Penny Low
Singapore
“These amenities will offer recreational choices and also prevent traffic congestion to the new town when it is built. Will MND look into these suggestions favourably and also work with MOT to prevent congestion?”
“Going forward, the quality of our lives will also depend on how well we can integrate knowledge with technology and creativity to find solutions with daily, social and economic concerns. What plans are there to encourage people to act responsibly, dream up new ideas and design for a better world?”
“Let us navigate the sea of change with mastery of seafaring skills, guided by the light of the stars and not by passing fancy ships. Only then can we continue to be that extraordinary little red dot the world envies; only then will we know that the future generations will continue to be world-beaters and make their families proud.”
“These considerations should be part of the MediShield Life design so that it is holistic, it incentivises the desired behaviour and it improves the overall health outcome of our Page: 122 nation.”
“Thank you, Deputy Speaker. Clarification, Sir. The Minister mentioned that MediShield premium payments can be paid for by immediate family members.”
“Mdm Speaker, there have been more reports on the increase in rodents lately and I am wondering whether NEA has done any study to discover the reason for such an increase, or is it that there is just more visibility of rodents in, especially, housing estates.”
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“Another spin-off from the all-in-one type of pass is that of riding on bigger attractions, and it would help build attendance for smaller museums.”
“This type of day pass is not unusual in cities like Paris or London where visitors can choose from a range of museums and art galleries.”
“Sir, first and foremost, I would like to extend my congratulations to the National Heritage Board for a job well done and also the recent opening of the Asian Civilisations Museum. We are now one step closer to realising the goals set out in the Renaissance City Report. Over the years, millions of dollars have been dedicated to retain our heritage and thus giving us a sense of identity and historical roots. We can now say that we have world-class museums showcasing Singapore's history and rich heritage. In order to promote the arts and get our population to have a greater appreciation of our roots, would the Minister consider, first, engaging our schools to adopt the heritage centres and museums and, in the process, train our students to be guides or ambassadors of the museums? The students can be engaged on special school tours, school holidays or during foreign student exchange visits. The advantage of such a scheme is that it will broaden the scope of understanding of their subjects, which are social studies and history of Singapore. This is one way we can groom our young to have a deeper appreciation of both the arts and the history of Singapore. Perhaps the Minister could explore this idea with the Ministry of Education. Sir, we, currently, have a total of 18 museums and galleries. In the Renaissance City Report, MITA has also stated that it would work with the Singapore Tourism Board to promote arts and cultural tourism "capitalising on opportunities in conferences, conventions and exhibitions." Sir, may I suggest that an all-in-one day pass or season pass be offered to cater to the diverse interest of tourists, which I am sure our 18 museums can accommodate.”
“But for MITA, my concerns are as follows: What else are we doing to improve arts education and appreciation? Is Singapore going to have an Arts School? If yes, when and who are MITA's partners for this project? Is Government's support and funds for arts going to be reduced in this current economic climate? Are the Esplanade and NAC working closely with schools to expose our students to world-class quality arts and performances?”
“We have, as our national pride, Mr Tan Swie Hian, the Singapore Cultural Medallion winner, who has brought Singapore to the global stage recently by being the first Singaporean to be conferred the prestigious World Economic Forum's Crystal Award at Davos, Switzerland. He joins world-renowned artists, like Ravi Shankar and Sidney Poiter. We have many others like maestro Choo Huei, potter Iskandar Jalil and the late playwright, Kuo Pao Kun, who can bring glory to our country with the right system, infrastructure and incentives. Sir, if only just 1%, or approximately 400, of each student cohort gets talent spotted and groomed in an Arts School, we would have created a critical mass and momentum for a snowball effect to boost our creative industry. Let us not be half hearted about it and get the hardware, which is the Arts School established, so that the software, which is our talents, can be installed, running and upgrading all the time, to help us face the challenges of the New Economy at broadband speed! Mr Zainudin Nordin: Sir, I must say that we have done rather well lately in promoting the appreciation of arts. We have clearly demonstrated our support and aspiration to turn Singapore into an artistic and culturally rich society, rooted in our multi-cultural heritage. We still have some way to go. But I am certain we can turn Singapore into a vibrant, global city for the arts with three key factors which are essential in enhancing the current situation. They are infrastructure and facilities; a pool of talents, artists and professionals; and arts education and training. I am glad to hear the initiatives and efforts spelt out by Dr Ng Eng Hen earlier on the part of MOE on arts education.”
“Sir, in our effort to move towards a renaissance city and build a creative industry, one major prerequisite is the presence of a large talent pool to draw from, as well as the need to send a strong signal to cultivate and reward talents. One such signal can come in the form of a formal Arts School, where talents are identified and developed from a young age. I advocate a model similar to the Sports School with a tight timeframe set. The Arts School could emphasise on the learning of techniques and exposure to the arts without sacrificing the basic 3R's of Arithmetic, Reading and Writing. In addition, subjects like arts, history and sociology could also be adequately taught so that artists and people in the creative industry could be up to par with the socio-economic developments. In short, the Arts School is a necessary institutional support and push for the artistically-inclined, not just to learn to build basic foundations in arts, but also to give greater exposure to the world and the world of arts, via different works, techniques, exchange programmes, etc. Graduates of the Arts School should aim to be dynamic, be able to communicate with the global audience and improve their access to markets and career or business opportunities. Similarly, they should be capable of encapsulating society's development in arts and contribute to the creative goods and services cluster. A good example would be the designers behind the Benetton clothes and Swatch watch who are able to communicate their idea on a small canvas and market it across cultures and the globe with much success. Are we able to produce such people? I think so.”
“--- increase tourist visits and add to the vim, wild and WOW! to liven up Singapore.”
“And, of course, in New Zealand too. I could refer you to the table. Sir, there is no guarantee that simplification of the rules itself will build numbers. I would like to suggest that perhaps even a corner be considered to be allocated to the buskers, as in the case of Centre Pompidou in Paris where the area serves as a meeting point for busker-wannabes and veterans, to learn and exchange tips and experience. This place has in fact become a tourist attraction as tourists flock to see a side of the real life in the city. This way, we can encourage both local and international buskers to do a second take on Singapore and, at the same time --- The Chairman: Time is up, Miss Low.”
“Buskers are not allowed to earn their keep. Is it because they are perceived as the traditional buay ko-yok men who in the Chinese movies are half-skilled, half-beggar or conmen? Perhaps, some are. But many modern buskers are serious artistes whose craft demands skills and experience, and I think we should respect that. They are actors and actresses in the theatre of life when no audience is guaranteed. Success depends on their skills to draw and keep a crowd. Obviously, outright soliciting of money should be frowned upon, but money given voluntarily in appreciation of the busker's art form should be perceived as their rightful reward. Sir, we have had successful buskers festival every year since 1997 and have established ourselves as Asia's second largest busking festival attracting some 400,000 participants, both local residents and visitors to Singapore. We can do better. Let me just benchmark our buskers festival to some of the more successful festivals around the world. I present a table that I have just distributed for Members' reference. In the year 2002, Singapore River Buskers Festival saw an attendance of 400,000 and 17 international artistes. The duration of the festival was seven days. In Italy, there was a Ferrara Buskers Festival that attracted 800,000 attendance, but they had 669 international artistes.”
“On buskers, Sir, the street theatre is perhaps the oldest form of entertainment and one that is vital in adding colour and vibrancy to any cosmopolitan city. It is commonly known as busking and it is an art form that dates back to the old days of court jesters and travelling minstrels. Unfortunately, colourful buskers are rather inconspicuous here, and I wonder if the Minister would do more to encourage it. Sir, I surfed the website of the National Arts Council to see what it takes to be a busker in Singapore. There is a litany of do's and don'ts, conditions and indemnities and, of course, the omnipresent fine of $10,000 for breaching the Public Entertainment and Meetings Act. In order to perform in Singapore, first, a busker has to secure a letter of endorsement from NAC. With NAC's endorsement, the busker would then have to seek approval from property owners and then go back to keep NAC informed. Over and above this, any monies received are to be donated to an arts group or charity of their choice after offsetting their transport and other expenses. In other words, we do expect them to perform free. Sir, if we want a vibrant, dynamic and entertaining busking scene in Singapore, we need to relook at some of the terms and conditions surrounding busking activities. Let me state that I am not against rules, but I am for simplifying them. It would make a lot of sense to have a one-stop registration for buskers, instead of two or three stops process. Or what about an online system to keep pace with the e-Government initiative? Some professional buskers are travellers who are in Singapore for just a few days and to devote a full day running around Government buildings is certainly not on their agenda. It would dissuade buskers to be. Secondly, the rule on income.”
“Sir, could I also refer you to the table that I have just distributed, comparing Singapore's arts infrastructure and audience participation with bigger cities like London and New York, as well as similar size cities like that of Glasgow, Hong Kong and Melbourne. It is quite obvious from the figures that Singapore's arts scene lags far behind the cities listed, both in terms of infrastructure as well as software like arts companies and audience. What are the plans that will bring Singapore a step closer and, realistically, when can this objective be achieved? Perhaps to accelerate the appreciation and participation in the arts among the local community, could the Minister consider more internship programmes for both school goers as well as members of the public; more educational backstage tours for locals and tourists; and perhaps to dedicate a week per year to show off local talents, ie, a local talent festival of sorts, in the Esplanade, as the Esplanade is seen as the prestigious performance venue and a great morale booster for all involved? Last but not least, is there any plan to build smaller but good performance theatres, so there could be opportunities for good productions like the highly acclaimed local musicals, Siamese Twins, to have a permanent performing stage? This is, in fact, one of the critical success factors in grooming the performing arts scene like that in London, New York and even Las Vegas. We may not have the critical mass to sustain the shows, but this is also the case in the venues that are mentioned above. Most of them, in fact, depend on the tourist market and have been relatively successful.”
“Sir, I would like to continue this talk on the Esplanade. In the Renaissance City Report 1, the stated aims were to make Singapore into a global arts city. The Esplanade opened with great fanfare last October, signalling that Singapore is geared up to the next sparkling star in the global arts scene. Much money and hopes are on the Esplanade. Hence, I would appreciate it if the Minister can provide some interim numbers on the following: (1) What has been the box office income since opening, and the number of performances and audience it has attracted? (2) The accounts for FY 2001/2002 show that there is a substantial Government grant of over $12 million, for which a total of $7 million was expended. There is therefore an excess of $5 million of Government grant. Could the Minister shed light on how the excess grant would be utilised? I understand that to make it affordable, many of the shows in Esplanade are actually subsidised. What is the extent of this subsidy, and how much will it cost the Ministry on a yearly basis? I also understand that many marketing initiatives have been planned for this year. Would the Minister please comment on what will be the expected results as a result of these activities, and how it will place the Esplanade as a sought-after performance venue vis-a-vis that of Sydney Opera House, Carnegie Hall, and even Royal Albert Hall of London? In addition, what is the amount that has already been spent on the publicity of the Esplanade, and is there any measure of the return? I understand that the international press has actually picked up on the Esplanade quite a bit. Perhaps it is good to share the good news with the rest of Singaporeans.”
“It cleverly blends the refined eastern traditional decor with the Australian outback to make it one of the best resorts in the world. Artistic talents are mobile. How do we then intend to first groom them and then keep them? Creativity also means thinking out of the box, which means out of the norms. How far are we willing to go to tolerate out-of-the-norms thinking and behaviour? What does this trans- late into in the area of censorship? How liberal are we prepared to be? After all, out-of-the-norm behaviour, once endorsed, becomes acceptable and gets proliferated over time to become a norm. Where do we draw the line? Last, but not least, given that the creative industry is a multi-disciplinary industry, is there a supra agency overseeing the execution of the ERC's Services Sub-Committee's recommendation, in order to ensure its success? Given that the majority of the businesses in the arts and creative industry are mainly small and medium size, a national agency could render some help to design, package, market and, even export their products and services. Sir, ultimately, the creative industry is important to us not only as an economic engine of growth, but also enhancing our cultural environment. Hence, I would urge the Government to pump-prime the sector through an adequate framework comprising fiscal measures, employment and social security considerations, as well as the relevant legislation.”
“What are the specific plans to translate art and culture, which are raw materials and undoubtedly the cradle of creativity into successful commercial products or services, without compromising the artistic spirit and culture? Both UK and New England have a deep history in arts appreciation, which has become part and parcel of the society's psyche. It is, hence, not surprising to see a high rate of entrepreneurship in their creative industry. The situation is reverse in Singapore, as years of academic numbers have overwhelmed the development of the creative cradle. What are the specific plans to accelerate the growth of the creative sector given the lack of depth in arts appreciation here? Let me move on to the issue on vision. Does the Minister have a specific vision of a cultural capital in Singapore? If so, does it look more like that of the London of the East, as Minister BG George Yeo has said in the case of MTI, or is it the Switzerland of the East, where artistic talents are evident in the production of almost all goods, from the famous watch industry to musical boxes to church organs? What are the steps that are taken to bring us closer to our vision, and are there any measurable indicators? Singapore has a rich cultural heritage, one that blends the East and West. We inherited the British legacy and are exposed to American cultural imperialism, yet we are very Asian at heart. With an open-door policy, cultures of the world congregate here to give us a unique blend and unique cultural experience and exposure. How can we take full advantage of this blend to create and put a premium on our goods and services? A good example would be that of Angsana Spa Resort in Australia, Queensland.”
“Thank you very much. I appreciate that. Sir, the creative industry is universally acknowledged as an engine of growth in knowledge-based economies. In the UK, the annual value output of the creative industry reaches 50 billion, and is 16% of its GDP. In New England, four out of every 10 creative workers are self-employed, and in Portland, the mean wage for the creative services cluster in 1999 is about 60% above the regional average. Against this backdrop, and Singapore's need to create high-value add goods and services, the arts and creative scene is now thrust into the limelight. Art is no longer for art's sake, but that there is a real economy within. We also call it cultural capital. The creative industry is now prized as a propellant of growth. However, what price creativity? Does it mean that now all artists should learn to produce commercially viable goods and learn to market their products, rather than deepen their experience in the arts so that creativity can come from experiments and expressions from within, or is there still room for art for art's sake? If so, how can we help the creative cluster to overcome funding, housing and exposure issues so that they will not look like the 1960s' image of a poor tuberculosis-stricken Chinese calligrapher who coughs blood and dies a pauper, or the pathetic blind, black sunglass erhu player who is accompanied by his young but, equally, pathetic-looking songstress singing the famous tune of "lok kai mo chin mai meen pow"? In short, how does the Minister intend to strike a balance between the need to commercialise artistic productions vis-a-vis the need to encourage experimentations and expressions of art for art's sake?”
“Obviously, this responsibility falls on all shoulders of society, but schools do have a big role to play, as our children spend a big part of their time in school. I am heartened to know that schools do have school mottoes that expound certain values, but I am mindful that the emphasis on academic excellence does not overwhelm these important pillars of society. Madam, our young today will be the driving force of tomorrow. Given the more than 100 cases of teenage abortions per month, young drug offenders and spotlight on juvenile delinquency, I am afraid that unless we quickly immunise, not insulate, our young, we will have a society of questionable values and behaviour. May I ask the Minister: (1) What is the state of our moral and value education in Singapore? (2) How much emphasis is given to moral and value education in terms of hours in the time table and method of teaching? (3) What is the Ministry's stand on using moral education hours for revisions and catch-ups of examinable or academic subjects when the need arises? (4) Has MOE any plans to step up on values and moral education? Madam, I am anxious about the shape of our future to come. In the light of the pending war, let me quote Dr Viktor Frankl, a renowned psychologist, who survived Auschwitz: 'I am convinced that the gas chambers of Auschwitz, Treblinka and Maidanek were ultimately prepared not in some ministry or other in Berlin, but rather at the desks and in the lecture halls of nihilistic scientists and philosophers.' In other words, if Dr Viktor Frankl was right, then it might be worthwhile to remind ourselves that the impetus for the Holocaust did not come from a military strategy as much as it did from the educated elite, unblushing in their philosophies, on mankind.”
“Madam, what shapes society? I believe it is ultimately the underlying value system that determines the shape and future of our society. Hence, I ask, what then is the value system embraced by our future leaders today? Answer: the onslaught of popular culture, more than any single force in the form of music, movies, television, reality shows, etc, predominates as an influential agent that moulds the character, values and beliefs of the audience, particularly the young and impressionable minds. With technology and keen competition, production becomes an extension of the creator's pontifications of truths and values that stretches beyond the imaginable but, through skilful juxtaposition, portrays them in realistic light to impress and make believe. Over a period of time, impressionable minds do believe. Shows like "Temptation Island" and "Bachelor", songs like, "Cleaning Up My Closet" by Eminent or "Biscuits, Chocolate, Starfish" all have the effect of transcending matters of importance to a point of desacralising almost everything. Other shows teach selfishness and to each his own. In short, over time, the influence of popular culture may corrode society's sense of morality and values, if it has not already done so. 5.30 pm In this modern age of cable channels and the Internet, we cannot stop the onslaught of the media and popular culture. We can, however, imbue in our young a strong foundation of value system through our education system, so that they will be able to make sound value judgments. Values like care and share, values of morality and filial piety, values like frugality and hard work, values like respect for the elderly and authority - they are all pillars of our society.”
“Sir, it is passion, not rules, that can ensure a future workforce that will deliver their work with quality and pride, equipped to deal with the world of tomorrow. I understand that resources are limited and we cannot cater to every single child. But, as we move towards mass customisation, I hope the emphasis would be on cultivating the child, rather than on the school culture alone. Perhaps the Minister can comment on the Ministry's stand on this, whether there is a monitoring system to ensure that schools are committed to provide at least a more generous basic tier of popular CCAs and academic subjects to widen the experience and mix of talents within the school. I concede that while this may not be a problem for primary schools, this is a problem for secondary schools upwards, as choice of and entry to schools are constrained by both grades and travel distance. Three, the creative industry has been identified as a growth engine. What steps would the Ministry be taking to identify, encourage and nurture the development of each child's latent talent? Last, but not least, I would like to focus on financial literacy, or rather the lack of it. Insufficient emphasis on life-skills like financial management can wreak havoc in both the individual's and the State's finances. It is clear from debates on financial literacy and credit that the majority of our population who has gone through a vigorous education system, is not equipped to handle basic and personal financial management. Sir, we have to ask our population to be more self-reliant but part of the responsibility lies with us equipping them with the necessary financial skills. Perhaps the Ministry can consider including basic life-skills, particularly financial management, as part of the curriculum options.”
“Sir, it is commendable that MOE states on its website, and I quote, "That the education system is flexible and caters to every child's abilities, interests and aptitudes, so as to help each to develop to his fullest potential." Just as the industry moves from low value-add mass production to high value-add mass customisation, so must our education system evolve to a more student-centred approach to meet individual needs and talents. In recent years, school principals have been entrusted and empowered with the task of developing their school culture. Unfortunately, many still use the same national benchmarks of academic and other rankings as measurements of their success. As such, resources are channelled to raising academic grades, altering schedules and focusing narrowly on areas which the school does well, for example, a very narrowly-focused CCA. As Dr Jennifer Lee and others have also observed, some schools have too limited a range of CCAs and subjects and have designed limited capacity in non-core areas. I see two problems in this development. One, that schools become too narrowly-focused and hence cannot provide sufficient experience and exposure for the growing child. And, two, students who are interested in a particular field of sports or arts not offered by the school will be deprived of the opportunity to pursue their passion and this may have the long-term effect of moulding him or her into a dull Jane or John. Sir, to survive in a rapidly changing world, other than the 3Rs, we need to help our young cultivate their interest, which can translate into a passion for life, a passion for success. No matter how many As a person can score, the battle is lost if he loses his survival instinct.”
“And links with the real business world will also give it an unceasing flow of ideas and people who are actively engaged in entrepreneurial activities. The combination of both types of entrepreneur hubs, when well managed and networked, will create an "entrepreneur breed entrepreneur" culture. Perhaps 'enterprise hub directors' could also be introduced to network both locally and globally, so that a constant flow of fresh inputs and outputs can be seen here. I hope the Minister would consider and study this proposal.”
“The rule of thumb is that the higher the interest rate, the greater the penalty amount and the earlier the prepayment in relation to the term, the greater the penalty amounts. This is highly unfair to the customer and encourages indebtedness which is contrary towards what we want to advocate in Singapore. Certain states, as Mr Yeo has said, in the US and Europe, have already outlawed the application of Rule 78 if the loan is for more than five years, or for a given period of time. Could the Minister comment on the current practice and whether a review of this rule can be expected, and whether the loan deal could be stated more clearly and fairly to the consumers?”
“Sir, I like to echo the point that my colleague, Mr Yeo Guat Kwang, has brought up on reviewing the Rule of 78 which is commonly applied to car loans. On 22nd January 2003, MAS liberalised its 1995 car loan guidelines to enable 100% financing for the purchase of a car and repayments can be spread over a longer period of time. This created an euphoria in the car market, much to the delight of car dealers and financiers alike. Recent articles in the Straits Times confirmed my suspicion that many car buyers are not aware of the implications of the 'Rule of 78'. And I like to take this opportunity to further expand on the workings of this rule, which Mr Yeo The Rule 78 applies the moment a borrower signs the loan agreement. Be it a floating rate, or a fixed rate, he or she will be legally obliged to pay back all of the principal and all of the interests that will accrue over the term of the loan. If the borrower redeems his or her loan before expiry, the lender would "generously" forgive some of the future accruable interest payments. This is despite the fact that, at the time of redemption, the interest payable for the future has yet to be accrued. In other words, Rule 78 has a pernicious effect on borrowers by way of hidden prepayment penalty. The borrower's disadvantage is heightened by the fact that the banks and finance companies often refer to this practice or the application of Rule 78 as a rebate of the finance charge. To a layman, this can be misleading. In short, without getting too technical, early redemption of a loan at different times for different maturities and different interest rates will produce different penalty sizes.”
“And, two, how are IE Singapore officers chosen, meaning those who are stationed overseas? And what is their role? Sir, to enhance our chances of success, our IE officers must have skill sets that will extract maximum information from the respective countries they are operating in. IE officers must do more than just acting as a facilitator or writer of research articles. They must be more proactive and business oriented, as my colleague, Dr John Chen, has uttered. In fact, our IE Singapore officers must also adopt, not just a high-tech, but also a high-touch approach. I would like to propose that such officers be recruited from a variety of disciplines and have good grounding in sociology, or even anthropology. Frequently, knowing the business can only get one so far. It is knowing the clients that makes all the difference. Hence, the officers must be well versed with the nuances of the country, the key individual players, the economy, government red tape, common mistakes made and how to avoid them. In short, the officers must play the role of our intelligence officers for our local businesses venturing overseas.”
“Sir, I would like to add on to the points made by Dr John Chen regarding the role of IE Singapore and their officers. There are some overseas centres and advisors in some 36 locations around the world. Its role is to help Singapore based businesses enter foreign markets and thereby contributing to the growth and internationalisation of local companies into world-class enterprises. Paramount for successful entry to a foreign market is the intimate understanding of the country. As Sun Tze's Art of War states: 'Know thyself, know thy enemy. Hundred battles fought, hundred battles won.' This knowledge includes its culture, its social and political structures, its business and market structures, and so on. In order to give our entrepreneurs an insight and a headstart, qualitative briefing by the relevant officers of IE Singapore must extend beyond newspaper cuttings and widely available published articles. In fact, IE Singapore, by setting up offices at the various locations, has the economies of scale and is perhaps the best agency to conduct such research and collate first-hand market intelligence that is crucial to the survival of our entrepreneurs. Feedback from business community has been that such pertinent and relevant qualitative briefing had not been very forthcoming. Instead, the experiences were that they have been merely given publicly available reading materials, directory listings of businesses or Government contacts and not so useful information about the country. Sir, we cannot do the business for our entrepreneurs, but we can facilitate our external wing with qualitative market intelligence to enhance their presence in a foreign land. Can the Ministry please comment on what can an entrepreneur expect when they approach IE Singapore?”
“On a separate note, can MTI also comment on how the FTAs can increase the efficiency in our production networks, especially in the context of our high value-add manufacturing and services, and expand on the demands of our new twin engines of growth? On the EU-Singapore FTA, since the Minister commented that it is a very important one to Singapore and it is a very difficult one to conclude at the moment, what is the Ministry doing to overcome the EU's reluctance or focus? Does Singapore present itself as a strong business case for EU? Last, but not least, how can various sectors of the society, ie, parliamentarians, business leaders and others, help to cast Singapore in a favourable light, so that we can be in a better position to conclude the various trade and business agreements with other nations?”
“Sir, may I take this opportunity to applaud MTI's vision and hard work in securing the many FTAs, industry and trade agreements. However, the real work begins when the deals are sealed. By this, I mean that the full benefits of FTAs and other agreements can only be reaped when our businessmen join MTI's bandwagon, to explore all possible business opportunities and take full advantage of it. I understand that this will be MTI's top agenda, but the process must be expedited so as to reap the first mover's advantage, since other countries are also busy concluding similar agreements. Even more so is that a widespread awareness, understanding and eagerness to actively explore business opportunities will help give hope to our people, lift the spirit and mood of Singaporeans. May I suggest some ideas to connect policymakers with entrepreneurs of most, if not all, types and sizes: (1) We could hold various seminars via the associations, and even at grassroots level, so as to increase reach as well as depth. This can encourage entrepreneurship from the very basic level. (2) Organise more target-oriented publicity via the mass media. For example, country-specific opportunities, industry-specific opportunities, and highlight those which enable Singapore to have a comparative or competitive advantage due to lower or no trade duty, charges, etc. (3) Organise more trade missions and exchange programmes to include a wider group of entrepreneurs and participants. (4) Establish liaison office in Singapore and the relevant countries (eg, via IE Singapore), with dedicated staff to help answer queries, provide background research and facilitate high level introductions. Could MTI comment on when they will be rolling out the various programmes and what more can be done?”
“With the experience during this downturn, should we not focus on basic medical so that locals can enjoy adequate medical services at reasonable rates, rather than to up the ante for all concerned? Would it also be better for Singapore to concentrate on building its capability, capacity and experience in coping with the ageing population? Sir, besides attracting overseas patients, another important area where we can look at is the provision of an educational centre or a learning centre for foreign doctors, medical workers and researchers. We have over the years built a world-class infrastructure, systems and best practices. Our physicians and doctors are highly proficient. In fact, we have some of the best practitioners here. A good starting point would be to establish a world-class learning centre that attracts doctors from the region to come here to gain insights on our top-end practices, and have them develop and enhance their expertise here. This will boost our image as a first-class medical hub of the region where not only patients come for our service, but also having a world leading learning centre for the medical profession of the region. Perhaps, with the recent emphasis on education, bio-medical research and life sciences, plus a few medical breakthroughs in recent years, it will not be too farfetched to include in our vision, to fashion Singapore into a hot house for medical breakthroughs.”
“When I first heard of the call for Singapore to be a regional medical services hub, I had a feeling of deja vu. This call was first heard in the early 90s, which saw millions of dollars going into dressing up public hospitals, and words like "restructured", "semi-privatised" and "privatised" hospitals became fashionable. This year, the budget of the Ministry for Health is up by 33.9%, much of which will go into financing of new hospital buildings. While I am hopeful that our efforts this time will be successful, I would like to seek assurance from the Minister that our efforts and resources will not be spent in vain this time. The fear is that while we are building ourselves into a regional medical hub to attract top-end clients from the region, so are our neighbours like Malaysia, Thailand and, very likely, Shanghai. In fact, in 2001, Thailand's Bumrungrad Hospital saw 225,000 foreign patients, which is more than that of all Singapore hospitals combined. Cost was a critical factor as these countries are able to provide good medical services at cheap rates. Talent may be the other, but talents are mobile. Hence, could the Minister comment on: (1) Our competitive edge vis-a-vis our neighbours, and the difference then and now? (2) What are the steps planned to build Singapore into a medical hub for the region? How do we plan to counter this competition and stay ahead? (3) What steps have we taken so far to woo more foreign patients to seek consultation in Singapore? In addition, will this emphasis on high-end service, which means more expensive machines and facilities, also translate into locals having to pay higher dollar for medical services rendered?”
“While many backpackers may be fresh graduates out to conquer the geographical world, many of them graduate to conquer the corporate world subsequently. Therefore, giving them a good impression of Singapore may one day become a deciding factor in the relocation of themselves, or their companies. In recent years, there have been reports of lodges that provide accommodation to these backpackers being closed down due to their inability to renew their licences. The famous Peony Mansion, Lee's boarding house and many other popular backpackers lodge are now history. Many of those around are also in a deplorable state and look more like crammed bunkers with dirty toilets and very little sanitary attention. I have spoken to some of the operators along Bencoolen Street, and they have told me that the premises sit on gazetted land that may be recalled at short notice. As such, it was not worth investing in the place, even though there were profits to be made from running it. Some of the operators' licences were subsequently not renewed, as it was said that they could not meet the standards. Hence, I would like the Minister to comment on whether there is a policy to discourage or encourage backpackers; whether these owners or licensees had, in fact, not met the standards set and hence unable to renew their licences. If the latter is the case, then what measure is MTI taking to help the licensees upgrade and keep their licence? Will there be efforts to grow this market and, if so, what should we be expecting in the near future? Last but not least, could the Hotel HDB concept be expanded to become a backpackers Lodge HDB? 1.45 pm Sir, my next cut is on medical services hub.”
“Sir, each year, the Singapore Tourism Board spends much effort and money looking into ways to attract the big spending tourists to Singapore. Whilst it makes economic sense to attract high tourist dollars, the diversity of Singapore can be appreciated by tourists of all classes. If efforts are made to attract all, I believe the numbers would all add up to sustain Singapore as a top tourist destination in the region. Yesterday, I was delighted to read the Straits Times article entitled "Welcome to Hotel HDB". It is meant to be a sort of budget hotel, aimed at the China market. I applaud the move by the Ministry. Yet, there is another group of globetrotters, who has been somewhat neglected and certainly deserves our attention. They are the backpackers. Perhaps in this part of the world, backpackers are perceived to be "poor travellers", and not much value add. This is not necessarily true. In fact, in Europe, Australia, New Zealand and other countries, backpacking and caravaning is a prized travel choice, and a way of life for some. Backpackers in good numbers can contribute substantial tourist dollars and provide employment for many. In all major cities in the world - London, New York, Paris, you name it - there are niche markets which cater to these backpackers. Backpackers have more to offer than just tourist dollars. Backpackers add to the vibrancy and dynamism of cities of the world, adding colour and flavour to the cities. In many cities, backpackers contribute significantly to the creativity and culture of the place, as they bring along with them different world views and a keenness to exchange ideas at a heartlander's level. Tourists are always attracted to places with all kinds of tourists, and certainly this is not a group to be neglected.”
“Apart from the concern on addiction, the increase in the child's threshold for violence may have other ill effects, like violent behaviour. Since we are in the process of reviewing our censorship regime, we should perhaps look at the classification of games for different age groups, not unlike the NC16 category we have for movies. We should look at what the developed countries have done in the area of alleviating violence in computer games. Sir, the adage that the youths of today are the leaders of tomorrow still holds true. We should spare no efforts in doing something to arrest this increasing trend of crimes amongst juveniles and youths. The problem is complex and Singapore is not alone. Sir, recently, I have been reminded of the story of two British juveniles who lured an innocent toddler and stoned him viciously and left him to die on a railway track, hit by an on-coming train. We are far from that, but we certainly do not want to get there. The Home Team can perhaps take the lead. But the rest of society must join hands. Perhaps the Minister can comment on what and how the community, family and schools can do to: a) Identify worrying signs in youths and juveniles; b) Reach out to help the juveniles and youths; c) Network with various agencies, such as the police and counsellors to help identify our troubled youths; and d) See what else we can do to help. The seeds we sow today will bear fruits tomorrow. We must therefore act fast.”
“Sir, in the recent release of crime statistics for the year 2002 by the police, it was revealed that a significantly higher number of juveniles were arrested in 2002 compared to 2001. There was in fact an increase of 789 persons, or 55.8%. The three offences committed by juveniles - and the police had defined juveniles as persons between seven and 15 years of age - registering sharp increases were shop theft, as Prof. Chin has mentioned, simple theft, and rioting. Shop theft increased by 35%, simple theft by 116.6%, and rioting by 138.7%. Sir, there is indeed an urgent call to look into the possible causes of this worrying trend and, more importantly, what can we do about it. I would also like to advocate that resources be committed to embark on such a research on the cause and effect of this increasing trend. An appropriate sampling of the offenders should be studied with the aim of understanding the underlying causes. From media reports, the crimes committed by youths appear to be more violent nowadays than before. This is again another worrying trend. For many years now, parents and educators were concerned over the access of our youths to materials which are violent in nature. These include movies, TV programmes and cartoons, Internet websites, arcade and computer games. Whilst we may have already banned toy weapons, it is very easy for a child to acquire a formidable arsenal in a computer game to maim and kill. The more he kills, the higher the score, and he ascends to the next level of the game, if he reaches the predetermined score. The graphics and sound effects are very life-like and are designed to keep the child, and even adults, hooked onto the game.”
“And, three, lending and consumer credit activities be included under the regime of the FAA notice, No. 3, which is notice on information to clients and product information disclosure as some financial advisers also carry credit products and services.”
“There are a myriad of terms used by financial institutions - revolving credit, floating terms, fixed, compounding, balloon payment, variable terms, interest chargeable are also divided into monthly rest, yearly rest, and the list goes on. Most consumers are ignorant of these terms, and therefore may not fully understand the implications of the terms. Sir, as a sophisticated financial centre, fianancial institutions should have the best practices in disclosure, not just for investment products, but any product that would impact the personal finances of an individual. Consumers should have the full benefit of disclosure on any type of financial products marketed by the financial institutions, be it credit, investment or protection products, so that he or she can make an informed decision. The lack of such knowledge can wreak havoc on one's finances leading to financial dire straits. Hence, I would like to ask the Minister to consider the following: one, the financial institutions marketing credit loan products to fully disclose to the consumers the impact of interest payments relative to the principal amount borrowed or consumed. This can be done through an amortisation schedule, with separate columns illustrating principal payment, interest payment and outstanding payment. A similar example would be that of the life insurance quotation which a financial institution is compelled to present to the consumers. Two, that the financial institution demonstrates that an explanation has been made to the consumer on the implication of the loan, or credit, with the consumer duly acknowledging that he or she has been advised by way of signing on the compliance document. It could be, say, just at the bottom of the amortisation schedule.”
“Past efforts at liberalising the CPF scheme, encouraging self-investment, hit a very rough patch, not just because of the downturn, but because of the lack of understanding and knowledge. In other words, there is a very low financial literacy rate in Singapore. Financial management, or planning, differs from that of investment planning. The former is about financial life cycle planning and goals planning which look at both short-term and long-term goals. The latter, which is investment planning, is about making money in the short term. Most people confuse the two and focus more on making the money for the short term when they move into any investment instrument. When consumers are more aware, they can ask relevant questions, make informed decisions and place responsibilities for their actions, rather than play the blame game of finger-pointing when things go wrong. When the milk is spilt, there is very little that anyone can do. Hence, if consumer literacy could be focused on, then I believe that market forces are such that when consumer literacy, or financial quotient (FQ), goes up, the professional standards would also have to go up. All the financial professionals would have to work themselves out of the job. Therefore, I hope that the Ministry would consider promoting FQ as a win-win strategy for all and work on it should start as soon as possible. Next, I move on to the cut on loans. With Singapore pushing towards becoming a world-class financial centre, it allows me to note that many consumers are not aware of the terms and conditions surrounding consumer credits and loan instruments. There are two main reasons for this. One, the use of technical jargons by lending institutions; and two, the lack of disclosure.”
“Sir, according to the latest estimates by the Department of Statistics, total household liabilities, in the form of mortgages and personal loans, grown from 118% of annual personal disposable income in 1995 to 174% in year 2001. In other words, more future money is being spent today. Our ratio of household debt is higher than that in the OECD economies, such as the United Kingdom, United States and Japan. Simultaneously, bankruptcies have also grown rapidly. Figures from the Public Trustee show the number of bankruptcies in Singapore to be 2,710 in year 2000; 3,237 in year 2001; and 3,588 in year 2002. It is an increasing trend, and about 300 people are made bankrupt each month for the year 2002. The rise in bankruptcies and the rapid growth of consumer credits are signs of, on one hand, a consumption culture and, on the other hand, the availability of secured and unsecured loans. I would elaborate a bit on the loans part in my latter part. On the part of consumer financial literacy, Singapore is an affluent society, despite the recent downturns. After years of boom and steady growth, it has taught us to earn money, but not manage money. A best selling book in the US "The Millionaire Next Door" expounds certain virtues of wealth management and wealth accumulation; two of which would be, one, frugality; two, lowering your investment and taking responsibility in your own wealth building. But as shown by the statistics, we have obviously not learnt to do so. Instead of building wealth, we are depleting wealth very quickly. In a fast aging society, with falling fertility rates, it would impose a very great strain on both personal and State funds to grant retirement.”
“For example, in the Financial Advisers Act, Part III, an oversight in disclosing a prospectus to a client can land the adviser with a $25,000 fine or a 12-month's jail term. In all fairness, it would be totally unacceptable if the prospectus or funds are deliberately hidden from the client, but this would have been quite unthinkable as the advisory process itself would necessitate product explanation. But in the event that a copy of the prospectus was not enclosed during the delivery stage, or that the client does not take away a copy of the prospectus after signing, would the penalty still apply? Certainly, the intention of the law is deterrence, and it is important. However, not all mistakes are criminal offences and the penalty should send the right signal to reflect that. Perhaps even more dampening is the common perception amongst the professionals that once any client complains against them regarding any investment or insurance related issue, they are already guilty until proven innocent. Can the Ministry put a balance on this perception and assure the industry practitioners that there is a fair investigation process? Sir, I fully support the spirit of the FAA. However, there are some real implementation blues. The cost of compliance and fear of making mistakes may weigh down on the burgeoning industry and kill it in its infancy. Could the Minister consider reviewing the practical issues of implementation of the FAA by refining the definition of the notices?”
“Sir, first let me declare my interest as an insider of the financial advisory industry. Singapore in its drive to be a global best practice financial centre has introduced the Financial Advisers Act last year. I would like to highlight two practical difficulties faced by the financial advisers, as well as their clients. Currently the title "Financial Adviser" is used indiscriminately. There is no differentiation between a full-licensed holder, that is, one who holds all the licences for securities, insurance and other trades, and those who specialise in a particular field. Banks, insurance companies, stock-broking firms, merchant banks and so on and so forth are exempt financial advisers, and therefore representatives of such organisations can also call themselves financial advisers regardless if their qualifications allow them to just market an insurance product or execute a trade for a client, or both. As such, clients may be misguided by the term or even misled by the representation. Although there are disclosure guidelines in place, it is still not the modus operandi here in Singapore and done on a discretionary basis. It would be less confusing, and perhaps better consumer protection, if a differentiated use of the title "adviser" be put in place, for example, to have the title as Financial Adviser (Insurance), or (Securities), or (Full Licence). This will help clients better to understand the adviser's qualifications and roles. Second, many financial advisers have also expressed deep concern about the steep punishment meted out for small mistakes. While I am in full support of the need to protect consumers, I would also caution against an over-kill of steep rules and punishment.”
“Sir, I would like to withdraw my cut on trust industry.”
“In short, would the Minister review the exemption of foreign employment income earned abroad, the NOR scheme and perhaps give further clarification on the headline tax of 15%?”
“OK. Can I then move on to the headline tax of 15%?”
“However, the feedback from the business community is that in Hong Kong, where tax rate and days-in and days-out incentive is attractive and easy to manage, it is still perceived as far more competitive. This is in spite of the recently announced increase in the personal tax rate to 17.5% in Hong Kong. In addition, where the conveniences of communication links would reduce the necessity to travel thus saving business cost, the requirement of 90 days may place an unnecessary constraint on employees who may have a genuine regional or global role, but for one or two years, they are spending less than 90 days outside Singapore. Second, there is also the five-year limit. Expatriates whose services and talents are still required after five years are probably those who are better value added to the company and whose stay should be encouraged. They are also mobile and sought after. But the five-year limit de-incentivises the State. It could perhaps be reviewed. Sir, again, comparing ourselves with Hong Kong, they are one of our largest competitors as regional headquarters. Bearing in mind that regional headquarters are essentially service operations, relocation is not difficult. Most regional headquarters operations would also absorb an expatriate's taxes as part of their employment perks and therefore form part of the employer's cost.”
“Sir, the Budget to exempt foreign income gives exemptions on dividends, branch profits and service fees, but does not cover employment income earned from abroad. By exempting all employment income brought into Singapore, it will remove the uncertainty and administrative inconvenience of individuals having to prove they are migrants who apply for the Not Ordinarily Resident (NOR) incentive, or claim foreign tax credits. In the case of employment income, round tripping should not be an issue. The revenue lost to Singapore, however, if any, should also be insignificant as these funds are not likely to be remitted to Singapore. With an increasingly globalised workforce and business environment, many Singaporeans may also have multiple income sources, including earned income from abroad. Exempting foreign employment income would encourage locals to venture outside Singapore and, at the same time, the additional funds remitted back into Singapore may also help to boost the wealth management industry in Singapore. Could this be considered? In the NOR scheme, where there are concessions for migrants which exempt foreign income, it applies only to first-time foreigners to Singapore. They do not attract returning Singaporeans and foreigners who may have the needed skills and talents to relocate to Singapore. There is also uncertainty in the application of the scheme itself. Let me divide it into two categories of difficulties. One, on the conceptual issue; and two, on the implementation side of things. The key difficulty in the NOR concept itself is its numerous administrative and technical hassle. First, the minimum 90 business days outside Singapore. It has always been argued in this House that Singapore's personal tax rates are sufficiently competitive.”
“This requirement may inadvertently cause unintended financial hardship for the deceased family as they would have little or no access to any of the assets or liquidity under the name of the deceased until probate is granted. The average time for a grant of probate, I suppose, is about a year and, of course, more for complicated cases. The loss of a breadwinner through death can place the family in financial disarray. Losing a loved one is already traumatic. The Estate Duty Act just compounds the despondency of the deceased's family. Sir, I understand that the purpose of estate duty is wealth redistribution. But given a projected collection of $86 million, a whole administrative office that needs to be maintained and sometimes even hardship on families who would need the liquidity when the main or sole breadwinner is deceased, could the Minister do a holistic cost-benefit analysis to determine the relevance of this Act?”
“Sir, in our efforts to promote the personal wealth management and trust industry, we could perhaps reconsider the Estate Duty Act. As Mr Andy Gan has pointed out, our neighbours in the region had in recent years, one by one, repealed their Estate Duty Act. Given the recent amendments made to the Act and very generous exemptions on both moveable and immoveable properties, ie, $600,000 for cash and equities, and $9 million on residential property, the estate duty collected for year 2002 has been estimated to be at approximately $86 million. It is a small sum, considering the fact that the Government has to maintain a department to administer this function. In order to attract individuals to bring their wealth into Singapore, perhaps it would be a disincentive to have estate duty. The current estate duty only exempts $600,000 in cash, which is hardly an encouragement for foreigners to bring their wealth to Singapore. This amount is big for those who have little, but small for those who have a lot. In any wealth management industry, the sensitivity to leakages on returns in the form of taxation and duties would be of paramount consideration. Hence, to build a world-class wealth management industry, we can remove such impediments to wealth generation. But perhaps an even more compelling reason for the Minister to consider repealing the Act is the fact that the majority of Singaporeans would not be liable for estate duty. However, the Act itself can place an unintended burden on the deceased's family and estate. The Estate Duty Act will require a grant of probate and/or letter of administration before a deceased's estate can be settled or disbursed. This would mean the freezing of assets until the probate is granted.”
“This will bring both decision makers closer to the ground, provided that the structure is kept lean. Sir, in the past two days in this House, we have consumed western medicine, eastern medicine, psychotherapy as well as physiotherapy. Are we now ready to give birth? Sir, I believe that when the mind speaks, the body listens. The challenge is whether we can connect our mind (which is our leaders) to our body (which is our people), so that we can walk the talk as a nation. Our mind needs a loud and clear vision, so that our body will align itself to the purpose. Our people need a mental picture. If I could pose this question to our Finance Minister, if you have a piece of clean canvas today, what would be the picture that you would paint on it? We have no tradition in demonstrations, but we have a good track record in campaigns, which have helped built our nation. I hope that in the next few months, campaigns depicting our visions and goals, best done in pictorial forms, could be launched as a marketing effort to align our mind and body. Ultimately, we do not want visions embossed on paper, but we want visions embodied in the daily lives of every resident in Singapore. Together, we stand; divided we kang-kor, meaning we fall. Mr Speaker, Sir, there is an old Chinese proverb that says `we cannot help the birds of sadness flying over our heads, but we need not let them build nests in our hair'. In fact, if we look beyond, there is a silver lining, and there is blue sky. We have a lot more sources and network than that of our forefathers who came from afar. As we stand at the crossroad of our third phase of growth, let us emulate the undying spirit of our founding fathers to be industrious, to be frugal, and, most of all, to be hopeful. Sir, I support the motion.”
“Yes, Singapore does not have a hinterland as in the case of Hong Kong and China, but our `hinterland' is located within the seven-hour flight radius, facilitated by high-tech connections and the successful Free Trade Agreements and bilateral trade and business agreements concluded. Thanks to the hard work and vision of MTI, we have cause for celebration, and opportunities await at our doorstep. It is now up to the Government to spread the good news, and the entrepreneurs to spread their wings. Finally, on the public sector. It is heartening to note in the Finance Minister's Budget Statement that the public sector will continue to simplify its rules and procedures and cut red tape. However, it is not just the rules and red tape that need pruning, but the necessity to urgently cultivate a pro-business, pro-customer service culture as we move forward. Obviously, deciding to transform is easy, but implementing it is difficult. The policymakers may have the will but the civil service must be prepared to `stick their necks out', stand on the side of business to understand the desired outcomes sought by the policymakers, and not get trapped in the process of things. As our civil service grows, the expanding midriff and layering distance the policymakers from the customers, and response time could be slowed. Many business and ordinary folks have been frustrated with standard replies and follow-the-rule-book attitude. Playing it safe becomes the name of the game, as no one wants to be held accountable for their actions. Hence, I applaud the setting up of the ministerial committee on the service industry, headed by Deputy Prime Minister Lee, and the ministerial committee on entrepreneurship under Minister of State Raymond Lim.”
“Perhaps, in my opinion, the single biggest group that will benefit from this Budget is the SMEs. The Budget is consistent with the Government's effort to proactively develop a higher level of entrepreneurial activity in Singapore. But perhaps we should take a reality check and ask: where are we now? Over the years, various international rating agencies have consistently rated Singapore highly for its infrastructure and pro-business environment. Yet in the Global Entrepreneurship Monitor Report 2001, published by the London School of Business and Babson College, Singapore was cited to be having one of the lowest rates of entrepreneurial activity in the 29 countries surveyed. There seems to be a disconnect somewhere. Have we created an environment where it favours foreign investors and GLCs over local SMEs? Or is it that the rewards of labour far outweigh the risk of entrepreneurship? In short, have we inadvertently become a victim of our own success? Mr Speaker, Sir, in any economy, there are essentially four factors of production - land, labour, capital and entrepreneurship. In Singapore, the risk reward ratios of these four factors are out of balance. The rewards for land and labour far outweigh that of entrepreneurs, thereby creating disincentives to entrepreneurship. We will need to re-balance the equation to make entrepreneurship an attractive career option. As long as reward ratios are out of balance, then it is going to be difficult and an uphill struggle for us to encourage entrepreneurship. Access to capital could also be improved, especially for start-ups and those in the emerging and expansionary phases of growth. At the end of the day, businesses move to where there are more business opportunities and where money can be made.”
“In the past, emperors and sages feared living too short a life. Today, many people fear living too long. The concerns of healthy living and illness funding are frequently heard. In fact, market talk has it that it is better to die than to fall sick in Singapore, due to high medical cost, amongst other things. Hence, I applaud the Government's helping hand in introducing and encouraging various medical and long-term care schemes like ElderShield, MediShield and, most recently, the portable medical benefit schemes. Knowing full well that there can only be limited success if left to market forces of demand and supply, the decision to make premiums payable via the Medisave scheme is a brilliant move. But more can be done. Here, I would like to support Mr Yeo Guat Kwang's call to widen the scheme. But in addition to the suggestions he has made, I have also been told that many Singaporeans are contracting one form of critical illness or another at a younger and younger age. As such, critical illness insurance premium is indeed amongst the most expensive forms of insurance, and it could be argued as probably one of the most important forms of insurance. Why? Because people do not necessarily die from it, but it will certainly make them a lot poorer. Critical illness does not work the same way as medical benefits which are indemnity schemes. Critical illness policies pay a lump sum upon diagnosis of a critical illness. Hence, I propose that the Government seriously consider setting up a national critical illness cover or allow critical illness policies to be purchased via the Medisave. This way, the drawdown on a person's limited resources could be better managed. Next, after we have talked about the people sector, I would like to move on to the private sector.”
“Like fire, it is dangerous and damaging to those who are ignorant. Many CPF members saw it not so much as a way to grow their nestegg, but a way to make some money and cash out immediately from the profits. Alas, the fire proved too hot for handling and many got their nestegg burnt. They got barbecued egg in burnt nest instead. While some may be wiser after losing their money, many remain confused and put the blame on CPF or friends who have advocated the investment. We need to do more to help Singaporeans wise up in the world of financial management. It is not rocket science, but it is no ABC either. I have advocated many times in this House, that financial literacy should be made a priority to increase the financial quotient (or FQ) of Singaporeans, so that we can cope with the ever complex world of investment, and the urgency of retirement funding. Next, let me move on to the home purchase fund. The CPF Board also calls the CPF scheme a `home ownership fund'. But is this really so? Upon closer examination, it looks definitely more like a `house purchase fund' or a `property purchase fund'. Let me explain the difference. While a home purchase fund would focus more on the roof over the head for a household, a house purchase fund works like a property investment fund, where a basic roof is not the purpose, but the profit of the purchase becomes the primary objective. This is, in fact, the single most important fuel that fired up the property boom up until 15th May 1996, when the capital gains tax was imposed on property purchase. This is one way to place greater restraint on fund use. CPF as a `home purchase fund" is fine; but as a `house purchase fund' or a property investment fund, there will be no end to the property chase. Next, on the Medisave fund.”