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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“We will announce the outcome of this RFP in the second quarter of this year. In diversifying our sources of energy we have also taken steps to encourage the adoption of renewables, such as solar energy. These include reducing cost and facilitating grid connection, the point that Mr Edwin Khew was talking about. In June 2007, the Energy Market Company removed the registration fee of $5,000 for market participation that was previously imposed on solar installations that export to the grid. The wholesale licence fee by EMA has also been reduced from $1,000 to $100. Among other outreach and educational efforts, EMA has also published a handbook to provide information on the installation and connection of photovoltaic systems to the power grid. So we are doing our part in terms of reducing Government charges, those sorts of overheads, but we are eschewing subsidies that might distort. In addition, I am pleased to announce that the Government will be setting aside a further $20 million for the Solar Capability Scheme. This is a grant-based incentive to spur more innovative approaches and capability development, in the architecture, design and system integration of solar panels as part of green buildings. The fund will go towards offsetting part of the installation cost of solar panels for new buildings which have attained a certain level of Green Mark standard. EDB will be releasing more information on the scheme in due course. Apart from providing a key resource, the energy sector also presents significant economic opportunities. The energy sector is already important to our economy. In 2006, the oil industry contributed 4.5% to Singapore's GDP. We will continue to build on our lead in this field and further develop a comprehensive energy cluster in Singapore.”
“We are currently in the final stages of liberalising the gas market and that will further enhance competition in our energy sector. Energy security has re-emerged as a growing concern for many countries and not just Singapore. Mr Liang has asked about the threats other than high prices. Amidst intensifying global competition for resources, the global energy supply chain is vulnerable to political risk and other unforeseen circumstances. Our response has to be on two fronts. On the supply side, we need to diversify our sources of energy and continuously explore new fuel and energy technologies, the point that several Members have spoken out. The second is on the demand side, we need to be more efficient and innovative in our use of energy. The Minister for the Environment and Water Resources has outlined our efforts to promote energy efficiency last Friday and I like to elaborate on our efforts to diversify our sources of energy. Today, about three quarters of our electricity are generated using piped natural gas. We have decided to import liquefied natural gas to diversify our supplies of fuel rendering us less prone to possible disruptions of supply. And I am pleased to inform Members that Singapore's efforts to import energy are on track. In September last year, we designated Power Gas as the LNG terminal operator. It is a natural extension of PowerGas' role as the owner and operator of the gas pipeline network in Singapore and it will ensure integration of the existing gas infrastructure and the energy terminal. EMA is also in the final stages of an RFP process to select the LNG "aggregator". The "aggregator" will consolidate demand from end users and import liquefied natural gas into Singapore.”
“Because this will ensure that we continue to have the resources to secure our energy supply and, at the same time, keep our environment clean, and undertake R&D to develop new and more innovative solutions. 1.00 pm As a small and open economy that depends fully on imports for our energy needs, Singapore is a price taker. Ms Eunice Olsen has heard this argument before but I think it bears repeating. Our basic policy tenet is that energy cost should be borne in full by end users. Individuals and industries should adjust their consumption of energy according to its true cost as reflected in its price. We do not subsidise the cost of energy because it will dampen price signals, and create the incentive to over-consume. There are many examples around us that bear that point out. Moreover, as all of us know subsidies are not sustainable in the long run, our best course of action is to encourage competition and ensure that markets work. Competition will assert downward pressure on prices and serve to benefit consumers. This approach is not conservative, as Ms Eunice Olsen characterises it, but I think prudent, because we want to make sure as a small economy we put in place systems that are able to withstand these kinds of global pressures and subsidies cannot withstand such pressures. To illustrate the benefits of competition, let me give you an example. In 2001, EMA introduced competition in the electricity market. Both businesses and households have benefited. Over the past seven years, as we all know, the price of fuel oil has doubled, in fact, more than doubled. But electricity tariffs for low tension users, which are mainly our households, has increased by only 14%, and this is despite the fact that fuel cost accounts for 55% of the cost of electricity generation.”
“Sir, Minister Lim has elaborated on our overall strategy for growing the Singapore economy. While we have done well in recent years, we must continue to pursue new growth areas and opportunities. As several Members have pointed out, we must ascend the value chain into higher value-added activities in all sectors, including the energy, tourism and R&D. Indeed, this is the most robust strategy to ensure sustained growth, create good quality jobs for Singaporeans, and help us face the many challenges that lie ahead for our economy. Energy is a critical resource for any economy, including ours. Our aim is to ensure that we have secure energy supplies at competitive prices whilst we stay true and sensitive to our environment. The simple truth is that we may have now entered, perhaps quite irreversibly, an era of higher global energy prices, a structural shift, as Mr Liang Eng Hwa puts it. Global demand for energy will continue to increase, and the supply constraints are self-evident. At last year's COS, I spoke on the formation of an inter-agency Energy Policy Group chaired by the Ministry of Trade and Industry. Since then, we have launched our first National Energy Policy Report. The title of this report – “Energy For Growth” – succinctly articulates the Government's thinking on the subject and highlights the triangle of tensions that we face between economic competitiveness, environmental sustainability and energy security. There will be challenges and trade-offs, and the solutions are by no means simple. Given the uncertain global energy outlook, economic growth is our best response. Why?”
“GENEVA CONVENTIONS (AMENDMENT) BILL Order for Second Reading read. 3.10 pm”
“For instance, in the semiconductor industry, new metrology tools and techniques are needed to accurately perform critical measurements, as new materials, processes and device structures are developed. In the area of nanotechnology, new metrology tools have to be developed to enable precise fabrication at nanoscale levels. Consistency with international practice Third, the positioning of the NMC within A*STAR will align us with international practice. Leading metrology centres around the world have adopted a strong R&D focus and are often integrated with national research agencies. The National Institute of Standards and Technology (NIST) in the United States is a prime example of a world-leading research-driven metrology centre. NIST researchers continually raise the level of measurement science and technology, making possible the highly precise engineering and manufacturing capabilities required for today's most advanced technologies. The proposed transfer will not affect SPRING's role as the national standards, accreditation and conformance body. These remain relevant to SPRING's mission to help our enterprises stay competitive in a dynamic market environment. Mr Speaker, Sir, measurement science and technology are essential elements in facilitating a knowledge-based economy. This Bill allows A*STAR to establish and support an advanced national metrology infrastructure, which will serve to strengthen Singapore's competitive position in the global market. 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.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, this Bill transfers the functions and powers relating to scientific metrology from SPRING to A*STAR. Metrology, Members may be interested to know, is the science of making accurate and reliable measurements. It is critical for industrial development, trade transactions and scientific research. Currently, SPRING undertakes all areas of metrology through the National Metrology Centre (NMC). These include standardisation, accreditation, certification and conformance as well as scientific metrology. NMC, therefore, maintains national measurement standards and develops measurement technology to administer these standards. Reason for amendments Sir, let me elaborate on why we propose to transfer these functions to A*STAR. Harnessing synergy between metrology and R&D First, this transfer will allow Singapore to harness the synergy between metrology and research and development (R&D). New technological advances will increase the demands for research on metrology. As industries need more complex and exacting requirements, measurement ranges need to have lower thresholds of uncertainty or error. Emerging fields, such as nanotechnology, MEMS and biomedical sciences, will also need highly sensitive measurement techniques. Cutting-edge metrology will require sustained scientific research. And positioning the NMC within A*STAR will allow for such collaboration and harness this synergy between metrology and scientific R&D. Alignment with industry's advanced technological needs Second, the transfer will enable us to better meet industry's advanced technological needs.”
“Outreach programme Third, to ensure that the industries are familiar with the expanded export control regime, MTI and its agencies have conducted many outreach sessions since the beginning of this year. We have to make use of these sessions to enhance the industry's familiarity with the system and changes, and to allay any concerns that they might have regarding the expanded export control list. A series of courses on the new controls has also been launched by the Singapore Customs to educate the affected industries. Mr Deputy Speaker, Sir, we should do our part to curb the proliferation of dangerous weapons to safeguard regional and local security. The proposed Bill profiles Singapore as a secure link in the global chain of anti-terrorism measures, and upholds our reputation as a responsible and secure trading and transhipment hub. The enhanced controls are in our national, economic and security interests. 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.”
“Let me assure the House that these concerns have been studied carefully and we will ensure that additional measures taken do not unduly encumber or impede trade. Enhanced permit regime First, to mitigate the possible impact on legitimate trade in strategic goods, Singapore Customs has introduced an enhanced permit regime scheme known as the Strategic Trade Scheme (STS) since January 2007. The scheme seeks to promote effective internal export control compliance, and help traders in their declaration procedures involving transactions of strategic goods for legitimate end-use. Generally, companies with good internal export control compliance programme can enjoy more facilitative declaration procedures involving transactions of strategic goods for non-WMD-related end-use. For instance, such companies would be able to make use of a one-time permit approval for multiple shipments of particular products. Transhipment and transit in/through the Free Trade Zones Second, to mitigate the impact on the large volume of transhipment with short turnaround time, permit requirements for the new list will apply only to the air transhipment and transit cargoes that remain in the Free Trade Zones for more than 21 days and, for sea transhipment and transit cargoes, for more than 45 days. For such goods, traders would only need to submit shipment documentation as and when requested by the authorities. However, to maintain the effectiveness of our export control system, this arrangement will not apply to certain goods that are currently controlled for transhipment, such as military goods, nuclear-related goods, chemical and biological agents and also goods that are known or suspected to be used for WMD purposes.”
“Application of the control list to all transactions Second, for strategic goods that are newly added to the expanded control list, the Bill requires traders to apply for a permit before they are allowed to export, tranship or bring into transit these goods. Clause 4 applies the control list to all exports, transhipments, transits and intangible transfers of strategic goods and their related technology. At present, we require traders to apply for a permit if they tranship a subset of products under the control list, such as military goods, nuclear-related goods, chemical and biological agents. Also, currently, in the case of goods in transit, a permit is required only if the goods are intended for a WMD-related activity. Listing of goods subject to brokering controls Third, we will move the list of goods subject to brokering controls from the Act to a subsidiary legislation, so that this list can be amended with greater flexibility, to be consistent with the export control list. Implementation measures These are the key features of the Bill. Mr Deputy Speaker, Sir, in drafting the Bill, we have paid special attention to minimising the potential impact on trade, as it might affect Singapore's competitiveness vis-a-vis other ports in the region. Hence, over the last year, we have conducted extensive consultations with many companies and key industries that might be affected by this expanded control list. Companies and industries in Singapore generally understand and support the need to expand our export control regime to enhance trade security. They are also cognisant of the likely impact and have asked for the expanded control to be implemented in a cost efficient and sensible way so as not to erode their competitiveness.”
“It is in Singapore's interest to tighten our present regime and adopt the control list covered under the four multilateral export control regimes - namely, the Wassenaar Arrangement, Missile Technology Control Regime, Australia Group and Nuclear Suppliers Group. Sir, my Ministry is, therefore, proposing to amend the Strategic Goods (Control) Act to keep our export control system updated and aligned with the international non-proliferation regimes. Since 2006, as part of this review of our export control system, Singapore Customs and other agencies have conducted extensive consultations with various industry groups that may be potentially affected. An Inter-Ministry Committee, comprising MFA, MTI, Singapore Customs and other agencies, has studied these concerns very carefully before coming up with a set of measures that would tighten our export control regime, yet minimising the impact on trade. Expanding export control list Let me now outline the key features of the Bill. First, the Bill will expand the list of controlled items, as listed under the Strategic Goods (Control) Act. Currently, the control list comprises about one-third of the items under the four international export control regimes. The newly prescribed list will cover all goods under these four export control regimes. These control regimes are reviewed annually, and changes to their lists are expected. Clause 3 empowers the Minister to prescribe military or dual-use goods as strategic goods, and military or dual-use technology as strategic goods technology, for the purposes of the Act. For greater efficiency and responsiveness in the updating of our list, we propose to move the export control list from the Act to a subsidiary legislation.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Overview of the Strategic Goods (Control) Act Sir, in 2002, in response to the international efforts to fight terrorism and curb the illicit trafficking of weapons of mass destruction, my Ministry announced that an export control system would be implemented to regulate the trade in strategic goods and their related technology. At that time, we were mindful that an overly stringent system might cause our traders to incur additional cost and time, and could potentially have the adverse effect of diverting legitimate trade. As a trade-dependent nation, it was, therefore, important to put in place an export control system that would enable Singapore to fulfil her obligations in preventing the proliferation of WMD-related items, without impeding normal legitimate trade. The Strategic Goods (Control) Act was subsequently passed and implemented in 2003. It has served us well over the past few years and traders have generally become more familiar with our export control system. Reason for amendments Why then is there a need to review our export control system? Sir, the possibility of terrorists using WMDs remains a real threat. The United Nations Security Council (UNSC)'s recent sanctions on Iran and North Korea underscore international concerns over nuclear proliferation and efforts to counter the proliferation of WMDs. The key to maintaining peace and winning this fight against terrorism is in part to ensure that sensitive, strategic goods are sent to legitimate users and do not fall into the wrong hands. As a responsible transhipment hub, we should do our part for global security by implementing safeguards to curb the illicit movement of such goods.”
“Thirdly, schools organise sports day, carnivals and inter-class and inter-house competitions on a yearly basis. Taken together, these various means provide our students with the opportunities to be involved in sports on a regular basis. Nonetheless, schools are actively looking into ways to expand the CCA sports programme to encourage broader participation in sports for pupils in the lower primary. CCA sports will be promoted vigorously to give more opportunities for pupils from the primary level upwards to experience and enjoy sporting activities.”
“Mdm Cynthia Phua asked the Minister for Education (a) for the last five years, what is the breakdown of the number of students in Primary 4, 5 and 6 as a percentage of each year's cohort who are taking up sports as part of their CCA; and (b) what opportunities are given to those who are not in a sports CCA to get a taste of sports. The Senior Parliamentary Secretary to the Minister for Education (Mr Masagos Zulkifli B M M) (for the Minister for Education): Mr Speaker, Sir, the proportion of P4-6 students who are taking up sports CCAs increased from 29% in 2004 to 33% in 2006. Pupils who are not in sports CCAs are introduced to sports in other ways. Firstly, sports and games skills are taught during PE lessons. Teachers introduce students to three categories of sports and games, namely: territorial games (like basketball, soccer and floorball), net/wall games (like badminton) and striking and fielding games (like softball). Schools select sports and games from each category to teach their pupils. Secondly, schools have introduced Learn-to-Play schemes to expose more students to sports and games. From this year, MOE, with the Singapore Sports Council (SSC), introduced the Sports Education Programme (SEP) which aims at providing opportunities for students who are not in CCA sports to be involved in sports through the 'Learn-to-Play' sports scheme. Besides the usual sports and games like soccer, netball and basketball, schools have also introduced in-line skating, rockwall climbing, floorball and in-line hockey. SEP, therefore, provides students with wider exposure and opportunities to develop an interest in sports. Given that it has just started this year, the take-up rate has been encouraging as 155 of the 175 primary schools (89%) have signed up for SEP.”
“Mr Speaker, Sir, as far as the grant is concerned, the legal entity is the UNSW Asia. But as the Member has pointed out, the negotiation is now with the parent, UNSW, and the process is now one of engaging them in a discussion and negotiation to settle the final terms. As far as the second point is concerned, on the impact on Singapore's reputation, I think in a way this is no different from any other investments we have attracted to Singapore. The implicit presumption in the Member's point is that somehow the employment situation in this particular instance has a wider implication on Singapore. All these institutions that we attract, that EDB courts to come in are usually very reputable and of international standing. They have a vested interest to protect their reputation, and that includes ensuring that they comply with the laws of the land, in terms of employment legislation and treating their staff fairly. From public accounts and reports in the media, it would appear that that seems to be the nature of the engagement between the parties concerned. EDB rightly confines itself to what is really its remit, to ensure that the parties we attract to Singapore comply with our laws and that means all laws, including our labour laws, and then we leave it to the businesses to work it out. Whether they are university professors or engineers and wafer fabrication plants or indeed any other foreign talent or workers coming into Singapore, ultimately, their contracts would bind their obligations. PRIMARY SCHOOL STUDENTS (Sports as a co-curricular activity) 11.”
“I do not mean that 28% of that total figure is US sub-prime mortgages but 28% of their exposure comprises CDOs which contain some US sub-prime mortgages. The local banks' exposure to US sub-prime mortgages is therefore small in relation to their capital base. Even if we take the total value of these CDOs that they have exposure to, which contain some US sub-prime mortgages, the amount would be about 1% of the banks' capital base. However, the affected CDOs are in fact well rated as they comprise mainly investment grade assets, not sub-prime assets. One of the local banks, DBS Bank, has also stated that it has a contingent line of liquidity support to a legal vehicle holding CDOs and that this facility has since been drawn upon. It has also stated that the vehicle does not have underlying assets comprising US sub-prime mortgages. While the CDO portfolios of our local asset management companies contain some US sub-prime mortgages, these are managed on behalf of their clients, who are mainly institutional investors. The investment risks are borne solely by the latter, with no legal recourse to the companies. Some of our local insurance companies have also invested in CDOs, but the amounts account for a very small proportion of their total assets. The local financial institutions are continuing to monitor the situation and keep the MAS posted of their exposures.”
“Mr Speaker, if I knew what the Federal Reserve Bank is going to do tomorrow, I will be a very rich man. Let me just say this. I think whatever the Federal Reserve Bank does, the most important thing for us in Singapore is to be very clear of the fact that we have to be vigilant and be ready to take the necessary steps in the event that some untoward incidents occur because we are a very open economy. But it does not really help our cause at this stage to be unduly concerned or alarmed. We are monitoring the situation. MAS is on top of it as well. I think we need to just maintain that level of vigilance and readiness to respond. UNITED STATES SUB-PRIME MORTGAGE (Exposure of local financial institutions) 4. Dr Lily Neo asked the Senior Minister what is the extent, if any, of our local financial institutions being exposed to the United States sub-prime mortgages and, if so, what is this amount and how much write-offs of these loans are estimated. The Minister for Education and Second Minister for Finance (Mr Tharman Shanmugaratnam) (for the Senior Minister): Sir, Dr Neo has asked about the exposure of our local financial institutions to the US sub-prime mortgages, and what the write-offs of these loans are likely to be. Our local financial institutions do not offer mortgages to sub-prime customers anywhere. They do, however, have investments in collateralised debt obligations (CDOs) that contain some US sub-prime mortgages. CDOs are essentially debt instruments that are backed by financial assets, which could include loans and bonds sourced from various jurisdictions. The local banks have publicly disclosed that their total investment in CDOs amounts to S$2.3 billion, of which 28% contain some US sub-prime mortgages.”
“Mr Speaker, Sir, Dr Neo has asked what is the magnitude of the problem. I think that, in itself, is a matter of much research and speculation in the market. The point to register is really that if, in fact, the sub-prime mortgage problem is not well managed, then it can impact us in two ways. One is confidence in financial markets and that will have its own repercussions to the financial system to which we will be exposed. And the second is through its impact on the real economy, through credit squeeze and other effects. Both of these can have significant impact on us, although we are mitigated to some extent through the diversification of our economy. Quantifying the impact is quite a difficult task. I would say that no one really has hazarded a guess as to how big a problem it is because the reality is that it is quite difficult to pin down. I do not think I want to hazard a guess in this House at this point.”
“As Temasek Holdings hold all the cards on this, the hon. Member would have to ask them. But what I can say is that I would imagine that Temasek Holdings would be seriously looking at this, and they have been on record previously saying that they will assess the market conditions and, at the appropriate time, consider a divestment. Sir, I believe I have substantially answered all the queries raised. 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. SINGAPORE ARMED FORCES (AMENDMENT) BILL Order for Second Reading read.”
“So we are fairly confident that if we create the environmental conditions for a competitive market, both in the upstream gas as well as in the retail and the electricity side, then I think the investors will make appropriate rational decisions. On the long-term energy supply, the Ministry of Trade and Industry has recognised what Mr Liang has said, ie, there is a need to diversify our fuel sources. Hence, the emphasis on LNG, something that we are working on with the view to bringing it onstream by 2012 or so. Why is that important? It will help us diversify from our reliance substantially on piped natural gas. At the same time, it also allows us to tap into a different kind of market, because the LNG market does have its own dynamic, in terms of supply and demand, and, therefore, price, compared to piped natural gas. So we will continue to work on this. EMA will be driving the project. The key point is that, in doing so, we have been and will be closely consulting the private sector. This is because, at the end of the day, this is a substantial investment, and we want to make sure that we create the conditions for this to be successful commercially. So it has to address both our market requirements and, if potential investors can see other ways, it can be enhanced as a value proposition, we would welcome that. Is there a role for the Government to play? It would depend on what potential investors tell us and, if it is assessed that there is a need for the Government to be involved, then, as Minister Lim has mentioned earlier, we would seriously consider that as part of the overall equation for this to happen. Finally, on the question of divestment of gencos, Mr Liang asked if the genco divestment is still on the cards.”
“Mr Liang is correct that the power generation business is capital-intensive and this is exactly why the investors will be very careful in doing their long-term calculations before putting money in. When you invest in a power plant, you are thinking 20 or 25 years, not five years. I just want to make one point. The import control that Mr Liang referred to also covers IPC, because IPC's licence was issued on the assumption of piped natural gas before this control was announced in August 2006. So, that is covered under the control. Having said that, our preference is to leave it to the market to make its judgment on whether to invest, how much to invest, how much capacity to put into the system, what kind of technology, and so on. What the regulator and the Government policy attempt to achieve is a competitive framework so that barriers to entry are low, if not zero, that our market signals are transparent, so that the investors can make their calculations based on the price signals in the electricity pool, they know what the long-term projected demand is going to be, and they also know what are the different supply plans of the various players in the market. On that basis, our investors can make their calculations and decide. Can this competition be destructive? This is a concern that Mr Liang raised. Destructive competition really is the result of irrational economic behaviour. We would assume that whoever is prepared to sink in hundreds of millions, if not billions of dollars, into these plants, would be very rational in their calculations and work out what is the best way to participate in this market to ensure returns that are reasonable for their shareholders and, at the same time, their ability to maintain their competitiveness in the market.”
“Mr Liang Eng Hwa raised a couple of points on the short-term and long-term supply-demand imbalances, and I thought I should address that. Mr Liang is correct. The current generation capacity is in excess of the 30% reserve margin in our system. Our current peak electricity demand is about 5,000 megawatts, and the current installed capacity is more, around 10,000 megawatts. And this is an interesting point: a large part of our excess capacity is actually due to the fact that many of the players, especially the incumbents, installed more cost-efficient gas plants to replace the old steam plants. So the question is whether a competitive market will allow for more efficient decision making which is in the interest of consumers, and I think this is evident that it works, because all the power gencos have chosen to have cost-efficient plants, gas-piped plants, in order to be competitive by keeping their cost structures lower. So it is driven by their need to stay cost-competitive and it does produce outcomes that are aligned with our broader policy interest. I would also like to say that this excess capacity is not really going to be a permanent feature of our system. Why? Because our electricity demand grows by about 4% to 5% a year. That is about 300 megawatts a year or slightly more. Over the next 10 years, we would expect that this excess capacity will be absorbed in part by this growth in demand. At the same time, some of the older steam plants will be retired. That will also reduce the supply side. So you will find that there will be a gradual balancing off of the supply and demand side of the equation here without the excess supply concerns that Mr Liang has expressed.”
“What section 61E merely says is that it provides for a particular dispute resolution mechanism, and all parties are obliged to conform to that, should a dispute arise. And I think that is good because it means there is a certainty that, in the event that there is a dispute, it will be resolved, and it will be resolved in the prescribed manner. So I think there is no cause for concern from that perspective. I would also like to clarify this, because I think Mr Singh raised this point about sections 93 and 94 on appeals on decisions. Just to be very clear, clauses 33 to 35, which apply to the transfer of assets, relate to the Minister making a decision on issues relating to the separation of gas transporting and retailing business arising from our plans to restructure the gas industry. This is a decision of the Minister, and that is not subject to an appeal under the Gas Act. There is no provision for that. The appeal provision here is for decisions made by the EMA. When the EMA makes a decision or a direction, then there are two ways. If it is something to do with financial matters, eg, a penalty, once there is an appeal, there is an automatic stay. On the other hand, if it is on a matter of substantive policy, then the Minister can grant a stay of the decision. But, in evaluating it, the Minister will obviously take into account the broader public policy objective, ie, whether open access through the gas infrastructure is in fact preserved, and whether we are able to also ensure that the competitive environment we are trying to keep in our gas market is maintained. So the Minister will take all those factors into account in deciding whether, in the first instance, a stay should be granted.”
“Indeed, it is in the interest of all the industry players to come together, given this policy intent, to say what makes sense commercially for us to arrive at a settlement. EMA is prepared to even play the role of a facilitator to bring the parties to the table in order to have a productive discussion of this nature. However, when a commercial arrangement cannot be arrived at, then EMA has an obligation, especially when, as a result of the lack of agreement, access to the gas infrastructure is blocked, then EMA is prepared to intervene because the public interest far outweighs any private considerations. Therefore, this Bill empowers EMA to act in that manner for the benefit of the larger good in Singapore. So I want to assure Mr Inderjit Singh that we have, with this amendment, all the wherewithal for EMA to act in the best interest. But, at the same time, I want to assure Mr Liang that this is not an excuse to ride roughshod over private contractual interest. It is to ensure that, in extremis, when these efforts have failed to find an amicable resolution, then the Act, and the powers through it that are given to EMA, will be exercised. Mr Inderjit Singh has raised some concerns over the limitations in the gas network code that may allow parties to delay a process. He refers, I think, to the provision in section 61E about arbitration, and so on. I want to make it very clear - and Mr Inderjit Singh, as a commercial entrepreneur, will appreciate this - that the Gas Network Code (GNC) provisions will buy in parties to open access. It is a contractually binding code. But like any good agreement, there is a dispute resolution mechanism.”
“This is critical to the competitive nature of our gas market, and this is part of the discussion that Mr Inderjit Singh and Mr Liang are alluding to. But we also want to make sure that our gas market remains relevant. The amendments are in response to the developments in the market and in the industry. EMA has studied the trends and has proposed various ways of opening and further developing the gas market in Singapore, and the amendments here are in response to that. Sir, I want to stress once again that it is a response to the market, to the developments in the industry and part of an over-arching objective which was stated six years ago, not a response to any specific transaction or commercial issue that happens to be in the market at this point in time. Having said that, Mr Inderjit Singh and Mr Liang have both raised the IPC case and I think it is worth talking a little bit about that. Interestingly, Mr Inderjit Singh and Mr Liang have quite different perspectives on the matter. Mr Singh is urging that EMA should in fact be willing to exert its authority quickly in order to allow new entrants to come into the market. Mr Liang, on the other hand, is concerned about the reputation as a jurisdiction where long-term business commercial agreements would be honoured and the sanctity of contracts would be upheld. So he suggested that EMA should seek all avenues to allow for an amicable resolution of matters amongst the players before EMA resorts to its legislative powers as a last resort. Both perspectives are correct, and it is quite helpful because the path that EMA wishes to take is a middle one. What I mean by that quite simply is that EMA's preferred modality is in fact to bring about a market-based commercial resolution of these issues.”
“Mr Speaker, Sir, I would like to thank Mr Inderjit Singh and Mr Liang Eng Hwa for their comments and support for the Bill. They have raised a variety of issues on various aspects of the Bill and the industry. Let me attempt to try and categorise them in a way that makes for a bit more cogent response. One set of questions pertains to the whole issue of the Gas Act. Mr Inderjit Singh opines that the Gas Act has taken a long time to reach an effective structure. Both Mr Inderjit Singh and Mr Liang have raised the point about the Island Power Company (IPC). In fact, Mr Liang is quite pointed about whether this amendment is in response specifically to Island Power's problems. Sir, I think it is important to clarify at the outset the fundamental intent of this amendment in this Bill. The policy of wanting to establish an open competitive gas market was articulated, in fact, in the year 2000 and subsequently when the Gas Act was passed in this House in the year 2001. So that policy intent has been very clear. However, in managing and overseeing such a market, there have been significant changes, including the possibility of LNG and the implications of that, and for our regulator, EMA, it has also been an experience in learning how to manage the dynamics of a competitive electricity market and, by implication, in a competitive gas market. So there has been a very deliberate process to assess what needs to be done in the market by way of regulations to govern it. This amendment here covers various aspects and, in particular, there are three elements. The first governs security and reliability of our gas supply. This is important to ensure the critical aspect of our national infrastructure remains viable. The second element is the part on open access.”
“In exercising his discretion to do so, the Minister will take into consideration the implications for the open access policy, and the security and reliability of gas supply and gas infrastructure. In addition, there will be an automatic stay against EMA’s decision or direction if the appeal is against the imposition of a financial penalty or its quantum. There may also be situations where an appeal relates to matters which require certain technical or specialised knowledge. Hence, clause 31 of the Bill enables the Minister to establish an Appeal Panel to hear such an appeal. Mr Speaker, Sir, the proposed amendments to the Gas Act are necessary on two counts. Firstly, they enable my Ministry to continue to ensure the security and reliability of our gas infrastructure and gas supply, which are critical to our electricity generation. Secondly, the amendments will enable EMA to implement more effectively the open access policy which is an essential aspect to the liberalisation of our gas market. This, in turn, will enable all consumers of electricity, households and enterprises alike, to benefit from competitive gas and electricity markets. Sir, I beg to move. Question proposed. 4.30 pm”
“The provisions also cover passive increases in the shareholdings or other interests. In addition, any business relating to a gas pipeline network cannot be acquired without the approval of EMA. These entities will also be required to obtain EMA’s approval for the appointment of persons to key management positions. These provisions in their totality are intended to ensure effective regulatory oversight and control of the gas pipeline network which is a critical part of our national infrastructure. Prevention of damages to gas pipes Sir, turning to the provisions on the prevention of damage to our gas pipes and gas plants, such damage can have catastrophic consequences to human lives, property and our economy. Clause 14 of the Bill strengthens the protection of the gas pipes and gas plants by specifying the precautions to be taken before and during excavation works by persons involved in the works, providing for additional offences when damage is caused and increasing the penalties for existing offences. Enhanced penalties Amendments have also been proposed to strengthen the penalty framework in the Gas Act for effective regulation of the gas industry. Penalties have been introduced for the new provisions in the Bill. Existing penalties in relation to offences such as carrying out licensable activities without a licence, and causing damage to gas pipes, have been increased to reflect the severity of such offences. Appeal process Sir, now, on the appeal process. EMA has received industry feedback on the potential impact on businesses if a stay on EMA’s decisions were not provided for. Hence, clauses 28 and 31 of the Bill provide for the Minister, at his discretion, to stay a decision or direction of EMA when it is the subject of an appeal.”
“This will enable EMA to have adequate regulatory oversight to ensure the safety and reliability of such infrastructure which are critical to our gas supply, and, consequently, to our electricity supply; and (c) Thirdly, the shipping of natural gas. This will give EMA regulatory oversight of gas shippers to ensure that they abide by the gas transportation rules for reliable and secure operation of the gas pipeline network. Safeguarding Critical Infrastructure Security safeguards Sir, let me now cover the amendments which are intended to safeguard our critical gas infrastructure. Section 33 of the Gas Act currently empowers the Minister to issue a Special Administration Order against a gas transporter in specific situations where the security or reliability of gas supply is at risk. Clause 15 of the Bill extends the ambit of the Special Administration Order to include the LNG terminal operator. A Special Administration Order could be imposed if it is found that the security and reliability of the gas network or LNG terminal is or is likely to be compromised. When a Special Administration Order is in force, the affairs, business and property of the respective operator will be managed directly or indirectly by EMA. The gas pipeline network is the only means by which gas is transported to key end users, like the power generation companies and pharmaceutical companies. Any failure of the gas pipeline network, therefore, will have an adverse impact on our economy. To safeguard the gas pipeline network, clause 25 of the Bill introduces a new Part VIIB to the Gas Act under which EMA will be able to monitor and control changes in shareholdings or other such interests in gas licensees and other entities involved in the gas pipeline network business.”
“To prevent such a situation which will hinder competition in our gas market, clause 17 of the Bill will enable EMA to direct new entrants and existing users of an offshore pipeline to enter into a gas allocation arrangement. Similar to clause 16, clause 17 confers immunity from legal proceedings on directed parties in relation to contracts which are made before clause 17 comes into force. EMA will not invoke this power if the parties can negotiate an allocation arrangement amongst themselves. If the directed parties are able to subsequently arrive at an arrangement amongst themselves, the provision in the Act allows for the new arrangement to supercede EMA’s direction. For effective open access, we also need rules to ensure that gas shippers have untrammelled access to our onshore gas pipeline network. Consequently, clause 25 of the Bill empowers EMA to issue a Gas Network Code on the use and operation of an onshore gas pipeline network. The Code is adapted from the UK Gas Network Code and EMA has consulted extensively with the industry to ensure its robustness. Regulating market structure Sir, I will now cover the amendments relating to the regulation of the gas market structure. To cater to the changes in the structure of the gas industry since the Gas Act was passed by this House in March 2001, clauses 5 and 6 of the Bill expand the list of licensable activities to include the following: (a) Firstly, the import of natural gas, whether in gaseous or liquefied form. This will enhance the security of gas supply to Singapore; (b) Secondly, the management or operation of the LNG terminals and Onshore Receiving Facilities.”
“This is to protect the directed party in the event that EMA’s direction on open access places the directed party in conflict with its existing contractual obligations. Let me emphasise that the immunity is confined to existing contracts. A directed party will not enjoy any immunity in relation to a contract which is made after clause 16 comes into force, as the party is expected to enter into contracts that comply with the open access regime. Immunity is also not conferred on any party other than a directed party. The principle underlying the immunity provision, and indeed other provisions, in the Gas Bill, is to ensure that existing commercial considerations amongst the industry players would not have the effect of frustrating the public policy intent of having open access to our gas infrastructure. My Ministry believes that these amendments will send a clear signal to the industry of the Government’s commitment to its policy of promoting competition in our gas and electricity markets. In an open access regime, multiple parties using a gas pipeline will also require an arrangement for the allocation of gas in that pipeline. Gas allocation in an onshore pipeline will be dealt with under the Gas Network Code. In the case of an offshore pipeline, it is common practice in many countries that such allocation is arranged on a commercial basis between the parties who use the gas infrastructure. Moving forward, as we implement the open access policy, EMA will also encourage the industry players to negotiate and arrive at an allocation agreement on a commercial basis. However, if a commercial agreement cannot be achieved, new users of the pipeline would be denied access to the pipeline.”
“To enhance the effectiveness of the existing provisions on open access, clause 16 of the Bill also enables EMA to direct an owner of gas infrastructure to grant an applicant access to the infrastructure, even if the direction may prejudice the performance of any contractual obligation of the owner. Under the proposed amendment, it will be an offence if the directed party does not comply with EMA’s direction. It will also be an offence for anyone to do anything, such as threatening to institute or, in fact, instituting legal proceedings, which has or is likely to have the effect of obstructing, hindering or preventing the directed party from complying with EMA’s direction. These provisions are necessary given the substantial public interest at stake. Nevertheless, I would like to assure the House that EMA will be judicious in the exercise of its authority and it will give all affected parties the opportunity to be heard before issuing such directions on open access. More importantly, EMA’s preferred modality is for the relevant parties to come together and arrive at an agreement on their own. If the concerned parties cannot reach an agreement, and access to the gas infrastructure is, in fact, blocked, then EMA is prepared to intervene to ensure that the larger public interest is served by allowing open access to our gas network. Indeed, EMA would welcome, and facilitate, efforts by the parties concerned to come together and negotiate a deal to enable the gas to flow through the pipes. Sir, the Act will also be amended to grant immunity to the directed party from legal proceedings in relation to any breach of an existing contract, if the breach is solely attributable to, or caused by, its compliance with EMA’s direction.”
“Greater competition in the electricity market has led to downward pressure on price, and has helped to cushion the impact of high oil prices on our electricity tariffs. For example, although fuel oil prices have increased by 71% over the six years from April 2001 to April 2007, our household electricity tariffs have decreased by 5% over the same period. This is despite the fact that fuel accounts for about 70% of the total cost of electricity generation. This is why it is crucial that we put in place an open access regime to support a competitive market for gas which is a key input for our electricity market. Sir, my Ministry is proposing to amend the Gas Act to improve its effectiveness in relation to the open access policy. It also wants to cater to the changes in the structure of the gas market since 2001, and to enhance the safeguards for our critical gas infrastructure and our gas supply. In reviewing the Gas Act, the Energy Market Authority of Singapore (EMA) has sought feedback from the public and industry players through two rounds of public consultation - first in February 2006, and later from December 2006 to January 2007. Let me now outline the key amendments to the Gas Act. Ensuring market access The first set of amendments covers issues relating to the policy of open access to gas infrastructure. Sir, currently, section 38 of the Gas Act empowers EMA to direct the owner of gas infrastructure, such as a gas pipeline network, to grant access to a new entrant. Clause 16 of the Bill extends section 38 to Onshore Receiving Facilities (ORFs).”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Objective Sir, in March 2000, my Ministry announced that the gas industry would be restructured, similar to the electricity industry, by separating the contestable sectors of the gas industry from the ownership of the gas transportation business. To facilitate the liberalisation of the gas industry, my Ministry decided that the gas distribution and transmission network will be owned by a gas grid company which will allow all players open and non-discriminatory access to the entire gas pipeline network. Subsequently, the Gas Act was passed by this House in March 2001, providing a legal framework for the governance of the gas market in support of a liberalised electricity market. It establishes a competitive architecture for the gas market, and a regulatory regime to ensure the security and reliability of the supply of gas to industry and the public. Sir, the question has been asked: why is it important to have an open access regime in our gas market? Let me elaborate. Natural gas is a key source of fuel for our power generation. About four-fifths of our electricity is fuelled by natural gas. Today, we import piped natural gas from our immediate neighbours. In future, we will also import liquefied natural gas (LNG) from other parts of the world. We must, therefore, ensure fair competition in our gas market, by allowing all players to have open and non-discriminatory access to the entire gas pipeline network and other relevant gas infrastructure in Singapore. A competitive gas market will further enhance competition in the electricity market. Sir, we have already seen the benefits of competition since we liberalised, in stages, our electricity generation and retail market from 2001.”
“They are aware that the CPF can be used. But what they are asking for is financial aid, because they have sacrificed their time. The end result is that what they are doing is beneficial for the country.”
“The Minister of State for Community Development, Youth and Sports (Mrs Yu-Foo Yee Shoon) (for the Minister for Community Development, Youth and Sports): Mr Speaker, Sir, some couples who want children but have difficulties conceiving would turn to Assisted Conception Procedures (ACP). As part of the 2004 Marriage and Parenthood package, couples undergoing ACP can now use up to $6,000, $5,000 and $4,000 from their own or their spouse’s Medisave for the first, second and third treatment cycles respectively. For the majority of couples who choose to undergo ACP at public hospitals, these withdrawal limits would cover the bulk of the treatment cost. Although greater financial support for fertility treatment will make ACP more affordable for couples who have difficulty conceiving, unfortunately, the reality is that no amount of financial support is able to increase the success rate of ACP. As fertility declines with age, what is needed are upstream efforts to raise awareness on the narrowing fertility window as one ages and the risks associated with delayed childbearing. I am happy to report that our public education efforts have reaped some results. From my Ministry’s 2006 survey of 3,000 married respondents, 94% are aware that it gets more difficult for couples to conceive as they get older, up from 89% in 2004. However, more can and must be done to raise awareness level and to transform awareness into a change in attitude and behaviour. My Ministry has and will continue to partner medical experts to spread this important message. Er Lee Bee Wah: Mr Speaker, Sir, I think the sentiment among the childless couples is that they have already sacrificed their time in going through ACP. So they are asking whether it is possible to give them financial aid.”
“There is an air-conditioned area for affected residents to rest during these working hours. Temporary toilets and storage space are also made available. And the upgrading is done in batches so that these communal facilities are sufficient for the affected residents’ use. Sir, since 1993, HDB has upgraded 38 rental blocks under Project LIFE and, in all these projects, no tenant has been forced to sleep in the corridors as a result of the upgrading works. One of the newspaper articles showed a picture of a man sleeping at the common corridor of his rental block. HDB investigated and found that he was sleeping outside on his own accord. The upgrading works at his unit has not even started. We have informed the newspaper that they had inadvertently misled their readers by using the picture in the wrong context. HDB does exercise flexibility in cases of residents with serious medical or mobility problems and will arrange for such households to be shifted to a vacant unit. However, in the recent case, the resident who complained to the press did not fall into this category. He had asked for a vacant unit to store his belongings. He was not happy that he had to store it in the allocated storage space provided. HDB could not accede to his request, so he complained to the press. Column No : 213 CHILDLESS SINGAPOREAN WOMEN (Financial support for fertility treatment) 4. Er Lee Bee Wah asked the Minister for Community Development, Youth and Sports whether the Government will consider giving a special grant or other forms of financial support for childless Singaporean women who are seeking medical treatment to have children.”
“No, I have not had any personal discussion with any of the particular politicians the Member was referring to. Column No : 212 UPGRADING OF ONE-ROOM HDB FLATS (Temporary units for tenants) 3. Mr Siew Kum Hong asked the Minister for National Development in view of the situation of some tenants of one-room flats having to sleep in corridors and common areas when their flats are being upgraded (a) what are the HDB’s reasons for not permitting vacant units to be used on a temporary basis; (b) whether this situation has been encountered in previous upgradings; and (c) what measures will be taken to prevent a recurrence in future upgrading projects. The Parliamentary Secretary to the Minister for National Development (Dr Mohamad Maliki Bin Osman) (for the Minister for National Development): Mr Speaker, Sir, I would like to thank the Member for this opportunity to clarify media reports in mid-March that the ongoing upgrading of a block of rental flats in Toa Payoh had inconvenienced some residents. The particular rental block is being upgraded under Project LIFE. LIFE stands for Lift Improvement and Facilities Enhancement. This is a programme implemented by HDB for one-room rental blocks where there is a high concentration of elderly residents. It seeks to improve the physical living conditions of the elderly tenants through lift upgrading and the installation of elder-friendly features, such as support handbars and the Alert Alarm System. It is fully paid for by the Government. When these upgrading works are going on in a rental block, HDB implements a host of measures to reduce inconvenience to residents. The contractors can work inside the flat only from 9.00 am to 5.00 pm during weekdays. They have to ensure that the flat is cleared up at the end of each day.”
“Mr Speaker, Sir, based on media reports, the Chairman of the Sepang International Circuit, Mr Mokhzani, has, in fact, said that he welcomes the proposition of a race in Singapore because he sees this as creating a greater level of interest in the region and more avenues for collaboration. So, taking that as a benchmark from the private sector in Malaysia, I would assume that they do see the potential for a win-win collaboration, as the Member has put it. Er Lee Bee Wah: Mr Speaker, Sir, I think we also read from the newspapers that there are quite a number of Malaysian politicians making negative remarks on this. So, has the MOS had any opportunity to have a discussion with them?”
“Mr Chairman, I appreciate Mr de Souza's concerns. I think we will go a bit crazy talking about the horses. But let me just address his points again. I think we need to separate the issue of our concerns in terms of what are the boundaries that we are prepared to accept in Singapore from the commercial outcomes of any ventures undertaken within those boundaries. So we set the boundaries, and it is not specifically for one or two industries. We set it across the board, so we have the rules and these are rules enforced by the Police, MDA and other agencies. All our potential and existing entrepreneurs in the business understand these rules, and the same rules should apply and will apply to the IRs, no more and no less, as I said. So that would be our approach. Beyond that, we leave it to the companies. If the IRs want to bring in a certain type of entertainment, the first thing really is: does it pass muster with our agencies that control or license or guide the kind of activities they can have? If they pass muster, it is up to them, and then good luck to them. They go ahead, try it out, and see whether it works. But it is not for us to micro-manage what occurs within the IRs beyond the existing and pre-agreed and generally established norms of what we consider to be acceptable.”
“First, on tourism, the sites are available. Developers know this. Our approach is really to make the sites available and then allow the market to decide whether there is sufficient demand. The fact that hotel rates have been moving up and the occupancy rates are at an all time high, it is a clear signal to the market. At the end of the day, the individual entrepreneurs and companies have to make their calculations and make their relevant bids. And if they meet the minimum threshold set by the valuer, then it will trigger a bid process. On electricity, there has been one that has been publicised, as the Member knows, the IPC site, and we remain open to other proposals as well. I think the whole point is that we keep the market open for new entrants and the fact that we have a competitive pool for the sale of electricity also means that potential and existing entrants can make the calculations on whether they want to enter the market afresh or plant new capacities as well.”
“Sir, I am sorry I did not completely address the issue. I mentioned the point that SP Services itself, when arrears cases come up for the first time, they do undertake a counselling process where they advise them on their energy consumption and so on, and then give them another chance to make good the payments, etc. Even after a second default, they still undertake some level of counselling. But beyond that, I think we are very open to any suggestions or working together with the CDCs, other Government agencies, grassroots and community organisations to educate especially the lower-income households on how they can moderate their energy consumption to keep their utilities bills low.”
“In response to Mr Teo and Mr Liang, I would say that the prospects are good, but there are still issues such as the commercial terms to be struck between a potential race promoter and the F1 Group, the level of support required from Government, and the extent to which other stakeholders come forward with their support. Mr Chairman, allow me to conclude by saying that the outlook for our tourism industry is good. To capture the growing opportunities in the Asia-Pacific region, we must be responsive to the needs of the industry, be prepared to revisit old assumptions, and dare to take risks where necessary. To achieve our aim of being a global city, we will need to transform Singapore into a vibrant and exciting lifestyle destination - a city that commands "top-of-mind" awareness amongst travellers as a place where locals and tourists alike would like to visit, live and play.”
“Mr Teo Ser Luck has asked whether we are willing to look at the long-term strategic impact of events like F1, to take calculated long-term risks rather than just consider short-term gains in deciding whether to bring them into Singapore. He said he gets shivers. I wish to assure him that there is no need to. Mr Chairman, the answer is definitely "yes". We do and will continue to assess our tourism projects on the long-term strategic benefits - economic and non-economic, tangible and intangible - that they bring to Singapore. In fact, the F1 is a prime example. The attention and buzz that it generates will expose Singapore to a very different audience from that in the business and financial world. It is a group we currently do not reach out to. An F1 race could also bring about broader tourism benefits and spill-over gains for associated industries such as hospitality, retail and travel. For these reasons, the Ministry of Trade and Industry has been studying, with various agencies, the feasibility of an F1 race in Singapore. An F1 race is a major financial undertaking for any business venture. It will require Government's financial and other support to be commercially viable. The Government is willing to support such a venture but only up to a level that is commensurate with the broader benefits for our economy. It is not a venture that we will support at all costs and certainly, Government cannot do this alone without the strong support of key stakeholders and interested businesses, including hoteliers.”
“Recently, the Global Country Brand Index ranked Singapore second in the world for nightlife and dining. And I think it came as a mild surprise to even some Members of this House, that we achieved such a high ranking. But the fact is that our leisure and entertainment scene is thriving and it is being given an additional boost with the opening last year of Saint James Power Station, and the more recent launch of the world's largest Café Del Mar in Sentosa. In January this year alone, Singapore hosted seven high-profile concerts including Eric Clapton, which I have the pleasure of attending, but also Korean sensation Rain (I did not attend that) and the classical pop group IL Divo. But as Mr Liang Eng Hwa has rightly pointed out, more can and needs to be done. While we continue to do well in international business competitiveness rankings, we fall short when it comes to leisure. In Travel and Leisure Magazine's Best City awards, Singapore is not even in the top 10 list of cities to visit in Asia. To be known and seen as a truly global city, we must have an exciting and fun living environment offering not just a wide variety of quality lifestyle, leisure and entertainment options but also world-class events. That is why we are taking a very serious look at hosting a Formula One Grand Prix in Singapore - an idea that both Mr Teo Ser Luck and Mr Liang Eng Hwa have raised. The F1 is the highest echelon of motorsports, and is said to be the third most watched sporting event in the world, after the Olympics and the World Cup. It is also a glamorous event - one which is attended by sports and entertainment celebrities alike. In fact, the Formula One drivers themselves - such as Schumacher, Alonso and Raikkonnen - and even the cars are celebrities in their own right.”
“Let me assure Mr de Souza, that we have not lost, and will not lose, our ethical bearings in this journey. The fact is, opinion is somewhat divided on why the Crazy Horse cabaret in Singapore came to an end and a good many may not agree with Mr de Souza’s analysis. But that is besides the point. The key thing is that I would caution that we do not extrapolate too much from this single episode in drawing general conclusions. More importantly, what is our approach? It is to clearly define the boundaries, based on our social mores, so that investors are fully aware of our requirements and the limits. And we make no apologies for it. We make it very clear these are the boundaries. We then leave it to the market to judge whether there is a commercial case, or in Mr de Souza's language, whether it is mission impossible or mission possible. That is why, in proceeding with the Integrated Resorts, we put in place a robust and stringent regulatory regime to keep casino and other activities under control. All shows staged in Singapore are subjected to the guidelines for public entertainment and censorship set out by Police and MDA. The entertainment in the Integrated Resorts will be subject to the same rules - no more and no less. Singapore's reputation as a business and Meetings, Incentives, Conventions and Exhibitions (MICE) destination was further burnished by the recent successful hosting of the IMF/World Bank Meetings. We have also been nurturing and growing leisure and lifestyle events. The Barclays Singapore Open, World Gourmet Summit and Singapore Fashion Festival, for example, have grown in stature and popularity with each passing year. Our efforts in creating more "buzz" in Singapore seem to be producing results.”
“The key is to be able to enhance the infrastructure and amenities in these areas without losing their charm, character, street life, and even their intrinsic "messiness", which many visitors find quite attractive. In addition to developing attractions and products, STB will actively pursue other tourism initiatives, such as branding, marketing and pursuing new market segments, to position Singapore as a truly global city and to capture our fair share of the growing Asia-Pacific tourism pie. Singapore is widely acknowledged as a financial centre with a conducive environment for business. But, as Mr Teo Ser Luck has pointed out, we need to enhance our range of leisure and lifestyle events. Singapore must have the X-factor to be a place that is vibrant and buzzing with energy, and a place where it is fun to live and work. Take London, as an example. London has been ranked the top European city for business for the 16th year in a row by the European Cities Monitor, a well-known survey conducted annually of European business locations. It is also famous for its myriad of leisure and lifestyle events, such as West End musicals, the London Fashion Week and Wimbledon. London and other global cities like New York are renowned business hubs which are also on the list of "must-visit" leisure destinations for tourists. They are widely mentioned in both business and leisure media - cities that are equally at home in The Economist or Vogue magazines. 2.00 pm Our aspiration is for Singapore to join the ranks of these global cities with its own unique and sustainable positioning. Mr Christopher de Souza has passionately expressed his ethical concerns and wanting an assurance that we will remain within certain boundaries.”
“Several new record highs were set. We generated an estimated $12.4 billion in tourism receipts, ie, about 15% growth year-on-year, and welcomed 9.7 million visitors, ie, about 9% growth. The average occupancy rates and average room rates in our hospitality industry reached an all-time high of 85% and $164 respectively. The next few years promise to be quite exciting for our tourism industry, with the opening of several large attractions. The development of the Singapore Flyer observation wheel is progressing well and it is expected to open in the first quarter of next year. In addition, the opening of the two Integrated Resorts at Marina Bay and Sentosa is anticipated in 2009/2010. These three products will give a major boost to our tourism industry. But borrowing a line from our population policy, why stop at three if we can afford more? To keep ahead, STB aims to develop a wide range of tourism attractions and product offerings to enhance our appeal as a leading destination to a diverse group of business and leisure visitors. In this respect, Mr Ang Mong Seng has asked how we will enhance the attractions in Geylang. I think we all know what he meant. I agree with Mr Ang that, aside from the high-end tourists, we also want to develop offerings which appeal to other market segments, including the middle and mass markets. The ethnic precincts are an integral part of Singapore's tourism offerings. STB has been working with other Government agencies to develop and rejuvenate various ethnic tourism precincts like Little India and Chinatown. STB will do the same to further develop Geylang and Geylang Serai and continue to actively involve the local business associations and other key stakeholders in the effort.”
“Through this programme, we hope to install around two megawatts of power generation capacity from solar and other clean energy sources. Our efforts on biofuels are ongoing. The Institute of Chemical and Engineering Sciences (ICES) under A*STAR is conducting research into new methods to produce biofuels, such as from cellulosic materials. The EDB and the NEA have brought together a group of companies, including Robert Bosch, Shell, Nexsol and DaimlerChrysler, to test and evaluate the use of biodiesel in our local setting. If the trials are successful, we can consider introducing biofuels into the market on a pilot scale. Mr Chairman, Sir, let me now touch on our tourism strategy. The World Tourism Organisation has projected that global tourist arrivals will grow at about 4% per annum, and that the Asia-Pacific region will experience even higher growth exceeding 6% till 2015. This presents Singapore with significant opportunities, especially given our location. At the same time, our competitors are not standing still. Many countries have been aggressively investing in new tourism products. We must be prepared to respond swiftly and make bold changes to avoid being left behind. To capture our fair share of the growing tourism pie, the Singapore Tourism Board (STB) aims to triple tourism receipts to $30 billion, and double visitor arrivals to 17 million by 2015. This means that our tourism receipts have to grow at about 10.3% annually and our visitor arrivals by 6.4%. These are ambitious targets, but they are essential to spur our efforts to ensure Singapore remains an attractive destination for visitors. I am pleased to inform the House that we are on track to achieve our 2015 targets. The strong performance of our tourism sector in 2006 was very encouraging.”
“We keep an open mind on the use of coal power, as long as it is cost effective and can meet our environmental standards. We know that there is new technology which is able to bring the sulphur dioxide and particulate matter emissions down to levels comparable with fuel oil emission, but there are issues pertaining to carbon dioxide emission and these need to be addressed as well. At present, waste-to-energy is our largest source of renewable energy. The incineration of wastes generates 2%-3% of our electricity supply. But due to our geographic limitations, other sources like hydro, geothermal, wind and tidal energy sources are not viable. Solar technology and biofuels appear to be the main renewable energy options that are feasible in Singapore. However, solar power is still about twice as expensive as our household electricity tariff due to the high upfront cost of photo-voltaic systems. Similarly, ethanol and biodiesel are costlier than their petroleum counterparts. In fact, this is a key consideration, ie, cost, quite apart from which there is the issue of the infrastructure for fuel supply and refueling. These need to be taken into account. Biofuels are new, and we need to understand their impact on car engine performance, reliability and tailpipe emissions as well. The Government is stepping up R&D efforts to produce commercially viable alternative energy technologies. A*STAR and EDB will be investing more than $100 million over the next five years in various energy research and testbedding programmes. One new initiative is the S$17 million Clean Energy R&D Platform under the EDB. This R&D Platform will allow us to evaluate the performance of various clean energy technologies in our tropical context.”