Ng Ser Miang
Singapore
“The cash award serves both as a recognition and motivation to our athletes. Sir, I cannot over emphasise the importance of funding provided by the Singapore Pools to sports.”
“I understand that the Sports School has also acquired cutting-edge sports and sports size equipment that NSAs would die for. The School now has a population of 140 this year and it would take four years for them to reach a steady stage of 600 students. There will therefore be excess capacity for at least the next four years.”
“In addition to providing our foreign talents with basic education, I would urge the Ministry to explore with our institutions of higher learning on the possibility of admitting these sports talents at the appropriate time, so that they too can further their studies.”
“To tax their surplus could also lead to a culture of waste and encourage unnecessary spending before the financial year ends. DPM in his Budget speech spoke about allowing Ministries accumulate and carry forward unused funds to subsequent years. Perhaps, we could also allow similar flexibility to this group without taxing them.”
“Sir, may I first congratulate the athletes and MCDS on the outstanding performance in Vietnam. Can I ask the Minister what additional support and funding would be provided so that the athletes and NSAs can continue to do well in the future SEA Games? Assoc. Prof. Dr Yaacob Ibrahim: Sir, I thank the hon.”
“The programme has since been extended to all applicants making maintenance as well as enforcement applications. The applicants and their families are referred to the project's community partners, comprising some Community Development Councils, voluntary welfare organisations and self help groups, for a range of services such as job matchi…”
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“Sir, I think that the new sports hub was first announced in this House in March 2001. The Minister has just mentioned that it is going to take up to year 2010 to finish the sports hub. I think it is probably a very long time. Would the Minister explain why it would take such a long time? Secondly, Singapore has hosted three SEA Games before, ie, in 1973, 1983 and 1993 when our term was due then. We are now unable to host the 2007 and 2009 Games and maybe we will host in 2011. I think there was some disappointment amongst our other SEA Games countries as well as our local sports fraternity. Could the Minister undertake to try to expedite the completion of the new sports hub so that we can host the Games earlier? Assoc. Prof. Dr Yaacob Ibrahim: Sir, I wish I could expedite the project, but I do not think it is possible because it is a huge project. Our initial estimate shows that the project is exceeding half a billion dollars. So a project of that size, we will need to take time to study, not only in terms of its development, but we have to think what happens after we have developed the site. Give us a bit more time because we have to study this very carefully. The hon. Member, being a former Chairman of SSC, will realise that running sports facilities is indeed a massive exercise that will require good business acumen to ensure that the facilities do not become a drag onto the nation. But having said that, we are confident that we will be able to build the hub in time for at least the 2011 SEA Games. Rather than promising our colleagues that we will be able to host the Games in 2007 or 2009, let us be sure on our part that we have a completed facility which is tested, with a sound business model, before we go ahead.”
“Sir, may I first congratulate the athletes and MCDS on the outstanding performance in Vietnam. Can I ask the Minister what additional support and funding would be provided so that the athletes and NSAs can continue to do well in the future SEA Games? Assoc. Prof. Dr Yaacob Ibrahim: Sir, I thank the hon. Member for the question because I think it is an important question. We are now going through a review of all the NSAs. We have done well, all of those who have participated in the recent Games. This will allow us to assess. We do have funding criteria that look at the performances of the various sports. I would like to assure the Member that this review is being done currently with the view to assist NSAs. Even those NSAs which are emerging, which have shown potentials in the recent Games, we will look at it closely and see whether or not we could help them even further, not only in terms of funding support, but other types of support that may be needed to push their sports even further.”
“Sir, can I ask the Minister what is the key performance indicator for the Sports School and, although the Sports School has exercised flexibility, whether the current admission criteria will still exclude top sports talents from going into the school and, therefore, affect the performance of the Sports School itself? Assoc. Prof. Dr Yaacob Ibrahim: Sir, we do not see the Sports School as the only school providing talent for sports in Singapore. It is only one of the pieces in the jigsaw puzzle. So, other schools will continue to produce talent for Singapore, and that must be the case. Our outcome must be that we must be able to provide a good secondary education for our students, so that they can go on to post-secondary and, at the same time, provide opportunities for them to excel in their sporting talent. If you ask me if we are able to produce some of our champions from the Sports School - and the word is "some", not "all" - I think that would already be a landmark for Singapore. In the longer term, I think the Sports School can look into various other ways to continue to maximise potential talents that are within Singapore. At the moment, we do have some athletes who are not in the Sports School, or currently sports which are not catered for in the Sports School, but they are part of the Sports School where we have an arrangement with the National Sports Association. So, I think the model would evolve as to how the Sports School can maximise potential sporting talents which are available in Singapore.”
“Sir, while there is benefit to quarterly reporting, I think it also represents additional cost. This is especially a burden to smaller companies. So, would the Minister consider raising the threshold of $75 million to a higher amount? Mr Lee Hsien Loong: Mr Speaker, Sir, the Member's point is valid, but I think the $75 million threshold is quite a reasonable one. Because out of the total of 521 listed companies on the SGX, 193 are required to report quarterly and 328 are not required to report quarterly. So, the majority of companies - the small companies - will be less than $75 million. If we have more than $75 million market capitalisation, we are not so small. LIBERALISATION OF ELECTRICITY MARKET (Benefits to households) 8. Mdm Halimah Yacob asked the Minister for Trade and Industry whether households, in view of the Energy Market Authority's plans to open up the electricity market so that all consumers can choose which retailer to buy electricity from, will benefit in terms of lower costs and greater efficiency.”
“Sir, I must say that I wholeheartedly support the promotion of netball in Singapore. But the Sports School must not lose its strategic focus and be over stretched in its limited resources. Sir, I hope that when considering sports science and sports medicine support, the Sports School will also synergise with NIE and the Singapore Sports Council, both of which have built considerable expertise in this area, so that there will be no wasteful duplication. Like many Singaporeans, I am overjoyed that a sports hub will be built in Kallang. It will become a thriving centre for our citizens and a hub for our sports industry. It should be a public facility that will cater to the National Day Parade, mega events and future major games. I hope that the public will be invited to give inputs on its development. It should be built with passion and not just numbers. And together with the Esplanade, it could make Singapore the lifestyle centre of Asia, just like Monte Carlo. Sir, I support the Code of Governance for the national sports associations, as it would bring about more professional management and greater accountability for the good of sports promotion. I would like to enquire about the progress of its introduction.”
“Sir, the vision of a sporting Singapore has brought much hope and excitement about the future of sports. I would like to ask the Minister how the additional $500 million in support of sports has been allocated to support the three pillars of a sporting Singapore, which are sports excellence, sports for all and sports industry. And how much of it has been disbursed and are we on target to achieve the objective of the three pillars? The Sports School is a critical component of the strategic plan for Singapore to become the top 10 nations in Asia by 2010. It will nurture our top talents so that they will become champions and, at the same time, offer them an opportunity to excel in life through sports. I hope that the Sports School will also bring about a mindset change and a clear message that we also value sports talents, not just linguistic and logical mathematical intelligence. Therefore, I would suggest that we should avoid admission criteria that put academic results first and sports talent second, to the exclusion of our top talents. There are 165 secondary schools in Singapore that put academic results first, and rightly so. But a sports school is a sports school, and perhaps sports talent should come first. Just imagine a sports school that rejects top talents like Fandi Ahmad and Andrew Fang, but perhaps accept lesser talent like myself who could probably make the Express stream. Sir, I would like to ask about the criteria for sports to be included in the Sports School. For example, how would netball contribute to Singapore becoming the top 10 in Asia when only a handful of Asian countries play netball and is never included in the Asian Games and appeared only once in the SEA Games in Kuala Lumpur in 2001?”
“Madam, at the 44th AGM of the Singapore Schools Sports Council, the Minister for Education made special mention of Park View Primary School in Pasir Ris which has a Catch Them Young Sports Programme for pupils from Primary 1 upwards. Those with good potential in sports are identified and given special training to groom them into sports talents. At each primary level, the sports talents are grouped into two special classes and given specialised sports training and coaching. They are also given enrichment and remedial support. The school provides all other students with PE, Trim and Fit Programme, and inter-class activities that keep them active and challenged throughout the year. I would like to congratulate the school for its innovative way of providing effective sports education for all its pupils and for her sports talents to develop. Madam, at the Singapore Schools Sports Council conference in 1999, I also urged MOE and schools to introduce gifted sports programme, so that students with sports talent can be nurtured and achieve success. In Singapore, we are giving our children with different talents opportunities to develop to their fullest potential, not just in academic pursuits but also in other areas, eg, arts, music and sports. Gifted sports classes, like the one introduced by Park View Primary School, would give a chance to those with sporting talent to be nurtured and to flourish, and to achieve success in life according to his or her own ability and inclination. This concept of gifted classes can be introduced at the primary and secondary levels, in Normal and Express streams, and I hope Park View Primary School will be a shining example for other schools to follow. I also urge the Ministry to encourage more schools to consider similar innovative programmes.”
“Children should learn to play a wide variety of sports in PE, and perhaps fall in love with one or two. I am in sports! And they will enjoy and play for lifelong enjoyment. PE should be taken seriously by schools. But, at the same time, it should be fun for the students. On a related issue, I would like to ask if we have enough qualified PE teachers to meet the demands of schools, and what the intake of PE students is like at NIE. NIE has outstanding facilities and faculty. I would also like to know whether it has excess capacity, so that others interested in a sports career could also learn at NIE.”
“Madam, we all know the importance of an all-rounded education and the importance of physical education in the overall development of a child. Neuroscience research has shown that sports enhance cognition, increase self-esteem and confidence, and improve social skills. The mental skill in sports participation teaches a person how to reach his personal best, regardless of skills in competition level, and that translates into real life. Dr Mohamad Maliki has mentioned the 6-letter word "stress". Sports also help to reduce stress. One develops fitness and mental toughness through sports, and learns about leadership, teamwork, perseverance and dedication. As we are promoting and developing an entrepreneurial society, I think it is not too far-fetched to say that these are attributes and qualities of an entrepreneur that we would like to inculcate in our students. Madam, I understand that there are three periods of PE from Primary 1 to Primary 3, and two periods from Primary 4 upwards. Although each period consists of 30 minutes, after taking away time for changing into PE gear and moving from classroom to field, probably the actual PE time left would be less. We have also often heard of complaints from students and parents about PE being given the lowest priority in schools. Very often, PE is either given up for remedial classes or for a host of other reasons. One example was given in a report today, in the 1st and 2nd March 2003 weekend edition, where it was reported that PE was cancelled as a form of punishment. Madam, I would like to know how do we compare to other developed nations in terms of PE. Do we allocate sufficient time and attention to PE in schools? I believe that we should reaffirm the importance and priority of PE in schools.”
“Many of these entrepreneurs with good and workable ideas would probably be stopped in their tracks before they even get started, because of a lack of funds, and that would be a real loss to the economy. Sir, I know that there is really no easy solution to this problem, but we really need to find a way forward to bridge this gap and to help our entrepreneurs to flourish. The idea of a SME Bank or a special fund could be a workable solution. There is a Chinese saying, wan shi ju bei, zhi qian dong feng, ie, everything is ready, what we need is the East wind. I think there are hundreds, if not thousands, of entrepreneurs who are prepared to set sail, and I hope that the Ministry and, now, Mr Raymond Lim, can find the East wind for them.”
“Sir, I think the most important support that we can give to our entrepreneurs is one of financing them. For the new start-ups, they need financing. It is difficult for them to do so if they do not have sufficient capital of their own. If they try to borrow from commercial banks, as we have heard, and if they lack the track records and most of the time they do not have sufficient collateral, it is difficult for them. Traditionally, local banks have been the ones who have been supporting the small accounts, such as these. But with the merger of six banks into three, it is generally felt that the three banks are now more risk-averse. We are not blaming the banks as they have their own bottomline and their shareholders to look after. 5.00 pm The same also holds true for small entrepreneurs venturing overseas. For example, if they go to China, it is very difficult for them to borrow locally. If they want to borrow from Singapore banks, Singapore banks will insist on collaterals in Singapore. And if there are no Singapore collaterals, there are no loans and no ventures overseas. It is also difficult for them now to attract funding from private investors, angel funds and venture capitalists. With the economic downturn and uncertainties, funds have become scarce and, at the same time, private investors and venture capitalists are getting more conservative and wary. Alas, angels are also getting to be fewer. Sir, I am not talking about handouts. I agree that the Government cannot become an ATM where anyone with a calling card "entrepreneur" can come and freely draw from the support. Entrepreneurs must also compete for limited funds available. The rule of survival of the fittest should also apply. But the problem of financing genuine entrepreneurs with potential is real.”
“Sir, National Service is the duty that our sons undertake with pride and honour. It is an essential part of our military defence. Our national sportsmen, on the other hand, contribute to our psychological and social defence. Whenever they won, and when our national flag was raised and Majullah Singapura was played, pride, passion and patriotism surged through us and we cheered for them as one people and one nation regardless of race and religion. With the understanding and accommodation made by the Ministry of Defence, it has been possible for our national sportsmen doing NS to train and compete for our nation without compromising the standard and demands of National Service. 12.00 noon Sir, I would say that national sportsmen doing NS has a special role to play in addition to doing their military service. Winning for Singapore whilst doing NS not only brings pride and joy to our nation, family and to oneself, it also serves as a morale booster and inspiration to the section, platoon, company, battalion and to all NSmen, and inspire them to want to do their best for Singapore. So, like Oliver Twist, I am asking for more. I am asking the Ministry to recognise the value of our national sportsmen in NS, and allow them even greater flexibility for them to excel for Singapore.”
“South Korea, one of the worst hit economies during the 1997 Asian economic crisis, made an amazing recovery and remains as one of the world's most resilient economy, with some of the world's most admired companies such as Samsung and LG. During the 1997 crisis, South Korea had to be built up by IMF with a loan of US$50 billion. In an amazing recovery story, South Korean economy grew by 9.3% in the year 2000, 3% in 2001 and 6.2% in 2002. The South Korean people are hardworking. They can endure a lot of hardships. They have a 'never say die' attitude. They tighten their belts to support the Government during their crisis. I can still remember vividly reports and images in newspapers and television on news of South Korean women queuing up to contribute their gold and jewellery to help the economy. I think such is the spirit of the South Korean people and such is the spirit that we must cultivate for our Singaporeans. This is an area we must build on - the resilience of our economy and the resilience of our people. I think Singaporeans can also make it. We can be like another South Korea. And I look forward to the difficult voyage ahead with optimism and hope. I know as a country and as a people, we will survive this perfect storm and survive well. Sir, I support this Budget.”
“However, I think we should avoid the Hongkong example where the substantial budget deficit of HK$70 billion this year necessitates an increase in corporate and personal income tax. Hongkong has announced an increase of 1.5% increase in corporate tax to 17.5%, and an increase of 1% in personal income tax to 16% to support its budget deficit. The Government's commitment to continue to help reduce business cost, simplify its rules and procedures and cut red tape and for the Ministries and statutory boards to avoid crowding out the private sector are all necessary measures in the remaking of our economy. An entrepreneurial and innovative bureaucracy will also help to support our businesses and entrepreneurs. I would like to suggest that there could also be greater inter-agency cooperation so that policies and measures of different Ministries would be harmonised and conflicts minimised. The business community has long viewed tax on foreign income remitted into Singapore a sacred cow as repeated recommendations and suggestions for exemption were rejected. The move to exempt tax on foreign income remittance is, in fact, very well-received. It is significant not just in monetary terms but also symbolically it represents a change of mindset and a paradigm shift. It is a pro-business decision and one that the ERC has also recommended. The move to exempt domestic interest income to individuals derived from savings, current and fixed deposit accounts is also most welcomed. Companies who up to now keep foreign income offshore and individuals who keep deposits out of Singapore for tax reasons will now find no barriers in bringing them back to Singapore. All Singaporeans should indeed take heed of the call to pull together to tide over this difficult period and move ahead.”
“Mr Deputy Speaker, Sir, thank you for allowing me to join in this debate. DPM and Finance Minister announced in his Budget Statement the five long-term strategies to make Singapore a leading global city and immediate measures to help our economy to recover from the recession. He cautioned that there is no safe harbour where our ship can shelter to rebuild and refit before heading out to sea. All work must be done on board ship while we are sailing and battling the elements. As more disheartening economic data from major economies like the US, Germany and Japan were released and the acrimonious debate at the UN Security Council on Iraq revealed a great political divide, the elements that our ship is battling are fast becoming a perfect storm. It does not make our immediate future prospect look optimistic. Set against this background, the 2003 Budget is a practical and a reasonable one. It does not meet everyone's wish but it gives where it is needed and matters most. The $900 million deficit is significant after running a deficit for the last two years. To address the concern that not enough has been done to help the people who are in need as well as to help the economy to recover should the economy worsen, I hope that the Government will come forward with subsequent off-Budget measures quickly if it becomes necessary. It is heartening to note that the Government will continue to extend help to those of our fellow citizens who are most affected by the recession. They deserve our support. Many in the business community, while disappointed that the much anticipated corporate tax cut will not materialise this year are, however, reassured that the Government would likely reduce the current corporate tax from 22% to 20% for the Year of Assessment 2005.”
“My experience in running a group of companies with more than 2,000 employees has taught me that the best recruitment policy is one based on meritocracy. For companies to run efficiently and provide the best services or produce the best products, make a good return to the company and shareholders so that there will be job security for each and every employee, everyone in the company has a part to play and every employee has to be qualified and is the best person for the job. This is especially so in the increasing competitive environment, whether locally or internationally. Sound and viable companies provide jobs and security and contribute to social stability. We should, therefore, continue to uphold the principle of meritocracy and at the same time, there should not be, and we cannot allow, discriminatory practices against any employee that is based on race and religion. In Singapore's context, I believe that most of the employers are fair-minded and professional. For those few who practise discrimination, I think they should be educated and corrected. The Singapore Business Federation and NTUC will have a big role to play in this area. Sir, during this period of economic uncertainty, we should continue to concentrate on education, training and skill development, so that each and every Singaporean is employable and has a bright future. Sir, I support the motion.”
“During the Asian Games and the Commonwealth Games last year, Singaporeans, regardless of race and religion cheered our champions, whether it was Li Jiawei, our table tennis champion, or Abdul Halim bin Haron and Ibrahim Sihat, our weightlifting champions, or Remy Ong, our bowling champion. We cheered as one, and we cheered as one nation. Whenever our football team played, thousands of Singaporeans went to support them. When our team lost or played badly, we felt disappointed, frustrated and sometimes even angry when they were trounced. But when they triumphed or showed courage and real fighting spirit, we cheered as one and we felt proud as Singaporeans. Players or supporters - we are one - regardless of race and religion. Yesterday morning, I hosted a breakfast for my colleague from the International Olympic Committee, Mr Kip Keino. Mr Keino is a two-time Olympic gold medallist and a two-time Olympic silver medallist and he is a legendary runner from Kenya. Mr Keino reminded me that sports is a unifying force that unites a nation and promotes peace and harmony. Sir, the second point I would like to raise is one on employment of Singaporeans. A number of our hon. Members have touched on the code of responsible employment practices that was set up together by the Singapore Business Federation and NTUC. In the introduction of this code, it states, and I quote: `Singapore's society is multi-racial, multi-cultural and multi-religious. Employers and employees must appreciate the diversity of the workforce and work together in harmony. Employers should treat all staff fairly and continue to recruit, based on skills, merits, experience, capability and relevant job experience.' Sir, I fully support this code of practices.”
“Mr Deputy Speaker, Sir, thank you for allowing me to join in this debate. During the last 12 months, I visited countries in Asia, Europe and the Americas on various assignments. Every time I went through an airport, the strict, and sometimes over-zealous security checks and stringent immigration procedures, served as a constant reminder to the threat of international terrorism, and the threat is real, and countries around the world are dealing with it. The arrest of the 15 JI members in December 2001 shocked us. And, this White Paper forced many of us to take cognisance that the threat is nearer to home than we would have otherwise thought. Our Government is taking this threat seriously and is dealing with it. And, now it is up to us Singaporeans to recognise the issues on hand, and to work together and to support our Government. Hon. Members have spoken eloquently in support of this motion. I would like to add two points for consideration. In addition to the recommendation in the White Paper on strengthening social cohesion, I would like to suggest that sports can play an important role in community bonding and nation building. Sports cut through barriers of race and religion. No matter what level of sports that you play or take part in, there is no discrimination against Muslims, non-Muslims, Chinese, Indians, or Malays. In sports, one set of rules applies to everyone, no matter what is the colour of your skin, hair, eyes or your beliefs. Through sports, we build friendship and strong bonding afterwards.”
“This is indeed a good example of GLCs and private sector companies working together, with IE Singapore acting as a catalyst. When I see them working together, I do not really see a great divide between the GLCs and the private sector. I see a group of Singaporeans working together, sharing the common objective of fighting for business opportunities. I understand that these companies continue to network and work quite closely together, even after their return to Singapore. Sir, the culture of partnership as envisaged by EISC is important to Singapore companies if they wish to compete successfully overseas. I agree with EISC that IE Singapore and SPRING have important roles to play to identify and catalyse the development of specific industry classes for our international expansion. Sir, I support the Motion.”
“I am also sure that Members of this House will make effective monitoring of the work of GLCs and also of its divestment of non-strategic business. Sir, hon. Members have commented that there is a need for greater transparency for GLCs. I believe that GLCs do have a corporate image problem, as they seem to ring-fence themselves. I think perhaps it would help, especially for listed GLCs, to become good corporate citizens, to be more involved with community, for example, to actively support sports, arts and culture. Maybe it is a good start with football or badminton. Senior executives of GLCs can also follow the footsteps of those in the private sector and become volunteers in community service. Sir, in January this year, as Chairman of Network China, I led a business delegation to Beijing, Qingdao and Jinan to explore business opportunities arising from Beijing hosting the 2008 Olympic Games. The delegation consisted of 72 companies, 100 businessmen and women and senior executives from both the private sector and GLCs, with staff support from IE Singapore. Some of the companies went belong to the ST Group. Some of those from the private sector were BreadTalk, Hyflux. There were engineers, there were construction firms. We were introduced to many projects and potential, eg, in infrastructure, transport, communication, environment protection. While there are plenty of opportunities, the delegation also found that many of these potential projects require a huge capital investment or capability and skills beyond that of a single company. Delegates themselves and, in some cases, with encouragement from IE Singapore, form partnership and pool resources to compete.”
“The top 22 GLCs, as we have heard several times, contributed 13% to Singapore's GDP in 1998. Despite the many misgivings over GLCs, I would like to see the GLCs as one of our important assets, and a very powerful tool that the Government has, and can use and must use to expand our external economy. The Hai'er group in China that Ms Lum just mentioned is one of the state-owned enterprises that has been privatised. They are not only successful in the Chinese market itself but they have since expanded their manufacturing base to America. Sir, I think there are many of these examples around, and our GLCs can be the Hai'er of Singapore as well. Skills, core competency and financial muscle matter most in venturing overseas successfully. It is a tough world out there, and for those of us who have been overseas, we all know that there is really no level playing field. It is true that GLCs have their fair share of failures expanding overseas in the past. There are lessons learnt, and it is part of business. If we expect our GLCs to be the driver for our external economy, we must also expect a fair share of failures from them. For GLCs to successfully lead our international expansion, they also must have the same entrepreneurship spirit and the ability to take risk, which means, to accept some failures. Since the publication of the EISC report, Temasek Holdings has responded with a new Temasek Charter. Some have felt that this new charter may not fully reflect the recommendations of the EISC. In particular, it is silent on divestment of non-strategic business. I am sure that if the Government accepts this report, and I am an optimist, it would then become the Government's responsibility to ensure the compliance of GLCs to operate within its new role.”
“Whilst some of these concerns are based on facts and some on perceptions, but whether facts or perceptions, they are real issues with the private sector, as we have earlier heard from Ms Lum. The EISC Report, if adopted by the Government, will certainly help to allay the major concerns of the private sector. It will give a lot of comfort to the private sector to know that they do not have to compete head on with GLCs in the domestic market. The generic competition law to be introduced and an independent Fair Competition Authority to be set up by the Government will go one step further to ensure a level playing field and fair competition. However, I think we must all be aware, as businesses are aware, that a level playing field does not mean protection from competition - domestic, foreign or from GLCs. When there is money to be made, the Starbucks, the Ikeas, the 7-Elevens of the world will come in and compete against our home-grown coffee clubs, furniture and provision shops for their market share. The competition, whether from GLCs or others, will be keen, and if our private enterprises cannot stand up to this competition, they will perish. On the other hand, notwithstanding competition from GLCs and overseas investors, our private sector has proven its resilience and ability to stand up to competition. Today, the SMEs are providing 70% of the jobs for our workforce. The challenge for our Government is to support the private sector and encourage the entrepreneurial spirit to flourish, so that the private sector will continue to be the pillar of our economy and will succeed in their efforts to expand overseas. At the end of May, Temasek's top seven listed companies accounted for 21% or $72 billion of the Singapore Exchange market capitalisation of $342 billion.”
“Mr Speaker, Sir, thank you for allowing me to join in this debate. I declare my interest as an independent director of SMRT Corporation, a subsidiary of Temasek Holdings Limited. The hon. Members of this House have debated eloquently on the two issues, firstly, the role of Government in business and, secondly, supporting private enterprise and entrepreneurship, as reported by EISC and its recommendations on Government in business. Sir, I think this must be set against the bigger picture of the remaking of the Singapore economy, and as we face squarely the challenges of the great uncertainty of the world economy and fierce competition ahead. Sir, I believe that many of us in the private sector will agree with EISC that the Government should only be involved in business where it achieves its strategic objectives, such as managing critical resources, public policy objectives and developing new growth engines. And that such involvement should cease when the private sector has developed capability and is ready to assume such role. I also believe that EISC has clearly defined what type of business the Government should be in and what it should keep out of, and therefore setting clear markers within which the GLCs should operate henceforth. EISC has adequately addressed the concern of crowding out private enterprise by the over dominance of GLCs. The private sector will be relieved to note that EISC has stated that the Government no longer needs to take a hands on approach and should encourage private sector to be in the forefront of developing new business ideas. Sir, several Members of the House have spoken with passion on the considerable public unease and concerns over GLCs.”
“Sir, I think it is a good idea, and I think cycling is a good sport that we should promote. But creating a cycling lane is not a good solution, as it would also take up road space. One example is China. China has 700 million cyclists and now the authorities are having a hard time trying to do away with cycling lanes, and I do not think we should really be going in that direction. I would suggest that more park connectors be built so that cycling can be promoted as a healthy exercise. Sir, on this note, I oppose the Motion.”
“Would people accept non-airconditioned service? Would we want to go back to the days where - we would not talk about rickety buses - buses with higher steps so that it is a bit more dangerous to our senior citizens and ladies going to work in high heels find it very inconvenient? I do not think that that is accepted. And, even if we want to do it now, the cost of public transport service cannot be changed overnight. From 1980, when the cost of the bus ranged around $70,000-$80,000, it is now $270,000. So, even if we want to change these buses, it cannot be done overnight. Sir, I suggest that for issues like this, we should really be looking at it on a more balanced basis, and perhaps seek a long-term view. Close collaboration between LTA, PTC and public transport operators is definitely required to contain cost. I believe that commuters must also be brought into this and make them a partner of this scheme, to decide on the standard of service required and therefore the related cost, so that when adjustments are to be made, they can better understand why these changes are needed and why these adjustments are made. In difficult times like this, sometimes it is really difficult to explain to those who are affected financially. But I think it is gratifying to learn in this House that Government has made sure that those who are badly hit are being provided for. So, I think it is now up to us really to have a good reasoning on this round of fare increases and try to explain to our constituents so that they can also understand, perhaps not fully accept, why it has to be done. Sir, I would like to touch upon one other issue, that of cycling, as brought up by Ms Irene Ng. I declare my interest as Chairman of the Singapore Sports Council.”
“The commuters using public transport range from workers to senior executives, students, housewives, to senior citizens. Their preference and requirements range from very basic transport service, and some would say they do not want airconditioning in buses, to the high end business-class type of service. Their tolerance to fares also differs substantially. To make each and every commuter satisfied is really a daunting task. It is unlike airlines where they can have differentiation in type of services - having first class, business class, economy class - and therefore charging different fares for them. In our public transport service, we can only have one class fare. So whatever changes will affect everyone, across the board. Some Members spoke about no-frill service. Over the years, in tandem with the progress of our economy, and with a higher standard of living, expectations for a better public transport service have also become higher. For better comfort of passengers, we introduced airconditioned service. For safety and convenience of commuters, we introduced low floorboard buses. For clean environment, we introduced Euro 1, and now Euro 2, engines. These add up to cost. For those who will not want to wait longer for bus services, they demand higher frequency. For those who wish to have convenience service, they ask for more services, more direct services, and higher frequencies. And some of these new services may not be economical to run. And if they are not happy with it, they go to the MPs, and MPs will write to the public transport operators. If MPs are not satisfied, they will complain to the Minister. So, Sir, these uneconomical services and higher frequencies that people expect also add to cost. Can we not say that these are frills?”
“Looking for such windows could lead to irregular and hefty fare increases that are more painful. Second-guessing the economic cycle could also catch PTC on the wrong foot and force PTC to approve hefty increases during a downturn, which is hardly acceptable. It also means that the profitability of public transport operators would deteriorate over time and surge or spike when there is a fare increase, a situation that is not satisfactory to their shareholders, and transport operators will find it difficult to do good financial management and planning. On balance, the recommendation of the Cost Review Committee in 1997 for a small increase on a regular basis is a better solution. The advantage is that it is less painful and disruptive to the commuters. Using the 10-year period of 1992-2001 again as an illustration, train fares went up 11.7% before fare adjustment during this period, ranging from 0.22% to 6.42%; 2.19% in 1994; 6.42% in 1995; 0.22% in 1997 and 2.23% in the year 2000. If we do regular small increases on a yearly basis, it amounts to a small fare adjustment of 1.17%, which, I believe, would be more acceptable, and it avoids the need for deferring fare adjustments until such time that it may not be acceptable. For public transport operators, it means more certainty in financial planning, the ability to better plan for capital expenditure and investment. It would also smoothen the earnings of public transport operators and avoid spikes in earnings, which, if taken in isolation, may be misinterpreted as obscene profits or unacceptable windfalls. Sir, it is never easy to find simple solutions to complex public transport issues. Sir, about 4 million passenger trips are made on buses and trains each day.”
“Sir, some have suggested that having representatives of public transport operators on the Council is not a good idea, as it may give a wrong perception, even though these representatives do not take part in the deliberations on fare increases and they have absolutely no say in approving fare increases. On the other hand, I am not sure whether it is a good idea to exclude them, because the Public Transport Council does more than approving fare increases. I do not know whether this Council should become an authority, or whether it should be a partnership between the Council and the public transport operators, so that it could look into the various aspects of public transport, so that services can be improved and costs can be contained. It is really a thankless job to do. There are suggestions to include other representatives, and even Members of this House. I am not sure whether there would be many volunteers rushing for this job. There is no doubt that the Public Transport Council must continue to be stringent when dealing with fare adjustments. Public transport operators must continue to improve productivity and contain costs. How best do we then deal with fare adjustments when they become necessary? Sir, there were suggestions that, if public transport service is not provided by commercial enterprise, then perhaps there could be lower cost to them. But, Sir, if the cost of capital is not provided by shareholders and, therefore, the required profit and a reasonable return, then it has to be provided by loans, which also have interest cost. So, either way, the cost factor would always be there. Sir, it is not a practical solution to allow only fare increases when the economy is doing well, as the need to adjust fares may not coincide with the economic cycle.”
“But I would like to add that the record does show, for example, that during the last 10-year period from 1992-2001, PTC approved a total of 11.7% for train fare increase and 13.7% for bus fare increase. The consumer price index went up 13.3%, while real wage increased by 53% and nominal wage increased by 68% over the same 10-year period. The fare increase approved by PTC could not cover wage and other operating cost increases. Operators had to find other means to increase revenue, adopt vigorous productivity improvements to make ends meet, and to have reasonable profits to keep shareholders satisfied. Sir, I do not think there was very much argument on reasonable returns to transport operators and their shareholders. The nature of these companies is also such that investors find that they are really similar to utilities stock. In the case of SMRT, they gave a dividend yield of 4.12%, and for SBS, 4.24%, which are very much in line with market expectations. So, we can see from the last round of fare increases that there were no big movements in their share prices, a reflection that it is very much in line with market expectations. Shareholders who invest in these companies also do not expect exciting share price movements like those in the technology industries. It is only fair to say that PTC has done a good job in keeping public transport fares within the range of the CPI, and substantially below that of real wage increases, making it affordable to commuters. At the same time, it did not allow automatic fare increases and ensured that operators earned their keep through better productivity. Sir, I believe that the work of the PTC should be recognised by this House and that they should be allowed to continue with their work without interference.”
“Transport workers, who provide 365 days of service, and almost round-the-clock service on a daily basis, have to be appropriately remunerated and motivated in order to provide good service to commuters. They too expect yearly adjustment and incentives, so that they will be within range of their fellow workers. Some have argued that, in difficult times such as this, probably transport workers should also moderate their expectations. But this is very much more of the condition in the labour market. Not many realise, for example, that bus companies face perennial difficulties in recruiting and retaining bus crews. Singaporeans shun this kind of work, finding it tough and the working hours unearthly - waking up at 4 o'clock to do the first shift, and going home at 3 o'clock in the morning when they finish the last shift. They find the pay not attractive, as it is not commensurate with the type of hardship they have to endure. Their work is seldom appreciated by others, and they have to face complaints of commuters who have higher demands, and higher and higher expectations. Whether in good times or bad, bus companies have to pay attractive salaries to attract and retain workers, so that they can continue with their operation. The Public Transport Council, the body responsible for regulating public transport service and approving bus fares, has a thankless job to do. It has to face the wrath of public opinion whenever there is a fare adjustment, and also the unhappiness of public transport operators, who usually do not find the approved increases meet the needs of what they have justified. Whether in good times or bad, there are always complaints on fare adjustments. And we can all understand that it is more so during difficult times, such as now.”
“Sir, I wish to declare my interest as a Director of the SMRT Corporation. I also add that I no longer own any shares in any of the public transport companies since the merger of MRT and TIBS in December 2001. Sir, I join this debate not to defend the public transport operators, but with a hope to give a different perspective to the issue, so that a more balanced view on both sides of the coin would be considered. Mr Speaker, Sir, I empathise with the commuting public, who are affected by the recent round of fare increases. Fare adjustment not merely has its financial implications, but it is also an emotive issue. In an article in Shin Min Daily, a writer angrily complained that his "chwee kueh" has increased from $1 to $1.20. And the owner told this writer that the increase was a result of the recent fare increase. So we can see how emotive things can get. Sir, on the other hand, I also empathise with the Public Transport Council which, as some Members have also pointed out, has the unenviable task of balancing the interests of the commuting public with the need of the public transport operators to remain financially viable in order to provide the required standard of service. The nature of public transport service is such that it is characterised by huge capital investments, high manpower and substantial energy or fuel cost. For example, in the case of SMRT, it has fixed assets of $1.38 billion, including those of TIBS. On high manpower and substantial energy or fuel costs, in the case of Singapore, wage bill for bus operators is about 50% of total operating cost, and 40% for train operators.”