S Iswaran
Singapore
“The Maritime and Port Authority of Singapore (MPA) has incorporated the requirements of the International Maritime Organization (IMO) 2020 regulation in its Prevention of Pollution of the Sea (Air) Regulations 2022. The Regulations are applicable to Singapore-registered ships and all other ships while they are in Singapore waters.”
“The Maritime and Port Authority of Singapore (MPA) plans to progressively roll out the charging infrastructure for electric harbour craft operations in the Port of Singapore from 2025.”
“Since 2018, the Land Transport Authority (LTA) has imposed minimum bicycle parking provisions covering different types of developments. The requirements are determined by multiple factors, including the developments’ use, location and gross floor area (GFA).”
“I had addressed similar Parliamentary Questions by Mr Gerald Giam on 29 November 2022 and 10 January 2023, as well as in my Ministerial Statement on 8 May 2023. The Member can refer to these past answers and statement as there has been no material change in the allocation of Certificates of Entitlement.”
“To encourage the uptake of electric cars, the Government has rolled out the Electric Vehicle Early Adoption Incentive and enhanced Vehicular Emissions Scheme. When taken together, it provides up to $45,000 off the Additional Registration Fee of an electric car upon registration.”
“The Land Transport Authority studies all potential changes to the Certificate of Entitlement (COE) system carefully, including conducting sensitivity analysis where appropriate.”
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“Thank you, Mr Deputy Speaker, Sir. First of all, let me thank all Members who have risen and spoken in support of the Private Education Bill. I think it has been variously described as "welcome", "timely" and I think some said that "it is long overdue". But whatever the adjective, I think there is a general consensus that this Bill will contribute to preserving Singapore's education brand name and upholding the position of Singapore as a global education hub. And, indeed, the Ministry of Education shares many of the concerns and, certainly, view of the Members. Sir, the Members have raised quite an exhaustive set of issues. Some have spoken about the need for maintaining standards and quality. And yet we have also expressed concerns about being overly dirigistic in the way we regulate the industry. There has been talk about the need to maintain and provide for adequate student protection. But we also expressed concerns about excessive costs. And I think these are important points because they illustrate the inherent tensions in the industry and the challenges that we face in this new endeavour that we are embarking on. So I would say that this is precisely why the Ministry of Education needs all parties involved on-hand to help because it is not just about MOE or the Council for Private Education embarking on an effort to implement a piece of legislation. It is actually a collective effort where the industry players have to rise to the challenge, the students and consumers have to play their part and acknowledge that they have a role to play and being sophisticated, knowledgeable consumers, and, in general, the public as well as the Members of this House in ensuring that we are vigilant and we are alive to possible problems that we might face.”
“We need the support and collective ownership of all stakeholders, including the private education providers and the students, to make the learning experience in Singapore an attractive and enriching one. PEIs must realise the need to constantly upgrade themselves to meet the challenges of an increasingly competitive international education landscape and the rising expectations of students. Students themselves must be more discerning and deliberate in their choice of education pathways and institutions. Singapore has forged a reputation for excellence in its public education system. Students from all over the world are attracted to Singapore on the strength of our mainstream schools and world-class tertiary institutions. MOE will continue to invest in the public education sector and uphold these standards. The private education sector will need to level up its standards and be developed further to compete on academic rigour and credibility, rather than on price or expediency. Over time, as the new measures take effect and the students gravitate towards higher quality institutions, the overall standards in the industry will improve. The Private Education Bill is timely in providing for the necessary legislative framework to guide the private education sector in that direction. Sir, I beg to move. Question proposed. 3.30 pm”
“In this period, my Ministry also conducted industry briefings and focus group discussions with PEIs to facilitate their understanding of the new regime as well as to obtain feedback. This was followed by a second public consultation exercise on the actual draft of the Private Education Bill in July this year. Overall, there is broad-based support for the Government’s move towards tighter regulation of the private education sector. We have also received unequivocal support from private education providers who welcome the move to preserve and enhance the industry’s integrity and reputation. My Ministry has received useful comments and suggestions from the two public consultation exercises and, consequently, has made a number of modifications to the new regulatory framework and Bill. Even as we recognise the public support for enhancing the regulatory regime, we are mindful that the transition to a new system with higher standards and expectations will have varying effects on industry players and students. The public should expect and be prepared for some changes in the industry, including closures and consolidation. Our ultimate goal is a strong private education industry that can deliver quality education to students. Mr Speaker, Sir, I would like to conclude by emphasising that a strong regulatory framework, while necessary, is not a panacea. Regulatory systems in all countries aim to assure consumers of certain quality standards. While risk can be mitigated, it can never be completely eliminated. The new system cannot by itself guarantee student satisfaction, avert school closures or prevent regulatory infringements.”
“Developing the private education sector In addition to its regulatory role, the CPE will also facilitate the development of the industry. The immediate focus of the CPE in this regard will be to work with industry partners to assist PEIs to prepare for the higher standards of the Enhanced Registration Framework and EduTrust Certification Scheme through workshops and forums. Partnering other Government agencies, the CPE will also help private education institutions enhance their system and manpower capabilities through capability development initiatives. The CPE will also look into strengthening the industry association so that it can serve as a key partner in mobilising support amongst industry players. With the levelling up of the private education sector’s standards over the next few years, the CPE aims to work with industry leaders and associations to create a stronger culture of accountability and responsibility among the PEIs. While legislation will still be employed where necessary, in the long run, this culture of accountability together with a higher level of consumer sophistication will be the foundation of the industry’s development and growth. Industry and public consultation Sir, in formulating this Bill, the Ministry of Education has conducted two public consultation exercises to seek feedback on the new regulatory framework from the public and key stakeholders of the sector so as to further refine the regulatory requirements. The first public consultation exercise, conducted over a period of eight weeks from March to May this year, focused on the key principles and requirements of the proposed Enhanced Registration Framework and the EduTrust certification scheme.”
“Given the higher standards under the EduTrust scheme, making it mandatory will lead to PEIs incurring significant additional costs to attain such certification. Inevitably, these costs will be passed on to the students even if the market may not require such additional measures. For example, there are currently several hundred small non-CaseTrust-certified PEIs, offering short skills-based courses of less than six months catering to specific industry needs. There are several approved training providers under WDA-registered programmes that fall under this category. Instead, a voluntary EduTrust scheme allows better private education institutions a mechanism to differentiate themselves based on quality if they so desire. The market will recognise the EduTrust mark as a signal of confidence and quality. As such, it is in the interest of genuine education service providers to be EduTrust-certified so as to distinguish themselves as the better players in the sector. Stepping up consumer education In tandem with the implementation of the enhanced regulatory framework which I have outlined, the CPE will step up efforts to cultivate consumer sophistication through the provision of accessible and transparent information on the private education sector for all students. The setting up of a Student Services Centre will be key to this effort. The Centre will convey student advisory information and facilitate student support and protection services. The Centre will be the first stop to handle complaints from students. For disputes that require professional services in mediation and arbitration, the aggrieved students and PEIs will be directed by the CPE to resolve their disputes in a formal and responsible manner through CPE-appointed dispute resolution centres.”
“Our aim in this transition is to give PEIs a reasonable period to upgrade and meet the required standards. PEIs who do not meet standards despite this grace period risk non-renewal of registration. Notwithstanding this grace period, the CPE will not hesitate to act against any errant PEIs. This is necessary to maintain high standards for our private education sector. Voluntary EduTrust Certification Scheme Sir, I will now move on to the EduTrust Certification Scheme, to be established under clause 49 of the Bill. The EduTrust scheme is a quality mark. It differs from CaseTrust in two important ways. First, it sets higher standards; and second, its coverage is wider. For example: (a) EduTrust imposes additional requirements on PEIs with respect to their academic, financial and administration processes; student welfare matters; and partnerships with external recruitment agents. (b) In the area of student welfare, PEIs will be required to have clear policy on fees and refunds, effective complaint resolution procedures, and appropriate student counselling and support services. While CaseTrust mandates fee protection for only international students, the EduTrust scheme mandates fee protection for both international and local students. (c) PEIs will also need to have qualified academic supervisors and teachers, and well-defined structures for programme development, assessment, progression and performance review. Therefore, not all PEIs who currently have CaseTrust certification will obtain EduTrust certification. However, the CPE will provide a grace period for such PEIs to upgrade themselves, and provide information to prospective students in the meantime.”
“Part V of the Bill provides for the establishment of the Appeals Board by MOE. Transitional arrangements Sir, this Bill will certainly raise the standards of governance and accountability of PEIs, and the protection they accord to students will correspondingly rise. However, it is in the interest of all stakeholders to ensure a smooth transition from the prevailing regulatory framework. To minimise disruption to students as well as to the operators in the transition to the new regime, clause 74 of the Bill provides for the CPE to make the necessary transitional arrangements for PEIs crossing over to the new mandatory enhanced registration framework. Upon the commencement of the Private Education Act, private education institutions which are currently registered under the Education Act will be accorded "deemed registered" status for a period of 18 months. These PEIs will have to attain registration in compliance with the enhanced criteria of the new regulatory regime, if they wish to continue to operate beyond this 18-month window period. There is another segment of PEIs which are currently not required to register under the Education Act but will fall under the regulatory scope of the new Bill. These are private schools set up by registered societies and privately-funded vocational schools offering full-time education leading to various forms of certification. Upon the commencement of the new regulatory regime, clause 74 requires these private education institutions to come forward within two months to submit their applications for registration, if they wish to be able to continue to operate until either they attain their registration under Part III, or their application is rejected or withdrawn.”
“The validity period of a PEI’s registration status may vary based on how well the PEI measures up to the registration criteria. This will incentivise PEIs to improve their standards in order to attain a longer period of registration. In addition, the CPE has the power to suspend or cancel the registration status of PEIs under clause 38 of the Bill. Enforcement, offences and penalties Sir, even as we place the onus on the private education institutions and their managers under the new regulatory regime to internalise their obligations as responsible education service providers, the Council for Private Education will be stepping up its efforts to monitor the PEIs and, where necessary, undertake enforcement action. In this regard, provisions have been made under clauses 57 and 58 of the Bill for CPE inspectors to have the necessary investigative and enforcement powers to conduct regular audit checks and to investigate any complaints against private education institutions. Clauses 48 and 61 of the Bill also provide for a full range of actions and penalties to allow the CPE to calibrate its enforcement actions. Some contraventions by the PEIs would constitute a criminal offence with deterrent penalties. For example, a PEI or manager who intentionally makes false statements to the CPE; obstructs or impedes the CPE’s inspection or investigation work; or refuses to comply with the remedial action directed by the CPE, shall be liable for a conviction with a fine or jail term or both. The Bill also ensures that there is an effective redress mechanism for parties aggrieved by the regulatory decisions or directions of the Council. Such aggrieved parties can appeal to an Appeals Board which will be appointed by the Minister and administered independent of the CPE.”
“To ensure that PEIs do not misrepresent themselves or the courses that they offer, clauses 37 and 39 of the Bill restrict any PEI from using names and terms which are false or misleading, while clause 46 of the Bill prohibits any person or PEI from publishing false or misleading statements. Clauses 40 and 47 of the Bill also empower the CPE to direct the PEIs to take remedial action. Under clause 64 of the Bill, the CPE may prescribe dispute resolution schemes and make regulations to require registered PEIs to participate in such schemes. In doing so, the CPE aims to provide aggrieved students with ready access to cost-efficient and expeditious means of seeking redress in resolving disputes with PEIs. Disclosure of key information by PEIs Mr Speaker, Sir, the Enhanced Registration Framework will also compel the private education institutions to disclose key information on their premises, courses and teachers to enable students to make informed choices. The CPE will have the authority under clause 63 of the Bill to publish relevant information on the institutions on the CPE’s website. This includes the list of PEIs which have been de-registered or have had their EduTrust certifications withdrawn owing to the contravention of terms and conditions that were imposed. In addition, clause 62 of the Bill empowers the CPE to obtain information from the PEIs when the need arises. System of renewable registration for PEIs Under the current Education Act, registration for private education institutions is a one-off exercise. Under the new regulatory regime, PEIs will need to be approved by the Council before they can be registered to operate. Registration status will have a specified validity period to be determined by the CPE as provided for under clause 36 of the Bill.”
“Clause 43(12) makes it an offence for PEIs or any persons to advertise courses not permitted by the CPE, or solicit or receive any fee from any student in respect of such courses. PEIs found to be committing any of these offences would be liable to be de-registered. For the purposes of clause 43, regulations will be made for the CPE to also tighten the requirements for any PEIs applying to offer external degree programmes (EDPs). For example, CPE will examine the track record and standing of the foreign institutions issuing the degrees. In addition, these foreign universities will have to commit that the degree programmes offered at the local PEIs are recognised by their home country authorities, are subject to the same academic approval and assurance processes as the programmes offered at their home campuses, and that the graduates here receive equivalent recognition, treatment and privileges as those enrolled in their home campuses. With these more stringent requirements coming into effect, some PEIs may have to cease offering certain EDPs which do not meet the new criteria. PEIs will be required to provide the CPE with clear plans to address the needs of students currently enrolled in such EDPs, including the possibility of switching to an alternative programme. Enhanced student protection measures The Enhanced Registration Framework will also provide for stronger student protection measures. Clause 60 of the Bill empowers the CPE to direct PEIs to issue refund of the fees paid by students should the PEIs fail to deliver the courses which the students have enrolled in. The CPE may also make regulations to stipulate the maximum amount of fees a PEI may collect upfront from the students so as to mitigate the financial impact of sudden school closures.”
“A key enhancement under the Bill is that the line of accountability for the conduct and practices of PEIs is made clearer in the new regulatory regime. In this regard, Part I of the Bill defines a manager of a PEI as any director, partner or member of its committee of management, and includes any person who has management of the PEI. In line with good corporate governance, this provision in the Bill ensures that accountability for any misconduct by the PEI can be traced back to the actual persons who exert management influence over the PEI. The managers are responsible for a set of prescribed responsibilities, as spelt out in clause 41 of the Bill. These include the keeping of proper records; providing for students affected by the PEI’s closure to complete their enrolled course or a similar one in another PEI; and furnishing information requested by the CPE within the stipulated duration. The failure of a manager to fulfil his responsibilities without any justifiable reason will constitute a criminal offence. The CPE will also have the power to direct any PEI to suspend or remove any of its managers if they are found to be inadequate in carrying out the responsibilities of managing the school or are unable to discharge their prescribed duties, as provided for in clause 42 of the Bill. Academic governance will also be tightened under the new regulatory regime. Clause 43 requires PEIs to seek CPE’s permission to offer courses; failure to do so will constitute a criminal offence. In processing these applications, the CPE will verify the authenticity of the qualifications offered and the standing of the institutions issuing them. Additionally, clauses 46 and 47 protect the public from false or misleading advertisements.”
“The regulatory scope of the Private Education Bill, as defined in the First Schedule, primarily covers PEIs which offer degree, diploma or full-time certification programmes at the post-secondary level, and those which offer full-time preparatory courses for entrance to our mainstream schools, or for external examinations. Such PEIs have a significant impact on the Singapore education brand and involve major investments by the students, both Singaporean and foreign, in terms of course fees and time. About 1,000 of such PEIs will be covered under the new regime. Online and virtual PEIs operating in and from Singapore and offering the types of courses mentioned above will also be required to be registered with the CPE. This is to guard against Singapore becoming a staging point for online degree mills and other similar virtual setups. Singapore-based private operators who offer accreditation services and examination certification services overseas will also come under the scope of the PE Bill. Sir, the aim of the Enhanced Registration Framework is four-fold: (a) raise corporate and academic governance standards; (b) enhance student protection measures; (c) compel disclosure of key information by PEIs; and (d) require PEIs to seek, on a regular basis, fresh approval to renew their registration. I would now like to highlight key provisions in the Bill that will enable us to achieve these objectives. Raise corporate and academic governance Clause 37 of the Bill aims to ensure that sound academic and corporate governance systems are in place for PEIs. The PEI is required to be a registered company or society. It must ensure that its teachers have the relevant qualifications and experience, and that its managers are fit and proper persons.”
“MOE’s expertise is largely in this public education domain where the mandate, goals and constraints are substantially different from those within the private education sector. Part II of the Bill, therefore, provides for the establishment of the CPE as a new statutory board, which will allow it to build up the requisite capabilities for a different operating environment in the private sector. The Council for Private Education (CPE) will comprise a Chairman and between five to 17 members to be appointed by the Minister for Education. The CPE will be supported by a pool of full-time staff to fulfil the regulatory and developmental functions. As the sectoral regulator, the CPE will have authority over matters such as registration, quality assurance certification, and investigations and enforcement action against errant PEIs. The CPE will also have the powers to develop codes of practice relating to private education matters, enter into contracts, form partnerships and companies, and charge fees in the course of its work. Beyond the regulatory role, the CPE will promote consumer awareness; provide student services; and facilitate industry development. The CPE will drive public education initiatives and enhance the channels that prospective and current students at PEIs can turn to for assistance. The CPE will collaborate with other Government agencies to develop the sector and its capabilities. Mandatory Enhanced Registration Framework Sir, Part III of the Bill provides for aspects related to the regulation of Private Education Institutions.”
“The exponential growth of the sector has resulted in a highly uneven spread of academic and governance standards amongst the private education institutions (PEIs). Some were found to have engaged in dubious or unscrupulous practices, which have adversely affected Singapore’s reputation. In the last few years, the closures of a few PEIs have also left their students stranded. It is, therefore, in the interest of all stakeholders that we tighten up standards and accountability under a new regulatory framework which will stand for quality and reliability. Sir, my Ministry will adopt a three-pronged strategy to strengthen and uplift the private education sector. First, we will put in place a more robust regulatory framework through the enactment of the Private Education Bill. Second, we will step up efforts in consumer education. Third, we will work with industry associations and PEIs to develop the private education sector so as to raise the quality of provision and student welfare over time. Given the diversity of the private education landscape, MOE cannot do this alone and we will need support from industry, consumers, the general public and, indeed, Members of this House. I will first touch on the new regulatory framework which has three key components: (a) the Council for Private Education (CPE) to be established as the sectoral regulator and developer; (b) the mandatory Enhanced Registration Framework (ERF); and (c) the voluntary EduTrust Certification Scheme. Let me now elaborate on each of these three components. Council for Private Education Hitherto, MOE’s primary mission over the last 40-odd years since our independence has been focused on delivering a world class public education system.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, allow me to first set the context for the Private Education Bill. The regulatory regime for the private education (PE) sector started with a "light-touch". This was because the industry was nascent in the 70’s and 80’s with little demand and few players. Schools were registered if they met basic requirements such as approval for usage of premises and fire safety clearance and some rudimentary checks on school management and teachers. Registration did not represent endorsement or assessment of the quality of the academic programmes. Students were reminded to do their own due diligence when enrolling in these programmes. Between 1987 and 1997, the number of private schools registered with MOE doubled from 150 to 305. Consequently, measures were taken to provide a level of quality assurance. The Ministry of Trade and Industry facilitated the establishment of quality assurance schemes which the better private schools could aim to attain. These are the CaseTrust for Education certification, administered by the Consumers Association of Singapore (CASE), and the Singapore Quality Class for Private Education Organisations (SQC-PEO), administered by SPRING Singapore. Moving forward, even these measures are no longer adequate. The private education sector now attracts a large number of local as well as international students who are drawn by the Singapore brand. The number of private schools quadrupled between 1997 and 2007, from 305 to 1,200. The number of full-time international students enrolled in the private schools also grew in tandem from 9,000 in 1997 to 37,000 in 2007. In 2008, there were about 120,000 students enrolled in these private schools of which 45,000 were from overseas.”
“For new hotels which are setting up in residential areas, the hotel will also be required to engage the community and respond to the concerns of residents. I would like to assure Members that the HLB will continue to work with all relevant bodies to mitigate social disamenities that might arise from hotel operations. Column No : 1303 FLEXI-WORK ARRANGEMENTS 9. Mdm Ho Geok Choo asked the Minister for Manpower apart from legislation, how can employers be further encouraged to adopt flexi-work arrangements in a serious and concrete way so as to encourage more people, especially women, to return to the workforce.”
“Mr Speaker, Sir, major cities around the world, such as Hong Kong, London, New York and Sydney do not regulate how hotels price their rooms. In Singapore, we have also adopted a pro-enterprise approach, by allowing hotels the flexibility to set their operating model, including their room pricing. The Hotels Licensing Board (HLB) therefore does not require hotels to obtain a special licence before they can lease rooms out on an hourly basis. Consequently, the HLB does not track the exact breakdown of hotels by pricing models. However, HLB believes that close to half of the approximately 250 hotels in Singapore that offer transit rates, ranging from hourly blocks to intra-day blocks of three or six hours, or half are there and some are outside Geylang. In general, there are hotels located in business districts or in the vicinity of airports around the world that charge transit rates to meet the needs of their guests, particularly business visitors. The HLB works closely with our enforcement agencies to closely monitor activities in the hospitality industry. Where there is evidence of illegal activities, the HLB can revoke the operating licence of offending hotels. In consultation with the Police, the HLB is also in the process of introducing additional upfront process requirements when hotels apply for their operating licences. Specifically, hotels will be required to indicate in their applications if they intend to offer transit rates, and explain their reasons for doing so. To ensure the safety of guests and curb possible illegal activities, such hotels will have to propose security and preventive measures, such as the installation of CCTVs in common areas or the deployment of security guards.”
“Mr Speaker, Sir, there is no specific target and the reason is because, at the end of the day, there are certain minimum requirements, which I had elaborated. I think this is only our second year, so we need to learn and adapt to the requirements on the ground. And many of the factors are beyond our control because the specifications are set by the FIA and also by the F1 management group, and these are contractual obligations as well. But I think it will be fair to say that all parties involved are keenly aware that where we can, we want to truncate the period of road closures and maximise the access for all concerned. Column No : 1301 HOURLY LEASING OF HOTEL ROOMS 8. Mr Christopher de Souza asked the Minister for Trade and Industry (a) whether the Ministry will consider requiring hotels to obtain a special licence before they can lease rooms out on an hourly basis; (b) what is the number of hourly-rate hotels beyond the borders of Geylang; and (c) what measures will the Ministry implement to ensure that hourly-rate hotels do not continue to proliferate in areas outside of Geylang, especially in residential areas.”
“Mr Teo Siong Seng asked the Minister for Manpower (a) whether his Ministry has conducted surveys and forecasts to ascertain the manpower demand in the retail, hospitality, marine, logistics, telecommunications, healthcare and construction sectors which are critical to Singapore as a business hub; (b) whether there are sufficient Singaporeans to take up skilled and unskilled jobs in these sectors based on our current and projected manpower resources; and (c) whether his Ministry will relax foreign labour policies to enable local enterprises to recruit the much needed foreign workers who are prepared to work long and irregular hours.”
“I think her primary concern is to ensure that the standards are as far as possible of a uniform level, so that parents and students can know what to expect. And, indeed, that is the objective of the exercise. The reason why MOE has approached this in a cautious and consultative manner is because of the many stakeholders who are involved in this sector. You have the VWOs, you have the various principals and teachers and the Ministry has an interest and so does the National Council for Social Services. So, the intent has been to develop a robust framework in a consultative manner and the intention is to have it through a series of trials and focus group discussions finalised and implemented by the end of next year. And I think, in the meantime, there is already a salutary effect on the schools which have gone through the process. So, I would say that that is the key thing. The Member made the point about reporting being streamlined, so that the schools do not have to report to multiple agencies, and, indeed, that is the objective. As a result of this new framework, the entire accountability process will be streamlined, with the exception of the financial accountability to NCSS which indeed has to be separate because funds are being raised for the explicit purpose of helping VWOs. Other than that, in general, the accountability will be streamlined, so that both requirements are met through the one process. MANPOWER DEMAND IN BUSINESS SECTORS 10.”
“Mr Speaker, Sir, I will endeavour to answer the questions. On private education schools, I think we have already crossed that Rubicon. This notion of MOE being a mere registrar, I think, was more accurately reflective of, perhaps, the previous regime, not one that is being contemplated under the new Private Education Bill. There are many factors for this, and I do not propose to go into them at length now – because we will have the Second reading where we can thoroughly debate this – other than to make the point that it is an industry that has grown quite explosively in the last five to 10 years, and it is one that merits greater attention, principally and primarily because of the point that the Member herself has made, which is that we need to ensure that the brand equity of Singapore and the Ministry, in turn, is not diluted. Having said that, the question that the Member has asked is, why is the quality assurance framework – I think by this she meant the intended EduTrust process - voluntary? I want to emphasise that under the new Bill, there is a higher threshold in the first instance even for registration, quite apart from quality assurance. So, how I would draw the analogy for the Member's reference and, again, I think we can go into this in more detail later, is that the private education institutions will have to meet a higher threshold, much higher than what is currently the case, even to get registration in place. And secondly, it is then up to them, rather like ISO certification and so on, if they wish to aspire, as a signal of quality, to go for a level beyond that and seek EduTrust certification. On the quality assurance framework for Special Education (SPED) schools, I understand where the Member is coming from.”
“Since 2005, SPED schools have been conducting self-appraisal using an evaluation tool called AXIS (Aspiration towards eXcellence In Special education) which was developed by a team of SPED school principals and MOE officers. A workgroup, comprising SPED school principals and officers from MOE and NCSS, was formed in August 2007 to develop a quality assurance framework for SPED schools. Based on their study of local and overseas systems, and inputs from members of the SPED School Management Committees, principals and school staff, they have drafted a framework and a quality assurance instrument. Field testing of the draft quality assurance instrument was conducted in April this year and this quality assurance instrument is currently being refined taking into consideration feedback from this field test. By the end of 2009, SPED school principals would be trained on the use of the draft quality assurance instrument which schools would use and it should be done on a pilot basis to replace AXIS. By the end of 2010, the quality assurance instrument will be rolled out to the SPED schools which are funded by MOE and the National Council for Social Services. For the private full-time special education schools, they will come under the scope of the Private Education Act and they may apply for EduTrust certification to meet their quality assurance needs. When it is ready, the quality assurance framework and instrument will enable SPED schools to embark on a systematic school improvement process that will be based on a four-year cycle, comprising three years of annual self-evaluation exercises, followed by an external review on the fourth year.”
“Mr Speaker, Sir, the Ministry of Education will be introducing at this sitting a new Private Education Bill. As part of the new regulatory regime envisaged under this Bill, a voluntary quality assurance scheme for private education institutions called EduTrust will be introduced. The EduTrust Certification Scheme will complement the enhanced set of mandatory requirements stipulated under new registration framework. A public consultation on the new registration framework and EduTrust Scheme was carried out between March and May 2009. And respondents of the public consultation were generally supportive of the move towards tighter regulation of the private education institutions (PEIs) and they welcomed EduTrust as a framework to uplift standards in the industry. The Pro-tem Council for Private Education (CPE) has carefully studied the feedback received and changes were made to the enhanced registration regime and EduTrust requirements in response. More details will be provided when the Bill is moved in Parliament for Second Reading. The Pro-tem CPE Secretariat also recently completed a trial assessment of the draft Quality Assurance framework for EduTrust with 17 PEIs of varying profiles. This exercise was done to gather more empirical data for calibrating the EduTrust assessment mechanism and processes and to iron out any possible kinks in the system. With the insights and data obtained from the trial, the assessment criteria are currently being fine-tuned and the document detailing the finalised EduTrust requirements will be made available to interested PEIs by the end of this quarter. Let me now provide an update on the development of the quality assurance framework for Special Education (SPED) schools.”
“Essentially, the liaison between MOE and MHA occurs at the point of information being communicated to MOE. I would say, at the age of 15, that is a critical point and, in fact, ICA is the body which actually records the identity by race. So, I think it is quite incumbent upon parents and families as well to ensure that whilst they have communicated their preferences to MOE and MOE will in turn communicate that, and this will be reflected in both the Ministries' records, it is quite important that the parents and the students reflect their preferences once again at that point. Because it is possible that from the time of Primary One to the time when the child is of age 15, there may be a change of opinion, as this is by mutual consent of both parents, and therefore it is quite important that the parents communicate that point clearly at that point as well. I just want to make the point that it is not about opt in or opt out, it is more about ensuring a very important part of the IC reflects accurately the preferences of the parents and the child. PRIVATE SCHOOLS AND SPECIAL SCHOOLS (Quality assurance frameworks) 9. Ms Denise Phua Lay Peng asked the Minister for Education if he will provide an update on the Quality Assurance Frameworks for private schools and special schools.”
“Mr Speaker, Sir, as I said in my reply, certainly when the student and his or her parents make their preferences known to MOE during the admission process, or rather the key times during their school education, that will be recorded by MOE and also conveyed to ICA. And I will assume that at the age of 15 when the time comes for the IC to be recorded with the race identification, MOE will also similarly have the records but I would say that the parents of the students equally have an obligation. Having conveyed their preferences clearly to the Ministry, and the Ministry is of course in liaison with ICA and MHA, I think there is an equal obligation on the part of the parents and the students to ensure that their preferences are actually reflected.”
“Sir, I thank the Member for the question. I think, first and foremost, we have to recognise that the companies which invest in power generation are undertaking very substantial capital expenditure. These run into billions of dollars and, therefore, it is evidently and clearly in their vested interest to ensure that, one, they invest and continue to invest in technology and capability that keep them abreast of the competition, and two, they do not end up pricing themselves out, if there are multiple players in the market and the competitive tension is sufficient. So, our objective in the overall management of the electricity sector, has been to ensure that we have as many players as possible. EMA is on record, saying that when there are applications for new planting, they will be considered and be quite generous about it. I think the important thing, then, is to make sure that we create a level playing field where all players feel they can come in. There are no unfair barriers to entry, and once we have that capability, then, that together with the inherent competitive tension within the market, will take care of the concerns that the Member has raised – whether it is in terms of investment to maintain the capability of your infrastructure or in terms of pricing to ensure that it is fair and reasonable to households as well as businesses.”
“EDB will collaborate with Government agencies to develop platforms that the private sector can use to test-bed cutting-edge urban solutions. Solar test-bedding, which Mr Khew mentioned, is one such example and once proven feasible in Singapore's context, these solutions can be replicated on a commercial scale and exported to other cities. Mr Chairman, I have highlighted some of the efforts we are undertaking with some key verticals and we are confident that our measures, which are targeted at these very specific sectors and their needs, will help our businesses manage both the immediate challenges and also position them well for the eventual upturn when it comes.”
“We have already attracted significant investments from major players like REC and Vestas. In addition, homegrown companies are also riding the CleanTech wave. One example is Alpha Biofuels. Formed by three entrepreneurs, Alpha Biofuels collects and converts waste vegetable oil into biodiesel. Since its formation in 2004, it has grown significantly and now partners more than 100 establishments to convert their waste cooking oil into biodiesel. Despite the current downturn, Alpha Biofuels has recently moved from their research facility in ITE College East into a bigger factory at Tanjong Penjuru and has plans to expand beyond its current three retail outlets. Sir, I would like to assure Mr Khew that Government takes a long-term view of the clean energy sector. We have set ourselves an ambitious target to grow this sector to a $1.7 billion industry in Singapore by 2015. Our plan for the clean energy sector has three thrusts: First, to develop a cluster of strong local and foreign companies; second, to build strong technological and manpower capabilities; and third, to help Singapore based companies internationalise. In line with this, the Government will continue to invest heavily in R&D and test-bedding to better position Singapore to capture the enhanced business opportunities that will arise with technological progress. Our strategies will evolve in tandem with the competition from around the world in this space. First, we will ensure our regulatory regime keeps pace with developments. This will ensure that new technologies can be easily integrated into our energy ecosystem. Second, we will position Singapore as a "living laboratory" for test-bedding CleanTech-based solutions applicable to urban settings.”
“In the case of Chinatown, they work closely with the Kreta Ayer Kim Seng Citizens Consultative Committee, and the celebrations they have for Chinese New Year is a good example of how this collaboration can be very successful. Besides the IRs and Gardens by the Bay, there are also plans to develop new tourism projects to augment our infrastructure over the next two to three years. The new International Cruise Terminal will allow Singapore to tap opportunities in the Asia-Pacific region to grow our cruise sector. Wildlife Reserves Singapore will also be announcing a first-of-its-kind attraction in the Mandai precinct, which will re-create river habitats from around the world. It will complement the existing attractions and strengthen the draw of Mandai as a destination for families. As Ms Jessica Tan has mentioned, we do need to build our capacity in new areas to support the future growth of Singapore's economy. Mr Edwin Khew has also enquired about our medium to long term plans to grow Singapore into a global CleanTech centre. As Mr Khew noted, many countries have moved progressively into the CleanTech space, and this will mean greater competition in our bid to attract globally mobile CleanTech investments to Singapore. At the same time, the increased global focus on environmental sustainability will create an even larger market share which we can access. Singapore is well-positioned to be a global leader in the CleanTech space. We are already recognised as a leader in the environment and water sectors. Our experienced and skilled manpower from existing clusters, particularly in electronics and precision engineering, have enabled Singapore to venture successfully into the clean energy space.”
“Let me also elaborate how we intend to build our capacity and capabilities in the tourism sector - in terms of human capital, infrastructure, new growth areas, and R&D. As part of BOOST, STB will complement SPUR by providing more support for businesses to train and upgrade the skill of their employees under the TIP-iT Scheme which already exists. STB also strives to foster a business culture in the tourism sector that prioritises service quality. Mr Low Thia Khiang raised a question on dishonest retail shops. This, I agree, can tarnish the image of Singapore and undermine visitors' confidence. STB works closely with CASE to address such issues. In the first instance, STB takes a preventive approach to warn tourists against such retailers by publishing a list of errant retailers on STB's website and other marketing material. Now, inevitably, some tourists will still fall prey to such errant retailers and STB investigates such complaints thoroughly and will also mediate on behalf of the tourist for refunds or exchanges and, if necessary, represent them at the Small Claims Tribunal. But I think if we can prevent it, it is far better. STB also aims to rejuvenate our existing tourism infrastructure to enhance Singapore's attractiveness. Mr Low raised an example of Chinatown which highlights the balance that STB has to strike in developing tourism precincts – meeting the development and economic objectives on the one hand without losing the charm and character, and I suppose the inherent "messiness" of the place which many tourists and locals find quite attractive. STB actively engages key stakeholders in these precincts, both on the development of the infrastructure and also on the softer aspects like activities, to try and preserve that balance and keep it lively.”
“As expected, hotels across all tiers benefited substantially in terms of revenue per available room during the F1 race weekend. I would like to inform Mr Heng that the review for the plans for 2009, including the levy, is in its final stages and it will take into account this year's tourism outlook. To secure demand for our tourism sector in the immediate to short term, and to build capabilities to capture the growth opportunities in the upturn, STB will roll out in a $90 million initiative. The acronym is BOOST which stands for Building On Opportunities to Strengthen Tourism. In the near term, STB will partner stakeholders in a targeted marketing campaign with the theme "2009 Reasons to Enjoy Singapore" - which is a key initiative under BOOST. Travel patterns are expected to change in the current climate with a switch from long-haul to short-haul trips. The campaign will target this potential higher intra-regional traffic from our key regional markets. STB will also reach out to our resident population as a complementary strategy to generate additional demands for our tourism sector. STB will also increase its support to strengthen bids to attract events to Singapore over the next two years. This will generate demand and yield spin-offs for the wider tourism sector, including our hotels and F&B businesses. STB will leverage on Singapore's reputation as a global business centre to target Meeting, Incentive, Convention and Exhibition (MICE) events that are aligned to Singapore's economic priorities, such as digital media and environmental technology. Some examples include the Anime Festival Asia and the inaugural Clean Energy Expo Asia which are expected to attract more than 11,000 visitors.”
“However, I agree with Mr Singh and Mr Seah that in the current exceptional operating environment, the strain on a company’s cash flow will be exacerbated if it is unable to sub-let any unutilised space. For this reason, JTC will temporarily lift the 50% sub-letting cap until 31st December 2011 as a relief measure to help businesses ride out the current downturn. 1.15 pm Mr Heng and other Members have highlighted the problems posed by the sudden fall in global demand. I would like to use the tourism industry to illustrate how Government agencies will partner the private sector to seek opportunities to boost demand where possible, a vertical approach which Minister talked about. In 2009, the global tourism industry faces a difficult year. For Singapore, the Singapore Tourism Board (STB) forecasts total visitor arrivals to be in the range of $9-$9.5 million, a year-on-year decline of 6%-11%. The total tourism receipts generated are also expected to fall to a range of $12-$12.5 billion in 2009, that is around a 15%-18% decline. Nevertheless, our tourism industry approaches this challenging period from a relative position of strength. Tourism projects secured in recent years will generate an estimated 3,000 new jobs this year. This is on top of the 9,000 jobs from the IRs in 2009, building up to 20,000 when the two IRs are completed. Our successful hosting of the world's first Formula One (F1) night race has captured the attention of the world and the international media with more than 110 million television viewers worldwide. The event also drew more than 40,000 overseas visitors and generated $168 million in incremental tourism receipts, which exceeded our initial estimate of $100 million.”
“We stressed that our value proposition here is not just premised on cheap rental, but on the overall total system, cost and value. As a principle, JTC aims to lag the market for upward revisions and lead the market for downward adjustments. In fact, JTC proactively reduced its posted rents and prices by 5% to 10% in January this year. Combined with the rental rebates, all except 0.1% of JTC’s tenants, who are on very short-term tenancy agreements, will benefit from the lower rents in 2009. Mr Inderjit Singh and Mr Seah Kian Peng asked if JTC could relax the rule that allows JTC lessees to sub-let only up to 50% of their built-up space. First to clarify, this is not a new rule as Mr Inderjit Singh said. In fact, in 2003, this rule is already pre-existing and JTC relaxed this policy and allowed lessees to sub-let their entire gross floor area (GFA) as a short-term measure to assist companies in financial difficulties because of the economic downturn. The policy was then reinstated in September 2008. I think the rationale for the policy is self-evident. Mr Inderjit Singh identifies with it. JTC has to ensure that our limited industrial land is allocated and optimised to support our economy and its key industries. This is why majority-owner occupation must be the norm. At the same time, we want to give companies some flexibility: first, to put to productive use vacant space that may occasionally come about; and second, to facilitate co-location of related business activities where it makes economic sense. A 50% sub-letting cap enables JTC to achieve these twin objectives in a balanced manner.”
“Some private-sector landlords like CapitaLand, Lend Lease, Mapletree, City Developments and Frasers Centrepoint have committed to pass on the property tax rebate in full or in part to their tenants. This will exert competitive pressure in the market and I urge more landlords to follow their good example. Government has taken the lead by providing a 15% rental rebate for HDB, JTC and SLA tenants. Mdm Ho Geok Choo asked if the Government can double the rental rebates to 30%. Mr Chairman, a 15% rental rebate is, in fact, quite significant. It is more than three times what other lessees and tenants would enjoy, even with a full passing through of the property tax rebate. This 15% rebate will provide savings of over $300 million to some 31,000 companies in 2009. Besides the rebates given by the Government, businesses are likely to obtain additional relief as rentals ease from their peak in the past one to two quarters. Dr Ahmad Mohd Magad has suggested that JTC revive the construction of Ready Built Facilities (RBF). The private sector is actually quite well equipped to provide multi-user space, including RBF. About % of all new multi-user space is provided by a diverse group of players. They provide generic factory spaces of varying sizes in different localities and at competitive price points. Market projections indicate that the multi-user space to be released over the next two years will be more than adequate to meet the net increase in demand. JTC will continue to monitor this closely to ensure that there is sufficient supply, which is, I think, Dr Ahmad Magad’s concern. I would like to assure Mr Inderjit Singh that JTC regularly reviews and benchmarks our industrial land costs against locations that compete with us.”
“In October last year, I informed the House of EMA’s plan to review the formula for setting household electricity tariffs. The current formula has served us well over the years by providing relative certainty and stability in an era of less volatile oil prices. The aim of the review was to enhance the formula given the greater volatility in global energy prices in recent times. At present, fuel oil prices in the first month of the previous quarter are used to set the electricity tariff for the current quarter. Going forward, EMA intends to revise the formula by using the average of fuel oil prices in the preceding three months, to determine the tariff for the current quarter. For example, the new formula would have used average fuel oil price from October to December last year, rather than just October, to set the tariff for the first quarter of 2009. This change will entail material adjustments to the hedging operations and processes of industry players. The new approach has two advantages. First, it will help to reduce the volatility of the electricity tariff by averaging fuel oil prices over a longer period. Second, with a three-month average, more recent fuel oil price data will be used to determine the tariff. This will allow the tariff to be more reflective of the prevailing market prices of fuel. EMA will use the revised formula to set the electricity prices for the third quarter of 2009 and beyond, after consulting key stakeholders and industry players. I will now move on to land-related costs. Several Members, including Mr Heng Chee How and Mr Seah Kian Peng, have asked the Government to ensure that the savings from the 40% property tax rebate are passed on to current tenants.”
“I will supplement the Minister's response by addressing some specific questions raised by Members which pertain to three broad issues – managing resource costs, boosting demand and building capabilities for the future. Managing the cost of resources is an important concern for businesses, especially so in a recession. Let me start with the cost of energy, which Mr Heng Chee How has raised. As we import virtually all our energy supplies, Singapore is vulnerable to volatility in global energy prices. Competition in our power sector has been a bulwark against rising energy prices. Competition motivates efficiency and exerts downward pressure on prices. Our experience since 2001 when we began to liberalise the electricity market, vindicates this approach. While fuel oil prices have risen by 143%, tariffs have risen by only about 15%. More recently, household electricity tariffs fell by 25% in the first quarter of 2009 after peaking in the last quarter of last year. We can expect a further reduction in April for the second quarter, in tandem with global fuel oil prices. EMA will continue to study measures to inject more competition into the market. One example is the Electricity Vending System (EVS) which would allow households to purchase electricity direct from competing providers. EMA has commenced a pilot of the system which, if successful, will lead to its eventual implementation on a national scale. In the interim, EMA is considering other steps to bring more benefits of competition to small consumers and households. One idea is for the power generation companies to bid for a portion of the domestic electricity load on a competitive basis. EMA expects to complete a detailed study of this proposal by the end of the year.”
“I therefore urge all employers to work with WDA and send their workers for training, so that both workers and employers will be able to ride out the difficult times together and sharpen their competitiveness. The Government will continue to support companies to upgrade their capabilities to undertake higher value-added activities and invest in technology and innovation for greater productivity. For example, since April 2008, the Government has injected another $20 million into SPRING's Local Enterprise and Association Development (LEAD) programme to support new industry associations, while enabling existing associations to embark on new initiatives such as feasibility studies of new markets and strategic planning for the industry. Such investments will ensure that our companies continue to retain their competitive edge during this period of economic uncertainty.”
“Labour productivity in the third quarter of 2008 contracted by -9.6% compared to the same period a year ago. Over the second half of 2008, the sharp decline in output and economic growth has made employers cautious about hiring. Many have frozen headcount already but most are still retaining their excess workers. While we cannot buffer Singapore fully from the global economic crisis, there are measures which we can take so that companies can strengthen their competitiveness and emerge stronger when the economic situation improves. To help companies raise their productivity, we have a three-pronged strategy: (i) investing in training of our workers; (ii) helping companies take advantage of the higher skills of their workers through job redesign; and (iii) encouraging companies to improve their productivity through investments in technology, processes as well as innovation. On training, the tripartite partners have launched the Skills Programme for Upgrading and Resilience (SPUR) on 1st December 2008. SPUR leverages on the comprehensive CET infrastructure to equip workers with relevant skills that can be applied in a job immediately, so that they can advance in their careers, and remain competitive. SPUR provides enhanced course fee support and absentee payroll for employers and covers over 800 courses. However, the availability of training infrastructure and funding support can only be fully leveraged if there is a mindset change on the part of workers – to be more open minded about new jobs and constantly upgrade their skills or equip themselves with new skills to remain relevant in the workforce, given the uncertain economic outlook.”
“Mr Speaker, Sir, in terms of assistance that can be rendered to residents, as we are aware, MPs are one- channel in terms of submitting representations on their behalf. There are also schemes available through CDCs and so on, in terms of financial help. Also, in terms of the U-Save schemes, what a person gets in a U-Save rebate can be used flexibly. In other words, he does not have to necessarily use it all for electricity. He can use it for water or gas and then work out a scheme with SP Services on the residual amount for electricity. The Member has raised some specific instances. If she would like to surface them directly, we can have a look at it and see if there is something more that can be done. But I want to stress that SP Services, at the end of the day, is a private entity. They are exercising restraint and I think they are quite aware of the circumstances, but we also have to be aware of their commercial imperative. DECLINING LABOUR PRODUCTIVITY 3. Mdm Ho Geok Choo asked the Acting Minister for Manpower given the declining labor productivity that has been in the negative for the last three quarters, especially in the manufacturing sector, what is the Government doing to address the declining labour productivity. The Senior Parliamentary Secretary to the Acting Minister for Manpower (Mr Hawazi Daipi) (for the Acting Minister for Manpower): Sir, for the first three quarters of 2008, labour productivity declined as the slowdown in economic growth was outpaced by job creation. Employment typically lags output, as given their sunk costs in recruiting good workers, companies begin to cut back on hiring only when it is clear that the decline in output reflects a sustained slowdown rather than a short-term blip.”
“Mr Speaker, Sir, if I understand the Member's question correctly, it is whether we can have SP Services and agencies work with volunteers to counsel those who are on PAYU on their electricity consumption. The answer is definitely yes. In fact, NEA has also been putting up quite a lot of information on how people can be more resource conscious in the way they expend, whether it is water or electricity and so on. And EMA is also a part of that effort in terms of electricity. So, if there is a desire to work with the agencies on information that can be then disseminated in a more direct manner, this is something that EMA will be very happy to work with Members on.”
“Mr Speaker, Sir, I think the Member raises an important point which I think all of us are very familiar with. As we are quite well aware, SP Services does not terminate utilities or enforce its rights precipitously. There is normally a process. Usually it is only in the more egregious cases either because of an individual account which has not negotiated a proper payment plan or having negotiated such a plan and not honoured it, that is when they then move on to exercise their right. Having said that, I think we are mindful of this. Just to give Members some indication. In November last year, notwithstanding the higher tariff rates and the general economic conditions, in fact, the number of accounts in arrears was actually lower than in previous months. In part, it is also due to the fact that we have the Utilities-Save (U-Save) rebates and these have been helping our residents cope significantly with their utilities bills. So I think that will continue to be a feature in the current year. As Members know, there are still some U-Save rebates to be paid out this year, and that will be quite helpful to our residents. Also, if we look at PAYU, which is another indication of whether people are in distress in meeting their utilities accounts, the number of accounts on PAYU scheme has been more or less stable for the last 12 to 14 months or so. It has been relatively stable. So, on the ground, people seem to be managing. Yes, there are some cases of distress, and when they approach their MPs, we can assist them. In the meantime, SP Services is also exercising some level of restraint but with due regard to their commercial objective.”
“Mr Speaker, Sir, I think the Member probably has not been following the numbers closely. Our job projection numbers have remained consistent. We have said the two IRs will generate about 20,000 jobs directly, and indirectly there will be 30,000 to 40,000 jobs created. That is the number we have said from the start and we have maintained that position. COMPULSORY IMPLEMENTATION OF SEAT BELTS ON MINI-BUSES (Deadline) 12. Dr Fatimah Lateef asked the Minister for Transport with regard to the recent announcement on the compulsory implementation of seat belts on mini-buses, (a) why has the deadline been set so far ahead to 2011 for school buses and 2013 for smaller buses; (b) why have smaller buses which carry less than 15 passengers been given a later deadline; and (c) given the seriousness and potential consequences related to the matter, whether his Ministry will consider an earlier deadline for the compulsory implementation of seat belts.”
“There has been no change in that and in awarding the final licence, the layout, etc, would be reviewed and considered before the final casino licence is awarded. But the key point I want to stress is this that there is no change. It remains 15,000 sq metres, and if you look at that as a percentage of Marina Bay Sands' total development, which is, I think, in excess of 500,000, it is well within this 3%-5% range that has been quoted publicly. Is our projection for the GDP contribution from the IRs valid? As of now, MTI's view remains that in the steady state – because our projection was always based on in a steady state in 2015 – when they are fully developed and running, the GDP contributions and the job creation numbers were based on that. And that remains our projection as in we say that in the steady state, we hold our view. But whether that would be achieved in 2015 or there may be some shifts because of changes in the industry and development, that is something we have to study and see. And, finally, on whether Temasek will invest, I think that is a question for Temasek. It is a commercial company, and they make their own decisions.”
“Mr Speaker, Sir, I thank the Member for her exhaustive list of questions. I will attempt to answer them. Financial security – was that a consideration or was too little attention paid to it? Clearly, in evaluating all the proposals, the financial capability and the ability to organise financing was a consideration in deciding which bid was to be awarded. It was one of the considerations. I think the point to note here is, we are in now profoundly altered circumstances compared to when the IR RFPs went out, and the manner in which they were put together at that time. So, I think we have to recognise that the situation is fundamentally different in certain areas because these credit crunches that we see now are a result of quite a dramatic change seen in the US and the financial markets. Having said that, I would want to stress that both IRs have secured project financing here in Singapore for their projects. And I think as far as we can tell, those project financing remains secured and that is the assurance they have given us. I will take some of the other questions first on the gaming area – have we somehow conceded something to the Marina Bay Sands because of the announcement that the number of gaming tables has been increased from 600 to 1,000? The provision has never been on the number of tables. It has been on the floor area available for gaming activities and that number was 15,000 sq metres and that remains to be the case. So, the Casino Regulatory Authority has certain rules and guidelines required of Marina Bay Sands for compliance as it does for Resorts World and they maintain those requirements.”
“Resorts World at Sentosa, which is developing the IR on Sentosa, has also requested a progressive opening of their development. Our understanding is that this request arose from some physical on-site constraints that the company encountered when constructing the Integrated Resort. The STB and other Government agencies are considering these requests by Marina Bay Sands and Resorts World at Sentosa with due reference to what they have committed as part of the Request for Proposal exercise. Even as we do so, our expectation remains that each development will open as an Integrated Resort, and not just as a stand-alone casino. If the requests are allowed, they will also be subject to various terms and conditions. Ms Eunice Olsen has also asked when the projected GDP contributions from the IRs would be achieved and if the IRs' business will be affected by the financial turmoil. It would be fair to say that due to the global financial crisis and the slowdown already evident in our tourism sector, there may be some impact on the IRs' business when they open. It is, however, premature to try to ascertain in quantitative terms what the exact impact will be given the volatility in the economic environment. What we do know is that both IRs remain optimistic that their product offerings will draw visitors from their target market segments. On the Government's part, the STB will continue to work closely with both integrated resorts and monitor the situation.”
“Mr Speaker, Sir, the Integrated Resorts are commercial projects which take on the usual business risks and face the vagaries of the market. Consequently, they are likely to face challenges arising from the current economic environment and financial market situation. As a result of the recent financial turmoil in the United States, several US-based companies have been adversely affected by the credit crunch. This has led to concerns about the financial health of the US-based Las Vegas Sands Corporation and any possible impact on its Singapore subsidiary – the Marina Bay Sands Integrated Resort. To address these concerns, Las Vegas Sands Corporation has embarked on a capital raising programme. Members would be aware of Mr Sheldon Adelson's, the Chairman of the Las Vegas Sands Corporation, public affirmation of his commitment to the Marina Bay Sands project. We welcome Mr Adelson's strong commitment and look forward to his company doing what is necessary to see through the completion of the Marina Bay Sands project. The Singapore Tourism Board (STB) remains in dialogue with Marina Bay Sands and continues to work with them to facilitate the project's completion. When Las Vegas Sands Corporation won the bid for the Marina Bay IR, it committed to complete the entire development by the end of 2009. The project has made good progress to date, despite the resource constraints arising from a tight construction sector. The current financial turmoil has introduced additional challenges for the parent company of Marina Bay Sands. They have therefore proposed a progressive opening of their development, a request which is being carefully considered by Government agencies.”
“So we want to make sure that we have done a deliberate consultative process before we come up with an outcome which all parties can subscribe to.”
“Mr Speaker, Sir, at the last sitting we had an extensive discussion on this. I do not propose to go into the full details but I thank the Member for raising this. I want to just highlight a few key points. Is the current formula deficient? I think we need to think about it in the context of what is the alternative. In the last session, we circulated a table chart showing the trend in the electricity tariff and oil prices. I think the key take-away from that is – using the formula that we have been using for the last four years or so – in these last 16 quarters, 11 have produced outcomes which are actually more favourable to consumers than if we had used spot oil prices – meaning the price of oil in a month – as the Member has suggested. The reason why this looks like a more attractive proposition today is because oil prices have come crashing down and so there is a disjoint between a price set based on a number that was determined three months ago as opposed to the current price. So, naturally, in a downward trend, this is going to be the case. So taking on the position that when we set a formula and when we review the formula, we need to look at the overall picture – not just at the current context but at the longer-term trends – to the best of our ability, and find a formula that will best serve our needs, both to protect consumer interests and at the same time, ensure the long-term viability of the industry. As for the timing, the reason why it needs to go on till middle of next year is primarily because – as the Member would appreciate significant market sensitivity – many companies are involved and they base a lot of their decisions on this formula, amongst other things.”
“Sir, if Ms Ellen Lee is satisfied, then I need not answer.”
“Column No : 523 INCREASE IN ELECTRICITY TARIFF (Consumer protection) 13. Ms Ellen Lee asked the Minister for Trade and Industry (a) if he will explain Energy Market Authority's (EMA) recently announced increase of about 21% in the electricity tariffs when the forward oil prices for the fourth quarter in the open market has actually dropped and is available at a much cheaper price than the $155 per barrel stated by EMA; and (b) whether there is a professional group of analysts/traders helping EMA to seek out the best/lowest prices since its primary obligation is to protect the consumers in Singapore.”