Matthias Yao Chih
Singapore
“Madam, I beg leave to withdraw the amendment. Amendment, by leave, withdrawn. The sum of $247,297,100 for Head U ordered to stand part of the Main Estimates. The sum of $43,646,300 for Head U ordered to stand part of the Development Estimates. Head P – Ministry of Home Affairs”
“Individual neighbourhoods or large areas of Singapore may have to be cordoned off during the election time affecting the smooth movement of candidates, election agents, officials and voters, and the conduct of election activities.”
“South East CDC would work with the voluntary welfare organisations and grassroots bodies to develop and implement the building blocks that could help families from different parts of the needs spectrum become self-reliant. In designing new initiatives, our emphasis would be "maximum flexibility, minimum complexity�?.”
“Since its formation, NTUC Thrift has consistently given an interest rate on the small savings higher than what the banks give on their savings accounts.”
“In fact, in the new era of rapid changes in our global and domestic economies, workers need stronger social safety nets that will cushion them more effectively from adverse outcomes. This is a subject my NTUC colleagues have dealt with in the Budget debate and will continue to take up in the Committee of Supply.”
“While we should range freely to capture all good ideas, we must be extremely careful in choosing what to implement and how to do it. Like a good bus driver, we must not turn a corner too sharply as the passengers will surely be flung off their seats if we do so.”
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“MINDEF raised this matter with the Ministry of Finance and the Ministry of Finance has recognised the problem faced by MINDEF. It has subsequently agreed to allow MINDEF to continue with the current practice. Meanwhile, MINDEF will explore other ways to improve the practice further. Mr Low said that there were 13 late tenders which were considered after the tender dates have closed. That is not correct. The point at issue here is that none of the late offers were accepted. But it does not serve the Government's interest to completely disregard the late offers and not look at them when they can be used to evaluate the reasonableness of the valid offer. Following the Auditor-General's Report, MINDEF has consulted the Ministry of Finance and the Ministry has agreed that there is no reason to return late offers to the tenderers. The revised Instruction Manual now allows the procurement agency to retain late offers for reference, but it still requires the purchasing agency to inform the supplier concerned that his late offer is not valid and will not be considered for award. On the location of the fax machines, tenderers are advised in the documents that if they want to send their tenders by fax, it is at their own risk. Nevertheless, in MINDEF, the fax machines are always located in restricted areas, for example, in the registry or in the tender office, and access to these machines is tightly controlled and has been further tightened so that the office would not be left unattended and will be locked at all times. In addition, we have implemented a system which electronically directs the faxes coming in to the recipient through an e-mail system, thereby reducing the risk of exposure inherent in the manual way of delivering faxes to the desk of the recipient.”
“Sir, I assure the Member that MINDEF takes the Auditor-General's Report very seriously. Indeed, we are very conscious of the need to spend the budget given to us wisely and ensure that there are no biases in the tenders nor any discrepancies in the tender system. There is no mystery as to what happened. The Member read these reports from the Auditor-General's Report. Let me explain what has happened with regard to what he told us. On the question of tender boxes being opened, on average, about 50 MINDEF tenders are outstanding at any one time. In other words, as of today, there are 50 or more tenders which are currently open. The tender periods for the different types of tenders range from three weeks to four months, depending on the complexity of the requirements. But as tenderers are allowed to submit their offers any time before the closing date, it is possible for MINDEF to receive offers from different tenderers at any one time. It is not practical to set aside one box for each tender. MINDEF therefore sets aside eight tender boxes and, as far as possible, tries to consolidate tenders with similar closing dates over a two-week period in the same tender box. Otherwise, if we have 50 or more boxes and tenderers put their tender documents in the wrong box, it will result in a lot of confusion and unnecessary extra work. Tenders submitted more than two weeks before the closing date are also allowed to be submitted into the eight boxes that we have kept open. Hence, when the boxes are opened periodically to take out tenders which have closed, the same boxes may contain other tenders which have not closed. This practice, admittedly, was not consistent with the provisions in the Instruction Manual. The Auditor-General has pointed this out.”
“At the same time, we organise visits to the SAF units for them so that they have a better idea of the SAF's capabilities to defend our country and a better understanding of what it is that our young men do when they perform national service. Our three services, ie, Air Force, Army and Navy, also hold open houses for members of the public. SAF units themselves invite members of the public to such events such as passing out parades, unit anniversary celebrations and the Commanders' Evening so that the members of the public and employers can interact with the officers of the individual unit. So I assure the hon. Member that this has already been done and the unit commanders are encouraged to organise more of such activities wherever possible.”
“Furthermore, Sir, the training is not by way of small sections of 10, 20 or 50 men. They have to increasingly also operate with larger formations such as the battalion, the brigade or even the division. Therefore, because of these two reasons, we need a long time to prepare a young boy, coming in as a recruit till the time he is operationally ready, to operate within a far larger formation and to operate very sophisticated weapons and equipment. Mr Zulkifli Baharudin asked about community relations and, in particular, interaction with employers. I thank him for his suggestion. MINDEF has always regarded our relations with the community as very important, especially given that the SAF is a citizen armed force. Families and employers, all have a keen interest in what the SAF is doing. MINDEF is also conscious that in a small country like Singapore, military activities will inevitably result in some inconvenience to the community. MINDEF set up the Advisory Council on Community Relations in Defence (ACCORD) in 1984 as a means to keep the community informed of developments in the SAF and to obtain feedback. The ACCORD members represent employers, trade unions, grassroots organisations, schools and institutions of higher learning and also Members of Parliament. We have found ACCORD most valuable, as it helps MINDEF to explain its policies and activities to the community and to garner the support of Singaporeans for our defence effort. The feedback from ACCORD also helps us to fine-tune MINDEF's policies and programmes to take the concerns of the community into consideration. MINDEF also conducts regular dialogue sessions with various groups, including employers and grassroots leaders.”
“We are grateful for these opportunities. We will continue to look for new training areas overseas to meet the growing needs of the SAF. Mr Shriniwas Rai asked whether girls should do some form of national service. As far as military duties are concerned, MINDEF has no immediate need to consider the option of enlisting women by way of national service. The number of males enlisted for national service is indeed dwindling because of falling birth rates. This has led to a squeeze on national service manpower for the SAF. But so far the measures, such as making better use of technology and commercialisation of non-essential support functions, have enabled MINDEF to cope with the squeeze. These measures have allowed us to free up more manpower resources for combat vocations or we can do more with fewer men. However, Mr Rai's question touches on cohesion and bonding among women and perhaps also non-combat duties for them. If that is so, then perhaps I should pass this question to other relevant Ministries to consider for further study. He also asked whether or not we should consider reducing the period of training for boys in full-time national service. Sir, as explained by the Minister and the Second Minister before me, we are increasingly going into high technology and sophisticated equipment and these equipment require a long time for the boys to get familiar with and to be operational with them. The sophisticated weapon systems and equipment require a long period of basic training, first, for the soldiers themselves to understand their own personal weapons and how they should react on the battlefield and slowly move on to team building and then get to operate those sophisticated equipment.”
“We organise regular visits and exchanges for all ranks. Such interactions enable us to learn from each other professionally and promote mutual understanding and confidence building. Such exchanges also facilitate the development of rapport at various levels between SAF personnel and their foreign counterparts. 4.00 pm Across the Pacific, our defence relations with the US are strong and warm. This relationship has been steadily growing in depth and scope. The Air Force continues to have access to valuable training facilities in America. Exercises with the US conducted locally have grown in complexity and scope over the years. These exercises and access to facilities testify to the value both sides derive from such interaction. We have also recently signed a Memorandum of Understanding which allows the Air Force to do flying training in Canada. Defence interactions between Singapore and European countries, in particular France and Sweden, are increasing. Our Navy conducts submarine training in Sweden. The Air Force had their first bilateral exercise with their French counterparts recently. MINDEF is working towards more cooperation between the SAF and European armed forces. Over the past year, we have also stepped up defence interactions with countries such as South Africa, China and Japan. We would like to see this continue. As for training areas, these are limited in Singapore. While the SAF has invested heavily in simulators and other forms of high-tech training aids to overcome our constraints, there are limits to what technology can provide. There is no substitute for actual flying and on-ground manoeuvres. Hence, the SAF has little choice but to conduct more of its training overseas. The SAF has access to training facilities in 16 countries.”
“I have no specific numbers as to who have gone to what jobs but, anecdotally, we know that our retired servicemen are well looked after in their new careers by their new employers. We know that there is a network of retiring and retired regular officers with national servicemen who form the network of employers and employees in the civilian sector. And we know that they constantly keep in touch with each other to find out who is retiring and who they can hire and can contribute to their companies. Sir, the other aspect of moving young officers up very quickly within the SAF hierarchy will not compromise on their ability and expertise, because we have a well planned route of advancement where we prepare junior officers to take senior appointments. We train them and properly prepare them through courses and expose them to experiences, command appointments and exercises to ensure that when they get to the higher appointments, they will be able to perform well in their jobs. Dr Ong Chit Chung, Mr Hawazi Daipi and Mr Shriniwas Rai asked about defence relations with other countries. Our defence policy is based on deterrence and diplomacy. Therefore, diplomacy is a key pillar of our defence policy. Singapore places great emphasis on developing good defence relations with other countries, both within and outside of our region. Over the years, we have developed a network of strong defence relations with many countries, and we will continue to invest effort and resources to strengthen existing relationships and develop new ones. Our defence relations with ASEAN and FPDA countries are good. The SAF trains and exercises with their armed forces on a bilateral or multi-lateral basis. We also send officers for training in each other's military academies and colleges.”
“Sir, Mr Sin Boon Ann asked about early retirement from the SAF and also how these retired servicemen are faring in the civilian world. MINDEF has a policy of keeping the SAF young. This ensures that the SAF is always fighting fit and effective. It also allows a healthy renewal of leadership, and a constant infusion of new ideas at all levels of the SAF. MINDEF recognises that transition to a second career is never easy. Preparations for a serviceman's retirement therefore start well before his actual retirement. About one and a half to two years before their retirement, servicemen are invited to attend special workshops and seminars to help prepare them for their retirement and second careers. While in service, MINDEF provides ample opportunities for servicemen to upgrade themselves. Many sponsorships are offered for diploma, undergraduate and post-graduate courses. We also sponsor servicemen for certified supervisory and management programmes offered by the Singapore Institute of Management and the Singapore Productivity and Standards Board. The training provided will not only enable the servicemen to contribute more to the SAF but also better prepare them for a second career. There is also a scheme to subsidise retiring servicemen who wish to take up training to prepare themselves for their second career. MINDEF also helps retiring servicemen to look for suitable jobs in the public and private sectors. Furthermore, retiring servicemen may start work with their new employers up to six months before their retirement from the SAF. And during this period, the SAF pays them half their pay and allows them to keep whatever their new employers will pay them. Sir, these measures will help the SAF servicemen to make a smooth transition into their second careers.”
“I also wish that Mr Low had listened to Mr J.B. Jeyaretnam when he was speaking. Mr Jeyaretnam said that the proportion of defence expenditure to GDP was more than 5%. My intention of pointing out that the figure is 4.17% is to correct his misconception and to point out that he did not read his Budget book before he came for the debate. On the issue of cost-effectiveness and efficiency, an independent assessment by a specialist from the American Ministry of Defence has publicly stated that we have spent our money efficiently and effectively and there was no sign of any wastage in our expenditure.”
“We introduced a National Education programme in 1971. Our National Education efforts aim to inculcate in our SAF personnel the need for a strong commitment to Singapore's defence and an understanding of Singapore's special circumstances and the role of the SAF and Total Defence as the foundation for Singapore's continued security, survival and success. Over the years, MINDEF has developed a comprehensive set of National Education programmes for different groups ranging from the new recruits undergoing basic training to trainees undergoing Infantry Specialist, Warrant Officer and Officer Cadet courses to mid-career officers. These are often conducted in a form of an S-Cube seminar (Security, Survival and Success). The programme highlights the importance of security as a critical foundation for Singapore's continued survival and success. Such programmes are also conducted for NS men who are officers and specialists, and also non-uniformed SAF personnel. These programmes are designed such that they complement one another, focusing on different aspects and different issues at various stages of the programme. Now that the schools are going to conduct National Education programmes, MINDEF will review our own programmes to complement those in our schools so that all male Singaporeans will go through a comprehensive National Education programme from the time they are in school until the time they finish National Service. MINDEF has also been conducting National Education programmes for various groups outside of the SAF on request. We believe that it is very important that Singaporeans know our history and understand the issues which can affect our security, survival and success.”
“The second recommendation is to replace the current pension, CPF-plus and contract schemes by a Savings and Employee Retirement Plan (SAVER). This is a fundamental change. The SAVER scheme is designed to provide attractive benefits to those who stay on with the SAF after the first contract period and remain with us for 20 to 25 years more. The SAVER scheme will enable SAF officers to retire from the SAF at around age 40 to 45 in a financially secure position so that they can confidently take on a second career outside the SAF. The third recommendation by Towers Perrin is for SAF to introduce a flexible benefit scheme to allow SAF officers a choice of benefits to meet their specific needs. Officers can choose to forgo those benefits which do not meet their needs in return for other benefits which they value more. The consultants also found that non-pay issues had an important impact on the officer's decision to remain in the SAF. MINDEF will review the present career development and performance management scheme and communicate the changes to our officers. MINDEF is in the midst of working out the details for the various recommendations. We believe that, when implemented, we would have put in place various schemes that can improve our recruitment and retention in the SAF. MINDEF expects to implement the various recommendations some time next year. The real impact of such a fundamental change in the remuneration system for SAF officers will only be evident in a few years' time and I hope to come back to this House to report on them in due course. On National Education which was raised by Dr Ong Chit Chung and Mr Sin Boon Ann, MINDEF has long recognised the importance of National Education for our National Servicemen and, indeed, for all SAF personnel.”
“MINDEF engaged Towers Perrin, an established consultancy firm, to help us review the career structure and the overall compensation benefits for SAF officers. The key findings were these: First, the existing pension and gratuity arrangements for SAF officers are losing their effectiveness as retention tools. About two-thirds of our young officers leave after their first six-year contract. Many do not want to stay on until the age of 40 or 45, as they expect the transition to a second career to be more difficult the longer they stay. The pensionable service scheme cannot adequately compensate them for the short career span in the SAF. The second finding was that while pay for the SAF officers is very competitive with the private sector when compared on an age cohort basis, SAF officers' pay in the later stages of their career only keeps pace with the private sector salaries when compared on a job responsibility basis. The third finding by the consultants was that non-cash benefits in the SAF are not fully understood and valued by the servicemen. The consultants recommended that the compensation and benefits package for SAF officers should be restructured so that our officers are adequately compensated during their relatively short career with the SAF so that they are fully taken care of when they leave the SAF at the age of 40 or 45 to begin a second career. To achieve this, the consultants made three recommendations. First, extend the salary ranges for the Majors and Lieutenant-Colonels in the non-superscale grades. This will mean that high performing officers who have reached their terminal grades will continue to be paid according to job responsibilities. Increments will not be automatic but will depend on performance.”
“On the question of length of national service, our national service is based on the needs of our defence capability. The two and a half years of national service is barely enough to train the soldiers to operate in the missions that they have to perform. When they come in the first year, they are under training. They are not operationally ready. At the same time, the commanders have to go through various levels of command and leadership training to bring them up to the capability that is required for them to lead the soldiers. Therefore, the two and a half years is barely adequate for us to train them in the capability that we want. We are not able to shorten that period any more. 2.15 pm Mr Hawazi asked about manpower policies. Sir, the SAF must be able to continue to recruit and retain quality people. There are constraints unique to the SAF which affect our ability to recruit and retain good people in the SAF. The job nature of the SAF officers, especially in the combat vocations, is particularly onerous, dangerous and demanding. For security reasons, the SAF recruits only Singaporeans. Furthermore, mid-career recruitment is not possible as the officers have to move through the lower levels of command before taking on senior appointments. The SAF career is also a relatively short one, about 25 years, compared with the normal 40 years in the private sector or in the civil service. Our "Keep SAF Young" policy means that most officers have to leave the organisation by about age 40 or 45. To compensate for the above constraints, we have adopted the principle that the terms and conditions of employment for SAF officers should be more than competitive with the market.”
“Sir, first, on Mr J B Jeyaretnam's cut. I wish he was here to listen to Dr Ong Chit Chung's excellent speech and the Deputy Prime Minister's reply to the speech. Also, I wish he had read the Budget book carefully before he moved his cut. He was not sure of his numbers. Let me read what it says in the Budget book for the FY97 budget for the Ministry of Defence: `As a percentage of GDP, the Ministry's total allocation amounts to 4.17%. This is lower than FY96 of 4.23%.' In other words, MINDEF has made an attempt to be cost effective and efficient in our training programmes and manpower management. Dr Ong Chit Chung has quoted an article from the journal, Parameters. This is an independent assessment by a specialist from the Pentagon in the US which concluded that Singapore's defence expenditure is efficiently and effectively spent. Therefore, I do not see why Mr J B Jeyaretnam should be worried about this aspect. However, I would still attempt to answer his question even though he is not here. Singapore's approach to the defence budget is based on our defence philosophy of being prepared at all times for any eventuality. The security situation can change quickly. However, building a credible defence force takes many years of investment in hardware and software. Further, the defence business, like any other business, is subject to ongoing technological advancement as well. To ensure that our forces do not have yesterday's capabilities, constant investment in training of new skills and technologically advanced weapons is necessary. Although defence is of paramount importance, we are also conscious that other national priorities like education and social programmes should not be crowded out. Hence, we have the policy that limits defence spending to 6% of GDP.”
“We will review the allowances from time to time. Unlike regulars, NSFs are not salaried employees. Their contribution to NS is an obligation that Singaporeans must discharge. The responsibility for defence is a shared one. The NS allowance is intended to help defray part of the incidental expenditure incurred by full time national servicemen. Adjustments will be made to cater for changes in the cost of living, eg, rises in transportation and food costs. MINDEF regularly reviews NS allowances to ensure that it keeps pace with the changes in the cost and standard of living. The last revision was made recently. NS allowances will be adjusted again in future should there be a need to do so. MINDEF will assist NSFs in other ways. The SAF Central Welfare Council would extend interest free loans to eligible NSFs so that they will also be able to benefit from the Government's asset enhancement schemes. Over the past five years, the Central Welfare Council had extended four interest free loans to NSFs, three for the share ownership top-up schemes and one for the SingTel second share offer. All these ensure that the NSFs will continue to benefit from the Government's various asset enhancement schemes in recognition for their contribution to national service.”
“The soldiering skills and battle drills are done at the functional training phase. The tactical training phase is to integrate all the levels of the unit and the command in the conduct of full troop exercises. Over the years, we have reduced the duration of both local and overseas in-camp training to increase efficiency. For example, training in Brunei has been reduced from 22 days previously to 19 days currently. It is true that when soldiers come for in-camp training, they may have to spend some time waiting for activities to happen. This is because in the past, we were training in small units and formations and, therefore, the national servicemen came in, did their training and off they went. Nowadays, we emphasise more on combined arms training and joint training with the other services in the SAF. And as we train in a larger formation, many more activities are concurrently happening which may not affect that particular unit at that particular point of time. We recognise this as a problem of NSmen spending some time waiting while other activities are happening. We are conducting a study to see how we can minimize the need for them to wait by, for example, employing simulators to simulate their activities while concurrent activities are happening so that we do not have to call in so many NSmen at one time. We will continually refine the entire NS training system to facilitate the attainment of higher standards of training through mission oriented exercises, exploitation of training opportunities and technologies, optimising of training programmes and improvements to existing infrastructure and facilities. All these will ensure that the time spent on training by our NSmen are meaningfully utilised. Sir, Mr Ravindran asked about National Service allowances.”
“And to better engage their interest and to maximise their contributions, MINDEF has also entrusted NSFs with heavier responsibilities and widen their job scope. For example, many are employed as platoon sergeants which were traditionally held by regular soldiers. The NSFs have performed very well in their expanded roles and have discharged their responsibilities very well too. At the same time, MINDEF must continue to motivate these highly educated soldiers when they are in NSF and during their NS training. Their aspirations and expectations will be higher and more difficult to manage. It is therefore important for MINDEF to offer our wholehearted support and encouragement to our NSFs and NSmen. MINDEF appreciates them and has implemented most of the recommendations of RECORD II to give greater recognition to our NSmen for their contributions to Singapore's defence. This, together with the measures I mentioned earlier, will enable MINDEF to cope with the trend of low manpower resources and take advantage of our servicemen's improved educational qualifications. Mr Sin Boon Ann asked about optimising the time spent by NSmen during their in-camp training periods. Sir, our NSmen are our frontline troops and they form the bulk of the SAF. NSmen train seriously during their in-camp training that is designed to be mission-oriented and efficiently conducted. The NS training approach comes in three phases. (1) the commanders' training phase, (2) the functional training phase, and (3) the tactical training phase. NSmen in the various years of training are called up only for the appropriate level of training and this is in the form of high-key and low-key cycles. 2.00 pm The commanders' training phase is mainly to enhance the commanders' operational proficiency.”
“We constantly review and streamline work flow and procedures to ensure that manpower usage is optimised, for example, by using computers and office automation systems to cut down on manpower. (d) Improved training. We have revamped our Basic Military Training (BMT) system so that it is more relevant to the NSF's deployment and their eventual role during their National Service period. Over the years, we have also restructured BMT and worked closely with the schools and polytechnics to improve the fitness levels of pre-enlistees to save time and resources in training them to the required fitness when they enter BMT. More importantly, we have minimised the attrition of combat-fit personnel due to training injuries. In addition, we have also enhanced the systems for selecting the officer cadets and specialists to ensure that the best and the brightest in every cohort assume positions of leadership and responsibility. (e) Refining the medical classification system. We have also started to assign servicemen according to the specific needs of the appointments that they are assigned to. Servicemen who are able to, but would be deemed not fit for combat under the previous classification system, will be deployed to less onerous combat appointments as long as they are deemed medically fit to do so. Combat-fit NSF resources are then deployed in the areas which need them most. Sir, the improved educational profile of our NSFs pose a challenge to MINDEF. It will be easier to train NSFs to handle the most sophisticated weapon systems and equipment which we acquire. They will also be able to master superior tactics because they can absorb the instructions and tactical concepts better.”
“Sir, Dr Ong Chit Chung asked for a review or stock taking after 30 years of National Service. Sir, the SAF is confronted by two trends - declining birth rates and improving education levels - both of which greatly affect the way the SAF trains and deploys full-time National Servicemen. The size of our NSF cohort has shrunk from 32,000 some 20 years ago to about 20,000 now. It will remain low for the next few years. About 60% of today's cohort have post-secondary education compared to only 22% in 1982. By the year 2005, 70% of the NSF cohort is projected to have post-secondary qualifications. Both trends pose immense challenges to the SAF. MINDEF recognises them and has implemented various measures to optimise the use of manpower in the SAF. I will briefly mention some of these measures. (a) Commercialisation of support services. Wherever possible, we have commercialised non-combat support services. In addition to reducing the demand on NSF manpower, some of the support services are assigned to female regulars, civilians or non-uniformed SAF personnel. (b) Technology upgrade. Weapons and equipment have been upgraded to reduce the need for manpower and to increase their effectiveness. For example, the new upgraded average FH2000 howitzer in the Artillery needs only eight men to operate instead of the 12 men needed for the old artillery system. MINDEF also puts greater emphasis on research and development to ensure that the SAF is able to exploit technologically advanced weapon systems to our advantage in the battlefield. Increasingly, new training technology such as simulators and computer-aided instructions are being used. (c) Raising productivity.”
“Sir, grassroots work in the community is location specific. Charitable work takes many forms. There are those which happen in the centres set up in various parts of the island and many volunteers go to those centres to do their work. There are also centres which are set up within different constituencies which not only serve those constituencies but other people who are in need. It is very difficult to say who deserves what kind of reward. Again, may I say that it is not a reward for grassroots leaders and I think we should separate the two issues. HUMAN ORGAN TRANSPLANT (AMENDMENT) BILL Introduction and First Reading 12.53 pm”
“Sir, it is incorrect to perceive priority allocation of HDB flats to grassroots leaders as a reward. If it is so perceived, then it is a wrong perception. It is part and parcel of community development within their housing estates. I have never made a comparison between charitable work and grassroots work. It is incorrect to say one is more important than the other. They are both important and they are both recognised in many ways, for example, in National Day honours, in various other events organised to appreciate their contributions. Priority allocation of HDB flats is not a reward. So I do not think we should put them together and discuss them in the same manner.”
“Sir, the priority allocation of HDB flats to grassroots leaders is not a reward. It is not to recognise their voluntary work. It is part and parcel of the role of grassroots leaders in serving the whole community within which they live or serve. Grassroots leaders have to spearhead Government campaigns, gather feedback from the residents to be passed on through the various channels to the Government Ministries, organise events to celebrate traditional and cultural events, festivals and many other things of this sort. Where they live is important. There are many other voluntary organisations and they are doing very good work. We should appreciate them, but recognise them in other ways rather than to give them priority for flats.”
“Sir, nearby to Mr Low's constituency, he may find large tracts of land being cleared and flats that are being built, for example, in the Punggol area and Sengkang area. When the new residents move in, they need grassroots organisations to serve them too.”
“Sir, I am afraid Mr Low did not understand my answer. I will say it again. For those who move to new estates, these are brand new estates, and there were no residents before, but now there may be 10,000-20,000 new residents coming in over the years, so they need grassroots organisations to serve the community there. How best to then form those organisations? From among those people who have no experience in grassroots work or should we not get people who have many years of grassroots experience to start off those community organisations? Therefore, those people who have served before in their old constituencies, who have opted to move to new estates, get the priority to go into those new estates and they are then invited to kick off those community organisations there, thereby continuing their work as well as bring experience to the new organisations that they start.”
“The answer to the first question is yes. As to his second question, priority allocation of flats to grassroots leaders is part and parcel of their work in the community. Those who get priority allocation of flats within the constituency they serve or nearby to the constituency they serve will continue to work within the constituency. They get priority allocation so that they do not have to move far away and have to travel long distances to get back to the constituency to serve. Those who opt to go to new estates are then contacted and they set up the RCs and CCCs in the new estates that they have moved into. We do not then have to gather people who have no experience in grassroots work to start off those organisations.”
“Sir, the Prime Minister said in his National Day Rally speech on 18th August 1996 that the Government will continue to spend more time, energy and resources on public housing. He also stressed that public housing will continue to remain affordable and revealed that the Government will do more to help the lower income households to own their flats. Following this, the Minister for National Development has, on 22nd August 1996, explained the four-pronged approach that the Government has put in place to help the lower income households own their flats. The approach comprises: (1) sale of 3-room flats, purchased by the HDB from the open market; at discounted prices; (2) sale of 4-room budget flats; (3) sale of rental flats to sitting tenants at discounted prices; and (4) priority allocation of 3- and 4-room flats to HDB rental flat tenants. 1.30 pm”
“Mr Speaker, Sir, before 1987, all HDB commercial and industrial premises were let out on monthly tenancies. This practice, however, did not allow tenants to plan for the longer term, as the tenancies could be terminated or their rentals revised within one month's notice. HDB revised the rental policy in 1987. All the existing tenants were invited to convert their monthly tenancies to fixed term tenancies at their existing rents. Tenants could opt for terms of one, two or three years. The rent was fixed for the duration of the term, but was adjusted in subsequent renewals of the tenancy. To safeguard tenants from any large increases in rents, the rental revisions for the first and second tenancy renewals are capped at a maximum of 30% for a three-year tenancy. Upon the third tenancy renewal, the rental will be revised to the full prevailing market rent. This rental policy gave HDB tenants up to nine years to adjust to market rents. Despite the nine years grace period, some shop tenants could still face big rental increases when their tenancies are due for third renewal. Arising from this feedback, the Ministry of National Development will look into the current rental policy to see how best to ease the financial impact on these tenants. FIRST-TIME APPLICANTS FOR HDB 3-ROOM FLATS (Increase in grants to lower income families) 12. Mr Low Thia Khiang asked the Minister for National Development whether the Government will increase the grants to lower income families who are first-time applicants to help them purchase 3-room flats either from the Housing and Development Board or the open market.”
“Sir, it is unlikely that we will go along this direction because the compensation formula and packages are long established ones. They have worked well in the past and this acquisition exercise is another public project for the benefit of society which is applied in the same manner as what we have done in the past. COMPULSORY ACQUISITION OF LAND NEAR FARRER PARK MRT STATION (Extension of deadline to vacate premises) 5. Mr R. Sinnakaruppan asked the Minister for Law if residents affected by the compulsory acquisition of land for the North-East MRT line, near the Farrer Park MRT Station, will be given till December 1997 to vacate the premises, as many of them feel that they may be unable to find alternative accommodation by the given deadline, which is March 1997. Assoc. Prof. Ho Peng Kee (for the Minister for Law): Sir, of the 106 affected lots near the proposed Farrer Park MRT Station, 55 lots are required for the construction of the Farrer Park Station and realignment of Race Course Road and 51 lots for the widening of Tessensohn Road and comprehensive redevelopment of the area. All these lots are scheduled for possession by March 1997. Sir, Land Transport Authority has advised that in view of the tight schedule for the construction of the North-East line, the 55 lots required for the construction of the Farrer Park MRT station and the realignment of Race Course Road need to be surrendered by March 1997. However, as for the 51 lots required for the widening of Tessensohn Road and comprehensive redevelopment, the date of possession can be deferred to December 1997.”
“Sir, we do not have such a scheme at the moment and we have not been thinking along those lines yet.”
“Sir, this formula for compensation on an encumbered basis or vacant possession basis is a well-established one. It has been applied to the farms that had been resettled, the squatter settlements and the various kampongs that we had in the past. It is a long established principle and we are consistently applying this in a fair manner and this acquisition exercise should not be any different from the other exercises.”
“Sir, had their homes not been acquired, they would not have been eligible to join the HDB queue without the 30-month debarment period. If they opt for full compensation, which is going to be calculated based on the statutory compensation plus ex-gratia payments, that would bring it to the full value of their homes. The alternative accommodation for them would have to be bought from the open market or, if they wish to join the HDB queue for subsidised housing, they need to wait for a 30-month debarment period, which is the same for all the other owners of private properties.”
“Sir, as defined under the Town Councils Act, the town council is to manage, maintain and improve common properties within the HDB estates in a town. Also, under the Act, the monies received by the town council should only be spent on the common properties within the town, so that these monies are not misused for any other purposes outside of what is defined under the Act. But I do understand the concerns raised by Mr Chng. For example, in building a linkway between HDB blocks of flats, one can only build up to the boundary of the common area, and if the linkway is supposed to be attached to a bus stop, sometimes there is a gap between the bus stop at the end of the linkway, because that is where the boundary falls, and money cannot be spent outside of this boundary to build that stretch of the linkway. Another example could be that of the town council's contractors who are engaged to do grass-cutting. They cut the grass of the common areas, but only up to the boundary where the common areas are, and beyond that, if it is a drainage reserve under the Ministry of the Environment, there is a patch of grass there, the contractors cannot go and cut that place because money cannot be spent there. These are genuine concerns and my Ministry is indeed prepared to look at amendments to the Town Councils Act to refine the financial procedures. When we do so, we will invite Mr Chng and his GPC members to give us more inputs and suggestions.”
“Sir, Mr Cheo is pursuing his line of questioning on a wrong premise. We do not force people to move out of their flats. PASAR MALAM (Amendment to guidelines) 8. Mr Chiam See Tong asked the Minister for the Environment whether he will amend the guidelines to hold pasar malam by giving equal treatment to all grassroots organisations and Town Councils in its allocation of pasar malam quota and to stop its practice of allocating two years' pasar malam quota at one time.”
“This does not involve the question of principle at all.”
“Sir, Mr Cheo suggests that it is very disruptive for a person to move to another place of accommodation. There are more than 30,000 transactions a year where people move from one flat to another flat and there are lots of renovation going on, some very costly, and the people seem to be doing this rather than staying where they are all the time. So this may not be a big concern at all and he should not be worried about it. He suggests that since the numbers are small, we should accommodate them. The point is not whether the numbers are big or small. The point is the principle that we want to establish here. Sir, HDB does not build accommodation. HDB builds homes for families, for people to bring up their families in a clean, hygienic and conducive environment for the development of their children. If we agree to this principle, then we should build more homes for family units. For single people in those circumstances, we will try to accommodate them in whatever way we can within their circumstances. But on Mr Cheo's first concern whether we will acquire those flats, we will not. Mr Cheo Chai Chen( In Mandarin): I would like to ask the Senior Parliamentary Secretary this question. Does the Senior Parliamentary Secretary not agree that such single persons will also get married eventually? So why must he cause him the trouble of moving house in the first place? The next question is: From the legal point of view, there are many circumstances which are not specially created because of a natural course of events, for example, the parents have passed away and the flat is handed down to the children, or one of the children gets married while the other is unmarried, etc. So in circumstances of this nature, I think special consideration should be given.”
“Sir, Mr Cheo need not be concerned that HDB will compulsorily acquire the flat. Time and opportunity are given to persons in such circumstances to find accommodation, or to invite somebody else who is eligible to join him to occupy the flat, or to move out to live with his sibling who has married. In all these cases, if he wishes to sell his flat, he can do so. Mr Cheo Chai Chen( In Mandarin): I would like to ask the Senior Parliamentary Secretary whether he is aware that if a person is asked to move out, it will cause him great inconvenience because he has to move a lot of things out of the flat and he has probably spent a lot of money renovating the flat. He has to start all over again. Why can the Senior Parliamentary Secretary not consider allowing such people to continue occupying the flat? It is fait accompli. It is already an accomplished fact that we must accept. On the other hand, there are not many such cases. So it would not affect the general policy of the Government.”
“Sir, may I suggest that he raise a question addressing a particular institution and I will be able to answer him. Otherwise, we will just spend the rest of the day answering a hypothetical case. CHILDREN BORN ABROAD TO SINGAPOREAN MOTHER AND FOREIGN FATHER (Rationale for not granting citizenship rights) 6. Dr Kanwaljit Soin asked the Minister for Home Affairs if he will explain the rationale for not granting citizenship rights to children born abroad to a Singaporean mother and a foreign father and whether he will consider introducing legislation to amend the law.”
“Sir, again, I am not able to answer this specific question because I have to know the institution concerned and whether it is registered with the Ministry of Education.”
“Sir, there are many kinds of institutions. Some private schools are registered with the Ministry of Education while some are not. There are clear guidelines as to which candidate will be given deferment and this is always consistently applied. So whether a particular candidate from a particular private school will be granted deferment, I will not be able to say at this moment. But there are guidelines provided.”
“Because this is a fair basis. Whatever amount they still owe and for whatever period, they are charged interest for that.”
“Certainly, it is affordable. The loan terms are very generous. Repayment terms are also very generous. They will still remain affordable. In fact, today's interest rates are lower than the rates of a few years ago. On his second question regarding the basis of computation, it is calculated this way. The Government borrows money from CPF account holders at a certain percentage rate and this rate is the one on which HDB loans are calculated. When the CPF account holders are paid X%, then this money is borrowed by the Government and lent to HDB flat buyers and the HDB flat buyers are charged X.1%. This is the basis.”
“Sir, on the Member's first question, the mortgage loan terms are already very generous compared to the private sector. The housing loan rates are between 6% and 7% in the open market. HDB is only charging 3.9%.”
“Sir, I do not know that. I presume there may be if the quantum of the loan is large enough and the repayment period is short enough.”
“Mr Speaker, Sir, HDB finances its mortgage loans with funds from the Government, part of which comes from the Central Provident Fund. HDB's mortgage loan interest rate is thus pegged at 0.1 percentage point above the CPF interest rate. Therefore, when the CPF Board raised its interest rate to 3.82% per annum, the HDB mortgage loan rate was also raised accordingly from 3.2% to 3.92% from 1st July 1995. If HDB purchasers want fixed interest rates, then all CPF accounts will have to be paid fixed interest rates. This will not be fair or welcomed by CPF depositors. The fluctuations in HDB mortgage loan interest rate is no different from the fluctuating interest rates charged by the commercial banks. Notwithstanding the latest increase, the HDB mortgage loan interest rate is still well below the market interest rate charged by the commercial banks, which averages above 6%. The quantum of increase in the instalment payments will vary depending on the outstanding loan balance and the balance of the repayment period. For example, a mortgagor with a housing loan of $100,000 repayable over 25 years will pay an additional monthly instalment of $40. About 75% of those who have taken a mortgage loan with 25-year repayment period will pay an increase of between $1 and $40 per month more; while not more than 10% will have to pay more than $60 extra. For mortgagors who are in genuine financial hardship, HDB will consider each case on its own merits and adopt measures to assist them if they are in genuine hardship.”
“No. This is just one of the factors. COMPUTATION OF VEHICLE'S AGE 3. Mr Heng Chiang Meng asked the Minister for Communications whether he will change the present method of computing a vehicle's age to allow car owners to enjoy the full ten years' validity of their Certificates of Entitlement.”
“Sir, as I told the House just now, shopkeepers of certain precincts or shopping areas have gotten together to propose ways of improving pedestrian traffic, attractiveness of the mall, etc. These proposals are carefully evaluated. After selling the shops to the shopkeepers, they themselves have carried out improvements to their own shops and to the surrounding areas. These are good indications that there will be higher turnover, higher productivity, higher consumer demand and these are factors which will be taken into consideration. Mr Speaker: Mr Low, I will allow you one last supplementary question because we have a long list of Questions.”
“I did not get the question. Is it the measure of productivity?”
“By close consultation with the merchants' and shopkeepers' associations, with the CCCs, RCs and grassroots leaders.”
“After selling the shops, it depends on whether the productivity of that whole precinct, in terms of the retail sector, will be improved.”
“Sir, the CCC advisers do not decide. The CCC advisers only recommend.”