S. Chandra Das
Singapore
“There is certainly a limit as to what volunteers can do. These organisations can do with additional funding from the Government. With additional funding, I believe the self-help groups can do much more. Sir, I would like to ask the Minister about the various support and assistance given to the self-help groups in Singapore.”
“Sir, ASEAN has come a long way since its founding. No one can deny that ASEAN as a regional grouping has been a great success. Not only is ASEAN strong in terms of regional grouping, it is also expanding. Vietnam has joined ASEAN in 1995. Cambodia, Laos, Myanmar are expected to join ASEAN before the end of the century.”
“The public will be able to know the actual expenditure incurred. The operators on their part must charge realistic fares, and any increase should be reasonable and commensurate with the level of service provided. In this way, the public will be satisfied and will not feel short-changed.”
“Sir, I would like to ask the Parliamentary Secretary what other measures are being considered by his Ministry. Assoc. Prof. Ho Peng Kee: Sir, other possible measures would include confiscating the handphone, increasing the number of demerit points or, if necessary, making phone driving a specific offence.”
“Sir, I beg to move, That the sum to be allocated for Head V of the Main Estimates be reduced by $10 in respect of Code VD 1500. Sir, there are many reasons for the success of Singapore as it stands today. The contribution of the Singapore civil service is an area which should not be underestimated.”
“Sir, I hope the media does not dub RAdm Teo as also "Mr No" from tomorrow. On that note, I withdraw my amendment. Amendment, by leave, withdrawn. The sum of $518,536,590 for Head N ordered to stand part of the Main Estimates. The sum of $769,080,900 for Head N ordered to stand part of the Development Estimates. Head L -”
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“There is certainly a limit as to what volunteers can do. These organisations can do with additional funding from the Government. With additional funding, I believe the self-help groups can do much more. Sir, I would like to ask the Minister about the various support and assistance given to the self-help groups in Singapore. Also, whether he is satisfied with the work and progress of these self-help groups. Lastly, whether his Ministry or the Government has any plans for giving them additional funding.”
“Self-help groups like Mendaki, CDAC, SINDA and the Singapore Eurasian Association have done much to help their respective communities. Also, the organisations have the support of their respective communities. Government assistance and support has also been extremely useful. When these organisations were set up, the primary role envisaged was that of the upliftment of the educational standards and levels of persons concerned. As such, Sir, I must congratulate them as they have done much in the field of education for the various groups. The tuition classes and the various motivational programmes have certainly helped many border line students. We have also seen improvement in performance of the students in the various landmark examinations. Today, the role of the self-help groups has extended well beyond providing tuition for weaker students. They also cater for brighter students in the community. The self-help groups are also now getting actively involved in other areas, such as provision of family services, vocational training and, more recently, drug abuse, just to mention a few. Sir, these activities are inter-related and it is also connected with the problem of low academic achievement. The self-help groups cannot but get involved in these new areas. Also, Sir, they are well placed to take on this additional role. Sir, if the individual communities can help and do well and solve part of the problems, then the nation would be richer for it. The respective communities have been supportive of the programmes, both in terms of providing voluntary services as well as making financial contributions through the CPF cbeck-off scheme. Sir, these organisations are finding it more and more difficult to finance the new and additional programmes.”
“Sir, ASEAN has come a long way since its founding. No one can deny that ASEAN as a regional grouping has been a great success. Not only is ASEAN strong in terms of regional grouping, it is also expanding. Vietnam has joined ASEAN in 1995. Cambodia, Laos, Myanmar are expected to join ASEAN before the end of the century. Sir, ASEAN started as a small grouping and with these additional members new stresses and strains will come about. I would like to ask the Minister, firstly, what are the challenges and problems ahead for ASEAN? Secondly, what does he see as the future direction of ASEAN as a regional grouping?”
“There are also bilateral disputes among ASEAN members, but I am confident these disputes are not likely to lead to any military confrontation. The main reason is that the ASEAN governments abide by the principle that disputes should be solved through peaceful means. For example, between Malaysia and Singapore, we have the problem of conflicting claims over the island which we call Pedra Branca. This problem is not likely to lead to conflict because it has already been referred to the International Court of Justice. Sir, the Asia-Pacific region is likely to remain a peaceful and stable region. Most governments are committed to policies aimed at generating economic growth and providing a higher standard of living for the people. But, like most matters, the situation can be unpredictable. Hence, it is incumbent upon our Government to ensure that we have a strong defence force to protect our national interest and security. Regional disputes is one factor which the Minister will have to take into account in its planning of a strong and effective defence force. Sir, I would like to ask the Minister for Defence to inform this House the steps that are being taken to ensure that we have an effective defence force.”
“Sir, the Asia-Pacific region is an area free from any outbreak of military conflict or war. This is in sharp contrast to other regions of the world where warfare continues to cause much suffering. For example, Bosnia in Europe, Israel in the Middle-East and Sri Lanka in South Asia. But, Sir, this is not to say that there is no potential for conflict in the Asia-Pacific region. In fact, there are a number of regional disputes which may become worse and result in open military confrontation. As my two other colleagues have mentioned, the most significant conflict in the region is the dispute between China and Taiwan. Presently, tension is very high across the Strait. There is always a danger of miscalculation by either side and this can easily lead to open warfare. As the Senior Minister has said, both China and Taiwan should sit down and negotiate on terms for a peaceful settlement within the framework of eventual reunification of China and Taiwan. Another regional dispute which involves China is the rival claims for the Spratly group of islands in the South China Sea. There are six claimants to the various parts of Spratly, namely, China, Taiwan, Vietnam, Philippines, Malaysia and Brunei. Some of the claimants have constructed permanent structures, and some may have even stationed troops on the disputed islands. Again, it is hoped that the parties would seek a peaceful settlement of the dispute on the basis of respect for each other's independence, sovereignty, territorial integrity and a peaceful settlement of the dispute. Maybe the dispute should be referred to an international court of justice so that a fair and equitable solution can be achieved.”
“So I believe tax breaks alone will not solve the problems facing the industry. There has to be a shake out and some may have to go under. The Government can help by being more flexible to changes. There is, at this moment, an over supply of retail space and at the same time office rentals are soaring because of shortage. I am told by some developers that they would be happy to convert their current retail space into office space, if the Government can be a little bit more flexible in their approvals and also a bit generous. If their request for conversion is granted, I believe we will be solving two problems in one, ie, over capacity in the retail sector and shortage of office space. By agreeing and making conversion easy, the Government will be helping the retail sector tide over the present difficulties. Maybe the Government should have more discussions with developers on this issue. Any assistance from the Government at this point will be timely. In conclusion, Sir, let me once again thank the Minister for a very generous Budget and hope that this will be the direction of future Budgets, barring unforeseen circumstances.”
“While this is welcome, I am wondering whether a similar scheme can also be introduced for labour efficient equipment. Labour is a scarce resource in Singapore and over dependence on foreign workers can cause all sorts of problems. For example, the construction industry, which is heavily dependent on labour will certainly take advantage if such a scheme can be introduced. A similar scheme for labour efficient equipment will not only improve productivity and efficiency, but, more importantly, it will lead to less dependence on foreign workers. Maybe the Ministry of Labour and the Finance Ministry can examine this proposal. My third area of concern refers to the retail sector. Many Members in this House have spoken about the problems of the retail sector and I just want to quote from the Economic Survey: `The volume of retail sales grew by a modest 2.6% in 1995. Most sub-sectors performed weakly. Over the past few years, retail sales have been adversely affected by a number of factors. These are the diversion of consumer spending to asset purchases like car and private property, slower tourist arrivals and lower spending per tourist and a growing tendency for Singaporeans to shop abroad.' Added to this is the factor of the strong Singapore dollar. The only break for this sector from this Budget is the reduction in property tax. Hopefully, the landlords will respond to the Minister's call to pass on the savings in full to their tenants. Sir, the effect of the property tax reduction on the battered retail industry, I believe, will only be very marginal. The problem may be a larger one, even a structural one. There are too many players in the retail sector, overbuilding of retail space, development of regional centres, changing patterns of tourist spending.”
“Mr Deputy Speaker, Sir, many words have been used inside this House and outside to describe this year's Budget Statement presented by Dr Richard Hu, Minister for Finance. To me, this is an excellent Budget with something for everyone. I have sat through quite a few Budget Statements in this House and I can safely say that this is the most generous one which combines tax cuts, Share Top-Up Schemes, rebates and tax exemptions. Despite these generous transfers back to the people, the Government will still end up with a surplus of more than $7 billion for the year 1996. Sir, Singaporeans must stand up and congratulate the Government for its fine management of the economic affairs of our nation. This is no mean effort, considering what is happening around us in the world. Sir, I would specifically like to comment on three areas covered in the Budget Statement. Firstly, Government has raised the estate duty exemption on property from $3 million to $9 million. Last year, during the debate in the Committee on Supply on the Ministry of Finance, I pleaded with the Finance Minister to have the limit raised rather modestly. I do not have to tell you what answer I got last year. However, Sir, I am extremely grateful to the Finance Minister for raising the level from $3 to $9 million. But I wonder why such generosity. Sir, I also welcome the accelerated depreciation allowance for approved energy efficient equipment and efficient pollution control equipment. Under this scheme, the accelerated depreciation allowance will be for a period of one year which means capital expenditure can be expensed off in one year. This will certainly go a long way to help conserve energy and protect the environment.”
“The public will be able to know the actual expenditure incurred. The operators on their part must charge realistic fares, and any increase should be reasonable and commensurate with the level of service provided. In this way, the public will be satisfied and will not feel short-changed. I welcome the Government's decision to establish the principle of asset replacement at current cost borne by the generation using it. This means that operating costs will be lower and the higher cost of future asset replacements will be borne by future governments. The people should be thankful to the Government for this. In conclusion, Mr Deputy Speaker, the White Paper sets out the challenges we face on the road to a world renowned land transport system. With the cooperation of all parties and the consensus of all Singaporeans, I am confident we will realise our aim to raise the standards of our land transport system and the quality of our life.”
“If services are satisfactory, I think a small increase in fare will not be an issue. In this age of progress, time is essential. If commuters can reach their destinations rapidly, I am sure they would be willing to pay a slightly higher fare. Mr Deputy Speaker, in Chapter 4 of the White Paper, the LTA envisages a network of roads and expressways covering all parts of Singapore including Pulau Ubin and Pulau Tekong. I am impressed with such meticulous and ambitious planning. With this network of roads and expressways, motorists will be able to go from one part of Singapore to another very quickly. I hope the construction of the Seletar and Tampines Expressways will be expedited, so that the current congestion along PIE can be relieved. The Government can also, as an immediate measure, install cameras at various places along the PIE to monitor the traffic jams that take place there daily. Regular announcements on the radio about the jams will help drivers to avoid them by taking other routes. I believe this immediate measure will help relieve the congestion along the PIE and help motorists to save fuel. Mr Deputy Speaker, the land transport financing policy spelt out by LTA, which is based on cost-sharing, should have everyone's acceptance. But before we implement this idea, I think the Government should offer clearer explanations. Personally, I agree with the principle. The idea is that the Government will provide the infrastructure, the commuters will pay for the operating costs and the operators will provide good service at reasonable fares. This partnership between Government, commuters and operators will lead to a consensus that will benefit all parties. It is important to stress the openness of the government when building the land transport infrastructure.”
“If the SBS and TIBS fleets are inadequate to cope with commuter demand in the morning and evening peak hours, can we not consider allowing more private buses, such as school and factory buses, etc, to carry passengers during those hours? This will help cut down waiting and travelling time, especially in those districts which are densely populated. We will also be making more efficient use of the available resources in the private buses. The Government can charge fees through additional licences for the bus owners to carry passengers during those limited hours. We should take private bus resources into account in our overall planning for improvement in bus services. As regards the MRT, we need extra trains to reduce crowding. This is to help commuters at intermediate stations like Bedok, Kembangan or Bishan and Toa Payoh get seats in the trains on their way to work. Mr Deputy Speaker, the construction of covered pedestrian footpaths needs to be speeded up for the benefit of MRT and bus commuters. This is to make it more convenient for them to use public transport and to encourage more people, especially motorists, to do the same. Pedestrians also want footpaths which are lined with shady trees for natural shelter. For cyclists, they would welcome more bicycle parking facilities. I hope with these amenities for pedestrians and cyclists, more people will heed our call for a healthy lifestyle. Mr Deputy Speaker, living in a small island, it is reasonable and logical for us to focus on rail systems as the means of travel to all parts of the country. I feel rail must form the backbone of our land transport system. The Government's plan to build the North-East line must be expedited for the sake of people living in Hougang, Serangoon and Punggol.”
“Encik Ibrahim bin Othman (Thomson GRC)( In Malay): Mr Deputy Speaker, I fully support the motion in the name of the Minister for Communications. The White Paper presents a comprehensive description of our policy on the future land transport system. It articulates our aim to have a world class land transport system capable of meeting the demands of a rapidly growing city, as well as satisfying the people's expectations of good service and high quality infrastructure. The paper promises us improvements in all aspects of a land transport system that incorporates the bus, the MRT and the taxi. Mr Deputy Speaker, I support the operation philosophy and the long-term and short-term initiatives and objectives discussed in the White Paper. The Land Transport Authority's aim to build a $10 billion land transport system that will equal the airport and the port in standards must be supported by all Singaporeans. If the plans can be implemented in an orderly fashion, we will realise our vision of a city of excellence within the next 10 or 15 years. For this to happen, Singaporeans need to give the LTA their full cooperation and support as it strives to carry out its plans. But even as we draw up long-term plans for a world class system, there are short-term measures we must take to improve the land transport system as it is today. The people want comfortable, convenient and rapid travel to their destinations. Immediate action has to be taken to solve the problems of congestion along our expressways and the crowding in our buses and MRT trains. The waiting time for buses and trains needs to be cut down by increasing the number of buses and trains.”
“It is stated in the White Paper that the Government is prepared to co-finance the purchase of the trains with SMRT by requiring SMRT to pay only for the historical cost of the train when replacing it 30 years later. For the existing MRT trains, the historical cost is $1.6 billion. Government will pay for any asset inflation. The same principle should at least apply to buses. The cost of the bus fleet renewal is no cheaper than the train. Based on the age of at least 12 years for a bus, at an average cost of $250,000 per bus, and the current fleet of about 3,200 buses, bus operators have to pay $2 billion over the same period of 30 years and, further, the entire $2 billion is to be paid over 30 years, unlike the MRT which needs to pay only $1.6 billion on the 30th year. I would urge the Minister to take another look at the bus operators on the new financing framework. I think they deserve to be part of the new social contract. The days of quantum jumps in productivity gains are over, and this is likely to place an upward pressure on bus fares. This, I submit, Sir, will in the long run be very regressive. Any assistance given to the bus operators should go towards maintaining fare structure and not to boost their bottom-line. In conclusion, Sir, let me state that the White Paper sets out clearly our vision for the future. It is not a dream. The key is in the implementation. The immediate improvements must be real and not merely cosmetic. Convenience, reliability, comfort, ease of use, affordability and competitive travel time, must be felt and enjoyed by our citizens. If commuters can see some of these benefits in the initial stages, I am confident that Singaporeans will go the extra mile with the Land Transport Authority. Sir, I support the motion.”
“Sir, in order to get the understanding, support and cooperation of all Singaporeans, these issues must be brought down from the philosophical level to the ground level. I believe more explanation and education of the public must be carried out by the LTA. Sir, I would want to comment on the financing framework mentioned in the White Paper. I support the principle that this framework is based on the concept of partnership, ie, Government provides infrastructure, commuters pay for operating costs, and operators have to operate efficiently. Sir, however, I cannot understand why buses have been excluded from the financing arrangement. Two decades ago, we were all debating whether an all-bus solution would be preferred as a means of transport for Singaporeans or whether the train had a role to play. Today, looking at the White Paper, one wonders whether such debates had actually taken place. Indeed, it would appear more natural to ask whether an all-train solution would be more preferable. However, Sir, the White Paper states that we need to depend on MRT, LRT, and the buses. If buses are an integral part of the transportation system, then the financing framework should also take into account the buses. We need to focus on buses too. This is especially so when I am told that 41% of all the trips made today are by bus (3 million trips in all) and MRT accounts for 700,000 trips, which is about 10%. Singaporeans, especially from the lower income group, are still very much dependent on buses. As such, the Government should make every attempt to make sure that the bus operations continue to be efficient and our bus fares affordable.”
“Mr Deputy Speaker, Sir, if Mr Chiam thinks that this White Paper is an election document, I suggest that he uses some of the good ideas, which are put in the White Paper, during his election campaign. Sir, Singaporeans are a widely travelled lot and can clearly see and understand the transport problems faced in many countries, like Thailand, Taiwan and Japan, to mention a few. We have been a little fortunate because of the various measures introduced over the years to keep our system in check. Most of the measures like ALS, COEs, were not popular when they were introduced, yet they had to be introduced. Most countries would like to introduce some of these measures that we have implemented here, but for various reasons they are unable to do so. Sir, I welcome the White Paper as it sets out how the Government intends to solve the transportation problems in Singapore or, in fact, to go about establishing a world class transport system. So far I must say that our attempts have been piecemeal and this White Paper sets out the problems clearly and how they are to be tackled over the years. If not tackled now, the problems will grow and become totally unmanageable. This White Paper sets out clearly the issues involved and how they are to be addressed. It is not always easy for the man-in-the-street to see the big picture. He is in fact concerned with his own needs. Many people I have talked to, the basic questions they ask are always the same: (1) Will I benefit from this vision? (2) Will it mean more convenience and comfort? (3) Will it mean higher cost for me or, as some people have glibly put it, "World class system at first class prices"?”
“Sir, I would like to ask the Parliamentary Secretary what other measures are being considered by his Ministry. Assoc. Prof. Ho Peng Kee: Sir, other possible measures would include confiscating the handphone, increasing the number of demerit points or, if necessary, making phone driving a specific offence. But for the moment, we will continue to monitor and see whether the situation warrants considering these other measures.”
“Their time and specialist knowledge could certainly be put to better use. More generous funding from Government will help to alleviate this area. Secondly, corporations and the more generous in our society are constantly asked to fork out donations for one charity or another, be it the Community Chest, children's home, welfare home, Kidney Foundation, you can keep on going. Sir, Singaporeans are, by nature, very generous and I believe many are beginning to feel the overload. There is a case for greater Government involvement in this area. I believe more hands will be forthcoming if the big hand of Government sticks up in front. I would appeal to the Minister to persuade his colleague, the Finance Minister, to make more funds available for voluntary organisations. If generous funding is available from Government, I believe more can be done to help the poor and disadvantaged by the volunteers and voluntary organisations. Sir, having said this, I would like to ask the Minister for Community Development whether his Ministry has any new plans and programmes to take care of the disadvantaged amongst us? Secondly, I would like to know what has happened to the 25th Anniversary Endowment Fund. How much has been disbursed and to whom? Are there any plans to have a 30th Anniversary Charity Fund with Government matching dollar for dollar?”
“Sir, the welfare programme of the Ministry of Community Development aims to develop a compassionate and caring society through the participation of volunteers and the community at large. Sir, towards this end, I am very happy to note that for the financial year 1995/96, there is an increase of 44.7% in the Ministry's budget over the previous year. As a percentage of GDP, the Ministry's share will now increase from 0.24% to 0.31% over last year. This is a good sign. Sir, the Government's record in most areas of activity, be it in the administration of the port, airport, telecommunications, is excellent. In fact, we are No. 1 in many fields. I would like to see the day when we are rated No. 1 for looking after the disadvantaged among us. We are not a poor country and also we need not go to the other extreme of giving handouts in the form of State welfare. We have to strike a judicious balance. In any society, there will be a percentage in the population that needs special attention. We are not alone in this. It is, therefore, very important for the Government to play a major role in looking after the needs of the disadvantaged in our midst. The appeal for many helping hands, as spelt out by the former Minister for Community Development, is a good one and should be encouraged and supported by all. But I believe that the biggest hand must be that of the Government. Some believe that the Government's hand is getting smaller and, in some cases, even becoming invisible. Here, Sir, I would like to pay tribute to all the volunteers and voluntary organisations for their sacrifice and dedication to help the disadvantaged. Whilst they are happy doing this, many feel that a good part of their energy and time is spent on fund raising.”
“Sir, I hope the media does not dub RAdm Teo as also "Mr No" from tomorrow. On that note, I withdraw my amendment. Amendment, by leave, withdrawn. The sum of $518,536,590 for Head N ordered to stand part of the Main Estimates. The sum of $769,080,900 for Head N ordered to stand part of the Development Estimates. Head L -”
“Sir, the Minister of State has not answered on the estate duty. RAdm Teo Chee Hean: I am sorry. On the question of estate duty, in Singapore we do not levy any capital gains tax and estate duty is a form of wealth tax which the Government uses to moderate the distribution of wealth in Singapore. Residential properties up to a certain value are exempt from estate duty and the intention is to give relief to beneficiaries in the lower and middle income group. The exemption protects the dependants of the deceased who would otherwise have to dispose of their property and family home to pay estate duty. At present, the exemption limit for residential properties is $3 million and this is irrespective of the number of residential houses owned by the deceased. Despite the recent increases in property prices, the existing ceiling remains adequate to cover all HDB and HUDC flats and there are only 11,300 properties, ie, about 1.6% as at the end of February 1995, which are worth more than $3 million. So only the more wealthy in the population need to pay estate duty on residential properties. Based on IRAS's experience, to-date, those in the wealthiest segment of the population who have had to pay estate duty on residential properties had not experienced any difficulty doing so.”
“For example, last year, I spoke to Administrative Officers and one of them stood up and said, "I went to Germany and I graduated at the age of 28, because the course is long and I have to learn German. By the time I came back to start work, national service and so on, I was quite old. And you say that I will make Superscale G by the age of 32. I calculate that even if I get a promotion every year, I won't make it there. What say you?" I reassured him. First, if he is good, he will get there. Second, if for technical reasons he cannot make it at 32, then at the next promotion after that, he will catch up and we will not hold it against him. In fact, we should reward him for having gone on a more adventurous, more arduous, course and come back with a tale to tell. So we hope more will follow his example. Mr Chandra Das: Sir, I would like to thank the Deputy Prime Minister and beg leave to withdraw the amendment. Amendment, by leave, withdrawn. The sum of $106,748,280 for Head V ordered to stand part of the Main Estimates. The sum of $24,315,700 for Head V ordered to stand part of the Development Estimates.”
“This is where we must understand our neighbours, how they succeed, what their values are, what their thinking is. I agree with him. The PSC has been granting scholarships for undergraduate studies to universities in Japan since 1961, now more than 30 years. In 1978, they started sending students to Taiwan and since 1993, we started sending students to the PRC. Now we send more than 10 students a year to these countries. Mr Lau is completely right that we have an over concentration and emphasis on British and American universities because of our heritage, because of our English-speaking background. It is a problem. But the problem is not that the PSC is not giving enough scholarships or willing to award them. The problem is to find enough students who are willing to study these languages and to be channelled into these other systems to study what still appears to them something alien, and have the confidence that they will come back, first, with as good an education, second, with career prospects undiminished from having gone to another course, taken longer and maybe not as familiar or prestigious a university. This is a problem. I think that as more students in the schools study Japanese, German or French, third languages, the supply will increase. It is the right thing for them to do individually, because if you know who are the peoples who are going to be the wave of the next century, you want to have a fair proportion of Singaporeans who know Japan, China or Taiwan as closely as overseas graduates know Australia, New Zealand, England or the Ivy League universities in America. The PSC will continue to encourage students who are suitable to take up scholarships in these non-English speaking countries. There were some hindrances.”
“Good employers pay for them. BG Lee Hsien Loong: Good employers do so. Generous employers do so. PSC estimates the long-term attrition of scholars at 50%. In other words, by the time they reach their 40s or 50s, half still remain. I think this is optimistic because, from my experience of Administrative Officers, there have been many years where the whole cohort has disappeared, long before they reach their 40s or 50s. The basic question is: are we better off with too much talent inside the Government or too much talent outside the Government? Or to put it in another way: do you prefer a Permanent Secretary who knows more than his job requires and therefore can keep control of the overall situation? Or do you prefer the private sector person to be smarter than the Permanent Secretary, running rings around him, because the private sector is where the wealth is being created? My preference, which can only have been confirmed by the Barings' experience, is to have a Permanent Secretary who knows better than the private sector. And if there are too many such Permanent Secretaries, I can tell you that talented young Singaporeans are very sensitive to over crowding, and if they see that there are other very bright people around who are already occupying key posts and not in danger of imminent retirement, they will make their own plans and movements, and deploy themselves into the private sector, as many have been doing. So I think, overall, we do not have a bad situation. Our challenge is to keep it like this and to strengthen the public sector as much as we can. In this respect, I believe the private sector can look after itself. Mr Lau Ping Sum suggested giving more scholarships to the Asia Pacific region, because this is where the boom is.”
“And yet the number of students whom the PSC has awarded their top level of scholarships - the Overseas Merit Scholarships, the SAF Scholarships, SPF Scholarships or the President's Scholarships - has remained constant, about 50 a year. The students have so many alternatives to PSC scholarships that, in fact, the PSC has to struggle to get students to be interested in their brand of scholarships. And if you read the special feature in the Straits Times last week, I believe, on two days, you will see the enormous menu of choices which pupils have available, including, not least, parents' scholarships, for thousands of Singaporeans. The problem is not an over concentration of talent. Our worry is the opposite one. Are we still getting the best in on the PSC scholarships so that the public service starts off with a fair share of outstanding talent and later on they can bloom and go wherever they are needed in the private sector, in the statutory boards, GLCs, civil service, politics, whatever? We are not sure. We ask ourselves this question every year. We try to study the data. Data show that their examination results are as good as ever. And we know that at the entry point, when people first join the civil service, they show a lot of talent and promise. But will we have the same outstanding civil servants whom we produced a generation ago who are now Permanent Secretaries? We are not sure and we will have to wait and see. We are concerned. Even after we get people in, we have a hard time keeping them there. Only 70% of scholars complete their bonds. We post draconian bonds, but 30% find ways to pay them off.”
“Of course, some European countries like Germany, France and Asian countries like Japan and China do offer university places for our scholars. But the numbers are small. I feel that we should offer more scholarships tenable in universities in Asia, because this will be of increasing importance to our young. If our better students are receiving university education only in the West, they would gradually lose a sense of the history and culture of Asia. The success of Japan must have quite a lot to do with her traditions and culture. Their quality control, their work attitude and company loyalty are important success factors. The economic reform in China has caused many people to start learning Chinese. Although we have been promoting the bilingual policy in Singapore for many years, most of our students can only handle simple, daily conversation in Chinese. If they were to engage in more technical and profound discussions or business negotiations, they would, more often than not, find their command of the language inadequate. I feel that the PSC should offer more scholarships for our students to go for further education in the universities in the Asian countries. BG Lee Hsien Loong: Sir, Mr Das asked whether there is an over concentration of scholars in the public sector. I regret to report that there is no such over concentration. The number of students scoring outstanding 'A' level results has gone up year after year, as our students get better prepared. The JCs do a good job of teaching them, 'A' level results improve. Numbers scoring three As, four As, by the hundreds.”
“Sir, I beg to move, That the sum to be allocated for Head V of the Main Estimates be reduced by $10 in respect of Code VG 1500. Sir, it was stated in this House in 1989 by BG Lee Hsien Loong that top talent is a national resource which must be properly managed. We must be able to deploy them anywhere we need them in the public sector or even in the private sector, and not just within the narrow confines of the service which they belong to. Sir, our bright students win President's Scholarships, SAF Scholarships, Overseas Merit Scholarships and are bonded to serve the Government after completion of their courses. This policy has resulted in the over concentration of talent in the public sector. While the public sector has benefited from this, I think it may have also created some problems of overcrowding and bunching. I would like to ask the Minister whether the Government has any plans to share this talent pool with the private sector. Especially with the regionalisation drive, there is a need to re-examine this policy. Mr Lau Ping Sum (Ang Mo Kio GRC)( In Mandarin): Sir, we have entered the information age. All kinds of information have been pouring in. This great amount of information sometimes makes it very difficult for people to handle. Some people say that information, and not land, labour and capital, has become the key competitive factor in the world today. Singapore is a small country. We have been sending our students to be trained overseas. It is a good policy. But the trend so far has been to send students mainly to the English-speaking world. Every year, the PSC has been awarding many scholarships to our young people to foreign universities for undergraduate studies, mainly in the United States and the United Kingdom.”
“I thank the Deputy Prime Minister for his answer and feel assured that the service is not demoralised. I beg leave to withdraw the amendment. Amendment, by leave, withdrawn.”
“Sir, I beg to move, That the sum to be allocated for Head V of the Main Estimates be reduced by $10 in respect of Code VD 1500. Sir, there are many reasons for the success of Singapore as it stands today. The contribution of the Singapore civil service is an area which should not be underestimated. We are indeed very fortunate to have an efficient and committed civil service. Everything should be done to keep it this way. Young graduates join the civil service for many reasons. But one main reason, I believe, is security of tenure that the civil service offers as compared with the private sector. Sir, I am informed that, recently, about 30 to 40 senior civil servants have been told, in one way or another, about changes in their career in the Administrative Service. This, I am also told, involved personnel from the middle level as well as fairly senior level. Apparently, this exercise has caused some unhappiness and uncertainty. So I would like to know the reasons for these swift changes and also if there are any long term implications as a result of these changes.”
“If we want to be a world-class financial centre, I do not think we should be content with a selection of hand-me-down sections borrowed from various countries. ADJOURNMENT OF DEBATE Resolved, That the debate be now adjourned. - [Mr Wong Kan Seng].”
“So if you want to increase your stake in a company in which you have a non-executive director, do not ask to speak to him, do not see him, do not have any input from him, do the investment blind. That is what section 103 of the Securities Industry Act forces directors to do. There are whole significant areas which are free from legal guidance, the whole area of nominee directors, for example. What are nominee directors for? Surely, to represent the interest of the companies that appoint them. But in 1965, a Singapore judge said that for a nominee director to report back to his board certain information that he gets would be disloyal. We have problems with determining who owes to whom the primary duty of loyalty. Is it to the company who pays you, or the company on whose board you sit? All these things require some guidance. Rather than detain Members of this House much longer by carrying on this catalogue as I could go on for hours - you can ask my students that - I am not saying that the Companies Act is unworkable. I am not saying that the law is unworkable. What I am asking for is that we should stop for a moment and just stop adding sections without thinking about what we are doing to the rest of the law. We have not set out to look at the Companies Act and see how it inter- relates with other pieces of legislation, like the Securities Industry Act, the Futures Trading Act and with things like the listing rules of the Stock Exchange. The tendency has always been to add rules rather than to consolidate and to rationalise. May I suggest to the Minister that perhaps he might at some time consider reviewing this whole area of corporate law to ensure that the legal infrastructure we have is as excellent as the commercial and financial infrastructure that we have?”
“How many of these companies have actually put these car loan schemes to the General Meeting? I venture to suggest not that many. And if you go through the list of listed companies, you will find quite a number do not have the approval and quite a number of these nominee directors actually are guilty of breaches of the law. There are many cases of inappropriate criminalisation. Do hon. Members know what their spouses are investing in on the stock market? Well, if you are a director of a company, you better find out because if your spouse has an interest in the shares of your company, you are deemed to have an interest, you are supposed to make disclosure within two days. Otherwise, it is a criminal offence. How many of the hon. Members of this House have changed their address in the last few years? Did you bother to inform your company within two days? That is what the Companies Act says, two days. Otherwise, it is an offence. So we have cases of inappropriate criminalisation. Things that may be small technical breaches but for which you have a fine, a jail sentence, possibly disqualification from directorship. There are sections in force that push businessmen to do things that are commercially illogical. Supposing, for example, Company A has an investment in Company B. They have a non-executive director on the board of Company B. They want to increase their stake in Company B. What is the logical thing to do? Surely, you would talk to your representative and find out whether it is a good idea. If you try that and your non-executive director has got price-sensitive information which is not generally known, Company A and its board of directors are guilty of insider trading.”
“For example, section 156 of the Companies Act which requires directors to disclose their interest in contracts to the board as soon as possible after they know of this interest. You take the director of a company that runs a supermarket. Technically, every time he goes into the supermarket and buys groceries, he is making a contract with the company. He should in fact then go back to his board tomorrow and say, "I have bought $50 worth of groceries." There is no exception for transactions in the ordinary course of business. Everything is criminalised. It is not just a civil matter. It is a criminal matter. You could be prosecuted; you could go to jail. You have to make this disclosure even though all the other directors know of your interest. In the UK and Australia, these cases have come to the judges and the judges have said, even though the section does not say anything, if everybody else knows about this, no disclosure is required. And this of course is a commonsense approach. But this commonsense principle is not in the section, and that is the problem. Another section is section 163 of the Companies Act. This criminalises the taking of loans from the company by a director of a related company. Take a very common situation. Many listed companies have got dozens of subsidiaries. Their officers, officers of a holding company, are nominee directors on the boards of the subsidiaries. Many of these listed companies have car loan schemes. So the officers of the holding company take a loan. They do not realise that if they are directors of the subsidiary and they take a loan from the holding company, technically, they commit an offence, for which they can go to jail, for which they can be fined, unless the loan scheme is approved by the General Meeting.”
“You look, for example, at section 160A of the Companies Act. This requires a resolution of the company to approve certain substantial property transactions between a company and its directors, between a company and persons who are connected to the directors. So, for example, if you have got a non-executive director of a company that deals with luxury cars, if this non-executive director's wife wants to buy a car from the company, technically, you should get a resolution of the General Meeting. You call an Extraordinary General Meeting (EOGM) and you get a resolution approving this. But if the Chief Executive Officer, who is not a director, wants to buy a car, there is no requirement for a General Meeting resolution, when the Chief Executive Officer is in a far better situation to influence the pricing than your non-executive director. This is an anomaly that arises because that distinction is not made. In the Malaysian equivalent of this section, there is an exception for transactions in the ordinary course of business. This suggestion had been made before by various people, including myself, to parliamentary draughtsmen but has never been accepted because it is said - this is hearsay from the parliamentary draughtsmen who told me some years ago - that MAS will not accept something like that. They would rather everything goes to the General Meeting. In practice, what happens? People ignore this, nothing happens to them. But if somebody wanted to make an issue of it, they could make an issue of it, because that is what the law says. We have sections that are the legal equivalents of a drift-net. They stretch out for miles into the ocean; they catch everything in sight, the good and the bad, the innocent and the guilty, and then the prosecutor decides who to prosecute.”
“But that is very little compensation to those people who are prosecuted, because one has to remember in Singapore that being prosecuted is a no-win situation. Even if at the end of the day you are acquitted with no stain on your character, you still have to pay your lawyer, and that is going to be very expensive. So it is no consolation to you that you will go down in the law history books as a case that establishes a point of law when you have to pay for this privilege. And, therefore, we sometimes find that giving advice to clients who have a risk-averse mentality, they say, "Okay, right. Since you cannot tell me for sure this is okay, I would rather not do it and get into trouble in Singapore with all the attendant problems." One of the problems of the Companies Act is that it is drafted on the basis of a premise that is no longer true. And the premise is that the board of directors will actually run the company. In small companies, this may be true. But the larger the company gets, the less likely it is that your board is involved in day-to-day running. And by the time you get to the size of a listed company, the chances are that your directors really have very little input, especially non-executive directors. They have very little input into the management of the company and they are, in a sense, at the mercy of management who feed them information. The board meets once a month, twice a month perhaps, but the day-to-day operations of the company are run by employees. Unfortunately, the Companies Act does not recognise this simple commercial fact of life. While the original Companies Act was drafted way back in the 1860s, non-executive directors were not thought of. But they have now become a fixture of corporate life. This leads to all kinds of anomalies.”
“It has grown by nearly 50% in terms of sections; in terms of weight, it is probably the largest statute that we have on the book. But in all that time, no one has really sat down and thought about rationalising the many sections. We have borrowed freely from other countries - from the United Kingdom, from Australia, from Canada, from Malaysia - and all these things have been stitched together in a patchwork quilt. They do not really form a coherent code. My concern is particularly with the provisions that govern directors. In Singapore, we have anticipated some of the problems of corporate governance raised in other jurisdictions. For example, in our Companies Act, it is compulsory for listed companies to have audit committees, something that the UK still does not require by legislation. Part of the scheme of improved corporate governance revolves around the necessity for having non-executive directors. In listed companies, audit committees must consist of independent non-executive directors. The idea is that the non-executive directors should check on management to make sure that management is not abusing their power. The trouble is, as the law presently stands, if a person wants to be a non-executive director, he knows the extent of the liability, he would probably think twice and thrice about doing it. I often conduct seminars for the profession and for laymen about directors' duties and the reaction I usually get at the end of the seminar is: how can I quit my job as a director? Because all the liabilities seem frightening when you look at them. To reassure people, I tell them the chance of being prosecuted is probably less than the chance of being struck by lightning on a golf course.”
“Let me take the second point first. I have previously spoken in this House about the inadequacy of penalties under the Securities Industry Act and the Futures Trading Act. The same holds true, I think, of the Companies Act generally. For something as serious as market manipulation, for example, the maximum penalty is $50,000 fine for an individual and $100,000 fine for a company. Will these penalties deter potential crooks? Will Members in this House consider justice to have been done if the crook who makes $20 million gets off with the maximum $50,000 fine, and can spend the rest of his loot with impunity? May I say that penalties like these are totally inadequate as a deterrent. It is like being flogged with a wet lettuce. The Minister said previously in this House that his Ministry would look into the possibility of confiscating the proceeds of white collar crimes. May I suggest further that some thought be given to expanding the court's power to make compensation orders, as is presently provided in section 401 of the Criminal Procedure Code. Greater use of this kind of compensation order will not only give the courts the ability to deprive a wrongdoer of the fruits of his crime but will also take the strain off the legal system because it will avoid having to commence duplicate civil proceedings later on to recover compensation. Section 401 of the Criminal Procedure Code is the section that has, if my memory serves me correctly, nearly a 100-year pedigree and was not really designed for white collar crimes. But it is one of the options that I think we should be seriously looking at. Reverting to my first point, since the Companies Act was enacted in 1967, it has been amended nearly a dozen times.”
“The knee-jerk reaction to something like Barings is of course to tighten up everything indiscriminately. But I think that would be self-defeating. You cannot complain on one hand that we lack entrepreneurs and then, on the other hand, try to control every aspect of commercial life. Let me state my position clearly. I am not against strict regulation to ensure that the market is clean. What I am against is mindless regulation that seeks to control everything, where regulators poke into every nook and cranny and try to control everyone in everything that they do. To keep the market clean, two things are necessary. Firstly, you have to have clear laws, consistently enforced, so that people know exactly what they can do and what they cannot do. For a businessman, it is not of any use to go to a lawyer and the lawyer tells him, "Well, you know, maybe you can do this because the laws are vague. If you do this, perhaps you will be prosecuted; perhaps you will not be." That is no use to any businessman. Secondly, you need adequate penalties, so that a person who does break the law, when he is caught, sentenced, he should be deprived of his wrongful gains. It is no point having expended all the efforts in bringing a person to book if the penalties are totally inadequate and the person goes out of court laughing and grinning from ear to ear because he has just been slapped on the wrist. Unfortunately, in many aspects, the system that we have in place is the precise opposite. Very often, we have vague laws and we make it hard for a businessman or lawyer to know for certain whether a particular course of action is legal. And sometimes, very often, I would say, we have penalties which were set maybe 10, 15, 20 years ago which today are inadequate.”
“All this is possible because of the healthy state of our finances and the good economic growth that we are enjoying. My only regret is that the less advantaged in our society could have been given a little bit more, especially when we have done that well. $30 million given in terms of relief to 1-, 2-, 3-, 4- and 5-roomers is, I think, slightly on the low side. The Minister could have been a little bit more generous to the 1-, 2- and 3-roomers. The loss of revenue on the 10% tax rebate amounts to $234 million, but the relief given to the 1-, 2-, 3-, 4- and 5-roomers amounts to $30 million. The question one asks is whether this is equitable. Sir, my last observation of this Budget Statement refers to the question of the management of our surplus. Many have asked: how are our surpluses being managed? How are our investments performing? The management of our surplus should also be transparent. There should be some form of disclosure on the performance of our reserves. Sir, I support the financial statement. Assoc. Prof. Walter Woon (Nominated Member): Mr Deputy Speaker, Sir, thank you for letting me speak. I had not actually expected to speak today. So I must apologise if my speech sounds rather extemporaneous. I had to re-create from memory what I meant to say. I support the motion at hand. But I would like to focus attention on one particular aspect, and that is, the question of corporate governance in Singapore. Let me, before I go on, declare my interest as a practising lawyer and as a director of a listed company. We have seen in the Barings case that the fingers are now pointing to lack of controls within the bank itself. And the question that has been on everyone's mind, both here and abroad, is: can it happen in Singapore?”
“For example, if one wants to become a remisier, even if he is a professional, he has to take various tests before he is given a licence to operate as a remisier in the stock market. I think this is good and it should be continued. My question is whether the same stringent conditions are applicable to foreigners working in our financial sector. It seems it is easy for a foreigner settlements clerk to head a futures company in Singapore. It is now revealed that his application for a licence in the United Kingdom was not allowed. My question is: are the rules the same for foreigners and Singaporeans? If not, Sir, this area needs tightening up. Sir, the tax breaks given in the Budget benefit large corporations, both local and foreign. This should be encouraged. But at the same time, additional help should be forthcoming for our SMEs. I would like the Finance Minister to consider a lower corporate tax level for SMEs, as one of the many additional measures to help our local businessmen. If this present trend continues, local companies will be phased out in a matter of time and we will end up as a nation of shopkeepers and book-keepers. Surely we do not want this to happen. I am aware that the Government is assisting the SMEs. But I am suggesting that more should be done. Maybe we should set up a separate agency solely to concentrate on the problems and needs of SMEs. Sir, SMEs here are to stay and the Government should do all it can to help them grow. Maybe the Finance Minister can consider these proposals. Next, I welcome the tax rebates for the individual - an across-the-board 10% rebate, the $300 share ownership top-up scheme and a further $200 paid into the CPF account of every Singaporean over 21 years and above. The Finance Minister is indeed very generous.”
“Mr Deputy Speaker, Sir, like other MPs before me, I would like to congratulate the Finance Minister, Dr Richard Hu, for giving us a sound budget for the financial year 1995/96. Yet, Sir, some Singaporeans were not that much enthused by the Budget Statement. Some went on to say that it was a non-event. Why was this so? Frankly, I believe that high expectations were raised unnecessarily by the media. The event was advertised in the same manner as programmes like "Masters of the Sea" or "Under One Roof". Maybe in order to get a higher television rating. Night after night, there were wish lists ranging from reduction of personal income tax to corporate tax. Everybody interviewed wanted something. So when these wishes did not feature in Dr Hu's statement, there was disappointment. Sir, I begin to wonder whether it is necessary to build up such high expectations on an event like the Budget Statement. Mr Deputy Speaker, Sir, on the Budget Statement itself, I have a few comments to make. Sir, to stimulate fund management and other areas in the financial sector, further incentives and tax breaks were given. This is good and it should be welcomed. While it is necessary to stimulate the growth of new areas with tax breaks, I think the retail sector could have done with some help. Everyone is aware of the tough times facing the retail sector. Yet apart from the reduction in property tax, this sector was left to fend for itself. Maybe the Singapore Tourist Promotion Board should have made a stronger case to the Finance Minister on behalf of the retail trade. While on the subject of financial sector, I think our authorities have a good system of vetting Singaporeans getting involved in the financial sector.”
“It can adopt, I believe, a more conciliatory approach in dealing with actual problems of the family. However, Sir, this Bill seeks to determine and secure the legal rights of the aged parent. It does nothing to protect the family as a basic unit of society. In my opinion, it is best that we try to find a total solution to the problems involving the family. At best, as I said earlier, this Bill is only a piecemeal effort. Sir, I am unable to support the Bill in its present form.”
“This will be a problem, together with a whole host of problems relating to the family. If this Bill is passed by this House, it is my view, Sir, that it is a piecemeal effort to solve problems relating to the family and the aged. This Government is not known for piecemeal efforts. Whether this particular Bill is moved by a Backbencher, or the Government, it will become a law if passed by this House. Sir, legislation is needed, and I do not disagree with the principle of this Bill. But I would strongly urge that the Government reviews all existing policies and legislation relating to the family and the aged. The time is now ripe for such a detailed and in-depth review. Many calls have been made to the Government to set up a Family Court to specifically deal with family affairs. These include parent/child relationship, husband/wife relationship, juvenile delinquency, wife battering, husband battering, elderly abuse and others. The National Committee on the Family and the Aged strongly recommended that a family court should be set up to deal with family problems and disputes. Sir, current trends in family cases handled by our courts are indeed disturbing. The rise in the number of divorces, domestic violence, child abuse and maintenance summmons should be a cause for concern for all of us. The causes for the increase in these matters are complex. It could be due to the stress of modern living, western influence on attitudes towards marriage or a general decline in Asian values. Sir, I believe that our current judicial system is not geared to slow down or reverse this trend. I believe the setting up of a Family Court in the near future can take the concerns of Assoc. Prof. Walter Woon's Bill. A family court approach will differ greatly from the current judicial system.”
“Sir, this Bill has generated much discussion outside this House. Discussion has not been confined to the intellectuals and the academia, but also took place at most levels of society. In my own constituency, Sir, it was discussed at some length by the grassroots leaders and residents. While some felt that there was a need for this Bill, the majority felt that it was not necessary to have this piece of legislation. Let me summarise their main arguments. Firstly, Sir, they felt it was very un-Asian for a parent to take his son or daughter to court and to sue for maintenance. This then reduces their relationship to a purely financial level. I might say, Sir, one grassroots leader went to the extent of telling me that if his children failed to look after him, then the fault is entirely his as he had not imbibed the right values to them. In this case, it is better to hang himself than to sue his child for maintenance. Sir, the second argument against the Bill is that for the moment it is not a serious problem. Our old age homes, as the Acting Minister for Community Development will bear out, are not overflowing with discarded parents. There are cases of parents being neglected, but the numbers do not warrant any legislation. Thirdly, Sir, as what Dr Tan Cheng Bock has said earlier, it was felt by younger grassroots leaders that the introduction of this Bill shows a lack of faith in the younger generation Singaporeans. It is assumed that the younger generation will act in an irresponsible manner, as far as looking after their aged parents is concerned. I agree with my grassroots leaders that we do not have an immediate problem on our hands and as such we can do without this Bill. However, to be realistic, it may not be the case in the longer term.”
“MUIS sought their inputs on how the quota system can be implemented. So far, three suggestions have been received. These are, first, to allot places on first-come-first-served basis; second, to reserve 70% of places to those performing the haj for the first time; third, to give priority to those who have never done the pilgrimage before or those whose last pilgrimage was three years ago. The simplest to implement is the first-come-first-served system. Malaysia has adopted this system, which is considered fair. MUIS is studying all these suggestions and any others that Members may want to put forward, and will announce the system to be adopted soon. I have discussed the quota system with Saudi Arabia's Minister for Haj when I was there in January, and I have sought his approval for 4,000 pilgrims from Singapore to perform the pilgrimage this year, as they have already registered with MUIS. I have followed up this request to the Minister in writing and am awaiting his reply.”
“In determining who ought to be allowed to make the journey to the Holy Land, I hope MUIS would give priority to those who are doing it for the first time. The next priority should be according to age, subject to the pilgrim being in good health. Only then should we allow the opportunity to those who are going for the second time or more. In formulating the criteria for those to be allowed to make the pilgrimage, MUIS needs to hold discussions with the GSAs and local Muslim organisations. After the criteria have been determined, MUIS must as soon as possible explain them to the Muslim public so that intending pilgrims will be prepared well in advance. Basically, the criteria must be fair to all and should not discriminate between those who can and those who cannot afford it. I hope the Minister could comment on these points. Mr Abdullah Tarmugi( In Malay): Sir, in the effort to improve mosque administration, MUIS has conducted several courses, workshops and talks meant to equip the mosque management committees with the knowledge and skills needed for the day-to-day running of the mosques. MUIS also has plans to further enhance these skills through a number of programmes to be carried out this year. Generally, Sir, mosques are administered by volunteers. In order to implement their programmes and activities more effectively, mosque management committees need full-time staff. For the moment, only those with stable financial resources are able to recruit permanent staff to run their programmes. But in time, we hope more mosques will have the financial resources to do so. In regard to the haj pilgrimage, on 9th February this year, MUIS conducted a meeting with representatives of 20 tour agencies to brief them on the new quota system.”
“Sir, I thank the Minister for his very detailed reply. However, I would urge his Ministry to try to help produce more Dr Tan Eng Liangs and Tan Thuan Hengs. On that note, I withdraw the amendment. Amendment, by leave, withdrawn. Encik Ibrahim bin Othman( In Malay): Sir, I beg to move, That the sum to be allocated for Head J of the Main Estimates be reduced by $10 in respect of Code JJ 3100. Sir, MUIS has been around for more than 25 years now. Thanks to its diligent efforts and the community's support, MUIS has succeeded in many areas, particularly the collection and distribution of zakat, development of wakaf property, mosque building, pilgrimage administration, dakwah activities, religious schools and fatwa. Mosque building has been its most visible achievement. And in managing the mosques that have been built, we must see that they become an institution of excellence that will further the development of the community in an effective way. There are many challenges we have to face in this regard. Thus far, we have been relying on part-timers to administer our mosques. May I suggest that mosques be run like a corporate body, with full-time staff engaged to handle matters like administration, finance, education and dakwah. In this way, we can attract qualified people who can provide better, stronger and more informed leadership full time. I would like to hear the Minister's views on this. I would like now to move on to the subject of the quota system for haj pilgrimage, expected to be implemented in 1995. I understand 3,000 places will be allowed for our pilgrims, as against the annual average of 4,000 people who have been making the pilgrimage in recent years.”
“Sir, I beg to move, That the sum to be allocated for Head J of the Main Estimates be reduced by $10 in respect of Code JI 3100. Sir, the Sports Excellence 2000 Programme was announced a few months ago. SPEX 2000, as it is called, is most timely. This programme signals a significant switch in Government's policy from a "Sports for All" emphasis to "Sports Excellence". This indeed is most desirable. And I would like to refer the Minister to an article written by Mr Sia Cheong Yew, which appeared in the Straits Times of 16th March this year. Sir, the Government must be congratulated for leading the way and I hope everyone will rally round it and give it its widest support. Specifically, Sir, I would like to ask the Minister what is the response of the National Sports Associations to the announced SPEX 2000. What feedback and comments have been received from the National Sports Associations? Also, is the selection of core and merit sports final? Can other sports move into the core and merit areas? Sir, I also commend to the Minister the suggestion made by Mr Sia in the same article to set up scholarship similar to the Rhode scholarship for high-flier sports scholars. Sir, finally, the Ministry of Defence, I believe, has a very major role to play in the development of SPEX 2000. Our best sportsmen and athletes spend their peak performance period in the army doing national service. Some mechanism must be found to help the athletes to maintain their form and interest. If not, they just wither away. I would like to ask the Minister for Community Development whether any schemes have been worked out with the Ministry of Defence in this area.”
“The Ministry of Community Development may be more caring and compassionate but my question is whether the Minister will be able to persuade his colleague, the Finance Minister, to be more compassionate. Therefore, Sir, it would be useful to hear from the Minister how he views the impact of GST on his own Ministry's assistance programmes as well as the work of welfare and voluntary organisations. More importantly, what steps will be taken by the Ministry to alleviate the problems of those affected?”
“Sir, I believe that with the introduction of GST, the various assistance programmes implemented by the Ministry of Community Development will be affected. These programmes of the Ministry of Community Development are designed to help the disadvantaged in our society. The imposition of GST will certainly cause further hardship to the beneficiaries. Sir, I would like to ask the Minister for Community Development on what steps have been taken to reduce the burden of GST on the less well-off in our society - be it public assistance programme or the rent and utilities assistance programme. I am sure any assurance from the Minister will give tremendous relief to the recipients of these programmes. Sir, apart from the Ministry's own programme, I believe problems will be faced by welfare and voluntary organisations as a result of the imposition of GST. GST will have a negative impact in these areas. GST will not only raise the cost of providing voluntary welfare services but also lead to reduction of donations, both in kind and cash, from the public institutions and companies. GST will in fact serve to diminish the efforts by Government to increase the voluntary sector's participation in the provision of welfare services to the disadvantaged in Singapore. Welfare and voluntary organisations are concerned that many of their fund-raising for welfare programmes will now become even more difficult. I am told goods donated in kind also will not escape GST, although it might be a token one. Sir, I would like to make it clear that I have no quarrels with GST per se. I am concerned as to whether the Ministry of Community Development is fully aware of the problems caused for welfare and other voluntary organisations.”
“I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $99,201,100 for Head O ordered to stand part of the Main Estimates. The sum of $51,359,300 for Head O ordered to stand part of the Development Estimates. Head N -”