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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“One of my grassroots leaders narrated to me his personal experience. He came across a new product in Italy that was superior and would prove to be an advantage in bidding for a certain Government tender. Being a small-time businessman, he approached a GLC to jointly pursue this Italian contact. He thought he could trust the GLC without signing a binding joint venture contract or non-circumvention agreement. Was he wrong? When he brought the Italian principals to Singapore, the GLC partner ferried them away, bought them an expensive dinner and proposed to deal directly. With the GLC's immaculate credentials, it is no surprise that the Italian company was convinced to deal with the GLC directly, and the small guy was excluded from the arrangements. When I raised this with some prominent people, the response was that the business world is a dirty shark-infested one, especially in doing business with some of our neighbouring countries. Our GLCs could not be expected to adopt one set of cut-throat business practices for their regional deals and another set of more accommodative and friendlier practices in dealing with Singaporeans. Sir, I cannot agree with this. We must encourage our GLCs to adopt a sense of business decorum, especially in dealing with our own that will lead to a win-win situation. We should create a more helpful coexistence between GLCs and smaller players. Another private sector complaint about GLCs is that they are deep in pockets but shallow on ideas. There is a perception that if you propose a good business idea to GLCs, they will take it and exploit it on their own with their strong financial resources. This is not healthy. CEOs around the world lament the lack of quality management and human resources.”
“Sir, from the economic statistics, we saw that, though the rest of the business sectors improved in the fourth quarter of last year, performance by small firms actually deteriorated. A sub-index of sales by small companies was minus 52%, as compared with the plus 35% reported by larger firms. Other Members of this House have brought up the difficulties faced by small and medium enterprises (SMEs). I will not labour on these points except to say that Government grants and tax incentives would not be of much use unless the SMEs can increase their business revenue. SMEs have been told time and again that with the Internet, the whole world is their global marketplace, and they can sell their products to customers in every part of the world. But, in practice, how does one actually achieve that? It is always difficult to draw interested customers to visit your website. A search engine may throw up tens of thousands of related websites. And after that, there is the question of follow-up and delivery. To increase their marketing reach and business revenue, SMEs would probably do well to form alliances, either among themselves or with larger firms. At first glance, one would assume that Government-linked companies (GLCs) are obvious alliance partners for our SMEs. But, when I mentioned GLC as a likely partner to some of the private sector companies I came across, I was perturbed by their reaction. More and more, I received the retort, "The GLCs will swallow you up." And this was said not only by local companies but by some foreign companies as well. This is not healthy. I do not have statistical evidence to prove whether this is warranted or not. It is based on what private sector businessmen tell me, and on one particular example.”
“We should follow the good example set by these great individuals of capitalism. In conclusion, Sir, I would like to go back to the heroes of American popular culture whom I mentioned in the beginning of my speech. Robert Bellah has pointed out the American myth's hero "again and again saves a society he can never completely fit into". The value of American heroes to their society is that they "stand alone, not needing others, not depending on their judgment, and not submitting to their wishes". But this brand of individualism is not selfishness. It is to be regarded as a kind of heroic selflessness where one accepts the necessity of being alone, of being different from the rest and of going against the system in order to serve the values of the community one comes from. For us to succeed as a society in the long run and to make sense of all these incentives and assistance given by the Government, entrepreneurs who made it must feel the need to, and do in fact, return something to the community. Whether by serving the community, by creating job opportunities for other Singaporeans, by giving to the community and charities, or by keeping some of their businesses in Singapore and paying their taxes, I hope they will continue to contribute in some significant way. Sir, I support the Budget Statement. EXEMPTED BUSINESS (Motion) Resolved, That the debate on the Budget Statement be proceeded with beyond 4.30 pm and the proceedings thereon be exempted at this day's sitting from the provisions of Standing Order No. 1. - [Mr Wong Kan Seng]. Mr Speaker: Order. I suspend the Sitting and will take the Chair again at 4.00 pm. Sitting accordingly suspended at 3.33 pm until 4.00 pm. Sitting resumed at 4.00 pm [Mr Speaker in the Chair] ANNUAL BUDGET STATEMENT Debate resumed.”
“We pulled together as a community to help those who were less fortunate. But there is a difference in that when people lose their jobs, we empathise with them because often it is something beyond the worker's control. On the other hand, for the risk-taker, he is consciously leaving a secure source of income to take risks that may pay off or may not pay off. Nevertheless, I believe if we are committed to encouraging enterprise we, as a society, should also be prepared for the consequences of failure. As a society, we must be committed to help, nurture, and support these risk-takers to sustain them and their families in difficult times. This is the huge undertaking, the long term benefits of which depend on the risk-takers themselves. Why do I say this? This question leads to the second limb of what our Prime Minister said at the last National Day Rally. How do we rejoice with the winners who collect the pot of gold? Or, put it the other way round, for our entrepreneurs who have collected their pot of gold, what should their response be? After the support and sustenance that society has given entrepreneurs to bring about their success, it will be very sad if, when they have made it, when their company is listed on SGX or NASDAQ, and they are worth a few hundred million dollars, that they should pack up and leave Singapore. I am reminded of the great entrepreneurs of the industrial revolution. Men like Carnegie, Mellon, Ford and Rockefeller. These entrepreneurs defied the values of landed gentility and inherited privilege, had the courage and the determination to strike out on their own and transformed the world. These men became great through massive corporate acquisitions and empire building, and great again through massive charity.”
“When their investments did not bear fruit, and especially when things took a turn for the worse as a result of the economic crisis, we heard all sorts of complaints and grumbling from business people that the Government was somehow to blame. Surely, this is not the spirit of a true entrepreneur. We have heard again and again the term "caveat emptor", buyers beware, being mentioned in this House. We must learn to be less reliant on the Government and be more independent to watch out for ourselves. I am not saying that society should not support those who have failed. I am just reminding ourselves that we should assume some healthy responsibilities in whatever venture we embark. The true spirit of an enterpreneur is to take risks and to bear them bravely. As Finance Minister Richard Hu said, many talented people are prepared to accept low or even no salaries in return for equity stakes. These stakes can be worth a lot of money but only if the company is viable, goes for an IPO or is acquired by another company. What if a risk-taker cannot support his family while waiting for his shares to increase ten or a hundred fold? What if the company fails and his shares are worthless? In such a situation, we may end up with a group of people who may not have received any income for months or who have lost their life savings and are facing financial hardship. As a society, we must support those who do not make it. Having gone through the last economic crisis, such cases are not new to us. During the crisis, there were some people who lost their jobs and their source of income. The Government stepped in to help. The HDB was asked to reschedule their housing loan repayments. The Ministry of Education was asked to waive school fees for their children.”
“Some mistakenly thought that all they had to do was to rent some shop space, take some goods from the distributors, display them on the shelves and hope for the best. But it is not so simple. Many retailers are hardly able to make ends meet. Others are profitable mainly due to good location which brings with it good human traffic. From time to time, our Ministers have lamented the low level of productivity in our retail sector. Likewise, if we are not careful and do not learn from our past mistakes, our new economy may be littered with run-of-the-mill cybershops floating on the Web suffering from poor Internet traffic, where the cyber equivalent of a good location is a catchy dot.com name. Nonetheless, even with the best programmes, incentives and assistance, e-commerce and whatever other enterprises, always carry a certain element of risk. Our Prime Minister said at the last National Day Rally that we must "accept the inevitable failures and rejoice with winners who collect the pot of gold". Both these limbs - accepting the failures and rejoicing with the winners - are challenging. On the first, what does it mean for our technopreneurs to accept failure should they choose to take risk with the hope of reaping the potential reward? I certainly hope they do not blame the Government for having encouraged them to take the risk. I am reminded of our drive some years ago to go regional and develop our external wing. Many companies heeded the Government's call and expanded their businesses into countries like the People's Republic of China, Vietnam and Indonesia.”
“In other words, the risk cannot be for risk's sake, but must be calculated. Those intending to venture out must consider carefully their business plans, revenue models, and competitive advantages in starting their new business in the new economy. In this new and untested world of e-commerce, some ventures succeed spectacularly, but many will simply fall along the wayside. I believe we can minimise the waste of human talents not merely by hanging out monetary incentives and financial assistance but, more importantly, by proper guidance and assistance. To develop successful ventures, we need sound innovative ideas, good management, supportive partners, right timing, and a certain amount of providence for the many things that lie beyond our control. The Government can assist with some of these concerns. In the world of e-commerce, alliances can be formed to create a buzz among technopreneurs to share their experiences and mistakes. An Internet association could be set up where people can meet and exchange ideas and information. Through such a forum, would-be entrepreneurs can find out what is new in the market, what has succeeded and what has failed. For those who are thinking of taking the plunge, this would be a good place to seek professional advice and tap on the finances of angels and venture capitalists, and on the experiences of industry gurus. This can improve the chances of success. Sir, my fear is that, if left on its own without proper guidance and assistance, our new economy may go down the same path as our traditional retail industry. In the old economy, I know of some people who left well-paid jobs to start retail outlets. It is a business that appears simple enough.”
“For every successful actor like Tom Cruise, there are hundreds of aspiring actors and actresses who sit day in and day out in audition queues and never got selected for a major part. For every great golfer, like Tiger Woods, or tennis star, like Pete Sampras, there are hundreds of unknowns who grind away but never quite make it to the big league. This is one strong point of the American system that it is able to support and sustain a large group of aspiring talents to produce the few truly excellent ones. For a small country like Singapore, can we afford letting our scarce human resources choose to do what they want with the risk that some, if not many, would never quite make it? This would be a major shift from our, I mean as parents, paternalistic approach of directing our children to undertake particular fields of study that will stand them in good stead to be gainfully employed with his or her skills used to the fullest. Can we balance the need to plan, organise and not waste human talent, with the need for people to be entrepreneurial and hence to choose for themselves? The danger is that many may end up floating around, experimenting and not succeeding anywhere. To us Asians, the desire to strike it out on our own, and be our own bosses, is not new. And when we fuel it with words of encouragement, financial incentives and especially the promise of the pot of gold that awaits the successful, I am sure that there would be some who would naively take the plunge into the world of technopreneurs even though they are ill-equipped and ill-prepared to do so. Senior Minister Lee sounded a note of caution at the recent NTU forum when he said that one should not go blindly into the gold rush of dot.com start-ups. Risk must go hand in hand with research, with sound thinking.”
“American culture encourages the individual to decide for himself, chart his own destiny and do his own thing. It constantly reminds the individual to be all he can be even to the extent of rejecting the influence of other people and opposing the external flow of events. To many of us, this idea can be disturbing as it conjures images of rebellious anti-establishment disenfranchised spoilt brats who go around spraying graffiti and vandalising cars. That is one aspect, the negative side. To derive full benefits from our entrepreneurship drive, we must manage the negative and tap on the positive aspects. A common story line in American movies is about the individuals who cannot quite fit into his environment, is rejected by his peers but yet comes back to save the world. Hence, in Star Wars Episode I, the individualistic Obi-Wan-Kenobi goes against the Jedi council to take on Skywalker as an apprentice. Tom Cruise, the Maverick in Top Gun, is defiant towards authority but comes back to save his fellow men. Bruce Willis in Die Hard, Sylvester Stallone in Rambo, Clint Eastwood in Dirty Harry and the list goes on. These are stories of self-determined individuals who have the tenacity to pursue personal dreams but who also think of their fellow men. Taken together, these are very powerful attributes of entrepreneurship. I hope in parenting, and in our schools, we will not only emphasize the creative individual in our young but also the social responsibilities that come with it. Another concern is that for every successful person who comes into the spotlight, there are probably hundreds, if not thousands, who did not quite make it.”
“Mr Speaker, Sir, thank you for allowing me to join in this debate. The Government is strongly encouraging innovation, creativity and enterprise. Over the last few months, there has been a general call for Singaporeans to be less risk averse so as to compete in the big league in this globalising world. It is therefore no surprise that for this year's budget, Finance Minister Richard Hu reiterated the Government's clear intention of pursuing this change of attitude among Singaporeans and announced specific measures to encourage potential entrepreneurs to hazard more risks. Many are seriously considering venturing into the new e-businesses, principally because of the huge financial rewards that await those who succeed. Stories about millionaires being made every day in Silicon Valley stir our imagination and fuel our dreams of creating the same wealth. With technology convergence and emergence of a new economy, there is now a better chance of making it big than ever before in our history. But what is required to succeed in the new economy? As reflected in the front page of the Straits Times today, many Members of this House who spoke before me have asked whether we are ready for the new economy. Sir, at this juncture of the debate, I would like to touch on the related issue of whether we, both as a society and as individuals, are prepared for entrepreneurship and its consequences. Many of the recent success stories we hear come from the United States. We cannot deny that our young are very much influenced by American culture and the American style of wealth creation. Throughout its history, America has produced more entrepreneurs than any other society. This is in part because no other culture is as dedicated to making each individual's dream come true.”
“Our NTUC supermarkets, wet markets, hawker centres, and national parks are frequented by people from all walks of life. Cosmopolitans are not shy to say that they do so. This is an encouraging sign and we must continue in our efforts to narrow any gap in the quality of these facilities, so that they do not just cater to a particular segment of the population. Sir, the basic principles are in place and without abandoning them, I believe more can be done in each of these areas to gel the people together to enhance social cohesion. With a cohesive people supporting the Government and its policies, we can confront and tackle problems head on and pull everyone together to focus on the challenges and the possibilities that are ahead of us. However, any measure to distribute income more evenly must not stifle the drive to excel, but must be balanced with other needs of retaining talent and promoting economic growth. We must continue to maintain the meritocratic society of equal opportunities while, at the same time, working together to narrow any economic disparity among the different segments of Singaporeans. In the process, we can cultivate a sense of belonging and identity that is firmly grounded and resilient to weather any turbulence ahead. Sir, I support the motion.”
“They felt that they could quite easily be cosmopolitan at times and a heartlander at other times. But that is in terms of outward behaviour. While our Prime Minister spoke about the difference in outlook, orientation and interests, nevertheless, in Singapore, a typical cosmopolitan can be very comfortable, behaving outwardly as a heartlander at times, and doing things heartlanders do because of the deliberate efforts of the Government over a long period of time. Throughout the years, many of our Government programmes have brought along a narrowing of the differences in standards of living and quality of life in the material sense. For example, our campaigns to keep Singapore clean, to flush the toilets, to be courteous and campaigns against spitting and smoking have caused a change in the behaviour of people over time. And the norm is being established and accepted by Singaporeans in general. This has narrowed any differences in behaviour and averted a situation where one social group finds the behaviour of another social group despicable. So, most hawker centres today are of an acceptable standard. But if this were not the case, and if hawker centres are dirty and rat-infested, and many people there spit on the floor, some people would probably avoid such places because they do not fit into the idea of a desirable place to enjoy a meal. This would then lead to a divide among Singaporeans based on where they frequent to take their meals. In our public housing and social amenities, the standards have improved and the gap in the material sense is not wide. Amenities built to cater to the public have improved in standard and even the rich do not shun them.”
“I am therefore heartened to hear the President's note of caution that the new restructured economy must not widen the gap between those who sprint ahead with the new technologies and those who struggle to master them. Sir, our Government has all along pursued policies to enhance the cohesion of our society where even while the able is called upon to lead in the growth of the economy, the rest of the population is not deprived of the rewards but has enjoyed a share in our economic growth. Since independence, Singapore has achieved remarkable success. For decades, we have sustained one of the fastest growing economies in the world, while maintaining low inflation, virtually full employment since 1973, and a steady rise in real income and standard of living of Singaporeans as a whole. Unlike some developing countries, this overall increase in income has not been confined to a privileged minority but is enjoyed by a broad section of the population. Over the years, there has been a reduction of poverty and income disparity. This is because we have not pursued policies favouring the rich at the expense of the middle and lower classes. No one should accuse our Government of doing little to help the lower income group get out of the rut. The fundamental principles that we have adopted to organise our society have helped to ensure that any gap between the various segments of the population does not become unmanageable. Many people would agree that the gap at present is small. I found a recent example of this in the reaction and our Prime Minister using the terms "cosmopolitans" and "heartlanders". Many people I spoke to felt that there was not a clear distinction between the two groups.”
“There is no denying that the last two years were valuable lessons but they are history now and we move on. But there are also many others among us who have literally lost their pants in the crisis. They lost their jobs, ran up huge debts, compelled to sell their assets, their homes were foresold and some were even made bankrupt. Even today, when the general consensus is that the economy is picking up, mortgagee sales of private homes are still happening. Different people went through the crisis differently and are now assessing their future from different perspectives. I felt this when I told my constituents the crisis is receding and we are emerging stronger than before. They were not unanimous in agreement. Some did not agree wholeheartedly with this observation because the crisis and the structural changes and restructuring that it brought about had impacted them adversely and in a profound manner, and they are now worse off than before. This crisis has brought about many fundamental structural changes to our economy. Certain skills that were valuable in the past are now no longer needed. Some of the old wealth has been eroded, even dissipated, while new wealth has been created. If you are not careful, this will result in a widening of the disparity between at the one end, those who are well-placed to tap into and take advantage of the new restructured economic environment and, at the other end, those who are still struggling to find their feet and whose skills no longer command the same value as they are being offered by a multitude of others who are prepared to accept lower wages. If this issue is not effectively dealt with, there is a danger that those who feel deprived and left out will become alienated and resentful.”
“Mr Speaker, Sir, thank you for allowing me to join in this debate. Sir, many Members before me have spoken on the President's Speech, touching on the Government's commitment to the Singapore 21 Vision and its focus and at this juncture of this debate, I would just like to touch on those aspects of the President's Speech which serve to focus our minds on many post-crisis concerns of today. As a country, we have withstood the economic crisis of the past two years which was described as one of our most severe economic tests since independence and are emerging relatively unscathed in general compared to other countries in the region. But before we give ourselves a pat on the back, congratulate each other for a job well-done and become complacent in believing that what needs to be done has been done, we should examine how the crisis has affected the different segments of our population and how we are handling the challenges ahead. We should ask ourselves whether the same measures that we took to survive the crisis have weakened or will weaken our social fabric and our social cohesion in the long-term, and if so, what must be done to avoid such consequence. How the impact of the economic crisis is felt differs from people to people, person to person, family to family. For some, it was just like sitting through a horror movie. Although it was frightening while it lasted, they were watching the events as if from a distance, as an observer. And now that it is behind us, they let out a sigh of relief and say, "Boy, that was scary. Good thing we were not that badly affected and emerged basically intact." The monetary value of their property, their shares and their assets is now back to pre-crisis levels and they have managed to maintain their source and level of income.”
“However, the law should provide some form of mechanism for a dissatisfied creditor to apply to the Court to review, and if found fit, to have the exercise of the power set aside. Although it is recognised that the OA's office is in a better position than the Courts in many cases to deal with the particular matters which the new powers relate to, there may be special circumstances in which the Courts' intervention may be necessary to bring about a fairer balance between the interest of the bankrupt and those of the creditors. In line with the spirit of the new amendments, such a mechanism for review could take the form of a quick and simple application under the Act rather than by cumbersome procedures for judicial review. Sir, I support the Bill.”
“Thus, the old section 157 operated without prejudice to the rule relating to personal service of statutory demands and the rule relating to personal service of petition. The new section 157 is not restricted in this manner and by reference to the rules, it appears to be intended to override the rules and thus will conflict with these rules. The new section 157 should therefore make it clear whether it is to operate without prejudice to the rules or notwithstanding the rules. My preference is that it should operate notwithstanding these rules, which should then be repealed. This will make it easier for creditors to serve such documents on debtors who frequently evade service. However, this may go against the spirit of the amendments which is to be more protective of debtors' interests. Sir, at this juncture I would also like to raise an ancillary point on the present section 123(1)(b) of the principal Act where there appears to be a typographical mistake. The word "paid" in the second line of subsection (b) should read as "proved". This may be a good opportunity to rectify this error. My last point relates to the powers of the court. The new amendments to the Bankruptcy Act, Companies Act and the Business Registration Act will widen the powers of the Official Assignee. Some of these powers were only exercisable by the Court in the past, but now they will be exercisable by the Official Assignee. Indeed, it appears that no procedure has been provided to allow the Court to oversee the exercise of the OA's discretionary powers. There is no objection in principle in giving these wide powers to the OA.”
“However, the new section 95 provides that anyone who fails to attend a meeting of creditors or who fails to signify his assent or dissent in writing is taken to have voted in favour of the resolution. This is different from the present position whereby such a creditor's debt will merely be disregarded in calculating the percentages of rates for or against the resolution. The new provision appears to detract from the fundamental principle of law that silence is not assent. The objection to this is not merely academic, as the effect of a successful composition under the new section 95 is that the rights of the creditors may be affected, ie, that they may have to accept less than 100% of their debt or compromise their priority status in the ranking of creditors. While the new procedures are in general welcomed, I wonder if it would be going too far to put undue pressure on creditors with these technicalities. A creditor may fail to attend a meeting for good reasons, for instance, the notice for the meeting may have gone astray. Further, could the Minister clarify what is the result where nobody attends the meeting or replies to the OA's invitation to vote? As there is no longer a requirement for a quorum, it appears that composition will go through with 100% voting in favour. My second point relates to clause 8 of the Bill. The proposed section 157 deals with service of "any summons, notice or document" and is thus wide enough to cover service of statutory demands and creditors' petitions. The old section 157 made it clear that it did not apply to the service of any document for which a special mode of service had been prescribed.”
“And it would be a double whammy for that person if, because of the financial difficulties arising from unemployment, he is made a bankrupt as well. Under the existing rules, a bankrupt has to seek the permission of the Official Assignee (OA) to do so. However, such permission from the OA may be declined or delayed for a whole host of reasons. One of the key concerns is in ensuring that the bankrupt would fulfil his obligations towards his creditors and the OA when he is free to leave the country. Yet, the job abroad may offer just the most crucial opportunity for the bankrupt to turn his life around. Therefore, I believe that we should find ways of fine-tuning the present conditions to allow the bankrupt to work overseas while at the same time securing his return to repay his debts. Although changes to existing legislation are necessary for the changing needs of our society, we must of course bear in mind the need to balance the interest of the individual bankrupt and those of his creditors. It is also important that the new rules are not open to abuse. In this connection, I would like to make the following comments on some of the specific provisions proposed under the Bill. First, the proposed amendment to section 95 of the Bankruptcy Act is intended to simplify the existing procedures for a bankrupt to propose the composition and scheme of arrangement of his debts to his creditors and to obtain their approval. The composition or scheme of arrangement may under the re-enacted section 95 be voted on at a physical general meeting of creditors, or the votes may be put in writing through the post by the creditors. This makes it easier for compositions and schemes of arrangement to be settled conveniently and with less hassle.”
“Mr Speaker, Sir, before commenting on the Bill, I would like to declare my interest as a lawyer in private practice where from time to time, I advise clients on bankruptcy and insolvency matters. The amendments to the Bankruptcy Act, the Companies Act and the Business Registration Act proposed under the Bill seek to put in place important measures in support of the Technopreneurship 21 initiative which we are promoting in Singapore. The proposed amendments are welcomed as concrete and practical measures to relax the rules and procedures affecting bankrupts in Singapore. It is hoped that these changes will help encourage greater risk-taking amongst entrepreneurs and would-be entrepreneurs and will reduce the unnecessary restrictions and burdens on those who may have failed in previous business ventures but have the resolve to try again. In line with the measures to encourage the bankrupt to work towards a speedier discharge of his bankruptcy, perhaps the Minister of State could also consider relaxing the conditions for bankrupts to travel and work outside Singapore. I have come across a number of cases where the bankrupts have failed in their business ventures in Singapore, or had been structurally retrenched from their jobs, but who are willing to travel abroad to take up employment opportunities in other countries in order to earn a living to provide for their families, to repay their debts and to secure a discharge of their bankruptcy. We have discussed on many occasions in this House the problems of structured unemployment . Where a person is retrenched because of the particular industry he has been engaged in is going through a period of consolidation and structural changes, it would not be easy for him to find another job in Singapore.”
“And I have to say this in this House because there is a very strong misapprehension amongst many lawyers, auditors and businessmen that it is fine to have an information technology-based information system or document management system, but these systems are good only for in-house records. But the moment you need to deal with the Inland Revenue Authority of Singapore and the Customs Department, you must produce paper. So, despite the provisions that we already have introduced in the Electronic Transactions Act and Companies Act permitting electronic record keeping, such people still have the misapprehension that they cannot do so and therefore it would be good if the Minister could clarify at this opportunity presented before the House to clarify these points. With that, Sir, I support the Bill.”
“So if future developments lead that way, as they would especially when we have Internet stock trading and so on, then there would be a need to perhaps clarify the terminology of this provision when it deals with the word "certificate", for example, whether such certificates could be extended to electronic equivalents. Currently our Electronic Transactions Act does not permit most of the documents in the First Schedule of the Stamp Duties Act to be electronic. But there could come a day when perhaps even the Ministry of Finance finds it comfortable to do something like this in a paperless fashion. Perhaps even there might come a day when the Government needs to include new instruments to be stamped, so I think there is a need to clarify if these certificates would one day be completely electronic and online. Clause 30 of the Bill deals with certain powers for the Commissioner to exercise. As the Minister has said, it is based on the Income Tax Act and the powers of the Comptroller of Income Tax. I think section 70C that is proposed, especially subsection (2), is a good provision to have in this Bill and in the Income Tax Act and in any of the other tax Acts that we have, in addition to any other Acts that deal with customs duties, excises, Government charges and fees, and so on. The reason I say this is that it makes it very clear that the Comptroller or the Commissioner of each of these respective Acts has got the power to look at computer records. By implication, therefore, computer records for tax purposes or tax documents are permitted and legal in the law.”
“I believe a predictable and stable tax environment is fundamental to the continued development of the financial and other business sectors in Singapore. Sir, I support the Bill. Assoc. Prof. Toh See Kiat: Mr Speaker, Sir, I am not a tax expert like the hon. Member Mr Ong Kian Min. So I will not touch on the taxing aspects of this Bill. I see this Bill however as an opportunity to reform and streamline our laws for the world of Internet trading and to prepare our country and our business and public sectors for electronic document and information management systems. So even though this Bill, as it stands before the House, is primarily one to deal with the physical attachment of E-stamps to physical documents through electronic processes, I would like to urge the Minister to perhaps look wider and further especially in future exercises to amend the Stamp Duties Act and the different Acts dealing with taxes, duties and Government charges. Clause 4, for example, deals with the stamping of documents. And in the First Schedule of the main Act, there is mention of the stamping of contract notes. I would just like to ask the Minister if he would clarify if these contract notes were to be electronic, whether these would also need to be stamped, or whether the duty would be waived. There is a new section 6B proposed in clause 5 of the Bill, and this also deals primarily with the electronic procedures for the E-stamp certificates where the electronic stamping of documents will one day be possible for documents that are created online.”
“Sir, like income tax, stamp duty is wholly a creature of statute and it is an established principle of statutory interpretation that clear words are needed to impose tax liability on a person, and that any ambiguity should be resolved in favour of the taxpayer. On this point, I would have liked this Amendment Bill to address the perennial uncertainty in relation to the share reconstruction exemptions under the present section 15 of the principal Stamp Duties Act. Because of the uncertainty in the definition of "scheme of reconstruction", many companies and practitioners have had to write in to the Stamp Duty Office to seek confirmation as to whether a particular restructuring exercise falls within the exemption afforded by section 15. Unfortunately, the criteria adopted by the Stamp Duty Office appear to have shifted internally over time and now include a condition that the restructured group should not be publicly listed within two years after completion of the restructuring. This is surely an area in which our existing legislation is due for clarification. In this regard, we might look to the Hong Kong example, where under their Stamp Duties Ordinance, there is much clearer and more certain "90% shareholding" rule. Commercial transactions are of course extremely varied. I understand it is not possible for the Minister to clarify each and every transaction in this House. The Commissioner of Stamp Duties should therefore issue clear guidelines from time to time on the provisions of the Act. These measures are crucial in ensuring that our tax laws are transparent and could be interpreted with a sufficient degree of certainty by foreigners and locals alike.”
“" Does this mean that the Commissioner of Stamp Duties will scrutinise any particular intermediate step and rule that that particular step has been put in place for the purpose of reducing stamp duty? In the sale of property example above, although the bona fide commercial reason for the whole arrangement is the transfer of the property, the main purpose of choosing a sale of the shares of the property-owning company, and not the property itself, may very well be to reduce the amount of stamp duty payable. In another example, for financing of a project development, the bank will usually take as security, among other things, an assignment of the building contract, an assignment of the sale proceeds, as well as a mortgage over the land. If the legal assignment were stamped as a primary security, it would attract ad valorem duty at the rate of 3% of the contract value. It is thus common for banks to take the mortgage as the principal security and nominate the others as secondary security. Stamp duty on mortgages is capped at $500, and the other documents will attract nominal stamp duty of $10 each. There are many more examples of stamp duty planning schemes which are widely used in commerce and by individuals to minimise the amount of stamp duty payable, as allowed by law. The business community is rightly anxious about the new provision because it is vague and silent about these tried and tested schemes. Could the Minister clarify the scope of the new section 33A and also place on record what would not be within its ambit?”
“Tax mitigation is admittedly one of the more important factors in deciding which way to carry out the transactions. The proposed section 33A raises concerns as to how the Comptroller or the Commissioner will view such commercial structures, some of which have become a matter of common practice today. For example, an outright sale of a property by way of conveyance will attract stamp duty ad valorem at the rate of approximately 3% of the consideration. So if the purchase consideration is $1 million, the stamp duty chargeable is about $30,000. However, if the property is owned by a special purpose investment holding company, the shareholders can sell all the shares of the company to the purchaser instead who will then obtain effective ownership and control of the property. The sale of the shares will attract stamp duty at a substantially lower rate of 0.2% of the value of the shares. So if the property asset is valued at $1 million, but the company has bank borrowings and other liabilities of $500,000, the total net value of the shares will be $500,000, and the stamp duty chargeable on the transfer of all the shares is only $1,000. Using this example, could the Minister clarify whether the exception in the new section 33A(3)(b) might help? This subsection states that section 33A "shall not apply to any arrangement carried out for bona fide commercial reasons and had not as one of its main purpose the avoidance or reduction of duty". But in subsection (2), "arrangement" means "any scheme, trust, grant, covenant, agreement, disposition, transaction and includes all steps by which it is carried into effect.”
“Over and over again, the courts have said there is nothing sinister in so arranging one's affairs so as to keep taxes as low as possible, because nobody owes any public duty to pay more than the law demands. These principles apply even more so to stamp duties as they are a tax on documents and not the underlying transactions per se. Besides encroaching on the above established principles, the new provision also seems to me to be particularly antecedent to the spirit of encouraging greater freedom and creativity in the financial sector in Singapore. Recently, it has been recognised that there needs to be a radical change in mindset towards financial regulation in Singapore. The new approach will be central to the long term development of Singapore into a world-class financial hub. It is hoped that the change would remove the self-imposed shackles on the financial institutions here and lead to more new and creatively structured financial products. In view of this change in approach, it seems to me to be taking a step backwards to give the Commissioner such wide powers in an area that impacts on so much of commerce in Singapore. Sir, in the short and medium terms also, we must not forget that we are still in a critical period of recovering from the economic crisis of the last two years. Already there are observations that the momentum of corporate restructuring has slowed and companies are becoming less committed to reform as the short term outlook becomes better. By itself, restructuring involves many difficult decisions, and companies should not be burdened with the additional uncertainty in this area of stamp duty planning. Sir, in achieving a particular commercial result, there may be many different ways of structuring the transactions leading to it.”
“Mr Speaker, Sir, I rise in support of the Bill. Before commenting on the provisions of the Bill, I would like to declare my interest as a lawyer in private practice where I advise clients on commercial transactions and corporate restructuring. Sir, my comments relate to clause 15 of the Bill which proposes to insert a new section 33A. The first thing that struck me about the proposed new section is its similarity to the anti-avoidance provisions contained in section 33 of the Income Tax Act. Section 33A purports to give the Commissioner of Stamp Duties the same wide discretionary powers given to the Comptroller of Income Tax to disregard and/or vary transactions entered into by the taxpayer and to make such adjustments and to impose additional tax, if necessary. This raises a number of concerns with members of the business community, and I would like to raise these concerns in this House. Sir, as income tax and stamp duties affect the financial position of the taxpayer, tax and stamp duty planning has become an integral part of modern day commerce and finance, where products and transactions are becoming ever more complex and sophisticated. It seems to me that the oft-cited dictum of Lord Tomlin in the English House of Lords case of IRC vs. Duke of Westminster (1936) has even greater resonance when applied in the context of anti-avoidance rules in stamp duty. In that case, the judge said that "Every man is entitled if he can to order his affairs so that the tax attaching under the appropriate Acts is less than it otherwise would be. If he succeeds in ordering them so as to secure that result, then, however unappreciative the Commissioner of Inland Revenue or his fellow taxpayers may be of his ingenuity, he cannot be compelled to pay an increased tax".”
“In regard to the quota size, the undesirable effects of a small quota in the lower category can be mitigated by allowing COEs from the two bigger car categories to be used to register cars from the lower category but, if the premium for the lower category is higher, then an additional levy equal to the positive difference between the quota premium paid for the COE and the corresponding quota premium for the lower category should be paid. On the third issue of the bidding mechanism, while a pay-as-you-bid system may lead to "winner's curse", there is a danger that an open bidding system will lead to the "don't-want-to-just-miss-it" syndrome, where bidders increase their bids by a bit more so as not to miss it. If bidders are aware of the current lower strike price, they will put in a slightly higher bid price, thereby driving up the strike price. On the other hand, under the present closed system, bidders have shown that they are rational and have placed bids at a level that is appropriate under prevailing market conditions. If he is not successful, the bidder has one whole month to cool down and rethink his next bid which may or may not be higher as market conditions could have changed significantly in the meantime. Sir, in conclusion, I would say that the man-in-the-street is suspicious that the underlying purpose of the review and any consequential changes to the Vehicle Quota System is to increase Government revenue from COEs. This perception, if untrue, must be corrected. If the objective of the review is to fine-tune the system to prevent freak results, like the $50 COE, I hope we will only tinker with that aspect and not disturb the rest. Why burn the house down to kill the rat?”
“Perhaps the Government should study the feasibility of allowing COEs from any category to be used to register cars in another category subject to payment of the appropriate transfer fees and an additional levy. The additional levy should be equal to the positive difference between the quota premium paid for the COE and the corresponding quota premium for the category under which the car is eventually registered. Second, quota categories. While I agree with the Committee that some segmentation of the total COE quota is necessary, I do not agree with its recommendation to merge the current Categories 1 and 2 together. Categories 3 and 4 could be merged into one. But for social equity reasons, I believe the current Category 1 should be retained. This category caters to those who would like to buy an inexpensive car or a small car. This gives the low-income group the opportunity to own a car. Furthermore, there is a trend towards smaller cars especially for getting from place to place in an urban environment like Singapore. To group them into one category would mean that a buyer of a 800 cc sub-compact has to compete and bid in the same category as buyers of four-door saloons. I think the gap is simply too wide. I believe Option 3 as presented in the Committee's Report, where there would be three categories comprising lower, middle and upper, would result in a more equitable distribution of COEs.”
“A recent example is the prevailing quota premium which fell significantly as a result of the change in computation from a 12-month to a 3-month moving average. The converse is when we have not bought the item yet and the price shoots up because of a change in policy. Sir, I would now like to touch on three of the Committee's observations which I have reservations about. They are (1) the distribution of COEs among the different categories, (2) merger of Categories 1 and 2, and (3) the proposed open tender system. Regarding the first issue, in principle, I agree that vehicle quota should be distributed in such a way as to better reflect the latest preference of motorists. There must be a built-in mechanism to let the system respond in a timely manner to market trends and consumer demand. If the system is rigid and based on quotas fixed by the authorities from a top-down approach, drastic corrective action will have to be taken from time to time, like the one-time adjustment made in May 1994 when unused motorcycle COEs were redistributed to other categories. This is undesirable. However, I do not agree with the Committee's suggestion for two half-yearly quotas and the distribution among the categories to be based on the proportion of vehicles registered in the respective categories in the preceding six-month period. How can the quota in any category change substantially over time when the number of new cars registered in that category has been fixed in the first place by the quota? For example, even if there is the demand for 5,000 Category 1 cars, but if the quota is only 2,000, then only 2,000 Category 1 cars can be registered subject only to those registered using Open Category COEs and perhaps those COEs from higher categories if this option is allowed in the future.”
“Sir, I read with great interest the Report of the Vehicle Quota System Review Committee and can appreciate the difficulties faced by the Committee as it tried to grapple with and balance the various conflicting issues about social equity, car categories, quota size and the myriad of factors that make the subject of vehicle ownership in Singapore such a talked-about and emotive one. The Vehicle Quota System was introduced 10 years ago. For all its flaws and inadequacies, I believe the system is working reasonably well. Prices of COE have stabilised at a level that is appropriate in the light of the present state of our economy. This shows that buyers are rational and notwithstanding the initial fears, prices of COEs had not shot through the roof except for a brief period in the midst of a booming economy, rife speculation and material excesses. Over the last 12 months, prices have been moving within a band of between $20,000 and $40,000. There was resistance when prices hit the high 30s and when prices came down to the low 20s, buyers entered the market. The Vehicle Quota System is maturing. We should give it some more time and let it stabilise further. At this stage, we should not make drastic changes merely for the change alone. As far as possible, we should not introduce any more uncertainties into the system. Uncertainties leading to wide fluctuations in prices are detrimental to dealers, owners, aspiring car buyers and the financial institutions which finance them. It can also be a source of discontent. How many of us have experienced situations where after we have bought an item, the price of that item dropped the very next month because of some changes in Government policy.”
“Sir, I would like to ask the Minister whether the National Computer Board or the Productivity and Standards Board could spearhead the establishment of some basic standards in e-commerce practices. There are some critical aspects of an e-commerce transaction which are often difficult or impossible for the web buyer to know, just by assessing what the vendor has presented on the web. Examples of these are whether an order has been properly transmitted and received, whether corrections can be made to the information that has been sent out, and whether electronic payment has been cleared. If, however, there is some form of certification analogous to the ISO certifications on standards and quality issued by a neutral body, this would help web surfing consumers to find reliable vendors on-line and to help reliable businesses identify themselves as such. Sir, even hawker and food stalls have a grading system established by the Ministry of the Environment to assess their hygiene standards. The grading system does not purport to judge the quality of the food sold, but rather the hygiene standards of individual stalls. It is easily recognisable and provides real impetus for hawkers to improve the hygiene standards of their stalls. I would like to propose that businesses on the web, which meet the basic minimum requirements, be awarded a certification seal which they can display on their web page. The seal will give an indication to the web shoppers of the type and quality of service to expect. This certification body can conduct periodical review of the technical practices of these businesses and can use exposure through on-line and off-line publications, seal withdrawal or Government referrals to impose real consequences on non-compliance with the standards established.”
“Our main exhibition venues are now at the Singapore Expo Centre in Changi, Suntec Convention Centre and the World Trade Centre. But for a truly mega event, any one of these venues, by itself, might not be sufficient and if the event has to be divided into different venues, it will cause much inconvenience and unhappiness for both exhibitors and visitors. For example, I visited last year's Comdex Fall at Las Vegas. The Singapore Pavilion was situated in the Sans Expo Centre, while Microsoft, Creative and other major attractions were at the main Las Vegas Convention Centre. People had to travel between the two venues by shuttle bus. Compare this to Milan which is able to host its annual furniture and lightings fair, spread over 26 halls, all in one cluster. Some of these halls are bigger than our Suntec Convention Centre. I hope that the Minister would consider this in the further development of our exhibition facilities.”
“I am very glad to see that much thinking and effort have been put in to develop the exhibition industry in Singapore. It is one of the areas in which we have good potential to grow into a regional and global hub. The tax incentives to be given to exhibition organisers who host their exhibitions in Singapore as well as the many initiatives by the Trade Development Board should give the exhibition industry a boost. We have the attraction of being relatively inexpensive compared to other international exhibition centres in Asia like Tokyo and Hong Kong, and we should continue to maintain our comparative cost advantage so that most organisers will choose to come to Singapore to put up exhibitions on a bigger scale. At the same time, we should bear in mind that being cost-competitive alone is not enough to elevate Singapore to a regional or global hub. Top international convention centres built up their reputation over a period of time by hosting high profile exhibitions and events. During such events, plans for the whole year are set and who's who in the industry congregate. It is a must on the calendar and for leading firms and people in that particular industry, it is a once-a-year opportunity to widen one's network, in a way not possible at other events and times. Therefore, in addition to getting the quantity in numbers, we must also strive to secure one or two mega exhibitions or events to be held here annually. Indeed, even aspire to host exhibitions to the scale and prestige of the annual events like Comdex Fall in Las Vegas and even the World Economic Forum like the one in Davos. To cater for this mega world-class events, we have to plan our infrastructure carefully.”
“Thirdly, the buzz can also be carried on off-line through newsletters and publications which provide regular updates on the latest developments in the local IT industry. Fourthly, there is no substitute for physical interaction and our technopreneurs should not underestimate the importance of networking through social interaction among themselves. As many business people in all industries will testify, many valuable information is exchanged through the grapevine. In Silicon Valley, it was reported that the sharing of information is so spontaneous that two strangers, waiting in line to pay for their food in a cafeteria, can start chatting and form an alliance or joint venture even before getting to the cashier. In this area, organisations like the Singapore Science Park can play an important role by providing facilities and events to promote more social interaction for not only their tenants but non-tenants as well. This will also make our foreign researchers feel more at home while working here in Singapore. Sir, I look forward to the day when we have a lively and buzzing R&D community. Sir, with your permission, may I move on to the next issue about the hosting of major exhibitions and conferences in Singapore?”
“First, in having an IT or Internet resource which local innovators, R&D personnel, IT entrepreneurs can tap into to source for information particular to their industry, for example, a directory of IT resources and businesses and on-line yellow pages of sorts, with a sufficiently large database to provide a useful and efficient means to find out who are doing what. It will also serve as a one-stop website where foreigners can visit to look for Singapore products and research capabilities. We already have the Singapore InfoNet, the national website, which tells local and foreigners alike about the broad range of things happening in Singapore. How about setting up one specifically targetted for the IT industry? Thereon, there will be no reasons for researchers when they meet somebody else to say, "I did not know that you were developing this or we could have done something together." Secondly, on-line interaction provides a means of exchange within the IT R&D circle. Even if the researchers are physically cooped up in their cubicles 20 hours a day, they can still reach out to the rest of the world on-line. However, there seems to be very few R&D discussion groups formed by local researchers and IT business people. Although there are international discussion groups, I think if our local researchers can get together for more interaction with one another on particular issues and developments relating to the local R&D scene, many more opportunities can be created among local companies to collaborate and combine complementary R&D activities and different strengths to create better products. Perhaps, the National Computer Board can host a website to encourage this.”
“Sir, one of our key long-term focuses is developing a knowledge-based economy with an emphasis on technology-related sectors. This requires us to compete in the global arena which are seen and will, in the foreseeable future, see the most intense and rapid changes. It means competing against other economies in various parts of the world, all intent on establishing a foothold in the global technology market. The heartbeat of technological innovation is of course research and development (R&D). And all around the world, R&D is moving at a break-neck pace. At this stage in the development of our IT industry, I feel that more should be done to get our researchers together to discuss the work they are doing, to share information and to create that buzz which our Senior Minister mentioned. Of course, confidential information cannot be divulged. But I feel that our technopreneurs may be too conservative and afraid that someone would steal their ideas if these are disclosed. From time to time, I have been referred to the web pages of some US start-up companies and was amazed by the amount of information they contain on the technology they are developing. These companies must find value in doing this, either in looking for synergetic cooperation with other companies, getting other researchers to join them to further develop the technology, raising the profile of the company, attracting venture capital funds, or simply educating the R&D community about the work they are doing. For us, I think such a buzz may be created and promoted in several different ways.”
“In the present market environment, if left to the natural course of the economic cycle and pure market forces alone, there will be a blood-bath and a lot of suffering and lost opportunities before the survivors eventually emerge. More may be out of business resulting in a greater loss of jobs. Everyone will end up the loser, either dead, half-dead or dying. Even hitherto strong companies, after fighting among themselves, will be depleted of vital energy. They will have less strength to face foreign competition and future competition. The Government should therefore facilitate the restructuring and consolidation in some of these industries, not by force, but by good sense accompanied by the strong persuasive powers of grants and incentives. Bosses, being bosses, will be reluctant to be taken over to merge or to form joint ventures. They must be encouraged to cooperate with others for shared resources, for synergy and for economies of scale. The worldwide trend is towards bigger, leaner and stronger companies to compete effectively, if not globally, then at least regionally. Only then can we have the critical strength to compete successfully in the face of changing classic business and economic paradigms. There are lots of opportunities out there for grabs. This is an opportune time to capitalise on our strengths and build world-class multi-nationals. Other small countries have succeeded. The Swiss control major international pharmaceutical companies. The Netherlands has oil giant Shell and Philips; Finland has Nokia; Sweden, Ericsson. We can build our own true multi-nationals. Sir, I support the financial policy presented by the Minister.”
“When I was pursuing my Physics undergraduate degree in the United Kingdom about 20 years ago, my professor told me that although the British were good scientists and researchers, it was the Americans who were better at realising innovations for commercial applications. Sir, great innovations do not sell by themselves. In addition to financing to promote innovation, we must also fund and assist the commercial exploitation of these innovations and develop them into great products. My fourth point on businesses relates to some of our traditional industries. Although I am advocating more assistance to be given to entrepreneurs to start up more ventures in technological development, I believe a different approach should be taken to restructure and consolidate some of our low-tech businesses. One common complaint among businessmen is that everybody is undercutting and lowering prices even to the extent of losing money on specific projects just to keep its workers occupied and stay in business. The question is how long can this go on. Besides, undercutting is not necessarily good for the consumers. It does not mean that cheaper means better value for money; undercutting of prices may bring about a decline in quality standards and a greater risk of default and non-performance. In many sectors, for example, construction and retail, the local turf is over-crowded and over-saturated. There are simply too many local players fighting among themselves for a piece of the local market. Malaysia, Indonesia and Thailand, the traditional overseas markets for these small and medium enterprises have been badly affected and these companies have no choice but to beat a hasty retreat to Singapore.”
“However, my fear is that while the objectives of these programmes are noble, their success depends, firstly, on the people who administer these funds and, secondly, on the other efforts which are required to bring the product to the market. Whether an investment is made or a grant is approved depends on the people who evaluate the project and administer the programme. They should not simply focus on the product under development and pass judgment on whether it will be a success in the future or not. Such a top-down, inflexible and highly prescriptive approach is inappropriate and potentially harmful. In high-tech, it is not merely investing in the technology per se, but more importantly, in the people behind the technology because even if the present intention does not take off and fails, the true entrepreneur will pick himself up, and try again and again until he succeeds. The administrators of the programme must therefore have the ability to identify entrepreneurs who have ideas, creativity, imagination, integrity and the determination and drive to make it big. In a sense, the people who administer these funds must themselves possess some of these attributes. Alternatively, these funds should be used to seed a broad range of budding start-up companies and hope that some of them will succeed. Thirdly, the success of a product does not depend merely on how good it is but also on its promotion, marketing and distribution. The 3M Post-it Notes, first conceived by Art Fry, did not become an instant success but took many years of hard work before it gained popular acceptance.”
“One area of assistance for businesses which I hope the Minister would consider is allowing losses incurred by one subsidiary of the group to be offset against profits made by another subsidiary. Following the Government's initiative, many companies have diversified into other businesses and expanded into other countries. Some of these business units are still profitable while others are loss making. At present, our tax regulations treat these subsidiaries within the same group as separate taxable entities and losses in one cannot be used to reduce the profits in another. The corporate tax rate of 26% on the profitable subsidiaries is a heavy burden on the whole group, as these subsidiaries will have less ability and resources to help the other non-profitable companies within the same group. This would increase the pressure to shut down unprofitable operations even though they have good long-term prospects. Could the Minister consider allowing companies to file consolidated returns as is done in the UK and the United States? Even a temporary relief would be most helpful to these companies. Secondly, I would like to touch on our high-tech ventures. In the arena of new technological developments, no one can predict with certainty how things will turn out in future and which technology will succeed. Out of the many technopreneurs "born" every day, only some of them will hit the big time and be winners. We should therefore promote even more entrepreneurs to start up companies and the Government should exercise more flexibility in assisting and incentivising them. In this area, the Government has established a number of technology and venture funds, the latest initiative being the $100 million fund for Promising Local Enterprises.”
“Very often, I find that if the resident is a female, she would ask for a stall, not just any stall but a tuckshop stall in a school because there is a captive market, and not any tuckshop stall but a drinks stall because the margins are higher and there is less work and skills required in preparing drinks. If the resident is male, he would often times ask for a taxi driver's licence because if he already has a driver's licence to drive a private car, it is not difficult to drive a taxi for a living. Sir, we cannot be a nation of tuckshop operators or taxi drivers. Our workers must be encouraged not to take the easy and short-sighted solution to their immediate financial problems, but to invest time and energy to upgrade and acquire valuable new skills that would stand them in good stead in the economy of the future. I believe we need to find out the reasons why some people are reluctant to go for retraining and skills upgrading, and see if steps can be taken to address these problems specifically. Sir, I would now like to turn to the concerns of businesses. Notwithstanding the introduction of the cost reduction package and the benefits arising from the cost cutting measures, employers are suffering and saddled with concerns about the survival of their businesses. If their business revenues continue to decline, cutting expenses alone will not be able to turn it around. I therefore welcome the various announcements to help businesses to seek out new markets and expand, examples of which are the Local Enterprise Financing Scheme and recently, the Economic Development Board's $100 million Promising Local Enterprises Investment Fund. Sir, I would like to raise three points on which we can or should do for local businesses.”
“Sir, I believe the principle of pegging the HDB rate to the CPF interest rate is fundamentally sound, but the determination of the interest rate can be further fine-tuned. Many of us will remember that a few months ago, millions if not billions of dollars were withdrawn by CPF account holders to take advantage of the higher deposit rates offered by commercial banks. Now, of course, there is a reverse flow of funds back to the CPF to earn the higher interest on CPF deposits. What this means is that these CPF depositors are benefiting at the expense of HDB home-owners who have mortgage loans. This situation is undesirable and I hope the Minister would consider measures to address this problem. Mr Speaker, Sir, another area which affects the finances of the individual and should be reviewed to lessen the individual's financial burden is stored value cards. Presently, there are many stored value cards issued by a multitude of agencies for various purposes - MRT fare card for daily transport, cash card for ERP payments, coupons for parking, phone cards, etc. This requires a person to put aside a fairly large sum of money to be stored in the different cards. A few dollars here and there add up to a lot of money for the average family. And if a card is lost, he has lost cash. I would like to ask whether some form of coordinated national plan could be implemented to streamline the different card systems and reduce the number of cards which the consumer needs to carry. Sir, my third point on the individual relates to the need to take time and effort to acquire the requisite skills so as to remain relevant in our fast-changing world. Residents have approached me during my meet-the-people sessions to ask for assistance on employment opportunities.”
“They appreciate the increase in the personal tax rebate to 10%, and the rebates and grants for service and conservancy charges and utilities. They are also conscious of the external influences on our economic well-being, and understand the impact the economic slowdown and the previously-announced cost-cutting measures have on Government revenues. Sir, what else can or should we do for the individual? I would like to offer my views on three issues. First, HDB's subsidised loan rates. This is on the amount of interest HDB home-owners are paying on their HDB subsidised loans. I mentioned earlier that interest rates and therefore debt servicing costs are substantially lower now, even when compared to just a few months ago. Most home-owners are happy as the lower debt servicing cost has somewhat softened the impact of the reduction in their CPF contribution, ie, most home-owners, except the vast majority of HDB home-owners who have HDB-subsidised loans. According to a 5th March article in the Straits Times, they are currently paying up to $90 more than under the non-subsidised rates for every $100,000 of loan. Various suggestions have been offered on how the HDB can solve this problem. But I think the issue goes further than the HDB. It is a financial issue relating to how interest for Central Provident Fund deposits is calculated. The funds needed for HDB subsidised loans are derived from CPF deposits with a margin of 0.1 percentage point. So, the HDB loan rates have to be pegged to the CPF deposit interest rate; otherwise there would be a mismatch. And any revision to how the HDB subsidised loan interest rate is calculated should originate from revisions to the determination of the CPF interest rate.”
“Sir, in addition to the factors cited by the Minister in his Budget Statement, another concern is China's economic situation. I understand that exports from China are slowing. There is massive unemployment in the country, mainly as a result of structural reforms to the state economy. The budget deficit is soaring. There are concerns about deflation as consumers become more careful and tighten their purse strings. Some fear a devaluation of the renminbi leading to yet another round of competitive devaluations by other developing countries. Many investors are jittery over this issue and have held back their investment commitments in China or have reacted negatively on any hint of a devaluation. Although Premier Zhu Rongji has again reaffirmed China's commitment not to devalue and few are predicting instability in the renminbi exchange rate in the course of this year, I believe we cannot ignore the developments in China. Could the Minister give us his assessment of the Chinese situation and the likely impact of the developments there on Singapore? Sir, against this uncertain backdrop, I fully support the need to focus on the long-term development of our infrastructure and capabilities, while at the same time render some relief and assistance to those who have been severely affected by this crisis. Sir, this year's Budget has been described as one with no-frills and even dull. From post-Budget feedback, I found the perennial calls for more goodies to be quite muted this time. This is quite different from last year when a $2.7 billion surplus was first announced. There were accusations that the Government was not doing enough. This year, people are more realistic in the face of a $5.1 billion budget deficit.”
“Mr Speaker, Sir, I rise to speak in support of the Budget Statement presented by the Minister for Finance. Last year this time, when we debated the 1998 Budget, the economic climate was very uncertain. Unfortunately, since then, many momentous and sweeping events have occurred all around the world and especially in some countries in this region. These events had affected us adversely and will continue to have a major bearing on how things will develop in the near and medium term. Our economic outlook is therefore still not any clearer. But the situation is certainly better than even six months ago. Many are saying that the worst may be over. I sense that there are quite a number of Singaporeans in certain quarters who are cautiously and quietly happy. They are still drawing a decent income, in a secure job, in a stable or growing industry with little risk of retrenchment. Interest rates and hence debt servicing costs are low; property prices and car prices are substantially lower than a couple of years back; the stock market has recovered somewhat from its lowest; and airfares are at an affordable level. So, for those who are still employed and getting paid a decent and steady income, things are beginning to look brighter again. However, before we get carried away and celebrate, we must bear in mind Minister Richard Hu's reminder in his Budget Statement that there are still many uncertainties in our external environment - volatility in the global financial market, the health of the US economy, the prospects of an economic recovery in Japan and the socio-political developments in this region. Any one of these can unfold very suddenly and unexpectedly with severe repercussions for those who are not prepared.”
“Our Ministry of National Development told me that members of the public had in fact raised their concerns that this aspect seems to have been neglected even while Singapore strives to become a more compassionate and caring society. Sir, in view of the significant benefits that may be derived from the use of food waste disposals, I wonder why their use has been disallowed in Singapore and under this Bill may not be permitted by virtue of clause 20. In other countries the main concern has been whether the use of such devices could adversely affect the public sewerage systems, especially the older parts of them which may not be able to handle the increased waste load. However, our Ministry of the Environment is planning to spend billions of dollars on various programmes, such as the Deep Tunnel Sewerage System to upgrade our sewerage collection and treatment infrastructure which, I believe, should result in the capability to handle any additional flow of pulverized food waste from the use of disposals. I would therefore like to ask whether the Minister could consider allowing the use of food waste disposals in Singapore.”
“Mr Speaker, Sir, I rise in support of the Bill. However, I would like to raise one issue regarding the installation and use of food waste disposals which at present are not permitted in Singapore. Food waste disposals may be quite familiar to those who have lived abroad. It is a small electro-mechanical appliance that is installed under the kitchen sink and works by pounding food waste into a pulp and then flushing it harmlessly down the drain line into the sewerage system. The food waste is thus pulverized into tiny particles and is often described by manufacturers as having been liquefied. In countries, like the USA, Australia and the UK, such disposals have been in use in households for many years and homemakers find them to be a fast and convenient method of getting rid of messy food wastes. Sir, I believe the main advantage of using such an appliance is that food waste can be disposed of neatly and quickly, reducing or eliminating the problem of foul smelling garbage which attracts flies, stray animals, rodents and other pests. From waste management point of view, it reduces the amount of solid waste that has to be collected and transported to landfills or incineration. For example, data from the Plumbing Foundation, City of New York, shows that about 45% of all US households use disposals and more than 100 cities and towns in the USA actually require the installation and use to help reduce the production of solid waste. This should be our aim also as an environmentally conscious and ecologically responsible society. Furthermore, it can lighten the workload of general cleaning workers in the housing estates and bring about a significant improvement in their working conditions.”
“Further, it may be difficult for the prosecutor to prove that the mobile telephone was actually in use at the material time. Can the records of the mobile telephone operator be produced in court as evidence? But what if the operator's records show that the phone was not in use at the alleged time of the offence as recorded by the traffic policeman's watch? Perhaps, this section should be worded to allow our policemen some judgment in apprehending motorists who appear to be or are in the process of using the mobile phone while the vehicle is in motion. Sir, lastly I would like to express my sadness when what should have been ordinary road courtesy and manners find its way into our legislation. I refer to road rage or road bully and clause 5 of this Bill which seeks to enhance the penalty and empower the Court to disqualify a person if he has been convicted of any specified offence which arises from or which is connected with a dispute between him and another person over the use of the road or public place. So, a dispute over a parking lot could result in the aggressor being banned from driving. I feel one thing that has to be emphasised most strongly, even as Singapore aspires towards having a world-class transportation system, is the importance of inculcating good road habits in all road users here. Besides having the appropriate laws to regulate the use of our roads, we should also stress the importance of being courteous and considerate to our fellow road users. There is no point having the most efficient and impressive transportation system if it is not also safe and pleasant to use.”