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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“LTA and SBST started on a major renewal project for the North East Line (NEL) in 2019, to refurbish its 25 first-generation trains, as well as to upgrade key components in the track, power, signalling and platform screen door (PSD) systems. Works were expected to complete in the third quarter of 2024. So far, LTA and SBST have completed the planned upgrading works for the track, power, signalling and PSD systems. As for the refurbishment of trains, the first refurbished train has been put into passenger service in February 2022. However, the overall train refurbishment programme has been affected by the COVID-19 pandemic, due to manpower restrictions. LTA will continue to work closely with SBST and the contractor to minimise programme delays in a safe manner.”
“As announced by Prime Minister Lee Hsien Loong and Prime Minister of Malaysia Dato’ Sri Ismail Sabri Yaakob on 24 March 2022, Singapore and Malaysia will reopen our land borders for fully vaccinated travellers from 31 March 2022, 2359 hours. All fully vaccinated travellers, and non-fully vaccinated children aged 12 and below, are permitted to enter Singapore without the need to undergo border health measures, such as testing and quarantine. MTI has also issued a press release sharing more details. In addition to the designated vaccinated travel bus services, fully vaccinated travellers may cross the Causeway and Second Link via private vehicles, such as cars and motorcycles. Singapore and Malaysia are also progressively restoring other modes of transport.”
“As with other industries, the increase in fuel prices and electricity tariffs will increase operating costs for public transport operators (PTOs). PTOs adopt various strategies to manage energy costs risks. In addition, the Fuel Equalisation Fund (FEF) was established and maintained for the purpose of mitigating the volatility in energy cost. PTOs can and do apply for the Public Transport Council’s (PTC) approval to draw on their FEF balances in times of high energy cost. Public transport fares in Singapore are governed by an established fare formula. The PTC will consider various factors, including energy prices, as well as operators’ financials and prevailing economic conditions before arriving at a considered decision at the annual Fare Review Exercise. Commuters who need extra assistance can also apply for Public Transport Vouchers to defray their transport expenses.”
“Mr Chairman, I thank the Leader of the Opposition for the clarification. Intellectual rigour, intellectual honesty – I am not sure, I mean the Leader of the Opposition appears to be imputing words. Whatever it is, I think you cannot have rigour without honesty. So, let us leave it as that. In terms of proposals, I do not intend to canvass again the arguments about the different sources of revenue. I think they have been well discussed in the main Budget Debate on the Budget policies and so on. However, I want to bring it back to this Ministry’s budget because it is an important point. Every year, we have to address this issue of the balance between quality service, affordability and financial sustainability. This is not going to go away. So, when we make proposals, it cannot be that we make proposals that incur additional expenses under one Head, but then, say it will all be taken care of at some macro level. Because we do need the discipline of also addressing how, within that particular Ministry’s budget, we are making every effort to find the appropriate balance.”
“The ability to bring in the requisite level of manpower is key and we are working with the companies and MOM on that.”
“Mr Chairman, if I may, I omitted to respond to a specific point that Assoc Prof Jamus Lim made which was on whether we could consider off-peak measures which, I think, was one of his ideas. I would never rule any option out. But again, I just want to make the point that when you run a concession fare system, then, basically, what it means is, you pay one concession fee and then you can vary the terms, but then the revenue level is there. But once we say we are switching from off-peak to peak and so on, then essentially, it changes the construct and we have to look at this quite carefully. So, I just wanted to make the point. I would not rule out any options going forward because, as I have said, there are various factors that we have to take into account in thinking through our fare formula and our approach. But I just wanted to make that point specifically. I want to thank the Member Ms Poh Li San for her question. Indeed, she has raised a very important point because it is one thing to say we want to increase our arrivals to 50% or more of pre-COVID-19 levels, but how to make it happen? Because there has been a significant attrition in manpower and we have to re-employ. 1.00 pm MOT and CAAS are working with the unions and with the companies, first, of course, to see how many Singaporeans we can bring back into the fold. This is an important priority. But at the same time, a significant portion of the attrition has been manpower from overseas. So, we are also working with MOM to see what kind of solutions we can put in place because once we decide to go towards vaccinated quarantine-free travel, the volumes will pick up significantly and we need to make sure that, from a capacity perspective, we are geared up.”
“So, we have to square the circle. And it is by no means a straw man.”
“Mr Speaker, I thank the Member for his question. Let me start by saying it is not exactly a straw man argument at all. Because, fundamentally, there is a need to explain where the money is going to come from. By the Member’s estimate – I am not saying that I agree with his estimate – but his estimate is $300 million to $400 million. And then, he says it is 3% to 4% of the Ministry’s budget. I would urge the Member to look at the budget carefully. The Ministry’s budget of $11 billion includes two-thirds which is development expenditure. What the Member is proposing, is a recurrent operational subsidy of $300 million to $400 million. So, in other words, it is on the lower base which we are looking at. Specifically, the Ministry’s operating budget in the last couple of years has been increased because of COVID-19-specific measures. So, if you discount that further, what the Member is actually proposing is an increase in the subsidies – if I use my $2 billion reference point – of about 20% to 25%. That is a significant increase! Should we incur such an increase? I think it is something we should debate. But I think then, we should also, to be intellectually rigorous, examine where the Member and his party stand when it comes to sources of revenue. Because you have to square the circle. Last year, we increased fare revenue and I know that the Leader of the Opposition made a point about how fares have increased and that is contributing to cost of living. In other words, the Workers’ Party looks askance at increases of fares. And yet, we are also arguing about spending more. And where do we get that from? From the Government revenue? And the Member and his party also take a dim view of several of the revenue sources that have been proposed by the Finance Minister.”
“I do not think there is a monopoly of virtue here, in terms of wanting to help Singaporeans, especially those who are in vulnerable segments, but what we are trying to do is make sure that we are being fair to our commuters, to our taxpayers, to the vulnerable segments and also, to public transport operators and their financial viability.”
“Mr Chairman, I thank the Member for that clarification. It is helpful because it means that we agree in principle that we have a fiscal responsibility to see what we can do to optimise the resources. Senior Minister of State Chee Hong Tat would be able to give more information on his specific points about trunk routes and alternatives. But the Member also raised the point about financial prudence and about being penny wise and pound foolish. When a proposal is made that will incur $300 million to $400 million more a year, when we raise questions about that, I do not think that is being penny wise and pound foolish. I think it is all about big pounds that are at stake. When I listen to some of the comments from Mr Giam and also his colleague Assoc Prof Jamus Lim, I am reminded that, Mr Chairman, with your indulgence, there is an Ernest Hemingway book “The Sun Also Rises”. In it, there is a character Mike Campbell and he is asked, “How did you go bankrupt?” And he replies, “Two ways – gradually, then suddenly.” I think we need to remember this: if we resist every effort to optimise and if we champion every effort to increase services or collect less, but resist every effort to perhaps increase fares and other measures to have the financial resources to do what we need to do, then, what we will end up with is this – the creep will be gradual and the end will be sudden. That is the risk that we run. So, what we are trying to do here – and I think I am not the first Transport Minister to make this point; it has been made by generations of Transport Ministers and I am sure many more to come – is really to strike that all-essential balance.”
“Mr Chairman, I thank the Member for his questions. I have a clarification for him, because he has heard the explanations that I and also Senior Minister of State Chee Hong Tat have given in terms of the process and how we go about this. So, may I understand, does he accept the principle that as we expand our rail network and as we invest more, and as the capital base and the asset base grow, we have an obligation to optimise across the system? Is he disagreeing with us on the principle or is it about the process? Or is it specifically about the outcome in his constituency? I would like clarity on that.”
“Mr Chairman, a resilient, sustainable and inclusive transport network is essential for Singapore's survival and success and to safeguard the lives and livelihoods of our people. Our world-class Aviation Hub, Maritime Centre and land transport network of today are the fruits of the labour of earlier generations who adapted to the challenges and needs of their time while planning and investing for the future. The critical decisions our transport pioneers made were not necessarily conventional wisdom of the time nor were they self-evident. Building Changi Airport, betting on containerised shipping, constructing an MRT network and introducing vehicle population control measures are just some examples. But with the passage of time and the benefit of hindsight, we can appreciate how their decisions, some even unpopular, positioned Singapore strategically for the future. In the same way, the responsibility now falls upon us to steward our world-class transport ecosystem adapted to the evolving circumstances and emerging trends and, ultimately, pass on an even more resilient, sustainable and inclusive transport hub to and for future generations of Singaporeans. [Applause.]”
“But the problem is that the overall number of COEs available is between 400 and 600, on average, per bidding cycle exercise. That being the case, if we further subdivide the category, the likelihood of greater volatility in the prices is significantly increased. Having said that, we have observed early signs that the utilisation rate may be softening for TCOEs obtained in more recent months. So, I want to assure Members that I have asked LTA to study this very carefully and they will be completing their review soon. Several Members asked about job prospects and how we will develop local talent. Mr Chairman, the changes I have outlined will need the support of our transport workers and unions. The past two years have been difficult for the entire transport community, especially for our frontline workers in our airport, seaport and land transport system. With hard work and grit, they have kept Singapore connected. And I want to thank the entire transport community, especially our frontline transport workers, for their tenacity and forbearance in this most challenging of times. Beyond COVID-19, as we forge ahead with electrification, digitalisation and automation, I know that many of our workers in the workforce may be worried about their jobs and their future. Our commitment to you is that we will be with you every step of the way. We are working with the unions and employers, our tripartite partners, to ensure that you navigate this transition successfully. We will help you to upskill and retrain so that you can seize these new opportunities. Senior Minister of State Amy Khor and Senior Minister of State Chee Hong Tat will elaborate on how we will do this.”
“Senior Parliamentary Secretary Baey Yam Keng has taken over from Minister of State Muhammad Faishal Ibrahim as Chairman since the start of the new term of AMAP in January this year and he will elaborate more on the steps that we have taken and on AMAP’s key priorities going forward. Next, private transport. Given our limited land, we have long pursued a car-lite strategy. The COE system is an allocation mechanism that responds to market forces. Mr Liang Eng Hwa, Mr Murali Pillai and Mr Abdul Samad raised questions about motorcycle COEs where prices have been high in recent times. Mr Henry Kwek and Mr Murali Pillai have also suggested increasing motorcycle COE supply. I understand the reasons for their suggestions and share their concerns for those who may depend on motorcycles for a living. However, it is important to note that there has been strong and persistent demand for motorcycles. This is reflected in the utilisation rate of motorcycle Temporary Certificates of Entitlement, or TCOEs, which have remained consistently high at over 99% since bidding resumed in July 2020. TCOEs mean that the bidder has six months. So, it is a temporary COE – six months within which they can then utilise that COE. And the fact that, over that six-month period, the utilisation rate has been high consistently at 99% underscores the point that demand has been high. The distribution of these COEs is also noteworthy: 70% have been used for motorcycles with 200 cc engine capacity or less, about 20% in the 201 cc to 400 cc range and about 10% are more than 400 cc. There have been some suggestions, like from Mr Murali Pillai, that perhaps we could consider a special sub-allocation.”
“When fares are increased, PTC has apportioned less of the increase to concessionary commuter groups and more to other adult commuters. But everyone pays a share and those who can pay more, do so. This is a more equitable approach, which has served us well over the years. 11.45 am Looking ahead, several converging trends will affect our public transport system over the next decade – a growing rail network, shifting work and travel patterns, our ageing population and volatile energy prices. Amidst these changes, it is important to have a fare formula for long-term financial sustainability. The current fare formula is valid until 2022. We will commence the fare formula review this year and conclude the exercise by next year. The PTC will continue to strike a delicate balance across cost pressures faced by public transport operators, the burden on taxpayers of public transport subsidies and fare affordability for commuters. Mr Chairman, let me now turn to active mobility and private transport. Walking and cycling complement our public transport network, especially to bridge the first- and last-mile connections. Many different groups of commuters use our various paths and I note the comments by several Members about the nature of the interactions in these different pathways. These paths should not be territory that is jostled or contested over. Rather, they should be common spaces that we share and enjoy with a culture of graciousness. To balance the needs of different users and promote safety and graciousness, the Active Mobility Advisory Panel, or AMAP, was first formed in 2015. I would like to thank the Panel for their good work over the past few years under the strong leadership of Minister of State Muhammad Faishal Ibrahim.”
“So, when Assoc Prof Jamus Lim suggests making public transport free for seniors and persons with disabilities, we understand where he is coming from, yet do not necessarily agree with where he suggests we go. To address the Member’s proposal, it is worthwhile to first understand what we are already doing today and what his suggestions mean for commuters and taxpayers. Overall, the Government spends more than $2 billion annually in subsidies for public transport commuters: about $1 billion for bus operations and $1 billion for train operations. On average, we subsidise more than $1 for every journey taken on public transport. As of January this year, there are around 975,000 seniors and persons with disabilities who hold concession cards, which is nearly 1 million. Depending on the trip, they receive a discount of up to 55% from what an adult commuter would pay. The Member has estimated that his proposal will cost $300 to $400 million annually, which he has acknowledged has to be paid for by commuters or taxpayers. Using his numbers, for taxpayers, this would mean a 15% to 20% increase to the $2 billion in subsidies already borne by them. If borne by commuters, adult fares will have to be increased by around 20% to 25% today, or 30 cents to 40 cents on average – this is up to 11 times the fare increase last year. This financial burden is by no means insignificant and it will only grow by 2030, when the number of persons with disabilities and seniors aged 60 and above is expected to increase, by about 28%, to about 1.2 million. In contrast, the Public Transport Council, or PTC, which is cognisant of the need to ensure that fares remain affordable for vulnerable commuter groups, adopts a different approach.”
“One way to sustain this growing network and manage costs is to optimise the provision of bus and rail services holistically at the system level. This may entail reallocating capacity and resources. Senior Minister of State Chee will elaborate on how we seek to achieve this, with a focus on the overall benefit to commuters. Mr Ang Wei Neng suggested giving discounts to encourage more off-peak travel. Indeed, this is another way to better utilise our existing public transport infrastructure. Today, commuters who tap-in at any MRT or LRT station before 7.45 am on weekdays, excluding public holidays, enjoy a discount of up to 50 cents. With changing work and travel patterns, we will continue to work with employers and study various options to smoothen peak demand. Some Members like Mr Lim Biow Chuan have pointed out that a high-quality public transport system must be resilient, yet affordable and accessible. The challenge is in striking the difficult but essential balance, between quality, affordability and financial sustainability of our public transport system over the long term. In particular, even as we manage increasing costs, we have always sought to keep public transport affordable for all Singaporeans, especially for vulnerable commuters like our seniors and persons with disabilities (PWDs). Indeed, that is why we tilt public transport subsidies towards more vulnerable commuter segments. In addition, in the last two Fare Review Exercises, for example, we set aside approximately $20 million a year in Public Transport Vouchers to help defray the impact of the fare increase. Seniors and persons with disabilities from lower-income households can benefit from this additional support.”
“In August last year, we opened the second stage of the Thomson East Coast Line, or TEL. We expect 11 more TEL stations to commence service in the second half of 2022. This will connect residents in the north directly to many destinations in the city and significantly shorten travel times. Those who live or work near stations like Great World, Maxwell and Shenton Way will have direct connections to the entire MRT network. When TEL is fully opened over the next few years, more than 240,000 households will be within a 10-minute walk from a TEL station. Beyond the Thomson East Coast Line, the Jurong Region Line (JRL) and Cross Island Line (CRL) will open in stages from 2027 and 2030 respectively. The JRL serves the north-western part of Singapore, connecting towns like Choa Chu Kang, Tengah and Jurong to Nanyang Technological University and the Jurong Innovation District. For CRL, we had earlier shared details about the first stage comprising 12 stations from Aviation Park to Bright Hill, as well as the extension with three stations from Elias to Punggol. The second stage of the Cross Island Line will extend further west and run through areas such as Turf City, Sunset Way, Clementi, West Coast and Jurong Lake District. We will release more details later this year. The Cross Island Line will have interchanges with all the radial lines, giving commuters more travel route options. A wider and denser network also strengthens resilience at the system level. When these lines are completed, we would have increased our rail network by 50% to 360 kilometres. The rail network is complemented by bus services. As we expand our public transport system and the asset and operating base grows, costs will inevitably rise.”
“We are working with the industry, research community and international partners on R&D, pilots and standards development for low and zero carbon fuels, especially at the new Global Centre for Maritime Decarbonisation. We expect hydrogen and its carriers, including ammonia and methanol, as well as bio-LNG, to be important components of the future fuel mix. We will, therefore, prepare our port for this multi-fuel transition. Third, MPA will commit an additional $300 million in funding over the next 10 years to reduce emissions from our port terminals and harbour craft and support the development of green technologies and fuels for international shipping. Finally, public transport is a core element of our sustainability efforts. As I shared yesterday, the adoption of EVs can make an important contribution, but the greenest modes of mobility are walking, cycling and the use of public transport. We will continue to enhance these options for commuters. Let me start by first assuring Members that notwithstanding the disruptions wrought by COVID-19, the Government is committed to continue expanding our rail network. It is a critical investment in the capacity of our public transport system, the productivity of our economy and effective mobility for our people. We are making good progress in this regard. LTA’s 2021 Household Travel Survey shows that seven in 10 households now live within a 10-minute walk of the nearest train station. This brings us closer to our target of eight in 10 households by 2030. Trips during peak hours are also shorter. The proportion of peak hour walk, cycle or ride journeys completed within 45 minutes has increased from 66% in 2019 to 71% in 2021. We aim to raise this to 90% by 2040.”
“I should add that our aviation enterprises should also view this as an opportunity to differentiate themselves and enhance their competitiveness, given the global focus on sustainability. In a similar vein, I would like to inform Mr Dennis Tan that we are making significant efforts to build a sustainable maritime hub. International shipping accounts for about 3% of global greenhouse gas emissions. Maritime centres like Singapore can play a meaningful role in achieving the emissions targets set by the International Maritime Organization. As a follow-up to last year’s recommendations of the International Advisory Panel for Maritime Decarbonisation, the Maritime Port Authority of Singapore (MPA) has held extensive consultations with the industry. This effort has culminated in the Maritime Singapore Decarbonisation Blueprint, which I am happy to launch today. Let me highlight three aspects of the Blueprint. First, we will reduce emissions from our port terminals and harbour craft. Our terminal operators will electrify equipment, optimise energy usage and leverage renewable energy. We aim to reduce emissions by at least 60% from 2005 levels by 2030 and achieve net-zero emissions at our port terminals by 2050. For harbour craft that operate in our port, we will first use low-carbon fuels such as biofuels, LNG and diesel-electric hybrids. This will enable us to reduce emissions by 15% from 2021 levels by 2030. In parallel, we will develop and deploy zero-carbon vessels such as those using electricity, to further halve 2030's emission levels by 2050. Second, we will support global efforts to decarbonise international shipping.”
“We have used the opportunity of this pause to review the T5 design in light of the pandemic experience and the heightened sustainability ambition. But there should be no doubt that we are firm in our resolve that Changi must have the capacity and capability to seize opportunities that arise from aviation growth, especially in Asia, and we will provide an update on the review in due course. Let me now turn to Environmental Sustainability. Yesterday, in the Joint Segment on the Singapore Green Plan, I announced our land transport emissions target and explained how vehicle electrification will contribute to that effort. Today, I will cover other sustainability initiatives in the transport sector. 11.30 am Let me begin with our Aviation Hub. Ms Poh Li San asked about the Sustainable Air Hub Blueprint which is key to Changi’s future competitiveness. The Blueprint will establish emissions reduction targets for 2030 and 2050 and the specific measures we will take at the airport, with airlines and in air traffic management. All of these can contribute to a more sustainable air hub. Besides lowering emissions, it will also create new opportunities for Singaporeans in fields like data analytics and engineering. The detailed plans will be announced in early 2023. Ms Poh also asked how we will help aviation companies cope with increased business costs arising from carbon taxes, which would include higher electricity charges. MOT and Civil Aviation Authority of Singapore (CAAS) are working with our aviation companies to adopt new technologies and other measures to enhance energy efficiency, reduce electricity usage and lower carbon emissions, such as through the deployment of solar panels at the airport.”
“MOT will work closely with the Multi-Ministry Task Force (MTF) and MOH on the timing of this transition, which will depend on the public health situation in Singapore and the world, among other things. We share Ms Poh Li San’s concerns about the potential impact of the situation in Ukraine. It has already affected fuel prices and could impede the recovery of the global economy and international aviation. We are monitoring the situation closely with our aviation partners and will mount an appropriate response should the need arise. In the meantime, our airport community is gearing up for higher travel volumes. During the pandemic, the workforce in Changi Airport Group, SIA, SATS and other aviation companies fell sharply. Based on MOM's latest published employment data, as of September 2021, the air transport sector employed about 25,000 workers, nearly one-third less than pre-COVID-19 levels. Our companies are now ramping up recruitment. SIA has started hiring new cabin crew and SATS is bringing back experienced workers. This is an important effort, but by no means an easy one. The Government will continue supporting our aviation sector amidst the continued uncertainty with a $500 million "OneAviation Resilience Package" in the coming financial year. Of this, $60 million will go towards manpower support, as companies build up capacity ahead of demand; $390 million for continued cost relief and measures to safeguard public health at the airport; and $50 million to support long-term industry digitalisation and transformation efforts via a top-up to the Aviation Development Fund. Mr Melvin Yong and Mr Dennis Tan asked for an update on Terminal 5 (T5). In 2020, we announced a two-year pause in the development of T5.”
“We introduced Vaccinated Travel Lanes (VTLs) from September last year, barely six months ago, although it feels like a lifetime. Today, we have VTLs with 32 countries and regions. These VTLs have enabled us to attain passenger volumes of about 15% of pre-COVID-19 levels in December 2021. Flights at Changi have reached 38% and city links are at 58%. Many have, finally, been able to reunite with family and friends abroad. We must sustain this momentum. Other aviation hubs, like Dubai, Qatar and Istanbul, are already at up to 70% of their pre-COVID-19 international passenger traffic. In our region, Malaysia, Vietnam, Thailand and the Philippines have announced plans to reopen their borders to all vaccinated travellers. In short, the world is learning to live with COVID-19. We now have the confidence and opportunity to move decisively. IATA forecasts that international passenger volumes in the Asia Pacific will recover to about 40% of pre-COVID-19 levels this year. We aim to restore Changi's passenger volumes to be at least 50% of pre-COVID-19 levels in 2022. We are now in the first phase of this plan, launching VTLs with specific countries and regions. Just last week, we announced further VTLs with Vietnam, Greece, Malaysia, Indonesia, India and Europe. The next phase will entail a more fundamental shift – from Vaccinated Travel Lanes to vaccinated, quarantine-free travel. Our aim is to allow all fully-vaccinated travellers from countries and regions under MOH's "Low Risk" and "General Travel" categories to enter Singapore without having to serve Stay-Home Notice (SHN) or quarantine. This will, effectively, reopen our borders to the rest of the world.”
“Mr Chairman, I would like to thank all Members for their questions and suggestions for my Ministry, which Senior Minister of State Amy Khor, Senior Minister of State Chee Hong Tat, Senior Parliamentary Secretary Baey Yam Keng and I will endeavour to address. Sir, connectivity is the lifeblood of Singapore. We depend on our transportation links, domestic and international, for our lives and our livelihoods. Hence, MOT's aim is to build a Resilient, Sustainable and Inclusive Transport Hub. I will focus my response to Members' cuts on four themes: first, the recovery of our Aviation Hub; second, our sustainability initiatives; third, keeping land transport accessible and affordable; and fourth, creating good job opportunities in the transport sector. Let me start with the reopening of borders and aviation recovery, which Mr Melvin Yong, Mr Gan Thiam Poh, Ms Poh Li San, Mr Dennis Tan and Mr Raj Joshua Thomas have asked about. This is our immediate priority. Changi's air connectivity anchors the Singapore economy. Many companies choose to be in Singapore because they can easily reach their customers and suppliers in our region and beyond. To lose Changi's connectivity is to lose this key competitive advantage and our livelihoods that depend on it. In the early stages of the pandemic, we were faced with a stark and difficult trade-off between protecting public health and opening our borders. Fortunately, we are in a different situation today, thanks to a better understanding of the virus, well-established safe management measures and high levels of vaccination in our population. Hence, we have been able to take careful and calibrated steps to reopen our borders. In early 2021, the passenger volumes were at 3% of pre-COVID-19 levels.”
“And that means our policies on car ownership, usage and, indeed, the emphasis on a car-lite strategy and greater use of public transport – those must remain as important principles that guide our larger transport policies. So, we want to encourage the adoption of EVs in the context of our larger green transition, but we also want to ensure that, where we can and where it is also within the ken of our people, greater transition to the use of public transport and less carbon-emitting modes of transportation.”
“Mr Chairman, I thank the Member for his questions. If I may take the second one on electric motorcycles first. As I have said earlier in my speech, the technology is still evolving, different models, different types of solutions. So, we are tracking this very closely and we will make an assessment of the need to put in place any specific measures that might facilitate earlier or quicker adoption of such e-motorcycles. The Member's first question was around incentives for electric cars and, in particular, the road tax angle. So, let me address this in three parts. First, road tax. As the Member would be aware, last year, we made a series of changes to the road tax treatment of EVs. As a result of that, the road tax payable by mass- to mid-market EVs is, generally, in line with their ICE equivalents. I think that does not seem to be an impediment per se, but we will continue to monitor this and see if there is a need for further tweaks. Second, we have also introduced the upfront ownership cost adjustments through the EV Early Adoption Incentive which, when combined with the Vehicle Emission Scheme (VES), can result in a reduction of up to $45,000 in the upfront cost, depending on the OMV of the car. So, I think that is quite substantial. So, when we put these together with the recurrent costs – and the likely savings in recurrent costs of running an EV, because the maintenance tends to be less costly and so on – we think that, on balance, the economics works in favour of EV adoption or, at least, not against it. But we will continue to monitor this because this is an evolving space. But if I may make a final point, Mr Chairman, I think it is important to bear in mind that EVs are, first and foremost, vehicles; hence, "V"s.”
“As Mr Dennis Tan noted, last year, MSE implemented the Commercial Vehicle Emissions Scheme and enhanced the Early Turnover Scheme to encourage the adoption of cleaner-energy light goods vehicles. However, for the heavier goods vehicles, there are fewer viable cleaner-energy solutions currently available. We will work closely with industry partners to track technology advancements in this space with a view towards early adoption of viable solutions for heavier goods vehicles. Mr Chairman, in summary, we are taking decisive action to reduce land transport emissions by 80% by or around mid-century. We will make every HDB town EV-ready by 2025. We will support EV adoption with adjustments to our COE Category A MPO threshold, upgraded electrical infrastructure and a robust regulatory framework for EV charging and ensure half our public buses and taxi fleets are electric by 2030. But beyond these efforts, the success of this green endeavour, ultimately, rests with each one of us and the commuting decisions we make every day. Based on LTA’s estimates, compared to driving an ICE car, switching to an electric car halves our carbon footprint. Taking an electric bus reduces our carbon footprint by 70%. Taking the MRT reduces our carbon footprint by close to 90%. And if we walk or cycle, the carbon footprint is practically zero. So, we can make a difference with our choices. At the MOT COS debate, we will share more about our plans to make all these options more accessible by expanding the rail network, repurposing our roads and building more cycling paths. Our informed individual choices will have an indelible and enduring impact on our carbon footprint, environment and future. Together, we can make the vision of the Singapore Green Plan a reality. [Applause.]”
“Our taxi operators have already announced some plans. ComfortDelgro will roll out up to 400 electric taxis, or e-taxis, in 2022, while Strides has committed to a fully electric fleet by 2026. To support these initiatives and higher ambitions, the Government will extend the statutory lifespan of e-taxis to 10 years, up from the current eight years. As EV batteries for e-taxis may need to be replaced around the five-year mark, this extension will enable taxi operators to optimise their investments and price e-taxi rentals competitively. In turn, our taxi operators have committed that at least half of our taxis will be electric by 2030. This is a significant move, given our total taxi fleet of around 15,000 today. Among private hire cars, 50% of GrabRentals fleet will also go electric by 2030. LTA will continue working closely with private hire car operators to increase EV adoption. We will make a similar concerted push for our public bus fleet. We aim for half of our public buses to be electric by 2030. This means an almost 50-fold increase from the 60 electric buses today, to about 3,000 by 2030. To achieve this, bus buys from now till 2030 will primarily be electric. For a start, LTA will replace over 400 diesel buses with electric buses by 2025. 1.30 pm To further green our public transport infrastructure, LTA will call a tender later this month to deploy more solar panels at locations like rail and bus depots, the upcoming Integrated Train Testing Centre, covered linkways and pedestrian overhead bridges. This will reduce both emissions and energy costs. Goods vehicles and private buses are also key to our effort as they contribute the bulk of our remaining emissions.”
“We earlier introduced the EEAI to reduce the gap in upfront costs. However, the cost differential remains for certain mass market EVs because they fall within Category B COEs, along with bigger ICE cars. One reason for this is the Maximum Power Output (MPO) criterion. We introduced the criterion of 97 kilowatts in 2013, in addition to an engine capacity of 1,600 cc or less, for Category A cars. That was to address the market trend then, when many luxury petrol cars with smaller but turbo-charged engines could draw on Category A COEs. Introducing the 97-kilowatt MPO threshold shifted these turbo-charged luxury cars into Category B. However, mass-market electric cars in international markets tend to have a MPO of 110 kilowatts or lower. Locally, more mass-market EV models with an MPO above 97 kilowatts have been introduced in the last year. So, Mr Saktiandi Supaat would be pleased that MOT has reviewed the MPO threshold between Category A and Category B COEs for electric cars. We will be increasing the Category A MPO threshold for electric cars from 97 kilowatts to 110 kilowatts. Based on the EV models approved by LTA for use so far, this move will double the number of models that fall within Category A from 10 to 20, including models like the Hyundai Ioniq that Mr Louis Chua mentioned in his speech. This change will apply to electric cars registered using COEs obtained from the next COE quarter in May 2022. Mr Chairman, the EV transition also applies to other vehicle segments. Prof Koh Lian Pin and Mr Gan Thiam Poh asked about the plans for the public transport and point-to-point (P2P) fleets. The P2P sector is key to emissions reduction as taxis and private hire cars clock a much higher daily mileage, compared to the average private vehicles.”
“The third thrust of our EV masterplan is to implement policies and regulations that support adoption and ensure safety. I agree with Prof Koh Lian Pin that robust regulations and standards are necessary to ensure a reliable and safe EV charging ecosystem. To that end, LTA has worked closely with the industry on revisions to Technical Reference 25, or TR25, which is our national EV charging standard. The revised TR25 will preserve public safety while easing compliance and maintenance obligations for owners of EV chargers. It will also allow for new technologies, such as battery-swapping, for electric motorcycles and very high-powered charging of up to 500 kilowatts. Mr Saktiandi Supaat and Mr Gan Thiam Poh have asked about our approach to such technologies. As they are still relatively nascent, we will focus on safety regulations, while monitoring industry and technology developments to assess their applicability to our overall charging network. To lay the foundation for a new regulatory framework, we will introduce legislation to regulate EV charging. This will cover the approval and registration of EV chargers and the licensing of EV charging operators. It will also mandate the provision of charging infrastructure in new buildings and major redevelopments. There will be a public consultation on the proposed legislation later this year. We have also reviewed our vehicle policies to ensure they are relevant for an EV future. With the changes over the last two years, the road tax for mass market electric cars is now comparable to that of equivalent internal combustion engine (ICE) cars. Several Members, in this debate and before, have suggested using pricing and other incentives to increase the attractiveness of EVs vis-à-vis ICE cars.”
“They will mostly provide low-powered, overnight charging, which would meet the needs of car owners and minimise the load on the electrical grid. There will be at least three charging points per carpark and more where there is demand and adequate electrical capacity. LTA will launch the large-scale tender for charging points at HDB carparks in the first half of this year. We have also made progress in the deployment of chargers at other premises. Mr Ang Wei Neng’s question was regarding the pattern of ownership. More than 80% of electric car users live in private residences today, many in condominiums and private apartments. So, to incentivise non-landed private residences to install chargers in their carparks, we introduced the EV Common Charger Grant last July. So far, 12 developments have used this grant and at least 20 others are in the pipeline. Their applications are being processed and I would like to encourage more Management Corporation Strata Titles (MCSTs) to benefit from this scheme. Our second move is to upgrade the supporting electrical infrastructure. Consumer switch-rooms and substations will have to be expanded to support increasing use of the residential charging network. After industry consultation and feedback, we have decided that the Government will undertake this long-term infrastructure programme. The National EV Centre at LTA will take the lead, working with other Government agencies like EMA and HDB. Upgrades will commence over the next few years and continue well into the 2030s. Ms Yeo Wan Ling asked about financing. LTA will be issuing green bonds to fund these infrastructure upgrades. The bond repayment obligations will be met through a tariff on EV charging operators and users, which will be phased in at a later stage.”
“Globally, EV technology continues to advance and sales of electric cars have gained momentum. In Singapore, new electric car registrations increased 18-fold, from 100 in 2020 to 1,800 in 2021, accounting for almost 4% of all new car registrations. This is a promising indicator of the impact of our measures, such as the EV Early Adoption Incentive (EEAI) for cars, which has been highlighted by Mr Saktiandi Supaat, Mr Gan Thiam Poh and Mr Louis Chua. We will monitor developments and assess the need for similar measures in other vehicle segments, like electric motorcycles. To sustain the momentum of our EV transition, we will step up our efforts in three key areas. First, charging infrastructure. Several Members have highlighted the need for charging infrastructure to keep pace with, if not be ahead of, EV adoption. Range anxiety is a commonly cited impediment. In practice, the average driver in Singapore may need to fully charge her electric car only once every five to seven days, given that most have a range of at least 300 kilometres. Nevertheless, this concern over nascent technology is understandable. To take anxiety out of range, chargers must be widely available. Last year, MOT shared plans to deploy 60,000 charging points across public and private carparks by 2030. Since then, LTA has undertaken a major survey of the switchrooms and substations serving residential carparks across the island to assess the additional electrical capacity needed to support EV charging. This evaluation has given us the confidence to accelerate the implementation of our plans. We will make every HDB town EV-ready by 2025. To achieve this, we will install charging points in nearly 2,000 HDB carparks over the next three to four years.”
“Mr Chairman, the Singapore Green Plan articulates our national climate ambitions, as well as our commitment to climate action and achieving net-zero emissions. Sir, climate change is a challenge of the global commons. The cost of solutions will be incurred by individuals, enterprises and economies, while the benefits will take time and accrue to the global community. But we must act now, individually and collectively, by making responsible choices and trade-offs to avert a tragedy of the commons and prevent grave harm to our environment. Our land transport system is an important part of this endeavour. It is our third largest source of emissions, accounting for 15% of national emissions today. Over the decades, we have taken significant steps to build an efficient and sustainable transport system. We have, progressively, introduced policies on car ownership and usage, invested heavily in public transport and active mobility and promoted the transition to cleaner-energy vehicles. As a result of these moves and other changes, I am happy to share with Members that our land transport carbon emissions peaked at 7.7 million tonnes in 2016. While this is a significant inflection, we must do more to work towards net-zero emissions, as stated by Senior Minister Teo Chee Hean. Hence, aligned with our national effort, we aim to reduce land transport emissions by 80% by or around mid-century, from the peak in 2016. This is a reduction in absolute emissions. It is an ambitious goal that will require policy moves, new technologies and behavioural shifts across our land transport system. Along with the decarbonisation of the power grid, electrification of vehicles is a key initiative that will have a material impact and I would like to elaborate on our moves in that regard.”
“Ultimately, a first-class public transport system depends on the quality and commitment of our public transport workers, and protecting their welfare is a key priority. Hence, even at the height of the disruption to bus services during the Delta wave, we wanted to ensure that our bus captains had sufficient time for rest even if it meant longer waiting times for commuters. As the manpower manning situation improved, we also prioritised our bus captains for their booster shots while progressively restoring headways for bus services. Last, but not least, commuters can look forward to even more convenient and accessible public transport journeys in the coming decade as we significantly expand our rail network from 245 kilometres (km) today to 360 km in 2030. The progressive opening of the remaining stages of the Thomson-East Coast Line, Circle Line Stage 6, as well as the new Jurong Region Line and Cross Island Line, will shorten commuting times and bring us closer to achieving our goal of a resilient, inclusive and sustainable land transport system.”
“We are committed to providing safe, reliable and accessible public transport services. That is why we closely track a range of indicators to benchmark the quality of our public transport services. To give us a broader sense of commuter satisfaction trends, we look at a range of annual surveys conducted by various organisations. In that regard, while the Public Transport Customer Satisfaction Survey (PTCSS) indicated a decrease in satisfaction levels, the Singapore Management University's Customer Satisfaction Index of Singapore for the Land Transport sector found that satisfaction with public transport in 2021 held steady compared to 2020. It is also noteworthy that in the PTCSS that showed a decrease, more than nine out of every 10 respondents were satisfied with our public transport system. Nevertheless, we take every survey result seriously, and study them to identify areas for improvement. In the case of the PTCSS, the survey coincided with the period of the Delta wave when bus service frequencies had to be adjusted due to a spike in COVID-19 cases within the community that affected our bus captain workforce. We recognise that these service adjustments may have caused inconveniences to commuters, but they were part of our ongoing work with public transport operators to refine and strengthen their contingency plans. Apart from customer satisfaction surveys, we also track performance indicators such as the Mean Kilometres Between Failure (MKBF) which is a key indicator of rail reliability. In this regard, we have continued to maintain world-class rail services, with our MRT system sustaining a MKBF above one million train kilometres since 2019.”
“Over the past two years, MOT and the Civil Aviation Authority of Singapore (CAAS) have worked with aviation companies to keep aviation frontline workers safe and ensure that our airport and air cargo facilities can continue operating amidst a dynamic COVID-19 situation. Safeguards have been put in place to mitigate the risk of transmission including vaccination, a regime of frequent testing, donning of personal protective equipment (PPE) and safe management measures (SMMs). Aviation companies, including Changi Airport Group (CAG) and SATS, have developed business continuity plans (BCPs) in the event of staff absenteeism due to COVID-19. SATS has clarified that one of the reasons for the recent disruption at its facility at the Changi Airfreight Centre was a sudden spike in COVID-19 infections among its cargo coordinators who are specialists responsible for checking and breaking down cargo pallets at the Import Terminal. This occurred amidst a surge in cargo volume in the lead up to Chinese New Year, which was about 20% higher compared to last year. This resulted in a backlog of unprocessed cargo and delays in shipments for collection by the cargo agents and disrupted the smooth flow of goods in and out of Singapore. According to SATS almost all the cargo received between 26 January and 3 February has either been collected by the cargo agents or is ready for collection. For the remaining cargo, SATS has finalised the status of the shipments with freight forwarders. SATS will assess all claims and work closely with its insurers on possible compensation. The key aviation companies have been asked to review and further strengthen their BCPs to enhance their operational resilience.”
“The average utilisation rate of the approximately 27,000 bicycle parking lots at key transport nodes was around 60% last year. For unsheltered lots, the utilisation rate is around 55%. These bicycle parking lots can be found at MRT and LRT stations, bus interchanges and Integrated Transport Hubs. They are provided free-of-charge to support active mobility and first-mile, last-mile connectivity. Where there is space available, it would be more cost-effective to construct them under existing covers and structures at the transport facilities.”
“One of them was sentenced to 10 months' jail while Court proceedings for the second assailant are pending. After the conclusion of Court proceedings, we will also assist the bus captain if he wishes to pursue civil legal actions against the assailants. Strong enforcement and tough penalties are necessary to send a clear signal and deter abuses against our frontline workers.”
“Public transport operators (PTOs) have standard operating procedures or SOPs in place to manage incidents that bus captains may face in the course of their duties, including physical or verbal abuse by commuters. The SOPs include de-escalation procedures to be adopted by bus captains. Incidents of physical or verbal abuse are also reported to the respective Bus Operations Control Centres (BOCCs) who will activate the Police where necessary. Where commuters remain aggressive even after attempts to de-escalate, bus captains will be advised to stop the bus at the next bus stop and wait for the Police's arrival. These procedures were followed for the incident in question, where a Go-Ahead Singapore (GAS) bus captain was assaulted by two intoxicated commuters on 2 November 2021. Where a commuter could put the safety of the bus captain or other commuters at risk, the BOCC will advise the bus captain to open the bus doors so that the bus captain and commuters can leave the bus if necessary. In the incident cited by the Member, the bus captain was assaulted when he returned to the driver cabin after reminding the two commuters to put on their masks. As the attacks happened suddenly, the BOCC did not have an opportunity to provide further guidance to the bus captain. The installation of protective barriers in buses was trialled in 2018 and 2020. However, these were discontinued as bus captains had provided feedback that the glare from the barriers posed a safety risk when driving. LTA, the National Transport Workers' Union (NTWU) and the PTOs stand united in adopting a zero-tolerance approach to abuses against public transport workers. Both assailants involved in this incident have been charged in Court.”
“To encourage users to manage the use of petrol and diesel, the Government levies excise duties on these fuels. Carbon tax is levied on large direct emitters like petrochemical and power generation companies. The Ministry has not conducted a detailed study on the impact of increasing petrol excise duty on vehicle usage, since LTA does not track individual driving behaviour. That said, a higher petrol excise duty, which tends to be structural, sends a price signal and aims to discourage the use of petrol vehicles, given the negative environmental externalities.”
“MOT and the Civil Aviation Authority of Singapore (CAAS) closely monitor the demand for Vaccinated Travel Lane (VTL) flights. In the week ending 6 February 2022, there were still unused VTL (Air) quotas for Indonesia and Malaysia, despite a 50% limit we have imposed on the daily number of VTL travellers to manage the risk of imported Omicron cases, and higher demand for travel during the Chinese New Year period. We will review the quotas for the VTL flights, including for Malaysia and Indonesia. This will take into account travel demand, as well as MOH’s public health risk assessment based on the local and global COVID-19 situation. As part of learning to live with COVID-19, we will press on with our efforts to restore our connectivity with the world while safeguarding public health.”
“To ensure the safety of path users, all active mobility users must abide by the speed limit of 10 kilometres per hour on footpaths and 25 kilometres per hour on shared paths. LTA also maintains a strong enforcement presence to deter errant riding on paths. From 1 January 2020 to 31 December 2021, 84 notices were issued to cyclists for speeding on footpaths and shared paths. The numbers have remained relatively stable, notwithstanding the increasing popularity of cycling. The Government will continue to enforce against errant cyclists and promote a safe and gracious path-sharing culture through sustained education and outreach efforts. These include gracious path-sharing campaigns and the propagation of safe riding rules and practices for cyclists through the Confidence on Wheels programme. However, education and enforcement are only part of the solution. The best way is for all of us – cyclists, pedestrians and all public path users – to be responsible, follow all rules and stay alert at all times.”
“The Motor Vehicles (Third-Party Risks and Compensation) Act requires users of motor vehicles, including taxis and private hire cars (PHCs), to be covered with a valid insurance policy with liability coverage against third-party claims arising from personal injury or death resulting from use of their vehicles on our roads. This includes injury or death due to accidents caused by passengers. Taxi and PHC fleet operators provide insurance coverage for vehicles that are rented out to drivers. Such insurance, generally, includes coverage against third-party vehicle damage. Drivers who are involved in a third-party claim for property damage caused or contributed by their passengers’ actions can seek independent legal advice for civil recourse. As safety is a shared responsibility, I urge both taxi and PHC drivers and passengers to ensure safety of themselves and others.”
“I thank the Member for his questions. I have addressed them in my reply for Question No 61 for oral answer on the Order Paper for the 14 February 2022 Parliament Sitting. [Please refer to “Reasons for Recent Record High Premiums of Motorcycle COEs and Measures to Help Those Impacted and Dependent on Motorcycles for Livelihoods”, Official Report, 14 February 2022, Vol 95, Issue 47, Written Answers to Questions for Oral Answer Not Answered by End of Question Time section.]”
“The implications of the realignment of the Flight Information Region (FIR) boundary between Singapore and Indonesia and whether the realigned FIR will bring long-term benefits to Singapore's competitiveness and air hub status have been addressed by the Minister for Transport in the Ministerial Statement – The Agreement on the Realignment of the Boundary between the Jakarta and the Singapore Flight Information Regions – at the Parliament Sitting on 14 February 2022.”
“The Civil Aviation Authority of Singapore (CAAS) has been working closely with the Infocomm Media Development Authority, local telecommunication companies and international aviation regulators to assess the potential impact of 5G technology on aircraft operations in Singapore. Airline pilots operating in Singapore have not reported any interference to aircraft operations. The 5G network in Singapore uses a frequency band of 3.45 to 3.65 GHz, which is far away from that used by aircraft radio altimeters at 4.2 to 4.4 GHz. The 5G base stations in Singapore also have low power emission levels. These factors significantly lower the risk of any potential interference with aircraft radio altimeters. In addition, CAAS has conducted live trials in Singapore and these trials have not flagged any significant interference to aircraft operations. CAAS will continue to monitor this issue closely.”
“Operations at Changi Airport Terminal 2 (T2) were suspended on 1 May 2020 to accelerate the T2 expansion works. The Changi Airport Group plans to progressively reopen T2 from 2022 as these works are completed. This will support the recovery in air travel. To prepare for the anticipated increase in travel volume, the Civil Aviation Authority of Singapore (CAAS) is working with the companies in the airport community to ramp up their manpower. They are progressively recalling aviation workers who had been redeployed earlier to other sectors as well as hiring new manpower to replace workers who had left. CAAS is also working with the companies to beef up their business continuity planning to ensure system resilience, given the evolving COVID-19 situation.”
“Singapore and Indonesia are working towards an arrangement to facilitate two-way quarantine-free travel for fully-vaccinated travellers between Singapore and Bintan, while managing the associated public health risks. Further updates will be provided when these discussions are completed.”
“This has enabled Singapore to play a key role as a vaccine distribution centre for the region. Companies across the air cargo value chain are upgrading themselves to obtain international certification, such as the Centre of Excellence for Independent Validators (CEIV) by the International Air Transport Association (IATA) for pharmaceuticals and perishables. The aviation community, with funding support from CAAS, is also investing in proof-of-concept projects that aim to reduce reliance on manpower for cargo operations, such as the use of autonomous vehicles at the airside.”
“The Singapore air cargo hub contributes to Singapore's economic success by helping our businesses access global markets and attracting foreign direct investments. We are also a well-connected transhipment hub facilitating global trade flows through Singapore. Despite the COVID-19 pandemic and the ensuing challenges, Changi Airport has remained a pre-eminent cargo hub. The Government is working closely with the Changi Airport Group (CAG) and other aviation partners to further strengthen our capabilities in air cargo and freight handling to entrench Changi Airport as an air cargo hub. Changi Airport has maintained its extensive cargo network throughout the COVID-19 pandemic. Air freight throughput has recovered to pre-COVID-19 levels, with total airfreight throughput for 2021 at 1.95 million tonnes, compared to 2.01 million tonnes in 2019. To boost capacity, the Civil Aviation Authority of Singapore (CAAS) and CAG had worked closely with airline partners to introduce passenger aircraft for cargo conveyance operations, expand their freighter operations, and introduce new freighter operators. Singapore Airlines (SIA) is also investing in its freighter fleet and has recently announced that seven A350 freighters will be delivered from 2025, with an option for five more. This new-generation aircraft offers better fuel economy, longer range and greater deployment flexibility to better serve cargo customers. Changi Airport has also developed capabilities to handle cargo in high growth areas. For example, with dedicated temperature-controlled facilities, Changi Airport can provide cold chain solutions to maintain the integrity of pharmaceutical cargo and the freshness and quality of perishable products.”