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.”
The complete record
Every one of 2,300 lines we hold for S Iswaran, in date order, each linked to its source. Free to read, in full, without an account. Page 36 of 46.
“Mr Speaker, Sir, I think restraint is a virtue. I think we should thank Singaporeans for that restraint. As far as price increases are concerned, I think we all share this concern. We want to help Singaporeans cope the best they can and to ensure that they can manage their day-to-day living expenses. I think the general approach – and I reiterate this point because it is important – that we do not want to unnecessarily interfere in market mechanisms. Every time we do that, we create an entirely wrong perception of the Government and the system here, and we increase the regulatory risk perceptions. We just have to look around at other countries which do this quite regularly to see what the consequences can be. Having said that, I think our key approach must be to ensure that timely and targeted help is given to Singaporeans, not just at the low-income level but across the board. There are two things I want to say about this. First, actually it is more a Ministry of Finance issue, but several schemes have been announced. I think many of them, such as the GST Offset Package and the Growth Dividends actually have gone well beyond the lower percentiles to higher levels as well. So middle-income Singaporeans have also benefited from them. I think the Ministry of Finance has said that the Government will review and act, as necessary, on this score. That is the first thing. Secondly, if there are any egregious examples of people who are profiteering or taking advantage of the situation to sell, then I think those merit investigation and we have a committee against profiteering set up in MTI under Minister of State Lee Yi Shyan. And we will be very happy to receive those sorts of reports and act on them.”
“In regulated sectors, such as public transport, telecommunications and utilities, we also have regulatory bodies to ensure that price increases proposed by the industries are not out of line with underlying cost increases. For services provided by Government agencies, the Government's approach has been to charge realistic fees that reflect the cost of delivering the services. The Government has been and will continue to monitor the impact of cost increases on Singaporeans very carefully. This is an ongoing exercise in Government. Therefore, there is no need to establish a national committee to do this. Where necessary, the Government can step in to provide targeted assistance to Singaporeans, as we have several times in the past, for those who might need help to cope with the cost increases. This the Government has done over the past few years. Last year, the Government announced the GST Offset Package, which included GST credits, Senior Citizens' Bonus, U-Save rebates and top-ups to post-secondary education accounts. Members are very familiar with these programmes. The Government has structured these packages so that lower-income Singaporeans, who have been more affected by inflation, receive more benefits. The Government understands and appreciates the concerns that Singaporeans have towards rising cost pressures. The practical steps that the Government has taken will go some way towards providing relief. And should the inflation situation worsens, the Government is also prepared to adjust its assistance schemes to help Singaporeans to cope.”
“Mr Speaker Sir, first, let me sketch out the outlook for inflation for 2008 and 2009, before I proceed to answer the questions from Mr Sam Tan and Ms Irene Ng. Inflation in Singapore has started to ease. CPI inflation peaked in the second quarter of this year and is likely to decrease for the rest of the year. On a year-on-year basis, CPI inflation has come down from the high of 7.5% in the second quarter of this year, to 6.4% in August. This reflects mainly the moderation of global food and oil prices, as well as the washing out of the impact of the GST increase in July last year. For 2009, the Monetary Authority of Singapore expects a reduction in headline inflation to 2.5% to 3.5%, down from the 6% to 7% this year. Ms Irene Ng has asked if the Government will set up a national committee to review cost increases. Mr Sam Tan has also asked if the Government will take steps to ensure that private and public agencies do not raise prices at the same time. Much of the price increases that we have experienced can be traced back to increases in external prices, specifically and especially the price of oil. Higher oil prices have translated into higher pump prices, taxi fares, airfares and electricity tariffs. Several of these price increases are, therefore, happening at around the same time because they have the same underlying cause. Should the Government step in to intervene? Our principle of allowing market forces to work has served us fairly well. We should let prices reflect the true cost of goods and services. Artificially suppressing prices through committees or other means encourages over-consumption and is not sustainable in the long run.”
“Sir, may I take Question Nos. 11 and 12 together, please?”
“Column No : 519 COST INCREASES (Impact on Singaporeans) 11. Mr Sam Tan Chin Siong asked the Minister for Trade and Industry in view of the fact that the latest round of electricity fare hike follows a series of price increases for daily essentials, will the Government consider taking steps to ensure that public and/or private agencies do not collectively increase prices at the same time. 12. Ms Irene Ng Phek Hoong asked the Minister for Trade and Industry (a) whether the Government is continuing to monitor the impact of cost increases on Singaporeans and is taking steps to assist households which need help; and (b) whether a national committee should be set up to review the cost increases over the past year, to oversee the impact of rising inflation on Singaporeans, and to coordinate the price increases in the various sectors, given public concerns over the spate of sudden increases.”
“Mr Speaker, Sir, Singapore Power (Private) Limited, the parent company, has three businesses. One is the electricity grid; the second is the gas grid; and the third is SP Services, which does the selling of electricity to households. All of these are regulated monopolies, regulated by the EMA. SP Services is not quite a monopoly but is regulated because it deals exclusively with households. And, essentially, it is regulated to make sure that they do not earn a super normal rate of return. So the EMA uses international industry benchmarks to ensure that whatever rate of return they earn is a reasonable rate of return compared to international standards. Why should there be a reasonable rate of return? It is simply because if we do not have that, and this is the point which Mr Banerjee raised earlier, how do we ensure continual improvement and upgrading of our infrastructure. Let me take Singapore Power's electricity grid as a case in point. They have to invest S$5 billion over the next five years to enhance the grid infrastructure. If they do not earn what is considered to be a fair rate of return by industry and market standards, then they will be tempted to cut back on that investment, because it is not in their shareholders' interest and, therefore, not in the company's interest. So to frame it as investors' pockets versus households' pockets is actually not quite correct. What we should be saying is that we should ensure that there are no super normal returns. But if there are reasonable returns ensured for our companies in the electricity market, then we can be assured that they will do the right things in terms of ensuring the system continues to upgrade itself in technology and efficiency, and those benefits will then percolate to our consumers.”
“One reason is because Hong Kong fuels two thirds of its electricity generation using coal, which is a significantly cheaper fuel. We do not have that option, and I am not sure if we price coal for its carbon emissions and so on whether it will, in fact, be a cheaper fuel. That is the first point. The second point is that the power generating industry in Hong Kong is a more integrated one, meaning the company that sells the electricity, the equivalent of our SP services, is also the company that runs the grid and is also the company that generates electricity. We have broken the industry up into contestable and non-contestable components. Whereas in the case of Hong Kong, they have used an integrated approach and then they deal at that level. There are pros and cons. I think they are different approaches. But, fundamentally, what we want to do is this. We recognise that the oil and fuel market has great volatility. We want to try and minimise the impact of that volatility on our households through electricity tariffs. But we cannot shield our households from the full impact of that volatility or the price increases, because that is not the reality. I think we have to accept that. Er Lee Bee Wah: Mr Speaker, Sir, I believe whichever company buys over Genco, they will find ways to make it more efficient. But is the Minister convinced that whatever dollar that they make will go into the investor's pocket or will go into the consumer's pocket? Based on the recent emails that I received, our SP services makes millions of dollars and yet the electricity tariffs go up. Maybe we really have to look into ways of having a separate formula of pricing the electricity tariffs. Perhaps one of the yardsticks is the profits that they make.”
“Mr Speaker, Sir, on the formula, subject to any commercial confidentiality issues, I am sure EMA may be happy to oblige. Secondly, whether the electricity change has been excessive, we have got to put it in context. It is against the backdrop of an unprecedented series of price increases in the oil market, and we are all well aware of that. So when we posit that the extreme, we have got to compare it against what is the backdrop, and whether it squares up. I would argue that if we look at the comparison, actually our system has done fairly well, and I think the chart shows that. But that does not mean that we cannot do better. Yes, we can look at what other systems that we can put in place. But I also want to just mention that it is not clear whether there is a better formula or point that we can use as a reference. If we say we want to use spot prices, we can see the implications. If we say we want a fixed price, then the power generating companies are going to say, "I want a very high fixed price because I have to put up with the volatility in the spot markets." So when we design a system, we have to take these things into account. Yes, it is very unhelpful that the timing of this increase and the extent of the increase on this occasion. But when we think about whether we should change and how we should change, we should be quite circumspect about it, and take into account the implications across the board, and not just at one component of the market. Finally, the Member compared us to Hong Kong and talked about the Hong Kong pricing system and so on. There are some basic differences between us and Hong Kong I want to highlight, which is one of the reasons why a direct comparison is a bit difficult.”
“First of all, we operate it on the principle that it has served us well thus far, that we create a regime where we promote competition. And when we promote competition, the players are incentivised to optimise. Mr Banerjee's point here is that they may be tempted to run down their assets and sub-optimise the long-term development of the assets and the industry. But there are two points here. First, if we look at the example that we have today. We have a foreign consortium buying over Senoko Power and the first order of business is to change from oil fired to gas plants which are more efficient. And they know that in the long run, it is going to serve their interests better, business-wise and, of course, in the process, it is going to help our consumers better as well. So the evidence actually is mixed on this and that is why we also need a keen regulator who looks into this. The other important element in our regulatory regime is to allow ease of entry and exit in two ways. First, the existing players can plan new plants and they are given this flexibility and EMA will be happy to license them. So if a particular Genco is running down its assets and, therefore, sub-optimising, and that they can do better in other fields with a newer plant with better technology, then that will be facilitated and that will ensure some progressivity in our industry. Secondly, we also allow new entrants into the industry. It is an open market. We are prepared to allow new players to come in. And this is also why we have opened up our electricity and gas grids. It is a common user system. So anyone who comes in can use the electricity grid to push out the electricity that they generate and use the gas grid to fuel the electricity they generate.”
“Mr Speaker, Sir, I understand the Member's sentiment. It is an inherently complicated industry and the formula reflects that. I have tried to present it in as simple a manner as I can and will be very happy to work with Members to see how best we can translate this into even plainer language that we can communicate on the ground. But the core message which I think it will be difficult to communicate to anybody's satisfaction is why have prices gone up by so much. The reality is that it is a reflection of the underlying trends in the fuel market and that volatility has been reflected in our electricity prices. And that is something that we will take some effort to explain to residents. But I think giving more data or simplifying the language would not address that in full. On the second point about setting up a council or other mechanisms to regulate the industry or to oversee the formula, I appreciate the Member's sentiment and the sentiment of many in this House that we want to do the best we can for our consumers, households and businesses. But we should just be careful that we do not, because we have one or two inconvenient outcomes in particular quarters, over react and set up new mechanisms and regulatory channels which will completely change the perception of our market. It will be seen as having a greater regulatory risk. And if there is greater regulatory risk, then we must expect that the electricity generating companies here will expect a higher rate of return than what they currently have.”
“Mr Lim Biow Chuan asked the Prime Minister (a) whether the Government keeps track of the number of cases where civil servants are verbally or otherwise abused by members of the public; (b) whether this has contributed to the increase in work stress for civil servants or more resignations by civil servants; and (c) what plans does the Government have to ensure that civil servants are protected from unreasonable abuse by members of the public.”
“Mr Speaker, Sir, as I said, there are different categories of tourist attractions in Singapore. We have quite a variety of free or very low cost attractions which all of us can participate in and enjoy. For the themed attractions which are run as businesses, it would be inappropriate for the Government to mandate that the operators offer specific discounts or tiered fees, as the Member suggests, in order to facilitate affordability. Having said that, most of them on their own accord already offer various pricing packages in response to their assessment of the market. So, let me take the Singapore Flyer as an example, because I know that in recent times some talk about that as being expensive. But even for the Singapore Flyer, while they have certain rates, they offer significantly discounted rates for students and the elderly. They also have family packages. I think for about $150, you get quite a good deal for unlimited visits, and so on. In general, they also price for off-peaks, in order to try and maximise utilisation. So, I think we should leave it to the private operators of these themed attractions because they have made the investments on the basis that they are going to be free to price and run their business according to the market. It would be inappropriate for us as a Government, notwithstanding a noble social objective, to mandate such a requirement. I think we leave it to the market and, if necessary, the community organisations and grassroots organisations can run various excursions and visits on a subsidised basis. CIVIL SERVANTS (Abuse by members of the public) 19.”
“Mr Zaqy Mohamad asked the Minister for Transport (a) if his Ministry has plans for public consultation at the grassroots level on improving bus route planning once it has taken over the centralised planning of bus routes; and (b) how does the Ministry plan to engage the public users to make bus routes more relevant. 4. Mdm Ho Geok Choo asked the Minister for Transport (a) whether he will give an update on the upgrading exercise of the public transport system; (b) whether there has been an increase in the frequency of buses and trains and, if so, by how much; and (c) if there is a measure of the number of passengers per train/bus and whether this figure has fallen.”
“Mr Speaker, Sir, our approach towards the entire hotel room situation is to allow the market forces to determine the quantity needed and also the pricing to be determined by the balance between demand and supply. Mr Banerjee's point is whether we need more three- and four-star hotel rooms. It is not for the Government to assess this as much as the market – between the travel industry players and the hoteliers, and so on. Having said that, we have made a significant number of hotel sites available. In this case, in the second half of this year, there will be 13 Government Land Sales (GLS) sites with a capacity for more than 5,000 rooms – if I remember correctly – and these are available for different quality hotels. Mr Banerjee might also be aware that there is a significant development, in fact, in the three- and four-star segment of our hotel industry today in several locations. For example, in the Serangoon area, there have been major developments, because that is one area where a lot of the three- and four-star type of demand is concentrated. That remains a major possibility – what is already in the pipeline and through the GLS sites. In addition, we also have some adaptive reuse kind of possibilities for disused Government buildings. Those are also available. In sum, the supply is there and the potential supply availability can be boosted through this adaptive reuse and land sites. The important thing is for the market place to assess where these needs are and to respond to them. PUBLIC TRANSPORT SYSTEM (Measures to improve) 3.”
“This is something which the IR operators have as much of a vested interest as we do in maintaining the service quality and standard. Most of them – not just the IR operators but in general tourism and hospitality establishments – put their staff through a regular regime of pre-deployment training to ensure that minimum service standards are met and according to their specification. HOSPITALS' ETHICS COMMITTEES ON ORGAN TRANSFERS (Functions and duties) 14. Mr Hri Kumar Nair asked the Minister for Health (a) what standards are expected of hospitals’ ethics committees in discharging their functions and duties in reviewing applications for organ transfers; and (b) whether the Ministry intends to review past organ transfers to ascertain if the relevant hospitals' ethics committee have properly discharged their functions and duties.”
“Mr Speaker, Sir, clearly, there is tightness in our labour market and that means that as we generate this new sector with growing demand for workers, there is going to be pressure on supply sources. The work and the programmes which I just elaborated, which are undertaken by STB and WDA, are to really generate the supply to meet the demand from local sources. That basically means, first, for people who are already in the industry but who may want, with some modifications and some training, able to adapt themselves to the opportunities offered by the IRs. The second is, of course, pre-employment training, that is, in schools, our polytechnics and ITEs. The third is also for those who may want to switch from other industries into this area. So those are efforts we have undertaken and we are also hoping that through this process, those who are currently not participating in the workforce, will also come forward through these programmes to get involved in these new opportunities. Having said that, the market is tight and we do expect that there will be some difficulties for the IR operators to fill all their needs or their assured needs through just local sources. So we will have to work closely with the IR operators to see how well their needs can be met. At this stage, they are on track to meet their requirements and what they have assured us, through their RFPs, in terms of the local component of the workforce. But we will be monitoring the situation over the next few months and years leading up to the opening of the IRs to see how we can work with them on this. The Member also asked if we were to bring in foreign workers, how they will be prepared.”
“Bill considered in Committee; reported without amendment; read a Third time and passed.”
“Under the proposed approach of imposing cess for specific tourism events, the STB would need to advise my Ministry on the tourist establishments on which cess is applicable and the amount of cess to be paid by any person under the Act. Clauses 5, 6 and 7 of the Bill will allow the STB to obtain the information required to carry out this responsibility. Improvement to the penalty structure Clauses 8 and 9 of the Bill will strengthen the penalty framework in the Singapore Tourism (Cess Collection) Act to allow the STB to deal more effectively with non-compliance. The penalty for late or non-payment will increase the longer a person delays cess payment. Beyond the initial 5% penalty, any additional penalty is subject to a maximum of 50% of the amount of cess outstanding. Mr Speaker, Sir, the proposed amendments to the Singapore Tourism (Cess Collection) Act will enhance our ability to anchor strategic tourism events in Singapore, many of which come at a high staging cost. These tourism events will not only benefit the tourism sector and the economy at large, but will also enhance the profile of Singapore internationally and contribute to ongoing efforts to transform Singapore into a distinctive and vibrant global city. While Government can provide support commensurate with the benefits to the economy, it is essential for the success and sustainability of these tourism events that the key beneficiaries also play their part and help defray the high staging costs of such events. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. – [Mr S Iswaran].”
“Imposing cess to fund specific tourism events Currently, sections 5 and 6 of the Singapore Tourism (Cess Collection) Act stipulate that tourist establishments are liable for cess on the specified sales made or charges collected at a specified rate. To allow cess to be used in a more targeted way, clause 3 of the Bill empowers the Minister to declare a tourism event where cess will be applied and the period for which cess shall be levied. The clause would also allow the Minister to specify the descriptions of sales or charges for which cess shall be paid, the tourist establishments upon which cess shall be levied and the rates at which cess shall be paid. Changing incidence of cess on to tourist establishments In addition, my Ministry proposes to repeal section 7 in clause 4 of the Bill to remove the provisions for the recovery of cess from consumers. Currently, tourist establishments may recover cess from their customers and, in doing so, show the amount of cess paid on the sales receipts. With the amendment, the Singapore Tourism (Cess Collection) Act will reposition the incidence of cess on the specified tourist establishments, rather than on their customers. Tourist establishments can then price their products and services in accordance with prevailing market conditions. This is in line with the Government's intent for the key beneficiaries of tourism events to make a contribution towards the cost of these events. Allowing the Singapore Tourism Board to obtain information Sir, the Singapore Tourism Board (STB) is currently empowered to obtain information under the Singapore Tourism (Cess Collection) Act for the purpose of ascertaining the amount of cess to be paid.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, during the Budget Speech in 2007, then-Second Minister for Finance announced the intent for cess to be used in the future in more targeted ways to fund specific tourism projects. In line with this, my Ministry of Trade and Industry is proposing to amend the Singapore Tourism (Cess Collection) Act to allow the imposition of cess to fund strategic tourism events. The staging of strategic tourism events in Singapore enhances Singapore's global branding and brings significant economic benefits to the country. However, such events typically entail high staging costs. The Government can provide financial support commensurate with benefits to the broader economy to help defray some of the costs. But it is not sustainable for Government to be the sole source of support for such events. We need the key beneficiaries of such events to also play a part in defraying these costs as they derive significant economic benefits from these events. In particular, the tourism and hospitality sectors stand to benefit from the higher foreign visitorship to Singapore arising from these events. This will translate into higher hotel occupancy and room rates, increased patronage of entertainment and retail establishments, and greater tourist spending. It is hence reasonable for such benefiting establishments to provide an equitable contribution in the form of cess to defray part of the high costs of staging strategic tourism events. Sir, let me now go through the major amendments proposed in the Bill.”
“Mr Michael Palmer asked the Minister for Foreign Affairs (a) what is the status of negotiations between Malaysia and Singapore in respect of the Southern Ledge following the decision of the International Court of Justice on Pedra Branca and Middle Rocks; and (b) whether Singapore intends to claim territorial waters and an Exclusive Economic Zone around Pedra Branca.”
“The Member has asked a question like an economics professor. Let me try and address that in a more straightforward way. The bottomline is whether inflation in the global environment will affect Singapore, and the answer must be yes. Although the Singapore dollar has appreciated in the last two years or so by maybe about 23% against the US dollar, the fact remains that we cannot be fully insulated from global price trends for precisely the reason that the Member has mentioned. What we need to do, therefore, is to make sure that our businesses are competitive. The key element is productivity and we must sure that our businesses are supported in that effort to enhance productivity. The other element is to ensure that the more vulnerable segments of our population, such as our lowest 20th percentile which spends about a third of their income on food, have the assistance against any inflationary pressure. So, giving them targeted assistance makes a lot of sense, especially in an environment where food price inflation is quite substantial. DECISION OF INTERNATIONAL COURT OF JUSTICE ON PEDRA BRANCA'S CASE (Singapore Government's response to assertion by Malaysia) 14. Ms Indranee Rajah asked the Minister for Foreign Affairs what is the Government's response to the assertion by Malaysia that it will continue to look for further evidence on the Pedra Branca case, with a view to seeking a revision of the judgment of the International Court of Justice that Pedra Branca belongs to Singapore. 15.”
“Mr Speaker, Sir, the overall data on retail sector in the first half remains positive. So their overall performance of the sector is not a cause for alarm. But there are some components which may have some indifferent results maybe in the later part of the first half, for example, in the automotive sector and also, I think, in the watch and jewellery sector which are high-end, and you can expect some adjustment in spending efforts. Having said that, we have a slew of measures in place, in terms of what SPRING is able to do, and the Member would be very familiar with them, such as the Local Enterprise and Association Development (LEAD) Programme and also the Capability Development Programme as well as other more targeted efforts. And SPRING is involved in an effort where the discussion is ongoing with the retail sector as to how we can further enhance their competitiveness, not just during a more challenging time but in the long run to position Singapore as continuing to be an attractive place for shopping for Singaporeans and international tourists. So I would say that, in general, we have a fairly good dialogue with the retail sector and our agencies are working with them on an ongoing basis. As for risks when you go overseas, I think this is part of normal business risks which companies should rightly take and you ride the ups and downs as part of the business cycle. Dr Lily Neo (Jalan Besar): Mr Speaker, Sir, may I ask the Senior Minister of State, given that Singapore imports everything, will imported inflation outweigh the domestic income growth leading to negative purchasing power and how serious will this concern be, especially for the lower income?”
“During this period of economic volatility, it is important that our companies continue to upgrade their business capabilities and enhance their competitive edge. This will give our companies the requisite capacity to withstand the challenges of slower growth, as well as to capitalise on market opportunities, especially when growth recovers. We are committed to building the capacity of our companies. For example, SPRING's various programmes support the development of enterprise capabilities in the areas of automation, technology innovation, IT adoption and management development. It is also important for employees to proactively upgrade their skills, so as to ensure that they remain productive and relevant in a changing economy. Working with the Ministry of Manpower and the Workforce Development Agency, we will ensure that there are appropriate continuing education and training (CET) programmes for all our workers from the rank and file to professionals and managers to help them weather uncertainties in the economic environment.”
“Earlier in May, the Ministry of Trade and Industry estimated Singapore's GDP growth for this year at 4% to 6%. We will review this forecast in August, after we have compiled all relevant data for the first half of 2008. Turning to inflation, the other aspect of stagflation, since mid-2007, CPI inflation in Singapore has risen to 7.5% in May 2008. This is due largely to the sharp increases in global prices for food and fuel, which have also affected other countries. We expect some moderation in inflation in the second half of 2008, as the effects of the GST increase wash out and food prices peak. But inflation is not likely to return to previous levels any time soon. The Government has put in place several measures to dampen inflation and help Singaporeans cope with the higher costs of living. The stronger Singapore dollar has helped to reduce imported inflationary pressures arising from the higher prices of food and oil. At the same time, we must take care that wage growth does not exceed growth in productivity, so as not to set off a domestic wage-price inflationary spiral. The National Wages Council has recommended that companies grant sustainable wage increases that are commensurate with performance. As a price taker, Singapore cannot avoid the effects of global inflation. But we can aim to reduce the impact of higher inflation on Singaporeans, by using our limited resources, in a targeted way, to help those most affected by higher prices. The GST Offset Package and rebates on utilities and conservancy charges, will help to ease the impact of higher prices faced by Singaporeans. The Growth Dividends, with more going to the elderly and the needy, will also provide some relief. Miss Penny Low has asked for advice on employers and employees in this environment.”
“Sir, Dr Lily Neo has asked about stagflation and whether it has set into Singapore. Stagflation refers to a prolonged situation of stagnant economic activity coupled with high inflation. This happened in the mid-1970s when many of the OECD countries (notably the US and UK) experienced high inflation, sluggish economic growth, and rising unemployment. Mr Speaker, Sir, Singapore is not facing stagflation. Singapore's economy grew by 4.3% in the first half of this year, based on the latest GDP advance estimates, that is the number it stands. This is within our medium-term potential rate of growth of 4%-6%. Our job market remains healthy. In the first quarter of the year, more than 73,000 jobs were created, and unemployment remains low. The momentum of economic growth has recently slowed, and the global economy is expected to remain soft in the second half of 2008. In the US, there are significant vulnerabilities in the financial sector. And in the other major developed economies like Japan and Germany, they also expect to see further softening, as they are confronted with the challenges of high oil prices and weak consumer confidence. In Asia, on the other hand, economic growth has been fairly robust. China's GDP grew by 10.6% in the first quarter of this year, while India's GDP grew by 8.8%. But both China and India are facing high inflation and have started to take steps to contain inflationary pressures. These in turn could dampen growth. In Singapore, the strong pipeline of foreign investments and tourism projects that we have secured will also provide a certain level of support to the economy for the rest of this year and beyond. These new projects will give rise to new activity and help to create new jobs.”
“This provision is also found in the Acts of other statutory boards, such as ACRA, AVA, NEA, NPB, WDA, IPOS and SLA, which dispense information to the public. Clause 11 updates the borrowing powers of the EDB by specifying that the EDB may borrow from the Government, or, with the Minister’s approval, from such source as the Minister may direct. Clause 21 inserts a new First Schedule containing provisions relating to the constitution and proceedings of the Board. In particular, it allows the Chairman to authorise, in writing, any member of the Board to exercise any power or perform any function conferred on the Chairman by the Act. This provision is found in many other statutory board Acts, including SPRING, ACRA, HPB and AVA Acts. The First Schedule also requires the Board members to declare their interest in all instances where there may be a conflict of interest on any matter that is being discussed at a meeting of the Board. Mr Speaker, Sir, the proposed amendments will help the EDB to meet the increasing demands and challenges of today’s business and economic environment. They will enable the EDB to carry out its functions and duties effectively, and ensure the continued economic development and success of Singapore and the companies on our shores. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. – [Mr S Iswaran]. Bill considered in Committee; reported without amendment; read a Third time and passed. Column No : 2661 INFECTIOUS DISEASES (AMENDMENT) BILL Order for Second Reading read. 2.29 pm”
“Pursuant to the broader function, EDB is to formulate investment promotion policies and plans as well as promotional incentives and strategies. Clause 5 also allows the Minister to assign new functions to the EDB by legislating in the Gazette, if the need arises. Clause 12 updates the powers of the Board to deal with the broader functions that are proposed by clause 5. Removal of unnecessary restrictions in today’s operating environment The second set of amendments removes restrictions that hinder effective operation in today’s business environment. To allow the EDB to tap on the collective wisdom and experience of more Board members as the EDB explores new business areas, clause 4 of the Bill increases the number of EDB Board members from the current “not less than 4 and not more than 11” to “not less than 5 and not more than 15”. Clause 6 allows the EDB to appoint a temporary Chief Executive Officer, without the need to seek the approval of the Minister, during the absence, or incapacity owing to illness or otherwise, of the CEO. The Minister retains the power to remove the CEO by giving instructions to the Board. Clause 7 provides for the EDB to engage agents as it considers necessary for carrying out its functions and duties. Incorporation of provisions that are more comprehensive than those found in the current EDB Act The third set of amendments incorporates provisions commonly found in more recent statutory board Acts. For example, clause 9 of the Bill provides for the protection of the Board and its members, officers or employees against liability for errors or omissions in information supplied to the public if made in good faith and in the ordinary course of the discharge of duty.”
“Mr Speaker, Sir, I beg to move, “That the Bill be now read a Second time.” This Bill amends the EDB Act to provide the EDB with more flexibility to explore new businesses and industries as well as remove unnecessary restrictions that may hinder the EDB’s effective operation in today's rapidly changing world. In addition, this Bill incorporates provisions into the EDB Act that are commonly found in the more recent statutory board Acts. Let me now go through the major amendments proposed in the Bill. Flexibility to explore new businesses and industries The first set of amendments is meant to give EDB added flexibility to explore new businesses and industries. Currently, the term “business enterprise” is defined in the EDB Act as entities that the EDB deals with. As the EDB is tasked to explore new businesses and industries that they have not dealt with before, this definition of “business enterprise” is potentially restrictive. Hence, clause 2 defines a new term, “enterprise” as any entity incorporated, formed or established in Singapore or elsewhere, whether or not for profit, and howsoever owned or controlled. It includes a corporation, a sole proprietorship, a partnership, a joint venture, a trust, an association or a branch of an enterprise. Clauses 12 to 16 replace the term “business enterprise” with “enterprise” wherever it appears in the Act. Clause 5 updates and broadens the functions of the EDB. In particular, it tasks EDB to stimulate the growth, expansion and development of the Singapore economy in general and not just “Singapore as a total international business centre”, which is the existing statutory function.”
“Mr Speaker, Sir, the 90-day reserve is, as I have said earlier, a kind of a short-term plan and it will help us to manage any intermediate disruption. If we talk about a prolonged disruption in gas supply, then clearly our steam plants and our combined cycle plants, which can switch to diesel, will be our mainstay, so we continue to operate these plants using alternative fuels to sustain our electricity needs. But more important than that is our broader effort to diversify our energy sources. So energy is the key element in that, it is the key plank of our energy diversification strategy for the long term. What that means is beyond piped natural gas, we are able to get natural gas in a liquefied form from different parts of the world beyond our immediate geography. And beyond that, we have also kept the option open for other forms of fuel as part of Singapore's long term energy strategy. Column No : 2635 UPDATE ON THE ELDERSHIELD SCHEME 3. Mdm Halimah Yacob asked the Minister for Health if he will give an update on (a) the total number of people who are on the ElderShield scheme; (b) how many people have benefited from the scheme since its establishment; and (c) what was the total amount paid out under the scheme.”
“Mr Speaker, Sir, about 80% of Singapore's electricity is generated by gas turbines, fuelled by natural gas, the remainder is generated by steam plants using fuel oil as well as from burning of refuse in our waste incineration plants. Presently, 75% of our natural gas supply is piped from Indonesia while 25% is piped from Malaysia. I would like to assure the Member that we have the capacity to deal with any short-term disruption in the supply of natural gas. Our power generation companies are required to stockpile at least 90 days of fuel reserves. If our natural gas supply is disrupted for any reason, our gas turbines can continue to operate by switching to diesel. The generation companies can also burn fuel oil to generate electricity using steam plants. Over the medium to long term, our energy security will depend on our ability to diversify our energy sources. That is the first step. We will import liquefied natural gas to supplement our piped natural gas. We are building our first energy terminal, which is targeted to be operational in 2012 and we have just recently appointed BG Asia Pacific as Singapore's LNG aggregator, to import LNG from various parts of the world. With the advancement of new technologies, we are also not writing off other energy options in order to further diversify our energy sources. Er Lee Bee Wah (Ang Mo Kio): Should there be any disruption, long term, beyond 90 days, are we able to cope with it?”
“Sir, food, in general, is not under MTI but, as far as rice is concerned, I think Singaporeans are very intelligent consumers and they know the range of options available. Even for rice, there are different grades and they can just switch from the high-priced grades to the low-priced grades and continue to maintain your preferred carbohydrate content. In general, if they want to switch beyond that, I think the options are also available. We have not really embarked on any major preference changing exercise as of now but I think, in general, the market signals and what is available in terms of price and quantity should serve as a sufficient indication for Singaporeans to make educated choices. EMPLOYMENT AGENCIES OFFERING REBATES TO EMPLOYERS FOR EMPLOYING FOREIGN WORKERS 11. Mdm Halimah Yacob asked the Acting Minister for Manpower (a) whether it is legal for employers to receive rebates from employment agencies for employing foreign workers; (b) what is the impact of such practices on the foreign worker levy policy which is aimed at regulating the inflow of foreign workers; and (c) what measures will be taken to prevent foreign workers from being exploited under such rebate schemes. 12. Mr Baey Yam Keng asked the Acting Minister for Manpower (a) whether the reported practice of employment agencies offering rebates to attract employers to take in foreign workers is prevalent; and (b) how is the Ministry addressing this issue where the foreign workers appear to have been exploited. The Acting Minister for Manpower (Mr Gan Kim Yong): Mr Speaker, Sir, with your permission, I would like to take Question Nos. 11 and 12 together.”
“As far as profiteering is concerned, at MTI we remain open to any reports of profiteering. We have no reports of any profiteering or any anti-competitive behaviour by our rice importers. As I said earlier, they have been very responsible. They have continued their supply and they have asked for permission to be able to bring in more without the imposition of mandatory stockpiles. However, if Singaporeans in general see any evidence where they feel that there has been some anti-competitive behaviour, then they should make a report, whether it is to MTI or CASE, and we will take appropriate follow-up action.”
“Mr Speaker, Sir, as far as price increases are concerned, we can look at it at the international level and also at the domestic retail level. At the domestic retail level, which is probably most pertinent for Singaporeans, I can give a couple of examples. For a 10-kg bag of Thai fragrant rice – I am told the Royal Umbrella is one of the high-end brands – the price has gone up from January to April this year by about 10%-15% ($2). We can expect there will be some volatility and there will be some adjustments in future, but this is based on what the retailers tell us as of now. As far as the home-brand of NTUC FairPrice is concerned, the price has gone up by a similar order or magnitude, say, about 10% but a 5-kg bag of this rice will cost maybe about $4.50 today compared to under $4 before. These are some of the retail level prices. I am sure there are some variations across different types of supermarkets but this gives you a sense of what is happening. At the international level, when you look at the prices at which things are being traded, in fact, there have been very sharp spikes and these are due in part to specific countries going into the market and placing very large orders. For example, the Philippines has gone to the market to ask for tenders for up to half a million tons in one go and this has created a significant squeeze in the market. What is apparent is that supply is available but the prices have gone up significantly. To give one example of it, for white rice, I am told that in a recent bidding exercise that the Philippines asked for, the price has gone up to over US$1,000 per metric ton. To give you a reference point, compared to, say, early this year or late last year, this is at least a 50%-60% increase.”
“Our rice importers have been conducting their business responsibly and maintaining normal supplies to consumers, despite the volatility in global markets. There is no evidence or report of rice importers colluding to restrict supplies and drive up prices. In fact, the importers have requested to bring in more stock to meet increased demands from consumers. MTI is supportive of this move. MTI has responded to our rice importers’ request to allow additional imports of rice with more flexibility to their mandated stockpile requirements. By doing so, the Government aims to facilitate those who are keen to import beyond their normal quantities to meet market demand. This will also help ensure that Singapore has a slightly bigger buffer of rice than at present, so as to cushion us even more against any future supply shocks. It is not in the interest of rice importers to indulge in any form of anti-competitive behaviour. We have a competitive rice market with more than 30 importers. Any attempt by errant importers to withhold supply and increase prices will result in loss of customers and market share to other market players. Also, as a condition of their licence, rice importers are not allowed to engage, directly or indirectly, in price fixing or other unfair trade practices relating to the import or sale of rice. We view such anti-competitive behaviour very seriously, and will not hesitate to take action against any errant businesses. Er Lee Bee Wah (Ang Mo Kio): Sir, I would like to ask whether MTI monitors the price increase over the last few months and what is the percentage of increase and how do we prevent profiteering.”
“Sir, the global price of rice has risen substantially since the beginning of 2008. This is driven by a multitude of short and long-term factors such as increasing global demand, adverse weather affecting crops, falling yields of farmland and underinvestment in farming technologies in rice producing countries. Some rice producers like Vietnam and India have reduced or curbed rice exports to ameliorate the impact on domestic prices. However, these export restrictions are primarily on white rice and not the premium rice that we mainly consume in Singapore. As such, these moves have not disrupted our rice supply. More importantly, our rice merchants are still receiving their rice orders and there is no curtailment in import of rice. Thailand, which is a major source of rice for us, has not limited its exports and has pledged to continue meeting global orders. Its rice harvest last year was healthy, leading to a significant 72% increase in its exports in the first three months of this year. Singapore’s demand for rice is also very small compared to total global rice production. For example, we account for only 2% of Thailand’s total rice exports. Over the years, Singapore’s rice imports have also been well-diversified across several countries which help to mitigate the effects of any supply disruptions in a particular source country. Given the market volatility and global developments, MTI is monitoring the situation closely in consultation with other agencies like MND, AVA, MFA and IES as well as market players. Mdm Cynthia Phua’s Question has a more domestic focus. MTI has been monitoring the rice market closely.”
“Sir, I did not mean to overstate the case for social enterprises and tourism, but just to illustrate the possibilities. But having said that, I think there are possibilities as one or two anecdotal evidence already suggest. I would say that rather than set up a task force or a committee which really goes against the grain of this kind of venture, I think there are specific examples and we can see how, working together with STB and relevant agencies, we can facilitate that. That might be a more productive approach, at least at the outset.”
“Just to clarify, we are not diversifying our fuel sources so that we can lower cost. It is for security reasons – energy security – because your diversified sources may still be just as expensive. But having said that, his key question is: how is our power sector liberalisation, and in particular competition, going? I think it is going well, we have an open system, we invite interested players to come in and put in proposals to EMA, and then EMA will evaluate and license accordingly. As for Island Power, they have made their decision earlier and we believe that they are now making some commercial assessment of the situation because some events have moved and because of the altered circumstances, they have to reassess their decision, and it is really up to Island Power to make clear what their plans are.”
“Sir, I thank Ms Olsen for the clarification sought. MTI is really not in the business of trying to create a market for solar power. We look at it as we create economic activity and invite more investments and economic activities to Singapore, and the demand for energy is a consequence of that effort. We then seek to meet that demand by diversifying our sources and making sure that we have adequate supply. So solar energy is really just one part of that. Today, as you have already heard, a significant portion of our energy needs are met through piped natural gas and, eventually, liquefied natural gas. We also use fuel oils at peaks, and solar and other sources would become additions to that array. The other question is on reflection of priorities, as evidenced by subsidies and so on. I think Ms Olsen is going back to her point about why we cannot subsidise or do feed-in-tariffs. There is a fundamental difference. When we talk about energy subsidies, energy is a very basic commodity that cuts through the entire economy. The question to be asked is what do we gain by subsidising solar power. This is because the true cost of solar power is indeed higher. If the intention is to promote the industry, then the right strategy is to help the industry get to a position of competitiveness vis-a-vis existing supplies of energy. That is why we are investing in R&D and other technology measures in order to help solar reach that stage, as indeed any other sector that we are able to support. But to subsidise is to distort the market in terms of production and consumption decisions, and we do not think that is the right thing to do.”
“Sir, let me conclude by saying that I think our R&D strategy as well as our policies on tourism and energy continue to be robust and position Singapore well for the future. SME Development and Entrepreneurship”
“There are many examples of SMEs who have benefited from the "Growing Enterprises with Technology Upgrade", the GET-Up scheme, and I can elaborate on that if they want later. But let me just stress that, in particular, 166 A*STAR researchers have joined the ranks of 116 SMEs to help jump-start and strengthen their in-house R&D capabilities. This flow of talent from the institutes to the SMEs remains one of the most practical forms of assistance that SMEs can benefit from. A*STAR is also committed to bringing technologies to market. There are many examples of these. But we should not measure the value of the research that is done in A*STAR purely by the value of the divestments or the spin-offs. As I have elaborated, it is a manpower issue, it is the benefits that accrue across the entire economy, and we should look at the entire spectrum in forming a judgment on an endeavour which is long term in nature. Let me conclude by saying that to further strengthen Exploit's efforts in bringing Intellectual Property (IP), we will launch a new programme called Exploit-IP, which will promote international IP partnerships to benefit Singapore businesses – Miss Penny Low's point about collaborative R&D. And Exploit Technologies will also be launching the Technology Transfer Network this year. The Network will bring together Exploit and the Institutes of Higher Learning to facilitate the transfer of IP. In terms of KPIs, let me just say that our R&D expenditure as a percentage of GDP has gone up from 1.9% to 2.4%. The number of research scientists and engineers per 10,000 of our labour force has increased from 66 in 2000 to 87 in 2006. And in terms of patents, between 2000 and 2006, patent applications increased by two-and-a-half times to 2036 in 2006.”
“Through these scholarship programmes, we hand pick the best local talent, and groom them to become future scientific leaders for Singapore. To date, we have over 700 scholars in the pipeline, who are studying at leading universities around the world. And our goal, as the Minister has said, is to train 1,000 by the year 2015. These scholars will also, beyond their PhD degrees, be having attachments to some of the top research scientists from around the world. Mr Low has also asked whether we have been sufficiently proactive in cultivating local talents. I want to inform the House that more than 85% of the A*STAR scholarships awarded are to Singaporeans. Non-Singaporeans who take up A*STAR scholarships are also expected to take up citizenship during the course of their studies. I would like to assure Members of the House that bringing in foreign research talent is an integral part of nurturing and developing our own local pool of talent, and hence these should be viewed as complementary and not conflicting strategies. Going forward, to harness the economic value of our R&D investments, commercialisation will be a key focus for A*STAR to make our research dollars count. We will do this by strengthening the links with industry and by bringing technologies that are developed through R&D to the market. Strong linkages between research institutes and industry clusters will ensure that the discoveries in our laboratories are relevant to the needs of industry. From April to December last year, the Biomedical Research Council and Science and Engineering Research Council (SERC) initiated 171 new R&D collaborations with industries – notably, the SERC Aerospace programme. Mr Low and Miss Penny Low have asked if our local businesses benefit from our R&D strategies.”
“But as we have stressed many times, first, on the quantifiable aspects of this project itself, because it is the first of its kind for Singapore, we really need to have the experience of year one before we can pin down the numbers in a more definitive manner. But we share his optimism that the numbers are likely to be positive. At the same time, there are many intangible spin-offs and benefits that will percolate across the entire economy – whether it is benefit to our SMEs and other companies that we have already talked about, or in terms of the branding and positioning for Singapore and also for our wealth management industry, eg, the opportunity to create new entertainment and networking events built around the Formula 1 for their high network clients. So there is a wide range of quantifiable and non-quantifiable benefits. And our assessment is, overall, this should be a positive venture for Singapore. The race aside, STB is working closely with partner agencies, industry stakeholders and community organisations on a calendar of events around the race period. These include the inaugural Singapore River Festival, the Singapore Biennale and the Singapore Motorshow. The events also extend to the heartlands, the Go-Karting, and so on. In all, we expect this to be a successful event. On R&D, my Minister has already outlined our efforts to develop a knowledge-based economy. The A*STAR and the S&T2010 plan have focused on fostering world-class scientific research and nurturing R&D talent. Mr Low Thia Khiang has asked about our efforts to groom local research talent. A*STAR has been investing in building local talent since 2001 through the National Science Scholarships and A*STAR Graduate Scholarships.”
“The increase in MICE events also gives home-grown companies, like East West Travellers and Pico Art International, a chance to garner greater exposure on the international stage in the MICE industry. Social enterprises, a pet project of Ms Low, too have benefited. I will just give one example. It is The Singapore Shawl, a social enterprise that provides employment for retrenched women, especially those who were hit by the 2003 economic downturn. The shawls have hand-made motifs that reflect life in the Garden City, from the flora and fauna to our local cultures. These shawls are regularly presented to foreign dignitaries and visitors to Singapore. So there are spin-offs in all sectors for the SMEs as well as the social sector. Mr Teo Ser Luck has asked about the anticipated visitorship for the F1 race and what kind of participation we can expect from the locals. F1 ticket sales have been brisk across all tiers of pricing. The bulk of these tickets have already been sold. It is quite remarkable considering the race is still six to seven months away. The race organisers are also planning to make more tickets available, and they will be in the pipeline soon. All in all, we are expecting well over 80,000 spectators for the event. Overseas demand for the event has been very strong, and we expect tourists to make up at least 30-40% of all ticket holders. Mr Teo has also asked about the overall economic value of this project. When we embarked on this, we expect tourism receipts conservatively to be boosted by about $100 million a year. That is the quantifiable component.”
“sg), a key one-stop information gateway for potential job seekers. STB will intensify outreach efforts through roadshows and career fairs. MTI and STB are working very closely with the industry players to get their feedback on how the industry, in particular, from an HR perspective, is preparing itself for the challenges for the next two years and we will be responsive to the market. 1.15 pm Our event calendar for the next few years will see many top-tier international events, the F1, and the super yachts competing in the Volvo Ocean Race will stop over in January next year. Singapore will also be hosting happily the inaugural Youth Olympic Games in August 2010. All these events will add buzz and activity to Singapore, and attract tens of thousands of visitors who will add significant value to the whole economy, particularly the high-yield tourists. This, we expect, will create something of the order of 50,000-60,000 new jobs. Miss Penny Low would be pleased to note that we expect our SMEs to benefit significantly from these developments. The benefits are across the entire value chain of the life cycle of these projects. From the development phase, whether it is Marina Bay Sands or Resorts World, engaging many of our local companies for the development of the infrastructure to when they move into the operational phase, many would be suppliers or outsource service providers or working closely with these operators providing certain services. Beyond that, the surge in visitor arrivals itself will benefit not only operators of local attractions, like DuckTours, Mint Museum of Toys and Singapore River Cruises, but also smaller scale boutique hotels. F&B enclaves, like Emerald Hill and Tanglin Village, are increasingly attracting tourists as much as locals.”
“More recently, the New York Times published a feature article on what a visitor could do in Singapore around the clock. And Time Magazine in May last year described it as “Singapore’s New Look”. Miss Penny Low has asked for an update on our plans going forward. Well, the agenda is quite full and we will continue with our efforts to position Singapore as a compelling leisure and business destination, and several major projects have been launched or announced that will enhance our tourism landscape. These include the development of the International Cruise Terminal at Marina South, which should receive its guests by 2010, and the Gardens by the Bay, which will open in 2011. We will also develop Mandai into a nature based theme destination, and this is expected to be completed some time after 2010. In addition, we will persevere with our development efforts to ensure that our tourism industry is able to serve the increasing number of visitors. As many Members have observed, manpower development, and Ms Penny Low stressed this, is key. The TOurism TALent (TOTAL) Plan was launched in October last year, where $360 million was committed to train 74,000 tourism industry workers. And, yes, to date, we have about 4,300 enrolments. So, can we do better? The answer is, yes. I would urge all Members to pass the word around and help promote this. It is a growing sector with a lot of opportunities for many of our Singaporeans to take advantage of. In addition, STB has committed $30 million to the Training Industry Professionals in Tourism (TIP-iT) scheme, to help industry partners invest more in training and build capabilities. As part of the tourism careers campaign, STB launched the tourism careers portal (www.tourismcareers.”
“And given the global nature of energy issues, we have decided to set up an International Advisory Panel on Energy which I will chair. This panel will comprise a group of thought-leaders, eminent persons and energy experts from around the world, and will meet for the first time in November this year. The meeting of this International Advisory Panel will be held in conjunction with our first ever International Energy Week. The week will include a Singapore Energy Conference and other events that will allow policy makers, academics and industry players to come together to network, and spearhead new initiatives. In doing so, we will develop Singapore as a thought-leader in the region on energy issues. And through this process, we will constantly re-examine our policies, develop innovative approaches, and identify new opportunities for Singapore, as Members have suggested. Let me now turn to tourism, which is another key economic driver. The sector has seen strong growth. 2007 was a sterling year, visitor arrivals hit a record 10.3 million which is up 5.4% from the previous year and $13.8 billion in tourism receipts were generated in 2007, exceeding our target as well. For 2008, STB has set a target of $15.5 billion in tourism receipts, that is about a 12% year-on-year increase and 10.8 million in visitor arrivals, 5% year-on-year increase. We are on track to realising our Tourism 2015 targets of 17 million visitor arrivals and $30 billion in tourism receipts. And it is particularly encouraging that the international media has also noticed the transformation that is taking place in Singapore. In its October 2007 issue, the F1 Racing Magazine called Singapore the “Monaco of the East”.”
“In the area of test-bedding, EDB has also launched a $17 million Clean Energy Research and Test-bedding platform (CERT) for solar photovoltaic technologies. A*STAR has set up the Singapore Initiative in New Energy Technologies (SINERGY) Centre to develop alternative energy technologies. Just a few weeks ago, the Solar Energy Research Institute of Singapore (SERIS), which Members have observed, was also launched. Clearly the energy sector is quite energetic in coming out with acronyms as well. With an expected investment of $130 million over five years, SERIS is slated to be one of the most comprehensive solar research centres in Asia and it will enable NUS and Singapore to be a world leader in solar R&D. Our recent efforts to grow the clean energy industry have yielded good results. We have heard about the success with Renewable Energy Corporation and also Nestle Oil in its second generation bio-diesel plant. Several other clean energy companies have also chosen to set up their regional headquarters here, including Solarworld, Conergy and Solar-Fabrik. Several companies have also chosen to set up R&D centres including Bosch and Oerlikon Solar. And we will continue with our efforts to attract such companies across the entire spectrum of clean energy solutions. Notwithstanding the progress on several fronts, I fully agree with Mr Edwin Khew, Ms Eunice Olsen and Mr Liang that we can do more to grow the clean energy sector, to develop more innovative solutions on energy, as well as to mitigate the risks of high oil prices and to ensure Singapore’s energy security. I thank Members for their comments and suggestions in this regard. Going forward, we need to keep an eye on the horizon in view of the ever changing international landscape.”
“So what we are effectively saying is we have to subsidise the producer of this renewable energy, say, solar, and that subsidy will then be smeared and passed on to all consumers of energy so that we can have solar power generation. That is not an optimal strategy because what we are effectively doing is encouraging solar and the question can be asked: why solar? It can be bio-energy, bio-diesel, and so on. It can be many sources. It does not have to be just one. Then the question is: why just in the energy industry? Why do we not subsidise others as well? So, we have to be very clear about this, and keep to our principles. Where are we allocating our resources? It is in R&D and test-bedding, and this scenario, I think, will resonate with the Members because this is key to developing technologies that will bring down the cost of generating alternative energies. We also believe that this approach will give better returns in the long run. If solar energy is at grid parity or very close to grid parity, there is no need to talk about Feed-in-Tariffs anymore. Our efforts in R&D will provide an unprecedented set of opportunities for us to develop our capabilities and talent and allow us to develop technologies that can be marketed to the world. Our unique advantage is our compactness which provides an ideal platform for early test-bedding of such ideas in an integrated manner that larger countries cannot. Our consumers will also benefit as we will be able to pioneer the use of many of such solutions. Our strong support for R&D and test-bedding is evident in our recent initiatives. The Research, Innovation and Enterprise Council has allocated $170 million over the next five years for solar R&D.”
“In recent years, international concerns over climate change and environmental sustainability have spurred a greater worldwide impetus for the development and adoption of clean energy technologies. Clean Edge, a leading report on the industry, projects that the global market for clean energy technologies will quadruple to over US$226 billion in 2016 compared to US$55 billion in 2006. This is a significant opportunity. As it stands, renewable energies such as solar are still, as the Member has noted, much more expensive than traditional fossil fuel-based energy. If we are to be consistent with our basic principles, we should not adopt measures which subsidise specific renewable energy types. And one example is the Feed-in-Tariffs that both Mr Edwin Khew and Ms Eunice Olsen have talked about. For the benefit of other Members, just to elaborate, what does the Feed-in-Tariffs entail? It means the renewable energy plants are given a guaranteed contract, an off-take for the energy they produced over a substantial period of time, over 15 to 20 years, and the price, if it is to be meaningful, has to be above the market price because today, the cost of producing such energy is significantly above market price. The relativities, if you talk to different people, vary and because the price of oil is moving and changing, something of the order of magnitude today, compared to our pool price of, say, about 22 cents per kilowatt, and if you are using solar energy, you are looking at about two to three times the cost, perhaps a bit lower because oil price has gone up now. But that is the order of magnitude.”