Ong Ye Kung
Singapore
“The Ministry of Health (MOH) recently enhanced the Community Health Assist Scheme (CHAS) dental subsidies, which are tiered by income, for common preventive and restorative procedures.”
“Healthier SG GP clinics may also refer their enrolled patients to Active Ageing Centres and Community Health Posts to fulfill their social prescriptions and for subsidised services, such as medication management.”
“Public hospitals, such as the National University Hospital, the Singapore General Hospital and Tan Tock Seng Hospital, have deployed robotic-assisted surgical (RAS) systems for minimally invasive soft-tissue surgeries.”
“The Health Sciences Authority (HSA) welcomes drug producers to choose Singapore as part of their first-wave filings. As long as a pharmaceutical product is approved by at least one regulatory agency, such as China's National Medical Products Administration (NMPA), it would also qualify for the abridged route.”
“A decrease in estimated glomerular filtration rate in patients with diabetes can be due to multiple reasons. Doctors will first investigate the underlying cause before determining whether the patient should be referred to a specialist. Some causes are reversible and cause transient reduction in renal function.”
“Information on the Lasting Power of Attorney (LPA) cannot be made visible on the National Electronic Health Record system as it is protected under the Mental Capacity Act. Such information may only be disclosed by the Public Guardian to specified persons upon satisfactory submission of evidence(s) required under the law.”
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“We cannot just wait around for a vaccine, which may take a year or two before it becomes widely available. Even then, we do not know if the vaccine will work as expected. We need to take proactive steps to revive the Changi Air Hub, as a top national priority. Mr Saktiandi and Mr Melvin Yong asked how we would achieve that. Mr Gan Thiam Poh asked a similar question for the next sitting which I will answer today. Today, I will give first an update on the current situation in the aviation sector; second, I will explain what has changed from the time we closed our borders in March 2020 until now, what has changed; and third, finally, what are the steps we will take to try to revive our air hub. So, let me first give the House an update of the current situation. Compared to pre-COVID-19, Changi Airport is serving 1.5% of our usual passenger volume; and 6% of the usual number of passenger flights. The numbers are stark because Singapore has no domestic air travel. If we include cargo flights, it is higher, at 17% of total flight volume. This is because we are flying more than two and a half times more cargo flights now, which partially offsets the reduction in passenger flights; so all the online buying of goods has contributed to cargo and allowed us to mount more cargo flights. We now have direct flights to 49 cities in the world, compared to pre-COVID-19, 160. We were the seventh busiest airport in the world for international passenger traffic. Today, we have dropped to 58th place. Two key companies in the aviation sector are facing a deep crisis. They are Singapore Airlines (SIA) and Changi Airport Group (CAG). SIA recorded its largest ever quarterly loss on record in the first quarter of Fiscal Year 2020.”
“Mr Speaker, Sir, as the COVID-19 virus spread around the world earlier this year, many countries closed their borders. It was a drastic and unprecedented measure. But faced with an unknown and dangerous virus, governments around the world concluded that this was the best way to stave off a viral invasion. Singapore did the same on 24 March this year. This has decimated air travel. Today, we have fewer passengers than when we first opened Changi Airport Terminal 1 in 1981 – we have gone back more than 40 years because of COVID-19. It also affected many other sectors – aerospace, tourism, hospitality, entertainment, attractions, retail, our taxi and private hire car drivers. But what is most worrying is the longer term impact on our entire economy. Our aviation hub status is essential, even existential, to the health of the Singapore economy, to our jobs and to our future. I have described our airport as a lung of Singapore. Just as a lung takes in oxygen and vitalises every part of the human body, the airport connects Singapore with the outside world and energises every sector of our economy. When a company puts a significant investment in Singapore, one key reason for them to do that is our superior air connectivity, because that means their customers, suppliers, partners and key executives, can travel in and out of Singapore easily. They can come from any part of the world, come to Singapore and then connect on to another part of the world. Our status as an air hub makes that possible. However, the longer our borders remain closed, the greater the risk of losing our air hub status and our attractiveness as a place to invest and to create jobs because of those investments. The status quo is therefore not sustainable for us.”
“Currently, there are about 580 pedestrian overhead bridges (POBs) in Singapore. To provide barrier free accessibility for the elderly and less ambulant commuters, ramps have been provided at 71 POBs and lifts installed at 48 POBs. LTA is presently making plans to progressively install lifts at around 50 more POBs. Given the high cost of installing lifts, LTA will give priority to POBs at locations that would benefit large numbers of seniors and commuters with mobility challenges, barring site constraints. Particularly attention will be given to those near public transport nodes and healthcare institutions without nearby at-grade and other barrier-free crossings. We will continue to study how we can improve barrier-free access, including in estates such as Woodgrove.”
“With the help of National Parks Board, the Land Transport Authority (LTA) lined Tampines Expressway with dense planting, which act as screens that absorb light and noise from roads. Noise mitigation measures are also implemented in the development of public housing, which has to be at a minimum distance away from roads. The Housing Development Board developments in Sengkang and Punggol estates adhere to this minimum separation distance from the Tampines Expressway. LTA is currently studying the feasibility of other noise mitigation measures, such as low-noise pavement mix and vertical noise barriers, along expressways near residential areas. The study will help LTA understand the extent of improvement of noise reduction due to the pavement mix, the impact of road geometry, and cost-effectiveness.”
“Due to COVID-19, which affected the availability of cycling path construction materials and workers, our cycling path projects may be delayed by up to 12 months. The Government remains committed to tripling our cycling paths from 460 kilometres now to around 1300 kilometres by 2030, under the Islandwide Cycling Network programme. This will provide our towns, including Bukit Batok, with a wider active mobility network to support the uptake of active mobility in a way that is safe and convenient for all path users.”
“Due to the Circuit Breaker and phased re-opening since April this year, the completion of Sengkang West Bus Depot is delayed from 2023 to 2024. This delay does not affect the provision of bus services to serve Fernvale residents, as it is a bus depot and not an interchange. Residents at Fernvale are currently served by the Sengkang LRT and bus services along Sengkang West Avenue and Sengkang West Way that connect residents to Sengkang Bus Interchange / MRT Station and areas like Ang Mo Kio, Bishan, Hougang and Yishun. LTA will continue to monitor travel demand and patterns. Where necessary, LTA will adjust the provision of bus services to cater to increases in demand.”
“MRT lines are built based on projected travel demand, given that these are very significant publicly funded investments. There are currently no plans to extend the Cross Island Line further to Seletar Airport, Seletar private estate and Fernvale based on projected travel demand. Notwithstanding, commuters have access to the MRT network, through various bus and LRT services. These include bus Services 50 and 102 connecting to Sengkang MRT station on the North East Line, bus Services 70 and 86 connecting to Yio Chu Kang MRT station on the North South Line, and Sengkang LRT connecting to the North East Line. In addition, the opening of the Cross Island Line Phase 1 and Cross Island Line Punggol Extension will add 15 new MRT stations or interchanges to the eastern and north-eastern parts of Singapore, including stations such as Tavistock and Serangoon North which can serve Seletar private estate residents. I have asked LTA to review the connections from Fernvale and Seletar to these stations so that residents can benefit from these stations when they open and enjoy better connectivity to more parts of Singapore.”
“Excessive vehicle noise is caused by a variety of factors, such as illegal modifications to vehicles, vehicle design, and irresponsible driver behaviour. The National Environment Agency (NEA) sets the noise emission standards for new and in-use vehicles. The Land Transport Authority (LTA) requires vehicles to undergo mandatory, periodic inspections to ensure they meet NEA’s noise emission standards for in-use vehicles and have not been illegally modified. In between inspections, LTA takes action against illegally modified vehicles, based on complaints and regular enforcement efforts with the Traffic Police. There are currently no plans to install acoustic cameras for enforcement action against noisy vehicles, as this is a novel technique that has yet to be rigorously tested. Government agencies will continue to monitor new technologies, including acoustic cameras, for better enforcement against noisy vehicles.”
“There are already regulations in place for bicycles and cyclists. For example, bicycles must not exceed 20kg or be wider than 70cm, cyclists must adhere to the speed limit of 10km/h on footpaths and 25km/h on cycling paths, and the use of mobile communication devices while riding is disallowed on all public paths. Recently, we also raised the penalties for speeding and reckless riding offences. Those found guilty may be fined up to $10,000 and/or imprisoned for up to 12 months. They may also be charged under the Penal Code for causing hurt. Beyond regulations and harsher penalties, we need greater social consciousness. This is why we introduced a Code of Conduct in 2018, which encourages cyclists to give way to pedestrians on public paths, and slow down when approaching crowded areas, intersections, or crossings. It is important that all users play their part in contributing to a gracious active mobility culture, by being considerate and looking out for one another so as to make our community a safer and friendlier space to Walk, Cycle and Ride together.”
“I thank the Member for his questions. I will address them in my reply at the 6 October 2020 Parliament sitting.”
“There is no regulation prohibiting taxi operators, and other Point-to-Point (P2P) operators, from pooling passengers and creating a new service. In fact, GrabShare and RydePool are existing services that allow commuters to share a ride on a taxi or a private hire car (PHC) with other passengers heading in the same direction. However, in view of the COVID-19 situation, Grab and Ryde have decided to take precautions to suspend the GrabShare and RydePool services on their own accord.”
“The Point-to-Point Support Package was launched in February this year to help drivers tide over difficult times. In total, the three tranches of the package amounted to more than $300 million. Although it was designed as a Government assistance package for drivers, the taxi and Private Hire Car (PHC) operators have been working with the Government and contributed to the Support Package. For the first tranche of the Support Package between March and May 2020, three operators – Grab, Gojek and Ryde – contributed more than $20 million in total to match the Government's assistance for drivers through commission rebates. However, the PHC operators have stopped matching the Government’s assistance in subsequent tranches. The Ministry of Transport do not fault them, because the Support Package was designed as a Government assistance package to start with, and we appreciate their contribution. Instead, the operators have been helping the Government to disburse Special Relief Fund (SRF) payouts to their drivers. As of 30 September, the Government has disbursed about $45 million in SRF payouts to drivers through Grab, $8 million through Gojek and about $60,000 through Ryde.”
“While the government has issued advisories and measures to Point-to-Point (P2P) operators to help combat COVID-19, the P2P operators have also introduced additional measures, such as Grab's requirement for the front seat of vehicles be left empty to create a physical distance between drivers and their passengers. LTA respects the decision of the operators, which is to create a physical distance between drivers and their passengers. But they need to make this requirement known upfront to passengers when they are making their bookings. Grab has since lifted this restriction on 2 October 2020.”
“In addition, since September 2020, MPA has progressively rolled out Rostered Routine Testing for shore-based personnel who frequently board ships. Port workers, pilots, surveyors, cargo officers as well as launch and supply boat operators are tested once every 14 days for COVID-19. To date, around 1,200 have been tested and all have tested negative for COVID-19. MPA will continue to update its Port Marine Circulars when required, as the pandemic situation evolves.”
“Let me first explain that it is essential for ships and their crew to call at Singapore’s port. We are a major international port, and thousands of ships call at the Port of Singapore every month to deliver goods into our country, bring out exported goods, and ensure that the global supply chain remains undisrupted. Inevitably, some crew members will be infected with COVID-19 and become imported cases in Singapore. Since March 2020, there were a total of 21 COVID-19 positive cases from the crew of three ships that visited Singapore’s port waters. Two COVID-19 positive cases were also detected amongst shore-based personnel. They boarded one of the three ships and got infected, unfortunately. Based on Maritime and Port Authority's (MPA) investigations, the two personnel had consumed meals that were prepared onboard the ship with the ship's crew, using shared utensils. Fortunately, they have since recovered. The precautionary measures for shore-based personnel boarding ships in Singapore’s port waters are stated in two MPA Port Marine Circulars. These measures go beyond the guidelines issued by the International Maritime Organization and the World Health Organization. They include wearing of masks at all times; donning of additional personal protective equipment such as gloves, goggles, and surgical gowns except in situations where doing so jeopardises operational and personal safety; minimising time spent on the ship to reduce the risk of infection; and maintaining a safe distance of at least two metres when on board. Crew on board the vessels must also observe similar precautionary measures, when shore-based personnel are on board.”
“Prior to COVID-19, and as a result of better frequencies and service standards, 345 out of 356 public bus services generate fare revenues that cannot cover their operating costs and require government subsidies. This amounts to a total of about $1 billion per year. With COVID-19, commuter numbers have dropped, and as of July 2020, all public bus services generate fare revenues that cannot cover their operating costs.”
“The Land Transport Authority (LTA) has been studying the feasibility of various noise mitigation measures for this stretch of the Pan-Island Expressway (PIE). Trials have shown that low-noise pavement mix for at-grade sections of expressways are more effective in reducing noise for residents than vertical noise barriers. LTA will explore the feasibility of incorporating the low-noise pavement mix at a suitable juncture. We seek the Member and residents’ understanding and patience in the meantime. LTA remains committed to mitigating the impact of traffic noise and improving the quality of living for residents living near expressways.”
“The key objective of LTA's covered linkway programme is to connect large numbers of commuters to major public transport nodes like MRT/LRT stations and bus interchanges in a manner that is fiscally prudent. Covered linkways are provided within a 400 metre radius of key transport nodes, which includes connecting to nearby bus stops within walking distance. This also helps to ensure that our limited financial resources can be stretched to cover more locations and benefit more commuters after taking into account community feedback, as well as the needs of our more vulnerable commuters.”
“LTA regularly reviews the provision of public bus services to ensure that they are within 400 metres of developments, subject to a minimum level of ridership. This approach strikes a balance between providing connectivity while maintaining prudent use of public funds. The developments in Brickland are currently within 400 metres of public bus services and residents are served by Services 172, 983 and 991 to amenities such as the mosque, polyclinic and Teck Whye market. Besides the option of walking about 250 metres to the polyclinic and Teck Whye market, residents can also transfer to Service 307 along Choa Chu Kang Avenue 1. LTA will continue to monitor travel patterns and adjust the provision of bus services where necessary. This can come in the form of additional trips for existing bus services to cater to increased demand in new estates such as Brickland. We are also open to considering sub-spoke services, but these will have to be evaluated carefully as they could lead to increased waiting times, longer travel times and higher fares for some commuters.”
“Due to COVID-19, which affected the availability of cycling path construction materials and workers, there may be delays of up to 12 months for the completion of cycling path projects. The Government remains committed to tripling our cycling paths from 460km now to around 1300km by 2030, under the Islandwide Cycling Network. This will support the uptake of active mobility in a way that is safe and convenient for all path users.”
“The Circuit Breaker and phased re-opening since April this year have caused delays to the completion of the Thomson-East Coast Line Stage 2 (TEL2). Notwithstanding, we will be able to make up for some lost time, so TEL2 will open by 1Q 2021, a three-month delay from the original schedule of opening by this year. However, unlike the TEL2 which is near completion and prioritised for resumption of work, we will only be able to better assess the length of delays on subsequent phases of TEL and other MRT projects when construction activities have more fully resumed. The Government remains committed to significantly expand the MRT network, from around 230km today to 360km by the early 2030s. This includes opening the remaining stages of the Thomson-East Coast Line, completing the circle with Circle Line Stage 6, as well as building the North East Line Extension, Jurong Region Line and Cross Island Line.”
“Thank you, Mr Speaker. I think I have to reiterate some of the things that I have said on Tuesday, when I explained and traced back – and I went into some detail – how from the 1960s, Singapore started as a foreign exchange or FX trading centre. Then, from there, the first banks that came in and did FX trading, they were foreign banks. Bank of America was the first. Gradually, we brought in investment banking, wealth management, insurance, so on and so forth. Now, we are doing green finance and fintech. That whole process started 40 to 50 years ago. That process started when we brought in foreign expertise and then put in a lot of effort to groom local talent. Grow our own timber, learn from the foreign expertise and from there, many of our own rose up to take senior positions. I gave quite a lot of data requested by various Members to show that we are holding our own by being open to the world and I think that is the best way for us to grow, that is the best way for us to serve Singaporeans. Do not make ourselves a pond. A small pond. Live in the pond and feel that we are great because we are a big fish in the pond. But open out to the lagoon, open out to the sea. Have a much more exciting and diverse eco-system but also invest in our own people and hold our own. That is what we have been doing for decades. But we have never reached a stage where we say the only way to achieve this – set the quota. Set the rule. It must be a Singaporean CEO and born here, before we declare it a success. I think that would be the wrong approach.”
“Mr Speaker, Mr Chua may not have heard my speech properly earlier this week and may not have heard my reply properly. He asked why is it that not more Singaporeans are moving up to senior position roles. That was exactly what I was trying to explain that, indeed, more Singaporeans have been moving up. The percentage has not been moving – maybe that is why the Member misunderstood. The percentage stayed at about 44%. But the base has grown. As a result, the absolute number of Singaporeans that moved up to senior roles have increased. In my reply just now, I should have mentioned, it is not just Singaporeans taking up these senior roles here. They are now also going out, taking up senior roles overseas. I gave some examples during my speech. We are able to do all this only because we continued to bring in expertise; at the same time, work with financial institutions, invest in our local expertise, grow our own timber. That is the way that we grow the sector and when the sector grows, there will be more opportunities. Singaporeans are holding our own and taking and seizing some of these opportunities. So, the Member's second question, how do we support middle management in moving up, is exactly what we need to do. Grow the sector. If we keep saying, "Let's just be a pond. Shut ourselves out from the lagoon and the lagoon shuts itself out from the sea", then we will always be a small pond. You can develop your middle management to take up senior positions, but your market will be small. Let us take a different approach. Be open to the world, make ourselves that global financial centre, work with the financial institutions, invest in our people. Then, I think middle management can move up to take up senior positions.”
“MAS has been building our local talent pipeline for the financial sector and grooming more Singaporeans to be leaders and specialists, including giving them international exposure. Our local talent pool has been expanding and we will continue to collaborate and work with the industry to continue this effort.”
“Notwithstanding, let me try to address the Member's queries by taking a broader view of the data, while taking care of the interpretation. Across the financial sector, the median wage band of Singaporeans – because we collect the data by wage bands – the median wage band of Singaporeans is $6,000 to $8,000 monthly wage. While that for PRs and foreigners, they are similar, at the band of $8,000 to $10,000. In the senior level positions, about half of Singaporeans earn above $30,000 per month. It is the same for foreigners, while almost two thirds of PRs in the senior positions do. Both sets of data are as one would expect. Financial institutions very often bring in higher earning foreigners to perform specialised, or regional and global roles, and our rules constrain the flow of those who come in at the lower level. One would also expect those with stronger profiles and track records in Singapore to become more successful in attaining PR status. In other words, these data show outcomes which reflect the fact that we regulate the inflow of foreigners and apply selective criteria in granting PR from those who were previously foreign PMEs. If there was no regulation to control the inflow of Employment Pass holders and no criteria and conditions for PRs based on their track records, these earning differentials will naturally narrow or disappear. We should focus our minds instead on the essential issue, which is how we can provide the best opportunities for Singaporeans. As I explained in my speech earlier this week, we do this by staying open to the expertise that we need to grow as a global financial centre, investing in Singaporeans’ capabilities at every level and by ensuring fair employment practices amongst financial institutions.”
“Mr Speaker, Sir, I have provided most of the data Mr Chua asked for in my speech on the financial sector on 1 September 2020, but let me do a recap here. The Monetary Authority of Singapore or MAS started compiling detailed manpower data in the sector in the last few years. Total employment in the sector grew from 149,000 in 2014 to 171,000 in 2019. So, about 22,000 financial sector jobs were created over the past five years, with 15,000 going to Singaporeans. Based on MAS' estimates, about 70% of the workforce are Singaporeans, 14% Permanent Residents or PRs, and 16% foreigners. If we zoom in on senior roles, Singaporeans account for 44%, PRs 20% and foreigners 36%. The proportions vary across activities. In 2019, for senior roles in retail banks' local functions, Singaporeans accounted for about 70%. In non-retail banks, where there is a higher concentration of regional and global functions, the proportion is lower. Singaporeans accounted for about 40%. But as I have explained, while the share remains stable, the absolute number of Singaporeans holding senior level positions has been growing at a healthy pace as the base has expanded. Two thousand six hundred Singaporeans now hold such positions, 900 more than five years ago. That means an increase of 50% by absolute numbers. The Member has asked for a comparison of 25th, 50th and 75th percentile salaries of Singaporeans, PRs and foreigners in the financial services sector. However, such a breakdown would not be meaningful, as we are not comparing like for like. A foreigner at the 50th percentile of foreigner's wage level in the financial sector could be hired for a very different role, from a Singaporean at the 50th percentile of the Singaporean wage level.”
“Another concern is the high concentration of one nationality in the technology departments of financial institutions. It happened because the adoption of technology is a worldwide phenomenon. There is an explosion of demand for technology professionals and we are unable to fill all the posts domestically. We are furiously growing our local talent pipeline in this area, through mid-career skills upgrading and expanding computer science places rapidly in our Universities. But this is not likely to meet the demand, and foreign manpower is still needed. So, the concern will remain and we will need to address it. After all, over-reliance on a single source leaves us more susceptible to unexpected disruptions. We saw this as borders began to shut amidst the COVID-19 pandemic. MAS has been stepping up engagements with the top leadership of key financial institutions on the need to maintain robust HR practices that are merit-based and support workplace diversity. Another possible approach is to encourage the offshoring of certain business functions that are lower in value-add, and which employ a disproportionate share of foreign manpower. But any such measures must be approached with a lot of caution, because it may not be straightforward to dissect a business into high value-add and low value-add, and then outsource the latter. There are often linkages across different functions. So, foreigner-heavy technology functions may move offshore together with some good quality jobs in Singapore for locals. We have to look at this very carefully and not rush to chop off businesses.”
“Compared to the good old days, the financial services sector has grown to become a global hub. There are many more opportunities. There is competition but Singaporeans are seizing the opportunities, and taking up these important positions. Still, there is more that we can do to create opportunities for Singaporeans. MAS is working with the industry to groom Singaporeans to be leaders and specialists in financial services. One such scheme is the Finance Associate Management Scheme or FAMS, which supports financial institutions to hire and groom Singaporeans through structured talent development programmes. Another is the International Postings or iPost scheme, which incentivises financial institutions to send Singaporeans for international exposure. A further concern that I have heard, is that amongst some firms there may be an unconscious bias amongst business heads towards hiring people from their own nationality and they do not give Singaporeans a fair shot. We know that it is within the cultural DNA of most international financial institutions to cherish diversity, and this is a value Singapore strongly believes in because of our multi-culturalism and openness. So, let me also be very clear – there is no place for unfair hiring practices for the financial services sector. MAS holds our financial institutions to high standards and will not condone firms that fall short of fair hiring practices. We are aware that there are financial institutions that are on MOM’s Fair Consideration Framework Watchlist. MAS has been engaging these firms actively to understand the reasons for this. Where their HR practices are found wanting, we will make sure improvements are made.”
“First, while the share of Singaporeans in senior roles has remained steady, the absolute number of Singaporeans in these roles has increased. This is because as we grow as a financial centre, the base has expanded significantly. So same share, but of a growing base. To illustrate, MAS estimates that from 2014 to 2019, the number of senior positions sited in Singapore grew from 3,900 to 5,900. And the absolute number of senior jobs that went to Singaporeans increased correspondingly from 1,700 to 2,600. That is more than a 50% increase in five years, or an additional 900 Singaporeans taking up senior roles, embarking on a new and fulfilling stage in their careers. The second reason, when these functions come here, Singaporeans gain precious global and regional expertise. This complements overseas assignments and exposure, which are key to preparing Singaporeans to assume senior management roles in global firms. There are promising signs that more locals are taking up roles with international exposure. We spoke about the Bank of America being one of our earliest licensees for the ADM earlier. Today, the bank’s electronic FX business in Asia Pacific is headed by a Singaporean, who is now based in Hong Kong after having previously worked for them in Singapore and in London. Or take Standard Chartered. It currently has 140 Singaporeans working overseas, in key markets like Indonesia, China and the US, and as far afield as Nigeria. There are many more Singaporeans working overseas in the financial sector. MAS and EDB are in touch with about 2,000 such overseas Singaporeans. About 120 of them are C-suite executives, Singaporeans working overseas; another 750 hold Director/Vice President positions or higher.”
“The worry is that the large number of foreigners in senior positions may then crowd out Singaporeans. This concern is understandable, and I will address it. The reason for a higher share of foreigners in senior roles is mainly due to the large international component of activities here. Singapore has grown as a global financial centre as more financial institutions set up regional or global functions in Singapore. They have made us the hub for expertise, networking and oversight of operations in other markets. This is an enviable position. And I think if you ask Singaporeans if this is a good thing for our country, I think most will also say yes. These functions tap on growth outside of Singapore, support the region’s development and in so doing, they bring opportunities and bring jobs here. Moreover, for financial institutions to site these operations here is a concrete show of confidence for Singapore. It raises the stakes the world has in Singapore, and makes us safer and more secure. But the staff profile of regional and global activities, like in any leading financial centre, tends to be more internationally diverse. This is especially so for senior roles. As MNCs, financial institutions will fill these ranks with global expertise that they deploy across their offices around the world. We can see this in the data. As MAS has shared recently, in 2019, for senior roles in retail banks' local functions, Singaporeans accounted for 70%. In the non-retail banks, where there is a higher concentration of regional and global functions, the proportion is lower, at about 40%. But this does not mean that Singaporeans are getting the short end of the stick, because it is not a zero-sum game. Let me give you two reasons.”
“For example, every year, up to a third of SMU fresh graduates, and that includes this year’s graduates, are hired by the financial services sector. Being a former Minister of Education, I observed the same pattern from NUS' Business Administration faculty. Students from other disciplines such as Accountancy and Engineering also find the financial sector a very attractive destination. The financial institutions know that our education system prepares our young well for this sector. And then our students know there are bright careers in the sector too. So, there is no doubt that being a global financial hub has benefited Singapore. I also think that, by and large, Singaporeans are not uncomfortable with this approach. Why then has foreign manpower raised concerns amongst Singaporeans? We need to take the concerns seriously. So, let us start by examining some of the data, including the details of manpower in different activities and at different levels that MAS has been painstakingly compiling in recent years, and which it has released recently. At 13% of our economy, the financial services sector employs about 171,000 workers. Based on MAS’ estimates, about 70% of the workforce are Singaporeans, 14% PRs and 16% work pass holders. If we zoom in on the more senior roles, Singaporeans account for 44%, PRs 20% and work pass holders 36%. These proportions have remained stable in recent years. The non-Singaporeans in senior roles have diverse backgrounds. They come from over 50 countries. The largest group comes from Europe, with other significant nationalities across Asia and North America. When MAS released its figures recently, one concern came up, which was that 44% of senior positions going to Singaporeans could be too low.”
“So, we attracted a critical mass of global players and international talent to get us started. UBS was one such player. Today, it employs close to 3,000 employees across its various business lines. Sixty percent are Singaporeans. It has instituted a range of training programmes, including converting our former Command House into the UBS APAC Business University, and one of its objectives is to develop local talent. Last year, it appointed a Singaporean to oversee the bank’s entire business in the Asia Pacific. So, we have come a long way, from the ADM in late 1960s to a complex eco-system of activities today, from retail and corporate banking to trade finance, investment banking, insurance, wealth management, infrastructure finance, FX and derivatives trading. What has underpinned this growth? In essence, keep bringing in new activities, keep developing new capabilities. In the build-up phase, inject foreign expertise where necessary – people with track records in the area. But over time, grow our own timber and when Singaporeans gain the expertise, we take on more roles in multi-national teams, here as well as abroad. Using the same approach, we are now developing FinTech and Green Finance. As a result, the sector continues to create jobs. About 22,000 financial sector jobs were created over the past five years, with 15,000 going to Singaporeans. There are also positive spillovers, contributing to jobs in the legal and accountancy fields, many of which also go to Singaporeans. This is one of our most promising sectors, especially for the young. We observe this in the way financial institutions and our fresh graduates mutually seek out each other.”
“Mr Speaker, Sir, I rise in support of the Motion. I join Members before me to address the issue on foreign manpower. As a member of the Board of the Monetary Authority of Singapore or MAS, I will talk about the issue from the perspective of the financial services sector, the people who work in it and the people who want to work in it. This is a key sector of the future economy, a very bright spot in a COVID-19 stricken economy. Through agility, hard work and good fortune, we have carved out a place in the borderless and fast changing world of global finance. The fundamental challenge we have is this: how do we defend and grow this position, against very tough global competition, in a way that provides the best opportunities for Singaporeans? Let us talk about how we grew into the global financial hub that we are today. It all started in the late 1960s, when we seized the chance to become an international foreign exchange trading centre. It was born from a simple but powerful insight. Due to our time zone, we could seamlessly bridge East and West, to facilitate US dollar transactions after the New York market closed, before London opened. This became the Asian Dollar Market or ADM, which grew into a vibrant activity in Singapore. The earliest banks to obtain licences to operate in the ADM market were foreign banks, the first being the Bank of America. The early traders were mostly foreigners. But over time, these foreign financial institutions trained a whole pipeline of Singaporean talent. Wealth management is another important case study. Singapore is now one of the top international wealth management centres today. To get to where we are, we had to overcome our initial lack of knowledge, expertise and networks.”
“We have set up an International Advisory Panel on Maritime Decarbonisation to develop strategies for maritime decarbonisation, and started a Maritime GreenFuture Fund to accelerate the development and adoption of low-carbon technologies. We will support the International Maritime Organization's Strategy on Reduction of Greenhouse Emissions from Ships, and ICAO measures including the Carbon Offsetting and Reduction Scheme for International Aviation.”
“We will work with the Public Transport Council and fellow Singaporeans to build a culture of care, where commuters show concern for, and help, fellow commuters with mobility challenges. Expanding the public transport system to better serve Singaporeans requires major infrastructure and recurrent expenditure. But this is essential public spending, which has to be carried out with financial prudence. As transport is part of the sustainable development of Singapore, MOT will work closely with other infrastructure agencies to develop a comprehensive sustainable development plan for Singapore. Improvements to public transport will move us towards a car-lite nation. Our vehicle growth rate is already 0%, and the Government will henceforth purchase only cleaner energy buses. We will further work towards phasing out private vehicles with internal combustion engines by 2040. We will also continue to work on initiatives to promote the adoption of electric vehicles, including efforts to deploy charging infrastructure nationwide. The lower traffic and new travel patterns brought about by COVID-19 have opened a window of opportunity to re-imagine our road infrastructure. For example, certain under-used road lanes can be converted to cycling and bus lanes. There may be scope to pedestrianise certain roads. We will also follow through on our plan to expand cycling paths from 460km now to around 1,300km by 2030 under the Islandwide Cycling Network. COVID-19 has brought about changes in habits, such as more telecommuting, meaningfully staggered working hours, and greater use of e-commerce. This has led to more sustainable travel patterns. We will explore ways to make some of these changes permanent. Internationally, we will play our part to tackle climate change.”
“We are also in discussions with Malaysia on the Kuala Lumpur – Singapore High Speed Rail (HSR) Project, which has been suspended at Malaysia's request until 31 December 2020. Singapore continues to believe that the HSR is a mutually beneficial project for both countries. Public transport is key to a greener, fairer, and better Singapore. It emits less carbon dioxide than private transport; it is quieter, safer, and uses less land. Millions of Singaporeans from all walks of life take public transport every day. We will strive to ensure that public transport stays reliable and affordable for all Singaporeans. We will therefore work towards a sustainable and inclusive land transport system for all Singaporeans, in line with our vision of a 45-Minute City with 20-Minute Towns through walk-cycle-ride journeys by 2040. Over the last five years, MOT has significantly improved rail and bus services. We have turned the corner on rail reliability, with Mean Kilometres Between Failure of the Mass Rapid Transit (MRT) system increasing from 130,000 train-km to over one million train-km. We will continue to build engineering capabilities and invest resources in maintaining the reliability and standard of our public transport system. In the coming years, we will open new stations and lines almost every year, starting with the remaining stages of Thomson-East Coast Line, to completing Circle Line, and opening Jurong Region Line and Cross-Island Line. The MRT network will grow from around 230km today to 360km by then. We will continue to improve public transport to better support the less ambulant, and we have begun mobile application trials to help the visually-impaired.”
“We will take the opportunity when air traffic volume is down to improve our aviation infrastructure, namely developing a three-runway system. We are reviewing the layout, design, and timeline of Changi Airport Terminal 5 to build a more competitive and resilient terminal for the future. While COVID-19 has slowed world trade and disrupted global supply chains, our maritime sector has stayed relatively resilient, and the Port of Singapore continues to serve the trading needs of world markets. We will build on this to further strengthen Singapore's status as a maritime hub and position our port to seize new opportunities. In the coming years, international division of labour may change, global supply chains may shift, and we need to be nimble to adapt to these trends. We are investing in the maritime sector. We expect Tuas Port to be completed in the 2040s, as planned. It will be the world's largest fully automated container terminal, able to serve the world's largest container ships. We will step up digitalisation to streamline port clearances, enable just-in-time vessel operations at our port, and standardise and enhance flows of vessel data across ports globally. The peoples and economies of Singapore and Malaysia are closely intertwined. The land crossings between us and our closest neighbour have remained open to essential goods and materials throughout the COVID-19 crisis. Both Governments are progressively restarting travel through the reciprocal green lane and periodic commuting arrangement. Last month, Singapore and Malaysia agreed to resume the Johor Bahru – Singapore Rapid Transit System (RTS) Link Project. When service commences in 2026, it will ease Causeway congestion, improve connectivity and deepen people-to-people ties.”
“The transport sector plays a vital role in Singapore's survival and prosperity, as it brings Singaporeans together, Singapore to the world, and the world to Singapore. COVID-19 has inflicted severe damage on the transport sector. The Ministry of Transport (MOT) will work with the industry to tide over the COVID-19 pandemic, revive the Changi air hub, strengthen our status as a global hub port, and deliver sustainable and inclusive land transport for our home of the future. The Changi air hub anchors Singapore's place in the world, making us an attractive node for international business, trade, investment, and tourism. This is even though, geographically, we are not a natural air hub. We developed into one through the vision of our founding leaders, and decades of enterprise and hard work of workers in the aviation sector. However, COVID-19 has decimated air travel and set us back decades. Changi Airport has lost about 50% of its air links and over 95% of scheduled passenger services. We cannot take our hub status for granted and assume that we will remain one when global air travel recovers. Reviving our air hub in a safe way will be a top and immediate priority for MOT. We have already resumed some transit and transfer services for passengers in a safe way. We will have to take further steps and implement them carefully and progressively, starting with countries or cities which have kept the virus under control, and taking all precautions. We are helping aviation companies preserve and enhance their core capabilities, and re-skill workers. We are actively contributing to the International Civil Aviation Organization's (ICAO) COVID-19 global response and recovery efforts.”
“IHLs will offer their graduates a few Continuing Education and Training (CET) modules free of charge and we are in the process of speaking to the IHLs, structuring all these modules into a continuous programme and with credentials at the end of it. In that way, graduates can take up this programme and delay their entry into the labour market while doing something very meaningful. Graduates can also enrol for further studies, including Advance Diplomas, Specialist Diplomas and graduate certification programmes. The Member also asked about internships. This has become a challenge as many internships have been disrupted due to COVID-19 and our circuit breaker measures to curb community spread. IHLs are working hard to identify alternatives so as to mitigate any impact on learning outcomes and graduation timings. If rescheduling the internship is not possible, IHLs will offer substitutes, such as working on industry-related projects and taking additional modules. COVID-19 will be a defining moment in our graduates’ lives, especially this batch of graduates. I urge our graduates to rise to the occasion and use this crisis to bring out the best of their generation. The Government will support them as closely as possible as they enter the next phase of their life’s journey.”
“Fresh graduates are entering the job market at an exceptional time. Many will face challenges in securing a job. The Institutes of Higher Learning or IHLs, together with various Government agencies, will provide whatever support we can to all graduates entering the workforce. First, they will give graduates peace of mind during their job search, so MOE has suspended the repayment and interest for all study loans, for one year. Second, the IHLs, namely the Autonomous Universities, Polytechnics and ITE – each have a significant network of companies and employers. They have been leveraging them to provide internships and Work-Study programmes. Employers in general are facing difficulties due to COVID-19. But many are still prepared to hire and others who do not have job vacancies may be prepared to offer traineeships. IHLs are committed to trying their best to help our graduating students. They will contribute to the pool of about 100,000 opportunities under the SGUnited Jobs and Skills Package that the National Jobs Council is overseeing and building up. To ensure that graduates have access to these jobs and opportunities, the IHL Career Centres will continue to provide career guidance and assistance, labour market information and organise career fairs. The Career Centres have stepped up the intensity of their efforts this year, including using online outreach and counselling tools to support graduates remotely. For graduates who decide to delay their entry into the job market, the IHLs will support them to learn new skills and knowledge.”
“The Institutes of Higher Learning (IHLs) currently do not offer any specific e-sports-related courses. At a young age, students will benefit from a broader set of competencies and skills, which can be relevant to the e-sports industry. These include courses in Game Design and Development, Infocomm Technology, Sports Management, Graphics and Sounds Design, Events Management and Data Science. Notwithstanding, some IHLs have worked with industry partners to incorporate aspects of e-sports into their curricula. For example, Republic Polytechnic has infused e-sports content into their Diploma in Business for students who have selected the Sport Management specialisation. These students can also take up internships or final-year projects in the e-sports industry, during which they are exposed to skills such as marketing, event management and logistics management. There are also opportunities beyond the formal curriculum. Students can join clubs such as NUS' E-Gaming Society (NUSEG) and SMU's eSports. SUTD also runs a gaming research centre called the Game Lab.”
“On the first issue, I fully agree with Mr Henry Kwek. I think moving forward, the labour market is going to be quite soft, unemployment is likely to go up. If the private sector is not hiring enough, one area we look to is the Public Service including Credit Counselling Singapore, and I think if there are opportunities there, the Government should be prepared to put in money and we can see how to create more of such jobs, including in the Public Service, such as what the Member had suggested. On SIBOR rates, I do have to look into the details. I do not see any particular reason, as the Member mentioned, that the credit spread has gone up. In fact, there have been many schemes. There have been schemes run by both ESG or MTI and MAS to make sure that the credit spread is controlled, with the Government putting in and taking 90% of the risk. But if the Member is referring to mortgage rates, that could have a different market mechanism. On the whole, from our observation, interest rates ought to be coming down and it really depends on the kind of loans that you have taken, whether it is a fixed rate, or whether it is a floating rate, and I think that will also affect. Whatever it is, when a bank decides to adjust interest rates, always give enough time for your customers to be able to refinance the loans and without penalties. And I think that is what MAS will always encourage all banks to do. 1.41 pm”
“There will be borrowers who find the relief measures insufficient. They will have to approach their banks to explore possible solutions, including restructuring their debts. They may also approach the Credit Counselling Singapore, or CCS, for debt management advice and counselling. CCS has collaborated with banks to offer the customised debt management plan for such borrowers. To help borrowers on the debt management plans and who are affected by COVID-19, CCS will also assist with restructuring their repayment plans. On an ongoing basis, MoneySense, Singapore's national financial education programme, actively educates the public on debt management options. MAS will continue to work closely with the financial industry to support individuals and businesses through this crisis, and to educate borrowers on the relief measures available to them.”
“However, as a matter of practice, banks will charge a fee to borrowers wishing to refinance their housing loans when they are still within the lock-in period. If there are borrowers who have difficulty paying the fee, they can put up an appeal and I am sure the banks will consider on a case-by-case basis. MAS also facilitates the refinancing of property loans should borrowers choose to do so, by not subjecting them to the total debt servicing ratio (TDSR), mortgage servicing ratio (MSR) and loan-to-value (LTV) limits for owner-occupied residential properties. As a temporary debt relief measure, MAS has also waived the TDSR and MSR requirements for refinancing loans for investment residential and non-residential properties. Mr Kwek also asked whether MAS will help individuals and businesses understand credit restructuring and credit counselling programmes. Our priority has been to prevent borrowers from encountering repayment difficulties. MAS has been working with the financial industry to help individual and SME borrowers with a wide range of credit relief measures, without these impacting the borrower's credit record. For example, individuals will be able to defer payments on their mortgage loans. Likewise, SME borrowers may opt to defer principal repayment on their secured loans. As at 10 May 2020, close to 90% of the 31,300 applications for mortgage loan payment deferment have been approved. Similarly, more than 90% of the 3,300 applications for SME secured loans deferment have been approved. MAS has also worked with financial institutions and industry associations to promote awareness of the relief measures, and to help borrowers understand the costs and benefits of each relief measure so that they can make informed decisions.”
“As part of the Government's response to the COVID-19 pandemic, the Monetary Authority of Singapore (MAS) has been closely monitoring market developments and engaging the banks on a comprehensive range of relief measures for borrowers. MAS does not intervene directly in housing loan pricing as interest rates are determined by the market. But MAS expects housing loan interest rates to be revised downwards in a fair manner where this is consistent with sustained trends in banks' cost of funding for such loans. How interest rates on housing loans fluctuate also depends on the loan terms that borrowers had chosen. Currently, about a quarter of borrowers are on housing loans pegged to the Singapore Interbank Offered Rate (SIBOR) or Swap Offered Rate (SOR). These borrowers would already have seen interest rates for their loans come down over the past months, as falling interbank interest rates are passed on directly to these borrowers. Slightly over half of borrowers have housing loans pegged to board rates or linked to fixed deposit rates. These rates generally change more slowly than SIBOR or SOR. So, borrowers are less adversely affected when market interest rates rise quickly, but also will benefit less when market interest rates fall quickly. The remaining borrowers largely chose to be on fixed interest rates for the first two or three years of their loan. These loans do not adjust to changes in market interest rates, but provide certainty and stability. Notwithstanding these differences in interest structures, borrowers may refinance their housing loans to take advantage of lower interest rates. The current rates for new housing loans are between 1.4% and 1.8% for the first year, which are lower than the range of 1.8% to 2.3% last year.”
“Mr Speaker, may I take both questions together, please?”
“First, for artistic talent, I do not think the community will feel it is easy to go with e-auditions; it is a challenge. But, also, judgement is involved. When you watch an e-audition, you can judge and evaluate how hard have this child been training, how much effort they have put in, how passionate and dedicated they are. There are also no time trials for arts but you just have to make that judgement. It may have to well apply to sports this year, there being no national games; there is no timing. But this is one of our habits as an education system and as a society as well. We always like to boil everything down to one number and we compare the number, whose number is bigger and smaller and, therefore, you enter. This has the strongest semblance of objectivity, transparency and meritocracy. But on the other hand, if we want to judge a child and bring the child into DSA at the age of 12 or 13, I think we may have to go beyond timings or grades, and to really also put some weight on the child's dedication, how hard he or she trains, and the schools have those records. So, the Member is right, that schools have to dig a bit deeper this year, given the circumstances; they have to come up with alternate criteria and explain them transparently to students and parents, so that they can apply to DSA. At the same time, for students and parents, I also need all their understanding that this year, in the absence of National School Games, some of these qualitative attributes will come into play. And do accept that schools, principals and teachers do have to exercise judgement this year. This is in a way how life is.”
“MOE will announce the details shortly. Mr Speaker, Sir, let me just make a final comment. COVID-19 has taken away regular classes, and also our tried and tested methods of grading and DSA selection. But instead of stalling our education reforms, it has underscored their importance and provided impetus for us to journey on. For example, we recognised the importance of digital literacy – we always did – but acceptance of online learning tools and capabilities across schools were uneven, and we therefore needed a fairly lengthy phase-in period that I announced in Parliament during the Committee of Supply (COS). But now having forced everyone into home-based learning, that has helped us overcome that problem almost overnight. We always wanted to emphasise more on Character and Citizenship Education and especially moral education, and COVID-19 has provided us with many important teaching moments. Similarly, we have progressively been reducing the over-emphasis on examinations and grades in our current system. Now, COVID-19 is forcing us to adopt more alternate evaluation tools and make greater efforts to exercise judgement on the potential and character of a child. So, education reforms will therefore continue and so will the DSA exercise, and all the more so this year.”
“We will not be able to depend on traditional selection methods like trials and auditions. Instead, our schools will implement the following measures. First, schools will conduct interviews through video-conferencing tools, which our students, teachers are now all very familiar with. To ensure an even playing field with a common setting and equipment for e-interviews, students will go to their own Primary school to participate in the e-interviews. These sessions will take place from early July to middle of September, so a couple of months away. They will be scheduled and spaced out to avoid inter-mingling of students. Schools may also conduct simple e-auditions in a similar way, for arts categories such as singing, dancing or drama. Second, without selection trials and with the suspension of National School Games, Secondary schools will need to give more recognition to the student’s talent, potential, passion and character through their school track record, and information provided in the students’ online applications. Schools will look out for the student’s demonstrated dedication to a sport and their training attitude, even without a placement in the National School Games. This is not entirely new, but if the circumstances this year force schools to re-evaluate their definition of a good sportsperson, I think it is not a bad outcome at all. Each school will have to decide how it wants to evaluate a student, and apply it consistently and fairly. Third, our Primary schools will step up efforts to encourage students with ability and potential, especially those from less advantaged family backgrounds, to apply through DSA to suitable schools. This will ensure that students from less advantaged backgrounds have equitable opportunities to access DSA.”
“Despite the COVID-19 situation, the Direct School Admission or DSA exercise this year will proceed. The timeline for just accepting the applications will be broadly similar to previous years, which is middle of May to early June. But there will need to be some adjustments in how schools evaluate the students. Let me first give some background. Since 2018, we have been making some significant changes to the DSA process and there are three. First, we moved DSA away from being an evaluation of general academic abilities, and instead, focused on specific talents and aptitudes of students. Second, with that shift, we encouraged more schools to participate with their respective niche talent development programmes, and as a result, we expanded the number of DSA places on offer. Finally, we simplified the application process with a centralised DSA portal that allows more students to access DSA opportunities. These changes are part of our continuing effort to recognise students’ abilities for admission to Secondary schools, beyond using PSLE exam results. This is an important shift we are making to the entire education system, moving away from the over-emphasis on examinations and grades, and focusing on what matters to our children in the future, which is their curiosity, passion, ability to learn for life and mastery of their chosen crafts. We will therefore do our best to maintain the same number of DSA placements this year compared to last year, which is about 3,500 placements. In selecting students for DSA, schools will continue to uphold the principles of transparency, objectivity, inclusiveness and student-centricity. However, the evaluation methods will have to change as we need to observe safe distancing measures.”