Richard Hu Tsu Tau
Singapore
“Sir, I think it is eminently fair, because the proposal really is for the Government to spend money to give shares to Singapore citizens. Either you agree or you do not agree. Or, if you agree, perhaps you consider the amounts insufficient or too much.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time". The purpose of this Bill is to make provision in accordance with Articles 148(2) and 148C(2) of the Constitution for additional expenditure in excess of the provisions authorised by the Supply Act, 2001.”
“I think the Prime Minister and DPM Lee have already explained it will be based on income levels, with people living in flats as a proxy. So there is no political content in it. It depends on the income level, whether you have served national service or whether you are an elderly person.”
“I really do not understand. I know you are arguing on technicality for which I agree that you may have a point. But, nevertheless, because it is a proposal to share Singapore's surpluses with the population, the distribution is not something which you can argue against.”
“As I said, the estimates will be available around mid-October. I do not think, at this time, I want to give a specific date when the second package will be announced, but it will be done as soon as practicable. IN-PRINCIPLE AGREEMENT WITH MALAYSIA ON OUTSTANDING BILATERAL ISSUES (Assessment) 4.”
“Mr Speaker, Sir, when the $2.2 billion off-Budget package was announced in July this year, we said that the Government would do more to assist Singaporeans if the global economic situation worsened in the coming months.”
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“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The purpose of this Bill is to make provision in accordance with clause 2 of Article 148 and clause 2 of Article 148C of the Constitution for additional expenditure in excess of the provisions authorised by the Supply Act, 1994. The additional sums have been presented as Supplementary Estimates which have been considered and approved by the House as Command Paper No. 14 of 1994. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time. Third Reading”
“Mr Speaker, Sir, there are two categories of expenses incurred in sending Ministers, MPs and officials overseas. One category covers Official Visits Overseas in which Ministerial delegations from Singapore travel overseas in response to invitations from foreign governments. The purpose of such visits is to promote bilateral relations and trade. Under this category, the expenditure in 1993 was $2,228,576 and the expenditure in 1994 up to the end of October was $2,309,884. The second category covers Conferences Overseas in which official delegations from Singapore attend conferences organised by multilateral organisations such as the United Nations, ASEAN, APEC, GATT, and so forth, and a variety of technical and specialist international agencies. Under this category, the expenditure in 1993 was $2,147,610 and the expenditure in 1994 up to the end of October was $2,166,619. The total of $4.48 million spent so far in 1994 is necessary to maintain Singapore's position in the rapidly changing world economic and political order. Such expenditure is expected to increase in future years, in line with Singapore's growing economic strength and its regionalisation drive. BLOCK 538 ANG MO KIO AVENUE 5 (Cause of crack of column) 13. Mr Low Thia Khiang asked the Acting Minister for National Development what is the root cause of the serious crack of the column at Block 538 Ang Mo Kio Avenue 5 and whether he will assure the public that similar incidents will not occur in other housing estates.”
“The Ministry will reclassify the prescription-only medicines into over-the-counter medicines as and when appropriate. NURSES TO POPULATION RATIO 7. Dr Kanwaljit Soin asked the Minister for Health what is the ratio of nurses to population that is ideal for Singapore; when this will be achieved; and how it will be done. BG George Yong-Boon Yeo: There are a total of 11,600 registered nurses in Singapore, giving a nurse to population ratio of 1:280 in 1993. It is projected that there will be a need for another 3,400 nurses by the year 2000. This takes into account the needs of an aging population, the development of new health programmes and the building of more hospitals, clinics and nursing homes. For planning purposes, the targetted nurse to population ratio is 1:200, or 15,000 by year 2000. There is no ideal ratio as such but we believe that our target is reasonable when compared to some developed countries. For example, the nurse to population ratio in 1993 for UK, Japan and US was 1:234, 1:165 and 1:154 respectively. The targetted ratio can be achieved if the recruitment of student nurses is able to meet the target of 600 Registered Nurses for training each year. The intake of student nurses into Nanyang Polytechnic for Registered Nurses has been encouraging. It has increased from an intake of 259 in 1992 to 557 in 1994. In the meantime Ministry of Health will continue to rely on the recruitment of foreign nurses to supplement local recruitment. UNIFORM OF NATIONAL SERVICEMEN 8. Mr R. Sinnakaruppan asked the Minister for Defence whether all operationally ready National Servicemen are given up to five pairs of No. 4 uniform and, if so, what is the rationale of giving so many sets to them as they wear them for two to three weeks only every year.”
“Dr Kanwaljit Soin asked the Minister for Health if he will give an estimate of the number of citizens and permanent residents who have no Medisave accounts or are unable to tap them through their children or parents. BG George Yong-Boon Yeo: The estimated number of Singaporeans and permanent residents without Medisave accounts is 1.1 million people. The majority of these are children, housewives and the elderly who are not in the work force. We are unable to estimate how many of these have no access to Medisave through their immediate family members. SURPLUSES FROM RESTRUCTURED HOSPITALS 5. Dr Kanwaljit Soin asked the Minister for Health if he will give the figures for the profit made out of non-subsidized beds and non-subsidized procedures in restructured hospitals from 1991 to 1993. BG George Yong-Boon Yeo: The surpluses that restructured hospitals, including National University Hospital, made out of non-subsidised (Class A) inpatients and non-subsidised procedures are as follows: 1991 $ 4.9 million 1992 $10.3 million 1993 $ 8.9 million PRESCRIPTION DRUGS 6. Dr Kanwaljit Soin asked the Minister for Health whether his Ministry has any plans to switch some prescription drugs for sale over the counter in the near future. BG George Yong-Boon Yeo: The Ministry regularly reviews the classification of drugs into prescription-only medicines, pharmacy-only products and over-the-counter medicines. Re-classification of drugs from one class to the other is done when clinical studies and reports show that it can be used safely for self-medication without direct medical supervision. In the classification of drugs, we also make reference to its status in the country where the product is manufactured.”
“Singapore's official reserves are managed largely by The Government of Singapore Investment Corporation (GIC), the Monetary Authority of Singapore, Temasek Holdings (TH) and Singapore Technologies Holdings (STH). GIC is the Government's principal investment agent and it handles the bulk of the Government's investments. TH and STH are holding companies which own and manage the Government's shareholdings in Government linked companies (GLCs). The Monetary Authority of Singapore also holds major currencies in reserve for the defence of the Singapore dollar, if required. GIC's investments are carried out overseas. Temasek's investments are very diversified in nature and include both local and overseas investments. STH's investments are mainly in the defence related industry. Ranking the performance of these institutions would not be meaningful as they perform different functions and their investments differ by types and geographical distribution. I would, however, like to inform the Member that these institutions have been performing well in their investments. NUMBER OF HOSPITAL BEDS 3. Mr Low Thia Khiang asked the Minister for Health what is the number of hospital beds in (i) each class of ward and (ii) each Government/restructured hospital for each year from 1985 to 1993. BG George Yong-Boon Yeo: The number of hospital beds by class of ward in each public sector hospital for the years 1985 to 1993 is at Annex 1 (Cols. 503 - 508). Annex 1 - BEDS IN PUBLIC SECTOR ACUTE HOSPITALS BY CLASS, 1985 - 1987, BEDS IN PUBLIC SECTOR ACUTE HOSPITALS BY CLASS, 1988 - 1990, BEDS IN PUBLIC SECTOR ACUTE HOSPITALS BY CLASS, 1991 - 1993 (Cols. 503 - 508) MEDISAVE ACCOUNTS 4.”
“Bill considered in Committee; reported without amendment; read a Third time and passed. ADJOURNMENT MOTION”
“The first relates to our tax incentive for Pioneer Companies. Clause 9 amends section 19A of the Act to defer the deadline for Pioneer Companies to elect for accelerated capital allowances in respect of the residual value of plant and machinery by one year. This will enable Pioneer Companies to enjoy the full effect of the tax concessions even in the last year of their incentive period. The second concerns our tax concession for Singapore flag vessels. Currently, once a vessel is registered under the Singapore Ship Registry, income derived from the operation of such a vessel will be exempt from tax. However, under certain circumstances, some shipping companies may wish to elect not to be under this tax concession scheme. Clauses 3 and 6 thus amend section 10(4) and 13A to provide for this option. The third amendment relates to the tax concession for offshore leasing companies. Currently, companies enjoying such concessions are restricted in the manner which capital allowances can be deducted against their other sources of income. Clause 15 amends section 43I to allow companies to elect not to enjoy the concession if they do not want to be restricted in their claim for capital allowances. Finally, clause 7 amends section 14(1)(e) of the Income Tax Act to raise the limit imposed on the deduction allowed in respect of an employer's contributions to an approved pension or provident fund. The limit is raised from 18.5% to 20% to be in line with the increase in the employer's CPF contribution rate. The change will take effect from 1st July 1994. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Dr Richard Hu Tsu Tau].”
“The next amendment pertains to the collection of unpaid tax. To facilitate the collection of unpaid tax, the Income Tax Act empowers the Comptroller of Income Tax to appoint any person as an agent of the taxpayer concerned. Such an agent is then required to pay any tax due by the taxpayer from the taxpayer's moneys held in the agent's custody. Currently, however, the agent is obliged to do so only at the point of time when the notice of appointment is issued. Clause 16 now amends section 57 so that the statutory obligation on the agent will be effective for a period of 90 days from his appointment as an agent. The provision of a 90-day period will make it easier for the Comptroller of Income Tax to collect unpaid tax through the agent should the need arise. At present, a company that has undergone a substantial change in its shareholders will have to seek the Minister's approval if it wants to carry forward its unabsorbed capital allowances or losses. For ease of administration, clauses 10 and 11 amend sections 23(2A) and 37(8) to enable the Minister now to delegate the power to approve such requests to the Comptroller of Income Tax. The Goods and Services Tax or GST was introduced on 1st April 1994. Under the GST Act, a person who is required to, but failed to register under the Act, will not be allowed a refund for the amount of GST he has paid on his taxable supplies. The GST Act also provides for penalties to be imposed on such persons. To be consistent with the GST Act, clause 8 amends section 15(1) of the Income Tax Act to also disallow that amount of GST paid on his taxable supplies to be deducted as an expense for such cases. I will now turn to the amendments that are needed to fine-tune the provisions of existing tax incentive schemes.”
“5% of the assessable income from self- employment, subject to a maximum of $13,320 with effect from the Year of Assessment 1995. Clause 12 amends section 39 to effect the change. Following the good performance of the economy last year, I have also announced a one-off 5% rebate on personal income tax payable for the Year of Assessment 1994. Clause 23 provides for this rebate. I shall now deal with tax changes not announced in the 1994 Budget Statement. Several of these are needed to streamline and improve tax administration. Members may be aware that since 15th January 1994, taxpayers earning $20,000 or below are able to phone in their income tax returns using the Telefile system. Other electronic means of filing tax returns may also be introduced in the future as part of IRAS' effort to improve its services to taxpayers. To provide for these changes, clauses 2 and 19 amend section 2(1) and insert a new section 71A to allow tax returns to be filed by permissible electronic means. At present, companies are required to submit their tax returns within 21 days from the date stated in their returns forms issued by IRAS. Many companies have found it difficult to comply with this deadline. In view of this, the Income Tax Act will be amended to allow companies to submit their tax returns before a common deadline of 31st July of each year. This amendment will give companies more time to prepare their tax returns. Nevertheless, to ensure that the tax assessment process will not be delayed under the new system, companies are also required to furnish estimates of their chargeable income within three months after the end of their accounting period. Clause 17 re-enacts section 63A and clause 20 amends section 72A to effect these changes.”
“I have thus extended the period for claiming special and further tax rebates to nine years. Clause 14 amends section 42A to effect this change. I have also announced tax changes to further encourage Singaporeans to venture overseas. One is that the tax rates used to compute non-resident tax reliefs will be reduced with effect from Year of Assessment 1995. This will enable more Singaporeans who declare non-resident status for tax purposes to enjoy the non-resident tax reliefs. Clause 13 amends section 40 and clause 21 inserts a new Part C in the Second Schedule to the Act to provide for the tax change. The other tax changes are as follows. First, employees will be allowed a tax deduction for contributions made by them to the CPF which are obligatory by contract of employment, provided they are residents for tax purposes. The tax deductibility for these contributions, as well as contributions to other approved pension and provident funds, will be capped at the compulsory CPF limit. Clause 12 amends section 39 to effect the change. Second, employers will be allowed a tax deduction for CPF contributions made in respect of staff posted overseas that are obligatory by contract of employment. Third, CPF contributions by employers in respect of ordinary wages of staff posted overseas will be exempt from tax, up to the statutory limit for compulsory CPF contributions by employers. Clause 4 amends section 10C to provide for the change. I have announced the increase in the limit for tax deduction for CPF contributions, inclusive of compulsory Medisave contributions, by self-employed persons. The present limit for such deductions is 18% of assessable income from self-employment, subject to a maximum of $12,960. The limit will be increased to 18.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Income Tax (Amendment) Bill 1994 gives legislative effect to income tax changes announced in the 1994 Budget Statement, and other changes not announced in that Statement. Let me begin with the tax changes that were announced in the 1994 Budget Statement. At present, the tax exemption scheme for syndicated offshore credit and underwriting facilities is available only to Approved Currency Units (ACUs). I have announced that this Scheme will be extended to include Approved Securities companies. Clause 5 amends section 13(1)(Y) to provide for this extension. [Mr Deputy Speaker in the Chair] 5.28 pm Currently, the Comptroller of Income Tax can make assessment or additional assessment on taxpayers within 12 years after the year of assessment concerned. Since tax is assessed on a preceding year basis, taxpayers will therefore effectively have to keep records for 13 years. As it is onerous for taxpayers to comply with this statutory requirement, Government has decided to reduce the time limit to issue assessments for non-fraud cases from 12 years to 6 years. This means that taxpayers need to keep records for the purpose of making such assessments for only seven years. Clauses 18 and 22 amend section 67 and other relevant sections in the Income Tax Act to effect this change. The next tax change concerns procreation incentives. At present, taxpayers are allowed to consume the special and further tax rebates within seven years. However, with the implementation of GST- related offsets like the $700 rebate and reduction in personal tax rates, taxpayers who also enjoy the special and further tax rebates may not be able to consume them to the same extent as before.”
“The floor price will be determined by the prevailing market situation. PAP COMMUNITY FOUNDATION KINDERGARTENS AT POTONG PASIR CONSTITUENCY The following Question stood in the name of Mr Chiam See Tong - 3. To ask the Minister for Education whether his Ministry has been notified that the PAP Community Foundation kindergartens at Potong Pasir Estate and at Lorong 8, Toa Payoh in the Potong Pasir Constituency shall be discontinued in 1995.”
“There is a floor price established by the Chief Valuer, below which the tender can be withdrawn, and we have done so.”
“I will convey the Member's request to the Minister for National Development.”
“I do not understand why the tender system should automatically push prices up if the supply is large. It is based on supply and demand. So why should the tender system push prices up by itself?”
“While property prices will appreciate with economic growth, the price surge over the past two years is not sustainable. In the commercial and office sector, rentals today are significantly lower than what they were when they peaked in 1990. The most effective way of stabilising property prices is to ensure that there is adequate supply of new housing and land for development. The Member would have noted the many announcements made by the Ministry of National Development in recent months on its plans to increase the supply of land for all categories of housing. Over the past three years, MND has progressively increased the amount of State land sold for private residential development - from land for 2,500 units in 1992 to land for 4,000 units this year. This will be increased to 6,000 units next year. The potential supply of private residential units in the pipeline currently stands at 71,000. At the same time, MND has tightened up its rules on the sale of private properties to discourage speculative buying of properties. The Inland Revenue Authority of Singapore is also scrutinising more carefully the accounts of individuals and companies active in property transactions to ensure that appropriate taxes are paid.”
“Mr Speaker, Sir, economic growth in the first half of this year was substantially above expectations and the main impetus came from strong growth in the manufacturing and transport sectors which more than offset a slowdown in the finance sector. The momentum of growth in the manufacturing and transport sectors is expected to be sustained in the second half due to strong external demand arising from economic recovery in our main export markets, but the finance sector and domestic demand growth will be weak. GDP growth for the year as a whole is therefore expected to be within the range of 9-10%. This high level of growth is not expected to be sustained, however, and GDP growth in 1995 should return to a more modest 6-8% rate. Against this background, I see little danger of a "bubble economy" developing, nor do I see the makings of a runaway bull run on the stock market. The price-earnings ratio of our stock market currently is still in the low 20s, unlike the bubble situation in Japan in the late 1980s when its price-earnings ratio went above 50. Our financial sector is well regulated to ensure that banks and other financial institutions here are not over- exposed to the stock market. Interest rates are rising world-wide and this should have a moderating effect on equity markets over the next 1-2 years. The Singapore and Malaysian stock markets have stabilised after falling from last year's excesses and their current performance should better reflect the growth rates of the underlying economies. The increase in property prices in recent years has reflected strong demand by households, underpinned by the rapid growth in their income levels and their aspirations to upgrade.”
“The NWC recommended that during the first year of the introduction of the GST, there should be a moratorium on increasing public fees and charges, except for those increases that are absolutely necessary. The GST was implemented on 1st April 1994. Between then and 1st July 1994, fee increases were implemented by one ministry, one statutory board and five educational institutions. The Ministry of the Environment raised refuse removal and disposal fees on 1st June 1994. The Port of Singapore Authority raised its tariffs on 1st July 1994. University and polytechnic fees were increased on 1st July 1994. None of these fee increases were related to GST itself. The increases were necessary to recover unavoidable manpower and material related cost increases. They are consistent with the Government's policy to make gradual and periodic fee adjustments to minimise their inflationary impact. Delaying them would only have resulted in far larger and more painful adjustments for individuals and businesses later on. QUEUE-JUMPING IN PUBLIC PARKING PLACES 4. Dr Lau Teik Soon asked the Minister for Home Affairs whether he will consider introducing or amending legislation to make the act of queue-jumping at public parking places a criminal act and a punishable offence.”
“I do not know the exact figures. I would doubt that consumption has declined in absolute terms. What we are hoping for is that it will reduce the rate of growth because consumption of PUB utilities normally grows either in line or faster than GDP. PUBLIC SECTOR FEES AND CHARGES (Increases) 3. Mr Robert Chua Teck Chew asked the Minister for Finance whether there have been any recent or proposed increases in fees and charges in the public sector contrary to the Government's agreement to impose a moratorium on such fee increases during the first year of the introduction of the Goods and Services Tax as recommended by the National Wages Council and, if so, what are the reasons for such increases.”
“I said that the 5% tax was originally used as a conservation tax and conservation is still an important consideration. I think we should retain it to discourage people from spending more rather than paying more because you spend more. We should spend less and pay less.”
“The Goods and Services Tax (GST) and the PUB tax were imposed for different reasons. A 5% utilities tax on PUB charges in excess of $40 per month was introduced on 1st April 1989 as a means to discourage the excessive consumption of gas, electricity and water. This conservation measure remains valid and should be retained. On the other hand, the GST is a general consumption tax levied on the final value of any goods and services consumed in Singapore and will therefore have to be imposed on top of the 5% utilities tax. To avoid increasing the total tax levied on PUB charges, the utilities tax was therefore reduced from 5% to 2% on 1st April this year, simultaneously with the imposition of 3% GST. It is an offset.”
“At this stage, we do not have. Collecting that data is not easy and it is difficult to see any way for the first three months. I think we will have to wait for six months or a full year's implementation before we produce any figures of significance. TAX ON PUBLIC UTILITIES BOARD CHARGES 2. Mr Ling How Doong asked the Minister for Finance, with 3% Goods and Services Tax, why is there a necessity of 2% tax on Public Utilities Board charges.”
“Between the months of April to June 1994, total value of our imports amounted to about $37.6 billion, up by about 8.4% from $34.7 billion over the same period last year. The fact that trade has not been affected by the implementation of GST is probably due to the various schemes implemented, such as the Major Exporter Scheme and the Bonded Warehouse Scheme, to help alleviate possible cash flow problems traders may face as a result of GST. The implementation of GST is still in its infant stage. The Ministry of Finance will continue to monitor its implementation and impact on the economy in general and specific business sectors, in particular, to see what procedures could be improved or fine-tuned, where necessary. Mr Robert Chua Teck Chew (Nominated Member): Sir, would the Minister be able to tell us about the impact of GST on the retail sector? Does he have any figures or information?”
“Mr Speaker, Sir, on the whole, the implementation of GST since 1st April 1994 has progressed very smoothly, considering it is a new tax with a very comprehensive tax base. There were, of course, some minor hitches in the initial stages of implementation due primarily to unfamiliarity of traders with new procedures introduced as a result of GST. However, teething problems encountered were resolved quickly. For example, based on feedback from traders, the requirement for outward permits to be taken out prior to export of goods was done away with on 1st June 1994. I would therefore like to assure the House that the Ministry of Finance, the Inland Revenue Authority of Singapore and the Customs and Excise Department will continue to hold regular dialogue sessions with the various Chambers of Commerce, the Institute of Public Accountants and various business associations to monitor and resolve any teething problems that may arise. As GST has only been implemented for three months, it is premature to assess its overall impact on the economy at this stage. Nonetheless, preliminary indications are encouraging. The Consumer Price Index (CPI) rose by only 0.5% between the months of March 1994 and April 1994, and by only a total of 1.5% between April and June 1994. The year-on-year increase from April 1993 to April 1994 was only 2.9%. Although the year-on-year increase for June 1994 of 4.1% was the highest since the implementation of GST, Government still expects the overall inflation for this year to remain within the range of 4.5% to 5.5% forecast earlier. Trade figures for the months of April to June 1994 also indicate that the implementation of GST has not hampered our trade with the rest of the world.”
“To encourage employers to engage disabled workers, the Government has already allowed a one-off deduction against income of expenditure incurred by employers in building modifications to cater for the disabled, subject to a maximum of $100,000. ADMISSION TO FACULTY OF MEDICINE (Cap on number of applicants) 7. Mr Chiam See Tong asked the Minister for Education whether his Ministry will change its policy to bar students with good grades from studying medicine at the National University of Singapore in cases where such students cannot afford to do so overseas.”
“For example, "Berjaya Pte Ltd" and "Sheng Li Pte Ltd" in their respective language forms could share the same English name "Success Pte Ltd". It would not be possible to build up a database that is able to link the different pronunciations, as well as different written forms and meaning to a specific word. Furthermore, even if these problems can be overcome, there are already existing companies with different English or romanised names sharing the same name in a particular language form. It would not be possible to decide which company should be allowed the exclusive right to use the name. For the above reasons, the present system of registration of a company's name in English or romanised form remains the most feasible. EMPLOYERS WHO ENGAGE DISABLED WORKERS (Tax rebates) 6. Dr Kanwaljit Soin asked the Minister for Finance whether he will grant tax rebates to employers who engage disabled workers so as to help the disabled find employment and become self sufficient.”
“English is the language upon which our constitutional and legal systems are built. Registration of companies and businesses in Singapore has therefore to be done in English. However, the Registry of Companies and Businesses (RCB) accepts registration of non-English names so long as they are given in romanised form. Thus, Chinese names can be registered in Hanyu Pinyin and Malay names are accepted for registration since the Malay language is based on the English alphabet system. RCB has on its register such names as "Huat Chye and Company", "Sabar Menanti Siang dan Malam" and "Daiichi Jitsugyo Co. Ltd". Since there is no requirement for names in other language forms to be registered, companies have the flexibility to use a name in any particular language form to represent their company, in addition to their legal English or romanised form. We have studied the possibility of allowing names in other language forms, like Chinese, to be legally recognised and accepted for registration by RCB, and concluded that it would not be feasible to do so. The main problem lies in the complexities of the various languages, both in their written form as well as in their pronunciation. A Chinese character, for example, can be written in the original complex form or several simplified forms. It can be pronounced in different ways by different dialect groups. Also, different Chinese characters can have exactly the same pronunciation in Mandarin or other dialects. In addition, it is possible for a name in romanised form to be shared by different language forms. This happens when the meaning of a name in a particular language form and as expressed in romanised form is used in the registration of the company.”
“Mr Chia Shi Teck asked the Minister for Finance whether the present system of registering company names in English only will be reviewed.”
“The Monetary Authority of Singapore (MAS) does not collect statistics on housing loans from financial institutions in Singapore in the format requested. Instead, it collects data on the total outstanding amount of housing loans granted by banks and finance companies at the end of each year. The figures for the period 1989 to 1993 are given below: ______________________________________________________ Amount of housing loans outstanding _______________________________________ Year Finance Banks* Companies Total ($bn) ($bn) ($bn) ______________________________________________________ 1989 5.76 1.68 7.44 1990 7.20 1.61 8.81 1991 8.84 1.52 10.36 1992 10.80 1.47 12.27 1993 14.14 1.83 15.97 ______________________________________________________ (*Includes POSBank) Based on a recent survey conducted by MAS on housing loans extended by various banks and finance companies as at 31st March 1994, a total of 102,328 loans totalling $21.5 billion has been granted by these financial institutions to individuals and companies for the purchase of residential properties. The breakdown of the number of loans granted in the various loan quanta is given in the following table: _______________________________________________________________ Quantum of Loan* Number of Loans _______________________________________________________________ Up to $250,000 64,794 (63%) >$250,000 -- $500,000 25,734 (25%) >$500,000 -- $750,000 7,442 (7%) >$750,000 -- $1,000,000 2,453 (3%) >$1,000,000 1,905 (2%) TOTAL 102,328 (100%) _______________________________________________________________ * The above loans cover 90% of all loans given by financial institutions. Statistics on the number of loans with varying repayment periods are not available. REGISTRATION OF COMPANY NAMES 5.”
“Now that the revision has taken place and there has been no change in the annual pensionable salary of a Judge of Appeal and the other Judges of the Supreme Court, it is necessary to validate the pensionable salary paid to Judges of Appeal since July 1993. The Bill is now being introduced in Parliament to repeal and re-enact the JRA to enable the Minister for Finance to determine by order the annual pensionable salaries of the Chief Justice, Judges of Appeal and the other Judges of the Supreme Court as well as to provide for payment of salaries to Judges of Appeal, with retrospective effect from July 1993. Certain obsolete provisions of the existing Act have also been repealed. These changes will expedite the method of revising salaries in future for Judges of the Supreme Court. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Dr Richard Hu Tsu Tau]. Bill considered in Committee; reported without amendment; read a Third time and passed. ROAD TRAFFIC (AMENDMENT) BILL Order for Second Reading read.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The salaries of Judges and political appointees are pegged to senior superscale salaries of the Administrative Service. A general salary revision of Civil Service salaries was made from 1st January 1994. Hence the judicial and political salaries also have to be adjusted. The Judges' Remuneration Act (JRA) sets out the amount of annual pensionable salaries payable to the Chief Justice and other Judges of the Supreme Court. Salary changes for the Judges of the Supreme Court require to be formally effected through an amendment of the JRA. The need to amend the Act each time there is a change in Judges' salaries is rather cumbersome as a Bill has to be introduced in Parliament and taken through three readings. Much time and effort is expended before the amending Act is finally approved and gazetted. A more expeditious method of making changes to Judges' salaries is to empower the Minister for Finance to determine the salaries of Judges by order published in the Gazette. This obviates the need to specify such salaries in the Act itself. A new category of Judges known as Judges of Appeal with a higher pensionable salary than a Judge of the Supreme Court was created from 1st July 1993. The JRA was to have been amended to reflect the salary of a Judge of Appeal who was then paid a basic salary of $21,100 per month or an annual pensionable salary of $253,200. The amendment was, however, deferred in view of the general salary revision, including those of Judges, to be effective from 1st January 1994.”
“All companies will generate waste of some sort or other in the manufacturing process. You cannot eliminate it altogether. It is sensible for companies to try and minimise waste and, particularly, they do not pollute the environment. I still do not believe that we have a major issue here. TEACHERS SERVING IN CURRICULUM DEVELOPMENT INSTITUTE OF SINGAPORE (Special salary scale or incentive) 3. Encik Harun bin A. Ghani asked the Minister for Education whether there is any special salary scale or incentive for teachers serving at the Curriculum Development Institute of Singapore.”
“Tax incentive is an added incentive for everything. I think we need to control this. I am not aware that environmental problems are a major issue in Singapore. I think the Environment Ministry and the companies themselves have, by and large, been good in maintaining careful standards of environmental pollution, whether it is air, oil or smoke emissions. Companies themselves are aware that proper environmental audits can yield net gains for them and increasing awareness, training and making information available should be more than adequate to fulfil our objectives. Environmental pollution is not a major issue in Singapore as far as I am aware.”
“The fact that more prosecutions have been made by the Ministry of the Environment means that vigilance in ensuring that companies observe environmental rules has been heightened. Notwithstanding that, I am still not convinced that we need tax incentives. The National Council for the Environment and the Singapore Manufacturers Association have been organising seminars and workshops to teach company managers how to install environmental audit systems and the methodology involved and a handbook covering these items will be issued. Such tools are much more effective in helping companies move in this area rather than tax incentives. I do not think we want to use tax incentives as a crutch for everything in Singapore.”
“Mr Speaker, Sir, an environmental audit is an internal management tool for a company to carry out a systematic and objective evaluation of how well it is performing in terms of helping to safeguard the environment. Environmental audits can yield economic benefits to the company. More and more companies are finding that being environmentally-responsible can help improve their public image and assist in the marketing of their products. More importantly, such audits can help achieve greater energy efficiency and waste minimisation and hence result in cost savings for the companies concerned. As environmental audits are internal management tools which companies can benefit from, it will not be necessary to provide tax incentives for companies to carry out such audits.”
“Indeed, we do, and the Ministry of Trade and Industry keeps a very close eye. If individual companies encounter serious problems, I suggest they raise them with the Ministry of Trade and Industry and they will be brought to our attention.”
“I have just said earlier that in trade weighted terms, the appreciation has not been as spectacular as the US dollar. But for those companies whose export is mainly to the US market and therefore are much more sensitively exposed, they can manage short-term risks through the financial markets.”
“Over the longer-term, however, such companies can only remain competitive and viable by improvements in productivity, by automation or by relocating their more labour-intensive operations offshore. Singapore Airlines is an example of an international service company which has continued to grow and remain profitable, notwithstanding the fact that much of its income is denominated in foreign currencies. Japanese companies have also learned to survive under much heavier foreign exchange burdens. Between the end of 1984 and July this year, the Japanese Yen appreciated by 156% against the US dollar. Over the same period, the Singapore dollar rose by 44% against the US dollar.”
“The Government's exchange rate policy is to promote sustainable non-inflationary growth. Attempts to weaken the Singapore dollar artificially in support of specific export sectors would only buy us temporary improvements which are quickly undermined by inflation, given our heavy reliance on imports and the current tight labour market. A weaker Singapore dollar raises the cost of imports. Under tight labour market conditions, the increase in labour demand resulting from the short-term gain in export competitiveness will exacerbate overheating in the labour market. Workers will want to make up for the cut in real wages caused by higher prices of imported food and other consumer goods. The resulting increase in wages and other costs will quickly offset the gains from a weaker currency. Macro-economic policy tools, like the exchange rate, can seek to provide a stable framework for sustained economic growth but cannot on their own ensure that this is achieved. With inherent limits to labour force growth in Singapore, only improvements in productivity can generate international competitiveness and sustained economic growth. Government will continue to promote education, skills upgrading and encourage the adoption of new technologies. Government will also continue to lower corporate and personal income tax rates over time in order to enhance the supply side efficiency of the economy. It is recognised, however, that a strong and appreciating currency will affect some companies more than others, depending on the sources of their income and their import content. Over the short-term, companies sensitive to Singapore dollar appreciation can manage their currency exposures by hedging in the financial markets.”
“Mr Speaker, Sir, since the end of 1993, the Singapore dollar has risen by around 6.5% against the US dollar. However, this rapid rise of the Singapore dollar against the US dollar is more a reflection of the weakness of the US dollar against all international currencies than any unusual strengthening of the Singapore dollar. Over the same period, the Singapore dollar has actually weakened by a range of 2-6% against the Japanese Yen and most European currencies. In trade weighted terms, the Singapore dollar on average has appreciated by much less against the currencies of our export competitors than against the US dollar. The value of a country's currency at any point of time is a reflection of its economic fundamentals and market sentiment. The strength of the Singapore dollar over the past few years thus reflects market demand for the Singapore dollar and our strong economic fundamentals which include low inflation, budget surpluses, high savings, large reserves and a strong balance of payments. Indeed the strength of the Singapore dollar has itself been a factor underpinning our economic fundamentals. The appreciation of the Singapore dollar in recent years has allowed us to neutralise imported inflation, a crucial consideration, as we import some 70% of consumer goods as well as capital and intermediate products used in exports. For the economy as a whole, our international competitiveness has not been affected. Singapore is now in an enviable position of having high economic growth, averaging 10% over 1993 to early 1994, as well as low inflation of about 3%. The volume of non-oil domestic exports has increased by over 20% in the first five months of this year, compared with 17% in 1993.”
“The total number of vacancy refunds for residential properties from 1990 to 1993 annually is as follows: 1990 1991 1992 1993 3,269 3,235 3,568 2,597 The figure for 1993 is incomplete as applications for exemption are still being processed by the Inland Revenue Authority of Singapore. BUSINESS LANGUAGE PROGRAMME 11. Dr Kanwaljit Soin asked the Minister for Education whether a comprehensive business language programme will be implemented to teach languages like Bahasa Indonesia, Bahasa Melayu, Hindi, Khmer, Thai, etc so as to equip Singaporeans for the external wing of the economy.”
“Under the second Share Ownership Top-Up Scheme (SOTUS) announced in February 1994, Singaporeans will qualify for the $300 top-up in their CPF accounts if they contribute at least $750 into their accounts over the qualifying period from 1st March 1994 to 31st August 1995. Government recognises that full-time National Servicemen are performing compulsory service to the nation. That is why during the first SOTUS in 1993, a loan scheme was arranged for national servicemen who were eligible for the top-up but did not have sufficient contribution in their CPF accounts during the qualifying period to benefit from the $200 top- up. For the second SOTUS exercise, MINDEF will consider providing a similar loan scheme to help such national servicemen. As for retirees, Government recognises the contributions that they have made to the nation. However, Mr Chia's suggestion of giving the top-up without a matching contribution runs against the fundamental principle of co-payment from citizen CPF members including retirees, to qualify for the top-up. While we appreciate their past contribution, it would be wrong, in principle, to give retirees the $300 without matching contribution, which applies to all. PRIVATE RESIDENTIAL PROPERTIES (Property tax exemption) 10. Mr Chia Shi Teck asked the Minister for Finance how many owners of private residential units had applied and were given property tax exemption on account of non- occupation from 1990 to 1993 annually.”
“Operation of jackpot machines is restricted to private clubs. A list of the clubs operating jackpot machines as well as the number of machines operated by each club is in Annex A (Cols. 79 - 84). Annex A - CLUBS AND NO. OF MACHINES (Cols. 79 - 84) IRAS takes a number of factors into account in deciding on whether a club should be allowed to operate jackpot machines as well as the number of machines it should be allowed to operate. Some of the factors include membership size of the club, financial standing of club members, organisational structure and managerial control of the club. Duty collection from jackpot machines amounted to $112 million in 1993. IRAS' criteria for approving applications from clubs to operate jackpot machines are already fairly stringent. Conditions are also laid down on maximum payout for each machine and restriction of access to club members, etc. Any club found violating these conditions is liable to have its licence to operate jackpot machines suspended. The existing controls are sufficient. There is therefore no intention to impose further controls to restrict the operation of jackpot machines. SHARE OWNERSHIP TOP-UP SCHEME (For full-time National Servicemen and retirees) 9. Mr Chia Shi Teck asked the Minister for Finance if he will consider (i) extending the $300 Share Ownership Top-Up Scheme to full-time National Servicemen as an endorsement of their service to the nation and (ii) giving the $300 straight into the Central Provident Fund account of retirees as a recognition and reward for their past contribution to the nation.”
“The Member has asked for higher tax relief or lower tax burden for workers aged 55 and above. There is no need to revise the tax relief. With the GST-related tax changes taking effect from Year of Assessment 1994, around 75 per cent of the individual taxpayers will no longer pay any income tax. In the past, a worker aged above 55 would only need to pay income tax if his annual income exceeded $5,700. This income threshold will now be increased to about $23,000. It is true that in line with their lower statutory contributions to CPF, the tax deduction enjoyed by those aged above 55 on their CPF contributions will be correspondingly lower. This is however partly offset by the higher earned income relief for those aged above 55. The earned income relief is $3,000 for those aged above 55 to 60 and $4,000 for those aged above 60. The higher earned income relief is given to encourage the elderly to remain in the workforce. JACKPOT MACHINES IN PRIVATE CLUBS 8. Mr Chia Shi Teck asked the Minister for Finance (a) if he will state (i) the names of private sports and recreation clubs with jackpot machines; (ii) the number of such machines allowed and operated by each club and the basis of allocation; and (iii) the revenue generated to each club and the taxes paid to the Government from 1989 to 1993; and (b) whether there is any intention to curb this form of entertainment.”
“The owner of the property at #03-06 Pek Chuan Building at Lavender Street owes a substantial amount in tax arrears. The owner had been given more than sufficient time to make payment but had ignored the warnings issued by the Inland Revenue Authority of Singapore (IRAS). IRAS will auction off a property only where the tax arrears are substantial, an owner has repeatedly ignored warnings and has made no arrangements for payment, and all other enforcement measures have failed. If the auction price is sufficient, IRAS will only recover the tax arrears and expenses and no further action will be taken. However, if the auction price is insufficient, IRAS will continue to pursue the remainder of the arrears in accordance with the law. WORKERS AGED 55 YEARS AND ABOVE (Tax relief) 7. Mr Chia Shi Teck asked the Minister for Finance if he will consider granting a higher personal relief or a lower tax burden to workers who are 55 years of age and above and still working.”
“I do not recall exactly when it was set. I think $3 million is quite adequate even now.”
“That is true. But $10 million is a lot of money. I think very few people own properties worth more than $10 million.”
“Mr Speaker, Sir, I do not think so because our estate duty rates are quite low. So far, we are not aware that this is a problem because for property values exceeding $3 million, up to a limit of $10 million, the tax is only 5%. Thereafter, property values exceeding $10 million are taxed at 10%. So it is not an onerous tax at all. For those who are very wealthy, I think it is neither here nor there.”
“It remains cost effective because it is extremely easy to collect. Mr Chiam See Tong: If people own properties worth more than $3 million and also cash, would there not be a danger of these people in their lifetime trying to repatriate their money abroad, rather than leaving it in Singapore? If the value of their properties becomes too big an amount, will they leave their money outside Singapore rather than leaving it here? Would that be a problem?”
“Mr Speaker, Sir, estate duty is a form of wealth tax which the Government uses to achieve the social objective of an equitable redistribution of wealth. Residential properties up to a certain value are exempted from estate duty. The intention is to give relief to beneficiaries in the lower and middle income groups. The exemption protects dependants of the deceased who might otherwise have to dispose of their family home to pay estate duties. At present, the exemption limit for residential properties is $3 million. This is irrespective of the number of residential houses owned by the deceased. Despite the recent increases in property prices, the existing ceiling should provide adequate relief. It covers all HDB and HUDC flats as well as most private apartments and landed properties. Only the very wealthy in the population need pay estate duty on residential properties.”