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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“On their own, we recognise that many of our SMEs do not have the resources and the expertise to be e-ready. PSB and IDA are working together to help them overcome these obstacles. Mr Ahmad Magad suggested that the Government should offer financial assistance to SMEs and promote the adoption of locally available portals. These are good ideas and I agree with them. 1.45 pm Sir, we are taking steps to promote the development of vertical, horizontal, corporate and SME portals in Singapore and these portals will have regional and global connections. These will make it easier for SMEs to integrate themselves into the business value chain of various business sectors, making it easier for them to carry out B2B and B2C transactions in our local cyberspace, regional cyberspace as well as the global cyberspace. We are also helping our SMEs to learn to exploit the full potential of e-commerce in their businesses. SMEs can now obtain up to 70% of funding support from the PSB for their feasibility studies and consultancy services. For those SMEs which are ready to implement e-commerce under the Local Enterprise Computerisation Programme (LECP) for e-commerce, jointly managed by the PSB and IDA, SMEs can obtain a grant of up to 50% of the cost of the e-commerce project, subject to a ceiling of $20,000. Today, more than 300 grants, amounting to $4.5 million, had been granted. Our target on the whole is to help 25,000 SMEs to be e-ready over the next five years. This is an ambitious undertaking and we have just started. Sir, many of our SMEs have the potential to grow into world-class companies and global players in the KBE.”
“This new industrial park will be a place where tenants can seek and congregate for not only good jobs but also quality housing, active liftestyle in a congenial work environment. This will bring about a transformation in Singapore's industrial landscape, offering enhanced quality of life to both the local and foreign talents, thereby strengthening Singapore's competitiveness as a KBE. Sir, I now move on to the cuts relating to the SMEs. Mr Tay Beng Chuan is concerned that Government support may be targeted at successful local enterprises to the neglect of the broad-based SMEs. Sir, the Government offers a broad range of assistance schemes to meet the needs of our SMEs. Last year, more than 2,000 SMEs were awarded a total of $42 million worth of LETAS grant to upgrade their systems and processes. 90% of the grants went to SMEs with less than 50 employees. We also approved a total of $340 million worth of LEF loans to about 1,000 SMEs. Again, 90% of the loans went to SMEs with less than 50 employees. If we take into consideration non-financial assistance programmes offered by the PSB, the total number of SMEs assisted came to more than 5,000 in 1999. I would like to assure Mr Tay that the Government has been providing assistance to a broad base of SMEs and will continue to do so under the SME 21. The global economy is going through the e-revolution driven by the rapid penetration of Internet all over the world. Several MPs, including Mr Inderjit Singh, Mr Ahmad Magad, Mr Zulkifli, have expressed their concern that many SMEs have yet to embrace Internet and pursue e-commerce as a business strategy. Sir, I share their concern. We need to help as many of our SMEs as possible to be e-ready as quickly as possible.”
“Sir, I would like to start with the two cuts on industrial land. Mr Leong Horn Kee and Mr Inderjit Singh suggested intensifying our land use to cut business cost and the need to keep land cost for manufacturing competitive. We agree with them. JTC has extended rental rebate to the end of this year and will pass on the property tax savings to their tenants. But our land cost cannot be as low as those of our competitors simply because land is scarce here in Singapore. Therefore, we need to intensify our land use. Our current efforts today include introducing innovative design such as multi-storey factories, integrating suitable non-industrial use with industrial development in vertical mix-use development, and developing industrial buildings over MRT depots and sewerage treatment plants. I am also pleased to share with the House that we are looking into lowering the differential premium (DP) for industrial land to encourage industrialists to build higher. Sir, besides building higher, we also need to build better. Our industrial landscape will have to keep pace with the needs of the new economy. To cater to the requirements of the knowledge workers and knowledge-driven industries, we have to incorporate innovative design and features in our industrial facilities. Since 1996, new and refurbished JTC industrial buildings are fully ready for broadband access. JTC is now going one step further by working with the service providers to bring broadband services content to new development in the Science Park, Business Park and Ayer Rajah Technopreneurs Centre. In Paya Lebar and Senoko, JTC is experimenting with a new kind of industrial park. We will adopt the community-based approach in the planning and development.”
“Sir, under the licence issued by the IDA to SingPost, there is a requirement in terms of the location of the mail boxes. For example, in the population centres, for HDB estates that are more dense, the distance between any two outgoing mail boxes cannot be more than 500 metres. For the medium density blocks, it is 750 metres. For the low density blocks, it is 1 km. Within the business district, it is 250 metres. In that sense, we make sure that our residents do not have to walk too far in order to have access to a mail box.”
“I think this is a very good suggestion. The IDA will take it up with the People's Association and see how we can implement a similar programme.”
“In the formulation of these standards, we benchmarked ourselves with best practice all over the world and we even have a foreign expert to advise us. Today, there is a comprehensive set of IT security standards in place for the public sector. It covers all areas of security, right from IT security policy to various specific guidelines regarding firewall and even disaster recovery, meaning that if something were to happen to our data centre, we will be able to recover and relaunch the whole system within a very short period of time.”
“With our firm foundation in IT built up over the past 20 years, we should aspire to be among the first nations in the world, if not the first, to offer a comprehensive e-Government services for the convenience of the public. We hope the day will come when members of the public can have access to Government services in a triple A manner, meaning any time, anywhere, using any device, be it the PC, Notebook, Palmtop, cellular handphone and so on. Last, but not least, we should not forget the significant role played by the labour movement. In fact, the NTUC is today the largest provider of IT education and training in Singapore, training more than 20,000 rank-and-file workers in IT every year. It will continue to have a major role to play under the ICT 21. We believe that it is through such concerted efforts of the Government, the labour movement, the business community and grassroots organisations that we are hopeful that many Singaporeans will embrace IT and cross over to the right side of the digital divide in the coming years. Sir, I will now move on to respond to the cut proposed by Mr Low Thia Khiang regarding IT security in the Government sector. I agree with Mr Low that, as we intensify the use of IT in the Government sector, IT security will become even more important, because it is important that we safeguard the reliability and the security of the system, as well as the information maintained in this system. Mr Low asked three questions. Firstly, whether we have IT standards in place for the Government sector. The answer is yes. In fact, since July 1996, the former NCB, which is IDA today, formulated a comprehensive set of IT security standards.”
“In fact, we have identified homemakers as one of the five target groups. The other four are NS men, workers, senior citizens and the disabled. We will explore the use of TV as a medium to bring IT education to the homes, as suggested by Mr Peh. Meanwhile, Mr Peh may be pleased to note that IDA is running the One Learning Place in Toa Payoh to provide training on broadband Internet which is more fun and more exciting than learning Internet on TV. For the 10 months, from May 1999 to February this year, One Learning Place has reached out to more than 37,000 trainees. Among them, more than 30% are Singaporeans who are more than 40 years, including 608 of them who are more than 60 years old. Even though working adults make up the majority of the trainees at the One Learning Place, we did have 2,970 homemakers among the trainees and we hope that more will join the class as we intensify our efforts in reaching out to these five target groups in the coming years. 3.45 pm Mdm Claire Chiang urged the Ministries to make their websites as interactive as possible and she urged the Ministry to exploit the full potential of Internet. Again, my response is yes. The public sector has been the leading users of IT since we started the Civil Service Computerisation Programme (CSCP) in 1981. The CSCP spearheaded the use of PCs and database in Singapore in the early 80s, followed by data communication and electronic data interchange (EDI) in the mid-80s, and followed by the intelligent systems and integrated office systems in the early 90s. It has also been an early adopter of Internet and Intranet in the past few years. The next IT challenge for the civil service is to become a leading user of broadband Internet, wireless Internet and Internet appliance.”
“Up till now, Internet content is very much US-centric and mainly in English. With the rapid rise in Internet users based in Europe and in Asia, we are seeing a clear trend towards the development of regional contents in regional languages. We can expect to see a rapid growth of Asian portals in Asian languages from now on. In fact, this morning, Media Corp Interactive and Popular Holdings launched a joint venture known as the Chinese 88.com. Their aim is to become a global player in the Chinese Internet portal. Likewise, our Malay and Tamil communities are promoting the development and the use of Malay Internet and Tamil Internet to keep up with the transition towards a knowledge-based economy and the information society. The Government, through the IDA, will work with these various industry players and civic organisations, such as the Malay and Tamil Internet Societies, and provide them with the necessary assistance because the proliferation of non-English Internet is probably the best way for us to attract more older Singaporeans who are more comfortable with their mother tongues rather than English. In this regard, we will be providing assistance through the Local Industry Upgrading Programme (LIUP) and the Innovation Development Scheme (IDS) to help companies and organisations that want to go into the development of non-English contents and portals. At the same time, we will continue to step up our training of Internet in Malay and Tamil. For example, at One Learning Place in Toa Payoh, so far, 1,200 users have been trained to use Internet in Malay and 257 were trained to use Internet in Tamil and we will do more of this. Mr Peh suggested that we should do more to reach out to the homemakers. I agree with him.”
“Among households without home PCs, according to our survey, 14% cited the high cost of a PC as a reason for not owning a PC. For low-income households, we need to help make ownership of home PCs more affordable to them. However, what is even more important is to help more Singaporeans to discover the usefulness of IT and Internet and to learn to use the technology. This is because among those households without PCs at home, 73% of them either do not see the need for PCs or do not know how to use a PC. Some of them also feel that they are too old to learn to use IT. To bridge this emerging digital divide, the Government cannot do it alone. What we need is a broad-based people sector driven movement, reaching out to all the different population segments in our society. We need to rely on the joint efforts of the Government, the labour movement, the business community and the various volunteer and grassroots organisations, so as to overcome the barriers of income, language and mindset which are holding back some Singaporeans from embracing IT and Internet today. Mr Iswaran made three suggestions yesterday. Firstly, to draw on the People's Association in reaching out to the grassroots users. Secondly, to use characters well-known to older Singaporeans, such as Liang Po Po and so on, as our IT icons and e-ambassadors. And thirdly, to take the path of least resistance, such as games and entertainment, to induce first-time computer users before they progress to something more serious. My response to Mr Iswaran's three suggestions is yes, yes and yes. Mr Ravindran suggested that we should step up effort to promote development of Internet contents in Mandarin, Malay and Tamil. Again, my response is yes.”
“Sir, the other day I was walking down the street and I saw this lady walking in front of me, wearing a T-shirt. At the back of the T-shirt, it was written "The answer is no". I was very curious of what was the question in front. So, I overtook her and in front, it was written, "The answer is still no". Sir, I have listened to the various cuts put up by the various Members with an open and receptive mind. I want to assure them that I did not come in with any pre-conceived ideas. Let me respond to some of the cuts that were presented by the Members here. Yesterday, Mr Iswaran touched on the issue of a digital divide. 59% of households in Singapore today have a PC at home and 42% have access to Internet. In fact, Singapore is one of the most IT-intensive nations in the world today. However, we feel that the threat of a digital divide is still very real. The question is, why? If you look at the penetration of home PCs, for the 1-to 3-room HDB flats, it is only 41%, compared to 78% for the HDB Executive flats and private housing. Among the people using computers today, only 1 in 5 is more than 40 years old, and 1 in 20 is more than 50 years old. In fact, 80% of computer users today are those who are younger than 40 years old. In terms of educational qualifications, among the computer users again, only 1 in 6 is a primary school leaver, 1 in 3 is a secondary school leaver. 60% of computer users are those with post-secondary and tertiary education. In short, we think that there is an early sign of a digital divide along the line of household income, age group and educational qualifications. Under ICT 21 Masterplan, one of our aims is to dot.com the entire people sector so that there will be no digital divide in the information society of the future.”
“On the issue of international pursuit of computer criminals, my understanding is that the Ministry of Home Affairs and Police have already been using Interpol and other inter-agency arrangement to pursue these cyber criminals. Prof. Toh also asked whether we can spend money to help to promote awareness of the inherent unreliability of some Internet sites. We feel that this is best done through a consumer interest group, like CASE and so on. What IDA would do would be to cooperate with such agency and see what we can do to make sure that the message gets across. Prof. Toh also mentioned about the need to review our ground rules on the domain naming registration. I believe procedures are already in place. So if there are any specific suggestions from Prof. Toh, we would be more than happy to receive them. Prof. Toh asked whether we would consider giving grants for research into e-commerce, such as e-payment, etc. Prof. Toh may be happy to hear that, in fact, the research institutions and research centres have come together to discuss and they have jointly identified some areas of joint research, and e-commerce will be one of them. In fact, their research efforts will be supported by grants through the NSTB and eventually if need be, through the Innovation Development Scheme managed by EDB and IDA. Lastly, Prof. Toh mentioned about allowing professionals to accept payment in kind in the form of shares and options. I believe various professions in Singapore do have their code of conduct, code of practice. I think we will leave it to the respective authorities to decide whether this is appropriate to do so, because conflict of interest may come into play. With that, I believe I have answered the questions raised by Prof. Toh.”
“Under the ETA, public certification authorities can apply for licence to issue and to verify digital signature under the Act. Prof. Toh commented that the application for CA licence is too onerous and uncertain. I wish to point out that for Singapore to become an e-commerce hub, we need to ensure that these licensees are trustworthy. We also need to ensure that the digital certifications issued by these Certification Authorities are recognised in other countries, otherwise we cannot be an e-commerce hub. For these reasons, we want to make sure that our Certification Authorities are evaluated based on a well-recognised set of criteria. This would include their financial standing, operating policies and procedures. So even though the two CAs today have yet to apply to IDA for licence, my understanding is that they intend to do so when they are ready to satisfy these criteria, and it is likely to be in a few months' time. In terms of consumer protection, there are already existing laws, such as the multi-level marketing and pyramid selling prohibition Act and so on. We recognise that with the emergence of e-commerce and the new Internet-based retailing, we need to review the existing consumer protection legislation to ensure that they continue to be effective in the new operating environment. And yet at the same time, we are mindful that we should not over-regulate the industry, because it may stifle innovation in the market place. We will therefore adopt a combination of industry self-regulation, Government regulation and consumer education in the protection of consumer interests.”
“I will not reply to the subject of digital divide now because later on there will be three cuts relating to this topic. So I will respond to that tomorrow. I will now respond to Prof. Toh on his comments regarding regulating the e-commerce. Sir, e-commerce is a relatively new concept, a fast growing one. As a result, the regulation of e-commerce is still evolving. Basically, when we talk about e-commerce, we talk about electronic transactions between businesses, B2B, businesses and consumers, B2C, as well as those between consumers, so it is C2C. In the case of Singapore, our interest is to position ourselves as a leading hub in e-commerce in the Asia-Pacific. In this regard, I want to assure Prof. Toh that the Government will not adopt a laissez faire attitude because we recognise that to succeed in this fast moving world of e-commerce, businesses will need to come out with creative ideas and be able to implement them very quickly. In other words, dot.com companies will need to be innovative and move with fast speed if they want to succeed. So our challenge as a Government will be to create an environment in Singapore which is conducive for e-commerce companies, dot.com companies, to succeed. This means, on the one hand, we want to create an environment that has sufficient safeguards, to create trust among businesses and consumers and yet at the same time provide sufficient space for companies to innovate with new ideas, to compete with new ideas. In fact, this is the reason why we have decided to become one of the first countries in the world to put in place the Electronic Transactions Act (ETA) way back in 1998 so as to provide enough safeguards in the business world for companies to conduct e-commerce.”
“Mr Goh Choon Kang asked the Minister for Communications and Information Technology if the current Electronic Road Pricing charges at different hours of the day will be further reviewed and refined to optimise usage of all roads. Assoc. Prof. Yaacob Ibrahim (for the Minister for Communications and Information Technology): Mr Speaker, Sir, the Land Transport Authority (LTA) reviews the Electronic Road Pricing (ERP) rates every quarter to ensure that there is optimal traffic flow and efficient use of the road network. Traffic speeds on various stretches of busy roads are monitored at regular intervals throughout the day, and adjustments are then made to the ERP rates to maintain travel speeds within the ranges of 45 to 65 kph for expressways and 20 to 30 kph for arterial roads. Before making any changes to ERP rates, LTA takes into consideration the impact of any changes on a network-wide basis. ERP rate changes, if any, are implemented in January, April, July and October each year. ERP was introduced in April 1998. After nearly two years of operation, it is indeed timely for LTA to review and refine the system of rates review. LTA will be studying how to factor in traffic volume projections when determining rate changes for those periods of the year which experience seasonal changes in traffic volumes, such as the school holidays. This will increase the effectiveness of our ERP mechanism. PUBLIC TRANSPORT SERVICES IN SENGKANG 5. Mr Yeo Guat Kwang asked the Minister for Communications and Information Technology whether there are plans to enable residents of Sengkang to enjoy a better level of public transport services before the North-East MRT Line and Sengkang Light Rapid Transit system commence operations in the year 2002.”
“The same average after the introduction of the surcharge showed an increase to about 17,300 per month. The average amount of fines collected during the corresponding periods was about $533,000 per month before the introduction of the surcharge, and $288,000 per month after that. This is a reduction of about 45% in the amount of fines collected. Assoc. Prof. Chin Tet Yung: May I ask the Parliamentary Secretary whether the introduction of the administrative charge has meant less work or more work for the Ministry in terms of appeals, for example? Assoc. Prof. Yaacob Ibrahim: Sir, if we look at the number of violations, they have increased over the same period. But the Member has raised a very good point. What we have seen is that the number of appeals received has declined. For example, for the period prior to the introduction of the surcharge, which is April and May, the number of appeals was 6,479, and for the period after the introduction of the surcharge, the number of appeals went down to 3,324. Hence, the surcharge has worked. Assoc. Prof. Chin Tet Yung: May I ask the Parliamentary Secretary again, given the satisfactory nature of this exercise, would the Ministry consider other types of offences that fall within this type of category, for example, eating in MRT stations be regulated in the same manner? Assoc. Prof. Yaacob Ibrahim: Sir, the offences mentioned by the Member are totally different from ERP violations. But rest assured that the Ministry is constantly reviewing some of the procedures to ensure that there is an efficient and optimal use of our land transport system. ELECTRONIC ROAD PRICING (Review of charges) 4.”
“Chin Tet Yung asked the Minister for Communications and Information Technology (a) how many cases to date have been processed since the de-criminalizing of Electronic Road Pricing (ERP) violations, and whether these cases exceeded the number of cases for a similar period when ERP violations were treated as offences; and (b) whether the amount collected for fees and administrative charges exceeded the amount collected for a similar period when ERP violations were treated as offences. The Parliamentary Secretary to the Minister for Communications and Information Technology (Assoc. Prof. Yaacob Ibrahim) (for the Minister for Communications and Information Technology): Mr Speaker, Sir, the rationale for introducing an administrative surcharge of $10 was because ERP violations are usually due to forgetfulness or carelessness, and not a wilful disregard for the rules. Therefore, on 1st June 1999, the Land Transport Authority introduced a new procedure to deal with ERP violations. The administrative surcharge is levied to recover the administrative costs of processing an ERP violation. Instead of a composition fine of $30 (which was introduced in May 1998), motorists who commit ERP offences are requested to pay an administrative surcharge of $10 plus the ERP charges within two weeks of the violations. If they fail to do so, they would receive a Notice of Traffic Offence to compound the offence for $70 payable within 28 days. Upon expiry of this Notice, the matter will be referred to the Court. In the two months preceding the introduction of the administrative surcharge (i.e. April and May 1999), the average number of violations per month for no CashCards and CashCards with insufficient balance was about 16,000.”
“Mr Speaker, Sir, basically, in my reply, I mentioned that there are codes of conduct in the industry. In the survey conducted at the end of last year, we asked Internet users, who were not transacting on the Net, what were the reasons for not going on e-commerce. In fact, only 6.7% of them cited privacy as a concern, meaning that for the majority of the users who are not transacting on the Net, the main reason is either they do not find the things they need on the Net, or they prefer not to shop on the Net for whatever reason. Having said that, over time, we believe that for Internet users, two concerns will become more important in the future. Firstly, the protection of safety of children using the Net and, secondly, privacy. So the question is: What do we do with privacy? I understand the Member's point that in the case of credit card companies, for example, right now there is nothing to stop them under the law from doing that. But the question is whether enacting a legislation is the way to go. At this moment, countries adopt three approaches. Some countries decide not to do anything. Other countries enact new legislation. The third type goes for industry self-regulation. In view of the fast pace of change of the Internet world, we believe that at this moment, industry self-regulation is still the best way to go. Because, on the one hand, we make sure that the industry will respect the privacy of the users and yet at the same time, we allow the industry enough room for them to innovate. I hope these address the concerns of the Member. ELECTRONIC ROAD PRICING VIOLATIONS 3. Assoc. Prof.”
“Sir, as I have mentioned, the Bill states quite clearly that "any person who wilfully retains .". So for a few seconds, I think it would constitute retention. As I said, I am not a legal expert and I think the court of law would do the interpretation. If it turns out to be different from the intention of the Act, then we have to clarify and amend the Act. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Lim Swee Say]. Bill considered in Committee; reported without amendment; read a Third time and passed. BUSINESS REGISTRATION (AMENDMENT) BILL Order for Second Reading read. 4.35 pm”
“Sir, clause 36 says, "Any person who . wilfully retains or secretes or makes away with or keeps or detains ..". My understanding is that even if a person were to retain the letter for a short time, that could, in a way, be covered under this clause. But I am not a legal expert and I think we will leave it to the court of law to interpret this particular sentence. Assoc. Prof. Toh See Kiat: Sir, in other words, the Minister of State says that it is the intention of Parliament that even those few seconds of retention is sufficient under the Bill to constitute an offence.”
“So e-mails and e-postage come under a separate Act, which is the Telecommunications Act. On clause 28 regarding the unlawful interception of letters, basically, this clause covers the protection of installation and plant. If a person were to retain any letters illegally and unlawfully, this would be covered under clause 36. If an employee were to do something wrong with the letters, whether he is a part-timer or full-timer, this will be covered under clause 34. Sir, with that, I believe I have addressed the concerns expressed by Prof. Toh. Once again, I thank him for his support. Assoc. Prof. Toh See Kiat: Sir, I would like to ask the Minister of State a question on clauses 34 and 36. These clauses relate to retention. But my scenario is one where a person opens up a letter, reads whatever he needs to read, and then seals it and puts it back into the mailbox. Then there is no offence and I think this is an anomaly, Sir.”
“Sir, I would like to thank Prof. Toh See Kiat for his constructive comments. Firstly, on the point about V-post and e-mail services, I would like to clarify that this Bill basically deals with the physical delivery of letters and postcards. For e-mails and so on, it does not come under this Bill. E-mails would be covered under the Telecommunications Bill. Secondly, on Prof. Toh's point about the "reconstituted" TAS, as my Minister has mentioned earlier, we would check with the Attorney-General again. Prof. Toh also spoke on clause 4 regarding exclusive privilege. I want to assure the Member that the exclusive privilege here refers to the privilege given to the Postal Authority, in this particular case, the IDA. The IDA can issue licences for sectors that are deregulated. As I mentioned earlier, for the high-growth sector, we have already deregulated the market. In fact, at this moment, there are 110 companies competing with SingPost in the deregulated segment. On clause 5, Dr Toh asked what happens if the letter does not have the "Consignee's letter" stamp on it. My understanding is that, as long as the letters or postcards in question concern solely any goods or property to be delivered, and do not serve other purposes, these will be exempted under the Act. Prof. Toh mentioned the presumption on imposition of an indirect import tax in clause 15. I would like to clarify that what this Bill does is to make clear that the addressee is presumed under the law to be the importer of the goods. Whether he has to pay duties directly or indirectly, that will be covered under the Customs and Excise Act, and not under this Bill. Prof. Toh mentioned clause 19 regarding e-postage stamp. Again, this Bill covers only the physical delivery of letters.”
“I hope that every Singaporean will have loyalty towards our nation, to be proud of our nation and to create the Singapore tribe as described by our Prime Minister. And finally, I hope that everyone would have this notion in mind that everyone has a responsibility in the destiny of the society. Everyone should lead by example. We should take the lead and work for the good of our nation. The direction has been set in our Singapore 21 Vision. In this process of building an ideal society, there may be times when we are going uphill and sometimes, we may be moving downhill. Whatever it is, if we are not careful and adopt the mindset of the Small Self, we may roll down the slope. But if everyone of us can look at this Singapore 21 in the spirit of the Big Self, I believe we can all move uphill and scale greater heights. With the stage being enlarged by this Singapore 21 for our nation building, the three sectors - the public, private and the people sectors - should each play its own role, respect one another, support one another, and be dependent on one another to turn the dream of this Singapore 21 Vision into reality.”
“It is like everybody sleeping on the same bed but each having his own individual dream. Four million people having four million different ideas, and each goes his own way. Yes, when times are good, the country can develop and prosper. But, once there is a national crisis, or we are hit by some calamities, we will not be able to stay united in one heart as a nation, and we will be wiped out. Nation building is a long and winding road. There are bound to be some bumpy patches here and there. If we want to tackle each problem as it comes along, and face danger fearlessly, we must plan ahead even in peace time. We have to anticipate the occurrence of any crisis. Our destiny is in our hands. To me, it is a very important question of whether we could look at this matter from a collective view. This "heartware" engineering of Singapore 21 is a long-term project. We are only at the beginning stage. We need a long process of deliberation to come to a consensus like the Big Self. I hope that one day, everyone of us in Singapore would have this passion to do his best to contribute all that he can and to shine on others, and to respect the values of fellow Singaporeans. Every Singaporean should, first of all, respect the parents, love the family and contribute towards society. And I hope that every Singaporean would have this fearless spirit to face the intense competition ahead of us. As we are evolving into a knowledge-based economy, we have to courageously face the challenges ahead of us and strive for excellence. We must use our talent as our assets, our local talents as well as the foreign talents, to create more job opportunities, more foreign investments so that Singapore can become a society where everyone would have an opportunity to pursue his dream.”
“They will say, "Oh, Singapore 21 means one day I will be able to live in a bungalow house, and drive a Porsche, like Mr Peh Chin Hua." They would have neglected the main crux of Mr Peh Chin Hua's speech. We have to take note that S21 does not want to assess a person's success by his materialistic success because this success could well just be a nominal success. Over the past few years, I have been working with the trade unions. In my heart, I feel that the trade union leaders and grassroots leaders are truly working very hard for the ordinary citizens. They take pains to show care and concern for these people. They are ordinary people but have extraordinary spirit. I think this is a real spirit. This is an enriched spirit. These are the people whose success warrants our commendation in the 21st century. Of course, everyone has his own will, everyone has his own ambition. Every one of us will pursue our ideals in our own way. In whatever trade or whatever industry we are in, we must see how we could contribute to our society, and to contribute to our nation. We should not always think of what people should do for me, but rather we should say, "What can I do for the people." We would have derived that satisfaction. The satisfaction is not just personal satisfaction, but a collective satisfaction. I am using this episode between the Big Self and the Small Self to reflect my feelings. To me, this S21 report may be one same report, but because everyone of us has his own mindset, and because we have different ideals, we would derive different inspirations from this S21. If we are to reflect our inspiration from this S21, from the view of the Small Self, S21 gives better lives to the individuals.”
“But this Singaporean, after boarding the bus, did not even take a look at the bus driver. He just bought the ticket and sat down. On reaching his destination, he alighted from the bus. Just like that - not a word of thanks! It is indeed disheartening to see how these people behave. For the Singaporean scholarship holders, they are like this man who was running after the bus. When this scholarship- bus came, he waved, stopped the bus, and got in. Upon reaching his destination, he graduated, just walked down and broke the bond, with not even a word of thanks. His reasoning is that the Government should help him to realise his dream. I am worried that there are Singaporeans of such mentality. I am even more worried that there seems to be more and more such Singaporeans. From the personal point of view, looking at the S21 Vision, we should realise that, yes, I have a vision, I have an ideal. I hope that the big environment of Singapore 21 would provide more opportunities for me to realise my dream. But at the same time, I must also realise that every Singaporean has his or her ideal. So when I am striving towards realising my dream, I should also consider the dreams of the other Singaporeans. We should respect others as well. We cannot be too self-centred. Looking from the society's point of view, I hope that we would change the way we assess the individuals. Yesterday, Mr Peh Chin Hua said in Parliament that we should preserve the good traditional values. His speech was very impressive. But what worries me is that the next day, there was a photograph in the Straits Times showing Mr Peh with his Porsche. I am worried that our young people may just look at the picture and do not read the wordings.”
“Let me illustrate by an episode of a conversation between two people whom I shall call the "Big Self" and the "Small Self". The Small Self would say, "Well, I am very encouraged by this Singapore 21 Vision because it implies that in the future, my family, my community, the Government and the nation would be enhanced and they would attach more importance to me, to myself, my needs, my achievements and my ideals. Under the five main pillars in the S21 vision, when I go to the university, the Government will give me a scholarship and even send me overseas for higher education. After studying, if I have a better opportunity overseas, the Government will allow me to break the bond and I can work overseas. In order to enhance the Singapore Heartbeat, the Government would allow me to have a dual citizenship. Then the Singapore citizenship will become a guarantee, a security. Next time, when I come back, my family, my parents will look after my children. My community, my grassroots leaders would serve me and improve my living environment. So it is "Everybody for Me" and that is very good." The Big Self does not agree. He said, "I am also very enlightened and encouraged by this S21 vision. But my feeling is different because the emphasis in these five main pillars is not only just to enhance the Government's esteem of me. But, more importantly, it is how I can devote more time and efforts to strengthen the family ties, and to better serve the country. One day, I saw a Singaporean running towards a bus stop. When he was about 20 metres from the bus stop, he saw that the bus was about to drive off the bus bay. He waved to the bus driver to wait for him. The bus driver saw him running. He stopped the bus, opened the door and let him board the bus.”
“When these suggestions are objectionable to the Government, they would get into trouble with the authorities. Of course, we do not agree with such a view. But it is worth noting that there are in fact some Singaporeans who have such worries. From the Government's perspective, of course, to rule the nation, we will have to look at the macro interest and the long-term needs of the nation. From the people's point of view, some suggestions may be driven by narrow interest or individual interest, and hence not fully aligned with the Government's view. As a result, when policies are announced, some people may just know a little bit about the Government's policy and do not know the full rationale of the policy. At the moment, there is no doubt that these three circles are of different sizes. The circle representing the Government is the biggest and the private sector is medium size, whereas the circle representing the people is the smallest. Of course, we want to create a Singapore tribe, we want to enlarge the circle of the people and we want to enlarge the areas where they are overlapping. At the same time, we must also enhance the sense of belonging of the Singapore tribe. On the one hand, we must let the two circles of the people and the private sector be gradually enlarged so as to be the same size as that of the Government. On the other hand, we want to enlarge the overlapping areas of these three circles. If we can succeed in forging consensus while maintaining diversity, then our future would be very bright. In order to achieve this objective of seeking more identity, more consensus and less diversity, there are a few things that we have to look into.”
“Mr Deputy Speaker, Sir, yesterday the Prime Minister mentioned in his speech that Singapore was not a nation yet. For a moment I was taken by surprise. Subsequently, after listening to his very careful explanation, I realised that what the Prime Minister had said was that Singapore is not a "tribe" nation yet. The Prime Minister wanted us to create a Singapore tribe. He described our society as a society which was formed by four overlapping circles, with each circle representing one racial community, and in those areas where the circles do not overlap, the individual community will develop on its own. And where they overlap, the communities would converge and form a unified society. In a multi-racial society we are able to live in harmony because we have mutual trust and understanding of one another. We want to build ourselves into a nation. The Prime Minister's speech is very meaningful. Every Singaporean should study it in depth. Today I would like to speak on the relationship between the people, the public sector and the private sector. We can also describe this in terms of three circles. These are three interlinked circles and these circles represent the people, the public sector and the private sector. The question is: are these three circles of equal size and are their overlapping areas big enough? Over the last 18 months, we have discussions and deliberations. From the people's point of view, we have discovered that some Singaporeans are still skeptical. They are worried that there would be a black hole or a black list in the Singapore system. They feel that if they make some good suggestions, these suggestions may still not be endorsed by the Government.”
“More importantly, we should inculcate in them the correct values, to bring out their civic-mindedness, to strengthen their moral perception so that they may extend their knowledge to the utmost and seek to be sincere in their thoughts, rectify their hearts and cultivate their person. Sir, I support the new policy on Chinese language announced recently by the Ministry of Education. However, in implementing this new policy, the Ministry of Education and all the teachers of the Chinese language need to be aware that there is a difference between the students learning the Chinese language and their absorption of good traditional culture. Language is a bridge. It is the medium through which we absorb good traditions. In other words, learning the language to be proficient in Chinese is not the ultimate objective of our learning the language. For students taking Higher Chinese, the language bridge is broader. For those who do ordinary Chinese, the bridge may be narrower. As for those who are taking CL'B' in the future, they are actually walking on a single-plank bridge. However, they all head for the same destination. I hope that when the Ministry of Education implements the mother tongue policy, the inculcation of traditional values should not be diluted. Students from the various courses must be allowed to go deep into the connotations and quintessence of their traditional cultures, and to live through life with the spirit of selflessness, irrespective of the languages and the races.”
“Sir, the sea of learning is boundless. But the ultimate objective of learning is to be able to cross the sea to get to the opposite bank. The question is: what is the purpose of getting to the other side or the opposite bank? Are you learning just because you want to make good money or to absorb more knowledge to enrich yourself? If the students' objective is just for personal benefit, it is a self-centred mentality. As a matter of fact, hidden at the opposite bank are the precious traditional values. If our students can be bothered to go and dig out this treasure, it will benefit them for life. It is a well that never runs dry. The question is: how do we help our younger generation comprehend this? In the classic book of Great Learning, there is a great enlightenment to us. It says, "First, cultivate the persons; next, regulate the families; then rule the state. There will be peace and harmony for the whole world." I am sure we are very familiar with this passage and I shall not elaborate on it. However, I wish to discuss with you another passage from this book. It says "Wishing to cultivate the person, first, rectify the heart. Wishing to rectify the heart, first, be sincere in the thought. Wishing to be sincere in the thought, first, extend knowledge to the utmost." This passage has inspired me to realise that if a person's heart is not rectified and does not treat others with sincerity, then no matter how profound his knowledge may be, no matter how high his academic achievements may be, he will not necessarily be a blessing to society, to the nation and to mankind. Therefore, when we teach our students, it is not just the passing down of knowledge to enrich the mind.”
“Sir, may I propose that Hansard goes multimedia?”
“No. Assuming this is a real handcuff. There is no way I can get out of it. So the student acting as prisoner said, "I give it to you. I think you are ready to be a knowledge worker of the future." The student acting as policeman then said, "Very good, but now I challenge you back. Are you ready to be a knowledge worker of the future? Will you be able to find a way to escape?" This other student said, "No problem, I could escape in just one second." Because the way to look at the situation is this. You define the problem as two interlocking loops. I can always redefine the situation as one of two loops, parallel to each other, circulating my arms. For me to disengage these two loops, all I have to do is to bring the first loop through the second loop and then see what happens? The rope goes through my hand and it comes out. Sir, I use this example to illustrate the point that to be knowledge workers of the future, our students not only have to acquire knowledge, not only have they to learn to apply knowledge but, more importantly, they have to learn to innovate with knowledge. In our human brain, we have countless number of brain cells. The challenge is to help our students build connections to link up as many brain cells as possible, because I was told by the experts that the more connections there are among our brain cells, the better, the faster we are able to think. I would appreciate it if the Minister can update this House on what have been done up to now, and what will be done in the future to continue to stimulate the minds of our young Singaporeans so that they can be more creative and innovative, and to become competitive and productive knowledge workers of tomorrow.”
“Sir, I would like to thank the Minister and his team of officers at the Ministry, and all the principals and teachers for their hard work in 1998. A lot of changes and improvements have been done. As Singaporeans, our education system is something all of us can be proud of. Sir, this afternoon, I just want to bring up one point. One of the Desired Outcomes of Education, obviously, is to prepare young Singaporeans to be the knowledge workers of the future. One day, two students were challenging each other on who is better prepared to be a knowledge worker of tomorrow. One said to the other, "Assuming I am a prisoner and you are the policeman. I am handcuffed and I need to go to the toilet. You, as a policeman, would not want to follow me to the toilet. What can you do to stop me from escaping?" The other student said, "No problem. All I have to do is to take a rope, put it through your handcuff, and then hold the two ends of the rope outside the toilet. There is no way you can escape, is it not?" In order to simulate this, maybe I can ask Mr Low Thia Khiang to help me out with this. See, there is no way I can escape, because, in a way, the two loops are in a dead lock.”
“Sir, I think it is something that we should be concerned about, and I hope that the MDAS will do something to help the younger workers too. In conclusion, let me just say that we are going to go into a period of jobless growth. I do not know whether I am 100% right in my assessment, but I am very sure I am not 100% wrong. So please do something.”
“But in the areas of capability development, I feel that we are still not doing fast enough and going far enough. I hope we will give greater urgency and greater push on the training and development of knowledge workers so that we can speed up the creation of jobs. Sir, my question to the Minister is: will the Ministry consider setting up a $1.2 billion fund known as the Manpower Development Assistance Scheme? I have faxed my proposal to the Ministry. I think the Minister has the details. I will circulate it to the media in case they are interested in the contents. But let me just mention very briefly that my proposal is, firstly, to use the fund to support the formulation of new curriculum in all economic sectors; secondly, expand the training capacity in all major sectors; thirdly, upgrade the training capabilities in new growth sectors; fourthly, extend the scope of support to all major categories of employees and professions; fifthly, focus SDF on rank-and-file workers with co-funding support from the Government, and then support skills certification, and so on. But at the same time, in this proposal I have added two ideas that I think are important. In addition to developing knowledge workers among the local workforce, I support the idea that we have to continue to attract foreign talents. I do not think the issue is one of toning-up or toning-down this message on attracting foreign talent. Rather it is to re-tone our message, ie, let us be more selective, let us go for foreign talent who really can make a difference in helping us to upgrade the capability of our pool of knowledge workers. As for our young Singaporeans, I am very concerned that one out of six young graduates last year is still jobless today.”
“So my worry is that if we do end up with a prolonged period of structural unemployment, how would that affect social cohesion, national unity, and so on? Sir, we have to find a way to prevent jobless growth. We cannot do so by trying to slow down the pace of restructuring. But we can do so by focusing on structural recovery. Structural recovery means different things to different economies. In the case of Singapore, our structural weakness is a mismatch between jobs and skills of workers. Therefore, the key to structural recovery in the case of Singapore really is to focus on the training and development of knowledge workers. We need to enlarge the pool. We need to upgrade the capabilities, so that, hopefully, in the near future we can get out of this jobless growth. Some may argue: are knowledge workers so important? I remember, in my days at the EDB, in the past, when investors decided on investment locations, there were four criteria. Firstly, physical infrastructure. Do we have the facilities to support the operation? Secondly, cost of operation; thirdly, availability of manpower; and lastly, availability of capital. Today, it has changed. The first criterion is manpower. Do we have the knowledge workers to support the operation? Secondly, do we have the knowledge and global infrastructure to support globalisation of operation? Thirdly, availability of capital, because all these operations are capital-intensive; and lastly, cost. Given this situation, I believe that we have done enough in the areas of nurturing a capital market in Singapore, cost cutting through off-Budget measures, and so on. We are also working very hard on knowledge and global infrastructure, like Singapore One, the Boston of the East, the wafer fab parks, Jurong Island, and so on.”
“Last year in June, I was here to express my concern that unemployment could reach 4% by the end of last year, and 5% to 7% by the end of this year. At the end of the day, I was not too far wrong. Unemployment reached 4.3% as at the end of last year and could possibly reach 5% to 7% this year with rising unemployment. Sir, today I am here to express another concern. Many people feel that our economy is likely to recover by the second half of this year and with that, unemployment will drop and all the problems we have with unemployment will disappear. I do not think so. My view is that unemployment is likely to be sticky this time round. In fact, I believe that unemployment rate is not likely to drop significantly over the next few years. Why is it so? Because I firmly believe that cyclical recovery will not solve the unemployment problem. If we were to look at the experience of the other more advanced economies - US, Europe, and so on - most of them went from unemployment to full employment, from full employment to structural unemployment, from structural unemployment to jobless growth. In the case of Singapore, I believe that we may face the same problem of jobless growth for the next few years. Because, firstly, as the Minister has mentioned, some employers are adopting a wait-and-see attitude, so they are not likely to recruit people over the next few months. But, more importantly, because new operations which we are creating in the economy are going to require fewer people, and at the same time the pace of restructuring is likely to continue to remain fast. As a result, we are likely to see a very marginal increase in terms of net job creation over the next few years.”
“Sir, I thank both the Minister and the Senior Parliamentary Secretary for their very comprehensive replies. I beg leave to withdraw my amendment. Amendment, by leave, withdrawn.”
“Yesterday, I agreed fully with what the Minister mentioned, that the Singapore Government is doing a lot to upgrade and retrain the workers through the SDF, SRP, ETF and INTECH. But my concern is that whatever we are doing up till now may not be enough to help our Singaporean workforce to upgrade fast enough to keep in pace with this evolution towards a knowledge-based economy. If we are not able to upgrade our entire workforce fast enough, in five to ten years from now, many of the Singaporean workers are going to become a liability in our economy and a liability in our society. But if we are able to act fast enough and transform as many of them as possible into knowledge workers, they can turn into a national asset and become the source of driving force to push our economy further in a knowledge-based economy. This afternoon I just want to put up a very simple request. In the past, we granted pioneer status, for example, to companies for job creation when we had high unemployment. Later on, we granted pioneer status to companies for their capital investment when we moved into a capital-intensive economy. Later on, we granted pioneer status to companies based on total business spending (TBS) because we wanted to capitalise on the regional market. We want to encourage companies to set up OHQ. In the future, as we move into a knowledge-based economy, since one of our key challenges is to transform our workers into knowledge workers, can we not consider granting pioneer status and investment allowance to companies based on their investment in manpower redevelopment, in the transformation of workers into knowledge workers?”
“Sir, earlier Mr Low Thia Khiang mentioned that if we were to compare the Singapore economy with the Internet stocks, then Singapore has no standard. Personally, I agree with what DPM said. It is not appropriate to compare a company with a national economy. This afternoon, I would like to touch on the topic of long term competitiveness because there is really a difference between a national economy and a company. A company basically goes into business to make money. When the business is good, the money is good, they move into that business sector to make money. When the situation changes, when the business is no good, the climate changes, they can get out of the business and move on to somewhere else. Many companies that were around 20 years ago are not around today. But in the case of a country, a country cannot be opportunistic, a country cannot go into business just because things are good and get out of business and say that these are no longer good. This is because, at the end of the day, the Singapore economy has to continue for many more years to come. Another difference is that in the case of a company, when it moves from one business to another business, it can always downsize the company and retrench all their workers. But in the case of a national economy, as we restructure, as we upgrade our economy, we would have to continue to live with the same work force, the younger ones and the older ones. As long as they are Singaporeans, we will have to travel the journey of economic progress together with them as one united team. In this regard, my concern is this: as we move into a knowledge-based economy in the future, we have to help as many Singaporeans as possible to upgrade and to be transformed into knowledge workers.”
“We will surely find more markets in these areas as we are not moving into unfamiliar grounds. Finally, Mr Speaker, Sir, our two hinterlands - Malaysia and Indonesia - are having both economic and political problems. They are amongst our biggest trading partners but today, trade between them and us has trickled to a low level. It is beyond us to change the outcome of events arising from our neighbours, but whatever happens in both countries affects us. Singaporeans must take an interest in what is happening in Indonesia and Malaysia. A good grasp of their political scenarios would better prepare ourselves to handle the regional situation as it comes. There have been times when our leaders were put to the test, and there will be times when our leaders will again be put to the test. So long as we have been fair in our conduct of regional affairs, we will be able to enjoy respect and honour. We must stand behind our leaders during such times. Sir, I support the Budget.”
“For example, we have to emphasise to our people, as we have been doing, why we put so much money on education and skills training during a recession. Education's total expenditure is $5.72 billion, up 13.6%. Many are still not keen on upgrading and improving their skills. We want them to feel with us. We want them to understand why we do this. We must impress on these Singaporeans that this is to prepare them when the upturn comes. This is good forward planning and I support strongly. We will have to impress on those reluctant Singaporeans that if we prepare well, we will overtake others fast and whatever losses we have suffered during this crisis, we more than make up during a recovery. We must not wait till the recession ends. And not many countries in the world can exploit an economic downturn in this manner. We can because we have the means, the know-how and, most important, the political will. Many years of careful economic policies and strategies can allow us to be in this position, to use the economic downturn as a breather for consolidating and re-examining our economic strategies. We did the same in 1985. We took a critical look at our economic competitiveness and reformed our wage structure and because of this, we find easier acceptance this time when we do our cost cutting measures. We have made many strategic moves in the past. We switched from an entrepot trade to a financial and industrial centre when we found that the entrepot trade which we acted as middlemen cannot sustain. Then we went regional. We wanted an external wing. We were not that successful but never mind, failure is part of life in doing business. Now we may have to go beyond our neighbouring shores, into Europe, America, China, India, etc.”
“Mr Speaker, Sir, in good times, people are more rational, they do not have unemployment, pay cut or CPF cut to cloud their minds and, therefore, they are more prepared to accept our reasons to take in foreigners to increase our talent pool. But today, we need to be more sensitive on the issue. In fact, we must tone down the message. Instead, our emphasis as a Government is to reassure them how we take care of them. Our message to Singaporeans must be clear and loud. We will help Singaporeans to get back the lost jobs. We will take care of their basic needs. We will give support to their children's education by increasing bursaries and scholarships. We will have schemes for our citizens to upgrade their skills training and education and they will get priority over others including PRs. This is a more important priority call than foreign talent. I can understand the rationale and need to inject such talents to our society. I accept and I support this. But many still do not, and especially in this time, such calls make them feel threatened. Bearing in mind that a good number of jobs lost are from the middle management level, I feel that at this juncture, this call for foreign talent might be a bit misplaced. Let us think Singaporeans first. Mr Speaker, Sir, the management of this recession does not mean dishing out rebates but also includes the management of our people's psyche, their fears, their doubts. We must give Singaporeans no quarters as to where our priority lies. We need to give them a sense of security and keep their morale high in order that they will work with us to overcome this crisis. We should not take them for granted.”
“And as the Second Minister for Finance said in an interview given to the press, the Government, if need be, if the recession gets worse, will take more measures. I think this is wise - to err on the side of caution. However, as I said earlier, this budget should be taken together with the earlier measures given, that is, the $10.5 billion package. It will be more balanced. Singaporeans from all walks of life have in a way been affected by the downturn in the economies of the region and Singaporeans are beginning to feel and to face this economic crunch beginning this January because January this year, they see their take-home pay reduced, their CPF contribution cut, and their HDB mortgage loans harder to service. Then there is the prospect of some having to lose their jobs. For most non-HDB dwellers, they worry about their obligations to pay for their house loans, car loans, children's university education fees, hospital bills and for the small businessmen hit by the recession, their bank overdrafts, their workers' salaries and rental for their premises. As a Government, we have to try to respond to their fears and concerns. We cannot solve each and every individual case. However, at the local ground level, most CDCs must have their own recession package to help out and, as far as Bukit Timah CDC is concerned, we are beginning to see more and more such cases of people who cannot pay their utilities bills, kindergarten school fees, flat rentals and of course job requests. I am sure many of us are faced with requests for assistance at our own meet-the-people sessions. Having said that, I now come to a frequently discussed sensitive subject - recruitment of foreign talent.”
“For the coming elections in Indonesia and Malaysia, we can expect more uncertainties. With the uncertain geo-political scene as the background, we have now to take care of our recession. For the second consecutive year, we have a budget deficit and the deficit is growing from $466 million last year to $5 billion this year. A budget deficit would mean having to draw on our reserves which fortunately is not a problem. Last year, we have come up with off-budget measures costing $10.5 billion. Taken together, we can see that it is the Government's intention to tackle the recession through a combination of managing costs, upgrading skills and infrastructure, facilitate access to capital and promote investment, especially knowledge driven industries. To bring relief to companies and individuals, this budget offers some short-term relief to companies and individuals with a 10% tax rebate granted to both categories of taxpayers. There are, included in the budget, tax changes to further stimulate the bond market and fund management industry. These, together with the tax exemption on global OHQs, are part of the continuing drive to reinforce Singapore's competitive position as a centre for financial services and to attract more MNCs into Singapore. With unemployment on the rise and cut in workers' CPF, and salaries in some cases, the 10% rebate on personal income tax and rebates for S&C charges for HDB dwellers as well as the rebates for utilities would be most welcomed by the taxpayers and non-taxpayers. This budget, to many Singaporean businessmen, is a non event and it was reported as such by one of the business writers in the Business Times. As expected, there were not much goodies left for the businessmen. But it is a cautious budget, not too little or not too much.”
“It is sad and worrying too because we now see a change in attitude in Indonesia and some of their leaders are saying things about us which were never said before. I would not want to repeat what was said because it serves no good purpose. However, the Straits Times Editorial of 3rd March 1999, headlined "Indonesia Tests Singapore", reflects the feelings of many Singaporeans. I would like to quote one of the paragraphs in the text: "Indonesia and Singapore remain friends. It is to their mutual interest that this be the case. But friendship must not be construed as weakness. Singapore does no more than state a fact of international life when it reiterates the inherent equality that must continue to underpin relations between the two countries. Indonesians must understand that this is non-negotiable for Singaporeans". As political events unfold in Indonesia, we are seeing more attitudinal changes towards us, most of it so far not in our favour. We must therefore be alert, remain calm and react rationally and cautiously. The sad part of it all will be the slowing of trade, the curtailing of investments into this region, the reduction in tourism and the breakdown of business links. This is a sad time for ASEAN, also Singapore. Having said that, we want to wish Indonesia well so that we can avoid further social unrest and turmoil and enjoy peace. Peace leads to economic prosperity for all. Malaysia's closure of Clob has affected many Singaporean investors. Many Singaporeans lost money. Capital control, the Anwar trial and a changing Malaysian political scene will bring problems for our businessmen. We hope that capital control measures will not prevent tourism between the two countries, let alone doing business there.”
“This has reinforced the tendency amongst Singaporeans towards being an employee rather than an entrepreneur or a shareholder. If this trend is allowed to persist over a prolonged period of time, the paucity of home-grown entrepreneurship can only be more pronounced. To nurture entrepreneurship, I believe that the Government should drive the following initiatives: (a) to define and promote the role of venture capital among the SMEs; help educate the owners and facilitate the matching process; (b) enlarge the investor base beyond the Economic Development Board (EDB), and beyond electronics. This may entail working with parties in the private sector; and (c) to design incentives for such investments, such as tax concessions. On that note, Sir, I support the financial policy of the Minister. Dr Tan Cheng Bock (Ayer Rajah): Mr Speaker, Sir, Singapore is going through a very difficult and momentous period of our history. Today, we face two issues: (1) economic; and (2) geo-political. In the economic front, we are in recession while on the geo-political front, we are facing regional political uncertainties. This budget is packaged in the midst of this economic recession and political uncertainties of the region. If the problem is pure economics as in 1985, it is easier, because we can find answers to economic problems. But today, because it is mixed with politics, there are too many imponderables and uncertainties. Thus, it was only until recently that we were able to move in and out of Indonesia, Malaysia and Thailand without giving it a second thought to safety and cost. But today, we see a different Malaysia, a different Indonesia, and we no longer visit their countries so frequently, as we would like to.”
“Sir, I would now like to focus on the implications of some of these changes, particularly for the small and medium enterprises (or SMEs) in the short-term, and entrepreneurship in the longer term. As banks consolidate and streamline efficiencies, in the current climate, there may be a tendency to move in favour of servicing the bigger customers. No doubt, some banks have actually defined the middle market as a niche segment but it is highly conceivable that smaller companies may wind up being under-served or poorly-served by the restructured banking system. Currently, the SMEs are already feeling the heat of a cashflow squeeze brought about by a credit crunch. Many are lamenting the tight, if not fast disappearing, credit terms. Whilst we can logically expect banks to exercise prudence at this time, so as to minimise the level of non-performing loans, many SMEs are concerned that given the massive restructuring, their traditional bankers may have abandoned them altogether. Sir, perhaps some of these fears may be exaggerated but this raises an important question. Is it time to revisit the need to provide some form of development financing, similar to the role played by the Development Bank of Singapore in our formative years of growth? Although various assistance schemes exist, they tend to cater mainly to manufacturing of electronics or technology. Entrepreneurship frequently gets tripped up by a lack of funds. Beyond exploring the question of a sustenance of the traditional bank credit or availability of development and financing, more needs to be done. Sir, in Singapore, multi-national corporations have hitherto been a substantial employer, often offering challenging jobs on attractive terms.”
“Investors and Singaporeans alike would have noted that the cumulative deficits for FY98 and FY99 will draw down the bulk of the FY97 reserves, which have provided adequate cushion for pushing ahead with long-term plans on the one hand and extending short-term assistance during this crisis on the other. As a result, I do not think investors are asking how we are going to fund these deficits. The planned 10% jump in development expenditure to $13.9 billion is the strongest demonstration of a commitment towards building economic capabilities in spite of the current regional crisis. In the context of a depressed economic region, this is quite a luxury. Sir, this crisis has triggered many structural changes within the region, not least within Singapore, and within the financial sector. Many big corporations have undertaken massive restructuring towards becoming leaner and meaner organisations. In the process, many have no choice but to divest non-core businesses or write off substantial sums. Deserving businesses caught in a credit crunch have been acquired by investors frequently of foreign origin. There is a quest towards streamlining operations for better economies of scale or towards strengthening capitalisation to better position for a fast-changing economic landscape. These have inspired several mergers of corporations. The Monetary Authority of Singapore is spearheading a bold, but necessary, blueprint for changes to the financial sector in Singapore. We aim ultimately to be a financial hub that involves major players offering a whole gamut of financial services. This has already spurred the merging of several banks. There is no doubt that the ensuing consolidation of strength will facilitate the capturing of a bigger role in domestic and regional banking.”