Mohd Ismail Hussein
Singapore
“Although he had requested for an increase in the reimbursement rate, he did not make a fuss when the company retained the same rate. His biggest fear, he says, is if the company chose to switch to courier services if he is deemed to be too costly.”
“For the lower-income elderly Singaporeans aged 65 and above, the Government will be introducing the Silver Support Scheme which will give out between $300 to $750 every three months. For working couples with young children, the Government has pledged to make available more affordable childcare.”
“I thank the Minister for that comprehensive reply. Before the implementation of the cooling measures for the property market, many Singaporeans had taken the opportunity to upgrade their properties, particularly to private properties. Many of them had actually taken floating rate packages.”
“I thank the Parliamentary Secretary for the response. I have one supplementary question. But just to give some context to my question, I have attended a support group session for people experiencing debt problems. Invariably, there are a lot of emotions, psychological trauma and shame involved.”
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Every one of 33 lines we hold for Mohd Ismail Hussein, in date order, each linked to its source. Free to read, in full, without an account.
“Can the Ministry provide information on how many users there are in Singapore, in terms of commercial and personal uses, how many local sellers of drones there are and whether there are any incidents, accidents or near-misses involving drones? Page: 85 Secondly, given that offences related to the use of drones are strict liability offences, there should be a greater effort by the Ministry to educate the public on the "do's" and "don'ts" of using drones as well as better information on where the protected or restricted areas in Singapore are where flying drones are off-limits. Does the Ministry have any plans to educate the public and can the Ministry share what these plans are? Can the Ministry provide more clarity and specifics on the use of drones in residential areas, schools, high-rise buildings, stadiums, parks and so on, especially where there is a higher possibility of causing injury to people or damage to properties? Thirdly, there are already businesses out there exploring the commercialisation or commercial use of drones, for example, in film-making, photography, journalism and so on. Does the Government have any plans to regulate the sale of drones and to what extent will it be regulated so as to strike a balance between encouraging innovation and ensuring the responsible use of drones? My last question is on insurance coverage. What is the current state of insurance coverage in Singapore with respect to drones? Are these adequate to provide protection to the public against damages caused by drones on persons or property? 5.05 pm”
“Mdm Speaker, most Singaporeans, myself included, are not very familiar with "unmanned aerial vehicles", "remotely piloted aircraft", or what one would normally call "drones". If you ask an average person on the street what a drone is, the answer you would typically get is that it is something used in the military or as recreational use by a small group of hobbyists. However, as I have lately discovered, there is more to these devices than its use in the military or as a hobby. Most recently, in Nepal, drones were used in rescue missions to photograph and map areas affected by the earthquake in Nepal. It proved useful in aiding crews and rescue workers to plan and pin-point areas to focus on. Due to its versatility, drones with cameras attached have also found its uses in law enforcement, scientific research and journalism, just to name a few. That being said, the use or misuse of drones can also pose a danger to the public and to our security. According to an in-depth report by the Washington Post, there were more than 400 major drone crashes since 2001. The reality is that drone technology is still evolving. The price of drones is falling, which makes it affordable to more people, and people are finding better and more creative ways of using them. The risk posed by drones to our security and public safety is also very real and other countries have either implemented regulations or are embarking on one. It is, therefore, timely that we introduce this Bill to provide clarity on the regulations pertaining to the use of drones and I fully support this Bill. There are a few areas, however, that I wish to seek clarification from the Minister. Firstly, there seems to be very little data on how prevalent the usage of drones is in Singapore.”
“However, there will be some occupants who may not be comfortable to let in strangers even if they are HDB officers, especially if the flat owner is not around and have given them instructions to not allow these officers into the premises. In such situations, I hope HDB officers will be mindful to engage occupants with due respect and give occupants proper assurances. Aside from empowering HDB with the power to enter premises with or without a warrant, there are other areas which I hope HDB can provide more clarification. One of the Page: 78 clauses states that HDB will be able to claim the cost of repairs from owners. I think this may create a problem, especially if the flat owners were not consulted and the cost turned out to be high. Another clause states that HDB is not liable to compensate the owner for any losses incurred due to damages caused at the premises. For both these scenarios, I hope the Ministry can reconsider and provide assistance to cover the cost partially, if not wholly, for those who may have difficulty to cope with the expenses. Another concern I have is the possibility that criminals may pose as HDB officers to gain access to flats and commit a crime. I hope there are sufficient education efforts and safeguards to protect residents from those who may take advantage of unsuspecting residents. (In English): Madam, I would conclude in English, please. While I support the Bill, I hope HDB will provide clarifications on some of the concerns that have been raised today and give the public greater assurance that the well-being of the public is at the heart of these proposed amendments. 5.05 pm”
“The Bill states that HDB will claim from the owner the costs incurred in the repairs. For costly bills, this may be problematic. The owner may dispute that he or she was not consulted on the potential costs of the repair work and may not have the funds to pay for it. How then will HDB handle such a scenario? The fifth concern is damages done as a result of forced entry. The amendment Bill states that HDB is not liable to compensate the owner for any losses incurred due to the damage done at the premises. I think this is an area that may cause much unhappiness to residents as it appears unfair to owners who may not be aware of HDB's intention to enforce entry. Can HDB explain the basis for this and will HDB consider on a case-to-case basis to compensate owners, for example, in hardship cases? Finally, can HDB explain the justification for the 24-hour notice, which I find, just like other Members here, to be too short? Will HDB consider a longer notice period to give owners more time to respond? Madam, in Malay, please. (In Malay): [Please refer to Vernacular Speech.] Sometimes, we are unfortunate enough to experience cracks on walls or the ceiling of our HDB flats, spalling concrete or water leakages because of renovation work done by our neighbours. In such situations, what can flat owners do? With the proposed changes to the Housing and Development Act, HDB will have greater powers to gain entry into HDB flats to investigate the cause of the problems and to undertake repairs urgently. This is beneficial to residents and residents should take advantage of this change by proactively alerting HDB of renovation works which may jeopardise the structural integrity of the building and create danger for residents.”
“Madam, from the standpoint of residents, there are a few concerns, some of which have already been raised by hon Members previously and I hope for some clarifications on these areas. Firstly, it is on communicating to the public on the need and intent of the Bill. A home is a sanctuary and I think residents will have concerns on invasion of their privacy. Hence, HDB should clarify on the circumstances where such forced entry is warranted and why it is justified, so that the general public can clearly understand the need for such forced entry. Secondly, occupants that are present during the forced entry should be treated with dignity and decorum. This could be a live-in maid, an elderly, the incapacitated or a child who may feel intimidated by the presence of officials. I hope HDB implements a code of conduct on the behaviour of the officers in engaging occupants present during the forced entry, so as not to cause undue distress to these persons. It is also ideal to have officers who can converse in dialect or ethnic Mother Tongue to communicate with non-English speaking occupants. My third concern is the probability that this amendment will create an opportunity for criminals to gain access to residents' premises. I think there is a danger that parties with Page: 77 criminal intent may take the opportunity to gain access to premises which may then result in undesired and serious consequences. It may be worthwhile to consider providing a hotline for owners or occupants to verify the identity of the officials. Owners or occupants should be encouraged to verify the identity of officials and the purpose of gaining entry, as identity cards and documents can be forged and can fool unsuspecting residents. My fourth concern is on potential dispute on costs of repairs.”
“Mdm Speaker, thank you for this opportunity to speak on the proposed Housing and Development (Amendment) Bill. Page: 76 Having lived in a low-floor HDB unit for 10 years, I can fully appreciate the distress and anxiety suffered when flat owners experience cracks on ceiling or walls and water leakages, be it in our bedrooms, kitchen or living room, causing damage to our furniture and fittings. I remember at least two occasions when the unit directly above mine did major renovation works for months, which created some concerns for us. In such a situation, we would have been grateful to have a hotline for us to report any damages or leakages in our unit and would have appreciated that such problems are resolved promptly. With the proposed amendment, HDB will be able to do more to help residents resolve such problems quickly. Madam, with this Bill, HDB will have greater powers in entering premises, with or without a warrant, to investigate and to carry out urgent repairs. But I feel that central to this amendment, first and foremost should be the residents' well-being and safety and not so much to make it more convenient or easier for HDB to carry out their work. I also feel that giving more powers to HDB to gain access to residents' flats is a double-edged sword because, on the one hand, it can please residents whose problems get resolved, but, on the other hand, it can upset those who are unhappy with the intrusion or who feel unfairly treated. I, therefore, hope that HDB look carefully and thoroughly into residents' concerns, address them in a fair manner and ensure that, with these new powers, HDB can gain more trust from the public instead of more distrust.”
“Although he had requested for an increase in the reimbursement rate, he did not make a fuss when the company retained the same rate. His biggest fear, he says, is if the company chose to switch to courier services if he is deemed to be too costly. When asked what he would do if motorbike COE prices continue to rise and he had to buy a new bike, he said that he may need to stop working if he cannot afford a motorbike. Madam, we should spare a thought for those whose livelihood may be affected by the rise in cost of motorbikes. Can the Ministry, therefore, look into how motorbike costs can remain affordable for those with modest income? Additionally, can the Ministry provide its insight into the cause of the spike in Category D COE prices and whether this spike is likely to be temporary or permanent? ERP on Saturday”
“Mdm Chair, I echo the concern raised by hon Member Ms Lee Li Lian on the rising cost of Category D COEs. Category D COEs for motorcycles has almost tripled lately, from $1,989 in January 2014 to $5,500 this month. In contrast, the price of Category D COE hovered mostly between $1,500 to $2,500 in the three years before that, from January 2011 to January 2014. For the longest time, motorbikes are a popular choice for students, first-time employees, the elderly and blue-collar workers. They are affordable, convenient and mobile. And although it has a reputation for being unsafe, with good driving habits, a biker can generally avoid getting into serious accidents. This group of bikers tends to be of modest income. There is also the affluent group who go for pricier bikes like Harley Davidson, Ducati, KTM and BMWs, and who bid for the same Category D COEs. More recently, I understand that there is a trend for middle-income earners, who are put-off by the stratospheric prices of cars, to switch to motorbikes. But the group which will be hit hardest by the rising Category D COE prices will be those whose job requires frequent travel, such as messengers and despatch riders. Should current price trend continue, motorcycles may no longer be affordable for this segment and, for them, it is a threat to their livelihood. Page: 76 I spoke to an elderly despatch rider who has worked for more than 30 years in the same company. He shared that other than reimbursements for parking and petrol, he had to bear all other costs, such as the cost of motorbikes, maintenance cost, road tax, insurance and even the occasional parking fines. He shared that although petrol prices have gone up, he is still stuck with the same reimbursable petrol mileage rate set more than 10 years ago.”
“We think this is important, too, so that our social workers on the frontline, when they counsel and reach out to families in need, they themselves can be better equipped to Page: 93 support those who seek help. We will focus on our young, keeping in mind that these values of financial literacy are set early in life. MoneySENSE is in discussion with our partners to bring financial literacy talks to tertiary students as they prepare to start work. MoneySENSE will also reach out to Singaporeans at key life stages where they need to make major decisions. For example, we are going to engage young couples about to settle down and start their families so that they can properly plan their wedding expenses and purchase a flat that they can afford. We will equip young adults who are about to join the workforce so that, as they start their work, they would also have basic financial skills and knowledge. Our overall aim is to ensure that important financial tips are delivered to Singaporeans in a targeted, timely and helpful manner. Madam, financial education is a continuous journey that requires sustained effort and with continued support and active participation of our partners. More importantly, financial education is not just about knowledge. It is really about encouraging the right values and beliefs and, working together with our partners, we believe we can achieve a more secure financial future for ourselves and our families. Smart Nation Programme Office”
“For example, to reach out to Singaporeans in the heartlands, MoneySENSE has organised roadshows at public libraries and community clubs. The response to these roadshows has been positive. Besides face-to-face engagement, MoneySENSE also puts up content on social media. This includes guides to help consumers manage their money, plan ahead and learn more about financial products. There are also consumer alerts to warn the public about investment scams and the pitfalls of dealing with unregulated entities. Going forward, the Member asked about what are our outreach plans. MAS is, indeed, working with various stakeholders to implement a more comprehensive financial education roadmap for the next few years. We will soon start a campaign to educate the public about upcoming changes to the life insurance landscape. These include the setting up of an online web aggregator where you can easily compare life insurance products online and the introduction of lower cost direct purchase insurance products which consumers can buy directly from the insurers. Other themes that we have lined up for the campaign include educating the public about the pitfalls of over borrowing, encouraging consumers to save and invest wisely and warning consumers about the risk of investing in unregulated investment schemes. We will also work with partners to strengthen our outreach with specific segments, such as seniors and other vulnerable members of society. For the outreach with seniors and retirees, we think it is important so that their golden years can be spent without unnecessary financial stress. We will step up financial education programmes for social workers and counsellors.”
“Fourth, MAS has granted banks the flexibility not to suspend credit for borrowers who already exceed the borrowing limit. These borrowers have up to June 2019 to make the transition. I should also clarify that the borrowing limit does not apply to loans for medical, education or business purposes. Finally, MAS is, indeed, reviewing the implementation timeline for the borrowing limit on unsecured credit and it intends to make further adjustments once the full data on the number of affected borrowers is in. The details would be announced early next month. Besides addressing the concerns of affected borrowers, we also have to do more work upstream, in terms of financial education and planning, which was something highlighted by Page: 92 Mr Mohd Ismail. Financial education is a multi-pronged effort involving the Government, the industry and the community. It takes many parties to get this right. Within the public sector, for example, the CPF Board has been educating the public on its schemes for retirement and healthcare planning. In schools, all lower Secondary school students now learn some basic modules of money management and budgeting. We also have consumers and investors associations, like the Consumers Association of Singapore, the Security Investors Association of Singapore as well as many non-profit organisations and self-help groups, like CDAC, MENDAKI and SINDA. MAS will continue to work closely with these different partners to set up our efforts in financial education and we are happy to work with other non-profit organisations, as suggested by the Member. We also have the programme called, MoneySENSE, where we provide financial education through diverse channels, customised to the needs of different segments of society.”
“A vast majority of borrowers would not be affected by the aggregate cap on unsecured borrowing from banks that would come into effect in June 2015, as they had borrowed within prudent limits. However, an estimated 4% to 5% of borrowers may be above the 12-month borrowing limit. MAS is getting from the Credit Bureau a full and more accurate estimate of the number of affected borrowers by the end of this month. I agree with Ms Foo that affected individuals will need help to adjust as well as more time. MAS has been working closely with key lending banks and Credit Counselling Singapore (CCS) to facilitate this transition. Let me outline some of the things that we are doing. First, since last year, banks have been reaching out to borrowers who may be affected to update their income records so that they will not inadvertently lose access to credit as a result of outdated income information. I encourage borrowers to update their income records with their banks to avoid any disruption to their credit facilities. Second, we do need realistic solutions for borrowers who have accumulated significant unsecured debts above their annual incomes, as suggested by Ms Foo. The Association of Banks in Singapore (ABS), the leading retail banks and CCS have, indeed, been working on a debt repayment solution for these borrowers. The ABS would be announcing the details of this scheme early next month. Third, CCS has significantly ramped up resources to counsel and help indebted individuals who are affected by the new rule to manage their debt downwards in an orderly fashion. This requires some building up of capabilities and resources within Credit Counselling Singapore and they are doing so.”
“Participants will have opportunities to engage regional policymakers, key corporate leaders and fellow financial sector peers. The AFLP will be launched in the second half of this year. Madam, remaining open to the best global talent while building a strong Singapore Core of Singaporean professionals and leaders in finance is crucial in ensuring our continued success as a financial centre. I would also add that while there is this perception about foreigners in our financial sector, let us not downplay the many Singaporean talents we have who have succeeded on their own steam and who are already taking up leadership positions in the financial sector. If you look across many of the banks in Singapore, Citibank, JP Morgan, Deutsche, UBS, Julius Baer, Barclays, the country heads are Singaporeans and it is also very encouraging to note that Singaporeans are leading banks overseas as well. Standard Chartered Indonesia is led by a Singaporean; JP Morgan's trade finance securitisation department in London is headed by a Singaporean. So, we have talents in Singapore in the financial sector and they have succeeded, they are doing well, we engage with them very closely and they acknowledge that our measures are having an impact within the sector and, progressively, we are confident that we can build up a good pipeline of Singaporean talent in the financial sector. MAS takes this work very seriously and we will work with the industry to invest in Singaporeans who are committed to a career in the financial sector. 3.15 pm Page: 91 Finally, Madam, let me touch on our household credit situation and the importance of financial planning. The overall debt situation in Singapore remains healthy.”
“DBS has launched four new programmes aimed at grooming Singaporean diploma and degree holders for careers in retail banking, SME banking and customer service. Barclays has introduced a new apprenticeship programme, where Polytechnic graduates are employed in entry level positions for business units, including operations, human resource and finance. Citibank and NUS recently collaborated to launch a Transaction Banking module in the Business School programme. So, these are just a few examples of things that have started. Within MAS itself, we also have several initiatives to develop Singaporean finance professionals. For example, we provide subsidies to support professionals in acquiring deep expertise as well as to develop cross-functional capabilities. These are done through the Financial Training Scheme (FTS) and the IBF Standards Training Scheme (IBF-STS). Page: 90 We provide scholarships to Singaporeans to develop in specialist tracks like quantitative finance, risk management and information technology in finance. These are offered under the Financial Scholarship Programme (FSP). So far to date, 170 FSP scholarships have been awarded. MAS works with financial institutions to develop programmes that also develop professionals with more cross-functional exposure within their financial institutions as well as to create more overseas exposure for these individuals. These programmes are aimed at preparing Singaporean professionals for possible future leadership positions. In particular, MAS has been working with academic institutes and industry to create a new Asian Financial Leaders Programme (AFLP). The AFLP aims to develop leadership capabilities geared towards operating and managing in Asian markets.”
“Next, I turn to how we are developing Singapore as a key financial hub for the region and also creating opportunities for Singaporeans to have good and rewarding careers in financial services, a point which Ms Sylvia Lim made. To achieve this, we must remain open to the best regional and global talent while, at the same time, do our utmost to build a strong Singaporean Core in the finance sector. So, it is about getting our balance right. I am very glad to hear just now Ms Lim herself saying that we must remain open to talent because, if we do not, there will be disinvestments and job destruction which will be detrimental to Singaporeans. How then can we go about strengthening the Singaporean Core and what have our efforts yielded? Under the SkillsFuture initiative, MAS and the Institute of Banking and Finance (IBF) are working with the financial industry to chart the future skills needed and systematically equip our people with these skills. First, we will provide learning pathways and training opportunities, so that Singaporean finance professionals at all levels can tap on the SkillsFuture measures to pursue mastery in their respective fields. We have already started this, as the hon Member highlighted, and, with SkillsFuture, this will give it further impetus, going forward. Second, MAS has been engaging the top leadership of key financial institutions on the need to build a stronger Singaporean Core and to maintain robust HR practices that are merit-based and also to safeguard against discriminatory hiring. The response has been positive, with many proactively strengthening their Singaporean talent base and I will cite some examples.”
“Overall, the MAS Core Inflation is projected to be 0.5% to 1.5% for the whole of 2015, lower than the 1.8% recorded last year. The CPI All-Items inflation is expected to average minus 0.5% to 0.5% in 2015, compared to 1.0% in 2014. So, it was against this backdrop of a more benign inflation outlook for 2015 that MAS reduced the pace of appreciation of the Singapore dollar NEER policy band in January. I want to clarify and emphasise that the Singapore dollar NEER policy band is not on a path of depreciation. It remains on a modest and gradual appreciation path which, MAS has assessed, would secure the gains already made in bringing down inflation. As MAS manages the Singapore dollar exchange rate against the basket of currencies within its policy band, the gradual appreciation stance does not preclude short-term market fluctuations, particularly movements in bilateral exchange rates of the Singapore dollar against other currencies. It is important not to confuse market movements in the Singapore dollar against the US dollar, for example, as indicative of MAS' policy stance. Nor does the Singapore dollar-US dollar exchange rate, or any bilateral exchange rate for that matter, have a greater impact on inflation than the broader Singapore dollar NEER movement. Indeed, there are important trade-offs from any change in policy settings, as Mr Inderjit Singh has highlighted. That is why MAS has repeatedly emphasised that an excessive weakening of the domestic currency will only lead to higher inflation. So, I would like to assure Members that MAS will stay vigilant and will continue to closely monitor the impact of external and domestic price developments across a range of consumer goods and services Page: 89 in our economy.”
“Secondly, can the Ministry provide an update on their strategies to improve outreach to the segments that I have described that may be more at risk or has shown a lack of interest in financial literacy? Thirdly, for non-profit organisations who are keen to contribute in the outreach efforts, are there any forms of assistance that are available for these organisations to tap into, and can the Ministry elaborate on what they are? The Minister for Culture, Community and Youth and Second Minister for Communications and Information (Mr Lawrence Wong): Mdm Chair, let me start by addressing Mr Inderjit Singh's questions about the Singapore dollar and the impact on inflation. I will start by giving the overall context of CPI inflation in Singapore. It has come down considerably in recent months, reflecting an easing of both external and domestic price pressures. The main driver has been the plunge in global oil price from an average of Page: 88 US$93 last year to US$49 so far this year. Inflation in the countries we import from has also been largely benign. Reflecting these external developments, overall import prices in Singapore fell by 8.7% year-on-year in the fourth quarter of 2014, which was the steepest decline since mid-2009. On the domestic front, while there are cost pressures stemming from a tight labour market, the pass-through to consumer prices has been generally moderate. Enhanced medical subsidies, including those under the Pioneer Generation Package, have also led to a one-off reduction in the prices of healthcare services. These developments are expected to continue to exert downward pressure on inflation in the months ahead, although some pick-up in price increases could be expected in the second half of the year as oil prices recover to some extent.”
“Mdm Chair, financial literacy can be defined as a set of skills and knowledge that allows an individual to make informed and effective decisions in managing their finances. In today's world of easy access to credit, it is easy for someone to fall into a debt trap, as described by hon Member Ms Foo Mee Har. The Government is fully aware of these Page: 87 concerns and has launched MoneySENSE in 2003 with the objective of equipping all Singaporeans with the necessary capabilities to manage their finances. It is encouraging to note that according to a 2005 survey by MoneySENSE, Singaporeans have a fairly healthy attitude towards basic money management, financial planning and investment matters and that the majority of Singaporeans do save, do monitor their spending and are, generally, responsible in the use of credit. Most Singaporeans also recognise the importance of financial planning and have done some basic level of financial planning. Not so encouraging, however, from the same survey was that as much as half of the respondents indicated a lack of interest in financial education, with about a third of these citing that they did not view financial education as a priority. The Malay/Muslim community has also recently done their own survey looking into debt issues within the community. Their findings bear some similarities in that, while the debt issue was not alarming, the group called Professionals, Managers, Executives and Technicians is found to be a risk group due to their access to credit. This is basically indicative of a group that is having a lower level of financial literacy. I have, therefore, three questions for the Ministry. Firstly, is there a more recent update on the state of financial literacy among Singaporeans?”
“For the lower-income elderly Singaporeans aged 65 and above, the Government will be introducing the Silver Support Scheme which will give out between $300 to $750 every three months. For working couples with young children, the Government has pledged to make available more affordable childcare. These are, indeed, good measures which will benefit the community. However, concerns still remain, especially for those with young families to bring up. Will we still be able to afford a house? Will we have sufficient funds to take care of our children's education and growing up needs? I, therefore, hope that the Government will continue to ensure that prices for housing and cost of education remain highly affordable. (In English): Madam, I would like to applaud the Deputy Prime Minister and Minister of Finance for this excellent and wide-ranging Budget. I hope the Government will continue to provide assistance to all Singaporeans to cope with cost of living, healthcare costs, education and retirement adequacy. I support the Budget. 4.33 pm”
“I hope that this is something the Government can look into as we not only improve the quality of our workforce but also take away a major cost pressure from parents. In the meantime, we should make post-Secondary education, be it ITE, Polytechnic or University highly affordable and accessible to all, so that no child is left behind and are sufficiently equipped when they join the workforce, no matter what their capabilities and potential. Madam, in Malay, please. (In Malay): [Please refer to Vernacular Speech.] For many years after our Independence, the Singapore Government has focused on economic growth. Today, we are one of the most Page: 92 developed countries in the region and, indeed, the world, with one of the highest GDP per capita. However, economic growth comes at a cost. Prices of property have gone up, prices of transport, food and goods and services in general have all gone up. It has become more and more challenging for Singaporeans to cope with day-to-day expenses. Additionally, jobs have evolved and, today, it is difficult to secure a good job without a good education and relevant skills. According to a survey conducted by REACH, Singaporeans are still concerned with retirement adequacy, healthcare costs and cost of living. In the last few years, the Government has done much to alleviate these concerns. The Government has introduced MediShield Life last year to help Singaporeans cope with healthcare costs. In this year's Budget, the Government has introduced more measures, such as the SkillsFuture Credit which gives Singaporeans funds to help them acquire new knowledge and skills. The Government has also enhanced the CPF scheme so that we have more funds for our retirement.”
“ITE and Polytechnic graduates are in high demand and, with the recent focus on making our ITE and Polytechnic programmes world-class, there is an even stronger reason to ensure that our youth maximise their education beyond Secondary school and then keep them motivated in lifelong learning when they eventually join the workforce. There are more than 40 countries that provide free post-Secondary education. Some are world-class, notably Germany. World-class education is a competitive advantage in today's world and costs should not be an impediment for all Singaporeans to maximise their potential, be it in academic, technical or craftsmanship. The advantage of having free public education at tertiary level is that parents are not worried about the cost of education and their children inevitably receive maximum education based on their capability and potential. I noted that education expenses already constitute a substantial portion of the annual Budget. After speaking at length about managing expenses, I am not about to suggest that we make tertiary education free without more careful study on the impact on our finances and our tax system. But we should view education as an investment, not cost, and, like all investments, its viability will depend on the future value it generates. I think it is worthwhile to think about as we look to future generations to sustain our ageing population. We can perhaps start with a targeted approach to provide free post-Secondary education for sectors with acute manpower shortage, like childcare and healthcare. Might this not nudge a parent or a student to consider a career in these sectors?”
“Or will more people then resort to renting a home because home prices have become unaffordable. Madam, there is only 716 sq km of Singapore. Unless we are able to acquire land somewhere else, future generations of Singaporeans will have to contend with the prevailing prices of the day and, if they cannot, they may have to rent or maybe even migrate. I, therefore, hope that the Government can tighten the regulation on public housing prices to ensure that it remains affordable for generations to come. I also hope that we are able to reverse this "asset-rich cash-poor" phenomenon, perhaps, by capping the amount of CPF funds we can use for property purchases so that more Singaporeans have sufficient retirement funds and are able to retire comfortably without having to downsize their home. Now, allow me to touch on public education. Since our Independence, the Government has rightly provided practically free Primary and Secondary education. Singaporeans have Page: 91 benefited from this free education and we currently have one of the best educated and efficient workforces in the world. Tertiary education, however, is not free and, in fact, its cost has been on the rise recently and can no longer be regarded affordable for some courses. There are bursaries and financial assistance schemes available for students to tap into to help defray the cost of education. However, affordability is not a given and there is the possibility that cash-strapped parents may allow or even encourage their children to join the workforce first, instead of continuing their further education. In today's environment, Secondary school education is hardly adequate, not if we want to continue producing a world-class workforce.”
“Having said that, there are areas where I think the Government can and should do more to help the average Singaporean, not only for current generations, but also for future generations. I have singled out two areas. First is public housing and second is public education. Housing is a basic necessity. One can rent a house to stay or buy it outright. Singaporeans tend to buy rather than rent where housing is concerned. In fact, Singapore has one of the highest home ownership rates in the world. Some buy two, three or more houses. Some buy for their children in fear that property prices will go up and become unaffordable. Some buy to rent out and earn passive income. Of course, there is nothing wrong with all this. But for the majority of Singaporeans, we own one property to call home. Home prices have been escalating, driven by strong demand and, more recently, due to the prolonged low interest rate environment. It is not uncommon to hear people making a tidy profit from selling their homes and then buying a bigger home and taking more loan. The term "asset-rich cash-poor" is common now as people continue to plough as much as they can of their savings, both cash and CPF, into their property, leaving very little for their retirement. In a survey done by DBS Bank last year, many Singaporeans do not have a retirement plan. Many hoped to have $3,500 to spend a month for 15 to 20 years, but many hardly have enough in their CPF savings to meet this need. This is a problem of today. I think we have too much of our accumulated wealth locked into our properties, thus, the phrase "asset-rich cash-poor" cannot be more apt. Can we then imagine the implication for future generations should home prices continue to escalate? Is this sustainable?”
“More so because we pride ourselves to be a developed country with one of the highest GDP per capita in the world. In discussing cost of living issues, I noted that, generally, priorities in what we spend on have changed dramatically. Many household items considered luxury in the past have become cheap enough to be owned by many households. Handphones are now a must. Cable TV, LED TV, computers, air-conditioners are more commonplace. These additional expenses, on top of the traditional basic necessities, have all added to the monthly expenses that a family needs to cope with. Furthermore, some Singaporeans have taken that additional property loan, car loan, personal loan and hire purchase which then increase their debt obligations and add to their pressure in meeting monthly expenses. Most Singaporeans spend first, then see how much they can save. The more prudent ones will set aside a fixed amount of minimum savings, spend within a budgeted amount and save the balance. According to another survey, only three out of 10 Singaporeans start to think about retirement planning when they start working. There is certainly room for improvement for the average Singaporean to manage their expenses and finances better so that they do not fall into difficulty when they lose their job or fall seriously ill. The Government launched MoneySENSE in 2003 to educate the public on financial literacy, but I see it even more relevant today as we face a future of rising costs, uncertain global economic growth, volatile Page: 90 job opportunities and the spectre of rising interest rates. We should take personal responsibility for our own finances and ensure that we do not live beyond our means and are not saddled with huge household debts.”
“To name a few, the SkillsFuture Credit provides funds for working Page: 89 Singaporeans to upgrade themselves. An enhanced CPF income ceiling and interest rate help increase the available funds for retirement. Also, the Silver Support Scheme provides funds to the low-income elderly. Since yesterday, we have had a lengthy debate on the measures introduced in this year's Budget, so I would like to focus on just a few areas pertaining to cost of living. Despite the many forms of assistance from the Government, bread-and-butter issues continue to be a concern for many Singaporeans who still worry about bringing up their families in today's environment. Property prices have risen considerably, the cost of education, transport, basic necessities have all gone up and it makes me wonder if future generations will actually have a harder time than our generation. Madam, just a few weeks back, a survey done by REACH says that the top three concerns amongst Singaporeans are retirement adequacy, healthcare costs and cost of living. This is despite a more rosy report on household expenditures a few months back that says that household income has risen faster than expenses. I think we know now that household income does not rise at the same rate for everyone and that those in the lower-income bracket are likely to rise at a lower rate quantum-wise. One can make a point that for low-income Singaporeans, cost of living will always be a concern and assistance from the Government will always be appreciated. But when middle-income Singaporeans express these concerns and hope for some form of assistance from the Government, I think we should be more alarmed and delve deeper into the root of the problem.”
“Mdm Speaker, thank you for this opportunity to participate in this year's Budget debate. I would like to start by recalling the outcome of the final report of "Our Singapore Conversation Survey" which was carried out in 2012. In this survey, public housing, public healthcare and job security were the top three priorities cited by Singaporeans in what they want to see in Singapore in the next 20 years. I had the opportunity to participate in some of these conversation sessions. Many of us wondered at that time whether this exercise was, indeed, just another "talkshop" or wayang, as some detractors call it, to give the appearance that the Government is interested to listen to its people. Today, I feel a sense of pride and satisfaction in that I had participated in an exercise which may have contributed in some ways to the string of policies which has benefited and will continue to benefit our community in years to come. In public housing, for example, MND has ramped up the development of public housing and, in the process, helped to contain the rising prices of HDB flats. In public healthcare, we have the introduction of MediShield Life which seeks to keep healthcare costs affordable. And while job security is something that cannot be guaranteed, the Government has introduced measures to help Singaporeans who lose their jobs to acquire new skills and to create more opportunities to get themselves back into the job market. To many of us who were involved, it does seem that the Government is, indeed, listening to the voices of its people and taking concrete steps to address the concerns of its people. In the same vein, as in the last couple of years, this year's Budget has yet more measures to help the community.”
“I thank the Minister for that comprehensive reply. Before the implementation of the cooling measures for the property market, many Singaporeans had taken the opportunity to upgrade their properties, particularly to private properties. Many of them had actually taken floating rate packages. I believe, even from my personal experience, that many have actually over-extended themselves, in terms of taking the property loans. I believe that they are one of the groups vulnerable to a steep increase in interest rate. Given the ongoing global economic environment volatility, there is also this risk of heightened job insecurity. I would just like to highlight that these are some of the vulnerable groups. I am just wondering whether there are any safeguard measures that we can put in place for this group.”
“I thank the Parliamentary Secretary for the response. I have one supplementary question. But just to give some context to my question, I have attended a support group session for people experiencing debt problems. Invariably, there are a lot of emotions, psychological trauma and shame involved. What strikes me is that the real victims are actually not there and they have declined to come forward. When I say "the real victims", I am talking about the family members. The people that we meet are the debtors. But the people who are experiencing difficulty have declined to come and be counselled. The issue here is the outreach – how can we reach out to these people who are suffering in silence?”
“One of the recommendations made is the assistance provided to ITE/polytechnic students and parents, to make better decisions in choosing industries with better potential. There are success stories of members of the community who are ITE or polytechnic graduates. One of them, Mr Abu Bakar bin Mohd Nor, is a Singapore Polytechnic graduate who has become a Chief Executive Officer for Nakilat-Keppel Offshore and Marine. We need more role models like him to inspire the community. The world has changed and it is uncertain whether one will be successful even with a degree. We must give the confidence to our young people who are ITE and polytechnic graduates, that they have the change to achieve a bright future. Sir, I will end my speech in English. (In English): I support this Motion. I can see much benefit for Singaporeans if the recommendations are implemented. I would urge, however, for the Government to make this movement across all sectors and not restrict it to only some sectors. Creating more opportunities and broadening the options available to students, young workers and middle-aged workers will raise worker productivity for our companies, raise the income level of a larger proportion of Singaporeans and reduce income inequality in Singapore. 6.15 pm”
“The potential of the ITE and polytechnic graduates must be maximised since many of these graduates may form the middle class in the future. From the information received, industries with low salaries are mostly represented by the Malay/Muslim community. Hence, it is timely that the Government has now come forward with the ASPIRE report with the objective of providing better job opportunities for ITE and polytechnic graduates. Page: 100 This does not mean that students should not make the effort to obtain degrees. A degree is a measurement of academic excellence and the community should take the opportunity to use available resources like bursaries and scholarships being offered, in order to improve themselves. The community must also be aware that academic qualifications by itself are not a factor that determines one’s success. Positive qualities or attributes like intelligence, resilience, integrity and self-confidence are more important to achieve success. More importantly, I believe that we must avoid sending our children overseas to further their studies especially if this affects our financial situation. Overseas education requires a large expenditure and it also does not guarantee that the graduates will be employed once they return home to Singapore. One suitable alternative will be to get a job in a good organisation that recognises good performance and provides training and opportunities to staff to improve their skills, qualifications and be able to take on higher job responsibilities. The Government has now taken steps to enhance job opportunities for workers without degrees and this is beneficial to the community.”
“Second, we need to get buy-in from all employers to reduce or even eliminate recruitment practices and career development policies that unjustly favour degree holders over non-degree holders, as I have described earlier. Employers play a very critical role in making this work. We should push this agenda across all sectors, not just the industry sectors currently served by ITE and polytechnic and make this a norm rather than an exception. Again, this will be challenging. We will need to persuade both public and private sector companies and organisations to invest time, money and effort to analyse and right-size job levels, job types, job scopes and job responsibilities that are appropriate for entry-level ITE graduates, polytechnic graduates and degree holders. They would also need to map out integrated career paths that will show ITE graduates, polytechnic graduates and degree holders how they could progress in their careers and what other qualifications, if any, are required to move up the career ladder. More importantly, jobs that were exclusive to degree holders in the past should now be made available to non-degree holders as this would level the playing field and compel both the non-degree and degree holders to work harder. Ultimately, it should create a win-win situation for both employer and employee. Sir, allow me to speak in Bahasa Melayu. (In Malay): [Please refer to Vernacular Speech.] In the 2012 Convention Report, one of strategies proposed by the Association of Muslim Professionals (AMP) is that the Malay/ Muslim community must maximise the potential of youths who are not highly educated. It is estimated that 45% of the Malay Primary 1 cohort, are likely to continue their education until the ITE.”
“Our system must take some of the blame because we have given too much recognition to academic qualifications, even to the extent that it is counter-productive. For example, we pay higher starting salaries to degree holders, for an entry level job that can be done by diploma holders. Same job, same responsibilities, but paid differently due to differences in academic qualifications. We also impose glass ceiling on capable workers who are non-degree holders, thereby curtailing their true potential. These are unfair practices which discriminate between degree holders and non-degree holders. Eliminating this discrimination will be an important step for us to achieve the objectives of the ASPIRE paper. I welcome the ASPIRE recommendations. I believe it will provide the first steps for our youths to be more confident in taking alternative paths rather than the degree route. Getting a degree is still relevant, but there are now alternative paths. In the long term, hopefully not a too distant future, I believe it will raise income levels for the majority of Singaporeans and maybe, finally, reduce the stubborn income gap that has plagued us in recent years. But I see two main challenges which I feel need work to be overcome for it to take off. Page: 99 First, we need to address the perception that ITE students are inferior to polytechnic students and polytechnic students are inferior to junior college students. We need to educate that there are other strengths in a student, apart from academic excellence, that should be valued. This will not be easy, as we have firmly entrenched this belief in the minds of our students, parents and teachers, but perhaps with more brainstorming this can be done to find some solutions.”
“Sir, firstly, thank you for this opportunity – my first in Parliament – to partake in this debate. Sir, a friend and former mentor who used to head the HR department of a large organisation, told me that he would look for three "Qs" when assessing candidates for senior positions. First one is, of course, IQ – a measure of a person's intelligence, EQ – a measure of a person's emotional intelligence or the ability to relate to people and AQ, or adversity quotient which is a measure of a person's resilience in the face of adversity. He shared with me a few success stories of individuals who were non-degree holders whom he had helped groom, to rise through rank and file, to become senior managers and leaders of large organisations. Conversely, he also related about a first-class degree holder who could write excellent reports, but could not get along well with fellow colleagues and performed mediocre at best with regard to the quality of his work. Sir, many of us have come across similar persons in our lives. We know that academic qualification alone is not a determinant of success. There are other qualities such as resourcefulness, resilience, integrity, self-belief, which are equally important, if not more important for one to be successful. Sir, this obsession with academic qualification, which our society has, is, unfortunately, our own creation. We have, perhaps, given too much emphasis on paper chase. So much so that parents are prepared to borrow well beyond their means to send their children overseas, sometimes even to universities that lack good credentials, in the belief that any degree will secure a better future for their children.”