Ong Teng Koon
Singapore
“As the old adage says, "A sunken ship watches a thousand boats pass by it, a withered tree sees ten thousand saplings blossom beyond it. (As the old continue to wither away, the new will blossom and lead the way.)" Sir, we will be able to find a new way of polling that will adapt to the new information age.”
“Mr Chairman, the BuildSG Transformation Fund has catalysed many productivity innovation projects last year. In the construction sector, there was a focus on offsite prefabrication to improve productivity.”
“Mr Chairman. I wish to thank the Minister, on behalf of the residents of Blocks 115 and 119 of Marsiling Rise for his kind and compassionate consideration of the situation with the introduction of the Lift Access Grant.”
“But I feel that financial prudence should be about not overspending above a projected cost, a certain limit. It cannot be, but HDB has been telling me this and it is not about putting an arbitrary limit on the costs without taking into account our residents' well-being.”
“Mr Chairman, with the on-going COVID-19 outbreak, we have seen destabilising falsehoods that have hurt our nation. These range from the false closure of Woodlands MRT station; seven countries banning travel to Singapore; to an online falsehood regarding the death of a man in Singapore from COVID-19, when no such death had occurred.”
“Trade associations can also help to mobilise the workers. Our emphasis on lifelong learning will provide a skilled workforce of craftsmen and domain experts. Perhaps what we really need is for the Government to invest in a Mittelstand fund or to start a Mittelstand development bank to catalyse the entire SME ecosystem.”
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“The Energy Market Authority (EMA) has been tasked to regulate the efficient trading and pricing of wholesale electricity and to regulate the entire power sector. Electricity trading is a relatively new market in many jurisdictions. Markets require depth and liquidity and a critical mass of participants for its efficient function. These participants must stand ready to be able to buy and sell at market prices. To do this, they must be knowledgeable in the fundamentals of the LNG and electricity markets, be able to risk manage well and be alert and nimble to the wider energy and financial markets which are volatile in nature. Can the Government assure the House that Singapore has sufficient manpower with the requisite expertise to perform such roles? How about other roles that are needed for the efficient functioning for the power sector? Can the Government enlighten the House what other types of expertise are needed and if Singapore has sufficient manpower to meet this need? Tourism”
“Piped natural gas or PNG is currently imported into Singapore from Malaysia and Indonesia via four offshore pipelines. PNG contracts with Indonesia are slated to end in 2025. Contracts with Malaysia will end at some stage. It therefore becomes vital that Singapore has a new source of sustainable natural gas supply that is sourced globally. It is not the price of natural gas that concerns me. Availability is the key here. We must have the ability to buy and store and use natural gas at whatever the price if we are in a situation where PNG is denied to us. I cannot imagine a modern city like Singapore being devoid of electricity. What are Singaporeans going to do in such a situation? It is too scary to even imagine. Liquefied Natural Gas or LNG fulfils this important role of energy security. The Government, in its wisdom, has invested heavily in making sure that we have the capability to receive LNG. The Singapore LNG Terminal began operations in May 2013 with two storage Page: 137 tanks and an initial throughput capacity of 3.5 million tonnes per annum. A third tank and additional regasification facilities were completed in January 2014, increasing the throughput capacity of the terminal to six million tonnes per annum. I am very relieved to note that we are well on our way to making sure Singapore will not be left in a literal state of darkness in the future. To this end, I would like to ask the progress of the Government's plans to expand the Singapore LNG infrastructure. Mr Chairman, part of the masterplan to achieve energy security is the commercialisation of the power generation industry and the retail electricity industry, so that market-based pricing and practices can bring about greater efficiency.”
“The public's perception is that many of the Page: 136 researchers within our universities and research institutes are foreigners. Is this perception justified or is it untrue? To this end, I would like to ask the Minister whether we now have more Singaporeans working in R&D careers and how does R&D investments create career opportunities for Singaporeans? Secondly, making research an exciting and fulfilling career choice for Singaporeans is important for the research landscape. It is also important to fulfil the aspirations of young Singaporeans who enter the workforce to have a wider range of options in order to meet their interests. The beauty of R&D is that it has the potential to create entirely new clusters of supporting industries and many high-value jobs around it. My question is: what other career opportunities can Singaporeans look forward to in the field of R&D? What can the Government do to ensure a career in R&D offers a wide range of opportunities for Singaporeans? The considerations for making strategic investments in R&D cannot simply be viewed from the typical commercial lenses of returns on investment and short-term commercial viability. I would argue that investment in R&D fulfils a strategic imperative and needs Government support to nurture in order to bring Singapore into the forefront of a knowledge-based economy. New Developments in the Energy Sector My second cut. Mr Chairman, energy security is a strategic imperative and a priority for Singapore. Natural gas is currently the cleanest form of energy available. The Government has promoted the use of natural gas and more than 80% of domestic electricity generation is done using that.”
“Chairman, Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR) is a state-of-the-art technology used for gene editing that has the potential to alter the DNA in human beings. MIT Technology Review called it the biggest biotech discovery of the century. Imagine babies with rare genetic conditions and birth defects that are incurable, like urea cycle disorders, Down Syndrome or cerebral palsy, or adults with cancerous mutations or even HIV. This gene editing technology holds the promise, and often the only hope, for parents and patients who can only look forward to a lifetime of pain and suffering for their babies and themselves. Harvard, MIT and a host of other universities and many pharmaceutical companies and biotechnology startups staffed with world-renowned researchers are pouring resources into this research frontier. Some have estimated a gene editing industry worth trillions in commercial impact and hundreds of thousands of high-value job creations. This is one example of how investments in research and development (R&D) can contribute to Singapore. As we mature into a knowledge-based economy, there needs to be sustained investment in R&D and a continued supply of high-value researchers to meet the growing demand. There are many areas of R&D that needs Government support: basic research, applied research, experimental development, in fields as diverse as electronics, chemicals, biomedical sciences, precision and transport engineering, Internet technology, to name but a few. The Government has invested $16 billion in research, innovation and enterprise in Singapore from 2011 to 2015. On top of bringing benefits to the economy, it is important for this investment to benefit Singaporeans.”
“The restructured ACCORD, with its three Councils, is aimed at strengthening engagement with stakeholders from businesses, educational institutions, families and communities on the importance of defence and the need for NS. Can MINDEF provide an update on the restructured ACCORD and the progress made over the past year? In particular, can MINDEF provide an update on the work of the various Councils under the newly restructured ACCORD? How are these Councils intending to reach out to stakeholders, such as employers, schools and families? Page: 119 Commitment to Defence”
“Sir, through an Act of Parliament in 1967, Singapore's Defence Force, consisting of conscripts, was born and organised not without difficulty. The National Service Act requires that all able-bodied and healthy men at the age of 18 are to undergo two years of military life. There was initial resistance from the community. Understandably so, because it essentially meant taking male children away from parents for two years and subjecting them to the unknown perils of military life. This illustrates the importance of support from the community for the country to organise a standing army. The need for community support and understanding becomes even more critical when our men graduate from full-time National Service training to reservist training. Calling on them and drawing them away from civilian life means disrupting their professional careers and affecting their employers' wherewithal. The Advisory Council on Community Relations in Defence (ACCORD) was established by MINDEF in 1984 as a channel for the community to provide feedback on issues concerning Singapore's defence. Members of ACCORD have played a significant part in building public acceptance and support for Singapore's security and defence needs over the years. Although ACCORD has been a useful channel of feedback for MINDEF and on the SAF's policies and programmes, Second Minister for Defence Mr Chan's announcement at COS 2014 on plans to restructure ACCORD to strengthen community support for NS was both timely and a positive step forward, even as support for NS remains high. Commitment to defence and support for NS from the larger Singaporean community have to be continually reinforced and strengthened, especially in times of peace. It would be too late to only do so in times of crisis.”
“One such important initiative is the annual Shangri-La Dialogue. The 2014 Shanghai-La Dialogue gave an illuminating insight into the state of US-China-Japan relations. Important speeches were made by Mr Hagel, Mr Abe and General Wang during the dialogues. In light of Singapore's status as a trading and financial hub, the relations between and amongst major powers in the region would have an impact on Singapore's continued growth and prosperity. In this context, what is MFA's assessment of the state of major power relations and the effects on Singapore and the region?”
“Madam, the US and China are the world's two largest economies. They are also very important partners for Singapore. The relationship between Singapore and the US is a close, broad-based and long-standing one. Singapore continues to enjoy robust economic, defence as well as political ties with the US. For instance, the US is our largest foreign direct investor. The US-Singapore Free Trade Agreement (FTA) was also the first FTA that the US signed with any Asian country. Singapore also enjoys strong and substantive relations with China, ranging from economic to people-to-people ties. For instance, China is Singapore's largest trading partner. We have established two government-to-government projects in China – the Suzhou Industrial Park and the Tianjin Eco-City. The year 2015 is also significant for bilateral ties – it is the 25th anniversary of diplomatic relations between Singapore and China. In this context, what is MFA's assessment of the state of Singapore's relations with China and the US respectively? How can Singapore grow these two relationships further? The US-China bilateral relationship is often regarded as the most important bilateral relationship in the world. Even slight changes in the balance of this relationship will have deeper ramifications for us. Singapore, as a small country, seeks to maintain its relevance to Page: 70 both powers. But while MFA has always stressed Singapore's neutrality, it is not always possible to be perceived as neutral. What can MFA do to reinforce the sense of neutrality of Singapore's position? At this juncture, I would like to thank and commend MFA for always quietly working in the background and doing the important but unglamorous work of advancing Singapore's strategic interests.”
“Only then can we retain our hunger, our drive, to keep improving Singapore. Together, let us build another good 50 years. I support the Budget. 3.13 pm”
“My third and final point is that our sense of collective responsibility as a nation needs to go hand-in-hand with a spirit of personal responsibility. We have to strive to build a culture where each member of our workforce openly embraces the opportunities to improve themselves, reskill and upgrade, in order to stay productive and relevant in the fast-paced global economy. This year's Budget does the right thing by, once again, making monetary support available and by putting in place schemes, such as SkillsFuture. But without a personal commitment – rooted in a sense of responsibility towards oneself and one's family – we will not have the necessary buy-in for these policies to take off. On our part, the Government will need to collaborate closely with industry in order to identify the right training courses to sponsor under SkillsFuture that would ensure a tight fit between the skills that our workers acquire and the skills that the industry needs. To sum up my Budget speech, a number of principles have helped us to successfully navigate as a society to our 50th year of collective existence. It is useful to take stock and recognise that there is no free lunch out there. Even while the Government can soften the landing for those who are falling through the cracks and try to level up the playing field for all Singaporeans, we should not forget how and what got us here. We must safeguard our strong fiscal position. And we have to be nimble and willing to upgrade in order to stay ahead in what is going to be an increasingly competitive global landscape. Our strengthened social safety nets will help us to ensure that no one falls through the cracks. But our mindset as a society should never turn into one where we expect someone else to cushion the fall for us.”
“Along these lines, I agree with the proposed plans to delay previously announced increases in foreign worker levies for S Pass holders by one year and to also put on hold for a year the planned levy increases for Work Permit holders. Our labour market is very tight. In my role as a member of the Government Parliamentary Committee (GPC) for MTI, I have often heard feedback from SMEs that the availability of good workers remains a constraint. Our SMEs often say that they are making a concerted and genuine effort to hire Singaporeans and PRs, but it is an ongoing challenge to recruit and retain such personnel amidst the tight and competitive labour market. The measures in this year's Budget are, therefore, a pragmatic means to ensure that we do not choke off the necessary labour resources for our firms to stay vibrant, while continuing to stay the course of weaning our economy off an over-reliance on inexpensive foreign labour. I should further add that several business owners that I have spoken to are looking forward to hear more details about the Government's approach to implement the Sectoral Manpower Plans (SMPs) in all key sectors by 2020. We also have to guard against a situation similar to that in the US where some companies are unable to expand due to the dearth of H1B visas that are set aside for Page: 74 relatively skilled foreign talent. Recently, the nine foreign Chambers of Commerce have voiced their concerns that some foreign companies are considering a pull-out from Singapore due to their inability to fulfil their staffing needs. We should pay heed and ensure that we do not over-tighten the supply of labour to the point where it has drastic consequences for all companies – including Singaporean companies – and the economy of Singapore.”
“Apart from oil- and mineral-rich countries, we are perhaps the only nation where our Net Investment Returns (NIRs) have consistently financed Government spending in a sustainable way. Speaking from my own background in finance, Page: 73 for the GIC to sustain a 6%-7% US dollar rate of return over a long horizon of 20 years is no small feat. Our commitment to such investment returns is commendable. Thankfully, we have been able to meet these commitments up to this point. I support the Government's intention to include Temasek Holdings in the NIR framework, as well as to spend up to 50% of MAS, GIC and Temasek's long-term expected returns in the service of the nation. However, I also urge the Government to be prudent in spending up to this limit. Building up a critical mass of reserves is important, as a bigger percentage of a small notional value is inferior to a smaller percentage of a large notional value. To determine the value of these expected long-term returns, I hope the Government will establish a robust framework that will stand the test of time, even as the global investment climate and outlook have become more volatile and uncertain. Any modelling errors will not just be mathematical errors. They would have a real impact on future generations of Singaporeans. The second point I would like to emphasise is that our viability and success as an economy can only be maintained if we safeguard our reputation as one of the best places in the world for doing business. We have to ensure that the right institutions and conditions are in place for worthy businesses to take root and expand, whether these be our own domestic SMEs or foreign multinationals looking to us as a base for their regional operations.”
“The reduction of income tax by 50% up to a cap of $1,000 and halving of the Foreign Domestic Worker levy are measures that will provide more options to middle-class Singaporeans who seek to juggle their work and family commitments. While there is much to like about this year's Budget, there are, nevertheless, three broad issues that I would like to raise in reflecting on the challenges that lie ahead for Singapore. The first is the issue of ensuring that our spending remains sustainable and responsible. Our Government has been doing the right thing, in terms of communicating to the public that our expenditures are inevitably rising. This is due to an ageing population, rising healthcare and the need to continually invest in upgrading our infrastructure and facilities. We have been, and always should be, upfront about what our projected outlays are, how we intend to finance them and how we continue to set aside sufficient amounts for the future in our reserves. One does not have to look hard to find examples of what can go disastrously wrong when governments fail to be honest about their fiscal capacity. Witness, for example, what has happened in recent years to several European countries that have spent beyond their means. There will be payback time. In this regard, we, in Singapore, are fortunate to be dealing from a position of strength amidst a time of rising necessary expenses. We are a rare country. We do not have our own natural resources and, yet, through the wisdom of our founding generation of leaders, we have set aside enough of our reserves and we have been, and continue to be, investing it wisely. This has helped us in no small measure to finance our rising social expenditures.”
“This year's Budget does a commendable job in continuing to fine-tune the tools and instruments that we use to achieve this delicate balance. Our economic trajectory moving forward will continue to depend on our on-going efforts to raise the productivity of our workforce. SkillsFuture has the potential to become an important thrust in this productivity drive. The Mittelstand model in Germany – where SMEs have built up the backbone of their workforce through a system of apprenticeship and gradual mastery of an expertise – has been critical to Germany's productivity and income growth. I thus applaud the Government's initiative to move our SMEs in this direction by providing substantial support to promote institution-based and structured job training that leads to a recognised qualification. Page: 72 In terms of social assistance, I am heartened by the fact that the quantum of GST Vouchers will be increased and that S&CC rebates will be extended, with the biggest beneficiaries being the lower income families and the elderly. The centrepiece of this year's Budget in terms of social assistance is, of course, the proposed Silver Support Scheme. This will certainly go a long way towards ensuring that Singaporeans who have contributed to our economy throughout their working age years, but who now need some assistance in their retirement, will have a further safety net to prevent them from falling through the cracks. This year's Budget also has several measures to reduce the burden on those in the "sandwich" class, who need to shoulder the responsibility of being caretakers for both their parents and their children.”
“Mdm Speaker, I rise in support of the Budget. This year's Budget is an important one. I wish to start by commending the Minister for Finance and his colleagues at MOF for putting together what is a well-thought through and balanced Budget. As our nation comes together to celebrate 50 years of Independence, it is especially timely that a central theme to emerge from this year's Budget is the need for more "collective responsibility" in how our country functions. Indeed, such a sense of "collective responsibility", shared by all Singaporeans, will be indispensable moving forward, if we are to achieve our stated goal of "happiness, prosperity and progress for our nation". As with Budgets presented before this Parliament in recent years, this year's Budget continues to strike a balance. On the one hand, we need to continue to position our economy to sustain long-run success against the backdrop of a global economic environment that is constantly evolving. On the other hand, as a society, we recognise that there can be social costs to rapid economic growth. So, the Government has been consciously building up our social infrastructure and programmes to reach out to those segments of our society who need a helping hand. This is a delicate balance that we need to strike. If we over-emphasise economic growth – run the engine of growth on over-drive – we risk becoming a country that becomes increasingly unequal, where the gains from growth do not trickle down broadly to all strata of society. We risk then becoming a house divided. Conversely, if we become overly generous in the social assistance that is extended through Government policies, we risk over-stretching our fiscal resources which we have prudently built up and steadfastly safeguarded over the years.”
“But when these companies eventually do grow and reach a certain scale, will they find it harder to issue new debt and equity to finance the next stage of their growth due to their existing structure? To this end, would the Minister consider provisions, such as setting limits on the proportions of voting and non-voting shares, or providing a sunset clause so that dual class shares die out after a specific period of time? Thirdly, we have to be mindful that while we are nurturing companies which prefer a dual-class structure, we cannot alienate pension funds and institutional investors who are barred in their charter from investing in dual-class structures. These investors contribute to the viability of our financial ecosystem as much. We also need rules to govern what happens when super majority shares are sold to the market. Do these shares then convert to ordinary Page: 44 shares? Mdm Speaker, I have every confidence that the Minister has considered these issues thoroughly and will assure the House that he will implement safeguards that will enhance the flexibility and transparency of our system and maintain Singapore as a premier financial centre. With that, I support the Bill.”
“Our key objective must be to maintain the relevance of Singapore as a financial hub and to maintain its competitiveness and attractiveness relative to our competitors. This becomes more pertinent if dual-class listings bring about positive externalities to the rest of the economy and, especially, if we have ambitions to be a tech and biomedical hub for start-ups and to help bring them to market. However, we should also be aware of the risks of dual-class shares and seek ways to mitigate the negative side of it. Firstly, it has to be made very clear to potential shareholders of the dual class structures of shares that they are buying into. The rules of implementation need to be transparent. In other words, if a listing is made, what is the burden of disclosure that will be imposed on the distribution of voting rights? Potential shareholders need to be aware of this, so that they go in with their eyes open regarding who ultimately retains control and voting rights. Without such transparency, if one such listing goes sour, shareholders might turn around and blame the exchange and the regulator for allowing the listing to proceed without full disclosure to the public. Would the Minister give the House this assurance, please? Secondly, what recourse do shareholders have if the management and the board of directors are remiss in their duties and take the company in a totally different direction, contrary to their declared intentions? What happens if the founder of a company leaves the company and his vision and ethos are not espoused by those who succeed him? Many young companies need to access capital to grow but are wary of dilution of control to achieve their vision.”
“Continental European family-owned companies also use this structure to pursue different dividend policies to different classes of shareholders. Detractors of dual-class shares often cite fairness as their defence, that there should not be second-class shareholders. Shareholders should be able to hold management and the board accountable if the company heads in the wrong direction. Dual-class shares were first introduced in the United Kingdom (UK) in the 1960s as a way to fend off hostile corporate takeovers. However, as the Financial Times describes, "it has been discouraged to the point of extinction in recent times". London Business School's Prof Julian Franks says that "the UK market believes in the principle of 'one share one vote' even if it trumps efficiency". On the other side of the Atlantic, the United States (US) has seen a resurgence of dual-class structures as tech companies from Google to LinkedIn have shown a strong preference for it. One recent example drives home the point. Alibaba chose to do an initial public offering (IPO) on the New York Stock Exchange instead of the Hong Kong Stock Exchange because the Hong Kong Stock Exchange would not accommodate Alibaba's desire for a board Page: 43 control structure to get around its ban on dual-class shares. Hong Kong, as a result, lost the biggest IPO in the history of IPOs. What should Singapore do? I feel we have to be pragmatic about this issue. The fact of the matter is that capital is like water. It will flow to where it is the most expedient for it to do so. If companies cannot access public markets for capital in Singapore, they will go to a jurisdiction that allows for it.”
“As an added benefit, this update will also add more flexibility and vibrancy to our financial landscape as it allows for more institutional shareholder activism and a conduit to hold management to account. There are Page: 42 some practical considerations to implementation and I am happy to note that the Ministry will allow for a grace period of six months to full implementation. The second objective of this Bill is to reduce the cost of compliance. I am supportive of the "small company" concept for audit exemption. The Ministry estimates that at least 25,000 companies will benefit from this amendment and save each company around $2,000 to $3,000 a year in audit fees. Many of our small and medium enterprises (SMEs) will benefit from this rule change from a cost and time perspective. However, the public consultation has brought up concerns on how the Ministry can ensure that proper accounts are kept by small companies such that the risk of tax evasion does not increase. Can the Minister share with the House how he intends to address these concerns, please? The third objective of this Bill is to achieve the correct balance between flexibility and transparency and this is where I feel is the most challenging part of the Bill. The introduction of dual class shares exemplifies this delicate challenge. Mdm Speaker, the introduction of dual-class shares is a very contentious issue in many jurisdictions such that there is significant opposition to the convention in places that allow for it as well as in places that ban it. Proponents of dual-class shares cite the ability for companies to focus on long-term value creation and to maintain their founder's vision and ethos instead of fulfilling the short-term profit expectations of Wall Street.”
“Mdm Speaker, please let me declare that I work in the financial services industry. I rise in support of the Bill. The Ministry has put in a lot of work on this wide-ranging Bill and spared no effort in a robust public consultation exercise. There were 217 recommendations from the steering committee, with the Ministry accepting most of the recommendations. I would like to express my gratitude to those who have given valuable suggestions and to those who have been meticulous in crafting the amendments. There are three main objectives of this Bill. The first is to ensure that rules and regulations governing companies in Singapore are brought up to date. The second objective is to ensure that the cost of compliance is not prohibitive for companies. And the third objective is to ensure that the governance structure strikes the correct balance between flexibility and transparency. With regard to the first objective of keeping the Companies Act up to date, rules of governance are constantly evolving. Therefore it is difficult to pin down a perfect set of rules at any one point. This Bill has, by and large, kept abreast of financial innovations and globalisation of recent times. For example, liberalisation of rules on electronic communications, phasing out of outstanding share warrants, and greater disclosure standards required of foreign companies similar to standards required of local companies can be seen as efforts to bring the Companies Act up to date. The new multiple proxies regime also seeks to enfranchise Indirect investors like Central Provident Fund (CPF) and Supplementary Retirement Scheme investors to give minority shareholders a voice during annual general meetings. This particular update is welcomed as most retail shareholdings are held via trustee accounts.”
“I thank the Minister of State for the reply. Does the Minister of State envisage that higher toll charges will exacerbate the tight labour conditions that SMEs face, because workers might find it more difficult to come across the Causeway during peak hours? Secondly, will the Minister of State assure the House that the Ministry will do all that it can to help SMEs who are facing problems from the toll charges?”
“Given these developments, what is the Government doing to capitalise on the declining price trend and facilitate the adoption of solar energy? In addition to the environmental benefits, could the Minister also share how the Government's efforts will benefit Singaporeans and businesses?”
“Madam, some members of the public have asked about the outcomes that demonstrate the economic benefits of making R&D investments. According to the National Survey of R&D 2012, between 1990 and 2012, the money spent by the public sector on R&D grew about ten-fold while businesses' spending on R&D increased fourteen-fold. In the same period, the number of Page: 105 research scientists and engineers also increased seven-fold. Can MTI describe how businesses, especially local SMEs and Singaporeans, have benefited from these R&D investments? Block 71 at Ayer Rajah Crescent is home to 100 startups. National Research Foundation (NRF) has been supporting this initiative and generously topping up investment by accredited incubators by putting up $5 for every one dollar investment, up to a maximum of $500,000. The Tech startup sector, being an extremely competitive space, Government policies can make a big difference. I would like to ask the Minister if NRF will continue to support startups financially. Energy On to my second cut. At the opening of the liquefied natural gas (LNG) terminal last month, Prime Minister Lee shared that Singapore will continue to explore new energy options, such as solar energy, which is renewable, clean and reduces our reliance on imported fuels. The Prime Minister also said that the Government is keen to learn more about solar, in order to be ready to deploy it on a larger scale, as the technology becomes cheaper and more competitive. As I understand it, the cost of solar has decreased in recent years. From 2008 to 2012, the global average price of solar photovoltaic (PV) modules dropped by about 80%, due to a variety of factors, including solar technology advancements and global manufacturing overcapacity.”
“Enemies know that they will have to suffer significant losses if they ever decide to take up arms against us. At the same time, they know that Singaporeans will hold nothing back in the defence of our homeland. This psychological edge is as important as having the latest and most advanced machines. To this end, how does MINDEF ensure that Singaporeans continue to remain committed to defence? Total Defence On Total Defence, the concept of defence should really be seen at the level of Total Defence. Besides Military and Civil Defence, Economic, Social and Page: 15 Psychological Defence are as important. This year marks the 30th Anniversary of Total Defence. How has Total Defence remained relevant, and how is MINDEF educating the public about the continued importance of Total Defence?”
“Thank you, Mdm Chair. The commonly held notion of "chance favouring the prepared" cannot be underestimated. Effective training of our NSmen is, therefore, vital if we are to Page: 14 have a strong defence force. Changes to our demography are posing new challenges to the way we train our soldiers. The influx of new immigrants, falling birth rate and a shorter NS stint mean that we have to update our training methodology to be more responsive to changing circumstances. Of particular concern is whether the operational readiness of our NSmen is affected by falling birth rates. Does this mean SAF would have to intensify its efforts to capitalise on technology to make up for less physical bodies? We need to keep NS going and to keep NS strong. Training enhances the fighting competence and capability of our NSmen. Singaporean youths are a highly sophisticated and educated bunch. They are technologically savvy. This is a good thing. How can we tailor our training to better take advantage of their abilities? Training safety is equally important. I am happy to note that we have had no training deaths in 2013. I look forward to hearing from the Minister for Defence on MINDEF's continuing enhancement to the training efforts of our NSmen to effectively harness their talent and to hear what the Minister has to say about MINDEF's efforts to augment training safety. Commitment to Defence Next cut, Madam. A related topic is Singaporean's commitment to defence. The defence of Singapore is dependent on the will of Singaporeans to support the policy of having a strong SAF, and crucially, to take personal responsibility and to get involved in our defence. Our defence philosophy is predicated on being a strong deterrent force that is technologically advanced.”
“In Budget 2013, the Minister for Defence announced that he would chair a Committee to Strengthen National Service. Can the Minister give an update on the work of the Committee and the areas of focus? What measures does the Committee recommend to strengthen NS as the critical institution for Singapore's continued survival and success? Will the Committee engage in any public consultations to listen to feedback from the public and take in different views and perspectives? 7.15 pm”
“For many years, although competing claims in various parts of the South China Sea have existed, they were peaceful. Recent developments, however, are indicating an escalation of tensions. The latest incident involved the Chinese Navy being accused of firing water cannons at Philippine fishermen to enforce China's fishing ban. Chinese media has also reported that the Chinese Navy sailed to James Shoal and conducted an oath taking ceremony vowing to safeguard China's sovereignty and maritime interests. There are also other states making a claim for parts of South China Sea and they include Malaysia, Brunei and Vietnam. We need the sea lanes to be free of conflict for trade to flow. Any conflict in the South China Sea is of little advantage to us. Notwithstanding our size, what is Singapore's position on the South China Sea even though we are not a claimant state? Secondly, what can be done to address these issues? 5.45 pm Page: 127 Participation in International Fora”
“ASEAN was founded in 1967 and we were one of the founding members then. It has since grown to include a regional grouping of 10-member countries, including Brunei, Cambodia, Laos and Myanmar. Vietnam, Myanmar, Cambodia and Laos have a combined population of more than 170 million people. This represents a big market where our businesses have keen interests to access. Many businesses have also voiced Page: 124 their intentions to regionalise and export their knowledge and know-how to these countries. They feel that the young populations, energetic attitudes and growing middle class offer good business opportunities. The basis for economic cooperation is always good diplomatic relations. Would the Minister give an update on Singapore's efforts to augment our diplomatic relations with these countries, and if there are areas in security and defence for mutual cooperation? Thailand is a founding member of ASEAN. Our two countries have extensive government-to-government, business-to-business and people-to-people links. Thailand remains a favoured tourism destination for many Singaporeans. However, there are some challenges facing Thailand's domestic political situation. How would Thailand's domestic situation impact on our bilateral relations? ASEAN”
“We should debate more vigorously how Singapore can plug itself into the global village to ensure that our economy stays vibrant, our Government revenue stays healthy, and that we have enough resources to do all the good things that our citizens aspire to. As they say, spending money is the easy part; earning money is not so easy. With this, I support the Budget.”
“In this instance, the Government is not crowding out private investments because it takes a small principal position in each venture and works closely with the private sector to identify opportunities. It operates in the middle market of SMEs, away from the investments made in MNCs by our other SWFs. The Government further gains a mechanism to translate growth in the region directly into revenues for the national coffers, again, not as an end in itself, but as a means to fund our growing developmental expenditures and to bring about more benefits for Singaporeans. To this end, I would like to ask the Government to consider expanding the Co-Investment Programme to a meaningful scale so that dividends accrued can be big enough to make an impact to NIRC in the future. In effect, we are growing another golden goose that will lay us more golden eggs. Mdm Speaker, in conclusion, LNG, RMB, tech startups are all examples of Singapore trying to maintain its relevance in this global village. This is essential for quality growth and to bring about good jobs for our people. This is also essential to maintain social mobility and cohesion as Singaporeans have more opportunities to find rewarding careers within Singapore and to see Singapore as a worthy place to call home. MFA and MTI have worked quietly in the background to build more links to the world with the US-Singapore FTA, Trans-Pacific Partnership, and other multi-lateral and bilateral trade agreements. Singapore's external trade is three times its GDP. So, we have no choice but to look externally.”
“And will the National Research Foundation continue to support startups financially? Mdm Speaker, like what Dr Lim Wee Kiak has mentioned, Singapore is one of the few countries to have a mechanism for another source of income away from taxes, in the form of Net Investment Returns Contribution, or, put simply, investment income from our national reserves. While it is debatable whether our SWFs assume more or less risks to bring about more or less returns, what is clear and incontrovertible is that NIRC has consistently given us an $8 billion buffer every year for the past several years, without which, Government expenditure would have been severely constrained. My question is, therefore, whether we should devote more resources to this initiative to augment our Budget revenue. A good starting point would be to look at the Co-Investment Programme. In Phase One of the Co-Investment Programme, the Government has set aside $160 million with Heliconia Capital Management, which catalysed over $500 million of investments from the private sector. In Phase Two of the programme announced in this Budget, the Government is setting aside $150 million to catalyse SME Co-Investment Fund II and SME Mezzanine Growth Fund. I see many benefits of the Co-Investment Programme. One, the Government is actively encouraging capital-constrained SMEs to internationalise and regionalise. Two, Co-Investment Programme maintains Page: 29 commercial discipline in investment decisions by letting the private sector take the lead. And, three, the Government, by taking a small principal stake in these funds or companies, is able to directly participate in growth opportunities, especially in the more energetic industrialising countries of Vietnam, Cambodia, Myanmar, Indonesia, India and China.”
“China's rise is inexorable and the internationalisation of the RMB is inevitable. Singapore, being an offshore RMB hub, is directly contributing to Singaporeans' ability to get good paying jobs in the financial sector. As Mr Ravi Menon pointed out, "The critical factors that will determine how well Singapore develops as an RMB hub are liquidity and a range of hedging products". In this regard, I would like to ask the Minister for an update on the efforts that the MAS has embarked upon to further develop and augment Singapore's status as an RMB hub and as a financial centre. My final example is the setting up of an ecosystem for tech startups. Page: 28 In an article on 18 January 2014, the Economist magazine highlighted Singapore's efforts in setting up Blk 71 at Ayer Rajah Crescent as a home for 100 tech startups. It mentioned that the National Research Foundation has been supporting this initiative, generously topping up investments by accredited incubators by putting in $5 for every $1 invested, up to a maximum of $500,000. But the magazine also warned that with the tech startup sector being an extremely competitive space, government policy can make a big difference. It says, and I quote, "Even in Silicon Valley, defence dollars during the second World War and the Cold War primed the pump before venture capital took over." I applaud the Government's efforts in fostering entrepreneurship and innovation. The question I would like to ask the Minister is: given that rental costs are a real concern to businesses, and a real impediment to cash-strapped startups, will the Government continue to support this effort by putting out more subsidised office space, especially to home-grown companies? Will the Government look kindly at employment passes for this budding sector?”
“How can we capitalise on global and regional trends to upscale Singapore industries and bring about higher paying, Page: 27 higher skilled jobs to our workers, and higher quality growth for the country? The LNG sector is a good example. The Prime Minister unveiled the $1.7 billion LNG terminal at Jurong Island last Tuesday. Besides securing Singapore's energy security at competitive prices, it leads to the development of Singapore as an LNG hub. This brings a host of ancillary services and the development of an ecosystem – thousands of well-paying jobs for technicians, engineers, lawyers, accountants, traders and the likes. It brings international companies like Glencore, Trafigura, Mitsui to set up bases here. By having the strategic foresight to make a big investment, we have first-mover advantage and embedded Singapore further into the global economy. My question to the Minister is whether he will consider making more of such investments in areas like agriculture, palm oil, freight, coal, iron ore or metals to make Singapore a wider commodities hub. How will the sale of SMX and the delisting of existing commodities contracts by CME impact us in this regard? Another example is Singapore being chosen as an offshore RMB hub. This status was achieved after many years of close cooperation with China at government-to-government level, business-to-business level, and people-to-people level. It was quite a pleasant surprise when Mr Zhang Gaoli, Politburo Standing Committee member, was named as co-chair of the Sino-Singapore Joint Council of Bilateral Co-operation, and announced our RMB status during the Deputy Prime Minister's visit to China. I would like to extend my congratulations to the Government for having this strategic foresight.”
“The Minister for Finance has attributed this to the painful adjustment process that our economy must go through to restructure to higher quality growth. While a single data point does not make a trend, does the Minister foresee this statistic getting worse before it gets better? What are the drivers of this statistic from his perspective, and how would it impact Government revenues going forward? Personal income tax receipts decreasing when labour market is tight suggests either that the top 20% of wage earners who pay 80% of our income taxes find it less compelling to remain in Singapore and have relocated, or that compensations have been lowered as a result of profitability of companies being impacted. To me, both scenarios would suggest that Singapore, as a business centre, is becoming less competitive. How does the Minister interpret this statistic and does he view it as a cyclical or secular development? I am concerned that these two important components of Government revenue are lower because: firstly, our ability to fund all the good things that our citizens aspire to are directly contingent on how much revenue the Government raises. How do we subsidise more HDB flats, provide more education, build more MRT lines and put up more hospital beds? Secondly, these are the two healthiest ways for the Government to raise revenue without raising marginal tax rates and without putting extra burdens on our people; people pay more because they earn more. Mdm Speaker, I feel this Budget debate is a good time for us to be more outward looking and examine some of the factors that might contribute to higher budget revenue, not as an end in itself, but as a means to provide a higher quality of life for Singaporeans.”
“Mdm Speaker, thank you for letting me to join the debate. This year's Budget is a very generous Budget that celebrates the contributions, sacrifices and values of the Pioneer Generation. I am fully supportive of the Pioneer Generation Package and would like to congratulate the Government for being able to fund it entirely out of this year's Budget. However, when I looked closely at the revenue and expenditure columns of this year's Budget, two things caught my eye. The first was that almost every category of expenditure saw increases. The second was that two important components of revenue, namely, corporate tax receipts and personal income tax receipts saw decreases. To the first point, that Government expenditures are on the rise, should not come as a surprise. Members of this House have been relentless in their feedback to the Government, whether it is in transport, housing, healthcare, education, welfare and so on. The Government, to its credit, has continued to listen to the ground feedback and stayed the course in building an inclusive society characterised by social mobility. Page: 26 It is to the second point that I shall devote the majority of my speech to. Singapore saw GDP grow by 4.2% in 2013 and a tight labour market of 1.9% unemployment. It was thus very surprising for me to see corporate income tax receipts and personal income tax receipts decreasing year on year. Corporate tax receipts decreasing when GDP is growing suggests to me that the corporate profit margins are being squeezed. Companies are finding it less profitable to do business in Singapore. Is this a result of Singapore being less competitive? Members of this House have spoken extensively on rising labour costs and other business costs, for example, rising rentals.”
“Question No 40, please. The Senior Minister of State for Communications and Information (Mr Lawrence Wong) (for the Minister for Communications and Page: 24 Information): Mdm Speaker, with your permission, I would like to take Question Nos 40 to 45 together.”
“Madam, it is critical that the Government extends its support for Continuing Education and Training (CET) to facilitate workers, especially older workers who are 45 years and above, to acquire the skill sets to remain as productive stakeholders in the restructured economy. With skills getting obsolete ever so quickly on the back of globalisation, providing continuing education must be emphasised just as much as pre-employment education. To this end, I welcome the Government's initiatives, such as Workfare Training Support and the $500 million topping up of the Lifelong Learning Endowment Fund. However, I hope that the Government can do more. First, I hope that the Ministry can consider an annual spending target on CET equivalent to a certain percentage of GDP, similar to how MOE targets its spending on pre- Page: 86 employment education. Second, I hope CET can offer vocational courses with more rigour, for example, Diplomas in Mechanical or Aerospace Engineering via modular courses at our ITE or Polytechnics. Third, I hope enrolment to CET programmes will consider job experience and existing skills and not just be solely based on prior academic qualifications. Fourth, I hope MOE can work closely with MOM and industry associations to identify possible ways of collaboration and to bring about more awareness of these programmes. Tracking CET Wastages”
“Sir, the Wellness Programme has been launched for some years now and is to be rolled out nationally. I would like to ask the Ministry what the Wellness Programme has achieved so far, and what other plans does the Ministry have to promote active ageing in the community. Concessions for Seniors”
“We have seen the use of unmanned aerial vehicles in the Middle East, the widespread use of satellites and computers for command and control, not to mention the increasing focus on security in cyberspace to protect the integrity of our computer systems. The training of our soldiers must also evolve accordingly to the changing security landscape and take on a technological bent. In addition, we should also look at how technology can help the SAF to be more efficient by cutting downtime during training. I am thus excited to learn that the SAF has set up an Apps Innovation Office to this end. Can the Ministry further provide an update on how it is enhancing its learning and training efforts to keep pace with the learning habits of the new generation of NSmen to ensure that it harnesses their full abilities?”
“Mr Chairman, since the inception of the Singapore Armed Forces (SAF) in 1967, we have spared no effort and made tremendous investments in maintaining a strong deterrent force. While we pour no small amount into maintaining our defence, we adhere to a policy of making no enemies. That said, our attempts to uphold the quality of our defence forces must also evolve with the changing education attainment of our recruits. More than 45 years ago, our defence force would have comprised of men with fairly little or no education. The idea of a "hokkien peng" was the norm rather than the exception. Education in Singapore has, however, come a long way since those early years. Deputy Prime Minister Tharman said we are ranked third best in the World Economic Forum Global Competitiveness Report, and we rank well regularly in the PISA and TIMSS reports. This is because we not only have top students who do well, but because we have resilient students and quality across the board. Page: 173 Our soldiers are now a highly educated bunch. Naturally, they would have the expectation of taking on roles commensurate with their higher education attainments and aspirations. Can the Ministry highlight how it allows servicemen to take on more responsibilities and play more meaningful roles? Mr Chairman, with higher education attainment, young Singaporeans of today are also more technologically savvy and are used to a learning environment that encourages experiential and self-directed learning. Military exercises in many parts of the world are also taking on a different tone, with more emphasis placed on technology.”
“Mdm Chair, during last year's COS, I asked how MINDEF was going to recognise the many contributions of our soldiers to national defence reaching an important milestone of 45 years. National Service (NS) has come a long way since its introduction in 1967, from the initial hesitation of parents to send their children to be trained to defend our country to the present day mindset of accepting NS as a rite of passage into adulthood. We celebrated the 45th anniversary of NS in 2012. I understand that in recognising this important milestone, there is a whole series of events and exciting give-aways to all NS personnel. Working under the theme of "NS45: From father to son", there is an Open House at the F1 Pit Stop with more than 100,000 people attending. Perhaps, at some point in time, we might want to think about bringing some of these exhibits to the heartlands to bring about even greater awareness and endorsement from the public. Can the Ministry provide an update on the NS45 celebrations and Singaporeans' response to the commemorative efforts?”
“Mdm Chair, there has been feedback from business owners to suggest that disbursements of PIC benefits can be bureaucratic and slow moving. For example, a business owner cannot receive a claim if he presents an electronic receipt instead of a paper one, or that a business owner has to wait for over six months to receive a claim which might have helped to ease his cash flow. Can the Ministry elaborate on plans to make disbursements from the PIC scheme more timely? Can the Ministry also elaborate on how it is reaching out to the business community to brief them and address their questions on the Wage Credit Scheme? Which agency will be administering this scheme? Measuring Capital Gains”
“Mdm Chair, SMEs are an important part of our business landscape. They account for more than 90% of our enterprises, contribute to more than half of our GDP and employ more than half of our workforce. However, it is not easy to start a new business or to be an SME owner in Singapore today. Besides having to find the right business model operating under intense competition and working under tight labour constraints, there is also a need to comply with our tax laws. Many SMEs do not have professional staff to handle tax matters, which are usually dealt with by business owners or an accounting staff cum book-keeper. The Government needs to help SMEs minimise their compliance costs even as we ensure they pay their fair share of taxes in corporate tax, income tax and GST. What plans does the Government have to reach out to these new business owners and SMEs, to raise their awareness about their tax compliance requirements? 3.15 pm Supporting Local Start-ups and SMEs”
“Mdm Chair, Latin America is most famous for its footballing prowess. Brazil, Argentina and Uruguay have won the World Cup nine times amongst them. Pele, Maradona and Messi are familiar names to many people. What is less often mentioned about Latin America is its increasing prominence and influence as a political and economic bloc. As a continent, it possesses enormous natural reserves which give it broad sway in its international trade relations. Chile, as a country, produces 30% of the world's copper, an important raw material especially to China. Venezuela is an important producer of oil. Brazil is regarded as one of the new engines of growth for the world, not to mention Argentina and Mexico who have dynamic and young economies and are growing very rapidly. Latin America holds many opportunities for Singapore as a trade partner as well as in other areas of international cooperation, such as in security and representations on international forums. What is MFA's assessment of emerging markets in Latin America, and Singapore's engagement of countries in this region? Relations with the Middle East”
“Mdm Chair, relations between Singapore and the European Union reached a milestone in December 2012 when the EU-Singapore Free Trade Agreement was successfully concluded. This important FTA will pave the way for greater market access and increase trading links to each other's markets. It will also see the removal of a number of tariff and non-tariff measures. Page: 18 For Singapore, the 27 member states of the EU and the Union itself represent important political, economic, social and cultural influences. For the EU, Singapore is an important hub and gateway to Asia. It is thus mutually beneficial for Singapore and the EU to maintain good relations and find more common areas for cooperation. I would like to ask the Ministry how Singapore is managing other bilateral relationships with major economies, such as the EU, and how do we build more common ground with these entities for our mutual benefit. Relations with the EU and Latin America”
“I applaud the Government for putting in place a comprehensive set of measures in this year's Budget for our SMEs to close the gap with the Mittelstands. However, I would also like to ask the Government to consider publishing statistics on a regular basis on how we fare in terms of productivity as compared to the most globally competitive companies in each industry sector, so as to create an awareness of what is humanly possible and also to encourage the adoption of best practices to help our SMEs ascend the productivity ladder. On this note, Mr Deputy Speaker, I support the Budget. 6.14 pm”
“The process of Schumpeter's creative destruction will mean that some less efficient businesses get displaced. This would also mean that workers, especially older workers who have been in those displaced industries, find that their skill sets unsuitable for newer, more modern industries. Commitment to education has always been a core value of this Government. I hope this commitment will be extended to older workers who might be structurally displaced. Not only will this help them to remain economically productive and reduce the state's burden in providing welfare; it will also aid in social cohesion as it reduces a layer of discontent from the unemployed or underemployed who are often vocal with their angst. To this end, I welcome the Government's initiatives at Workfare Training Support and the $500 million topping up of the Lifelong Learning Endowment Fund. But I hope that the Government can do more. First, I hope the Government can consider an annual spending target on CET equivalent to a certain percentage of GDP, similar to how MOE targets spending on pre-employment education. Second, I hope CET can offer vocational courses with more rigour; for example, diplomas in mechanical engineering or aerospace engineering via modular courses in our ITEs and Polytechnics. Third, I hope enrolment for CET programmes will consider job experience and existing skills, and not just be solely based on prior academic qualifications. Fourth, I hope MOE can work closely with MOM and industry associations to identify possible ways of collaboration and to bring about more awareness to these programmes. Page: 128 Mr Deputy Speaker, I made a case for Singapore's SMEs to emulate Germany's Mittelstands in last year's Budget Debate.”
“If businesses are in a position to raise wages, Government will step in with help. If businesses are not in a position, then workers will leave to more efficient and profitable businesses to work. Businesses will also have to think hard between employing a foreign worker versus using those resources to encourage the local worker to be more productive. But the point is that, in all these scenarios, the worker benefits from being in a position to achieve a higher wage. The wage increase would go directly to him. And businesses are given help for three years to restructure their operations. I hope the Government will look into improving the efficacy and implementation of the Productivity and Innovation Credit (PIC) Scheme. Anecdotal evidence from businesses suggests that disbursements of PIC benefits can be bureaucratic and slow moving. For example, a business owner cannot receive a claim if he presents an electronic receipt instead of a paper one, or that a business owner has to wait Page: 127 for six months to receive a claim which might have helped to ease his cash flow. I believe this Government has the ability to solve these teething problems in PIC, especially when I look at how efficient the automatic process is in the payout of Wage Credits. It is critical that the Government extends its support for Continuing Education and Training (CET) to facilitate workers, especially older workers 45 years and above, to acquire the skill sets to remain as productive stakeholders in the restructured economy. With skills getting obsolete ever so quickly on the back of globalisation, providing continuing education must be emphasised just as much as pre-employment education. Restructuring of the economy is necessarily painful.”
“The marginal increases in taxes from a high rate might not be more than the marginal decrease from an exodus. We might end up with a smaller tax pie instead; and in the process, also succeed in decreasing our incentive to work. I hope the Government will consider any structural changes to the current tax system very carefully. Mr Deputy Speaker, as we set ourselves up for the next stage of development in our economy, I would like to voice support for the Government's prudence in taking a measured and calibrated approach with Page: 126 regards to the speed of restructuring. Is Singapore heading in the right direction to restructure our economy with an emphasis on productivity? The logic of this approach cannot be in doubt. It is the only way to maintain high quality and sustainable growth. The question really is: are we doing it too fast or too slow? The Government is very mindful of seeking the right balance between helping SMEs to restructure by relying less on labour, but at the same time, not to the extent of choking off the oxygen that keeps these SMEs afloat. With a comprehensive set of measures outlined in the three-year Transition Support Package, I am confident that the Government will succeed in meeting its objectives. The centrepiece of this year's Budget is the $3.6 billion Wage Credit Scheme. I am especially appreciative of this scheme as it is a very good example of unconventional thinking. The Wage Credit Scheme achieves two main objectives, and they are to help businesses mitigate costs and uplift incomes of Singaporean workers, while at the same time, leaving efficient allocation of resources to the market. This scheme, in my view, is superior to a minimum wage scheme because it minimises distortionary effects to the economy.”
“We are fortunate not to be in a fiscal mess that some other governments have gotten themselves into, especially in the West. The political climate in these countries has thus made it fashionable to make the rich pay more taxes and attack big bonuses. Examples abound in proposals for the Buffet Tax in the US, a 75% super tax in France, EU and Swiss proposals to cap bonuses. We should not let this currently fashionable thinking influence our own approach, because our finances are sound and even reserves that were used in the worst recession in recent memory were promptly returned the very next year. I do, however, agree with progressive taxation. Deputy Prime Minister Tharman introduced the concept of progressive property and vehicle taxes being a wealth tax and described it as an efficient tax. I agree with the Deputy Prime Minister. I would like to go further by arguing that our existing tax structure is already progressive. Only the top 20% of income earners currently pay any form of income tax. GST-Plus implements a permanent GST Voucher Scheme and, in this year's Budget, a one-off GST Voucher Special Payment which mitigates what superficially appears to be a regressive tax. And in the 2011 Budget, the tax burden of the middle class was lessened. There is always a cost to increasing taxes. Nothing is free. In an age of flexi-work arrangements, high-speed computer connectivity and easy air travel, it is no longer inconceivable to be doing one's work lying on a beach somewhere else. With globalisation, the competitive advantages that we try to put up in the form of creating an eco-system around our industries, ease of doing business and high-quality living are getting less and less compelling.”