Lim Swee Say
Singapore
“The number of reports received via the Snap@MOM app, number of valid reports and number of companies issued with enforcement actions between 2015 and 2017 are shown in the table below: All valid reports have resulted in warnings or enforcement actions.”
“In the case of students from ITE, polytechnics or autonomous universities, employers do not need to contribute CPF if the student is employed by them for training that is approved by their institutions.”
“Together with our tripartite partners at the national and sector levels, we have to do our best to transform across all sectors, for our economy to transform and grow, pervasively, as One Singapore Unlimited.”
“Between April and December 2017, the Tripartite Alliance for Dispute Management (TADM) and the Employment Claims Tribunal (ECT) concluded 3,750 employee salary claims where the employer was ordered to make payment to the worker. Salaries were fully recovered in about 92% of these orders. The remaining claims involved 139 employers.”
“The number of employed residents aged 62 and over, and 67 and over has increased over the last five years (see Table 1 below). Of all employed residents aged 67 and over in 2017, 64% were males; 80% held secondary and below qualifications, 9% had post-secondary qualifications, while 11% were tertiary-educated; 52% of this group of older w…”
“The proportion of full-time resident employees earning below $2,000 who received bonuses, including the Annual Wage Supplement, has remained stable at about 50% over the last decade. Employers and unions share the flexibility in structuring staff remuneration together under our Flexible and Performance Based wage systems.”
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“I think it makes a lot of sense, from the standpoint of matching supply and demand for us to take the wafer fab industry that requires high grade water as the immediate priority for the consumption of Newater. Indeed this is what we are doing. We aim to achieve a 15% consumption of Newater by the year 2010, about 55 mgd. This will be supplied to wafer fab plants. What then is our immediate plan? Mr Heng Chiang Meng asked how we intend to pipe it to the homes. Sir, as I have mentioned, there is no need to pipe Newater to the homes because, in the foreseeable future, we are talking about supplying this water to the wafer fab plants. It makes a lot of sense to supply Newater to wafer fab plants because these 25 wafer fab plants are not scattered all over Singapore. They are located centrally at three wafer fab parks, at Woodlands, Tampines and Pasir Ris, and they are high consumption customers. As a result, we will be able to supply this Newater to these 25 wafer fab plants in the three wafer fab parks in a highly cost effective manner. In fact, our assessment is that we will be able to supply this Newater to them even cheaper than what they are paying today for potable water. In a way, this is a win-win situation, because we are now able to make full use of the Newater and, at the same time, the industry will be able to achieve some kind of cost savings through the use of Newater. Mr Heng Chiang Meng asked when are we going to build these new plants. Sir, we are now in the process of building two Newater plants, each with a 5 mgd capacity. They will be located at Bedok and Kranji Sewage Treatment Works. The tender for consultants has been called this month. The tender for the supplying of pipeline will be called later this year.”
“Today, we have a demonstration plant producing 10 thousand cubic metres of Newater every day. This is equivalent to 2.2 million gallons of water per day. This plant was commissioned in May 2000. Prof. Low Seow Chay wondered why do we supply this water to golf courses and throw it away into the sea. The purpose of this demonstration plant is for us to convince ourselves that the process does work, and that the quality of the water does meet with our expectations. And I am happy to say that we have conducted tests covering the physical, chemical and micro biological analysis. So far, the test results show that the standard is well within drinking water standard set by the WHO, the USEPA and the EU. In short, the water indeed is safe for human consumption. Why then are we not drinking it today? Sir, if we were to look at the overall water supply situation, I wish to make the point that in the foreseeable future, there is no need for us to talk about convincing members of the public to consume the Newater. Why? Because, at this moment, there is a growing industry known as the wafer fabrication industry. Over the next 10 years or so, our aim is to have 25 wafer fabrication plants in Singapore. And together, they require about 55 million gallons per day (mgd) of ultra clean water. This 55 mgd is equivalent to 15% of our daily consumption of water. Therefore, our point here is this: Even though the Newater is ultra clean water, there is no need, at this moment, to think about human consumption, because there is a ready market which is willing to pay good money for this Newater.”
“In fact, this membrane technology has been used in the USA, Australia, UK and France to reclaim water for years. So we are not the first in the world. But what is new is that today, this membrane is thinner and more durable. In the past, the membrane needed to be replaced every three years. Now, we need to do so only once every five years. Because the membrane is thinner, we are able to push through water through the membrane, the process of reverse osmosis, at a much reduced water pressure. This reduction in water pressure is about 50%, because of the thinness of the membrane. As a result, the energy requirement has come down. The cost of Newater is therefore much cheaper now. And because of this, it has now become a viable source of clean water supply. Sir, the cost of Newater compared to desalination is very much lower. Why, you may ask? After all, they use the same membrane for desalination and Newater. Why then is it cheaper to produce Newater? This is because used water has a lower total dissolved solid compared to sea water. Sea water has much higher salt content. So to push the sea water through the membrane, you will need to apply much higher pressure, and pressure comes from energy. That is why desalinated water is much more expensive, compared to Newater. But on the whole, we can expect the cost of desalination and Newater to continue to decline, as membrane technology continues to improve. Sir, let me move on to the third aspect of the question raised by the Members, which is, where are we today. Prof. Low Seow Chay and Mr Ang Mong Seng asked about the quality, whether it is safe to drink and whether we have conducted tests. Mr Ang Mong Seng suggested why don't we bottle this Newater and sell it as mineral water.”
“Sir, I thank Members for speaking on this subject of Newater. I would like to organise my response in a certain sequence. Firstly, I would like to address what is Newater, because Prof. Low Seow Chay asked whether is this a technological breakthrough, is it something new. Let me put it this way. Right now, we consume about 300 million gallons of water every day. And we treat every single drop of this water, because what goes in must come out. We consume about 300 million gallons every day and output is also 300 million gallons every day, and we treat every single drop of this used water. Today, only 5% of this used water is recycled as industrial water. The other 95% is discharged into the sea. But with the advances in the membrane technology, we are saying that instead of discharging it into the sea, why not reclaim the water, because we can now do so very cost effectively. Sir, how do we do it? Basically, through three stages. The first step is to take the water through what we call a process of micro filtration. In so doing, we remove the very small solids down to the size of 0.2 micron. This will filter out, for example, bacteria. After the first stage of micro filtration, we move on to the second stage known as reverse osmosis. This is to remove the remaining viruses. These are the smallest living organisms, down to the size of 1,000th of a micron. After that, we put the water through ultraviolet, as a safeguard, to sterilise the water. And the output is high grade water which we call Newater. The second aspect is the cost of this Newater resulting from technology breakthrough. Prof. Low Seow Chay, Mr Heng Chiang Meng and Mr Ang Mong Seng asked about the cost. Let me clarify. The membrane technology is not new. It has been around for a long, long time.”
“Theoretically, if the price is right, we should produce as much water as we need. What is the long-term objective, in terms of product quantity and the applications of Newater? The low pressure reverse osmosis for brackish water depends on the type of membranes chosen and the system design. We are able to obtain even higher quality of water than the PUB water that we consume now. There should be no doubt at all that one day, Newater will be served as potable water. I would like to ask, in case of a water shortage emergency, could Newater be consumed as normal drinking water? Are there plans to educate the public to accept Newater as an alternative to potable water? Newater is produced through a high pressure process, and energy is needed. The cost of producing Newater will be higher than that of the conventional filtration of raw clean water. If we are able to secure sufficient raw water supplies, it does not sound very sensible, from the economic point of view, to put our Newater plant running at full load. If we could purchase cheaper water elsewhere in sufficient quantities, accept the lower cost in future, how do we deal with the excess Newater plant capacity that we are going to build? The low pressure reverse osmosis for Newater operates at pressure of one-tenth of that of the sea water reverse osmosis. In other words, the desalination of sea water will be many times higher in cost as compared with the reverse osmosis for the Newater plant. If Newater is a viable alternative water source, what is the role of the more costly sea water desalination? Are we planning to shelve the desalination plan which has been under review for quite a while?”
“I thank Dr Teo Ho Pin for his very good suggestion. My Ministry will see what we can do by working closely with the Ministry of Education on this. Assoc. Prof. Low Seow Chay: Sir, the next topic I would like to talk about is Newater. Years ago, I spoke about the possibility of recycling some of our domestic used water for reuse and suggested that the domestic sewers be separated from the industrial sewers for the purpose of water recycling without industrial contamination. Lately, Members of Parliament were invited by the Ministry of the Environment to visit the Newater plant which recycles water for reuse. We all note with surprise that a modernised water factory, producing huge volumes of crystal clear water has already materialised. We were told that large quantities of water were piped into the golf courses for watering of the grass and whatever excess from the plant is thrown into the sea. What a waste! I would like to ask what is the cost and quality of Newater. Is it safe for drinking? What infrastructure do we need to deliver Newater to the end user? Sir, the idea of using micro-filtration and low pressure reverse osmosis for brackish water was heard of many years ago. Is the technology used for the Newater plant considered to be a technological breakthrough? If so, what is it? As we know that the membrane technology evolves very rapidly in the past few years, if we invest heavily in this way in producing water, how could we be sure that our water plant could be evolutionary? What is the strategy adopted to keep in pace with water technology development which is evolving so rapidly? Singapore is importing water from our neighbours. This Newater initiative offers us a means to reduce our water dependency on outside supply.”
“Sir, IDA is exactly the kind of body. IDA is both a regulator and a developer of the telecommunications market. As far as telecommunication is concerned, the competition code is already in place. Assoc. Prof. Toh See Kiat: Sir, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $468,838,020 for Head I ordered to stand part of the Main Estimates. The sum of $1,709,558,700 for Head I ordered to stand part of the Development Estimates. Head E -”
“Secondly, we do require open access to all infrastructures. So in the event that you hear of any SMEs that are being penalised by the big telcos, you are most welcome to bring up to the attention of IDA. As a regulator, they would look into the specific incidence under the code of practices for open competition. On digital divide, Prof. Toh asked whether there is any funding support for the VWOs to implement programmes targeted at the disabled Singaporeans. Sir, I am happy to say that there is indeed a programme where IDA works with NCSS to provide funding support to refurbish used PCs and develop software and applications targeted at the disabled people. I assure him that more funding support will be forthcoming as and when the need arises. At this moment, there is funding support available and the funding has not been fully used up yet. Assoc. Prof. Toh See Kiat: Sir, I would like to ask the Minister of State whether we should be looking at a legal regime for competition and whether, even if not, there should be some kind of watchdog body other than IDA that will specifically be looking at telecommunications competition.”
“Sir, Prof. Toh See Kiat brought up a few suggestions. The first is on promoting e-commerce. He asked whether funds allocated to trade associations can be used by them to promote Singapore companies overseas. I have no idea what specific aspects he is suggesting. Since trade promotion comes under TDB, he may want to take this up further with TDB and MTI. Second, on trusted hub, he asked whether the National Trust Council would be given sufficient resources to perform its task. The National Trust Council has just been formed. They are now in the process of working out its workplan. In the event that the Council does require some funding support, my Ministry is prepared to consider. Third, he asked if there is any incentive scheme for companies to go into film animation and so on. Sir, under the IBBMM (Interactive Broadband Multimedia programme), there is a sub-programme on New Media. These companies can apply to the MCIT for funding support under the New Media programme. Prof. Toh asked if the losses by venture capitalists can be offset. Sir, policy on venture capital fund comes under the purview of MTI and EDB. He may wish to bring this up to MTI and EDB. Sir, he asked whether IT talent earning less than $3,500 would be allowed to come into Singapore. I am not aware of such a policy on the $3,500 cut-off. Again if there is any specific incidence, he is most welcome to bring to my attention, and I will look into it further. The last point he asked is whether we have in place some competition rules to make sure that the big players do not penalise the new start-ups, the SMEs and so on. Under the code of practices for open competition, IDA does regulate big telecom companies from two angles. Firstly, the network must be able to inter-operate.”
“To facilitate the mass deployment of applications and services across Asia, we need to put in place some standardisation. For example, in the case of secured transaction, we need to implement PKI (Public Key Infrastructure). The third area is e-Capital. For example, the flow of venture capital fund within the Asia-Pacific, so that funding support for entrepreneurs will become more effective across Asia. The fourth area is e-Talent. Basically, to work together on the development of IT manpower, and facilitate freer flow of IT manpower across cities within Asia. And last, but not least, is the concept of e-Ideas. Basically, it is for the Asian community to come together to work together, to innovate with emerging technologies and come out with new ideas to exploit the new potential of IT. We believe that by pursuing these five key thrusts, we will be able to create a more conducive environment within Asia to facilitate the growth of e-commerce and e-business. Over time, we hope this will serve as a backbone for IT development in Asia, and that more and more cities and countries will come on board. We would then be able to realise our vision of a Digital Asia. Mr Inderjit Singh asked what are the concrete plans to realise this vision. Sir, this being a regional initiative, what we are doing now is to talk to like-minded cities to pursue this vision. Realistically speaking, we hope to start with maybe three to five cities in Asia. With these three to five cities, we can provide the first-cut backbone for the Asian IT Belt. As I said, over time, maybe more cities will come on board. Working together, we can realise the vision of a Digital Asia, hopefully sooner rather than later.”
“Sir, Mr Inderjit Singh asked about the progress of the Asian IT Belt. Sir, the Internet revolution started around 1994 in USA. In the first five years of the Internet revolution, the revolution was very much US-centric. As a result, USA was able to pull far ahead of the other regions of the world in this IT revolution. The European community, under the coordination of the European Commission, decided to come out with a concerted response. Last year, they launched the e-Europe Initiative. Basically, e-Europe is a concerted response from the European community to make Europe an IT powerhouse and become active players in this global revolution. In the case of Asia-Pacific, obviously we are not in any position to do so because the Asian economies are in different stages of development. Also, we do not have an Asian Commission to do this kind of coordination. But having said so, it would still be highly desirable for some Asian countries and economies to find ways to work together so that we can pool our resources and expertise, so that Asia as a whole can come out with the necessary response and not be left behind. It is with this intention that our Prime Minister suggested the idea of the Asian IT Belt. The whole intention is for some leading cities in Asia to link up with each other and provide the backbone of the IT belt in the Asia-Pacific. Over time, the other cities, as and when they are ready, can join this IT Belt. We envisage that this Asian IT Belt would comprise five main thrusts. The first thrust is e-Infrastructure. This would include broadband connectivity as well as the standardisation of e-business rules and regulations. The second thrust is e-Markets.”
“It will take into account international developments in this area and will come out with a recommendation regarding self-regulation through the privacy code of the industry, as well as to examine the need for the introduction of a privacy legislation.”
“Chin mentioned, and also pointed out by Dr Tan Boon Wan, it is very important that we create trust and confidence in the consumer in e-commerce. Privacy is a real concern. It was once said that to convey personal information over the Internet, whether it is your credit card number and so on, is like undressing in front of the window with the lights on. You never know who is looking at you from the other side. Sir, having said that, what do we do? There are basically three models in regulating privacy. The US believed in self-regulation. Europe believed in government legislation. And I think, over time, both have realised that the two models will not work. In the case of US, the pace of self-regulation is too slow. In the case of Europe, to go for government legislation is too inflexible. In fact, the world is converging towards the concept known as co-regulation, meaning that it is a combination of self-regulation and government legislation. Sir, in this regard, I am pleased to share with this House that the Ministry of Communications and Information Technology has decided to pursue this concept of co-regulation. On the part of the business community, just a few days ago, my Minister announced the formation of an industry-led National Trust Council. They are in the process of formulating a privacy code for the private sector to adopt. And I will convey to them Prof. Chin's suggestions, eg, for all companies to state clearly their privacy policy. On the part of Government, we have taken steps to study further into this privacy issue. My Minister has initiated a task force within the Ministry. This is an inter-agency task force chaired by our Permanent Secretary. The task force will study the impact of the Internet and e-commerce on data protection and privacy.”
“Sir, Dr Tan Boon Wan is concerned that with the recent burst of the dot-com bubble, our national impetus in IT may lose its steam. Not too long ago, people left their jobs to rush into dot-com. Today, I was told that "dot-com" is known as dot-gone, B-to-B means back to banking, and B-to-C means back to consulting. However, I want to assure Dr Tan Boon Wan that as far as the Government is concerned, we look at the evolution of dot-com development as a structural change. It is not something that will come and go away, because we believe that the change will continue for a long, long time to come. Over the last 20 years, we have had this national impetus to keep Singapore up to date with IT, and we intend to continue to do so. In fact, under Infocomm 21, we are pursuing the vision of an e-economy, e-society as well as e-Government. We do intend to reinvent the economy, the society and the Government and public sector, so that the 3P sectors will be able to progress together and we can all live a better life in the infocomm age of the future. Dr Tan Boon Wan asked how do we make sure that consumers would trust and use e-commerce. This is also the same point raised by Prof. Chin Tet Yung. As far as e-commerce is concerned, again, we take it very seriously. In 1998, we announced the e-commerce master plan. Subsequent to that, we formed a multi-agency committee on e-commerce action plan. The whole idea is to turn the master plan into real action. I am happy to say that over the last 1-2 years, all the Government agencies were able to work together in a concerted manner. We also work very closely with the industry as well as the people sector under a 3P partnership programme to pursue our vision in e-commerce. As Prof.”
“Where the MC has delegated the performance of a duty to the MA, the Act provides that the MA shall be liable for any contravention of the provisions of the Act in respect of the delegated duty. So the key words are "delegated duty". The MC will have to decide for itself the duties to be delegated to the MA, and the contractual terms for the appointment. If the MA did not perform, the MC may remove the MA from office. And like any other commercial arrangements, the MC may also seek the appropriate legal remedies if it can establish a breach of contract or negligence on the part of the managing agent. Sir, where there are provisions in the Land Titles (Strata) Act, which proved to be inadequate, the Building and Construction Authority (BCA) would initiate and recommend amendments to the Act at the appropriate time.”
“I would be happy to look into that. WATER CONTAMINATION (Preventive measures) 2. Mr Ang Mong Seng asked the Minister for National Development (a) what measures are being taken to prevent a recurrence of the water contamination problem as had occurred in Bukit Timah Plaza and Chuan Park Condominium; and (b) whether the roles and responsibilities of management agents and management corporations in the Land Titles (Strata) Act are clearly defined. The Senior Parliamentary Secretary to the Minister for National Development (Assoc. Prof. Koo Tsai Kee) (for the Minister for National Development): Sir, there are two parts to this question. On the first part, at the Parliamentary session on 9th October 2000, Mr Tang Guan Seng, Senior Parliamentary Secretary (Trade and Industry), has outlined the measures taken by the Public Utilities Board (PUB), together with the Ministry of the Environment (ENV), to prevent a recurrence of the water contamination problem. If the Member has more questions, he might wish to direct a question to MTI. Or else, he might want to look up the Hansard. On part (b), on the roles and responsibilities of the management corporations (MCs), these are clearly spelt out in the Land Titles (Strata) Act. Amongst other things, the management corporation has the duty to properly manage, maintain and keep the common property in a state of good and serviceable repair, keep proper records and books of account and insure the property. Sir, under the Act, the MC may appoint a managing agent (MA) and, by a written instrument, delegates its powers, duties and functions to the MA.”
“No, Sir. This is not what I meant. What I meant is that we are not aware that there are many letters, as mentioned by the Member, being delayed in the mail for three to four days. That is why I am asking for the feedback. If it is indeed true that most of the letters sent to you ---”
“Sir, for the ordinary letters mailed in Singapore, IDA does not just control the rates. It also imposes performance indicators on SingPost. For example, a certain percentage of the mail would have to be delivered within the same day and a certain percentage will have to be delivered by the next day. In the example cited by the Member regarding the delay of four to five days, if I could have the information, I would be happy to look into it. To the best of our knowledge, almost 100% of mails are either delivered on the same day or by the next day. But, as I said, I would be happy to have the information so that we can look into this particular incident and see how we can get SingPost to improve on its performance.”
“Mr Speaker, Sir, as I mentioned earlier, in terms of international mail, more than 60% of the costs are really beyond the control of SingPost. So the increase in international mail rates is really a cost increase that we have no choice but to bear. As far as domestic mail is concerned, the priority is to encourage automation. For example, if companies or individuals, in particular companies, are able to take advantage of the incentive schemes offered by SingPost, such as the domestic mail bulk scheme, ie, they lodge their letters in a machineable bar-coded and pre-sorted manner, they can enjoy a substantial discount from SingPost. So my suggestion is for companies, big and small, to take full advantage of the efficiency that can be achieved through automation. In this way, we can have a win-win situation between SingPost and the users.”
“Under this scheme, equipment which meets certain efficiency and environment labelling standards would be allowed to have a Singapore Green Label, and I believe SEC will be launching this label very soon; Incorporating energy efficiency as an objective of our land transport policy. Sir, you have heard Dr John Chen announce the hybrid car scheme; and Monitoring and reviewing the pricing of electricity, and creating awareness amongst consumers on using energy efficiently by the Public Utilities Board (PUB). Sir, with the current rapid increase in oil prices, the IACEE is coordinating the efforts of all the various agencies, including PUB, ENV and the Land Transport Authority (LTA), to roll out on an urgent basis a series of programmes to inform and educate the consumers on ways to conserve energy and use energy more efficiently.”
“In fact, the Task Force is now looking into what kind of new facilities and capabilities we ought to invest in Singapore so that in future, should there be any infectious disease outbreak, we will be able to continue to respond very rapidly. ENERGY CONSERVATION (New measures) 4. Mr Kenneth Chen Koon Lap asked the Minister for National Development, in view of the rapid increase in oil prices, whether his Ministry is considering any new measures for energy conservation. The Senior Parliamentary Secretary to the Minister for National Development (for the Minister for National Development) (Assoc. Prof. Koo Tsai Kee): Mr Speaker, Sir, in 1998, an Inter-Agency Committee on Energy Efficiency (IACEE) was chaired by the Ministry of National Development. It was formed to address the concerns over the increasing consumption of energy in Singapore and to look into improving the efficient usage of energy. When this Committee was formed, oil prices were low at about US$15 per barrel. This shows that the Committee was formed at a time when the prices were low and there was no knee jerk reaction to the present energy prices. But now that it has gone up to over US$30 per barrel, the need to act on energy conservation has become all the more urgent and important. The IACEE has completed its study and released its recommendations to the media in May this year. The recommendations are wide-ranging, long term and attainable. Various agencies are working towards achieving these recommendations. In summary, Sir, these include: Reviewing and developing building regulations on energy efficiency by the Building and Construction Authority (BCA); Expanding the Green Labelling Scheme under the Singapore Environment Council which works in cooperation with the Ministry of the Environment (ENV).”
“Mr Speaker, Sir, in the case of unnatural death, it is a standard practice that we will do a post-mortem. In the process, there are actually two steps involved. The first step is to detect the presence of the relevant virus. And the second step is to identify exactly what strain of virus it is. Take, for example, in the case of the hand, foot and mouth disease, the most common virus is the family under the enterovirus, and there are over 60 different strains. Within a few days, we are able to identify the presence of enterovirus. But the next step is to identify if it is a coxsackie A16 or EV71, or something else. For that to happen, the medical laboratory will have to isolate the sample. They have to culture the virus to see whether there are any reactions. So that typically will take a few weeks. Just to give you an example. We actually did the isolation in parallel in a Singapore facility as well as to send a sample to the CDC (Communicable Disease Centre) in Atlanta. In fact, both centres identified the presence of EV71 almost at the same time. It shows that there was no delay on our part, because even with a very reputable facility in Atlanta, it takes about the same time. This is because we have to go through that period of time for the virus to be cultured, to be grown, and to be identified. Sir, I want to assure the public that we do have an up-to-date facility and that there was no delay in identifying the virus. Unfortunately, the process does take time. But having said that, it does not mean that we will not further invest in upgrading our capability.”
“Sir, the spread of the disease is basically through direct contact among the children. For example, if a child were to pick up a piece of toy and puts it into his or her mouth and before the saliva dries up another child picks it up and puts into his or her mouth, it can be transmitted. Therefore, in the case of sand bays and so on, it is probably not the primary mode of transmission. What we have done, as I have mentioned earlier, is to enforce the hygiene practices in the schools. For example, in our hygiene guidelines, there is a clear regulation that all toys must be washed at the end of the day every day and any items where the children can put into their mouth are not supposed to be placed in a common area for the children to share. All these guidelines will now be further enforced. As to the sudden increase, prior to 1st October, the hand, foot and mouth disease was not a notifiable disease. As a result, we have to rely on the reporting from the child care centres. The information we were getting was not complete and not up to date. Since 1st October this year, all hand, foot and mouth disease cases will have to be reported because it is now a notifiable infectious disease. Henceforth, we should be able to monitor very closely. Should there be any increase, we will be able to take responsive action before it gets out of control.”
“So we intend to continue to enforce such hygiene practices so that, hopefully, we will not see another outbreak and we do not have to close the schools in the future.”
“Mr Speaker, Sir, there are two types of pre-school centres in Singapore. They are the kindergartens and the child care centres. The child care centres are licensed by the Ministry of Community Development and Sports (MCDS) and the kindergartens by the Ministry of Education. Both types of pre-school centres are subjected to hygiene guidelines issued by the Ministry of the Environment, Ministry of Education and MCDS. In fact, the last time we updated our guidelines was in March this year. As a result of the recent outbreak, the Task Force has decided to further update the guidelines. A new set of guidelines will be issued soon. On Dr Lily Neo's second question regarding the screening of children, it is true that many teachers and parents were not aware of the proper actions to be taken during the recent outbreak. What has happened was that we actually had cases of children who had contracted the hand, foot and mouth disease but continued to attend school. For the child care centres, sick bay is a standard facility. We do not have much problem because the infected children are isolated. But in the case of kindergartens, there is no practice of having a sick bay. As a result, some of the children were allowed to continue to interact with the other children. As a result of the recent outbreak, we have now issued clear guidelines to all kindergartens that for those without sick bay facility, they would still have to isolate the children, using the principal's office or any other facility. At the same time, they have to notify the parents immediately. This practice has been put in place. Over the last one month, we are seeing a very effective decline in the number of cases.”
“The sureties are usually the parents, immediate relatives and close family friends. Thus, when a scholar is thinking of breaking his bond, he not only has to consider his moral obligation to serve, but also the trust and expectations his parents and sureties have of him. Our tax system is set up for a larger purpose. It should not be used per se to deter bond breakers. PROCREATION POLICIES 8. Mr Noris Ong Chin Guan asked the Prime Minister whether his Government intends (i) to review the success of the policies adopted to improve procreation in Singapore; and (ii) to consider, in line with most private sector practices, a five-day working week to allow civil servants to spend more time with their families.”
“Mr Noris Ong Chin Guan asked the Deputy Prime Minister (a) whether there is a rising trend, over the last five years, of Government scholars who broke their scholarship bonds; (b) whether the scholar's parents and guardians should be required to sign a performance bond for a specific sum, on the basis that they can exert their moral influence on the scholars; and (c) whether fiscal deterrent measures can be imposed by requiring the bond-breakers' prospective employers to recompense the bond on a non-tax deductible basis and requiring the bond-breakers to be taxed in full for any reimbursement made by their employers towards the bond payment. BG Lee Hsien Loong: As the PSC is the largest scholarship provider, I asked them for their statistics. The figures show that over the last five years, the number of PSC scholars who have broken bond each year, as a proportion of the total number of scholars currently in service under bond, has fallen from 5% in 1995 to 2% in 1999. In PSC's experience, the bond-breaking rate rises when the economy is doing well, and our salaries get out of line with the private sector. Conversely, the rate falls when the economy is not doing so well. This is only natural. The point is that the proportion of bond-breakers is low. The newspaper debate that followed the Sunday Times front-page article had created an exaggerated impression of the severity of the problem. We should see this issue in perspective, otherwise we would be unfair to the vast majority of scholars who did not break their bonds and who do not intend to break their bonds. A Government scholarship deed requires two sureties. The scholar accepts the scholarship with the full knowledge, consent and approval of the two sureties.”
“The amount of sponsorship also varies across countries, depending on the cost of the university education as well as the cost of living. Hence, the liquidated damages vary. All Government scholarships are given for the purpose of identifying, inducting and grooming talent for the public sector. Thus, the Government is not in favour of awarding prestige nor acknowledgement scholarships without the scholar making a commitment to serve in the public service (Since 1993, President Scholarships have not been awarded on a nominal basis to individuals. The last time it was awarded nominally, was to a scholar to pursue Medicine at the University of Cambridge in 1992.). There is already much flexibility in the treatment of Government scholars. First, scholarship bonds have been shortened from 6-8 to 4-6 years to keep up with the times. Scholars are now encouraged to pursue a much wider range of disciplines. Many scholarships also allow scholars who meet the criteria to go for postgraduate studies. For example, those on the SAF, SPF or PSC's Overseas Merit Scholarships or OMS, have a Master's programme worked in as part of their scholarship terms, as long as they complete their studies in 4 years. There are also about 10 PSC scholars who are pursuing doctoral programmes. On getting their PhDs, their bonds may be transferred to the local Universities or to one of our public sector research institutions. Government scholars also go for industrial and research attachments locally and overseas with our blessings. SCHOLARSHIP BONDS 7.”
“Look out of the windows and learn from their graciousness. If we do not like what we see in their behaviour, then let them be our mirror in life. Look at the mirror and ask, "Do we behave this way too?" Reflect, and learn from other's mistakes. In conclusion, Sir, I would like to say that in the spirit of Singapore 21, I join Dr Neo in calling all Singaporeans to step forward as active citizens, strengthen our social foundation and reinvent the Singapore society. Working together, we can, and in PM's words, "build a more gracious society, a good society and a society of distinction." Hopefully, let us do it sooner rather than later. Question put, and agreed to. Resolved, That Parliament do now adjourn. Adjourned accordingly at Nine Minutes to Six o'clock pm to a date to be fixed. Graph - Average Electricity Tariff and Fuel Oil Price (Cols. 771 - 772) Page - Rebates for Utilities Bill (Cols. 773 - 774) WRITTEN ANSWERS TO QUESTIONS FOR ORAL ANSWER NOT ANSWERED BY 1.30 PM SCHOLARSHIPS 6. Dr Lily Neo asked the Deputy Prime Minister whether the Government will consider giving (i) more varieties of scholarships in terms of varying years of bonding and amount of pecuniary involvement; (ii) prestige or acknowledgement scholarships with no monetary involvement; and (iii) scholarships with flexible terms like deferment of bond service for further postgraduate courses and/or training. BG Lee Hsien Loong: Government scholarships today already vary in terms of the years of bond, as well as in the pecuniary amount involved. The number of years of bond associated with a scholarship depends on the type of award and country of study. For PSC, for example, the bond is 6 years for US and UK, 5 years for France, Germany, Japan and the PRC, and 4 years for the local scholarships.”
“Likewise, if we are in a restaurant or in a shop, do we go around ordering the sales staff because the customer is king, or do we put across our request politely and thank them for the service and show our appreciation? The question really is: whose job it is to turn Singapore into a gracious society? Sir, one day, there was a job to be done. Four persons came together. Their names were Everybody, Somebody, Anybody and Nobody. Everybody thought that this job should be done by Somebody. Anybody could have done the job but, at the end of the day, Nobody did the job. So Everybody was very upset, because Anybody could have done the job. They expected Somebody to take the lead, but it ended up Nobody doing it. So, you have a situation whereby Everybody blamed Somebody, where actually Anybody could have done the job that ended up with Nobody doing it. Sir, I think it is quite clear that we can only become a truly gracious society only if every Singaporean plays a part and make mutual respect for others our way of life in Singapore. I want to assure Dr Neo and Members of this House that the Government will surely do its part to ensure that we create the environment for this to take place. But as Dr Neo has suggested, all Singaporeans must make a concerted effort. In this regard, instead of calling for the Government to take the lead and for the policy makers to promote and act, why not let all of us in Singapore take the lead together so that we can get there sooner rather than later. Sir, all of us can observe each other and learn from each other every day all the time. We can look around us, observe how our fellow Singaporeans behave and interact with each other. If we like what we see, let them be the windows of our life.”
“Mr Deputy Speaker, Sir, Dr Lily Neo has identified having responsibility and consideration for others as the building blocks for a gracious society. I thank her for her many suggestions and I am very sure my colleagues in the various Ministries will respond and look into these suggestions put forward by her. Sir, our vision in Singapore 21 is to make Singapore our best home. If Singapore is just a place for people to make money, earn a good living, and nothing more than that, then our vision will not come through. What we need to do is to continue to strengthen our social foundation, inject more civility into our daily life and make Singapore a more pleasant and gracious place for all to live in. Sir, every day we come into contact with many people. Some are friends and colleagues we have known for years. So it is only natural that we treat them with human decency and courtesy. This is good, but this is not good enough. This is not good enough to make us a gracious society, because our real challenge is for everyone to learn to respect others, not just friends whom we have known for years, but also to respect strangers whom we may be meeting for the first time, regardless of their stations in life. This may not come naturally for many Singaporeans yet, but we must try. For example, when we sit down at a hawker centre and a cleaner comes along to clean the table, do we grab our things, cover our nose, turn our body and mumble to ourselves, "Hmm, so smelly!"? Or do we smile, look at him or her in the eyes and say, "Thank you for cleaning my table"? It is actually not so difficult, only if we try.”
“The House immediately resolved itself into a Committee on the Bill. - [Mr Lim Swee Say]. Bill considered in Committee; reported without amendment; read a Third time and passed. ADJOURNMENT Resolved, "That Parliament do now adjourn to Monday, 22nd May, 2000." - [Mr Wong Kan Seng]. Adjourned accordingly at Twenty-five minutes to Five o'clock pm to Monday, 22nd May, 2000. WRITTEN ANSWERS TO QUESTIONS FOR ORAL ANSWER NOT ANSWERED BY 1.30 PM OUTPATIENT CLINICS 31. Mr Yeo Guat Kwang asked the Minister for National Development what is the average outpatient clinic to dwelling unit ratio in a Housing and Development Board estate and why for a new town such as Sengkang, with more than 20,000 dwelling units completed to date, has only four outpatient clinics.”
“We have done so with the telecommunications market; the financial market is now being liberalised progressively; and my Minister has announced the impending liberalisation for power generation, water desalination, and so on and so forth. So liberalisation is the way to go to ensure that there will be enough healthy competition in the marketplace. Secondly, as we liberalise our market, we are also introducing measures to regulate the healthy development of various sectors. Take, for example, in the area of telecommunications, we have IDA as the regulatory authority. If any business or company wants to enter this particular market, it will have to apply for licences and abide by the rules of the industry. This will hopefully minimise the possibility of undesirable market practices. However, notwithstanding the setting up of a regulatory body, it is true that the marketplace may still see the emergence of some of these undesirable anti-competition measures. For example, in some European countries, they set up a regulatory authority, the NRA (National Regulatory Authority), to regulate various vertical sectors within each country. And, at the same time, they have a National Competition Commission that will look into anti-competition measures across all sectors. In the case of Singapore, over time, as we continue to liberalise our market, as we continue to set up more regulatory bodies, I think it is also relevant for us to look into the need for the introduction of a competition law as well as the need to set up a Competition Commission. So the Member may be pleased to hear that this is an area MTI is actively looking into. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House.”
“This means that for Singaporeans who take part in any pyramid selling scheme, as long as the scheme aims to generate benefit for the members not through the recruitment of additional members but through the selling or leasing of more commodities, as provided for under the Exemption Order, they will be all right. Mr Leong Horn Kee brought up a broader issue of competition law and anti-trust law. His concern is whether some businesses may monopolise the market and therefore introduce undesirable selling tactics which could be as undesirable as the pyramid selling scheme. Mr Leong's point is well taken. Over time, with advances in technology, competition will get keener and companies are likely to introduce more new ways of doing business. Mrs Lim Hwee Hua also made the same point that besides B2C and C2C, there will be new business models. This morning I was at an Internet conference and I commented to the participants that in the past we used to talk about B2B, B2C, C2C. Today, companies are introducing new concepts, for example, E2E (end to end), or M2M (marketplace to marketplace). We do not know what kind of new business models will be introduced tomorrow. But what I do know is that from A2A to Z2Z, there are 676 possible combinations. Therefore, we can all be rest assured that in the coming months and years, many companies will be thinking of all kinds of creative ideas in order to gain advantage in the marketplace. Sir, on the part of the Government, we have basically taken three types of measures. The first measure we have taken is to introduce competition in the marketplace so as to reduce the possibility of a monopoly situation.”
“Sir, I would like to thank Mr Leong Horn Kee and Mrs Lim Hwee Hua for their comments and support for the Bill. Sir, both Mr Leong Horn Kee and Mrs Lim Hwee Hua asked what if the pyramid selling scheme originates from overseas via the Internet. The first question is whether this will be covered under the law. Sir, if a pyramid selling scheme originates from a foreign jurisdiction, the Act would not apply to affected persons and activities occurring overseas. However, if a Singaporean takes part in such a scheme and subsequently tries to perpetuate the scheme within Singapore, then our law would apply. In that regard, I would like to respond to Mrs Lim Hwee Hua's second point, ie, is there a danger that Singaporeans may unwittingly take part in such a scheme that originates from overseas. Sir, if Singaporeans take part in such a scheme and perpetuate the scheme in Singapore, they will be covered under the law. Therefore, it is very important that Singaporeans are fully aware of such a law and do not get themselves involved in such a scheme. Hopefully, following the passage of the law in this House today, the media and the consumer group would play their part in helping to create public awareness. I want to assure both Members that even though the amended law would cover all forms of pyramid selling, as I have mentioned in my speech earlier, the Minister can provide for exemption through an order and the first Exemption Order will come into effect at the same time as the Act.”
“We will, of course, have to bear in mind the principles of minimal intervention to the market and caveat emptor. If we do over-regulate, we may stifle innovation and push up compliance cost for businesses which would eventually be borne by consumers. We must therefore weigh the pros and cons. Ultimately, the key is for the Government to promote competition in the market place and for consumers to stay alert and not be exploited. Sir, I beg to move. Question proposed.”
“The businesses to be exempted under the first Order are: (a) insurance businesses registered or approved by MAS under the Insurance Act and the Insurance Intermediaries Act; (b) master franchise schemes which satisfy stated conditions; and (c) direct selling schemes which satisfy the following conditions will also be exempted from the Act: First, the benefit received by any promoter or participant is as a result of the sale, lease, licence or other distribution of a commodity and not as a result of the recruitment of additional participants; Second, the promoter of the scheme shall not knowingly make false or misleading representation or omission relating to the scheme or the commodity; Third, the promoter shall not make any representation on the benefits of the scheme other than the sale, lease, licence or other distribution of a commodity; and Lastly, there should be a clearly stated policy on refund or buy-back guarantee. The order will come into effect on the same date as the new Act. At the same time, we will also take this opportunity to transfer the Act from the Ministry of Finance to the Ministry of Trade and Industry, as the Act deals mainly with trade transactions. Sir, the Bill before the House today reflects the determination of the Government to act against fraudulent schemes in the market. Our legislation is, by and large, adequate in this area. Where necessary, we will improve them. CASE has informed the House earlier that they will be putting up a proposal for a Fair Trading Act for Singapore. CASE is currently studying the Fair Trading Acts adopted by countries such as Australia and New Zealand. MTI will study CASE's proposal when it is ready.”
“Sir, I shall now go through some of the amendments. The thrust of the amendment in clause 2(a), 2(b) and 2(c) is to have a general definition of multi-level marketing and pyramid selling in the Act. This would remove the rigidities in the current legislation, such as a participant must be required to share his commission with another participant, before the scheme is deemed as pyramid selling. At the same time, clause 2(d) of the Bill will allow the Minister to exclude, by order, legitimate schemes and arrangements from the ambit of the Act. Clauses 3 to 6 provide for the increase of the maximum fines prescribed for the offences from $30,000 to $200,000. Clause 7 introduced a mechanism whereby a court needs to impose a penalty in addition to any fine and/or imprisonment ordered as punishment for an offence committed under section 3(2) of the Act. The amount of the penalty takes into consideration the amount of profit made by the promoter or participant of an illegal pyramid scheme and caters for a situation where the maximum of $200,000 fine would manifestly be inadequate. This is critical to ensure that the Act serves as an effective deterrent to potential offenders. The proposed amendment will make our legislation more responsive in acting against pyramid schemes. At the same time, to give assurances to legitimate businesses that they are not unwittingly caught by the Act, the Ministry has crafted the first Exemption Order.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, the Bill before the House aims to bring the Multi-level Marketing and Selling (Prohibition) Act up to date and, at the same time, make it more responsive to changes in technology and the business environment. [Mr Deputy Speaker in the Chair] 4.15 pm Sir, this Act was first enacted in 1973. The purpose of the Act is to prohibit the objectionable features of pyramid selling. These are schemes where participants are required to pay a lump sum upfront to join, but the driving force to recoup their upfront payment is the recruitment of more and more members, as opposed to the selling of more and more goods and services. To illustrate, members of the House will recall the recent S888.com case, where participants pay $27,000 to join the scheme, and receive a fixed commission of $3,000 from S888 for every additional member they recruited. This right to receive the commission subsists down to five levels for each participant. Such schemes will ultimately collapse, because the supply of willing recruits will run out. When that happens, many participants will lose their upfront payment. The existing Act needs to be updated, Sir. The definition in the Act on multi-level marketing and pyramid selling is too narrow. The penalty provided for under the Act is inadequate. In coming up with the Amendment Bill, the Ministry has consulted relevant industry parties and studied relevant trends overseas. Parties consulted include the Direct Selling Association of Singapore (DSAS), the Consumers Association of Singapore (CASE), the Monetary Authority of Singapore (MAS) for inputs on the insurance industry and the Trade Development Board (TDB) for inputs on franchising schemes.”
“The House immediately resolved itself into a Committee on the Bill. - [Mr Lim Swee Say]. Bill considered in Committee; reported without amendment; read a Third time and passed. ADJOURNMENT Resolved, "That Parliament do now adjourn to a date to be fixed." - [Mr Wong Kan Seng]. Adjourned accordingly at Nine minutes past Two o'clock pm to a date to be fixed. WRITTEN ANSWERS TO QUESTIONS FOR ORAL ANSWER NOT ANSWERED BY 1.30 PM BUSINESS OPPORTUNITIES IN THE PEOPLE'S REPUBLIC OF CHINA 16. Mr Tay Beng Chuan asked the Prime Minister if he will (i) give an assessment of his recent visit to the People's Republic of China from the economic point of view, and (ii) inform the House what business opportunities have been identified or made available for our business community.”
“However, I would like to assure Mr Inderjit Singh that in performing these two roles, the NSTB will work very closely with the industry, the research community as well as the private sector because, at the end of the day, we recognise that the private sector is really the engine of growth. Mr Inderjit Singh suggested that the NSTB be responsible for supporting and growing companies from start-up through to world class corporations. I think companies at different stages of their development do face different challenges. Over the years, various economic agencies such as, the EDB, NSTB, PSB, TDB and so on, have built up their areas of core competencies that can complement and supplement each other. We feel that it would be useful to continue to let each of these agencies play its role. What we will do is to continue to strengthen the coordination across these agencies so that collectively they will be able to provide a better level of support to our start-ups as they grow into major corporations. Mr Inderjit Singh also suggested that one of the positions of the Deputy Chairmen be filled by someone who is still in the private sector. The NSTB believes in drawing on the expertise of the private sector. In fact, on the present board of 12 members, six of them are from the private sector. With these proposed amendments, the Minister will now be able to appoint not more than two board members to the position of Deputy Chairman. In that sense, the private sector members of the board likewise can be appointed to the position of Deputy Chairman. The Minister will certainly consider the suggestion put up by Mr Inderjit Singh. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House.”
“What is even more exciting is that some of these private sector-driven incubation centres even offer equities in lieu of rent so as to reduce the cash flow demand on these start-ups. Looking to the future, the NSTB does intend to continue to work very closely with the private sector. For example, NSTB will continue to refer new start-ups and deal flow that we come across to these incubation centres. Some of these incubation centre management companies do set up incubation venture funds to invest in the start-up. If need be, the NSTB is prepared to co-invest with them to share their risks. Mr Speaker, Sir, I believe Mr Inderjit Singh brought up three points. First, he divided the role of NSTB into two parts - long term development to create future industries and short-term impact to stimulate new start-ups. He suggested that we have two separate agencies to handle these two roles. Sir, I think the two roles are inter-related. After all, the long term is made up of a series of short terms. What is long term today will become short-term in five to 10 years from now. Our key challenge is really to find ways to better align our efforts for long term development and short term impact so as to maximise the benefits we can derive from our investment in these long term and short term development efforts. In fact, this is the main motivation behind the proposed amendments to ensure that we will be able to derive maximum synergies from science and technological development and technopreneurship development. It will therefore still be useful, at least for the time being, for the NSTB to continue to perform both roles, of long term science and technology development and short term technopreneurship development.”
“Mr Speaker, Sir, I would like to thank the two Members for speaking up in support of the Bill. Mr Leong Horn Kee asked whether the Government would inject additional funding for T21 beyond the US$1 billion TIF. Since the launch of the US$1 billion TIF, we have invested in 24 funds amounting to about $620 million. As a result of the TIF as well as the efforts by the EDB and NSTB in promoting venture capital in Singapore, in fact, today the total pool of venture fund managed out of Singapore has grown to about $10.2 billion. So the total fund size is actually quite large and is still growing. The NSTB right now is studying whether there is a need for the Government to inject additional funding into the venture market. We will certainly do so if there is a need for the Government to continue to play this role of risk sharing by co-investing with the industry. Certainly, if we were to inject more funds, the intention is to work very closely with the industry. Mr Leong also asked whether NSTB and the Government would do more to promote the creation of more incubation centres to create more competition in the market place in order to create the critical mass of technological start-ups. We agree with Mr Leong's assessment. It is important that we continue to encourage more start-ups and at the same time create more incubation facilities for the start-ups so that they could go into operation as quickly as possible. Since the NSTB started the incubation centre programme about five years ago, I am happy to report to this House that at this moment we are seeing at least 20 incubation centres being set up by the private sector.”
“This will empower the Board: to create a pro-enterprise, pro-discovery and pro-innovation environment; to promote pervasive development and exploitation of science and technology knowledge in commercial applications; and to encourage more collaborations in the education and research communities, as well as between the public and private sectors. The Board will also step up its activities in the development and attraction of local and foreign science and technology and technopreneurial talents, investors and corporations. Clause 5 of the Bill empowers NSTB to embark on a wider range of developmental activities. This includes the granting of financial assistance to individuals and enterprises for manpower development, technology development, innovation and commercialisation. It also includes the provision of incubator and business support facilities, as well as the development of properties such as the proposed Science Hub for the development of science and technology, innovation and technopreneurship. It also provides for partnership with the private sector to offer incubator and business support facilities for new and growing technology-based start-ups. Sir, in conclusion, NSTB has done a good job in building our capability in science and technology. In our next stage of economic development, we need to build and exploit our science and technology capability speedily, and to the fullest potential for maximum commercial returns. The proposed amendments would empower the NSTB to perform an expanded role in the development of science and technology, innovation with science and technology, and commercialisation of science and technology, as we venture into the era of the knowledge-based economy. Sir, I beg to move. Question proposed.”
“More importantly, we also need to strengthen the link among these up-stream, mid-stream and down-stream capabilities, so that we can speedily turn creative ideas into marketable products and services to enjoy first mover's advantage. Our business communities will need to reinvent their businesses to seize the huge opportunities presented by these rapid changes. Likewise, NSTB and all our economic agencies will have to rapidly evolve in response to the emergence of the New Economy. Sir, the purpose of the proposed amendments to the NSTB Act is to enable the NSTB to respond to the New Economy by expanding its role. The expanded role encompasses the development of an environment conducive not only for science and technology development, but also for innovation with science and technology, and commercial deployment of science and technology. I will now run through the proposed amendments. In clause 2, we have inserted the definitions of "commercial application" and "financial assistance". This is to state clearly the proposed expansion in the scope of NSTB's functions beyond science and technology development to include innovation and commercialisation. Clause 3 of the Bill and the amended First Schedule will allow the Minister to appoint up to two members of the NSTB Board to be Deputy Chairmen instead of one. This will provide greater management flexibility to NSTB, bearing in mind its expanded scope of functions. To strengthen the link between up-stream R&D with mid-stream innovation and down-stream commercialisation, we will expand NSTB's functions to include development and promotion of technopreneurship in Singapore. This is reflected in clause 4 of the Bill.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, the National Science and Technology Board (NSTB) Act was introduced in 1991. At that time, the Singapore economy was making the transition from a developing economy to a more advanced developing economy. We needed to strengthen our capabilities in undertaking higher value-added activities, and invest in R&D to better harness the full potential of latest development in science and technology. We therefore upgraded and expanded the Science Council into the NSTB to nurture manpower development, and encourage R&D in the public and private sectors. Sir, 10 years have gone by. Gross expenditure in R&D has increased from 0.84% of GDP in 1990 to 1.78% in 1998. The number of research and scientific engineers (RSE) has tripled from about 4,300 to 12,600 over the same period. The private sector now accounts for more than 60% of R&D, compared to only 54% in 1990. The NSTB has also helped establish a technology infrastructure comprising 13 research institutes and centres to support R&D in the industry. On the whole, we have made good progress in enhancing our capabilities in technology development. Looking ahead to the next 10 years, our new challenge is to transform the Singapore economy into a knowledge-based economy. We recognise that innovation and speed are the two key attributes for success in the New Economy. We therefore need to continue to strengthen not only our capabilities in up-stream technology development, but also our capabilities in mid-stream innovation; and down-stream commercialisation.”
“This includes the Singapore National Employers' Federation. We look forward to appointing more AIP agencies in the private sector. The role of PSB as an economic agency is to provide the overall coordination and keep track of the Board's main interest of the SMEs, including those SMEs without any strong industry association. Mr Tay Beng Chuan asked about funding for SME 21. Sir, SME 21 programmes will be funded under existing grant and loan schemes. For this year, we have set aside $500 million for LEFS loan scheme and $35 million for LETAS grant. The Government will continue to assess the situation. As and when needed, additional developmental funding will be launched. The recent launch of a $20 million Industrial Productivity Fund (IPF) is a case in point. In response to the comment by Mr Tay, our Ministry would suggest to the Ministry of Finance to consider grouping all SME-related fundings into an SME account in future years.”
“Sir, take the retail sector, for example, it is highly fragmented due to the low barrier of entry. Our retail density is among the highest in Asia and, yet, its productivity level is less than half of the national average. PSB will work closely with the Shopkeepers' Association to reach out to neighbourhood shop owners and operators, including those who are non-English speaking to restructure and double the productivity of the industry. We will support retraining of workers through the SRP and the SDF. We are also working with the HDB to reduce the retail space in those neighbourhoods where there is access by allowing for alternate use. Sir, in launching SME 21 early this year, our collective vision in the private and public sectors is to create a vibrant and resilient SME sector that would enhance Singapore's competitiveness and the economic growth. Several MPs have raised concerns about the implementation of SME 21. Mr Inderjit Singh suggested spinning off part of PSB into a consortium jointly managed by the private and public sectors. Mr Tay Beng Chuan is concerned that we may pay more attention to MNCs and large local enterprises and neglect the large number of SMEs. Sir, we recognise that it is not possible for PSB alone to reach out to all the 100,000 SMEs in Singapore. It is never our intention to go it alone. At the launch of the SME 21, we invited business organisations and private sector organisations to come forward with specific ideas and initiatives. We hope industry associations will play an active role in helping our SMEs realise their full potential. I am pleased to say that some industry associations have already been appointed approved-in-principle (AIP) agencies for PSB's grant scheme, LETAS.”
“Likewise, innovative start-ups can go to the NSTB for incubation assistance or venture financing. The role of the economic agencies is to offer developmental support to as many promising and deserving companies and projects as possible. It is then up to the companies to pass the market test, succeed and become global players. Mr Inderjit Singh felt that we have not been able to find the right formula to help SMEs to be world class players. I agree that we are not prefect. But I think the Member will agree that we are making some good progress as well. In 1995, EDB set targets to nurture 100 PLEs with annual turnover of $100 million in 10 years. I am pleased to report to this House that, by the end of 1999, 45 PLEs have achieved the annual turnover target of more than $100 million, up from 31 in 1998. Last year, 23 PLEs made it to the Business Times Enterprise 50 Awards. There are altogether 350 PLEs now being nurtured by the EDB. And we expect the list to grow further. As for the promising SME programme managed by the PSB, there are now 786 SMEs on the list and 16 of them have made it to the Enterprise 50 list since 1996. So on the whole, we are encouraged by the progress of the PSME and the PLE programmes. Sir, as we liberalise our markets and transit into the KBE, we will need to speed up the transformation and redevelopment of some of the traditional sectors in Singapore. Our immediate focus is to upgrade two domestic services sectors with persistently low productivity, the retail sector and the construction sector. Mrs Lim Hwee Hua asked how can economic agencies reach out to the non-English speaking SMEs as well as the job placement and retraining of redundant workers.”
“Mr Leong Horn Kee, Mr Inderjit Singh, Mr Zulkifli and Mr Ahmad Magad have highlighted the need for Government to help our promising local enterprises (PLEs) and promising SMEs (PSMEs) develop into global players. Some Members suggested that our SMEs could overcome the limitation of small size through consolidation and partnership. I agree with them. Under the PSB's Business Connect programme, we organise business missions for our SMEs to meet up with potential partners in countries like Canada, Taiwan, Japan, Australia and France. So far, about 3,000 SMEs have participated and more than 800 joint ventures have come out from these trips. We will continue to facilitate such cross-border partnerships. Mr Inderjit Singh is concerned that our PLEs' selection criteria may be outdated. Sir, the existing list of criteria is both quantitative and qualitative, covering areas such as capabilities and innovation, professional management, market potential and international orientation. I think these criteria are broad enough and are necessary for success in the global environment. However, I do agree with Mr Inderjit Singh that we have to be mindful that the world is changing very rapidly. Our economic agencies are doing their best to look ahead and be as responsive as we can to this global trend. Even so, there could be times when we are behind the market. What is important is for us to know when we are behind and be able to respond quickly. So on the part of the SMEs, they can help us to transform the identification of the PLEs into a self-nominated and self-selection process. SMEs that believe in their potential could present themselves to PSB for assistance under the promising SME programme. Others could approach the EDB under the PLE programme without waiting to be spotted.”