Low Yen Ling
Singapore
“I want to thank Member Cai Yinzhou for the clarification. As far as his historic district is concerned, I want to assure him that the new Place-making Project Office that comes under the Inter-agency Task Force does indeed not only serve Kampong Gelam, Little India, but also Chinatown.”
“A "we first" society needs an active citizenry working together to realise it. When corporates, community groups, and individuals come together, we will be able to create a harmonious, united and progressive home and society that belong to us.”
“I want to thank Member Mr Andre Low. In my earlier speech, I have also responded very succinctly. I want to assure him, as well as Mr Melvin Yong, I think you touch on very similar issues, and you probably heard from the political office holders speaking at the Ministry of Home Affairs COS about their tough stance against scams.”
“Finally, Government agencies, not just MTI, EDB and Enterprise Singapore, under the leadership of Deputy Prime Minister Gan Kim Yong, will continue to create a pro-business, pro-people environment, building a business environment based on integrity.”
“— family business, as well as the other one on TACs. On family businesses, I want to assure him that earlier on, when we mentioned that we raised the support level for SMEs and non-SMEs and indeed, many of our multi-generational family businesses are in that category.”
“And since the Member asked, price obviously is an important indicator. Another example is if CCS observes the behaviour of the organisations and if we pick up signals that they are coordinating the behaviour to raise prices, to reduce quality, to reduce output, to reduce innovation, CCS will step in.”
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“Many Members spoke during your cuts about AI. With the rise of technologies, like Generative AI, digitalisation has become more urgent and dynamic than ever before. Currently, only 4% of businesses use AI and machine learning. We want to share more about how we are helping our SMEs to adopt GenAI and I want to assure the Members, Mr Derrick Goh, Mr Keith Chua, Ms Mariam Jaafar and Mr Neil Parekh, that MTI will support businesses in the next lap of enterprise digitalisation. We encourage businesses to start exploring and using AI. Interested firms can tap on Enterprise Singapore and IMDA's newly-launched Generative AI Sandbox for SMEs to gain hands-on experience with GenAI. The Sandbox will feature affordable and easy-to-use solutions applicable to a broad spectrum of sectors. I will cite two ways they can use it. For example, our SMEs can use marketing and sales solutions. This will really them to grow their topline and bottom-line. They can use GenAI to help them use marketing and sales solutions to generate unique content, such as customised emails and product images for their marketing campaigns. Another area is customer engagement solutions, which can also allow the SMEs to engage customers on a much larger scale better. These GenAI-powered chatbots can simplify the information search process and then allow businesses to free up their resources and become more productive, so they can allow their staff to focus on higher value-add work, serve customers and maybe allow them to focus on the business development kind of functions. We want to encourage our SMEs to participate in the Sandbox and get a head start in using GenAI solutions. Chairman, sectoral transformation, the green transition and seizing digital opportunities.”
“In addition, to help businesses pursue sustainability-related collaborations while maintaining healthy competition, the Competition and Consumer Commission of Singapore (CCCS) has developed an Environmental Sustainability Collaboration Guidance Note. Sir, for businesses to be successfully sustainable, I think all of us in the House will agree workers must also keep pace. Hence, we are boosting our support for the workforce to upskill and reskill to seize new opportunities in the green economy. Last year, we set up the Green Skills Committee to develop skills and training programmes aimed at fostering a low-carbon economy. This year, we will continue to build on two focus areas: (a) sustainability reporting; and (b) energy. To develop skills in sustainability reporting, we will provide salary support to sustainability reporting service providers to train interns. This year, we will launch training programmes for the energy sector to address clean energy skills gaps identified by the sector. Minister Gan spoke about how Singapore is establishing a vibrant carbon services and trading ecosystem. I am glad to announce that EDB and Enterprise Singapore are working with the National University of Singapore (NUS) and Nanyang Technological University (NTU) to develop training programmes in carbon management, services and trading. These courses will certainly help workers capture their potential in this growth sector. 3.00 pm Chairman, another emerging area which offers exciting prospects is the digital economy. Singapore companies have made good progress in digitalisation. In 2022, digital technology adoption by SMEs reached 94%, a 20% jump from 2018. Many of us will agree that the COVID-19 pandemic has really catalysed the adoption of digital tools and technology.”
“Finally, we will extend the Enterprise Financing Scheme (Green) or EFS (Green) till 31 March 2026 and expand its scope to cover companies adopting green solutions. As Mr Edward Chia pointed out, data centres and chip manufacturers would do well to use schemes like the EFS (Green) to reduce their emissions. A company that has benefited from EFS (Green) is Koollogix. They provide cooling technologies for data centres. It tapped into this scheme to transform and complete a new lab facility. This, together with other transformation efforts, led to a tenfold increase in their revenue just within two years. Sir, as the world embraces sustainable goals and practices, customers and investors will increasingly expect businesses to be more transparent about their carbon footprint. The Ministry of Finance has announced that climate-related disclosures will be mandated for large companies in Singapore in the coming years. Therefore, businesses need capabilities and resources to track and report their carbon footprint. To this end, we will provide funding support of up to 30% to large companies to kickstart their sustainability reporting journey. While smaller companies will not be affected by the new regulations, sustainability reporting will help them to stay relevant as disclosure of carbon footprint data becomes commonplace. Mr Derrick Goh would be pleased to know that we will provide funding support of up to 70% and work closely with carbon service providers to offer a basic sustainability reporting package for small businesses. This will complement the pre-scoped carbon accounting solutions offered under the Infocomm Media Development Authority's (IMDA) Advanced Digital Solutions Scheme.”
“In 2022, we launched the EEG to help our enterprises defray rising energy costs. Since then, Mr Edward Chia and Mr Mark Lee would be glad to know that almost 2,000 companies have used EEG. For example, CF F&B, a drink stall in a food court. I want to give Members examples like that so that you know that EEG is not just used by bigger SMEs but can be used by heartland merchants or even a food stall in a food court. So, CF F&B is a drink stall in a food court. They used the grant to procure three energy-efficient water heaters that led to cost savings of about 80%, 80% cost savings. We will help more businesses invest in energy-efficient equipment. From 1 April, local food services, retail and manufacturing companies can continue to receive enhanced support of up to 70%. EEG will be open to other industries, such as maritime, construction and data centres by the end of this year. MTI is working closely with the industry to onboard additional sectors as necessary. We will also streamline the application process by consolidating all the EEG applications from different sectors on the Business Grants Portal. EEG complements existing schemes like the Enterprise Sustainability Programme (ESP) to provide holistic end-to-end support. For example, companies can tap into ESP for consultancy support to pinpoint areas for efficiency gains before applying to buy the energy-efficient equipment under EEG. Secondly, we will enhance the existing Resource Efficiency Grant for Emissions (REGE) by lowering the qualifying carbon abatement threshold from 500 tonnes to 250 tonnes per annum. This will enable more businesses to tap into the grant for their projects.”
“Through this series of activities, Singaporeans have gained a deeper understanding of the history and unique aspects of each neighbourhood, while neighbourhood businesses have gained confidence in building their brands, using technology to expand their customer base, and even expanding their businesses overseas. For example, Bee Choo Origin, which expanded from one outlet in Ang Mo Kio to 11 overseas markets, providing the company with new business and development opportunities. In addition to projects led by the Government, business associations and Chambers of Commerce, our neighbourhoods, businesses have also taken the initiative to organise events. These activities transform the ordinary into the extraordinary, bringing new vitality to the neighbourhood community. To encourage more of such initiatives, MTI has announced a Heartland Enterprise Placemaking Grant to provide eligible businesses with grants of up to $10,000 to support them in creating unique experiences for the community, driving the development of the neighbourhood economy. Through this series of new initiatives and grants, we hope to encourage SMEs, Micro, Small and Medium Enterprises, and neighbourhood businesses to unleash their creativity, seize the opportunities for economic transformation and drive sustainable development for Singapore. (In English): Chairman, the green transition presents both opportunities and challenges to enterprises. I want to assure Ms He Ting Ru and Mr Neil Parekh that the Government will continue to deepen and widen our support for businesses through the different stages of their sustainability journey. First, we are enhancing our existing support to help businesses to become more sustainable through the Energy Efficiency Grant (EEG).”
“We will launch the Heartland Enterprise Placemaking Grant, or 邻里企业社区营造计划, to support our heartland enterprises in creating delightful experiences in the housing estates. We will make available funding of up to $10,000 for eligible heartland enterprises to organise placemaking projects. I am sure many good ideas are out there waiting to be explored. So, we want to encourage our heartland enterprises to come forward with exciting proposals. Let us look forward to new possibilities that we can co-curate together. Chairman, in Mandarin, please. (In Mandarin): [Please refer to Vernacular Speech.] Chairman, our SMEs are the backbone of our economy. SMEs account for 99% of the total number of registered companies in Singapore, employing up to 70% of the workforce, bringing dynamism and vitality to our economy. Our neighbourhood businesses, besides playing an important role in the economy, also serve as emotional hubs for the community, carrying many of our growing-up memories and enhancing the cohesion of our neighbourhoods. Therefore, MTI is committed to supporting our SMEs and neighbourhood businesses, equipping them with the capabilities to address the challenges of the future economy. This includes various plans and measures to assist SMEs in their transformation as well as to revitalise neighbourhood businesses, injecting more vitality into these communities. Over the past three years, we have supported the Federation of Merchants’ Association Singapore and Heartland Enterprise Centre Singapore in organising over 60 neighbourhood placemaking activities, including the annual Heartlands Festival. During these events, some businesses reported a one-third increase in footfall and a 20% growth in sales.”
“Last October, Tampines West Merchant Association worked with the Singapore Retailers Association (SRA) to organise Wunderground. This was a pop-up event featuring collaborations between urban city lifestyle brands. The event at the heartlands attracted more than 30,000 visitors in just 10 days, an average of 3,000 a day. Residents can look forward to more such events in the future. In the past three years, we have ramped up our efforts to transform and to revitalise the heartlands. We supported the Federation of Merchant Associations Singapore (FMAS) and Heartland Enterprise Centre Singapore (HECS) to hold more than 60 placemaking activities all over Singapore in different neighbourhood centres, including the three successful runs of the Heartland Festival. Through these campaigns, businesses have reported a one-third increase in footfall and a 20% increase in sales. Collectively, this initiative strengthens each precinct's identity and allows businesses to differentiate their products and also enhance their value proposition. On the ground, we are glad that heartland shops and merchants are stepping up with fresh ideas to co-curate events to make our neighbourhoods more exciting and vibrant. For example, Bold at Work is a co-working space provider and a youth engagement consultant in Jurong East. They turned parking lots in Yuhua into an interesting space for live music performance, carnival games and workshop. That, in turn, drew a lot of people to that whole place, also catalysing demand for the products and services of the heartland shops there. We will encourage more creative ways to reach out to audiences and customers in the heartland.”
“My MTI colleagues have placed many of their interesting puzzles and toys in the Members' room because we are keenly aware that after one whole week of Budget and COS debates, Members might want to tinker with this and exercise different parts of your brain muscles. Another interesting example is Tea Dojo. Now, let me show Members. Tea Dojo offers freshly brewed, healthier, syrup-free bubble tea. I alerted Minister Ong Ye Kung and the Health Promotion Board that I am going to do this. The nutri grade of this oolong tea, the peach oolong tea, is grade A. Today, we brought three flavours: peach oolong as well as grape boba, and the third flavour is mango pomelo. We have prepared many of these drinks and after we have the clarification time, we can all have our break soon and Members can choose from any of the three flavours. Mr Chairman, you work very hard. I have set aside two cups for you in your office and, if you need more, you can let us know. So, this is our freshly brewed, healthier, syrup-free bubble tea made from a specially invented tea machine. Many of our heartland enterprises are coming up with novel concepts, business models and revenue models. Besides the retail transformation in Ang Mo Kio, we will pilot two heartland rejuvenation projects in Bukit Gombak and Tampines West. Bukit Gombak Neighbourhood Centre will be turned into a Modern Heritage Heartland Hub or 邻里特色文化基地. From 5 to 7 April next month, Bukit Gombak will hold the Rasa Gombak Day Out, a first of its kind festival that will showcase the history and heritage of the popular neighbourhood centre. Over at the other side of the island, Tampines West Neighbourhood Centre will be transformed into a Heartland Events Hub, or 新兴社区活动站.”
“The retail sector is evolving rapidly, with the growth of technology, e-commerce and fast-changing consumer preferences. The Government is committed to supporting the retail sector and businesses to transform, innovate and capture opportunities. I think Members will remember last year, during the MTI-COS debate, I announced the Sprout@AMK initiative – the Chinese name is 宏茂桥创新天地, or to introduce fresh retail concepts to heartlanders in Ang Mo Kio Town Centre. I am happy to share that these novel retail kiosks will be rolled out very soon. Alongside this, we also welcome the first batch of retailers under the Heartland Innovation and Transformation (HIT) Programme, or 创新在邻里计划, who will be unveiling their products in Ang Mo Kio. I am very heartened that some of these retailers from these new waves of shops have come up with concepts and innovative products for better health and well-being to meet the needs of the society. I thought I would give Members a preview of some of these novel concepts. Every year, I will bring something representing the heartland enterprises. For example, this fun puzzle. This company is called Project Enigma, and they use 3D printing to produce this puzzle and many other puzzles as well as toys to improve people's learning and health. Besides their retail kiosk in Ang Mo Kio, Project Enigma has started a puzzle museum and library at Henderson Community Club (CC) and it is also running community workshops. So, they do not just confine their presence to their shop. They went out beyond that to the CCs to do events to raise awareness.”
“MTI will work closely with the industry and ASMI to enhance the sector's attractiveness and encourage more M&OE companies to offer industry scholarships. I am glad that together with our agencies, ASMI has developed a new Industry Plan that sets out the strategies to enable the businesses to seize new green growth opportunities and get equipped for longer-term transformation. ASMI will share their plans in the next few months. Sir, over in the heartlands, we are see encouraging signs of growing business transformation. Ms Foo Mee Har, Mr Saktiandi Supaat and Mr Shawn Huang they spoke very passionately about this topic. I want to assure them that our heartland enterprises are making good progress in digitalisation and retail innovation. Today, more than 17,000 heartland enterprises have adopted e-payment solutions. More than nine in 10. Today, more than 12,000 heartland enterprises now have online presence, about two-third. Those who have embraced digital transformation have gained a bigger customer base, beyond their neighbourhoods, beyond footfall, to even online customers and some shops have even attracted overseas customers as well. 2.45 pm Bee Choo Origin, a hair product company that started in Ang Mo Kio as a hair salon in 2007, is a good example. Its owner, Mdm Cheah Bee Chew, who began as a home-based hairdresser, grew her humble salon into a global hair treatment company. It began selling its products online in 2020, again due to COVID-19, and then saw their revenue rise by 25% in just three years. Today, Bee Choo Origin has 170 stores spanning 11 markets and is entering its next lap of growth under the leadership of Mdm Cheah's 34-year-old daughter, Estee.”
“This is comparable to the environmental impact of roughly 18,000 one-way road trips from Singapore to Bangkok. That is the impact of three electric ferries. In the next five years, MTI will support the M&OE industry's transformation with a $100-million Support Package for enterprise and workforce transformation. Companies can raise their productivity with funding support from the Productivity Solutions Grant (PSG) and also strengthen their new capabilities with the help of the Enterprise Development Grant (EDG). Besides offering near-term transitional support for M&OE companies to fulfil their pre-committed contract deliveries, we will refresh the M&OE Industry Digital Plan to encourage greater adoption of sector-specific productivity-boosting digital solutions as well. To equip our M&OE workers for the future, Workforce Singapore and Enterprise Singapore will work together and develop an M&OE Jobs Transformation Map that charts emerging career pathways and highlights capability-building opportunities. In addition, new career opportunities are being identified. The Association of Singapore Marine and Offshore Energy Industries (ASMI), Workforce Singapore and Enterprise Singapore will work together and launch the Marine Digitalisation Champion Programme later this year. This will equip Singaporeans with fresh digital skills for higher-value work in the M&OE sector. Furthermore, Workforce Singapore will expand its Career Conversion Programme to include offshore wind to develop local, mid-career talents for offshore wind farm development and operations. Crucially, we will lay the foundation for a strong talent pipeline by nurturing interest in M&OE careers amongst our youth.”
“Finally, I will update you all on how we will deepen our partnerships with TACs, as mentioned by many Members in their cuts, to drive industry transformation plans and efforts. Sir, to help Singapore companies and our industries future-proof themselves and transform, the Government has rolled out 23 Industry Transformation Maps (ITMs) and refreshed the plans for 2025. These efforts cover strategic areas such as innovation, digitalisation, jobs and skills, internationalisation, productivity and sustainability. Many sectors have shown progress in their roadmap and we will not let up our efforts to support their transformation. The M&OE sector, as Minister Gan has mentioned earlier, is undergoing substantial changes. I agree with Mr Shawn Huang that this traditionally labour-intensive sector will need to transform to stay competitive. To this end, we aim to turbocharge the M&OE sector to capture emerging opportunities in areas, like offshore wind and maritime decarbonisation. Today, several trailblazers in the sector have pivoted their businesses to serve in these growing markets that I mentioned. I will give you a quick example. One company that really stands out for raising their green capabilities is Penguin International. Now, this is a homegrown shipbuilder, homegrown ship owner and one of the world's largest aluminium shipbuilders. Penguin International has spent the past few years future-proofing themselves, building up their in-house capabilities in designing, constructing and operating green vessels. Currently, the company is working with Shell to build and operate three electric ferries. These eco-friendly ferries are expected to cut carbon dioxide emissions by about 6,000 tonnes annually. How much is 6,000 tonnes?”
“Chairman, the world we face today is vastly different from what it used to be. Earlier, Minister Gan Kim Yong shared how the global uncertainties have strained our small and open economy. It is no longer business as usual. Change, continual transformation and innovation form the present order of things. To thrive in the new normal, we need a positive mindset to embrace transformation. Change is always challenging. We know that. However, if you recall, during the COVID-19 pandemic, our businesses managed to overcome the resistance to change, including the heartland enterprises. I will touch on that later. Our enterprises have shown the ability to transform to secure a better future. I want to assure all the Members that MTI and our economic agencies, the Government is committed to supporting our businesses' transformation journey for the long haul. Today, I will elaborate on how the Government is ramping up critical support for companies to transform and thrive. As highlighted earlier by Mr Shawn Huang, we are determined to help businesses seize fresh opportunities in new growth areas, such as sustainability and digitalisation. I will also delve into how, for instance, we will drive sectoral transformation for the M&OE industry as mentioned by Minister Gan Kim Yong earlier; and continue the momentum of positive change in our heartland enterprises. I will also share how the Government will help accelerate the green transition of our Singapore enterprises to benefit and to future-proof our business. In addition, I will touch on how we will help companies capture emerging digital opportunities for their next bound of growth.”
“Enterprise Singapore has a very extensive network and when I last looked at the numbers, we have about 37 overseas centres in 23 countries.”
“Enterprise Singapore has a very extensive network and when I last looked at the numbers, we have about 37 overseas centres in 21 cities. [Please refer to "Supporting Singaporean Businesses to Navigate Changing Economic and Trade Opportunities in Region", Official Report, 28 February 2024, Vol 95, Issue 126, Oral Answers to Questions section.] [(proc text) Written statement by Ms Low Yen Ling circulated with leave of the Speaker in accordance with Standing Order No 29(5): (proc text)] I wish to make the following factual correction to the reply given for Parliamentary Question No 6 in the Order Paper for the Sitting of 28 February 2024. My reply should read as follows:”
“Mr Speaker, I want to thank the Member Assoc Prof Jamus Lim for his question. We want to say that despite the current economic uncertainties and increasingly challenging trade environment, what we want to share with our Singapore companies is: businesses should continue to seek opportunities, in particular, regionally, in a few areas. Specific areas of growing demand, specific technologies and also areas with upside potential. China is facing challenges, as it was also mentioned in Mr Yip's Parliamentary Question, but it is also expected to be a major engine of growth, given its large and growing consumer market, its increasingly very-skilled workforce and also rapid technological development. Enterprise Singapore has a very extensive network and when I last looked at the numbers, we have about 37 overseas centres in 21 cities. [Please refer to "Clarification by Minister of State for Trade and Industry", Official Report, 28 February 2024, Vol 95, Issue 126, Correction By Written Statement section.] All hands are on deck to support our companies, whether they are looking into expanding regionally, including into China, India or into US and Europe; or even into far-flung areas, like Africa and the Middle East.”
“Allow me to elaborate how the digital economy will be a potential driver, key driver of grow for Singapore companies looking at the China market. China's digital economy is indeed the world's second largest and has nurtured many innovative companies. At the same time, Singapore's digital economy is also very significant and we have experienced substantial growth in recent years. For example, in 2022, our digital economy contributed 17.3% of Singapore's gross domestic product (GDP). On the Member's second supplementary question on the digital economy, I recall that the Minister for Trade and Industry Mr Gan Kim Yong signed an MOU on digital economy with China's Minister of Commerce Mr Wang Wentao, 商务部部长, 王文涛部长. Both leaders have signed it and launched a digital economy working group to strengthen the cooperation in digital trade and data flows. Other than the digital economy, another potential area is the green economy. On the green economy, we see that China and Singapore can cooperate on areas of complementary interests, including green trade, green investment, green services, renewable energy and carbon markets.”
“Thank you, Sir. I want to thank the Member Mr Yip Hon Weng for his two supplementary questions. Singapore and China are long-standing partners. Our bilateral ties are anchored on very frequent high-level exchanges, growing people-to-people ties and robust economic ties. I recall just last year alone, I mounted about seven work trips to China – some in support of Singapore Business Federation (SBF), bringing delegation of small and medium-sized enterprises (SMEs) to the 东博会, which is the China-ASEAN Expo in September. I recall SBF also led a huge delegation for 进博会, which is the Chinese International Import Expo (CIIE) in November. Members in the House will recall, about one year ago, during Prime Minister Lee Hsien Loong's visit to China in March – first to Hainan and then to Beijing; both him and President Xi Jinping announced the upgrade in bilateral relations to an "all-around, high-quality, future-oriented partnership". In Mandarin, "全方位高质量的前瞻性的伙伴关系." On the first supplementary question about the recent JCBC, which took place about three months ago, in the first week of December, Deputy Prime Minister Lawrence Wong brought a huge delegation. I had the privilege to join him in this delegation as well. He co-chaired the 19th meeting of the Joint Council for Bilateral Cooperation (JCBC) with China's Vice-Premier Ding Xuexiang. And during the JCBC meeting, we welcomed 24 deliverables, covering various areas: trade, renewable energy, environment, connectivity, finance, digital economy – cited by Mr Yip – and people-to-people exchanges. All these deliverables offer fresh opportunities and will support our businesses and create more jobs for our people. The Member asked about the digital economy.”
“Mr Speaker, Sir, China remains a vital key market for Singapore businesses. In 2023, China was Singapore's largest trading partner and top investment destination. China's long-term economic outlook remains positive due to its large and growing consumer market, skilled workforce and rapid technological developments. To tap into the opportunities in China, Singapore has upgraded the Singapore-China Free Trade Agreement (FTA) to offer companies better market access for investments and services. We have also broadened our engagements with China, including signing memoranda of understanding (MOUs) on Digital Economy, Green Economy and E-Commerce Cooperation. In addition, Singapore is strengthening its regional economic integration with China through the Regional Comprehensive Economic Partnership and the ASEAN-China Free Trade Area, the upgrade of which is currently under negotiation. To navigate the evolving business environment and seize fresh opportunities, Singapore firms can tap on Enterprise Singapore's extensive network of overseas centres and the two Singapore Enterprise Centres in Shanghai and Chengdu operated by the Singapore Chinese Chamber of Commerce and Industry under the Global Connect initiative. In addition, Enterprise Singapore manages schemes, such as the Market Readiness Assistance grant, which helps our companies expand into new markets by defraying the costs of overseas market promotion, business development and set up. Business owners can also visit the GoBusiness portal for more information on the Government schemes.”
“19 million dollars to 245 charities. And I recall one of the top charities that received the most donation is Children's Cancer Foundation – it received an aggregate donation of about $80,000. So, even as the CDC Vouchers Scheme is designed to support all Singaporean households to defray their household expenses, their expenses on daily necessities and essential services, I think it has also served a secondary purpose of doing good, especially for Singaporeans who want to donate their CDC vouchers. The top three charity sectors that received the highest donation amounts for the 2021 to 2022 vouchers, are, first, the healthcare-related charities. I cited Children's Cancer Foundation. The second category is the families and children's charities; and the third category is the youth and children's charities.”
“But we heard feedback from Singaporean households, especially in 2022. The CDC Vouchers donation scheme was started then because we received feedback from Singaporeans who wished to donate their unused CDC vouchers to help others in need. Because of that, we started concerted efforts to roll out these options to Singaporeans. The number of charities has increased steadily since we started this scheme in December 2022. Back then, the total number of participating charities was about 270. As of today, 327 charities are on board and that represents about a 20% increase in participating charities. We want to welcome more to come onboard. They cover a wide array of causes. They champion various causes, community and social causes, like environment sustainability, animal welfare, arts and heritage, children and youth, the migrant community, and persons with disabilities. I must also clarify that these participating charities are Institutions of Public Character. The Member also asked for an update on the number of the 2023 vouchers. I would like to inform him that the numbers for the donation of 2023 vouchers are yet to be released because they are being collated and checked across the different causes and recipient charities. I want to assure him that we will certainly share the number in due course and encourage other participating charities to come on board the donation scheme. The CDC will give the respective charities in the CDC Voucher donation scheme the cash equivalent of the CDC vouchers 2023 that are donated to them. Any unspent and any undonated vouchers will have to be returned to the Government. Allow me to recap a little for Mr Saktiandi Supaat. For the earlier tranche of 2021 and 2022 CDC vouchers, 9,880 households donated close to $1.”
“Mr Speaker, I want to thank the Member, Mr Saktiandi Supaat, for the two supplementary questions. In my main reply, I mentioned that, in terms of the claim rate for 2023, it is the highest claim rate at 97.7%. But we always strive to improve. As the Member Mr Saktiandi Supaat mentioned, we are very grateful that the CDC Vouchers Scheme has been widely used and well-received by Singaporean households. Indeed, coincidentally, today is 6 February. It has been about a month since Deputy Prime Minister Lawrence Wong has launched the 2024 CDC Vouchers Scheme. So, allow me to just give an update. It has only been a month, and we all know that Singapore households have a whole year to claim and use the vouchers. But do allow me to give an interim update as of 6 February. As of today, 1.208 million Singaporean household have claimed the 2024 CDC vouchers. This represent 95% of all Singaporean households, that is, 95% of the 1.27 million Singaporean households. As of 6 February, more than $255 million of the claimed vouchers have been spent. This represents 42% of the claimed vouchers. I can give a further breakdown, but it is really interim because it has only been a month. Of the $255 million, $99 million was spent at participating merchants and hawkers, while the remaining $156 million had been spent at the participating supermarkets, probably because of the promotion campaigns that had been rolled out by the supermarkets to support all Singaporean households to use the vouchers to defray their household expenses. For the second supplementary question on the donation, allow me to give some background. The main objective of the CDC Vouchers Scheme, as directed by the Government to us, is to support Singaporean households to use this to defray their household expenses.”
“So, Mr Speaker, Sir, we are standing on a solid foundation to develop our creative economy to greater heights. Since I have 30 seconds left, I have to pick and choose. Our arts and culture landscape has really come a long way. We will continue to strive and make strides to develop our arts workforce, create diversified spaces for the arts, provide funding support and grow discerning audiences. Together with my colleagues at MCCY and NAC, we are committed to ensuring that the arts thrive and blossom in Singapore. I want to work with Ms Chandradas and the sector on this. Through the power of the arts, we can bring our people together. We can inspire creativity and innovation and enrich lives. Together, let us grow a vibrant arts and culture ecosystem to enhance our creative economy, deepen our shared identity and make Singapore a distinctive city and home we love. [(proc text) Question put, and agreed to. (proc text)] [(proc text) Resolved, "That Parliament do now adjourn." (proc text)] Adjourned accordingly at 8.10 pm.”
“It aims to drive audience attendance and enhance the accessibility of Singapore's arts and culture. This initiative is led by NAC, with the support of the National Heritage Board, the Arts House Limited, National Gallery Singapore and Esplanade. More than 700 events from the arts community since September have enjoyed a boost in marketing since its launch and we are working to increase its local as well as international reach in the coming months through strategic partnerships. For example, Members of the House can look forward to catching up on our arts news when you take the SMRT trains or when you catch a Singapore Airlines flight. It is on them. And we want to thank all our partners for playing a role in broadening the reach of the arts in and beyond Singapore.”
“We will continue to foster a breadth of private sector arts partnerships to nurture a culture of giving to the arts. In 2021, we introduced the stART fund to catalyse support for developing organisational capabilities and programmes in smaller arts organisations. Since then, more than $1 million from the private sector has been disbursed to 31 arts organisations. Because of these generous contributions, we can support efforts such as Superhero Me's "One-on-One Mentorship to Market" programme. This is a programme that really tugs at the heartstring of a lot of people, because this fosters inclusion through the arts by partnering children with special needs with other children. The stART fund alleviated the concerns of Superhero Me organisers regarding startup costs, allowing them to quickly focus on enabling children with special needs to participate in artmaking and showcasing their works at the 2022 Singapore Writers Festival. Last but not least, Ms Chandradas has highlighted that our creative economy needs audiences to thrive. So, it is really about audience development. Since the pandemic, new dynamics have emerged to reshape the relationship between artists and their audiences, for example, the change in consumption patterns from in-person attendance to hybrid platforms. To address this evolving landscape, it is crucial to understand the changes in audience preferences to regain audiences and to grow paying audiences. In this regard, we agree with Ms Chandradas' observation that there is a need to educate and, in fact, cultivate our audience. To that end, we recently launched the beta version of Catch.sg. I hope Ms Chandradas has checked it out. This is a one-stop digital platform aggregating arts and culture content in Singapore.”
“NAC also has a mix of small- and medium-sized venues for both creation and presentation purposes. We also look forward to the development of Kampong Java and, Ms Chandradas mentioned earlier, 45 Armenian Street, two work-in-progress spaces identified for artistic incubation, multidisciplinary experimentation and interdisciplinary collaboration. These new spaces are really part of our ongoing efforts to provide artists and audiences with various facilities and exciting opportunities to engage with the arts. They complement and enhance our arts scene, providing vibrant avenues and adding attractive aesthetics to our city. Third, Ms Chandradas talked about funding. I must also talk about that. To boost the development of our creative economy, we have injected strategic funds and rolled out targeted initiatives to support the growth of our arts and culture sector. Ms Chandradas will remember the Arts and Culture Strategic Review in 2013, the CMF in 2014. In fact, its $150 million top-up just last year, as well as the Arts and Culture Resilience Package in 2020, have all been instrumental in fortifying our arts and culture sector. I want to assure Ms Chandradas and the House that MCCY and NAC will not let up our efforts in supporting the development of our arts practitioners and organisations. From 2019 to 2023, NAC supported the sector with nearly $100 million in various grant support. Looking ahead, we will find opportunities to support areas that reap synergies across the cultural as well as the creative sectors, strengthening the value proposition for the arts within the broader creative economy. Beyond the Government grants, private sector giving and participation are, indeed, vital for a vibrant arts and culture landscape.”
“Looking ahead, I want to assure Ms Chandradas that the Government will certainly continue to support arts SEPs, strengthening their continuous education and training while providing different pathways for skills development and acquisition. Because by fostering a culture of lifelong learning and providing avenues for skills enhancement, we seek to empower our arts professionals to navigate their career landscape successfully. Second, we are continuing to expand our arts infrastructure beyond presentation purposes, diversifying the spaces for artists and creatives to incubate, to experiment and to collaborate. Twenty years after we opened Esplanade Theatres on the Bay, we continue adding to Singapore's portfolio of first-rate performance and presentation spaces. In fact, just last year, we inaugurated the Singtel Waterfront Theatre, a state-of-the-art venue with the grandeur and the technical capabilities to showcase our artists' talents on an international scale. We also added the Singapore Art Museum (SAM) at Tanjong Pagar Distripark (TPD) to the growing pool of arts spaces. This former industrial warehouse has really become a unique location for art showcases. Because of the voluminous gallery spaces accorded at TPD for the Singapore Biennale 2022, SAM was able to commission Singaporean artist Ong Kian Peng to develop an immersive audio-visual piece titled "The Viscous Sea", where viewers could experience the impact of climate change as they walk around the large-scale installation. I think this is really quite precious in Singapore. Today, under the Urban Redevelopment Authority's (URA) Community/Sports Facilities Scheme, we have seven co-located arts groups in commercial spaces.”
“With structured assistance, SEPs can better navigate their career path and acquire resilience, work experience and skills. Just as supporting capability development in artistic excellence is always a priority, supporting the holistic growth of our arts practitioners is also critical. Four years ago, in 2019, we launched the Arts Resource Hub (ARH) after very extensive consultations with our arts and culture practitioners. The ARH aims to help independent arts practitioners unlock new opportunities that Ms Usha Chandradas cited and access resources like wellness and welfare. We have also provided our arts SEPs with resources, such as talks on copyright, financial literacy, information on personal branding and well-being, as well as access to co-working spaces for sustainability practices. More than 2,800 arts SEPs have already subscribed to ARH to benefit from its spaces and programmes. We will continue to review ARH to ensure that it serves the evolving needs of the arts SEPs. In fact, this follows from my engagement session in February this year with a group of SEPs from the arts sector to discuss how we can better support them and how we can work together to co-curate solutions together. Sir, I want to assure Ms Usha Chandradas that ongoing feedback from the wider arts community, including those raised by Ms Chandradas, will certainly help us to finetune the ARH to further enhance the capabilities of our arts practitioners. Most recently, in September 2023, the NAC and SkillsFuture Singapore developed the Skills Framework for the Arts. This identifies the occupations, job roles, training programmes, as well as existing and emerging skills that are required in arts education as well as technical theatre and production sectors.”
“Mr Speaker, Sir, I would like to thank Ms Usha Chandradas for her invaluable suggestions on building a vibrant and sustainable arts and culture sector, and creative economy. And indeed, the arts and culture are critical in fostering a more caring people, a cohesive society and a confident nation. The arts connect our communities to foster our identity as a people and as a nation. And it is this conviction in the role and the value of the arts has remained steadfast in the various masterplans that the Government has rolled out since the 1980s. I shared with Members in this House in October 2020 that these plans have built a foundation for our nation's development and continued growth. We strive to do more as our operating environment and our arts landscape evolve. The recently launched Our SG Arts Plan 2023 to 2027, that Ms Usha Chandradas mentioned earlier, has this in mind as we seek to bring our flourishing arts sector to the next level. We have made significant shifts in how we support the arts, expanding from traditional forms to a more diverse and inclusive approach that embraces different artistic expressions. So, on that note, I would like to highlight four areas. Ms Usha Chandradas highlighted four suggestions. I would like to highlight four areas that chart the progress of these efforts that I talked about earlier. Firstly, on capability development – she touched about that earlier – we are building a dynamic and talented arts workforce to support a strong and vibrant arts sector. As nearly one-third of the arts workforce is self-employed, we have ramped up our support to enhance career pathways and progression of self-employed persons (SEPs).”
“I must specify that there is a difference between the Nongsa Digital Park, under which there is a launch of the Nongsa Digital Town. The Nongsa Digital Town, if you remember, was only launched two years ago by Minister Chan Chun Sing, in his capacity in the Ministry of Trade and Industry (MTI), and his counterpart. The objective of the Nongsa Digital Town really is to further bridge the tech companies and talent in Singapore and Indonesia. I am happy to share that the Nongsa Digital Town is actually designed by Surbana Jurong, and in close partnership, developed by PT Citra Sinar Global. He asked in the second supplementary question about the progress. It has been two years, it is undergoing construction and when completed, the Nongsa Digital Town will house an additional 8,000 tech talents that will continue to serve Singapore-based companies. The Nongsa Digital Town will have co-working spaces, digital training centres, offices, lifestyle centres and hotels for business travellers. The initial phase of the development – there is one interesting development called The Hive, and it will be completed in the second half of next year. When completed, it will comprise a mixed development of food and beverage (F&B) outlets, co-working spaces and also community spaces. So, I want to use this platform to assure Mr Saktiandi Supaat that MTI and our economic agencies will certainly work closely with our Indonesian counterparts and industry stakeholders to continue to expand partnership between Singapore-based companies and the BBK region. We will do so by leveraging the complementary strengths of Singapore and the BBK region – I mentioned the close proximity – and also identify mutually beneficial opportunities in Indonesia's digital economy.”
“Mr Speaker, I want to thank the Member Mr Saktiandi Supaat for his two supplementary questions. If I could elaborate and share a bit of context, Nongsa Digital Park is Singapore's digital bridge to Indonesia's digital economy. Many will remember it was launched in 2018. It has only been five years and for most of the five years, we were mired in the pandemic. Despite that, it now serves about 250 Singapore-based companies. The close proximity of Batam, Bintan, Karimun – which we refer to as the BBK region in short – and the park's status as a Special Economic Zone (SEZ), these two key factors offer our Singapore-based companies advantages to tap the promising growth opportunities of Indonesia's growing digital economy. He asked about the profile and the sector. I am happy to update him that the 250 Singapore-based companies that I have shared earlier in my reply harness the tech talent services in Nongsa Digital Park and they include multinational corporations (MNCs), small and medium enterprises (SMEs) as well as startups from industries such as the financial sector, digital and creative media as well as software engineering, just to name a few. I will cite a few companies, just to give him a sensing. Some of these big companies are AIA Singapore, which is an insurance MNC; Infinite Studios, which is a media company; and Infineon, a semi-conductor MNC. And another quick example is VA Insight, which is a Singapore-based software engineering company. As for his question about other sectors, earlier on in my main reply, I talked about data centres and the three quick examples I shared – GDS Holdings, Princeton Digital Group as well as Gaw Capital – all these are important projects during this time. It is a vote of confidence in the potential of the Nongsa Digital Park.”
“Mr Speaker, Sir, Nongsa Digital Park is a commercial project in Batam attracting and housing tech talents to support the needs of companies in Singapore and Southeast Asia. Nongsa Digital Park is doing well. Around 1,000 tech talents in Nongsa Digital Park are currently servicing some 250 Singapore-based companies. Singapore-based data centre players, such as Princeton Digital Group, GDS Holdings and Gaw Capital, have also announced data centre investments in Nongsa Digital Park to serve Southeast Asia. These projects support Singapore and Indonesia’s digital economies and create jobs for both countries.”
“And some see the Bill as an exemplary example of our collaborative approach – "uniquely Singapore" – to problem-solving, while some caution that not all issues require the Government to step in and not all issues require the Government's intervention. So, as you can hear from the 10 speeches from the Members, the diversity of views held amongst the 10 speakers – I was reflecting. It truly reflects the extensive and spirited discussions that have taken place these two years in the industry, between the large and small landlords and the large and small tenants. Mr Speaker, Sir, the Code embodies the common ground that is found by tenants and landlords to bridge these differences, and it has been welcomed as a ground-breaking achievement for the industry – developed and owned by the industry. I am very heartened that all 10 Members affirmed the importance of the Code and the need for the Bill to ensure widespread adoption. To conclude, I would like to reiterate that the Code is a living document and will continue to evolve to meet the needs of the industry. This will allow new and current players to navigate the market more adroitly and adapt to disruptions with greater resilience. I am confident that by ensuring fair and balanced lease negotiations, the Bill will strengthen the foundations of the retail market. The FTIC will also be a positive driving force in finetuning the Code and bringing stakeholders together to push the industry to greater heights. I would like to thank all the 10 Members for their support for the Bill. And I trust that with the support of the House today and the retail industry for this Bill and the Code, we will place the retail sector on solid ground for future growth and greater potential. Sir, I beg to move. 5.32 pm”
“FMAS is also developing a lease agreement template tailored for heartland shopowners and will launch it by this year-end. We are grateful to the TACs, including FMAS and the Restaurant Association of Singapore, for their ground-up efforts to introduce sector-specific lease agreement templates, checklists and other resources, which will bring more convenience to businesses. FTIC will continue to update the Code based on industry feedback. For example, during our engagements in partnership with FMAS and HECS in the past two years, many heartland retailers gave feedback that the requirement to provide a surveyed floor plan certified by a registered surveyor for new leases would increase their leasing costs. After considering the feedback, the current Committee decided that tenants and landlords can submit certified floor or building plans from relevant authorities by mutual agreement. This shows that the Committee listens closely to the feedback from both tenants and landlords, large and small. The alternative option is more convenient and less costly. The updated Code is expected to take effect on the same day as the commencement of the Act in early February next year. (In English): Mr Speaker, Sir, I believe I have addressed the key issues that were raised by Members. And as we can see from the last two-and-a-half hours of debate, the passionate speeches of the 10 Members, we have heard many different voices in the Chamber today. On one hand, while some Members think that the Code can go further to address imbalances in lease negotiations, others worry that it may go too far.”
“We hope that the Bill will also support entrepreneurship, by helping businesses understand their tenancy rights and make informed leasing decisions. This will set a strong foundation for a more vibrant and competitive retail scene in Singapore, which will benefit all consumers. CapitaLand, a major landlord of commercial properties, shared that since adopting the Code, they have strengthened their relationship with their tenants and it has enabled them to work together to enhance the vibrancy of their malls and bring more exciting experiences to consumers. Mr Don Wee and Mr Louis Chua asked how we can raise awareness of the Bill and Code among SMEs and address concerns over compliance costs. Mr Saktiandi Supaat and Mr Lim Biow Chuan also expressed concerns on compliance readiness for smaller landlords. I understand Members’ concerns and would like to assure them that we have refined the Code over a period of two years and we have tried to ensure right from the beginning that it is easy to understand and follow. The Government will work with FTIC, the Federation of Merchants’ Associations Singapore (FMAS) and Heartland Enterprise Centre Singapore (HECS) to conduct roadshows and seminars in the heartlands, especially from now to February next year. I would like to assure Mr Don Wee that these seminars will not only be conducted in English, but also in Mandarin. He also asked whether they will be conducted in dialects. I will discuss this with FMAS. So, we will work closely with FTIC, FMAS and HECS to conduct a series of roadshows and seminars to educate heartland shops about the details of the Bill and Code. Businesses can also approach HECS’ business advisors for one-on-one advice.”
“While we encourage parties to use the mediation and adjudication services that are set out in the Bill for Code-related complaints, this dispute resolution framework is provided, in addition to any other redress that the parties would have outside of the Bill. As I have said, we would want to do this because we want to provide the aggrieved party a low-cost and expedient avenue. It is not intended to override any other such redress. The Court would have the discretion, whether to hear or determine the matter or to grant a stay of proceedings, after considering all relevant circumstances. Mr Murali Pillai's last question concerns the scope to appeal the decisions of the adjudicator. As I have shared, the dispute resolution framework under the Bill is intended to be a low-cost and expedient alternative to other forms of redress available to the parties. It does not supplant the Court's jurisdiction. Parties can only seek mediation or adjudication in relation to non-compliance with the leasing principles which have been clearly set out in the Code. Thus, most cases before the adjudicator should be able to be determined in a relatively straightforward manner. Sir, before I conclude, please allow me to say a few words in Mandarin. (In Mandarin): Mr Speaker, the Code of Conduct for Leasing of Retail Premises in Singapore, launched in March 2021, was spearheaded by the industry to promote fairer and more balanced lease negotiations between tenants and landlords. The Code addresses structural issues in the industry and enables both parties to forge long-term symbiotic partnerships. This Bill will mandate that all tenants and landlords comply with the Code.”
“Mr Murali Pillai, in his speech, also asked about the adjudicator's power to address matters of non-compliance with leasing principles and whether the adjudicator can order both a variation of the lease as well as compensation to rectify the same matter of non-compliance. This part is going to be quite technical, so please bear with me. I would like to clarify that the adjudicator can only make a determination to require either a variation of the lease, so that it complies with the leasing principle in question, because that would only come about as you go through the lease negotiations and as you sign. So, this will only kick in during that period – at the front part of your lease agreement. The adjudicator can either determine a variation of the lease or order a compensation, if the leasing principle in question provides for compensation to be made. Let me repeat – the adjudicator can only order compensation if the leasing principle in question provides for compensation to be made. Currently, if you look at the Code – which is available at the URL www.ftic.org.sg, 39 pages long – compensation explicitly applies to three leasing principles in the Code relating to early termination of contracts. In other cases of non-compliance where the leasing principle does not provide for recourse of compensation, the aggrieved party may wish to seek damages through independent civil redress, like what the Member cited. Mr Murali Pillai and Mr Saktiandi Supaat asked if the dispute resolution process under this Bill supersedes Court proceedings. I want to assure them that it does not.”
“Tenants and landlords, after signing, it is their responsibility to also ensure that there is compliance, failing which, they can then proceed to alert FTIC and then, if need be, there is a dispute resolution body, which I will touch on later. If the FTIC receives complaints that a party regularly engages in practices or behaviours that are against the spirit or the requirements of the Code, it may seek further information from the parties and publicly highlight egregious or non-cooperative and non-compliant behaviour. Mr Murali Pillai, Mr Lim Biow Chuan and Mr Saktiandi Supaat asked about the qualifications of the mediators and adjudicators. Because out of the three speakers, two are legally trained, I want to assure them that the panel of mediators and adjudicators appointed by the authorised dispute resolution body, which will be the Singapore Mediation Centre, SMC for short, will be fully qualified to deal with matters of non-compliance with the Code. The mediators will comprise both legally trained and non-legally trained individuals who must pass SMC's training programme with a distinction grade. And all adjudicators have to be legally trained individuals. This is to ensure that they are able to address any legal implications in relation to non-compliance with the Code when rendering their decisions. While parties are free to hire their own legal representatives, it is not a requirement. Here, we are trying to make sure that, in the situation of dispute, we are trying to offer a low-cost, expedient avenue.”
“I will give Members one example – a shop selling bak kwa. They shared that they may have most of their sales around the Lunar New Year period. Of course, you may say, actually we eat bak kwa throughout the whole year. But I think we will agree, we see the long queues one-and-a-half months before Lunar New Year. They may actually enjoy a huge spike in their income during that period, rather than a steady income stream year-round, compared to other F&Bs, like say, a bubble tea shop. This is just one example. So, the bak kwa shop tenant may prefer a "whichever is higher" rental formula, which then will allow them to negotiate with the landlord to pay a lower baseline rent for most of the months, except for the few months leading up to Lunar New Year. Another example is a winterwear shop. I think we do see that in some shopping malls, where the sales during the year-end holiday or sales to those people who go to Australia during the June holidays can be a bit higher than other months. So, I just want us to think of other possible scenarios. Basically, this is not just the landlord, also the tenant representatives who told us that they hope for a little bit of flexibility so that it does not encumber them, when they go into a lease negotiation for the retail premises. As lease agreements are private contracts between willing parties, tenants and landlords should do their due diligence before signing a lease agreement, which is binding once signed. Parties to the lease agreements are also responsible for ensuring compliance with the Code.”
“These requirements enable the FTIC to monitor industry trends in relation to the four leasing principles of exclusivity, sales performance, security deposit and rental formula, and then, to assess if there is a need to update the Code. So, as I said, this is a first step, it is a living document, we will continue to engage the industry to collect feedback but it has to be done in a way that all parties come to a consensus at the same table. We keep talking about "large landlord" and "small tenants". Actually, landlords can also be small. I will come to that point later. Tenants can also be big. So, there are many, many permutations here and it is important for us to represent the interests of all possible scenarios. I would like to clarify that while deviations represent a departure from the norms that are agreed to at the industry level, the Code does provide parties with the flexibility to negotiate the terms that are best suited to business requirements and commercial considerations. I hear from some Members that the reason why there are permitted deviations in the four areas, is it because the landlord wins? Interestingly, the tenants are the ones who may advocate for that flexibility. Because if not, they will think that, in certain situations, it may be overly restrictive. I want to address the query by Mr Leong Mun Wai. For example, I understand in our engagements with the stakeholders – and as I said, there are large and small landlords, and large and small tenants – I will quote to Members two very interesting examples, which did not come to my mind before my engagement with them. Certain tenants may want to deviate and opt for a "whichever is higher" rental formula, which is currently not permitted in the Code, except by mutual agreement.”
“In cases where permitted deviations on exclusivity, sales performance and security deposit fail to be filed – to answer Members' questions – the deviation in the lease agreement would be void and the default position, as stated in the Code, would then apply. So, they have to file it within that period, failing which, deviations on those three areas would be void and the default position in the Code would then apply. For the fourth scenario, for the fourth leasing principle where deviation is allowed, where it concerns the rental formula, if the permitted deviation related to the rental formula fails to be filed, the lease will continue on the same rental formula. This is because it is not possible to prescribe a default rental formula in the Code or to void the rental formula term in that particular lease agreement as it is an essential element of the contract. On a related note, Mr Louis Ng asked about the consequences of non-compliance with leasing principles without a permitted deviation. I would like to clarify that that is not permitted. The reason why we are coming to Parliament today to pass this Bill to support this industry-led Code is to mandate compliance with the 13 leasing principles. Out of the 13 leasing principles, there are four leasing principles where, if both parties mutually agree, they can file a declaration of permitted deviation. I would like to clarify that this is not permitted, because we need mandatory compliance. And in such cases, if he is aware of any, the tenant can decline the lease agreement and, in fact, report the matter to FTIC. To answer Mr Saktiandi Supaat's question on the purpose of requiring parties to file declarations of permitted deviation with the FTIC, this is a good question.”
“I would like to assure him and the House that the Pro Tem Committee and current Committee have done an admirable job in balancing the needs of the tenants, large and small, and landlords, large and small, in developing the Code so far and we will continue to work closely with the FTIC to ensure that this momentum continues after the passing of the Bill. Mr Speaker, Sir, as I have said at the beginning of my speech, the legislative approach we have taken for this Bill is really a first for the Government. We have chosen to do so as, one, we recognise the potential downsides of overregulating in the lease negotiation space, where market forces and commercial considerations should prevail. Two, we do so because we recognise the benefits of having an industry-led body respond very nimbly and represent the industry aptly to changing needs in the fast-moving retail scene. To ensure accountability in the process and fair consideration of interests on both sides, the Bill requires FTIC members appointed by the Minister for Trade and Industry to represent the interests of both tenants and landlords and also requires the FTIC to seek the Minister's approval before amending the Code. Mr Edward Chia and Mr Saktiandi Supaat asked about the recourse available if landlords do not file declarations of permitted deviation after signing the lease agreement within the period to be prescribed in the Regulations. While the Bill only requires landlords to file any such declarations with the FTIC, tenants are encouraged to acknowledge these filings.”
“Under the Bill, MTI will also work with FTIC and ensure there is sufficient lead time for businesses to familiarise themselves with the latest updates on the Code and how the updated principles in the Code will be implemented before it comes into force. Mr Speaker, Sir, I will now turn to address Members' clarifications on the Bill. Mr Louis Ng asked about the scope of the Bill and how might the Minister exercise the power to exempt specific persons or premises from the Bill. I want to assure him that the Government intends for the Bill to apply to all retail premises with a lease tenure of one year or more. Powers to vary the Schedules and to exempt specific entities are not uncommon in other Acts and I would like to assure the Member that MTI will exercise such powers under the Bill judiciously and only consider doing that in exceptional circumstances. As Mr Saktiandi Supaat observed, some parties may seek to escape compliance with the Bill by deliberately structuring their lease in multiple renewal periods of 11 months – that is actually quite painful. He was citing that as an example that some tenants or landlords may game it that way. I wish to assure him that the intent is to cover the vast majority of retail leases and exempt those on short-term leases. I want to assure him that if any party suspects that their lease terms are being deliberately shortened to circumvent compliance with the Code and the Bill, they can report to the FTIC such practices for going against the spirit of the Code. Mr Lim Biow Chuan asked about the composition of the FTIC and cited there might be a risk of the balance of representation tilting towards either side. He noted the importance of this matter as the FTIC is responsible for maintaining and proposing changes to the Code.”
“Mr Don Wee and Mr Louis Chua asked if the data transparency principle in the Code can be further strengthened, such as by providing tenants with more information beyond sales data by trade category. Allow me to share that the Pro Tem Committee had considered all these matters in deliberating on the data transparency requirement. The Pro Tem Committee ultimately landed on the position in the Code that Members see today to promote greater transparency and enable both tenants and landlords to make informed lease decisions while balancing both parties' interests. The addition of two leasing principles, confidentiality and data transparency, really demonstrates how the Code is a living document which will continue to evolve to meet the industry's needs. While I am not able to address all the questions that were raised by Members, especially those that are outside the purview of the Code and the Bill, I will certainly convey your feedback to the current Committee for their consideration, including Mr Lim Biow Chuan's suggestion for reminders to be sent for the declaration of the value of capex works. Mr Louis Ng asked about the frequency of reviewing the Code and its guiding criteria. Mr Saktiandi Supaat then enquired about rent review and if requiring the Minister's approval to amend the Code could make it less nimble. I agree with both Mr Louis Ng and Mr Saktiandi Supaat that we will have to balance between providing flexibility and transparency and giving businesses certainty. The current Committee considered the industry's feedback when it reviewed the Code and will continue to do so.”
“This condition has been set to prevent landlords from arbitrarily raising the gross rent after the agreement has been signed and to provide certainty to tenants on the rent that is payable during the lease term. I wish to also clarify that the Code does not restrict the amount of A&P charges that a landlord may collect. As Mr Lim Biow Chuan noted, the amount of A&P charges that is payable by the tenant is really a matter of negotiation between parties and continues to be so. Rather, the Code holds the position that A&P charges are considered as business costs incurred by landlords and should thus be subsumed in the overall gross rent, rather than be borne fully by tenants. In addition, landlords are also encouraged to keep proper records and accounts of these charges to ensure accountability because when renewing the lease agreement, tenants and landlords may review and revise the charges based on prevailing market conditions. Mr Speaker, Sir, Mr Saktiandi Supaat and Mr Louis Chua asked if data transparency guidelines under Part C of the Code will be mandated under the Bill. I am happy to confirm this: they will be mandated. The current Committee has updated the draft Code to raise the bar on data transparency and confidentiality and elevated the status of data transparency and confidentiality guidelines to be leasing principles. This brings the total number of principles to 13, instead of 11, which the Bill mandates compliance with. In cases of non-compliance, parties can pursue recourse in the form of mediation and adjudication. The draft Code will be finalised in the coming months and will take effect on the same day as the date of commencement of the Act in early February 2024.”
“It is thus not practical nor possible for the Code to comprehensively come up with different permutations to try to cover the different types of commercial arrangements for electricity. What we want here is to improve transparency and to promote fair practices to make it clear that the landlord cannot charge mark-ups on electricity costs. As Ms Jessica Tan said in her speech, "We should not expect legislation to be the panacea for all issues." What is really important, as cited by many of the speakers today, is that details on costs are communicated transparently during the lease negotiation so that the tenant can make an informed decision whether to lease the premises. Mr Edward Chia also asked if the Government or FTIC could provide guidelines for parties renegotiating lease agreements due to material adverse change when a tenant cannot carry on its business because of events beyond its control. Parties are encouraged to abide by the principles governing the conduct and the spirit of negotiations as set out in the Code and to negotiate leases in good faith while also considering the other party's legitimate interests. As circumstances would differ for each lease, it is thus not feasible to issue guidelines for what would be commercial arrangements between the two parties. Mr Edward Chia and Mr Lim Biow Chuan raised some questions about advertising and promotion (A&P) and also service charges during the lease, which landlords are allowed to adjust, on the condition that their overall gross rent does not increase. Again, this is to improve transparency and promote fair business practices so that there is certainty and predictability for retail tenants.”
“The Pro Tem Committee weighed the views of tenants, large and small, and landlords, large and small, and incorporated their feedback to come up with a set of common standards that apply to the industry. Careful consideration was also given to ensure that the Code is not unduly onerous on any party. The FTIC will certainly continue to drive the review of the Code under the Bill. Mr Edward Chia had suggested amending specific leasing principles to further increase transparency in lease negotiations. Mr Edward Chia raised a point about electricity costs in his speech. He was concerned that while the Bill prohibits profiteering from the sale of electricity, tenants are charged for additional miscellaneous costs, such as "meter reading fees". Landlords on the En-bloc Contestability Scheme (ECS) will have to procure electricity contracts on behalf of all their tenants. Then, the landlords are to pass tenants the electricity costs, as charged, without any mark-up. Depending on the contract between the electricity retailer and the landlord, the electricity costs may include various components charged by the electricity retailer, such as fees for meter leasing and meter readings. Under the ECS, the contract between, say, the electricity retailer with a mall, they will only measure the amount of electricity that the mall uses, but they will have to provide the individual meter to measure the tenants' usage. So, these are imposed by the electricity retailer. This is so that sub-meters can be installed for tenants and their electricity consumption can be tracked. There are also instances where the landlord is not on the ECS. Those are cases where tenants would be able to choose from an array of electricity retailers of their choice from the open electricity market.”
“On the contrary, the very reason that we are tabling this Bill is to promote greater transparency and a more vibrant and competitive retail scene to benefit Singaporeans and all consumers. As highlighted by Mr Murali Pillai in his passionate speech, the Government's underlying philosophy has always been, and still is, in the words of then-Senior Minister of State Indranee Rajah in 2018, that "in general, free market principles should apply and the Government should only intervene when necessary." The Bill supports this approach. It does not seek to intervene in market outcomes and it does not seek to inadvertently distort competition or distort market forces at work. Instead, it empowers the industry players in the retail sector to come together to identify, and to address, their key pain points by finding common ground. The leasing principles under the Code are a result of very extensive deliberation between tenants and landlord representatives. They represent the fine balance that both sides have struck. The trust and partnership that tenants and landlords have forged in developing the Code together provide a firm foundation for widespread adoption by the industry. By mandating compliance with the Code, the Bill will enable both the tenants and the landlords to pursue their business interests more effectively and enhance the competitiveness of our retail scene in Singapore. Mr Speaker, Sir, please allow me to now respond to the Members' clarifications on the Code and then their clarifications on the Bill. I thank all the 10 Members for their questions and their suggestions for the Code. To formulate the Code, the Pro Tem Committee had spent months deliberating each of the leasing principles extensively.”
“However, it is a critical first step that brings the industry together at the same table and steers it towards a positive direction for a brighter future. While the COVID-19 pandemic catalysed the beginnings of the Code, as Mr Murali Pillai and Mr Saktiandi Supaat said, the conduct and the spirit of negotiations, as well as the development of common leasing principles, will place businesses on a stronger foundation for the long run. And to ensure its continued relevance, the Code will be a living document under the current Committee and then the FTIC’s stewardship, and updated from time to time to meet the industry's needs. Since the Code was first published in March 2021, it has been updated twice. We are seeing the third version – Mr Louis Ng asked the question – in less than three years, three versions. Mr Murali Pillai, Mr Louis Chua, Mr Leong Mun Wai, Ms See Jinli Jean in her maiden speech, and many Members have given their firm support, and I am very glad that the Bill addresses their concern about the imbalance of bargaining power for small companies in the retail leases. I fully agree with Mr Murali Pillai that the Bill promotes equality, fairness and freedom to contract between leasing parties. I also agree with Mr Don Wee, who has just spoken, that the Bill and the Code provide small businesses with guidance and certainty, and thus support entrepreneurship in general, by helping businesses understand their tenancy rights and make informed leasing decisions – knowing their tenancy rights as well as both sides knowing their obligations. Above all, we are clear that by no means is this Bill signalling a shift in the Government’s position on free-market principles, the importance of which Mr Lim Biow Chuan had stressed in his very passionate speech earlier.”
“Mr Speaker, Sir, I thank all the 10 hon Members who have spoken in support of the Bill and for their questions, comments and suggestions. Please allow me to address the points raised in the course of my speech. As before, for the sake of clarity, I will refer to the Fair Tenancy Industry Committee established under this Bill as FTIC, and the Fair Tenancy Industry Committee that was formed two years ago in May 2021 as "current Committee" in my speech. Mr Speaker, Sir, before I turn to address the Members’ comments, please allow me to recap very quickly the context for the Bill that has been cited by many hon Members. In June 2020, when we first embarked on the journey to strengthen the retail sector with tenant and landlord representatives from the Pro Tem Committee, to be honest, it was far from certain that any common ground could be found, let alone a full-fledged and robust Code of Conduct that we have before us today in the House for this debate. So, the Code was, in the words of a current Committee member, and I quote her, "a landmark for the industry" and it is "a miracle that we could even reach this stage". This unprecedented Bill is also a landmark for the Government, like what some Members have shared. For the first time, we have tabled a Bill that mandates compliance with principles that are drawn from a Code that is developed by the industry, that is owned by the industry. It is because the industry and stakeholders recognised the need for this Code and the collective benefits that it can bring to the stakeholders of the retail sector that we are all here today for the final stage of this Bill. As Ms Jessica Tan pointed out, the Code does not set out to, nor does it intend to, solve every problem that tenants and landlords face in their lease negotiations.”