forget their PIN and may write it somewhere. This is generally an issue that is common with all electronic services provided for the public. There will be public education by the LTA. LTA will also provide assistance for those not familiar with using the Internet. They will have over-the-counter services at the different LTA offices as well as now we have, what we call, the Citizen Connect and e-Citizen helpers located at over 20 community centres and clubs. So these are places where members of the public can also get assistance. Sir, let me now just move on to the other concern that Mr Ong has raised about the changes which will allow vehicles of height between 4 metres and 4.”
“Mr Speaker, Sir, first, I thank Mr Ong Kian Min for his support of the Bill. Mr Ong has rightly pointed out the inadequacies of the present system and the new VRLS essentially has been designed and seeks to address most, if not all, of the current weaknesses. Essentially, with the cessation of the issuance of the physical log cards, forgery and fraud would hopefully be a thing of the past. As he has also elaborated on, there is now no need for vehicle owners to leave their NRICs with intermediaries which, by itself, can lead to a whole lot of abuse if they land in the wrong hands. Sir, Mr Ong has asked whether there are any inherent vulnerabilities in the new VRLS such that it will detract the system from being safe and dependent. I would like to assure Mr Ong that the new VRLS is designed to minimise risk of electronic fraud through two aspects, firstly, access and, secondly, transaction control. Let me just elaborate on these two aspects. For the access control, as I have elaborated earlier on, basically for Singapore citizens and PRs, they would use the NRIC numbers or SingPasses and there will be help and public education on how to facilitate this for those who are not familiar with the process. For foreigners, companies, businesses and entities that are registered with ACRA, or Accounting and Corporate Regulatory Authority, they will be issued by the LTA with a set of user IDs and passwords. So that would be secure as well. Finally, for the motor dealers, and that is really the key part, they will be appointed as the Electronic Service Agents and they will be required to subscribe to NeTrust which, itself, has a two-factor authentication requirement. So on the access front, there will be sufficient security controls.”
“Responsibility of person who furnished false or misleading particulars in connection with the change of registration of vehicle Currently, for the offences of making false statements and providing false particulars in relation to documents kept or required under the RTA, the person held responsible is the one who made the statement or declaration or had provided the information. There is the possibility that a person, such as a director of a company, can cause another person, such as an employee, to make false statements or declarations or provide false particulars. Under the current provisions, the director cannot be charged, as it was not he who made the false declaration. Clause 20 of the Bill addresses such situations and ensures that these perpetrators can also be prosecuted. Cancellation of registration of a vehicle which has ceased to be kept or used on the road Clause 7 of the Bill enables the Registrar to cancel the registration of a vehicle if he is satisfied that the vehicle has ceased to be kept on the road or will be destroyed or removed from Singapore within a prescribed period. This gives LTA a greater degree of flexibility in handling vehicle de-registrations which presently are limited to scrapping or exporting of vehicles. This gives scope for LTA to implement additional de-registration schemes which would better meet the needs of Singaporeans, for example, the keeping of de-registered vehicles as training aids in institutions of learning or for display purposes in a private compound. In summary, these proposed amendments to the RTA will enable LTA to carry out its duties more efficiently and effectively. Sir, I beg to move. Question proposed. 2.56 pm”
“5 metres in height Currently, under the RTA, the driver or person in charge of vehicles exceeding 4 metres in height is required to obtain a permit from the Traffic Police for the vehicle to be driven on the roads. Clause 13 amends the RTA to remove the requirement for permits so as to move towards a more self-regulating regime. Presently, as part of the permit application process, owners and drivers of heavy vehicles with overall height exceeding 4.3 metres are also required to engage a police or auxiliary police escort when driving on public roads. With the proposed changes, the RTA will only require those with overall height exceeding 4.5 metres to do so. Therefore, the above amendments will save time and effort for the drivers without compromising the safety of road users or users of overhead structures. An offence to obstruct the removal of stationary vehicle from an expressway It is necessary to remove stalled vehicles from expressway shoulders expeditiously for safety reasons and to maintain smooth traffic flow. There have been cases where motorists have refused to allow their vehicles to be towed away by LTA, thereby compromising their own safety and the safety of other motorists. To deter this, clause 18 of the Bill makes it an offence for any person to refuse to permit or obstruct LTA or its agent from exercising its powers to tow away the vehicle. The offence will be made compoundable.”
“In Phase Two, more transactional e-services would be made available to vehicle owners themselves, for example, applying for the transfer of their vehicles directly to another individual. A licensing regime to regulate the operation of bus interchanges Clause 17 of the Bill introduces a new licensing regime to regulate the operation of bus interchanges. Under the current system, the management and operation of bus interchanges owned by Government are regulated through Licence Agreements signed with the bus and commercial facilities operators. Such a requirement cannot be extended to those bus interchanges that are not owned by Government. We therefore need to put in place a more effective regulatory framework so that operators of all bus interchanges can play a more active role in strengthening the security of the interchanges. This is even more pertinent given the current heightened security environment. Under the proposed framework, the LTA may grant a bus interchange operator's licence on the application of any person, subject to conditions relating to the operation, safety and security of the bus interchange. It will be an offence to operate any bus interchange without a licence granted by the LTA. In the event the operators fail to comply with any licence conditions or directions issued by LTA, the LTA can also rectify defaults of the bus interchange operator, suspend or cancel a licence or impose a financial penalty in specified circumstances. Other amendments to improve operational and regulatory effectiveness Sir, the other amendments proposed in the Bill are to enable the LTA to improve its operational and regulatory effectiveness. I will now highlight some of these amendments. Requirements for vehicles exceeding 4.”