Ong Ah Heng
Singapore
“[For vernacular speech, please refer to Appendix A*.] Mr Chairman, in 2010, there were 54 deaths due to workplace accidents, down from 70 deaths in 2009. This is despite a 14% surge in construction projects worth close to $26 billion. Death at the worksite is a painful incident. Even one death is one death too many.”
“I urge the Ministry of Manpower to come up with a system to systematically monitor work hours – both formal as well as informal hours. We must have reliable data on overtime work – especially unpaid overtime. With available data, we can then investigate why Singaporeans overwork.”
“[For vernacular speech, please refer to Appendix A*.] Mr Chairman, Singaporeans are living longer, with many living beyond 80 years old. If we retire at the current retirement age of 62 and live to 72, there is still a good 10 years of our life. We must make good use of the time after our retirement at age 62.”
“[For vernacular speech, please refer to *Cols. 3833-3834. Appendix A*.] Madam, the working adults spend more than half their waking hours at the workplace. The workplace is also where most people identify as the source of their stress. A healthy staff is an asset to any organisation. This is a fact well-recognised by all companies.”
“Workplace directly influences physical, psychological, economic and social well-being of workers which, in turn, affects the health of their families, community and eventually society. A health promoting workplace can now become a pre-requisite for sustainable social and economic development.”
“[For vernacular speech, please refer to Appendix A*.] Mr Speaker, it is not because I am a PAP MP that I support the Budget of the Government. Just now, I gave my views on anti-terrorism, for example. I think we are too complacent and not thinking enough of potential dangers.”
The complete record
Every one of 272 lines we hold for Ong Ah Heng, in date order, each linked to its source. Free to read, in full, without an account. Page 3 of 6.
“I think more efforts are required to publicise these programmes so that they can really serve their purpose. There are basically three ways to tackle the structural unemployment problem. First, we must find good jobs locally, and not just those low-end jobs, that would suit the physical conditions of older workers. At the moment, we have identified 12 areas where the jobs could be redesigned to suit the older workers. I think this is a move in the right direction. Secondly, we need to work with the employers to redesign these jobs so that they will pay better. Thirdly, we should also consider whether the pay of these jobs is adequate for the workers to meet their basic family expenses. Of course, these are no easy tasks, particularly to ensure that the workers have enough to meet their cost of living. It is easier said than done. I suggest that for those workers who are willing to help themselves let them have access to the ComCare Fund to tide over the transition period. And then they can stand on their feet as they progress to better salary scales in their new jobs. 1.30 pm As for those who are still unable to cope with the cost of living with their meagre salary, I suggest that we set up liaison groups or committees comprising grassroots leaders at each constituency to act as mentors to give advice and moral support, keep constant contacts with them and understand their needs, and to follow up with the necessary aid from the appropriate agencies, such as CDC, ComCare Fund, grassroots associations, welfare fund or some financial grant. I think we need to boost their morale and confidence so that they can have the determination to stay employed and to accept training so that their families would have a better sense of security. Workforce Development Agency”
“Sir, experience tells us that, as the economy progresses, there is always a group of people who find it difficult to catch up in their workplace or rejoin the workforce. A man-in-the-street would tell you that this is not a new problem. It has been in existence since a long time ago, but it is just that the situation is more acute now. He would tell me, "My father used to tell me the same problem. As you get older you tend to be slower in all aspects. You are not as agile and as skilful as the young people, and yet you are more expensive. Of course, the boss does not want to employ you any more. So what can we do? This is life!" I think it is better to have some money in the pocket now because you do not know when you will be retrenched or retired. As the Chinese used to say, "The waves at the back push the waves in front ahead", or as the older worker would say, “The world today belongs to the young." In fact, older workers of every generation will say the same thing. I think we all take turns to say this as we grow older. So as our economy becomes more competitive and the pace of change faster, structural unemployment will become a serious problem, as it is the case now. It is the same group of workers - the older, less competitive and yet more expensive ones who are reaching the age of late 40s and early 50s. The less educated or skilful ones are the most vulnerable workers. If the pace of change continues to quicken, structural unemployment would happen even to younger workers in the early 40s and late 30s. To the rank-and-file workers, the Re-employment Assistance Programme (REAP) and the ComCare Fund introduced by the Government in January this year are important programmes to know.”
“Sir, I would like to talk about sexuality education in schools and find out what is the progress in this aspect. According to a newspaper report, there are some 50 young girls who got pregnant before marriage in Singapore each year. Has the standard of morality among our younger people gone down? Has this anything to do with our opening up? I would like to ask the Minister what kind of sexuality education has been conducted in the schools. Is there any review on the contents of these courses? Is he happy with the progress in the teaching of sexuality education in schools? Three days ago, I saw a report in the CCTV that from Suzhou onwards, the schools in China have already included sexuality education in their primary school curriculum. Now, it has been extended to Shanghai, Shenyang and Guangzhou. I would like to ask the Minister whether MOE has conducted any survey on the family backgrounds of our students of each age group, and their views on pre-marital sex. In China, it is reported that HIV cases are increasing at an alarming rate. The matter is getting more and more serious. The spread of HIV has created a tremendous impact on the future of mankind. I am not suggesting that we copy from China. I believe we can step up the introduction of sexuality education in our schools and include it in the formal school curriculum. Students from Poor Family”
“Mr Chairman, Sir, in October 1997, MOE implemented the student Community Involvement Plan (CIP). I support the scheme because, apart from inculcating knowledge to the students, the teachers also have the responsibility of teaching the students how to become good citizens. Such community involvement would build up the students' sense of responsibility and their compassion for the old. During my visits to my constituency, I notice that younger people are now more willing to be involved in community activities. Now that it has been seven years since we implemented this scheme, what has been the progress? Are we encouraging more young people to become volunteers? During the tsunami episode, we find that Singaporeans are more concerted in their efforts to help others. I know that some schools have also mobilised their students and rallied their support for such a charity work. I think we should have more such activities so that our people could work towards a caring society for all. Religious Knowledge”
“In our daily lives, very often we would fall down and either sprain our ankles or dislocate our joints. More often than not, the ordinary folks would go to the traditional Chinese massage therapists or die da sinsehs for treatment. If the sinseh is known to be effective and well-established, he would be very popular. People may go all the way from one part of Singapore to another part to seek treatment from him. Most of these massage sinsehs hail from martial arts background and learn their skills from their fathers or masters. They come from all schools of Chinese martial arts, such as the Shaolin “Touch Vital Point�? therapy. The Chinese Physicians' Certification Examination currently being conducted in Singapore covers a wide range of medical subjects such as internal medicine, acupuncture, etc. The traditional die da sinsehs may have been practising all their lives and are very experienced, but this kind of certification examination is just not their cup of tea. I urge the Government to allow them to take an alternative form of certification more attuned to their specialty so that they could continue to practise their skills for the benefit of the community. 12.15 pm”
“He says that one way to do that is to incentivise staff by sharing the benefits when there is a suggestion that leads to cost decreases. We have various schemes to do this. One way in which we have done this is that we have introduced Net Economic Value in the Ministry's cost assessment. And if there is a positive delta in the net economic value, some of the gains will be shared with the staff. I think the overall picture is important. If you look at what we are doing to ensure that we have a lean and trim government, and you compare that on an international basis, this is how it looks like. Singapore's public spending share of GDP is already among the lowest in the world. Our total expenditure is about 17% of GDP, very low, compared to 40% in the UK; 54% in France; 50% in Denmark and 55% in Sweden. Unlike many other countries, we have been able to prevent public spending from spiralling upwards by setting pre-determined caps for the overall Government budget. This means establishing limits by setting Ministries' budgets as a percentage of GDP. Our operating revenues have averaged about 16%-17% of GDP in recent years, and we expect this to be the case over the medium term. Thus, the limit we have set for total expenditure is also about 17% of GDP. This global limit sets the parameters for establishing the block budget caps of the Ministries. We have cut the budget caps of Ministries across the board, like Mr Inderjit Singh said, by a total of 5% - 2% in FY 04 and now 3% in FY 05.”
“Sir, the Prime Minister and Minister for Finance said just now that because 2,500 people die every year from tobacco related diseases, the Government increased the tobacco tax to prevent this. According to official statistics, a lot of older people smoke. Why do we increase tobacco tax and not liquor tax? If people drink and drive, it will also cause a lot of deaths. So I tell some people that next year, the liquor tax will surely go up. But they told me that because our Ministers and MPs drink, therefore there is no increase in the liquor tax. Since Ministers and MPs do not smoke, the tobacco tax was increased. I would like the Minister to explain why the liquor tax is not increased this year. The Acting Second Minister for Finance (Mr Raymond Lim Siang Keat): Sir, I would like to thank Members for their comments and suggestions. To begin, I think it is useful to put things in context. I think it bears repeating the changed fiscal environment that we are living in right now. Going forward, our revenue growth will be slower, because the economy would have more moderate growth. And against that, there will be persistent pressure for spending to increase because of demographic changes, ageing population, structural changes and vulnerable workers. More than ever, we need to husband our resources carefully and spend prudently. We must continue to establish limits on our spending through budget ceilings, maximise discretion, ensure the best value for money and, like Mr Leong Horn Kee said, measure performance accurately. Let me now turn to the need to establish limits to budget ceiling. This is a point germane to what Mr Inderjit Singh brought up. He says that we should have stringent cost control.”
“" Because our father was poor, so we had a bad life. But now we have better income and our children are enjoying themselves. So, as a parent, we should remind our children. We should tell them that we should not take this for granted.We must correct them.We must educate them. Only thenwhen our children grow up and when they are leadersin any field, they would know what is the proper way of thinking. Sir, all in all, I would like to conclude by thanking the Finance Minister for the prudent and compassionate Budget 2005, and I give full support to it.”
“The Government should create some incentives to keep them at work so that they would feel that it is meaningful for them to continue workingandthat they could gradually progress and earn higher salary and would be able to stand on their own feet. We all know that there are always ups and downs in the economy. It is not possible for us to enjoy good surpluses year after year. This is life. However, it takes a good government to be prudent so that during good times, it will be able to respond swiftly.And during bad times, it will be able to build up strong fundamentals and policies, and create opportunities for all and take care of the less fortunate ones among us. I read in the newspaper that nowadays some young Singaporeans are no longer interested in the same old story of how the old guards built up Singapore to where it is today. They feel that we are just trying to blow our own trumpet. But if you ask me to choose between some unrealistic ideals and a good government with sound policies, I would choose the latter, because it is a better bet for a brighter future for our children. I still believe that we need to know how our first generation leaders built our nation,the passion, the hard work that they had put in. It is from our history of nation building that we know the strengths and weaknesses of our nation. It will remind us to cherish what we have now and to stand on realistic grounds when we seek to build a better future and never lose touch with realities. It is quite common sometimes to hear our children saying, "Daddy, your father was poor but my father is not poor. So during your younger days, you had a hard life. You were not able to enjoy all the material comforts that I have now. That's too bad. There is nothing we can do about it. I sympathise with you.”
“If we are just looking at some overall statistics to evaluate the effectiveness of these programmes, sometimes theremight besome error because there is a strong tendency for officers on the ground to focus on those sectors which contribute to their KPIs and neglect the people who really need their help. We need to know who these people are, what are the jobs that they have been placed in, and whether this is sustainable, without unrealistic subsidies given out to the businesses from the Government grants. And, more importantly, could these people really stay on and benefit from the programmes and would not leave the job after collecting some subsidies? Here, I would like to raise another point on these job assistance programmes. Many elderly workers, who are less educated, have been telling me: "Whenever the Government recommends jobs to us, these are all very low-end jobs like cleaners, gardeners. IfI wanted these jobs, I do not need the Government's recommendation. I could easily get them myself. Why should the Government spend so much money to help us get these jobs? Why does it not just distribute the money among us?" And they also said: "You know, forthis type of job, you get only $800 to $1,000 a month. Is it enough? You have to pay for utility bills, the children's bus fares, school fees, and after I have paid all these fees, I would have nothing left for myself." Mr Speaker, Sir, these are not very pleasant remarks, but these are practical concerns of the elderly and the less educated workers. So I would like to urge the Government to give priority to assist those people who are willing to take up low-starting salary jobs but who are unable to make ends meet.”
“For them, to become Members of Parliament, they have to spend about S$10 million, and so everybody thought that they would have to have more elections and then everybody would have some income. Now, if Singapore is like Taiwan, then I hope that maybe we should have elections every half a year, so that everyone would have some good income. So, I think this is a serious matter and we should look at it very seriously. Having said that, we need to build up the character of self-reliance among Singaporeans. People must play their part. If this is not the case, then no matter how much surplus we have, it is never enough. There is a limit to how much the Government could do to solve all the problems facing an average Singaporean. It is like one of my residents who came to me the day after the Budget was announced and said, "Mr Ong, the media says that this year's budget benefits everyone. Where is the money? The money goes to all the various accounts. You can see them but you cannot use them. There is still no money, no cash in my hand!" So, can you satisfy everybody? Can you have a budget that satisfies everybody? This brings home the point that the Government should continue its targeted approach to help Singaporeans and continue to put in more resources in the Lifelong Learning Fund and re-employment assistance programmes. We must help those who are unemployed so that they could stand on their feet again, and this is very important. Mr Speaker, Sir, it is equally important to make sure that these skills training and job re-creation programmes would help those people who require the help most and make sure that they actually benefit from them.”
“What I have found out is that the Government's budgets over the last few years have been consistent, aiming to make sure that Singapore succeeds as it transforms itself and takes care of the short and long term needs of Singaporeans, so that no one is left behind. Let us look at the governments in the other countries. Not many countries are able to reward hard work and excellence and keep their taxes low and have a government that is lean and effective, and build up sound economic and social fundamentals and go all the way out to help the needy and the less fortunate in the society. Why are we doing all these? I believe it is to build up a progressive and cohesive nation. Now, if we ask any workeron the shop floor, "If your company makes profits, would it share its profits with you, like what the Government is doing - by sharing all the fruits ofits success withits people?" I am sure they would say it is impossible. Yes, the Government is able to share its surplus of $13 billion with our people, and this is not something which all the countries could do because our Government knows how to make use of its surplus to serve the people. Like in the Chinese classic, Da Xue, it says,cai ju min san, cai san min ju,that is, when wealth is accumulated with the government, the people would be dispersed; but when wealth is shared with the people, then the people would congregate. So it takes a good government to know how to do this. Mr Speaker, Sir, the Government budget is a serious business and it must not be viewed as just an election tool. Although I am not very familiar with the situation in Taiwan, I have read the newspapers about its political situation.”
“Mr Speaker, Sir, I welcome the Budget for 2005 proposed by the Finance Minister. To me, this is a budget that aims to take care of as many different groups of people as possible and, of course, it must be within our means to do so. Clearly, the Government is taking a targeted approach in helping tobuild up our economic capacities to help the young, the elderly, the workers, the needy families, our medical needs, our education and our retirement -all in, to help build an inclusive and progressive nation. Taking a focused approach in helping fellow Singaporeans is important because this would help to make sure that people who really need help would get it and this would avoid the problems of a welfare state. It also helps to better use our resources to meet the many needs of all Singaporeans, as Singapore restructures itself to enter a new phase of development. As described by my parliamentary colleagues, Dr Magad and Mr Inderjit Singh, many people have said that this is an election year budget. I had actually checked the budget summaries for the years 2002-2004. I could see that there were also many rebates, a lot of goodies such as ERS, New Singapore Shares, CPF and Medisave top-ups and other rebates or fund transfers related to education, skills training, needy families, medical and utilities. Now, if these goodies are provided by the Government this year and people therefore say that this is an election year budget, then what about the budgets for 2002, 2003 and 2004? Was the Government having an election then? Surely not! Mr Speaker, Sir, the success of an election depends very much on the daily groundwork we doat our constituency, as a Member of Parliament, and how to win the confidence ofthe voters in our constituency.”
“On one occasion, two foreign friends went to look for me when I was conducting my meet-the-people session and they stayed behind and observed my session. At the end of it, one of them said to me, "It's very strange. Why is it that all these people come to the Government for help when they have difficulties? If the Government has problems, who do they go to?" I was taken by surprise as I did not expect him to ask me such a question. My reply to him was, "If the Government has problems, they will go to the people for help." Until today, I am still wondering if I had given him the correct answer. Sir, this White Paper has clearly shown the sincerity of the Government to help the Chinese students to master the Chinese Language and to provide opportunities for students with the potential to go further by offering ample opportunities to take Higher Chinese or the China studies courses. However, to implement these recommendations of the report, we need the support of the Chinese community. So I would like to take this opportunity to appeal to the Chinese community in Singapore. This is the time when the Government needs their help. Please come forward to lend their support so that our younger generation of Singaporeans will benefit from this Chinese Language curriculum and pedagogy reform and master their Chinese. Sir, I support the motion.”
“We can see today that Minister Mentor had made the right decision on our education policy. Today, Singapore, with no natural resources, could stand up tall among all the other economies in the world. In those days if we had allowed the Chinese chauvinists to win the day, would we have what we have in Singapore today? Just now, Mr Chiam See Tong said that he did not agree with this reform and he wanted us to revert to having the results of Chinese Language examination counted as part of the university admission criteria. I am puzzled. Is this the mentality of Mr Chiam See Tong? Does he not know that many highly English educated people have migrated because their children could not be admitted to university because they failed their Chinese paper in the examinations? Why is Mr Chiam See Tong now going the other way and saying that we should revive this requirement of a pass in Chinese Language to be admitted to the university? I can tell you that in the 1960s, many politicians tried to win votes by playing on the Chinese Language issues. This is very dangerous. Mr Chiam See Tong is not here. I hope that he is not trying to use this to win votes from the Chinese voters. If he thinks this way, it is very stupid of him. Mr Speaker, Sir, because of my trade union connections, I have the opportunity to meet trade unionists from all over the world. Whenever they talk about Singapore, they would be full of praise for our congestion-free traffic, clean streets, and remarked that Mr Lee Kuan Yew had taken great care of our people in every aspect. I do not know whether they are just flattering us or telling us their real feelings. Whatever it is, it is very comforting to hear that.”
“If China did not have Deng Xiao Ping to introduce the economic reform and opened up in 1978, China's economy would not be so strong today and there would not be so many Germans and French eager to learn Chinese so that they will not lose the opportunities brought about by the emergence of the Chinese economy. The ethnic Chinese in Singapore have a lot of similarities in their culture and affinity with China. Therefore, if we have some interesting methods to teach the students to learn Mandarin, I am sure they will be able to master the Chinese Language and benefit from the opportunities brought about by the emergence of the Chinese economy. I hope that our younger generation of Singaporeans would benefit in this respect. However, I read an article in Lianhe Zaobao on 18th November and I felt that it was very regrettable that there are still some people who are ridiculing us that we are using the economic benefits to induce the Chinese Singaporeans to learn the mother tongue and said that we are utilitarians. I do not know what they are thinking. We are pragmatic people. In the early days of nation building, we depended on international trade. We promoted English education because we needed to master the English language so that we could learn the new technology and management know-how from the West so as to attract foreign companies to come to Singapore to invest and generate more jobs for our people. Minister Mentor, at that time, asked our Singaporeans not to neglect our mother tongue but we must place emphasis on English. Today, our younger generation is proficient in English. They have this advantage. They are talented in the technology and management fields, and they command a premium wherever they go in this global and knowledge-based economy.”
“For those parents living in HDB estates, they should encourage their children to participate in activities organised by the community centres and the residents committees, because in such gatherings, from my experience, most residents converse in Mandarin. At the same time, we can see some of these innocent children playing and running about and speaking very naturally in Mandarin. The children's programmes in community centres offer a lot of opportunities for the children and their parents to learn to listen to and speak Mandarin. We must admit that most residents in HDB estates are Mandarin-speaking and whenever they meet one another along the corridor, they would greet one another in Mandarin. I feel that the parents play a very important part. They must spontaneously bring their children to these activities so that their children will be able to speak fluent Mandarin. That should not be a problem. Sir, Minister Mentor Lee promoted the Speak Mandarin Campaign in 1978. Twenty-six years later, we have already seen the results. Although it is not 100%, everywhere in Singapore, we could hear some older generation of Chinese residents speaking in simple Mandarin. This time, with this reform to the curriculum and pedagogy, together with the support of the parents and the concerted efforts of the Chinese community, I do not think we need to wait for another 26 years before our Chinese students could speak fluent Mandarin, listen to Mandarin, read Chinese magazines, watch Chinese TV programmes or surf the Net in Chinese.”
“According to a survey by Lianhe Zaobao, about three-quarters of the students indicated that their parents and the schools themselves encouraged the students to learn Chinese. The Straits Times conducted a similar survey which revealed that 87% of the parents feel that their children should learn Chinese. This is very encouraging. Especially in the English-speaking families, we should encourage the children to speak Mandarin among themselves. The parents should allow their children to watch Chinese TV programmes. If they can afford it, they should also support their children by buying some comics and magazines for them to learn more Chinese characters. Encouraging the children to watch TV programmes is an effective means to promote the speaking and listening of Mandarin. In Singapore, some former Nantah graduates told me that nowadays they habitually tune in to the Phoenix Chinese Channel or the CCTV. Why? Because they told me that the Chinese programmes on our local TV stations are not very good for the children. I do not have time to watch TV at home, but this was the feedback I had from the Chinese-speaking parents in Singapore. I am worried if our younger people watch only the Phoenix Channel or CCTV and not our local TV stations. Of course, the quality of the programmes on Phoenix Channel and CCTV are of better quality, but the values they promote may be quite different from ours. I do not know whether the Ministry of Education would consider investing in some good TV programmes for our local TV stations to telecast, for the benefit of our children, particularly the Chinese children. Otherwise, 10-20 years later, the values of our children would be that of mainland China, and not our own.”
“Many Chinese teachers are afraid of trouble, because if they force the students to do the homework, the next day the parents may write emails and complain to the Ministry of Education, and they will be in trouble. For the Chinese teachers, I think promotion is just a material reward. To them, the most important thing is the moral support. I hope that the Ministry of Education would not neglect moral support for the Chinese teachers. Secondly, I feel that the environment is very important in the learning of any language. Take myself, for example. In the 50s, from primary school to secondary school, every year, I had only one English textbook. In my six years in primary school, I spoke only dialects and Mandarin. At home, I spoke only dialects and hardly any Mandarin. While I was at Nanyang University, I learnt a bit more English with one year in the Language Centre, having two lessons a week. Fortunately, we had a foreign professor who taught us political studies in English. All the other subjects were taught in Mandarin. In our campus, we conversed with our classmates either in Mandarin or in dialects. As a result, at the time of my graduation, I could only speak very stiff and far-from-eloquent English. Sir, I am giving this illustration with the hope that our students today will not feel so frustrated as I was when I was learning English in my days, when they learnt Chinese. I understand that in some schools, Mandarin is being used in the teaching of music, arts and physical education. I think it is very important that schools build up the environment for Mandarin to be spoken, while taking into consideration the feelings of the non-Chinese students. I think the most important thing is the attitude of the parents.”
“Every Monday, the teacher would nominate a student to go on the stage and tell stories to his classmates. The teacher told us that this was confidence-building. The Chinese traditional values will then be imparted to us, bit by bit. In my generation, when my mother imparted the traditional traditions to me, it was not in Mandarin but in Hokkien. The older generation used dialects to inculcate in us the traditional values. This report also recommended that we recruit local graduates, foreign teachers and even retired teachers to reinforce our team of Chinese teachers, and also to provide them with the opportunities to upgrade themselves. In the trade unions, I had the opportunity to get in touch with some Chinese teachers. In our casual talks, I cannot help getting the impression that our Chinese teachers are being treated as "second class" teachers. They do not get the respect that they deserve and very often they would become the "contractors" for all the extra-curricular activities in the school, like taking the soccer team or basketball team to competitions, hiking, mountain-climbing, etc. One teacher told me this very strange phenomenon of the learning of Chinese by his students. It hurts to divulge it openly but, regrettably, I have to say it. I was told that when the teacher asked her students to bring some homework home to do, one of the students did not do it. When confronted, the student said, "My mother said that if I don't have the time, don't do the Chinese homework." If we want our students to learn Chinese well, I think we need to, first of all, change the mentality of the parents.”
“Mr Speaker, Sir, the nine recommendations presented by the Chinese Language Curriculum and Pedagogy Review Committee have won the support and praise from the Chinese community. The recommendation is to use a more flexible modular method and to have a differentiated approach to teach students coming from the Chinese-speaking families and English-speaking families so that they would first learn to speak and listen to Mandarin and then recognise the characters and eventually use the Microsoft Chinese software to write the Chinese characters. For these recommendations to be successful, there are two very important factors. As stated in the report, the teachers are the key to the implementation of this reform. The Ministry of Education should, first of all, identify a group of Chinese teachers who are enthusiastic, energetic and dedicated, and provide them with the necessary training. They should be kind and affable, have a love for children and could get along well with the students. Only then could they use some lively and interesting methods to teach Chinese and, in turn, the students will be turned on and catch up with the learning. They could also use comics and other supplementary materials to teach the students the traditional culture and values. I remember when I was in primary school, the teachers used to inculcate in us the traditional values through day-to-day happenings. As a form of respect, we would be taught to greet the teachers whenever we met them by saying, "Good morning, teacher" or "Good afternoon, teacher". To cultivate a sense of responsibility, we were told not to litter, or to spit on the floor. As a courtesy to our classmates, we were told not to tease them or make fun of them.”
“Therefore, I would like to urge the Ministry to step up its efforts to conduct various educational seminars and talks to promote healthy lifestyle as preventive measures. It is very important to educate Singaporeans on how to prevent the failures of organs and to change their diet and lifestyles. In view of the fact that we have a growing ageing population, the Government needs to educate the public. Otherwise, no matter how many organs we may have to harvest, they will not be enough to meet the demand. I agree with Members who expressed concern over the illegal trafficking of organs. I know of a number of people who actually went overseas to purchase organs for transplantation. It is useless for us to enhance the penalty in Singapore for illegal trafficking of organs as people who are in need would just go overseas to acquire organs. They are eager and prepared to spend $20,000-$30,000 to buy a kidney for transplant and prolong their lives for, say, three to five years. We cannot stop them as they just could not afford to wait so long for their turn in Singapore. They would rather spend the money, and take the risk to go overseas to purchase the much needed organ. Mr Speaker, Sir, if this sort of thing happens to someone close to you, would you have the heart to stop him from doing so? We cannot stop people from pursuing a healthy body by going overseas to acquire an organ. Therefore, it is important for the Government to educate our people on how to keep a healthy lifestyle so that their bodies will not be so prone to disease and their organs will remain good and healthy, and there is no need to go for transplant to replace their failed organs.”
“We can also go through various channels and even use our mother tongue to let those senior citizens understand that their fear and concern are really unnecessary. As a matter of fact, once they have passed the age of 60, their organs will not be harvested under this Bill. For those who wish to opt out for whatever reasons, I hope that the Ministry of Health will make the opt-out procedure simple and easy. We must not take away the patient's organs under any circumstances by taking advantage of the patient's ignorance or helplessness. This will be unethical and despicable. Some Chinese people still hold dearly to very traditional beliefs, especially in funeral rites. They tend to believe that when a person dies, his body should remain whole. In my constituency's meet-the-people sessions, I have occasions to come across some residents who have just lost their relatives and they sought my help to stop the pathologists to do an autopsy on the deceased for fear that his body would be mutilated, as they want the deceased's body to remain intact. The Chinese people feel very strongly that it would be disrespectful to the deceased if his body could not remain whole and intact. I would like to urge the Chinese people, who still hold on to these traditional beliefs, to change their mindset because with the advances in medical science, the organs of the dead now can be transplanted to save more lives. As mentioned by some colleagues before me, recent studies in the United States have revealed that some heart or liver transplant patients suffer from kidney failure within a few years after the transplant, and had to go for dialysis or even kidney transplant. It seems that there is indeed a sequela to these transplant operations.”
“Mr Speaker, Sir, I rise to support the Human Organ Transplant (Amendment) Bill. The inclusion of the non-accidental deaths, heart, liver and cornea into our system is the most effective way to increase the number of available organs for transplantation. In theory, an opt-in system would be more ideal and meaningful. However, experience shows that, whether in Singapore or elsewhere, the response to opt-in for donation has been far from ideal. In fact, according to a survey by the Ministry of Health, most Singaporeans actually support organ donations, but generally do not take the trouble to make the relevant applications. Another survey done by MOH also indicated that there is still a small number of Singaporeans who are concerned that doctors might diagnose brain death prematurely. There is a group that is uncomfortable with the definition of "brain death" because, to them, a person is dead only when his or her heart stops beating. Most young people can understand and accept the concept of brain death. They also have faith in our medical personnel. However, there are some old folks and those who are not so well-educated who seem to have difficulty accepting this definition of death and they are concerned that the donors would be pronounced dead prematurely. This is probably due to a lack of understanding of the definition. The Ministry has responded that it would be conducting regular public education programmes in partnership with the grassroots organisations to dispel such fears so that more people would be aware of the definition of brain death. I fully support this initiative. We must build up the public's faith in our medical personnel. Doctors will do their utmost to save the life of every patient and will not treat their patients disrespectfully.”
“Mr Speaker, Sir, I want to say the same thing. Why did the SSC officer not tell him the truth that they did conduct a briefing? The second clarification I want to make is: is the Minister giving the message to all Singaporeans that the swimming pool admission fees will increase with effect from 1st October despite DPM's call on Ministries to cut cost and not to increase fees? I just want to make a clarification whether the increase in admission fees will be implemented with effect from 1st October.”
“Do not under-estimate these strengths nor our ability to read these changes. Am I overly optimistic? Do I not fear the tiger of globalisation, the challenges that Members paint and the companies tell us? Well, when a tiger is chasing you, you need not be the fastest to survive. Just run fast enough so that there is one other person for the tiger to satisfy his hunger. We have built up our strengths in these past years to run well. With these CPF and wage reforms, we would have further lightened our loads. We are well positioned to avoid hazards and pitfalls. If we continue on this new road, expand our minds to see possibilities and capitalise on our strengths and opportunities, we will prosper.”
“Because Singaporeans will not falter. Years of nation building have bonded a people with unique characteristics. Shared pains and gains have created a uniquely Singaporean way, that is, a way of life that is worth preserving - with all its quirks and eccentricities. I agree with Dr Tan Cheng Bock that Singaporean can do. His ingrained beliefs in hard work, justice, integrity are universal premiums. I travel frequently and I meet many Presidents of Ivy League universities in USA. They tell me that there is only one thing wrong with Singaporean students - that there are not enough of them. They say this even though Singapore students form the largest contingent from any state, including the states of the United States. They want more of us. They wax lyrical about how they wish every freshman performed like our Singaporeans. Of course, in typical Asian humility, I respond by saying, "Well, we have some strengths, but many weaknesses too." But, inwardly, when they tell me this, I swell with pride. CEOs of multi-national corporations here in the biopharmaceutical and process industry sectors tell that we have among the best technical workers in the world. They have one wish - that Singaporeans would be less driven, because many of them leave to further their education, not content to stay still. But I like this drive. Singapore companies tell us that two positions, when they go overseas, must be occupied by Singaporeans, ie, the manager and the financial controller. Why? No prizes for those who guess the reason - because they trust Singaporeans. Despite the catch-up of other countries, like China and India, we can still hold our own in technical and engineering skills. Our efforts in educating Singaporeans still stand us in good stead.”
“The patient is not sick. She only needs to shed a few pounds. Too many good years and over-indulgence have added girth. Some weight trimming is necessary and may not be bad for overall health. Even with the contribution rate at 30%, the majority of Singaporeans can own homes and retire adequately with their medical and retirement needs taken care of, if they are prudent. As I earlier showed, even the 25th percentile worker can still afford a 4-room flat and would have provided enough for his medical and retirement needs till 80. How many countries can achieve that? Almost every child born in Singapore today can be certain of 12 years of solid education. Mr Ong Ah Heng joked that perhaps the Government should just kelong and give 4-D tickets to Singaporeans. In fact, we have. Let me tell you why. Every student is subsidised about $4,000 for each year in primary school, $6,000 in secondary school, $8,000 in ITE, Junior College or polytechnic, and $11,000 in university. This means that every child born in Singapore receives at least $60,000 in education subsidies. This is not including the housing subsidy. 70% will obtain higher education that is the passport anywhere in the world to further his study. Access to good medical care will continue to be available to the masses, not only to the privileged or the rich. Here, in Singapore, you walk the streets feeling much safer than in many other countries. Children grow up well here. We, the adults, spend half the time debating why we spoil them, and the other half asking why we stress them. The same debate will be continued by our children when they become adults. Why do I believe so emphatically that Singapore will not only overcome but that we will prosper further? The music has not stopped.”
“It is a good company with enlightened human resource practices. UPS, led by Singaporean Managing Director, Mary Yeo, has encouraged multi-tasking and emphasised career development for their van drivers. During SARS, workers willingly worked flexible hours. Mrs Yu-Foo Yee Shoon has highlighted that we should tailor our solutions for older workers to upgrade their skills and find jobs. We agree. Companies must play their part to accommodate older workers who may be able to do the job very well. One HR manager told us that her company had problems with production in some of the plants. This is on a productivity issue. But this observant HR manager noted that workers were standing because of the height of the production line, and that shorter workers had difficulty doing the work because the line was too high for them. Minor adjustment was all that was needed to raise productivity. This sounds simple, but simple things are often not done. So this story should cheer Mr Seng Han Thong who called on companies to help local workers through job redesign. We all agree, and more can be done. But apart from wages and jobs, at the end of this debate, the question that will still remain in our minds is: will Singapore prosper again? Mr Tan Soo Khoon said that the music had died for him in 1998. Will Singapore prosper again? It depends. It depends on whether Singaporeans think our way of life is worth preserving. It depends if Singaporeans think this place is worth fighting for, not with bullets of steel but with steely resolve, an innovative spirit to capitalise on our strengths, diligence and determination. Is the Singapore Dream dead? As Mark Twain said, the news of the demise has been grossly exaggerated. Far from it. This doctor has examined the patient and found it well.”
“But when we are in a situation where there are large numbers of foreign workers and jobs available that Singaporeans do not want to take, I believe that we should focus on the message of getting people into jobs, not subsidising people for not working. And the measures that DPM announced on Friday, such as the Training for Employment scheme, the People-for-Jobs Traineeship Programme, the Work Assistance Programme, hold to this philosophy. I agree also that employers must play their part. And I am glad that the Singapore National Employers' Federation and the Singapore Business Federation have come out in strong support for these cuts. We all understand that the business climate is competitive. But there are many employers that we have come across that are competitive and, yet, treat their workers well. As Mr Ahmad Khalis says, retrenchment should be minimised. There should be less discrimination against older workers, a point raised by Mr Nithiah Nandan. The cost of hiring mature workers would be less because of these CPF changes, and older workers bring value through their experience and networking. They are also likely to stay longer on their jobs. We have good employers in Singapore. You may have read about Murata Singapore. It has been in Singapore for over 30 years. I visited them at the National Day Observance Ceremony and they told me they had not retrenched a single worker for the last 30 years. I thought they got it wrong. I asked, "Are you sure?" They said, "Yah, we don't. We have not retrenched a single worker." So, in good times, a company rewards the workers well with additional bonuses. But in bad times, they adjust various flexible schemes. Ms Braema Mathi brought up a point about United Parcel Services (UPS). And she is right.”
“We have come to a point where MOM goes down to the ground - you should allow your policy instruments to do that - but we recognise this is a transitionary period and we want to get a better feel of the ground. During one of our dialogues, a unionist told me that some Singaporeans dare not work in hotel kitchens because they feel isolated, as they are the only Singaporeans there, or that the supervisor is a foreigner and is perceived to be partial to hiring more foreigners. It is unlikely to be true, but it is a perception. We must and will break these psychological barriers down. My Ministry has been working closely with the hotel sector to better understand how to successfully place Singaporeans into jobs in this sector which has so many vacancies. The hotel management assures us that they are committed to help make this happen. In parallel, I have asked union leaders of NTUC unions to get their members to mentor new workers. In other words, let us accept the insecurity and the uncertainty. So, from the over 400,000 members that NUTC has, members can perhaps find mentors that stay in the same estate with the new workers, travel, eat together in the same company so that during the earlier adjustment period, it will tide them over and help them to stay in the job. And, yes, we should improve the efficiency of job matching and information provision. The Workforce Development Agency (WDA) will be launched soon to give this greater focus. As suggested by Mr Seng Han Thong, we will have to make sure that training is more effective. And I agree with Dr Tan Cheng Bock that we have to upgrade our skills in our construction, retail and restaurants. Some Members have asked that we look for solutions, in terms of social safety net in force.”
“The late payments form less than 1% of all accounts, but we can still improve by collecting CPF through electronic means. We will expedite this. Retaining Jobs, Job Redesign, Placements and Training I agree wholeheartedly with Mr Nithiah Nandan, Dr Wang Kai Yuen, Mr Heng Chee How, Mr Yeo Guat Kwang and Mr Ang Mong Seng that we should use these sacrifices that workers have made to translate to more jobs. The CPF changes will position us well for job creation. At the margins, it already has positive signals and, again, we should not diminish our efforts. For example, Venture Corporations and Philips Electronics Singapore both welcome the changes. Venture Corporations told our staff that together with their efforts to improve their employees' capabilities and skills, these CPF cuts will "give a boost to migrating more businesses and investments to Singapore". But in the meantime, we must redouble our efforts to place Singaporeans in jobs. We have to work faster to develop sectors that Singapore can be competitive. Secondly, all of us must do more to place Singaporeans in jobs that are available today - points brought up by Dr Warren Lee and Mr Ang Mong Seng. They said that we should raise again the importance of local workers being willing to take menial tasks. I agree. But we have also seen good evidence of worker attitude changing in the past half year. And I agree with Mr Nithiah Nandan that not all workers are choosy. We must not tar all workers with the same brush. For instance, many cleaning companies have told us that they can now hire locals for cleaning jobs and they do not need to ask for so many foreign workers. This is good news. But there is much more that we can do.”
“I also agree with Dr Chong, Mr Ahmad Magad and Ms Indranee Rajah that the CPF Board must educate Singaporeans as part of its mandate. The Board intends to start a process of investor education for its members, structured according to a member's life events. In other words, instead of waiting for you to log on to the CPF Board, we will track and push you information roughly before your marrying age or before the age that you will buy a property or start work, and tell you that these are the sums that you need to calculate. It flags up. It causes you to focus your mind on a particular financial aspect. These modules will be made available to members through the web. In addition, the CPF Board is working with the Monetary Authority of Singapore as part of an overall effort to educate investors because our surveys have shown that while awareness is there, the majority of CPF members are still not taking concrete steps to plan for retirement. With the ageing population, longer life-span and the retuning of the CPF, it is now even more important for Singaporeans to take retirement planning seriously. This includes the promotion of the use of the Supplementary Retirement Scheme, as suggested by Mr Ahmad Magad and Dr Mohamad Maliki. For specific groups, women and homemakers, suggested by Ms Irene Ng, Dr Jennifer Lee and Ms Braema Mathi, we will explore ways to improve their retirement adequacy. For part-time and casual workers, the point brought up by Dr Gan See Khem, the CPF Board has already implemented the ERC's recommendation to raise the floor for CPF contribution from the earlier threshold range of $200-$363 to a new threshold range of $500-$750. But I agree with Mr Zainudin Nordin that we should facilitate collection of CPF dues.”
“So for a person who makes SA contributions over a 30-year period, the 15-year Government bonds are a good benchmark as 15 years would represent the average tenure of his savings. Going forward, the CPF Board is studying two initiatives. Firstly, the Government has already said that in the long term, the interest rates on CPF savings will have to be pegged to market rates. We need to study this carefully. What benchmarks to adopt will also have implications for HDB housing loans, which are currently pegged at 0.1% above the OA rate. Whatever benchmarks that are adopted must lead to a sustainable interest rate paid on CPF savings. But I agree though that new models will have to be adopted to maximise retirement returns for Singaporeans so that we can better provide for retirement needs - points raised by Mr Andy Gan, Mr Ahmad Magad and Mr Chew Heng Ching. In line with the ERC's recommendations, the CPF Board has begun to explore the role of private fund managers to get better efficiencies. This was suggested by Mrs Lim Hwee Hua, Ms Irene Ng and Mr Ng Ser Miang. The intention is to pool savings to achieve economies of scales so as to lower cost of investments for members, achieve higher returns and greater certainty of income. The CPF Board is currently working to implement low-cost privately-managed pension plans (PPPs) as an additional option under the CPF Investment Scheme. This would give members a better chance of higher long-term returns by investing in a well-diversified portfolio. These PPPs should not require members to make complicated decisions. In other words, we do not envisage a buffet menu. We will keep it simple and understandable. This is to cater to the majority of CPF members who are not investment-savvy.”
“It is an option that is available to them today and it will be made easier with alternative housing available in the increase in rental flats. In other words, people say, "Well, they have more than 200,000 rental flats available. Why do I not sell and then rent?" They could. But do we want to actively push this? I am not so sure. We should be cautious as it may result in some being homeless as they sell their homes. All of us, who have meet-the-people-sessions, know the individual stories of some parents being abandoned by children whom they have been persuaded to part with their money. Members talked about interest rates. Can CPF increase interest rates? The Ordinary Account (OA) rate is currently determined quarterly based on the weighted average of the one-year fixed deposit rate (80% weightage) and the savings account rate (20% weightage) of the three major local banks. It is a basket of weights. But we have protected members under the CPF Act by subjecting this to a floor at 2.5%. Let me quote one example. DBS Bank pays only 0.8% for a one-year fixed deposit of more than $50,000 and 0.25% for savings account deposits. So, if we use this formula, I should be paying OA rate of less than 1%. Hence, the OA rate of 2.5% gives a better return to CPF members at present. What about the Special Account (SA) rate? In this regard, CPF members are getting more than a fair deal because the Special Account guarantees risk-free at 4%. One year Singapore Government Treasury bills are yielding 0.9% whereas 15-year Government bonds have been yielding less than 4% for the last 12 months and only begin to yield more than 4% recently.”
“How can we help Singaporeans meet these Minimum Sums, a point which Mr Heng Chee How asked. Structurally, the new changes, the reductions in the Ordinary Account and corresponding increase in the Special Account facilitate this, which means that if members are sensible in their housing commitments, it is likely that some 80% of future CPF members can meet the $120,000 Minimum Sum requirement at a contribution rate of 30%. Let me emphasise that this is not 33%. This is at 30%. It follows then that when we retune the use of the CPF towards the three objectives of retirement, healthcare and housing, we should not further expand the role of the CPF to be used for unemployment as suggested by Dr Wang, or other purposes such as starting a business, as suggested by Mr Chiam See Tong. Nevertheless, we can explore the idea of voluntary unemployment savings scheme, as suggested by Dr Mohamad Maliki. Providing better for retirement Several Members have asked for greater returns from the accumulated sums or to obtain different income streams - points raised by Mr Chew Heng Ching, Mrs Lim Hwee Hua, Mr Low Thia Khiang, Dr Ong Seh Hong and Mr Ng Ser Miang - I agree. Housing is the biggest asset for most Singaporeans and the Minister has announced relaxation on rental rules and it should help. We have explored reverse mortgages before, but the major roadblock has been that insurers are only prepared to offer "fixed term" reverse mortgage. This runs the risk of the elderly lessees being evicted from their flats should they outlive the tenure of their reverse mortgages, which is a likely possibility. Nevertheless, we can always revisit the issue. The other option is for Singaporeans to sell their properties.”
“On top of that, he would have accrued enough in his lifetime and set aside adequately for his basic medical and retirement expenses. I agree with Members of Parliament that we should set our CPF scheme to cater to basic needs, not frills. The Minimum Sum must be linked to anticipated consumption and life expectancy. So even at the new Minimum Sum of $60,000 cash component, the annuity payout per month to last for 18 years is $433. It is not a princely sum and we are not over-providing. But note, as some Members pointed out, that if consumption for medical expenses from the Medisave Account is reduced or if a member chooses to live in a smaller flat, even if he could afford to buy a bigger one, substantial spillover can result into the Special Account. The key column is to look at the Medisave Account and the Special Account. In other words, even with our rules changed, if he does not consume from the Medisave Account, the 25th percentile worker could still withdraw $11,000 at age 55, having put aside enough for his Medisave and Special Accounts. He would have enhanced his Special Account, so more can be withdrawn at age 55 if the Minimum Sum and the Medisave Minimum Sum are met. This is a sensible system which caters to the majority of Singaporeans with varying consumption patterns. There is rigidity for the base requirements but there is flexibility for those who choose to be prudent in housing and medical expenditure. I disagree with Mr Tan Soo Khoon that we encourage blatantly people to choose bigger houses. People did it because they knew that if there was some asset inflation they would reap benefits. And, in case we are being misunderstood, we have all said, "live within your means".”
“Mr Inderjit Singh also said not to make it compulsory. The implication in all these points is that perhaps we should give up some dreams, even home ownership for some Singaporeans. The Minister for National Development has eloquently defended the policy and I will add by saying we need not. The vast majority of Singaporeans can, and should, still hold on to their dreams and homes. I will ask the Clerk of Parliament to now distribute a table (Cols. 2981-2). Adequacy of CPF at 30% CPF Contribution Rate (2981 - 2982) This is a useful table as it gives a helicopter view of how our current CPF system provides for various needs. I have kept it simple and I want to focus on it. It gives a helicopter view of how our current CPF system helps meet various social needs. I would like us to pay attention also to the quantities in the various accounts, in other words, the Ordinary, Special and Medisave Accounts. In these two columns I have put the 25th and the 50th percentile worker to illustrate, but we should just focus on the 25th percentile worker. The 50th percentile is for Members' reference. As the table shows, for a 25th percentile worker with a starting pay of $1,100 and an ending pay of $1,000, we factored in a number of assumptions, including wage deflation plus some periods of disruptive unemployment - this is not continuous employment - that 25th percentile worker would have accrued $109,000 in his Ordinary Account, Medisave Account of $41,000 and a Special Account of $55,000. So as this table shows, even at the 25th percentile, the wage earner can own a 4-room flat if he chooses. I have put the price range for the 4-room flat in the footnote.”
“But I do want to emphasise the point made by Dr Ong, Dr Gan See Khem, Ms Irene Ng and Mr Arthur Fong that our overall wage structure needs to be more flexible, allowing individual companies to vary their wages according to business circumstances. Companies' wage structures should differentiate performance and reward individuals accordingly, and address the structural rigidities created by seniority-based systems. The Government has initiated a Tripartite Task Force on wage reform chaired by my Permanent Secretary to assist companies in implementing flexible wage structures. I will ask this Task Force to study the suggestions by Members - Mrs Yu-Foo, Mr Chew Heng Ching and Mr Ng Ser Miang - of using tax incentives to encourage companies to reform. The Task Force will be presenting its recommendations at the end of the year, and will consider other proposals which Mr Inderjit Singh brought up this afternoon on retrenchment cost. Let me now turn to adequacy for retirement and the Minimum Sum. These issues were raised by Mr Chew, Mrs Lim Hwee Hua, Mr Andy Gan and Mr Ahmad Magad. Having adjusted expectations to 30%, can we still meet the aspirations of Singaporeans? It is a key question. Can Singaporeans still own homes and take care of their medical and retirement expenses? Why not, as some Members suggested, give flexibility in how much we force Singaporeans to save? In other words, tailor savings according to income level. Dr Ong Seh Hong and Ms Irene Ng said we should calibrate savings based on pre-retirement income and income groups. Mr Chew Heng Ching said the increases are too fast and should instead be pegged to Consumer Price Index inflation. Dr Gan See Khem and Dr Jennifer Lee, though disagree, said it is not enough as costs are rising.”
“It will come under pressure the moment you fix it. And when you are compelled to lower it, the psychological effect is greater. Remember also that even when we had fixed it at 40%, it also caused uncertainty. While we were at 36%, investors and employers calculated decisions based on that higher target rate. Workers based aspirations and lifestyles also on that number, assuming it would be restored. What this exercise and what this debate have done very successfully is to reset, retune and refocus mindsets to the floor rate. We have shifted focus from the ceiling rate to the floor rate of 30%. So, now investors and employers know that there is potentially some refuge in reduction. We read over the weekend how Singaporeans now plan their homes and spending patterns on 30%. Very quickly, the message has sunk home. Anything above that is an added bonus. I reiterate that we will give as long a lead time as possible if future CPF rate changes are required. It is not envisaged that rates will be changed from year to year. There is a range but the CPF rate is a blunt tool. We agree. It will be reset when a systemic adjustment is required. It does not have the sensitivity to calibrate according to performances of different companies. Indeed, many Members of Parliament have called on companies doing well to pass on profits to workers in the form of bonuses or other variable components of wages, and help avoid retrenchments, mentioned by Mr Leong Horn Kee, Dr Ong Seh Hong, Mr Heng Chee How, Mr Nithiah Nandan, Mr Andy Gan, Dr Ong Chit Chung and Mr Ng Ser Miang. I endorse this sentiment, although I would not push for rigid formulas.”
“He suggested, among other solutions, that those above 85 years - you heard me right, 85 years - should not expect the national system to pay for their hip implants. He being 23, I assume he said, "Well, 62 years more, if I don't break my hip within that period, and if I break it after that, then I should pay for it." Older Germans, even those within his own party, threatened to "spank the youngster." The humorous response did not mask the resolve of the older generation to protect their perceived sacrosanct rights, despite this being an untenable situation. This road has led Germany to the `gloomy valley'. They are stuck! It explains why Chancellor Schroeder chose to wade into the political minefield of pension reform and proposed the biggest shake-up since the current system was set up in 1957. We should not under-estimate these changes. The CPF changes we are making now will ensure that this Singaporean generation and future generations will remain nimble, still able to respond quickly to fast changing circumstances. We would have averted the perilous situation where one generation's needs can only be met by another's unwilling sacrifice. We would have behaved responsibly by not expecting the next generation to shoulder our burdens by providing for our needs now. Let me now address specific queries from Members during this debate. Some Members have asked why not fix the rate at a lower level, instead of a range. I acknowledge that a variable rate creates uncertainty, as expressed by Dr Chong, Mr Iswaran, Ms Irene and Mr Tan Soo Khoon, and it disrupts long-term planning. We accept that. But global economic shifts have accelerated and impacted Singapore almost instantaneously. In this fluid environment, we need flexibility, even for the statutory component.”
“The aging generation has been promised much more than can be delivered without dramatically damaging the prospects of future generations. This will be a political battle, a new form of class warfare over scarce resources. Demographic decline is especially apparent in Europe [and I would add, Singapore]. In most countries fertility is far below replacement levels. Neither the state nor the private sector is in a position to meet the promises made to the aging generation. Tax and deficit levels are already high and would have to rise by huge amounts to fund pension promises. Tough political decisions will have to be taken to change expectations. Yet such measures are essential to avoid crippling taxes on the declining percentage of people in work. Ideally the state should be reducing tax burdens on young families and taxing pensions for the able-bodied. Whether the long-spoiled baby boomers are willing to concede that such measures are necessary is another matter. They have the votes to defeat any government that would introduce them." In other words, unrealistic expectations, longer life expectancies, medical advances, demographic trends have set up a perfect storm that threatens to disrupt the social fabric as one generation is pitted against another. Let me illustrate this with an anecdote which occurred in Germany. In August this year, a furore erupted when a young 23-year old German politician, Philipp Missfelder, head of the Conservative opposition youth outfit, criticised politicians from all parties for "betrayal", saying Germany's social system favoured the elderly at the expense of the younger generation.”
“This, in addition to industrial production ranging from complex instrumentation for meteorological and environmental sciences, to medical diagnostic equipment, to automated wood-harvesting machinery, to innovative icebreakers and luxurious cruise ships. In the late 1990s, Finland's economic growth rate was one of the highest of the industrialised countries. Will Ireland and Finland expect to prosper indefinitely? No one knows, and no guarantees exist for any state. All economies are subject to the vicissitudes of cycles and providence. Ireland and Finland face similar problems like Singapore, as a result of slowdown in global economic demand. As do many other countries. We are not alone. We need not be narcissistic. We can commiserate. Who will emerge to prosper depends on how each nation's people respond. Singaporeans' response to these CPF changes has renewed my confidence. Members of this House should not under-estimate the disasters that await us if we had chosen to stay on our previous course. Neither should they under-estimate the impact and the signals that these CPF changes have achieved. We should not downplay. It is not a simple exercise. These CPF changes herald a critical turning point for the better. Retirement adequacy will wreak economic and social havoc on those that will not, cannot or have not provided enough. Minister of State Cedric Foo commented on this, and I agree with him. I will elaborate. The International Herald Tribune on 22nd August this year carried this article under the sub-heading, "The looming clash of generations". I quote: "Four issues are coming together to create a "perfect storm": birth rates below replacement level, longer life spans, holes in private pension funds and massive government fiscal deficits.”
“In the 1990s, true to the aphorism that "fortune favours the well prepared", a technological discontinuity, which brought about plummeting costs in telecommunication services, was the chance element that helped start an economic boom in Ireland. My second example is Finland. Finland is another example of a tenacious people that refused to be beaten down. Tucked away in the northern-most corner of Europe, five million dedicated Finns continue to demonstrate the fierce nationalism that has enabled them to survive an unforgiving climate as well as a turbulent history. It is a land repeatedly fought over through the centuries. Finland underwent a transition from frozen isolation along the Arctic Circle into a centre of high technology, with a population both technologically literate and politically sophisticated. Twice in the 20th century, Finland had been written off as lost: first, in the "Winter War" in 1939 when the Finns were left alone to face invasion by a Russian army 50 times its size, and again at the end of World War II when Finland was given over to the Soviet sphere of influence. In the early 1990s, the Soviet empire fragmented and the Rouble collapsed. Finland's economy, which was closely tied to that of the Soviet Union, also shrank sharply and unemployment rose. Yet, it has managed to come out of its troubles. How? Government and industry made dramatic efforts to surge into the world's new information technology, supported by one of the most highly skilled labour forces in the world. Finland, today, is rightly called the telecommunications laboratory of the European Union, with an exceptional hi-tech infrastructure. Many of us know as we use their Nokia phones.”
“To demonstrate economic "self-sufficiency" as well as political independence, Ireland adopted inward-looking, protectionist policies - high tariffs, bans on majority foreign ownership in industry, the establishment of state-owned enterprises in areas such as power generation, shipping, banking and insurance. These policies were pursued well into the 1950s, with increasingly perverse results. The economy stagnated, emigration soared even further, as more than 400,000 people left Ireland between 1951 and 1961. In the mid-80s, the unemployment rate reached 17%, the government's finances were in shambles, and submission to a draconian International Monetary Fund (IMF) programme was considered as a means of getting the economy back on track. But something happened. At the end of the year 2000, Ireland could look back on 14 years of uninterrupted economic growth, which had accelerated to nearly 10% annually. With this growth came markedly lower inflation, one of the lowest unemployment rates in the European Union, and a growing government-budget surplus. Most dramatic, however, was the return to Ireland, a country which had seen emigration over 100 years, of young workers in increasing numbers to fill new jobs awaiting them at home. How did they reverse their terrible plight? It was not just due to the luck of the Irish. In the 1960s that tenacious Irish spirit rallied. The government and people decided to adopt low corporate tax rates to encourage foreign investments. At a time when they could least afford, they spent more on educating their people better and establish high-tech industries, especially in info-technology and telecommunications. Ireland joined the European Union.”
“Countries that are open to the flow of ideas - and whose laws, customs and institutions encourage wealth creation - can catch up with the old-established "industrial" economies. Japan, Korea and recently China are outstanding examples of this catch-up. In other words, while all countries will walk through hills and valleys, some walk right into ravines or get mired in swamps. Others stay still and get hemmed in and suffocated by the overgrowth. Those that erect barriers, both physical and mental, will be overtaken. Only those who choose to engage progress wholeheartedly, expand their minds and economic space, survive and thrive. What about the million dollar question that many MPs have asked? Even if Singapore is willing to change, will these changes be enough? Who does fortune favour? While history teaches us that nations that do not change are often overtaken, it also shows us that "fortune favours the well prepared." Tenacity, diligence, boldness and a cohesive spirit have helped nations, in more dire circumstances than Singapore is today, pull themselves out of the rut. I will give two examples and use city-states for comparability. Take Ireland as the first example. In 1840, the Irish population was nine million but, a decade later, it was halved: over a million died of starvation; most emigrated; a quarter of those who boarded the ill-fated coffin ships to America died in transit. After emerging as the Irish Free State, it promptly plunged into a civil war that lasted until 1923. At that time, the population included fewer than three million people and was still dwindling. In other words, they lost six million people in 80 years.”
“So for the last 500 years, China lumbered along, living on past glory. But the dragon has stirred and all in its wake felt the pounding of its steps when it threw open its doors and chose to engage the modern world. Japan's income rose from 20% of the United States' in 1950 to 75% by 1998. It is a rise unparalleled in recorded history. This phoenix rose miraculously from its atomic ashes and dazzled the world with its manufacturing prowess. But in the last two decades, when faced with much lesser challenges, it lacked that same resolve to pull itself out of its quagmire. From 750 to 1100 AD, Islamic science and technology far surpassed that of Europe. In their golden years, the world's greatest scientists wrote in Arabic. Indeed during that period, many Muslims taught science to Europeans, especially at the frontiers like Spain where intermixing occurred. Then something went wrong. Religious zealots denounced Islamic science as heresy. These nations regressed as they chose a parochial emphasis on religious conformity. Any group or nation - no matter how mighty - that discards knowledge, prefers form over substance, sacrifices future needs for present comforts, resists change, erects barriers to progress, is doomed to fail. Ultimately, these barriers are self-destructive. Economic historians, such as Stephen Parente and Edward Prescott in their book "Barriers to Riches" tell us that the differences in living standards have little to do with natural resources - or levels of investment. Rather, they see the differences in the intensity that various countries make of the world's existing stock of know-how.”
“As Mrs Fang Ai Lian said, the key significance is that we can execute. Even if some other calamity befalls us tomorrow and sets these efforts back, this nation will bounce back and do more, if that is what is needed to improve our lot in life. Many Members have asked for a clear economic plan. The Prime Minister will elaborate on this tomorrow. But as many Members also know, where it comes to matters of business, as it does affairs of the heart, it is not so simple. It is not so completely deterministic. There is no magic formula. But we can learn from others. There are some general ingredients for success. History is replete with examples of countries that were content to lie in the present, resisting change and landed on the slippery slope because they chose not to confront their problems and new realities head-on. On this, I agree with Mr Inderjit Singh that we have to tackle our problems head-on. China has a particularly venerable history. It boasted inventions such as printing and paper in the ninth century, gunpowder in the 11th century, the compass, porcelain. The Chinese invented machines to spin hemp in the 12th century, some 500 years before the Industrial Revolution began in England. China had the knowledge capital and advantage over many countries. With its inventions, it could have been the first to print books for the masses to accelerate learning. It could have experienced its own industrial revolution. With gunpowder, it could have revolutionised the science of propulsion for industry or military gains. It could have but then China - the self-absorbed Celestial empire - closed its minds to progress and its own strengths and opportunities and became insular. From the 15th century, other nations pulled ahead.”
“A deflationary cycle will follow. Other similar pessimists say that it is too little - it would not make a difference. We are so uncompetitive that whatever we do, companies will continue to pull out or bypass Singapore. The avalanche of cheaper manpower has overtaken us. Singaporeans need not be despondent or insecure or believe these futilitarians. Mr Tan Soo Khoon quoted some reports about these measures. I did not read the reports but it occurred to me, while he was speaking, that they are conjectured that this was a convoluted way for the Government to make money. They give us more credit than what it is due. He said, and he can correct me if I misheard him, that the CPF cuts would save Government and GLCs $500 million, that the GST would give Government $400 million. I am not sure why, if you are the major employer, you save $500 million; when the GST increases, you also make money. Perhaps someone else can explain the mathematics to me. On top of that, Government now gives a $1 billion package to help citizens and end up with a budget deficit. If indeed this is a convoluted way of Government making money, then Government has immense capacity, more than what people think. I agree that the future is uncertain and success is never guaranteed. But that is quite different from saying that we are beaten as a nation, and we had best just lie back and play the vanquished. Singaporeans must have greater mettle and be fully confident. To me, accepting these CPF changes is a decisive response that shows the resolve to do what is needed; to be nimble and to adjust, as Dr Tan Cheng Bock said. It signals a nation on the move, willing to make sacrifices to survive. It is not only about what needs to be done, but that we can do it at all.”
“In crafting these new policies, many civil servants who helped formulate these changes not only used common sense, but more importantly, compassion. They were mindful of the pervasive and painful effects that would result. Varied scenarios and computations were examined. Staff pored through reams of printed data and tables. They tried their best to minimise the pain and recommended spacing out or phasing in changes while still achieving our political, economic and social objectives. Ms Indranee Rajah will be pleased to know that common sense indeed was used in plentiful dollops. The reactions from Members and Singaporeans have reassured me that they have succeeded in some measure. But, as many Members in this House who rose to speak on these CPF changes have realised and expressed, larger and more fundamental issues underlie these CPF changes. For while the reasons for and pace of CPF changes have been accepted by the majority, this moment at the crossroads has occasioned all Singaporeans to wonder about our future, our needs and our fates. There is even fear among some Singaporeans. They are asking if these changes signal an end to the Singaporean dream; a relegation from our first world status; an end to some aspirations and hopes. I would like to address these concerns as well as specific queries from Members of Parliament. To me, there is the greater significance of character and nation-building in this exercise. Our responses to these changes should be seen in this context as it signals a people's - a nation's - resolve, to want to chart and better their destiny. There are some who believe these measures would not work. They say cutting CPF will dampen the recovery as consumer expenditure falls and the property market softens due to reduced purchasing power.”