Ong Kian Min
Singapore
“Sir, on the first case, as I said, my resident approached me at the MPS. I wrote to the Traffic Police to appeal for him. I am sure the Traffic Police would look into that appeal and reply to that resident accordingly. The two other cases were not based on hearsay upon hearsay because those were personal encounters by these two friends.”
“My point in raising this is: among the motoring community there is this fear, whether it is real or perceived, that they should not seek medical treatment immediately in case the Police were to issue them with a summons for careless driving.”
“Unless the motorcyclist is so seriously injured that he has no alternative but to be taken to the hospital by ambulance, he would steer clear of the hospital so as to avoid the fate of being reported against and penalised.”
“They are counted as having taken two HDB loans. They are deemed to have had their two bites of the cherry, but is the quantitative number of bites or loans a fair measure of the amount of subsidy enjoyed?”
“Still on the matter of languages, I am of the view that schools should promote more actively the learning of Malay or Bahasa Indonesia by non-Malays, the reason being that Indonesia and Malaysia are our immediate neighbours.”
“And are there more efficient ways of apprehending errant litterbugs? NEA raised the composition fine for first-time minor littering offenders from $200 to $300 last year. I would like to ask: can and do the foreign workers that have been caught littering pay up this fine?”
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“Perhaps, it is just that the grass on the other side of the fence is greener, or perhaps there is not enough information and publicity, giving Singaporeans ideas on how to have fun and enjoy life, or perhaps we are just plain lazy and just want to crash out and do nothing. We should wipe out our dowdy image of a nation and a people obsessed with only economic success. The goal should be for every Singaporean to work hard, work smart, play hard and have fun. As the Nobel Prize winner in Literature in 1911, Mr Maurice Maeterlinck said, "Tell me how a people uses its leisure and I will tell you the quality of its civilisation." Self-reliant society Next, on self-reliant society. As we continue to develop into a modern vibrant society, we should move away from relying on the authorities to handle everything. One example can be found in our neighbourhood environment. As our HDB residents live in close proximity to each other, there will inevitably be minor disputes between neighbours over such day-to-day matters as dripping mops, curry being thrown out of the window, noise irritation and things cluttering up the common corridors. Such cases are on the rise and residents look to the relevant authority, the town council or HDB, for redress and enforcement of regulations. This situation is far from satisfactory. Instead of having to seek the intervention of the town council or HDB every time a dispute arises, we should allow more autonomy and self-determination at the local level. In order to foster a sense of belonging to the community and to encourage autonomy, the residents should be given some authority to make rules on local issues by majority decision, such as whether to censure the particular resident for behaving unreasonably.”
“Fortunately, the vibrancy of our city is not judged by this alone. But a common complaint by Singaporeans is that there is little to do in terms of leisure in Singapore. One Friday morning, I was listening to FM98.7 in the car while sending my children to school. Daniel Ong, the DJ, asked one male listener, "What are you going to do this weekend?" The listener replied, "Catch a movie." Daniel Ong then remarked, "How come every time I ask my listeners what they are going to do, they say catch a movie? Is there anything else to do?" After a pause, the listener replied sheepishly, "No. There isn't anything else to do." Daniel Ong replied, "Ya, there isn't anything else better to do in Singapore." Sir, is Singapore as bland as some make it out to be? This cannot be true. One only has to visit East Coast Parkway during the weekends. There, cyclists, young and old, are breezing up and down the cycling pathways which are full of roller-bladers whizzing past, watched in fascination by families who have set up tents of all sizes and all degrees of sophistication. A quick informal survey has revealed activities as diverse as radio-controlled model aeroplane flying, fishing, sailing, football and tae-kwondo. What about leisure activities for those who prefer to stay indoors? Besides our state-of-the-art movie theatres for movie-goers, there are people who indulge in all kinds of sports, cooking, bowling, dancing, karaoke, folk art, pottery, just to name a few. At the Esplanade, we may be treated to art exhibitions, concerts, dance performances and theatrical events. How come there are still Singaporeans who have nothing else better to do during the weekends, than to catch a movie? And, who laments that there is much to do in other countries?”
“First, the officer was poor in his product knowledge and, second, he was high-handed in confiscating the Hi-Chew without informing her. You can imagine what she will say the next time someone brings up the subject of our chewing gum ban. In the meantime, I am working on her. How can we motivate our people to believe wholeheartedly and passionately in what we stand for? Singaporeans are law-abiding in nature and will obey new policies that are set. However, convincing them of the reasons behind each policy is a challenge that each Government department must be mindful of. It will require education, careful listening and addressing of feedback via multiple channels, much patience and relentless perseverance, and sensitive enforcement to convince them that the policies are not without meaning nor purpose. Vibrant society - Danger of being regarded as a mediocre city Last week, I flew to Beijing and back. On arrival at Beijing Airport, I was one of the first few coming off the plane and saw a row of five Chinese girls waiting to receive their foreign guests. This is the airport's visitor receiving service; nothing special. They were elegantly dressed, in dark green cheongsam with gold embroidery, with their hair tied back. Each of them held a small placard with the name of the visitor being received neatly printed on the placard. A Caucasian man in front of me indicated he was one of those being received. The girl stepped forward and in polished English said, "Welcome to Beijing, Mr Hopkins." On my return to Singapore, when I arrived at Changi Airport, I would not say anything more. You should take a look for yourself. Her business jacket was a size or two too big and the visitor's name was scribbled with a marker pen on the whiteboard placard.”
“He or she will abstain from consuming any alcohol and has to stay sober the whole night in order to drive his friends home safely. In some places in Australia, I am told that, when stopped at police road blocks, suspected drink drivers who are just below the legal limit, are made to sit by the roadside under a banner that reads "Drinking and Driving? You must be an idiot!" for half an hour until they sober up. Other passing motorists can then see who these "idiots" are. But if you criticise any of these policies in the presence of the average Scandinavian, Australian or New Zealander, he or she will define it to the bone and explain why such policy is necessary. This stems from their firm belief that the stance taken by their society is for the good of their society. Or, they may just be defending their country against the criticism of a foreigner. What do we Singaporeans say when we are called upon to defend our policies? Take the world-renowned Singaporean ban on chewing gum. Many Singaporeans, when asked by foreigners about this policy, cringe in embarrassment. Do they see these policies as being imposed by the Government or do they see them as being for the common good? Ask my daughter about her experience. Recently, we came back by coach from a church camp in Malaysia. On the way back, she bought some confectioneries and these were in a thin transparent pink-coloured plastic bag. When this bag of her goodies went through our Customs or security checks at Tuas, the officer noticed the contents of the bag and unilaterally, without notifying her confiscated two tubes of Hi-Chew. Now, if you do not know, let me tell you that Hi-Chew is not chewing gum. It is actually a chewy pastille that dissolves totally in your mouth. My daughter was totally upset.”
“I support the Budget Statement of the Government. It is a budget of prudent spending that nevertheless offers us a bold vision of reinforcing Singapore's position as a vibrant hub for businesses and talents to come and seek their opportunities. I would like to touch on three groups of issues - the first is about the making of a vibrant hub, the second about prudent spending, and the third about some points of details in the Budget Statement. On a recent business visit to Boston, I was sitting at a sidewalk cafe in the business district and decided to do a quick and rough survey of the people who walked past. On average, out of 10, I counted three whites, two blacks, three Asians (Chinese, Japanese or Korean, I could not tell), one Hispanic and one Indian. We are still some way to go before having that kind of mix that is prevalent in other major cosmopolitan cities of the world. But as we open our doors to welcome talents of all races and as our people spread their wings to spend more time in foreign lands, we all believe we have to have a strong society. Building a strong society Sir, in making a strong society, Singaporeans must take pride in Singapore and what we stand for, that is, our national policies. Travellers to Australia and New Zealand will tell you that these two countries are very particular in controlling the importation of foodstuff and organic matter. Golfers will know that, on arrival, their golf shoes must be clean without traces of organic matter, plant or soil matter. And, the authorities can be very pedantic about this. Scandinavia has very low limits and stiff penalties for drink driving. When the Scandinavians go out for dinner, one will be rostered to be the driver for the night.”
“The Agency can fulfil its role in developing this section of the workforce by roping in or helping to set up more such local private associations that represent the various trades who can then establish and maintain the standards, have a strong code of ethics governing its members, provide training courses, recognised skills accreditation, skills upgrading and continuing education of its members and resolve disputes and complaints concerning its members. This will help promote the "cottage industries" of the new economy. Once these associations are properly established, it would be easier for those who wish to acquire new skills and enter a fresh trade whether to tide over a period of unemployment or on a more permanent basis. Sir, I support the Bill. EXEMPTED BUSINESS (Motion) Resolved, That the proceedings on the business set down on the Order Paper for today be exempted at this day's sitting from the provisions of Standing Order No. 1. - [Dr Lee Boon Yang]. SINGAPORE WORKFORCE DEVELOPMENT AGENCY BILL Debate resumed.”
“But, if you want to engage a plumber, tailor, tuition teacher, computer repairman, swimming instructor or local domestic help, how do you assess and find out what skills that person has and how good are his skills and the quality of his work other than through word-of-mouth recommendation or by trial and error? The consumer is, hence, wary about engaging freelancers and, in turn, this consumer distrust limits the potential and opportunities available to the freelancers. To grow these trades and help these individuals who have these skills to find an income, I believe we have to reduce the present obstacles of the absence of consistent quality and standards, and the lack of avenues for resolution of disputes. For example, if you are skilled in IT and retrenched, how do you publicise your services to provide freelance IT consultancy? As a consumer, if you need a PC doctor to fix a bug in your home computer, how sure are you of his skills? Would you have more confidence if he proudly wears a badge that tells you that he meets with certain standards established by a reputable organisation and governed by its code of ethics? What if the repairman is backed by an organisation that can provide assurance of a certain quality to its consumers? Sir, in other developed countries like the United States, there is a multitude of such organisations and associations, and their members proudly display their badge of identification. We have imported some of these foreign organisations with their established standards into our community.”
“It is the task of the Agency to devise relevant programmes, through careful studies and close consultation with the industries, to cater to this group by equipping them with the tools to rise from the doldrums of unemployment to better opportunities in the workplace through retraining and reskilling. The WDA must also not forget that, for their programmes to truly benefit this group, they should aim unwaveringly to provide easily accessible and understood information, better incentives and funding for this group of low-skilled older workers. Sir, I would now like to focus on another group of workers who can be helped if we have clearer standards for the various trades and businesses. In the new economy, companies have to be nimble, must retain the flexibility to downsize, right-size, or up-size, to meet the changing demands of the economy. This will result in more and more dislocation among workers and more and more people becoming self-employed, contracting to provide specific services and engaging in freelance non-full time independent jobs, either for a temporary part of their working life or their whole working life. In our daily lives, we come across various people who provide different services from white-collar ones who provide business consultancy, financial planning advisory services, even private tuition, to blue-collar services like plumbing and gardening. For the professional services, I think the consumer would take time and exercise care to gauge, find out and agree on the quality of service that he wants.”
“But, on the other hand, SPRING is only a couple of years old and before SPRING has the chance to spring, or be sprung, we are now taking away from it three of the more important human capital development and productivity initiatives. Why are some initiatives being moved across to WDA and some being retained in SPRING? I think we should use the opportunity offered by this Bill to set this straight. Otherwise, we will have to do a reshuffle again in a couple of years' time. Having said that, I am wholeheartedly supportive of this Bill. Due to the recent increase in the number of retrenchments, there is now more of an immediate need to reskill the unemployed and the retrenched. One group that would benefit greatly from retraining would be the low-skilled, less educated in their 30s and 40s who have a potential of at least another 20 working years or so. These are the people who have dependants, possibly at all three levels - parents, spouse and children - to support and, to top it off, various loan obligations to meet. For many, the economy has evolved bewilderingly in such a way that, contrary to their earlier expectations, their skills are no longer relevant in a marketplace which prizes higher skilled workers. However, this is the very group of people who are the least likely to undertake continuing education due to inadequate knowledge of programmes available and lack of funds. The WDA must find ways to reach out to them and convince them of the benefits of training and reskilling at this difficult and frustrating time in their life.”
“Sir, I rise to speak in support of the Singapore Workforce Development Agency Bill. Currently, there is an extensive range of workforce development programmes and initiatives being managed by the Ministry of Manpower and the Standards, Productivity and Innovation Board (SPRING). The new Workforce Development Agency's objective is to bring most of these programmes under one roof and provide better coordination of these programmes in addition to developing new ones. I would like to raise some concerns about the reassignment of the existing initiatives and programmes. At present, SPRING runs a total of eight workforce development initiatives. Three of these, namely, the Skills Development Fund, CREST (Critical Enabling Skills Training) and National Skills Recognition System, will be transferred to the new WDA. I would like to know what would happen to the others, like Work Redesign, People Developer, Industry Capability Upgrading and On-the-Job Training. Of particular concern in the area of workforce development are the People Developer programme and On-the-Job Training programme. The People Developer programme offers a quality standard on Human Resource Development, which is one of the stated functions of WDA, and On-the-Job Training programme is an initiative for employer-based training to equip employees with skills to meet the challenges of the new economy. Will SPRING continue to run them, perhaps in collaboration with WDA, or will these programmes cease to be offered altogether? I would like to ask why these two programmes should not be also transferred to WDA.”
“From my experience, when my children brought cheques to their teachers to pay for their modules, the teachers had thought that they or their parents were mistaken, because cash payment was not necessary as the fees could be deducted from Edusave. The payment handling and administration system in the school may not be geared up to handle cash or cheque, as I am sure children without Edusave are far and few between.”
“Much has already been said in the media and Forum pages on this issue. Perhaps it is opportune to review this. Every Singaporean counts. With only 40,000 live births last year, every child is important. Once a child is born, we should do our utmost especially in his or her education so that he or she can grow up to contribute meaningfully to society. If we want to disincentivise those who cannot afford from having more, I believe we should do this in other ways and not to deprive the children of funds for enrichment. If we want to use monetary disincentives, there are many other ways we can do so, such as not giving dental subsidy or student concession for public transport. So, why Edusave, where the money will be used for the direct benefit of the child by helping him to attend educational and enrichment courses? If the Minister's answer to the above is still "no", and the policy remains, may I suggest that it is administratively easier for the school if every student has an Edusave account. For those students who are not entitled to the Government Edusave contribution, the parents should be allowed to voluntarily top up this account. As an added incentive to have more children, I would like to suggest that any contribution made into this account by the parents should qualify for double tax relief. After all, one gets double tax relief for the maid levy and, surely, Edusave is more important. The Edusave account is then treated like a bank account from which the school can deduct money to pay for the enrichment modules. Therefore, at the class level, every student is treated the same way, which makes it administratively easier. Otherwise, there will be some students making payments by cash or cheque.”
“All non-standard items or space are to be paid for in full by the schools concerned. 11.30 am In these difficult economic times, to raise $3-$4 million takes tremendous efforts and resources, usually led by the principal and teachers and involving their students and their families. The teaching staff has to devote a disproportionate amount of staff and student resources, energy and time in these fund-raising efforts. While there are other sources of funding from the Government, such as cluster fund and innovation fund, these are limited and subject to other rationalisation. If sufficient funds are not raised by the schools, progress payments cannot be met and the contractors may stop work. If the upgrading programme is held up and moving to the upgraded school is delayed, the students' benefit and enjoyment of the new facilities will also be postponed. With the deadline to move out of the holding school coming up, there will be an increasing sense of urgency. I would be grateful if the Ministry could, firstly, review, update and exercise some flexibility in administering the standard specifications which were first drawn up some years ago; secondly, provide more funds for schools under the PRIME programme; and, thirdly, help to finance the funding shortfall and allow the schools some leeway to tide over this difficult period. Sir, I would like to move on to my cut on Edusave. I have five school-going children and would like to ask that the Edusave scheme be extended to cover not just the first three children. I understand that the original reason for restricting Edusave to the first three children is to discourage those who cannot afford from having more children and that parents should not rely on the State to pay for the expenses of bringing up their children.”
“Sir, I recognise the need for schools to be upgraded. Many of our schools, designed and built in the previous era, cannot support the present demands. It is the amount of funds that schools have to raise that worries me. Among my own small circle of family and friends, I know of not less than four schools that are actively raising at least $3 million each through similar activities such as fun fairs, concerts and gala dinners. MOE pays for 95% of the infrastructure upgrading cost. If principals of PRIME schools were to adhere strictly to the set of standard specifications, they need to fork out only the balance 5%. But that alone could work out to be $800,000, based on the usual upgrading cost of $15 million. However, nowadays, there are more and more young and dynamic principals at the helm of schools. They have, and we should motivate and empower them to have, greater expectations of how an enriched learning environment can impact the holistic education of our children. They require more than these standard features and specifications to creatively nurture and develop the students under their charge. For example, the notion that learning is not static gives rise to a desire to have desks and chairs of various sizes and shapes placed in different configurations for different activities. The traditional classrooms, with just a teacher's desk, with rows of tables and chairs and a whiteboard, are not tenable any more. There should be storage cupboards, shelves, notice boards and other "props" in the classroom. These are deemed as extras and are not within standard specifications laid down by MOE. When we look further at computer or science laboratories, the standard items laid down a few years ago are not even required or useful any more.”
“Many other families needing such help will emerge from time to time as the product of the circumstances at the material time. I would like to ask the Minister whether HDB will be helping to provide a roof over their heads.”
“Madam, although the local residential market has declined over the last few years, rental of premises from private owners is still out of reach for many low income families. The going rate for a single room in a HDB flat is about $300 per month. Families who have low income can hardly afford to pay this kind of rent and have enough to sustain the household expenses of a normal family. Such families naturally look to HDB and its current stock of heavily subsidised rental flats. To qualify, at least two eligible tenants must come together, their income must not exceed $800 per month and they must not have owned a HDB flat in the last 2 1/2 years. However, there are many families out there who fall between the cracks, that is, they cannot afford to buy and own a flat for various reasons and yet do not qualify for a HDB rental flat. Families that fall within this category requiring rental premises are those who have to sell their flats, especially in divorce cases and financial hardship cases, those who cannot afford to pay the 20% cash lump sum downpayment to purchase a flat, those who do not qualify for housing loan from HDB or commercial banks, and those who have lost their income and need some temporary help to adjust and sort out their financial commitments. At the same time, I understand that HDB plans to scale down or totally withdraw from providing subsidised rental flats. HDB has just renovated the interior of most of its present stock of rental flats, upgraded them and will be offering to sell them to sitting tenants. This is a one-off exercise that will benefit the existing tenants and help them to own their flats. But these existing tenants are not, and will not, be the only ones needing affordable rental flats.”
“Sir, I notice that nowadays fewer cruise ships call at the Singapore Cruise Centre at the World Trade Centre. I was also told that Star Cruise, which used to call twice weekly at the Singapore Cruise Centre, has now reduced the number of calls and is now using Changi Ferry Terminal, which is operated by a Malaysian company, to bring passengers to board its cruise ships anchored at Tanjung Langsat in Malaysian waters. It seems that by doing this, it is much cheaper for the cruise operator than berthing its ships at the Singapore Cruise Centre. Have we priced ourselves out of this market? Is this a case where a Government-controlled entity mistakenly thought it had a captive market and could impose whatever fees and charges, and customers who want to use the Singapore port had no other choice? This loss of the cruise business has severe implications for other tourism-related industries. I would like to ask the Minister whether there are any plans to regain this market.”
“I would like to ask the Minister to consider setting aside for the use of cyclists during weekends the left lane of three-lane roads in certain suitable areas and making some efforts to educate motorists to look out for and have due regard for these cyclists. I believe this will be a good start and, over time, the attitude and behaviour of vehicle drivers towards cyclists will change for the better to make our roads safer.”
“Sir, I would like to move on to a free do-it-yourself mode of transport, ie, cycling. Often times, we have heard that the unkind Singapore weather is not conducive to cycling and that seems to be the reason for not promoting cycling as a more popular means of transport. But I believe that the habitants of any place on earth have to learn to cope with their environment. In discussing for more to be done for cyclists, we seem to have a mental picture of quiet country roads, where the sun is shining but the temperature is a cool comfortable 15 degrees Celsius and the humidity is low. We seem to believe that cycling can only be done in such an ideal environment. But the reality is that even in a cycling country like Holland, the sun does not always shine every day. Cyclists have to learn to face the rain, the cold and even the snow, but many people there still cycle as a means of transport. They face different, but equally unpleasant, problems with the elements. I think we just have to adapt and learn to cope with the weather. We should take a deeper look at how we can make it easier for those who may want to cycle, if our drivers are less harsh on cyclists and our roads safer. 12.15 pm Apart from cycling to and from work, we should also consider the needs of the recreational cyclists. Nowadays, I see more and more serious cyclists, donning their brightly coloured racing suits and riding their expensive bicycles on weekends in areas such as Holland Road and Bukit Timah. At present, I see many of them are expatriates. Nevertheless, this is a happy sight and we should encourage more people to participate in this healthy affordable sport.”
“I wonder how competition can be introduced at this late stage where there is already a dominant market leader which has the clout to set pricing and market trends. The situation is aggravated by the merger of Comfort and TIBS taxis. The smaller existing companies and any new entrant would not be able to compete and would find that there is not much point taking on the big boy head-on. They would simply follow what the market leader does. Like former Finance Minister, Dr Richard Hu, explained before in relation to pump prices, domestic petrol pump prices are set by Shell which has the largest network of petrol stations and the others simply follow.”
“If we adopt this solution, I believe the situation for those wanting to hail a taxi from the roadside, or taxi stand, will only worsen in time. The QoS or quality of service does not help to alleviate the situation. The five qualities of services require that phone booking service levels be met, otherwise a penalty of up to $100,000 per contravention will be imposed on the taxi operator. Now, we know that demand for taxis is high during peak hours. For fear of not meeting this QoS, taxi companies, especially the smaller ones, will naturally want to take their taxis off the streets and keep them on standby to make sure that they can attend to phone bookings. If not, if their taxis are all committed picking up passengers from the roadside, and they are not able to attend to the calls, they will be fined. CityCab is offering the lowest booking fee now to attract more calls. But if their phone booking becomes more popular and they are swamped with calls, how long can they manage with a small fleet and not run foul of the QoS? So, I think the writing is clearly on the wall - better pay the higher price if you want to get a taxi, otherwise take the bus or MRT. Those unwilling or ignorant, especially the tourists, will continue to complain and have a bad impression of our taxi service. Sir, may I move to my cut regarding competition in the taxi industry.”
“If less, he takes home nothing and may even have to come out from his pocket. If increases in fees and charges cause taxi companies to pass them on to the taxi driver by way of a higher daily rental for the taxi, the taxi driver will stand the risk of a bigger loss if business is unusually bad. I think it is not healthy to subject individual taxi drivers to greater financial risk and liability, and hope that any increase would be charged to the taxi companies directly instead of being passed on to the taxi drivers or the commuters. Although we have the highest number of taxis per capita, yet during peak hours and rainy days, there is not enough to meet demand. There are perennial public complaints about the non-availability of taxis during such times. However, during non-peak hours, there are taxis aplenty cruising our streets or waiting for commuters at taxi stands. Therefore, any increase in the already high population of taxis will affect the income of taxi drivers adversely. The solution to this problem, as advocated by the LTA, seems to be variable pricing to meet demand, and by that, it appears that the LTA is subtly referring to (although not openly pushing for) the phone booking fee. So, if you are prepared to pay more by calling for a taxi, according to the stipulated quality of service, you will most probably get your call answered within 30 seconds, confirmation for the booking within 5 minutes and a taxi at your doorstep within 10 minutes. That is for those prepared to pay the extra, that is, the pricing difference. For others, it means a long wait along the roadside, or in a queue at a taxi stand. If this is the preferred solution, then I think we should publicise it and tell commuters not to waste time waiting by the roadside or taxi stand.”
“Sir, my cut relates to taxi fares and the pricing mechanism. Recently, during the debate on the Road Traffic Act amendment, we heard from the Minister for Transport that we had the highest number of taxis per capita among major cities of the world. That taxi should be considered as a premium door-to-door service but our fares are relatively low that it makes sense for two or three persons to take a taxi, instead of the bus or MRT. Soon after that, on 13th February 2003, there was a major article in the Straits Times agreeing that our taxi fares were too low. Now, is there a hint that taxi fares are likely to increase in the near future? But what will cause fares to increase? The Government no longer sets taxi fares. Under the present circumstances, judging by the popularity of taxis, commuters are generally happy with the current fare structure, taxi drivers are still making a decent income although some are grumbling that income has declined. There are many drivers queuing up to drive taxis and taxi companies are raking in huge profits. It seems that the only unhappy party may be the Government, as it means that taxi service is not priced properly leading to a loss of potential revenue for the Government. I wonder whether that is good enough reason for an increase in fares. Although the Government does not set fares any more, it can still cause taxi companies to increase fares by increasing their cost of operations. The new licence fee of $25 per taxi per month imposed recently is a small component. If it wants to, there are many other areas where the Government can levy charges and fees, such as COE, diesel charge, etc. At present, taxi drivers are charged about $60 per day to rent the taxi. If the driver takes in more than that, it is his income.”
“Okay. I will take that tomorrow. The Chairman: Order. It is 6.30 pm. Thereupon, Madam Deputy Speaker left the Chair of the Committee and took the Chair of the House.”
“If someone sees the long queues at taxi stands, and the dissatisfied commuters waiting along the roadsides, and thinks there is a commuter demand, why can he not be allowed to set up a taxi operation just catering to this demand, without having to set up a call centre to manage phone booking? The official answer seems to be that to allow someone to come in without such requirements will be unfair to the incumbent who has invested in all this expensive equipment. But why must all newcomers be locked in to a less than ideal business model? The rules should be more flexible. The phone booking qualities of service should only apply to the taxi operator who offers phone booking service as part of its overall business strategy. The rules should be flexible enough to provide the taxi operator with the option of deciding whether to provide such a facility for its customers. If an operator believes that he can provide the essential taxi service to meet the demands of our commuters, notwithstanding not having phone booking, why not let the commuters decide? Essentially, competition is about letting the market decide. Madam, may I move on to my next cut relating to taxi fares and pricing mechanism?”
“Madam, I have three cuts on taxi service. Since I do not think I have time to cover all three, I shall just cover the first one. My first cut relates to the quality of our taxi services. Recently, under the new taxi licensing framework, the Land Transport Authority introduced the quality of service (or QOS) standards for taxis. The first five of a total of eight service qualities touch on phone booking. I am puzzled as to why phone booking is so crucial that all taxi companies must have this facility. Is this so basic a service that a taxi operator cannot offer a good taxi service without it? Using an analogy from the airline industry, it is tantamount to requiring all new players wanting to set up a new airline to offer in-flight services of the same quality as Singapore Airlines with video-on-demand on all classes, wonderful meal choices, on-line ticket reservation and all. In the US, some airlines have recently introduced low cost services catering to budget conscious travellers, where one has to pay for meals on board, refreshments and the audio headset. At the same time, there may be other airlines that want to offer premium service to distinguish themselves and cater to a different segment of the market. So, why should we not allow someone to set up a no-frills taxi service without having to invest in costly call centre and despatch facilities to manage telephone booking? After all, a key objective of the licensing framework must be to meet the needs of the commuting public. Competition is supposed to bring about more choices and cut cost.”
“The PTC's rules on door width and platform height make it very capital expensive for bus companies, other than SBS Transit and TIBS, to offer feeder bus services. Now with the merger of Comfort bus and SBS Transit, in the medium term, I do not think there is any other bus company in Singapore that is able or prepared to offer comprehensive commuter feeder bus services for a housing estate. Other rules, like not allowing pick-up of passengers from public bus stops, serve to protect the incumbent public bus operator. This being the case, if the incumbent operator is not willing to improve its services for a particular area, the alternative would be to consider niche services dedicated to meet a particular need of residents to travel from one area to another not directly or adequately served by the existing services. For example, instead of taking public buses and having to change buses, residents in a certain precinct may need and be willing to pay for a direct service to a particular wet market. Operators and the supporting grassroots organisations will have to be creative to come up with various service schemes to meet residents' demand. And I hope the Ministry of Transport and the PTC will be understanding and allow such niche solutions to be implemented.”
“Madam, I have three points regarding the public bus system. First, the Public Transport Council (PTC), in releasing its Bus Service Audit in September 2002, acknowledged that there were bus services with problems of overloading and long headways. The PTC said that this was unsatisfactory and reflected the general dissatisfaction of commuters in these performance aspects and recognised the need to reduce overcrowding and long waiting times on some services. If I may quote from the report: "We recognise that some existing standards are based on figures averaged over the survey period, which may not accurately reflect the performance of bus services from the passengers' viewpoint. Some standards also tend to be over prescriptive. For this reason, the PTC is currently reviewing the standards with a view to ensuring that service standards are relevant and closely reflect the public's expectation for service quality and affordability." That report and its acknowledgement of the shortcomings are an encouraging start. May I ask the Minister, since the publication of the report, what progress has been made in reviewing the standards? My second point relates to a report in the Straits Times of 28th February 2003 that LTA had decided to drop a $40.3 million plan to provide commuters with bus arrival times via information panels at bus stops and interchanges and over the Internet, just months before the project was to have been completed. I would like to ask the Minister why the project was aborted at such a late stage and how much had been spent on the project before it was aborted? Why was the feasibility study on the software and integration not conducted fully before embarking on such a high cost project? My third point relates to feeder bus services.”
“I would like to seek a clarification from the Minister. My question is: are there sufficient taxis on our roads today? Based on the comparative figures per 100,000 population, mentioned by the Minister, it seems that there are sufficient taxis, but yet we all agree that during peak periods and rainy days, there is a mismatch. So, how would the price mechanism help? If you impose a surcharge, let us say, for the CBD or any particular area, would it not just shift supply from one area and transfer it to another area? Could it be that demand actually outstrips supply only during peak hours, and that during other hours, there is actually an oversupply, and increasing the supply of taxis would only lead to an adverse impact on the income of all taxi drivers?”
“And instead of requiring notice of the defects to be given in the form of newspaper advertisements, would it not be more effective if media releases were issued and carried by the local news networks? The dealer can then be charged a fee based on the number of defective vehicles he has sold which needed to be recalled. Madam, this Bill also deals with the indiscriminate parking of heavy vehicles. I believe the solution to illegal parking of heavy vehicles is not just in beefing up enforcement and introducing more regulations and fines, but to couple strict enforcement with the provision of more lots for such vehicles at more accessible parking areas closer to the housing estates. I would like to strongly urge the Ministry of Transport to work closely with the Ministry of National Development to solve this problem. Heavy vehicle drivers play an important role in our development as a logistics and transportation hub. For example, a port driver has to be on call and get up at odd hours of the night and morning to move containers and keep our port bustling around the clock. I believe we owe it to them to provide them with some transportational and infrastructural support, to help them in their work duties. We cannot just leave them to tackle their own problems and inconveniences, while we take pride and applaud when our port is ranked the world's best or busiest. Let us not forget the individuals and the nuts and bolts that help drive our success. Madam, I support this Bill.”
“There is not much taxi drivers can do if operators decide to shift their cost burden to them, or not to share any increase in revenue with them. For example, LTA recently approved a taxi operator's application to place an advertising panel sitting on top of the back of the taxi boot. The panel covers half of the rear view of the taxi driver. This compromises the safety of the driver, passengers and other road users. If the panel is damaged, the taxi driver would most certainly be made responsible for the repairs. But how much of this advertising revenue does the taxi company share with the driver? Madam, I would like to move on to the revised penalty for off-peak car offenders. Considering that the total number of weekend or off-peak cars registered in the last 10 years is only about 7,000, I am surprised to learn that close to 200 people have received custodial sentences for tampering with their supplementary licences. I fully support the revised penalty framework, as I see this as a necessary move by Parliament to step in and entrench in the law the desired punishment for first-time offenders and to have a higher maximum fine in place of a custodial sentence. With regard to formalising procedures to make manufacturers and dealers responsible for disclosing vehicle safety related defects and rectifying them, this is indeed a good move. This is particularly so when there are now more and more parallel importers. But with the relative ease of setting up a parallel import agency, one would also expect more of such agencies going out of business. Who could the car owner turn to in the event that his dealer has gone bust?”
“Madam, I then look at the proposed licensing framework again and wonder whether it will solve such service shortcomings and bring about improvements. There are about 19,000 taxis on our roads today. Of these, some 18,000, or 95%, are managed by the big operators - Comfort, City Cab and TIBS. They are either public listed or owned by public listed entities. I would assume that these operators do care about their service standards, are concerned about public complaints and do have the resources to invest in training and facilities to maintain certain performance standards. How would the proposed licensing framework cause taxi companies to improve their service beyond what the existing big operators are already doing? It is not that I do not support the need for taxi operators to be licensed and regulated. My concern is about the big taxi companies passing on the cost of compliance to the 38,000 individual taxi drivers or to taxi commuters who make 600,000 trips daily. There are an estimated 85,000 persons holding taxi vocational driving licence in our economy. With the current poor economic conditions, there is a queue of people waiting to be taxi drivers. The income of taxi drivers has fallen by 10-15% because of the weak economy. Commuters' expectations and pressure on the taxi drivers to meet higher standards continue to rise. Taxi drivers dare not speak up against their operators for fear of losing their rice bowl. In the meantime, the taxi companies are shifting the operational and financial risks and liabilities to their drivers. The taxi licence thus has become a money printing machine, where the licence holder simply sits back and rents out its taxi without much financial risks.”
“Mdm Deputy Speaker, I rise in support of the Bill. First of all, I would like to applaud the Ministry of Transport for introducing a legislative framework for the licensing of the taxi industry, which plays an important role in our tourism and transportation development. But I am not sure how this licensing framework is going to address public dissatisfaction with the taxi industry and improve service for the commuters. One of the key issues we have to look at first is whether taxis are considered public transport service or a mode of private transportation. In the Public Transport Council's "Framework of Regulating Public Transport Services", the Land Transport Authority is acknowledged to have the responsibilities of licensing and regulating rapid transit system as well as taxi services. But, in reality, taxis do not enjoy any benefits that are accorded to public transport providers. Be it the ERP charges, vehicle tax structure or the COE, taxis are basically treated no differently from private cars. Yet, taxi drivers have to abide by various regulations and face constraints that are imposed on private car drivers. So, perhaps ERP charges are one of the key reasons for the complaint of mismatch between supply and demand during peak hours. Contrary to what many thought, taxis do pick up passengers inside the CBD at peak hours. But once they drive out of the CBD, most would cruise outside the CBD as there are not many passengers who travel into the CBD during week day evenings. Most taxi drivers would not want to risk driving back into the CBD without a fare, pay ERP charges and put up with the traffic jams in the hope of picking up passengers within the CBD a second time. Naturally, without this turnaround, peak hour demand will always exceed supply.”
“It is also through larger scale deployment and commercialisation that the innovative solution can be tested for its robustness and effectiveness, and stimulate continuing improvements. Madam, local business associations' response to the SME 21 has been lukewarm. The feeling is that SME 21 will follow the fate of its predecessor, 1998 SME Masterplan, which lost its momentum when the Singapore economy picked up and the MNCs returned to Singapore. There is therefore a need to dedicate special attention and focus on SMEs, even though the economy is starting to pick up. In many advanced countries, like USA and Japan, the government agencies set up to look after the interests of SMEs solely. Therefore, this debate on how we can support the growth of our private enterprises and entrepreneurship in Singapore is timely. I believe Singapore entrepreneurs and businesses too have big dreams. The Government and GLCs can act as a catalyst to unleash the potential of the Singapore Enterprise. By supporting the SMEs, we are nurturing a culture and a mindset of innovation and creativity that marks the making of a great nation.”
“Throughout the years, it has certainly provided many opportunities to our local businessmen in the electronic manufacturing services and support industry, and given them a crucial leg up to help them start on their way to becoming world-class companies. Not until recent times, when market consolidation pushes GLCs to focus on their core businesses, GLCs were aiming to be conglomerates, growing and expanding into all kinds of businesses with no regard to their strategic relevance. GLCs can gain in harnessing the creativity and entrepreneurship initiative of the local enterprises by partnering them in developing solutions that have market potential. It can be a win-win proposition for both the SMEs and GLCs as a partnership of complementary strength can be forged. Many of the budding technology companies lack the opportunity to build a track record to commercialise their solutions. GLCs and Government can provide the test bed for the solutions to gain recognition. Some of these companies are even willing to forgo commercial gains to build up their track record or even offer options for the companies to take up stakes in these companies. But not many got any headway as most of the GLCs and Government agencies prefer to take the option of DIY (do-it-yourself) or use the tried and tested. If major corporations of Singapore do not support the SMEs, how can we expect them to convince potential overseas buyers? The Government has various grants and financial assistance schemes in place to foster innovation. But what is lacking is the creation of an environment where local enterprises can easily find opportunities to deploy their solutions. Developing project or client references is important.”
“Is it not incongruous that SPRING Singapore which spearheads SME development and upgrading owns two subsidiaries (PSB Corporation and PSB Certification) that compete with the private sector? These two entities operate as commercial organisations offering training, consultancy, technology and testing services and certification, leading to complaints of unfair advantage that these subsidiaries have against the private sector consultants. Is there a real need for statutory boards to form companies for them to achieve its mission? A*STAR, the new name for the National Science and Technology Board, formed Exploit Technologies Private Limited, which the Agency has termed as its commercialisation arm. Should CISCO, as a statutory board, venture beyond its armed protection services to compete head on with the private sector to sell alarms and security systems, services and facilities? Madam, what local SMEs greatly need is to have GLCs help open doors for them, particularly overseas. The GLCs have the advantage of brand reputation, network, contacts, connections and deep pockets. The SMEs are looking for a small piece of the action. The feedback from private bosses is that GLCs want to bao chek, that means to take all, and bao yian, that means to win all. If they learn a good idea from the SMEs, instead of working with the SMEs, they would take the idea and do it themselves. GLCs should work hard to dispel and correct this misconception. On the other hand, local businessmen have told me that the MNCs are more open to tapping the local support industries and outsourcing non-core activities to them. Take Hewlett Packard, for example.”
“The question is, where and how they should be involved and still allow room for creativity and private enterprise and entrepreneurship to flourish? And the objectives and rules must be clearly spelt out and be made transparent, and certain anti-competitive practices must not be condoned. My colleague, Mr Ahmad Magad, will tell you that a few years ago when he was planning to set up a factory for his company in the Suzhou Industrial Park, the authority that issues the construction permit hinted to him that if he were to use a related design house and contractor, the permit would be issued in a matter of days. But if he were to choose to use his own designer and contractor, then the permit may take much longer, and even months, before it is issued. It seems that in our regionalisation drive and software transfer to other countries, some of such bad practices have been brought back into Singapore and have slowly crept into our business environment. This is not rampant as yet, but I think a larger company can quite easily say to a supplier, "If you want this business from us, then you must also use our sister company for other services." We must not allow this practice to develop and must nip it in the bud. This is beginning to happen in some sectors, and I hope that we will take the initiative and take firm action to nip it in the bud. While a case can be made out on why the continued presence of GLCs is necessary, it is very difficult to convince the public and rationalise why statutory boards are now entering the market to compete with private enterprises. With the move towards privatisation, liberalisation and deregulation, the Government must maintain a neutral position in order to be effective as a regulator and national agency.”
“Our GLCs are not necessarily a bad thing to building internationally competitive Singapore companies. It was mentioned that, in the past, we did not have sufficient private capital to fund the likes of SIA and NOL, and therefore the Government had to step in to provide the necessary funding. And that times have changed and therefore the Government should not be involved in business nowadays, and should leave it to the private sector. But if we think about that, even today, if we see the future is in wafer fabrication, which non-Government related industrial conglomerate can come up with the money to take up a meaningful equity stake in a billion dollar wafer fab plant? Can our wafer fab initiative be left totally to the private sector? And if not for the group of Hong Kong investors SM persuaded to invest in the Suntec City, which local group would be daring enough to invest in a Convention Centre the size of Suntec City at that time? Madam, I think the Government and the Government-linked companies continue to have an important role to play even today, to build world-class international companies. If, for example, there is good business in a particular area, should we identify a GLC, promote it, manage it properly, so that it grows to be substantial enough to compete with the best in the world, and then later divest it? Or should we promote a private sector company instead? There is no one common strategy that fits across the broad range of industries. Some industries, like wafer fab, port management and airlines, must at least for now be left to the GLCs or statutory boards. Others like pastries, security systems and trade directories should clearly be left to private enterprise.”
“Otherwise, the divide will widen into a gulf filled with misunderstanding and distrust, where each side refuses to work with the other nor share information or resources and prefers to work with its own kind, or simply goes its own way and does its own things. This is divisive. We will not have a cohesive front to tackle our economic challenges. On the whole, we will end up the poorer for it. More needs to be done for GLCs to actively engage SMEs and gain their trust, and for SMEs to improve and upgrade to secure the confidence of the GLCs that they are up to the mark and will be able to deliver. What is the situation existing today? Today, more so than ever before, I find that our local private enterprises are fearful of the competition coming from not just the GLCs but corporatised Government agencies and larger companies as the domestic market place becomes increasingly crowded and keenly competitive. The common complaint is centred on having an unlevel playing field and being crowded out. Our smaller local companies find it hard to compete against the GLCs who have, over the years, as a result of financial prudence, sound management and proper controls, grown even stronger, leaner, hungrier and better managed than ever before. I recall that at the millennium conference held a couple of years back, when asked by a member from the audience about competition from GLCs, Senior Minister of State Khaw Boon Wan, who was then Permanent Secretary of the Ministry of Trade and Industry, replied, "We put good men to run our GLCs well. If a GLC does not perform, we change the man." I think that sent chills down the spines of many of the private sector bosses present then. But having well-managed and competitive GLCs is not necessarily a bad thing.”
“Madam, my vision and hope is that, over time, we will create an open, competitive economic environment: (a) where GLCs and SMEs will work closely together and symbiotically to build a vibrant and thriving economy, both domestically as well as externally, where each has a stake and each plays a complementary role, and where one is comfortable dealing with the other, because of mutual trust, understanding and respect; (b) where GLCs understand and focus on their core businesses, strengths and competencies and tap on, partner, groom and nurture SMEs to break new ground, develop innovative ideas and technologies and venture into new businesses, markets and customers together; (c) where the distinction between GLCs and local enterprises become increasingly blurred, as these terms become interchangeable when GLCs get divested, publicly listed or bought out by management or private equity, and budding local enterprises and start-ups form joint ventures with GLCs or get acquired by GLCs, groomed, nurtured and get spun off again. However, based on the comments and anecdotal stories told by local private business people of their encounters with GLCs and Government agencies, I fear that we are still a long way from reaching and achieving such a happy state of coexistence. I sense that there may be a divide between the management of GLCs who pride themselves in having a strong culture, good corporate governance, transparencies and checks and controls, and the bosses of SMEs who feel proud being brash, daring, nimble and entrepreneurial. A lot more needs to be done and must be done to bridge the divide.”
“Mdm Deputy Speaker, the effectiveness of Government-linked companies (GLCs) and Government agencies in driving the economic development of Singapore since independence is undeniable. A report by the US Embassy in Singapore recognised Singapore GLCs to be well run, efficient and profitable, unlike typical state-owned enterprises in many other countries. It also acknowledged that the major GLCs, including Singapore Airlines, Neptune Orient Lines, Chartered Semiconductor, Keppel Corporation and Sembawang Corporation are publicly listed and among the best known corporate names locally and regionally. Indeed, we should be proud of our GLCs and Government agencies which contributed about 13% and 9% respectively to our Gross Domestic Product in 1998. However, the very success of the GLCs and Government enterprises has reached a point where private enterprises feel crowded out of local businesses and has sparked calls for a refocus of the role of Government in business. An open and competitive economy like Singapore will need to have rules to curb excessive economic power being concentrated in and wielded by any particular group, thereby resulting in inequitable conditions and stifling of competition and choice. A spread of economic clout is necessary to ensure a balanced, healthy and sustained growth of the economy. It is thus timely that the Entrepreneurship and Internationalisation Sub-Committee (EISC) has made several recommendations that seek to promote a level playing field and provide fair competition and fair opportunities for all enterprises, big and small, Government and private, to succeed. Similarly, Temasek Holdings' declaration of its Charter is a positive move that provides better clarity and transparency in Government philosophies and dealings.”
“I know this issue has been discussed on many occasions in the past, but I think it is worth revisiting at this juncture. The intention of the proposed changes to the CPF system is to refocus on three areas - retirement expenditure, healthcare and home ownership, and also to fix the relative proportions of these three sub-accounts. In the past, many people had over committed in properties and are now left with proportionately insufficient funds for adequate healthcare and retirement expenditure. This could also be caused by unexpected illnesses that have led to an increase in medical expenses. I believe reverse mortgage is one way to realign the respective proportions and allow the CPF account holder to shift some of his funds that are locked in the HDB flat into funds that are available for medical and retirement expenses. I would like to urge the Government to review its policy on reverse mortgage. Sir, subject to the above concerns being considered, I support the changes.”
“Therefore, if we want to go the free market way for mortgage loans, then we should also go the full haul and such HDB restrictions should be removed totally or relaxed significantly. Sir, my next concern is about the change to give the mortgagee bank the first charge over the property in priority to the CPF Board. The present system where the CPF Board has the first charge and the sale proceeds of the property would first go to the CPF member's account to satisfy any withdrawals made and interest that would have been earned, has been with us for many years and has served us well. I say this because although the bank has a second charge, the borrower still has personal liabilities to the creditor bank to meet fully any shortfall in the repayment. So, if the outstanding bank loan is $600,000 and the property is sold for $800,000, but $300,000 has to go back to CPF, the borrower continues to be indebted to the bank for the shortfall of $100,000. And the bank will sue and enforce for that amount. Now, if we reverse the order, and the borrower owes CPF Board the $100,000, how will the CPF Board enforce for the money to be paid into the member's CPF account? Will the CPF Board make him a bankrupt? This being the case, with CPF Board being a less "tough" creditor compared to a bank, I fear that buyers of property will become more adventurous and take more risk than necessary in deciding to make a property purchase. Somehow, people still do not quite treat their CPF money as their own money, and they do not feel the pinch so much when they lose it or spend it. A clear example is Medisave. People have no qualms about being warded in expensive private hospitals if the expenses can be deducted from their Medisave account. Sir, my next point is about reverse mortgage.”
“And under the present rules, HDB owners are not allowed to sublet their flats unless under very specific situations. So, where are the affordable rental flats going to come from, if not from the HDB and the existing pool of HDB flats? I would like to urge the HDB to relax its rules on subletting, as this must surely be consequential to its decision not to continue granting market rate loans. I cannot see how the HDB can say to a HDB flat buyer, you must get your loan from a commercial bank and bear the risk of being evicted if you default, and yet not allow the owner to rent out his flat for extra income, or to order his life in such a way that he would be able to meet his financial obligations. But, on the other hand, if rental of HDB flats is relaxed and a large number of HDB flats is suddenly released into the rental market, the impact on the private property rental market will be tremendous. Sir, another HDB rule that has to be reviewed is that the buyer of a resale flat cannot resell the flat within the 30-month minimum occupation period. Now, what if a buyer had taken a market rate loan and, say, 12 months later, he could not afford to service the loan due to a change in his financial circumstances? Can he sell the flat to lower his financial burden? Can he buy another and smaller resale flat? Previously, the flat owner could go to the HDB and reschedule his repayment if he has financial difficulties. In future, the commercial bank is not going to be so understanding nor patient, and may even impose very punitive default interest rate which applies when the borrower is in arrears on his repayment. The flat owner will then be caught between the devil and the deep blue sea.”
“Now, with the proposed move by the HDB to discontinue granting market rate mortgage loans, HDB flat buyers will have no choice but to obtain such loans from private commercial financial institutions. My concern is that when repayment is in arrears at times of difficulties, these commercial financial institutions will be tougher, less sympathetic and faceless in forcing the disposal of the HDB flat compared to the HDB. This will lead to an increase in the number of people who will be made homeless without a roof over their heads. Sir, this is not a small matter. For the year 2001, the number of bankruptcy orders issued was 3,247, and in the first five months of this year, 1,457 persons were declared bankrupt. Under the present system, if someone owns an HDB flat and has difficulties servicing his HDB loan repayment, he can approach the HDB for the repayment to be rescheduled and his creditors cannot touch his flat. He can continue to own his HDB flat and his family members can continue to live in it, even when he is made a bankrupt. With the changes to the rules, if the loan for his HDB flat is from a commercial bank, his flat would be forced sold as part of the bankruptcy proceedings, and he and his family members would be left without shelter. I would like to ask DPM where can such a family turn to. What are the options open to him? This is a fundamental change in the structure of our housing safety net, and one that we should not undertake lightly. Is there an affordable rental housing market that those in need can turn to? If not, how can we create one? I understand it is the HDB's intention not to be the provider of subsidised rental flats in a big way.”
“Mr Deputy Speaker, Sir, the recommendation by the Economic Review Committee to refocus the CPF system on retirement expenditure, healthcare and home ownership is timely, perhaps even overdue. It is hard to argue against the principles set out in the report. But we have to be very careful in their implementation, as any change to the CPF system would naturally lead to changes in the flow of funds into or out of properties and could have a significant impact on the property market, public as well as private. Therefore, we should not make changes to the CPF system without considering the necessary changes that should be carried out in the HDB property market, which represents more than 85% of all household units within our shores. To do one without the other could lead to adverse and undesirable consequences. Sir, I would like to focus on the proposed changes arising from the review of HDB's market rate loans and to supplement some of the points brought up earlier by Mr Ravindran, Mr Andy Gan and Dr Lily Neo, as I think this will have far-reaching consequences. I have three concerns. The HDB has all along been a monopolistic supplier of affordable housing for the masses. One of the reasons Singaporeans buy HDB flats is the safety net it provides in bad times. People look to the Government for shelter and, in Singapore, the Government is expected to provide a roof over our heads. Section 51 of the Housing and Development Act provides that no HDB flat shall vest in the Official Assignee on the bankruptcy of the Singapore citizen owner, and no HDB flat shall be attached in the execution of a decree of any court.”
“We need to push as far to the margins as possible to maximise the use and the returns on our land resources. High land cost is a real concern. I think we can slice this problem in a number of ways and come out with creative ways to solve it. The Executive Condominium concept was a brilliant solution, at that time, to bridge the gap between HDB and private condominium. It means buying an apple now and 10 years later, when the restrictions are lifted, it turns into an orange. There is an element of subsidy. By modifying the restrictions and the title of the land, the Government has sold a piece of land, which physically is the same property, for lower price by artificially imposing man-made rules and conditions. I would like to ask the Minister for his views on the present state of the property market and whether his Ministry has any policy or plans to bring about better and more competitive usage of land.”
“Sir, the Singapore property market has declined significantly over the last few years from its peak. Many owners who had bought their property during the few years before 1996 are now saddled with negative equity. There is concern that prices should not be allowed to fall further as this would affect the net worth of all home owners. The relevant Government agencies - MND, SLA, URA, JTC, HDB and CPF Board - must therefore be cautious not to trigger another drop from these levels, thereby bursting the property bubble and bringing about a prolonged downward spiral and asset deflation, like in the case of Japan. The use of the word "bubble" is meaningful. It is not a balloon where one can let out air when it is too inflated and let in air when it has room to grow. One cannot say, let us lower property prices by 30% and be certain that prices will come down 30%, and no more, no less. A bubble is fragile. There is a real danger of this bubble bursting in our faces. But being cautious does not mean the Government should be paralysed from acting for fear that the property bubble will burst. Property prices are still relatively high. High land prices will translate into higher costs for everything that is related to land, add to our business costs and erode our competitiveness. The issue we have to tackle is how do we ensure that the stability of the market is maintained and yet introduce lower cost land use so as to bring about lower usage cost. For one, URA can be more flexible on the use of space and have a lighter touch on its rules and enforcement. We should also study other countries, like the United States and Hong Kong, to see how they use space flexibly. Some of our planning norms need to be changed.”
“Sir, I filed this as a $10 cut on a matter of detail, but it has been elevated. Sir, my question is a simple one. When an employer is late in paying the employee's contribution, the CPF Board charges interest at the rate of 18% per annum on the amount outstanding from the due date until the payment is made. Who should be entitled to this interest which, at the rate of 18% per annum, is quite close to the exorbitant 24% charged by credit card companies? Should it not be paid over to the employee, who, after all, is bearing the risk of not being paid the CPF contributions, which, in some cases, can add up to a few months' worth, if his employer becomes insolvent and goes under?”
“Sir, the in-vehicle unit was introduced into our cars with the implementation of the ERP system some years back. Since then, there have been many cases of thieves breaking into vehicles to steal the cash cards that were exposed to view. I would like to ask whether it is time, after all these years, for an upgrade model to be designed and introduced.”