R Dhinakaran
Singapore
“With a strong Singapore Core that is economically resilient, we will build a strong and cohesive Singapore body. Singapore has come a long way in these near 50 years with the right fundamentals and conditions.”
“We wish to commend ACRA for its time and efforts in obtaining comments from the public, as well as holding dialogue sessions with professional bodies, including the Singapore Association of the Institute of Chartered Secretaries & Administrators (SAICSA), the Institute of Singapore Chartered Accountants (ISCA) and the Law Society of Singa…”
“I would like to propose that we should look at the transport companies like healthcare institutions which operate not on profit or loss basis and receive support from Government. This way, at least, it is neat and clean and is not torn between the objectives as a private company and obligations of a national service provider.”
“Further, I would like to suggest that for such an assistance scheme, which could become a national initiative to grow our population, we should award it universally to all young couples and, like in the Pioneer Generation Package, not base it on any form of Page: 66 means-testing. We need Singapore children, rich and not rich alike.”
“The Government should help them in this regard to give them grants and the expertise from our Government agencies on developing R&D, commercialising it and also to develop and market their own brands on the global market. This will also help SMEs build their revenue streams so that they can better cope with the costs.”
“Thank you, Madam. I thank the Acting Minister for the explanation. I wish to ask a supplementary question on whether the Ministry was going to moderate the recruitments in the other source countries which MOM had been concentrating on in the past, besides China, India, Thailand and Bangladesh.”
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“Thank you, Mr Deputy Speaker, for allowing me to speak on this Bill. This Bill will play an important role in strengthening the protective layers around Assisted Reproduction Technology (ART) and reassure parents going into it that there is enough legal cover to assist them should anything go wrong. Page: 87 I feel that as we try to encourage the birth rate in Singapore to improve, we should also focus more resources into making assisted reproduction and adoption as attractive and viable options. This Bill certainly helps us work closer towards that goal as well. I only have two minor points to suggest that may help in the overall effectiveness of this Act. Firstly, in the section of interpretations, on the definition of "de facto partner", I would like to suggest that the condition that the gestational mother be in a live-in relationship with her partner at the point of their application of ART be inserted into this section. This provides some certainty that the eventual parents of the child have taken a mature and responsible decision of having the child and also to provide some certainty that both parents will have joint domestic responsibility of the child eventually. My other point refers to section 10 of the Bill, which constitutes the application to determine parenthood. In sub-section 7(b) of this section, it has specified the factors that the Court may use to consider the welfare of the child to determine the parenthood of him or her. Earlier in the Bill, it was also provided that the Court may choose to declare that the "de facto partner" of the child's mother as the father even though he did not consent to the gestational mother undergoing the fertilisation procedure initially, but did nevertheless, act as if he had accepted the child.”
“Sub-sections (1) and (2) of section 8 of the Bill lists someone who has possession, custody or control of any property belonging to any terrorist or terrorist entity; or has information about any transaction or proposed transaction in respect of any property belonging to any terrorist or terrorist entity. Therefore, I propose that any person who contravenes these sub-sections, be made liable to pay a fine higher than the proposed $50,000 currently specified in the Bill. Similarly, the fine penalty for those who disclose information that may prejudice the investigation should be higher than the $30,000 proposed to act as an effective deterrent. In conclusion, I would like to emphasise that the threat of terror is a serious one and, so, there is every reason that harsher penalties should be considered to act as strong and effective deterrents. Besides increasing this deterrent, it is Page: 57 also important that the Bill be expanded to include the act of threats, conceptualising terror and even housing terror suspects. Thank you, Mdm Speaker, I support the Bill.”
“I strongly advocate that the Act include a strong deterrent for such individuals to make such threats, even if done in jest or for fun. We must dissuade such individuals in carrying out such irresponsible actions, and the law is one tool we can use, besides other avenues, including education. In terms of providing property for terrorist purposes, I wonder if it would also be useful to specify clearly in either section 4 or 5 of the Bill that to house a terrorist, or to have reasonable belief that the person is involved in terrorist-related activities, is also an offence prosecutable under the Act. Clause 3 of the Bill seeks to increase the maximum fine for various terrorism financing activities as set out under the Act. This is to align the fine amounts with the money laundering offences under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act. I would argue that the money laundering offence to aid a terrorism act could potentially lead to grave consequences – and, in many cases, more detrimental impact than in offences to aid corruption or drug trafficking. Without the risk of suggesting a hierarchy in crimes, I would urge the Minister to consider raising the fine amount for the various terrorism financing activities to be higher than the $500,000 proposed in the Bill, based purely on the potential damage this action could cause. While I am happy that the Bill provides for protection of the identity of the whistle-blower or informant, I also think that a stronger deterrent must be established to complement the incentive of protection.”
“Mdm Speaker, thank you for allowing me to speak on this Bill that will help to protect the society and strengthen our security against a serious threat. Terrorism has today become a real and persistent threat in our society. And although it is not new, as acts of terror have been recorded during previous episodes in history, we can all agree that terrorism has now become more audacious in its attempts, both successful and unsuccessful, as well as more permeating due to the sheer volume of the movement of capital, people, goods and services and information, due to globalisation and the IT revolution. In Singapore, we have been fortunate that we have not directly felt the brunt of this ugly truth but we should not take this for granted. In combating terrorism, addressing its financing is a critical measure. Arguably, the objective of terrorism is to strike fear in the hearts of societies. I refer to section 2 of the original Act, where a terrorism act has been defined. Although the use of threat has been listed as an act of terror in sub-section (2), it would be useful to expand this definition to include the act of conceptualising such threats. This ensures that the act of actually planning such threats can also be brought under the law and made liable for prosecution. As has been seen in the recent examples in Singapore as well, individuals make threats to our society as practical jokes, or to satisfy personal vendettas. If the global trend in this can be relied upon, we may see a higher incidence of such threats made in Singapore, that could not only strike fear in the heart of our society, but also to disrupt the provision of essential services, including the Page: 56 Police, armed forces, transportation or medical services, to name a few.”
“Mdm Speaker, I thank the Minister for the response. Which of these sectors include Mutual Recognition Agreement (MRA) to recognise the professionals in ASEAN?”
“The annual report card should then also score the Town Councils on its ability to do this so as to encourage them to move towards these better governance practices. We can certainly strive for our Town Councils to reach this goal. Madam, I also do not believe that our Town Councils should be handed back to the MND or the Government to be centrally regulated. I think some political competition in this regard is healthy and should benefit the residents. But the Town Councils Act should be amended to better safeguard residents' interests in this regard. I suggest that the Town Council, when planning to engage contractors or vendors to provide any form of maintenance services or purchase of products and services, it, too, should follow set guidelines for tender processes as prescribed by MOF for all Government bodies. This will address any concern of related parties being involved so long as they can qualify the clear criteria for tender processes. This would help create an additional layer of safeguard and help nudge the Town Councils towards greater governance practices. I believe, with these added deterrence mechanisms in place, greater transparency and governance standards can be achieved, enabling the Town Councils to deliver public services efficiently and in a competitive manner. As such, I would like to propose that the Minister consider an amendment Bill that would aim to entrench some of these measures into the legislation. 4.59 pm”
“At this point, I would also like to raise, for this particular case, to reduce any perception of conflict of interest. It would be better if the PAP Town Councils had set up AIM as a non-profit entity rather than as a corporate for-profit company, especially when its directors were not remunerated, nor does it seek to earn profits and its fees were only to cover operational costs. Would it not be better if the Town Councils set up non-profit bodies to play these roles so that it is clear that the dealings do not come with any profit motive for the organisation or its directors? Regulating the Town Councils. Ideally, however, the political ambit in which the Town Councils exist should not become an excuse for poor corporate governance. According to the Town Councils Act, it is designed to serve the public, much like other public organisations do, and so why should it not be subjected to the same corporate governance standards that our public and private organisations, including charities and societies, are made to adhere to? I feel that Town Councils currently operate in this slight ambiguity of roles – whether political or public. If they are public, then they should also be made to adhere to tight corporate governance procedures, including reporting processes and requirements, conflict of interest, and to include these in their annual report card which is being, anyway, done. The ideal scenario for the Town Council should be that their processes and operations are far removed from any traces of conflict of interest and so even when they deal with vendors, these vendors should be as independent as possible with little or no association to the Town Council members or the political party.”
“Firstly, even though there was nothing wrong with the transactions between Action Information Management Pte Ltd (AIM) and the PAP Town Councils, the fact that they had business dealings with a company, which was set up by the PAP in 1991, and its directors who were their very own party members, could raise questions on whether there was any conflict of interest. MAS has issued clear Code of Corporate Governance recently last year for all the listed companies in Singapore. And Town Councils, being in the business of public service, may follow the same. The key principle being that Town Council Members or the Boards who are either key decision-makers or influencers of decisions must not do so, with an intention to help own or related parties at the cost of the Town Councils and its residents. Since the nature of the Town Councils is political in nature, I believe there will always be this competitive, and therefore confidential, manner in which the operations of the Town Councils are carried out. In such circumstances, Town Councils and their management may choose to deal with entities and individuals they are more familiar with and who are more trustworthy. I understand that such practices are not limited to just the PAP Town Councils but also others. If such practices are prevalent, and the political nature of the Town Councils gives reason for them to be, then I suggest that more control systems and transparency on such practices must be institutionalised. Going forward, the legislation should be amended to reflect that any conflict of interest, not just involving a member of the Town Council, but also if dealing with his political party or family, should be declared and this information should be made available also to the public.”
“Mdm Speaker, I thank you for allowing this report to be discussed in Parliament and for allowing me the opportunity to speak on this subject. It is heartening to note that the Prime Minister has sought an independent review which MND has conducted briskly in putting together this report. It is great to know that we can always rely on a strong civil service to play an objective and impartial role whenever called upon. I have read the report and looked at the set of circumstances within which MND has based its findings. Rightly, there is nothing wrong that has been done as the PAP Town Councils did not violate any rules nor was there any misappropriation of funds nor the residents' interests compromised. So, in that sense, we cannot hold the above-mentioned Town Councils responsible for any misdoings. But there are some important lessons to be learnt from this episode, and since the structure and set-up of the Town Councils also fulfil a political objective, we may come across similar cases again in future involving any of the Town Councils. Therefore, I feel it is important to fix some things at this juncture before we move ahead. Corporate Governance. The question we have to ask is, even though there may not have been any illegal or unlawful dealings, was there anything about this whole episode that could be improved so that, in principle, even a chance insinuation of any perceived wrongdoing can be avoided in the future? In terms of governance, I feel that there are things that could be improved on, so that all Town Councils can in the future abide by these guidelines.”
“The Bill also provides for the Government to reimburse the employer, if certain requirements are met, which grants the employee paid paternity leave, shared parental leave, or adoption leave. While the state's financial outlay is generous in this regard, I hope it does not send the message that raising a child is the state's responsibility, and that the state has to compensate employers for the time that their employees are not at work because of maternity, paternity, Page: 96 adoption, or childcare leave. Madam, I welcome the amendments even though laws and incentives, while necessary, are not sufficient to make for a society that is nurturing of children. More importantly, I hope we can do more to remove any remaining discrimination – be it against pregnant women or children of unwed mothers. Every Singaporean child is precious and our laws and policies must be unequivocal about that. 6.00 pm”
“In other countries that have treated single mothers and married mothers alike in terms of benefits, indications are that it promotes irresponsibility on the part of the unwed fathers and mothers, with the state and taxpayers picking up the tab. Even if societal norms are not in favour of doing more for single mothers, let us not have the children suffer "collateral damage" of their unmarried parents' action. How can we ensure that such children do not bear the legacy and burden of disadvantage? The legislation for which this House is now considering amendments to is called the Child Development Co-Savings Act. We should not let high principles to blindside us as to whom this legislation is for and what it is all about. It is fundamentally about the Singaporean child, regardless of his or her race, language, family background and the like. Madam, I note the Acting Minister's assurance last month that his Ministry will consider the needs of an unwed mother's child to determine the appropriate assistance package for the child. Nevertheless, as a society, we must endeavour to endow the child equally, regardless of whether he/she is adopted or born to married parents or an unwed mother. Madam, although the leave enhances the overall leave entitlements to parents, the crucial question is whether working parents will be able to utilise them without fear that it will prejudice their job prospects such that they feel "pressured" into not consuming their leave entitlements. A pro-family environment requires employers to be on board and buying into the need to create a supportive environment that is child- and family-friendly.”
“While not under the ambit of the Bill before us today, we cannot avoid the issue of unwed mums and the reality of the Child Development Account (CDA), which is under the purview of this Act. The CDA is used as a conduit for the disbursement of the Child Development Credits. Further, the Child Development Co-Savings Act (CDCA) seeks to ensure that such Credits are used in ways that would directly benefit the child. Madam, I appreciate that inroads have been made for unwed single mums to have the same parental leave benefits as their married, divorced, or widowed counterparts. However, unwed mothers do not benefit from the Baby Bonus scheme and the Marriage and Parenthood benefits. In addition, they get eight weeks of paid maternity leave, less than their married counterparts. I appreciate and support that the state policy is to promote families, conceived as one where a family unit comprises a man and a woman married to each other and a child or children. This is notwithstanding that societal attitudes have become relatively more liberal and tolerant of alternative household formats. The challenge pivots on how the state can uphold this policy without discriminating against children born to unwed mothers. These children did not choose to be born. These children are Singaporeans as well – they have a stake Page: 95 in Singapore, and we have a stake in their well-being. How do we ensure that such children are not disadvantaged or have the disadvantages of being in a single parent household from being magnified? I appreciate that there are no easy solutions. Every Singaporean life is precious, relatively more so now given our demographic imperative.”
“If the couple agrees that the father should spend more time with and caring for the newborn, why not give that couple the liberty to split the wife's 16 weeks of maternity leave, with the father taking on anything between one and eight or more weeks of shared parental leave? Mdm Speaker, as it stands, how we package our leave schemes can reinforce the mindset that fertility decisions and childcare responsibilities are almost the sole preserve of the woman. This, in my view, has partly contributed to our low-fertility rates, with childcare duties being primarily borne by women. Let us not forget that the Singaporean women, like her male counterparts, are Page: 94 well educated and have careers of their own. A paternalistic approach will do us more harm than good in terms of trying to engender a pro-family environment. On adoption leave, the Bill seeks to amend the Act to mandate employers to provide up to four weeks of Government-paid adoption leave for female employees who have adopted a child and meet the eligibility criteria. Madam, I would like to ask the Acting Minister for the policy rationale behind giving mothers of adopted children only four weeks of leave. In the case of an adoptive mother, the need for her physical recuperation is not an issue. However, there can be no denying that the need for the adoptive mother and the adopted newborn to bond is just as crucial, if not more so. There is also the need to care for the adopted newborn. Therefore, given the differential entitlements where leave is concerned for natural and adoptive parents, are we sending the signal that an adopted child is valued less, or that adoption is not encouraged? Madam, I would now like to discuss the issue of treatment of unwed mothers.”
“This provision of shared parental leave is significant and reinforces section 46 of our Women's Charter (Cap 353), which was remarkably innovative when the Charter was first enacted more than 50 years ago in September 1961. As a society, we seem not to give sufficient recognition to section 46(1) of the Charter which states: "Upon the solemnisation of marriage, the husband and the wife shall be mutually bound to co-operate with each other in safeguarding the interests of the union and in caring and providing for the children." Section 46(4) of the Charter reinforces the theme of equality in a family unit. It reads: "The husband and the wife shall have equal rights in the running of the matrimonial household." Given the need to have fathers more involved in the care of newborns, I welcome the long overdue introduction of paternity leave. The Bill introduces one-week Government-paid paternity leave for a male employee who is the natural father or adoptive father of a Singapore Citizen child born on or after 1 May 2013. With the amendments, a couple who are the natural parents of a Singapore Citizen child would have 16 weeks of maternity leave and one week of paternity leave between them. Why not let a couple decide how to allocate the 17 weeks of leave between them? Can we consider moving away from unique leave schemes for mothers and fathers, and graduate towards a broader understanding of shared parental leave? Parents should have the autonomy to decide how they would like to utilise their leave to better tailor to the circumstances and needs of each household.”
“Ultimately, all stakeholders need to see that a pro-family environment is to their advantage, whether it is the Government, business or society. The challenge is to have the various stakeholders to look long term. Madam, I welcome the proposed amendments to enhance maternity leave protection. The move to provide working mothers with maternity benefits at any stage of their pregnancy should they be dismissed without sufficient cause or be out of a job on grounds of redundancy is to be welcomed. The current legislation provides protection for a period of six months before delivery in the case of dismissal, or in the case of job redundancy within a period of three months before delivery. In this regard, I hope the Government will pursue all cases of unjustified dismissal and redundancies of pregnant women with determination. Unscrupulous employers should not get away so easily. In this regard, the proposed fines under the Employment Act strike me as being on the low side. Discrimination is a scourge, and the Government should consider naming and shaming the recalcitrant employers who discriminate against pregnant employees. Otherwise, we will be fighting a losing battle against the stereotypes of pregnant women as lesser employees at the workplace. Women should not have to decide between their jobs and being a mother. Sure, some compromise is needed but it need not be an "either-or" option. Page: 93 The various clauses in the Bill that relate to shared parental leave are welcomed. This introduction of shared parental leave provides for a working father to share one week of the mother's 16 weeks of maternity leave, subject to certain requirements.”
“I think we need to appreciate that regardless of when the baby is born, any parent adopting a child will need to spend some time with the child to familiarise and acclimatise the child to new surroundings and build new bonds. So, my suggestion is that if the parents adopt a child of up to two years old, meaning the child is still an infant, then the parents be allowed to take their maternity and paternity leave not in the 12 months from the date of birth of the child, but in the 12 months from the date of adoption of the child. For parents adopting children of more than two years old, perhaps the maternity and paternity leave can be reduced and it can also enforce its criteria to be in the 12 months within the adoption of the child. Adoption is, indeed, one alternative source of expanding families in Singapore, particularly for those who are unable or unwilling to use traditional or medical conception methods. So, we Page: 92 should facilitate adoption and not keep the door only half open. These measures are only part of the overall solution to increasing a pro-family and pro-parenthood culture in Singapore. But, certainly, by entrenching such measures in our legislation, we are taking the right step and sending appropriate signals to all segments of our society. Thank you, Mdm Speaker. On the whole, I support the Bill. 5.50 pm Asst Prof Tan Kheng Boon Eugene (Nominated Member): Mdm Speaker, the primary aim of the Child Development Co-Savings Act (CDCA) is to encourage married couples to have more children, with the Baby Bonus and Leave Schemes being the primary drivers. But it will take more than the proposed changes in the Bill before us today to create a genuinely pro-family environment in Singapore.”
“If there was a clear whistle-blower policy which protected their identities, I think transparency will be better achieved and, hopefully, create a strong deterrent against deviations in the first place. I feel such a step will help protect the sanctity of the pro-parenthood measures and help achieve their intended outcomes. It is important that we recognise that these measures are done to help prop up birth rates in Singapore. It is hoped that some of these initiatives, particularly allowing parents to spend more time with their young children while still receiving an income, will help encourage them to take a step forward in starting or expanding their families. While we try to entrench some of these measures into our legislation, I hope we also recognise that more can be done to achieve greater results in this regard. Take adoption, for example. I applaud the Government as it has decided that parents who adopt will also be accorded maternity leave, although for a shorter period. Nevertheless, this is a step in the right direction. However, this Bill suggests that the maternity and paternity leave be allowed in the first 12 months from the date of the birth of the child. I would like to point out that for an adopted child, some adaptation needs to be allowed here. For starters, not all parents may adopt children at the time of their birth. It could be possible that the parent adopts the child when the baby is already many months old, possibly even a year old. The parents who do so will be excluded from maternity or paternity leave since they have already passed the 12-month criteria. And if this is, indeed, an important determinant, it would push adoption demand for newly born babies and perhaps result in older babies being neglected by potential adopting parents.”
“Such strong penalties will deter employees from going down this road in the first place and also protect the employers from incurring such unnecessary costs. With these mechanisms in place, I am sure that the confidence in these pro-parenthood measures will be preserved and kept high. But I recognise that confidence has been kept from both sides and that adequate and equal effort should be made that both employers and employees are protected. To uphold the sanctity of these pro-parenthood measures, I suggest that it is important to not only promote transparent practices and ethical and accurate representation, but also to encourage red-flagging contrary practices. But for this to happen, there must be clearer protection of those who come forward to report such deviances. What I am asking for is a clear whistle-blower mechanism which will protect those who dare come forward that these policies are not being adhered to or abused. For instance, should an employer not be practising these measures and unfairly deprive its employee of these privileges, the question still remains if the employer will be reported to the Government. Will the employee concerned or someone associated with the company risk losing his job in reporting this incident? If there is a whistle-blower policy, then those who surface such deviant practices will have more confidence in coming forward. Similarly, if an employee is misrepresenting information and abusing the pro-parenthood privileges accorded to an employee, then he or she should be reported. But will any colleague, relative or friend come forward knowing that Page: 91 it may jeopardise his or her relationship with the alleged employee?”
“Mdm Speaker, thank you for allowing me to speak on this Bill. The amendments contained in this Bill are of immense importance nationally as it helps address a persistent problem that has been affecting our country for a number of years. And if not addressed, the issue of low birth rate may continue to undermine nationhood and economic growth in Singapore going forward. I would like to make some key points on this Bill that I feel are relevant. Employers here have generally been accepting and supportive of the measures that the Government has announced in encouraging a more flexible work Page: 90 arrangement and even to increase the paid maternity and paternity leave for parents. We must be cautious that in trying to entrench some of these measures in legislation through this Bill, that we do not make it too onerous or unnecessarily burden employers with the mandated measures. What I really mean is that while we proceed with these measures and hope that they result in the desired effect, we must ensure that employers receive adequate protection. I am encouraged that the Government has taken responsibility of bearing the costs of the mandated leave but there are other costs that employers may be exposed to. Chief among these is the possibility of employers being misled or misinformed on information from employees on these measures. I would like to suggest that since we have enforced in this Bill that errant employers be taken to task, a similar mechanism should also be enshrined for errant employees. Hence, if any employee is found to be supplying inaccurate or misleading information, there should be mandated penalties for this errant employee in respect of this Act.”
“I must make an appeal that the authorities do not take a harsh stance on associations in this regard. In some communities in Singapore, some of the places of worship and some of the important community social organisations are registered as associations due to historical reasons. It is important for some of these organisations to develop their own property either for operational or administrative use or to raise revenue. So, in this context, requiring them to have prior paid-up capital may not be possible for such associations and they may still be fund raising from their members to develop the property. I hope Page: 76 the Minister will look into associations, therefore, on a case-by-case basis and not unduly penalise the ones who are not-for-profit and are important components of our social fabric. On the whole, Mdm Speaker, I support this Bill. 5.01 pm”
“Such tricks include higher ceilings and mirrored walls to make the apartment look much more spacious than it actually is, or lavish fixtures and fittings to make the property look much more appealing. I think we should mandate that the developers do not use these tricks any more. Show flats should be mandated to look as close as possible to the eventual product sold to the customer. I hope the Minister will take this into account when deciding the specifications of the show flats for developers. Overall, I am happy that this Bill includes provisions that will help developers play a fair game with potential buyers. In discriminating convicts, I do feel, however, that there is an over-generalisation of former convicts in this Bill. Yes, we recognise that the Bill is taking the necessary steps to protect buyers and even the developers in some cases of potential fraud. But to specifically assume that an ex-convict guilty of fraud offences is likely to do so is I feel unfair and playing to stereotypes. We must remember that the ex-convicts, when released into society, sometimes struggle to earn equivalent jobs again in our society. Especially those who were convicted of white collar crimes and are educated may not be able to find professional jobs again and may have to settle for odd jobs or low-skilled jobs to earn their living. For many, jobs in such sales positions may be a second chance to earning a decently paid job again and we should not close that door on them. I fear that after this Bill is passed with these provisions, developers may on the whole not hire ex-convicts at all, in the fear of running afoul of the law. That would be sad, as we should do all we can for the convicts to assimilate back into society.”
“Thank you, Mdm Speaker, for allowing me to speak on this Bill, which will seek to provide better protection for those seeking to buy property. Whether people are buying property for investment or to live in, they should not be exposed to exploitation and be protected. There are a few ways in which potential buyers can be exploited, misled or given false information. I have heard recently from several friends and acquaintances that the developers have now become very innovative in marketing their new launches. I was told that they will advertise that a particular flat is, say, 1,400 square feet, for example. But when they view the property, they realise that it does not seem as big as 1,400 square feet. When they probe, they are then reluctantly told by the marketing or the sales agent that the 1,400 square feet size includes the bay windows, balcony, the access area, and in one case, I was even told that the personalised parking lot was included. I stand corrected. So, in effect, the property size was much smaller. For such misrepresentation of details, we must take the developers and the marketers to task so that potential buyers know exactly what they are getting themselves into and are not misled by such jargons. Given the high property costs in Singapore now, we do not want buyers here to spend through their Page: 75 noses and not receive the accurate value for what they think they are buying or paying for. The same goes with the show flats that developers put up. I have heard that the developers have many tricks up their sleeves and employ them to make the show flats look much bigger and nicer than what the actual property looks like or comes with. In other words, in many instances, the show flat is an illusion.”
“As per the MOM guidelines, we are allowed to recruit only from certain countries like Malaysia, China and other Asian countries, especially Hong Kong, Macau, South Korea and Taiwan. You know that for these countries, you cannot recruit anybody with a Work Permit, except China. We are not able to get workers and we have tried all the sources. Though there is a quota, we are not able to use it. Therefore, I would like to ask the Minister whether he could consider other Asian countries to be included so that we can recruit from countries like the Philippines, Vietnam, Myanmar, or some English-speaking countries like Sri Lanka, India, or somewhere else?”
“Thank you, Sir. We understand basically the restrictions of the foreign manpower in Singapore through the dependency ratio ceiling (DRC), increase in the levy, etc. But in the service sector, the quota is going to be reduced from DRC 45 to 40. Especially for the retail sector, it is really not able to use the full quota of the DRC. The reason is —”
“This will ensure aspiring Singaporeans and middle income families are not competing with foreigners. I would think a barrier in Singapore could be $2 million, beyond which the market could invite foreign buyers as well. Besides, efforts should be taken to ensure speculative buyers pay a heavy price by imposing stricter rules. Further, to avoid foreigners from speculating, we could impose rules to ensure a foreigner buying a property cannot avail any loan from Singapore banks. This would mean leveraging will not fuel the speculation in the property sector. I hope the Government will seriously consider my suggestions for those areas as we aim to make the lives of Singaporeans better, to help build a strong Singaporean Core. Thank you, Mdm Speaker, generally I support the Budget. 2.07 pm”
“I would also like to point the attention towards measures in a larger land-rich neighbouring country, Malaysia, where properties below RM500,000 are reserved for Malaysians only. This ensures the quantum of monies competing for normal houses is not unlimited. In other words, it is a competition of equals at least in some way.”
“Actually, what SMEs may need is to get help to deal with its other cost pressures so that employers have the ability to survive a labour crunch. Besides labour costs, the main cost pressure for SMEs are rental costs, and I urge the Government to see how it can look into helping companies in subsidising these high rentals. The productivity bonus is also good but, once again, this could have been more targeted to help smaller companies. Moreover, the main obstacle preventing smaller companies from applying to the productivity grants is the cash investment required upfront to invest in productivity measures and automation. I urge the Government to consider making this cash available to SMEs upfront based on an estimate basis so that they will have the muscle to invest in innovation and automation. I would now like to bring your attention to the continuous rise in property prices in Singapore. Although we have made several sincere cooling-off measures in terms of additional stamp duties and loan restrictions over the past several months, the rise seems to continue unabated. This is one of the serious concerns of the common man, especially young Singaporeans, who find it hard to get a home of their dreams and build the family further. All the efforts by the Government have only helped in boosting revenues out of the additional stamp duties while making it even harder for the innocent and genuine buyer in the market. The speculation and hot money seem to know no end. Having seen the incremental stamp duties not doing the required task in cooling the prices, I Page: 51 would like to propose alternative measures which will at least ensure Singaporeans have enough opportunities to buy their houses without competing with foreign investors.”
“Singapore's business climate has always been one that has helped attract investments, including FDIs, and thus, this negative business perception and sentiments could significantly affect our investment and entrepreneurship climate. To be fair, the Budget did contain a number of measures to help SMEs cope better with the pressures of a difficult business environment, especially with that of cash flow. However, these measures could have been fine-tuned to make them more effective in achieving their desired outcomes. Page: 50 Take the Wage Credit Scheme (WCS), for example. While this is well-meaning to help Singaporean workers earn a higher income by incentivising companies to share their productivity gains with their employees, this could have been more targeted to help smaller companies, which need this assistance more and probably have more workers earning less than $4,000. Moreover, what will happen to these businesses after the WCS expires in 2015? They will suddenly be left with a higher wage bill than before and if the business environment or economics is bad, these SMEs may not be able to sustain this wage costs and could probably result in job cuts, since wages are sticky. Otherwise, companies may instead choose to pass on these higher costs onto consumers, which I suspect may already have happened with a tightened labour market, and worsened inflationary pressures within the economy. With a tightened labour market, employers may start engaging in a wage war to attract new staff or retain old ones. While the WCS may help employers share the burden of this wage war, it could also be true that it may in fact push employers towards this wage war sooner than before as they now know that they have a 40% buffer to do so.”
“With a severe compromise on quantity and quality of front end staff, can our service levels be as good as it takes to be attractive to these well-travelled shoppers? The shopping hours for our retail malls necessitate a minimum of three to four people in a store. As retailers, there is little more to automate at the front end to improve productivity which has been quoted as an area of improvement consistently. Today, with the labour crunch, retailers are on the verge of extinction as a business. It is time for the Government to help lead this sector on how to improve productivity further and allow retailers to follow suit. Retailers do not know what more can be done when even to have physical bodies at the retail store to serve customers is not possible, let alone get the right talent. While retailers are sincere in helping locals join this trade, the dynamics of this business as it is, makes it difficult for expecting retailers to continue doing more. The revenues are stagnant if not growing modestly, the rents are rising faster, being linked to the productivity of retailers forever, thereby leaving nothing with the retailers to spare to woo talents into the sector. If the retailer relied on foreign manpower in the last few years, it was because of their loss of talent to integrated resorts, and now even this option is being stopped. It is frustrating when all options are closed and no new avenues being suggested except being linked to generic rules and being clubbed together with trades which have very different dynamics. Repeatedly, I would like to raise the plight of SMEs in general in dealing with the tightened labour force and the restructuring of the economy. Many SMEs are not in a good state at the moment and are fearful for their future.”
“This broad definition is used to define the need for foreign staff. Unlike in construction where it appears that everyone agrees the impossibility to hire locals and, therefore, provide a dependency ratio of 1:7, the services are not seen as difficult to hire sector. How much of productivity can be squeezed when there is nobody to serve at the retail stores? Automation in all sectors of retail is hard to imagine. Back-end task in every business gets automated like dish washing in a restaurant, but cooking remains manual. Similarly, the computers used in the retail stores for inventory and data communication is the best of automation we could do, can we eliminate the need for any shopping assistant and keep the clothing stores unmanned with a self-help concept? Is banking sector and retail similar in terms of scope for improving productivity and need for labour to be grouped as one? I urge the Government to avoid painting all these sub-sectors with one colour. A careful study of business processes and the need for different kind of talent and their availability alone can get these DRC limits to be rational. While we battle our own problems on the need for right labour and the effect on business, I wish to highlight that we need to look at our Page: 49 competitiveness and uniqueness in the region rather than in isolation. With the tourist shoppers, we need to realise that most tourists in Singapore are also visiting our neighbouring countries during their visit to Singapore. Today, shopping malls and options are as much vibrant in Kuala Lumpur, Jakarta and Bangkok as in Singapore. Are we losing out to these markets our share of tourist spending on retail?”
“I refer to the Budget speech and Page: 48 the several changes proposed to the foreign workforce regulations. While this is certainly going to add to the problems faced by SMEs, it is particularly severe on the retail trade. The trade is bearing the brunt of all the policy decisions in recent years and has been put through them with little help and understanding. The retail business has been one of the support trades for growing tourism-related revenues for several years and has been one of the significant highlights in a tourist's diary on his visit to Singapore. The pleasant experience and service levels experiences are a function of a willing and qualified labour force at the store front of retail outlets. Today, the severe crunch in manpower is compromising on the very strength we have developed over the years. With local talent far and few, their lack of willingness to take to this trade has been very obvious. We look back at 2009 when our first integrated resorts came in. The traditional retail business provided a ready pool of staff for the integrated resorts and the retail industry faced first labour crunch fairly helplessly. The local retail trade, with its business dynamics of high rents and rents linked to the trade's productivity in perpetuity is nearly a zero sum game. This does not allow retail to pay similar to casinos. But the Government chooses to treat these different businesses as services in general. In the recent Budget, the quotas and DRC ratios have been defined yet again along the broad guidelines of Manufacturing, Construction, and Services. Services are too broad a definition and can range from fashion, retail, F&B, banking, customer services, professional services and even casinos.”
“Therefore, decision making in granting them a PR or citizenship in such cases should be at least within 12 months. The recent years have allowed several S Pass holders who have come to work in Singapore to become PR. While we strengthen the core of Singaporean population for our future generations, our need is to attract and assimilate people only with complementary and extraordinary talents than what is available in Singapore. We must follow an approach similar to Dubai where lower skilled foreign workers or semi-skilled workers are allowed to work as long as needed but not assimilated into the society as PRs or citizens. This will ensure our core Singaporeans are not adversely affected by new immigrants at lower skill levels. Housing today is a concern with its affordability in question for most young couples. To show a distinct and clear approach to help Singaporeans, we must work towards clear goals like ensuring an allocation of a HDB flat within three months of registration of marriage. This will give comfort to young couples wanting to marry and an independent house to stay will also provide the atmosphere and ambience to help create a family soonest before other priorities take root amongst themselves as couple. While my speech is by no means a comprehensive set of efforts that should be adopted or a way better than the existing efforts, it is my strong belief that doing more of the same may not bring much desired results. An approach which ensures an all-round support from the family, society, employer and Government besides ensuring the intended benefits are directly used for the very purposes planned is the way to go forward. Foreign workforce in Singapore. I wish to declare my interest as the Vice President of the Singapore Retail Association.”
“This will encourage even SMEs to come forward and do this change in work routine to help mothers. Childcare is a significant portion where help is needed. Today, a domestic help in the form of maid is too expensive for young couples. We could think of abolishing levy for a period for such families who have an expectant mother or children below the age of 12 years to ensure that good help is available through these crucial years at affordable costs. I note that the present Budget has reduced the levy for the needy but I would like to voice out that levy should be eliminated totally to impart direct benefit that the present way of getting tax rebate, and so on. Similarly, a statutory effort may be made to include space as a mandatory provision in all office buildings, at or near MRT stations or at clusters of office buildings. The BCA can issue guidelines for these childcare centres. This will ensure that mothers are able to attend to a child in early years while at work by Page: 47 having the childcare centre close by. These childcare centres can be run by NGOs and other community organisations, keeping the costs at reasonable levels, while providing much needed support to young mothers and families. Yet another area, I would like to dwell on is to help assimilate and grow the family nucleus in Singapore for Singaporeans who have married foreigners. These couples have a very high possibility of assimilating within our society and, therefore, they should be encouraged in every way to become part of the society including bringing up their next generation as Singaporeans. But the delay in assimilation into the society affects their growing a family in Singapore and, therefore, not able to add to our Singaporean core.”
“It could include visits to doctors for regular illness, check-ups, the need to feed the baby in its early months, buy the essentials like diapers, milk powder, and so on, and eventually, education. These details explain that the mother's main concern is often the well-being of the child and whether she can ensure that while balancing all her other commitments. The hand-holding by the family, parents, neighbours, employer and Government is needed most in these first five years of the child. Therefore, the assistance in my opinion that should come from the Government should be clearly directed to each of those needs to ensure the means are going to the desired end and not being spent unwisely on non-priority areas. The execution can also be simple to ensure that there is no abuse of these privileges. One such method could be to bring in a comprehensive set of vouchers as a booklet to be given to the young family/mother from the stage pregnancy is confirmed. This could include a set of vouchers to be used with any doctor during the period of pregnancy for a normal set of visits for an expectant mother, including the hospitalisation for delivery. Let an average amount for a delivery be worked out to be given as a voucher to everyone so that there is no cash outflow and the patient gets the benefit directly. Similar vouchers for all expenses for mother and child post-delivery well through the immunisation programme for the child, including buying essentials like milk powder, diapers, and so on. The employers on their part must work with the Government for a flexi-work hour arrangement at least for half a day and work from home options with ability to claim some support from the Government to do so.”
“Mdm Speaker, thank you for allowing me to speak and share my views on the Budget for an important year during a period of economic restructuring and when our society is undergoing rapid changes. I will be commenting on very few areas relevant to the Budget in my speech − strengthening the Singapore core, the foreign workforce regulations, helping SMEs, property prices, and so on. Strengthening the Singapore Core. In building a Singaporean Core, we must ensure that the needs of Singaporeans are met continuously over a period of time emotionally and economically. One of our concerns is to lift the fertility rate so that it should at least achieve self-sustenance levels. We must adapt structural changes to the way our society works, the administration thinks and the way the business treats its employees so that it starts to appear as a collective effort. I would like to take the parenthood package for a start as an example. This package, besides promising the monetary assistance, should also be emotionally attractive to a mother and the couple to have children. What does a young Singaporean woman think today before she decides to have a baby? Will I sacrifice my career? Will this sacrifice of my income lead to the extent that my family suffers? Will I be able to take care of the baby while I continue to work? Will I have help at home to address the baby's needs as my parents are too old and frail to help? Can I afford a maid to help me and the child? Can I concentrate on career even though I would not be certain of my baby's comfort Page: 46 at home? There is a whole lot of time, attention and care needed for the baby till she at least turns five years old.”
“With slower growth and inflation increasing, we may run the risk of having stagflation. So, it is necessary to see that we do not squeeze the workforce growth as much as it hurts the economy, businesses and jobs. Perhaps, this can be done more gradually. In essence, Mdm Speaker, I support the Bill but hope that the Government will consider keeping Singaporeans at the core of their population strategy, and not just economically, but also socially so that they do not feel alienated. Also important that calibrated economic growth is not overdone that it hurts businesses and jobs here. 2.41 pm”
“The continuous tightening in policies for hiring foreigners as front liners at stores is straining the local workforce to the extent that locals do not want to work in this sector. That is why the idea put forward by some of my Members here in this House to keep foreign workforce growth rate at zero is one that will kill businesses here, whether local or foreign. The business community is already concerned by the tightening of the workforce as proposed by the White Paper. I cannot imagine anything tighter than that so I do not understand the merits of reducing it even further because doing so will inevitably result in loss of jobs, thus, ultimately, hurting Singaporeans. Further, a lot of this economic strategy is built on assumptions, such as that productivity may help fuel growth, in the context of this slower workforce growth, for the rest of this decade. It is a risk to hinge so much on productivity growth, which we all know is more difficult to come than we may plan or hope for. For instance, if our actual productivity numbers fall short of the projected Page: 51 numbers, are we going to sit back and allow the economic growth to suffer? Or will we at an appropriate time implement a review to see how the productivity growth is faring and then maybe decide if we want to revise some of these strategies? If so, what is a likely time such a review may be considered? I think allowing the workforce growth to reduce may create undesirable consequences. The war for talent is already quite heated, and this would obviously worsen that. If this puts an upward pressure on wages, then I fear that we may artificially increase wages here. If companies decide to pass these high costs on to consumers, then we may have created a wage-cost inflationary pressure.”
“This is a key reason for foreign workers being hired by SMEs today and not the cost advantage, as is perceived commonly. If the SMEs are unable to hire people, they will cease to exist. By the way, this will hurt the very core of the Singaporean society which we are keen to protect. As has been highlighted by SBF and the many chambers of commerce, the shortage of right talent and the associated imbalance in the labour market, in terms of costs, will force even larger companies, and not just SMEs, to operate outside of our eco-system, much to the detriment of the Singaporean Core. This is no longer a myth as newspapers have highlighted how foreign companies are willing to leave if this situation does not ease up. While there is no one silver bullet, I urge the Government to identify and isolate sectors where our Singaporean labour force can cope in terms of quantity and quality and selectively impose restrictions on hiring of foreign talents. An investor is likely to look at returns even if it is a Singaporean investor and, therefore, seek the right talent ultimately. Our blanket actions, I fear, may affect long-term investments from local businesses and foreign businesses alike across the economy. It may not be right to allow the entire economy to suffer for this reason. As a retail business operator, I wish to voice out the difficulties we have been facing in the business over the past one year. The business is today constrained in terms of growth not because of investments or opportunity but because of insufficient labour to run the potential businesses. This is not only leading to loss of business opportunities but a compromise on service levels built with pains and the years of investments.”
“Are we not taking a risk by narrowing the spread of our economy instead of ensuring a broad and diversified economy where there is a mix of industries, in all types and all stages of the value chain? Also, as a SME operator myself, I understand the concerns of the business community in wanting to know and understand what timeframe the Government has in mind in getting companies to move up the value chain. This, obviously, will take time and cannot be done instantaneously. But it seems that companies here are expected to do that soonest. Will the Government be helping companies making this shift with assistance schemes? Will there be Government help in creating opportunities for allowing businesses to move up the value-chain as the nature of their businesses otherwise may make it difficult for them to do so? I also worry that moving up the value chain too quickly may lead to frictional or structural unemployment, especially if workers, probably older ones, are unable to train to fully make such a transition. This may dislodge the labour market and create a scenario where some segments of the population find themselves irrelevant to the demands of the industry. While we speak of moving the economy up the value chain, it needs to be noted that more than 60% of the Singaporean workforce are employed by SMEs. Many of the economic activities at consumer level like retail and F&B remain an SME domain. These service sector jobs are labour-intensive, which require working in shifts, standing long hours while at work, including weekends and public holidays. Today, the young Singaporean is unwilling to accept these jobs Page: 50 and, as has been pointed out in the White Paper, aspire for PMET jobs.”
“In the past few years and even now when we give PRs to eligible foreign candidates, their wives are also extended PRs to help them settle down in Singapore. Then why should Singaporeans be made to face uncertainties and instability in their marriages just because they choose to marry a foreigner? While Minister Grace Fu highlighted the other day that the Government understands this concern and agrees to help Singaporeans with such cases, it is important to have a timeframe to integrate these Singaporeans. At least, within a year upon their arrival in Singapore, we should give them PR status so that their early integration will only help them to be part of the workforce. I think such cases should be given priority so that these couples can get on with their lives with more certainty and contribute towards the TFR and strengthening the Page: 49 Singapore Core. Moreover, it is important in this whole exercise that Singaporeans are given priority and their sense of importance and belonging to the nation is not eroded. I feel that the White Paper can improve in this regard in placating Singaporeans and reassuring them that they have first priority in all matters, ensuring a vibrant and sustainable economy. Moving on, I would like to register my appreciation for the Government in attempting to create high-value jobs for Singaporeans and this will hopefully lead to a higher income and better quality of life for them, at least in terms of material needs. I am not entirely sure though if the approach of pushing businesses up the value-chain is the best approach to take. Firstly, moving up the value chain makes our industrial landscape here a narrower one. The further we move up the value chain, the narrower it is upwards, almost like a pyramid.”
“The problem is many of the measures in the package designed to help parents with the costs of starting a family are one-off measures that may alleviate some of these costs in the beginning of the journey of starting a family. Raising a child is a long process with cost pressures at several junctures along the way from when the child is a new-born, to being an infant, to Primary school, and then to Secondary school at the very least, even if we do not take into account the tertiary education. The brutal truth is that cost is high at all of these stages from buying simple things like milk powder and diapers to going to school and paying for tuition classes and so on. And this is provided the child is completely healthy, otherwise medical costs are an add-on. So, what they need is, in fact, help continuously along the way. I feel that while economic growth and addressing the concerns of low fertility rate with the economic benefits may help to some extent, a large need will be to emphasise the family values and shifting the cultural importance away from the purely monetary measurement. Today, fertility indexes remain healthy mainly in societies where binding force is beyond wealth and where success measures are beyond money. A change in Singapore may be possible considering the horizon of time for discussions is 17 years up to 2030 and not a short term. More thoughts on making this shift than presently mentioned in the White Paper will be welcomed. Under the area that the Government could have done to help Singaporeans with respect to starting a family is where Singaporeans marry foreigners. I understand it is quite difficult now for foreign spouses to be given PRs and I think this should not be the case.”
“Firstly, let me begin with commending the Government and my colleagues for the time and effort they put into this very thorough and comprehensive plan for our population and related areas. It is a brave and bold move by Government to release this Paper which speaks about a larger population in the future, although crowding and congestion appear to be a significant grouse at the ground level today. The Paper is more like the bitter pill which is often not liked but presents the fact and remedy in the best interests of the person and future generations of Singaporeans. This forward planning is commendable and, in an effort as futuristic as this, there may be differences in approaches and attempts but the Paper needs to be seen with the perspective of an overall plan and in the best interests of all stakeholders in Singapore. This was necessary as the Government aimed to meet the three objectives of this exercise – to strengthen the Singaporean Core in our society, to create more high-quality jobs enough for a more educated workforce and to ensure a high quality living environment here. However, there are parts of this Paper I do not agree with and I would like to share these thoughts and I hope they will be given due consideration. Keeping Singaporeans at the Core. The Marriage and Parenthood package will help Singaporeans marry and have children earlier. However, I believe it is not enough to get the desired effect of pushing our Total Fertility Rate (TFR) from the current rate of 1.2 to 1.4. Many of the initiatives in the package are Page: 48 encouraging but they are typically the incremental sort of measures that the Government has been trying for years now. Those have not yielded much result, and I feel these would be not effective as well.”
“The Singapore Government has given Tamil an official language status here which is appreciated not only by the people who live here but also by the Tamil diaspora. A number of Indians, too, came here as immigrants. Because of the perception that the Indians speaking other Indian languages come in large numbers, more than the number of Tamils living in Singapore, I understand that the Tamil-speaking Singaporeans fear that the Tamil language may lose its importance. It is their wish that the Tamil language, which is protected by our Constitution, would continue to be a living language here. Page: 47 In this regard, I recall Minister Mrs Grace Fu's assurance the day before yesterday that the ratio of the Malay community will continue to be maintained in Singapore. The Chinese, whichever country they may come from, will speak their mother tongue in Mandarin. Likewise, the Malays, wherever they may come from will speak their mother tongue Malay. But it is not so in the case of the Indians. The Tamil-speaking Singaporeans feel that if their ratio is maintained and kept the same as at the time that the language was recognised as an official language, then their language would continue to be a living language here. May I that the Minister and the Government take this into consideration. While I generally support this White Paper, I have different views on some aspects of it which I hope to elaborate in my English speech. (In English): Mdm Speaker, thank you for allowing me to contribute to this discussion on the population projections of Singapore – an integral factor to the long-term success, relevance and survivability of our country and our people.”
“Mdm Speaker, I would like to make a short speech in Tamil before proceeding with my English speech. (In Tamil): [Please refer to Vernacular Speech.] Mdm Speaker, I would like to make a short speech in Tamil before I proceed with my substantive speech in English. Page: 46 I am happy to register my views in this House on the White Paper – A Sustainable Population for a Dynamic Singapore as a population policy roadmap to address Singapore's demographic challenge. It is important to plan on matters related to population for the long-term success, relevance and survivability of our country and people. I wish to commend the Ministers and the Government for taking time and effort in putting together this thorough and comprehensive plan related to our population matters. It is, indeed, a bold step. The Government has prepared this White Paper after taking into consideration the expressed concerns of Singaporeans, and this courage was what was espoused some 2,000 years ago by a Tamil sage called Thiruvalluvar in his couplets, specifically, couplet no 382: "Courage, generosity, knowledge, motivation are the four essential elements of a successful leader" – or, in those days, kings. [அஞ்சாமை ஈகை,அறிவு ஊக்கம் இந்நான்கும் ஞ்சாமை வேந்தற்கு இயல்பு-குறள் 382] I am happy to note that in preparing this White Paper, the Government has involved more than 2,000 Singaporeans and obtained more than 2,500 feedback. One of the good attributes of Government is to listen to the people's views and take action. And in this connection, I wish to bring to the Government's attention the views of the Indian community, particularly the Tamil-speaking community.”
“Yes, thank you. It should seek to double the sector's existing GDP contribution from the current level of 0.4% to 1% over the next 10 years and as a member of the profession, I am confident that this is achievable. On the whole, I support the Bill, Mdm Speaker. 5.40 pm”
“For instance, the SAC can have representation on the ICPAS board, to have an oversight of the process, or the SAC can subject ICPAS to term reviews of the running of the SQP and address any concerns that may exist. That seems like a more efficient way of addressing any concerns there may be over the administration of the qualification programme in this sector. Madam, the report of the Committee stated that as Singapore aspires to be a leading global accountancy hub for the Asia Pacific region —”
“The Pro-Tem SAC has already finalised the SQP by engaging a UK-based professional accountancy body and it is working out the administrative details of various processes leading to grandfathering of ICPAS members, admission criteria of students, examinations, practical experience requirements, other transitional arrangements and accreditation of training organisations (ATOs). Now that all of that are almost ready, the entire SQP should be passed on to ICPAS to own and manage as per the administrative services contract, as ICPAS already has the expertise, experience and capabilities of doing so. Further, my proposal will really avoid any potential conflict that may arise between SAC and ICPAS in designing a Model for Revenue and Cost sharing in handling the New SQP as the ownership and administration will then be in the hands of a single entity, that is, ICPAS. However, the SAC should have the oversight responsibility to see that ICPAS continues to adhere to the guidelines given by SAC. If Singapore is to have a sizeable portion of the Asia-Pacific accountancy services market, the fastest growing globally, estimated to reach US$38.3 billion by the end of 2013, then I think the SAC should take a macro view and to focus on the bigger picture of growing the accountancy sector here as an enabler and delegating the entire SQP matters, that is, Singapore Quality Programme and designation matters to ICPAS while maintaining oversight responsibilities as a regulator. The SAC can still maintain oversight of this process through multiple ways without directly intervening in the running of the SQP.”
“The functions of the SAC which are listed in clause 6 include a number of areas currently undertaken by ICPAS, such as to develop and administer programmes, qualifications, certifications, specialisation, and so on, all relating to the accountancy sector and related fields. It will also promote, develop and improve competencies, expertise and professional standards as well as conduct research and development activities in the accountancy sector and related fields. These are some of the things already done by ICPAS and so there is a duplication and wastage of resources for the SAC to begin to do them. Complementary approach. But I acknowledge that the SAC should still play an important role in the development of the accountancy sector here and therefore I would like to clarify that I am not dismissing its significance or relevance. But instead of micro-managing the qualification and its process, in which ICPAS has the total capability, the SAC should focus on the promotion and development of the accountancy sector, similar to that done by Government agencies like SPRING Singapore, EDB or IE Singapore that strive to promote growth clusters and industry development here. Traditionally, Page: 91 Singapore Government agencies play the role of a regulator or an enabler or facilitator of a particular industry or industry clusters. Therefore, the SAC should be a regulator for the SQP and an enabler to grow the accountancy sector.”
“But under Schedule III, it is stated as only a designated entity and not the designated entity, which allows for more such entities to be introduced in the future. This creates uncertainty and anxiety among the members of ICPAS, who are also the bedrock of the very sector that this Bill is aimed at growing. I would like to seek confirmation that the intentions are to appoint only one designated Page: 90 entity, that is, ICPAS. Madam, throughout the world, the major global accountancy bodies have ownership of the professional accounting qualifications and designations in their respective countries. Members can see this in the table that has been circulated for reference. This Bill will, however, give ownership of the new qualification programme SQP and the designation "Chartered Accountant" to SAC, instead of the national accounting body ICPAS. This Bill should instead build on the good work that has been done by ICPAS over the years. This year, ICPAS will celebrate its 50th Anniversary and throughout this time, it has worked hard to build its own network and credibility among its global counterparts and for its members as well. If the SAC is going to own the SQP, what does that do to the international standing of ICPAS if the SAC is initiating Mutual Recognition Agreement (MRA) negotiations on its own with international counterparts? This will undermine the efforts of ICPAS to transform itself as a global professional body. In fact, the MRA negotiations should be left to ICPAS as the professional membership body to handle – with approval from SAC of course – and not have the SAC getting involved in the process as this is not the right step and not keeping in practice with any accountancy professional body worldwide.”
“To illustrate, the accountancy profession can be divided into broad categories – first, professional accountants in business; and second, public accountants who require licences from ACRA to practise as auditors. Of the more than 25,000 members of ICPAS, about 1,000 are holding ACRA licences to be public accountants and/or auditors. Some other 6,000 of our members are working in audit firms as employees and so they do not need any licences. The remaining 70% of the accountants are engaged as professional accountants in business and commerce. Hence, with only about 1,000 licensed public accountants, ACRA is sufficient to provide a regulatory role and there is no need to create a new structure to provide oversight of the entire profession because 70% of the professional accountants in Singapore who are engaged in business and commerce, and the remaining 6,000 professional accountants employed in audit firms are subject to the ICPAS membership rules and regulations and code of discipline, etc. More certainty, I have been told by many members of the ICPAS that they hoped that this Bill would seek to enshrine the mutual relationship between the SAC and ICPAS and in doing so, giving them more certainty that ICPAS will continue to play a leading and meaningful role in the accountancy sector here in Singapore. Some of this concern stems from the perception that in the future, ICPAS may have to compete for this function with other organisations or institutes that may be introduced here later. Yes, the Bill stipulates ICPAS currently as a designated entity to fulfil this role and that should bring some relief to ICPAS and its members on their future.”