Saktiandi Supaat
Singapore
“I have two supplementary questions. For my Parliamentary Questions that the Senior Minister of State answered earlier, I thank him for answering them because those are questions that my dialect-speaking seniors in Toa Payoh East and their families have raised to me.”
“As the Review Group has recognised, there is no "silver bullet", a holistic ecosystem-wide approach is required. The implementation of these recommendations appears to have been phased, with announcements across February, July and November 2025.”
“Thank you, Mr Speaker. Three questions. First, given that the Section 301 actions can sometimes be broad-based, how is Singapore engaging with our US counterparts to ensure that our firms are not inadvertently affected by measures aimed at other economies?”
“Many of them do not openly express their difficulties. This is why social and emotional support must go beyond the occasional event. It must be sustained, trusted and easily accessible.”
“Would the Government consider developing a National Master Trades Accreditation framework – a national tiered certification that recognises advanced trade mastery, similar to chartered professionals in other sectors and create a new avenue for career switchers and career transition for segments of our workforce?”
“When the scheme is implemented in 2028, how will the Ministry measure success in terms of participation rates, risk-adjusted returns and improvements in retirement adequacy outcomes for CPF members?”
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“] I am glad that the Government has listened to the people's concerns and delayed the GST increase start date and staggered it over two years. I am also heartened that, under the Assurance Package, the majority of households will get five years' worth of offsets and the lower-income will get at least 10 years' worth of offsets. For example, let us take a Singaporean couple with two young children, who live in a 4-room HDB flat and earn the combined household income of $8,000 per month. Even though they would have to pay $806 in additional GST per year with the GST increase, they could receive payments and rebates of $3,850 over five years under the enhanced $6.6 billion Assurance Package. A three-generation family with two school-going children living in a 5-room flat could receive $6,740 over five years, offsetting about seven years of GST increase. This is the middle-income group that I mentioned earlier. In another example, a lower-income couple with two young children, who live in a 3-room HDB flat and earn a household income of $2,300 stands to receive $5,010 of payments and rebates offsetting about 12 years in GST increase! This does not include the permanent GSTV scheme which they will also receive for a longer period beyond that. If I can just summarise this using two Malay quatrains. The first quatrain speaks about many segments of our society receiving extraordinary support. The second quatrain states that the amount spent on the Budget is worth it because it makes us stronger and gives us hope. (In English): Mr Speaker, Sir, in the last two years, we have dipped into our reserves and Singaporeans have worked very hard to pull Singapore through the COVID-19 challenges.”
“I recalled in her response speech to an Adjournment Motion on "Taxation for a Dynamic and fair 21st Century Economy" just three months ago, Second Minister for Finance, Ms Indranee Rajah, clarified that over 60% of the net GST from households and individuals is estimated to be collected from the top 20% of resident households, foreigners residing in Singapore and tourists. That was not the first time this information has been given to the House. The Deputy Prime Minister Heng also highlighted this two years ago in his 2020 Budget debate response speech. Also, all the Finance Ministers have explained that the Assurance Package will cover the majority of Singaporeans for five years' worth of GST increase and the lower-income for at least 10 years' worth. This, effectively, neutralises the GST increase for these groups for those durations and, in some cases, for even longer; and not to mention the permanent GSTV scheme which will add on to that Assurance Package as well. So, to get a sense of how much the different households will receive, colleagues and Members, you may find it useful to refer to the infographics, and I have seen the infographics on MOF's website. In addition to the middle- and lower-income, they will receive offsets under the permanent GSTV scheme, over and above the amounts under the Assurance Package. So, it is not right to say that the GST increase will be borne by the middle-income without taking into consideration some of these transfers and some of these longer-term and permanent transfers, which is quite unique for Singapore – the permanent GSTV scheme. Mr Speaker, in Malay, please. (In Malay): [Please refer to Vernacular Speech.”
“Is it possible to repackage some of these tax incentives, so that agencies like the Economic Development Board (EDB) can still continue to have these "carrots" in the bag as they pitch to foreign investors? What will happen to the investment tax credits with the changes? The fairness of the global tax reform under BEPS 2.0, and the achievement of its stated aims, will depend on exactly how individual countries choose to implement the two pillars. As we consider our own implementation steps, I hope we can adopt a "wait and see" approach – to consider how other countries are implementing BEPS 2.0 before tailoring our implementation steps in tandem, rather than pioneer an implementation model ahead of the rest of the world. Operationally, supposedly 1,800 companies are going to be affected, but no indication which sectors and type of companies they are and how hard they will be hit. Mr Speaker, before I conclude this part of my speech, I would like to address an assertion made by Mr Leong and Progress Singapore Party (PSP), which is that the GST increase will be borne by middle-income Singaporeans. Sir, given the statements and information previously provided by MOF, I think that statement is neither a fair nor an accurate assessment. As you can see – and I have mentioned it earlier at the start of my speech and previous Budget speeches mentioned by Minister Lawrence and other Ministers for Finance, I have requested for more help to be given to the middle-income.”
“For example, Indonesia's carbon tax is going to be set at US$2.10 per tonne, come April 2022. If businesses simply "offshore" their operations away from Singapore, not only do we lose jobs associated with such operations, we may also fall short of our goal to manage climate change. In addition, further details would be useful to assuage concerns that exemptions to companies using LNG, diesel and petrol may undermine our efforts in this space. Finally, I turn to the longer-term priority to maintain Singapore's status and relevance as a leading hub, in order to survive and thrive as a resource-scarce nation. Positioning ourselves at the forefront of sustainability trends by developing into a go-to regional marketplace for the trading of carbon credits is essential. I had previously mentioned in the House that the global carbon credit market could be worth more than US$50 billion come 2030. In our efforts to build a carbon trading ecosystem in Singapore, as we are in such early stages, I would suggest organising a dedicated inter-agency taskforce now to coordinate these efforts. The creation of a vibrant marketplace with many active participants depends on a range of issues that we will need our different agencies to work out. I will be filing a cut on this during the Committee of Supply debate to address this in greater detail. Second, on Singapore's overall attractiveness for foreign investments following the implementation of the agreed global tax reform, or BEPS 2.0. What are the Government's plans to preserve Singapore's attractiveness as an investment destination in view of this erosion of our corporate tax competitiveness?”
“When that is done, I hope the Government can take the lead and require training providers to adopt the Tripartite Standards before they are eligible for SkillsFuture funding. Mr Speaker, Budget 2022 also demonstrates our Government's resolve to tackle the tough but necessary decisions to build the fair, inclusive and sustainable society we want. I am proud that our Government is "walking the talk" when it comes to addressing inequality – with higher taxes targeting the top 1.2% of earners; luxury cars, investment properties and on the top 7% of most valuable homes. These progressive measures will ensure that "those with more will contribute more", while "those with less will still contribute, but a lesser amount, and they will receive more benefits in return". But on the Minister's point that there is some difficulty in valuing and taxing wealth accurately, may I ask if we are rethinking our 2008 decision to repeal estate duty, also known as inheritance tax? A recent OECD report has observed estate duty can be a particularly efficient way of enhancing equity and raising revenue if the class of exempted assets are minimised and the tax base is kept broad. Besides being a fair and inclusive society, we also want to be a sustainable community. Just last month, many Members, including myself, spoke on the Motion for an "inclusive transition" to a low-carbon society. I am grateful that the Government has taken on board the suggestion to announce our carbon tax plans in advance, in order to give businesses the runway to plan ahead. While the contemplated measures to help businesses – such as emissions allowances and support for green investments – are welcome, are we also looking at adjustment measures to prevent carbon leakage to other countries with "looser" requirements?”
“Through the pandemic, I have heard from residents that they or their family members have turned to delivery and private hire driving "gigs". The launch of apps to connect gig workers and clients have only accelerated the growth of freelancing. As an advisor to the NTUC-affiliated Education Services Union (ESU), one of the first groups of people that come to my mind are the private-sector individuals working across the Early Childhood, Student Care, Universities, Private Education Institutions and International Schools – otherwise known as AEs. The nature of the sector lends itself to freelancing as training providers and institutions are increasingly reluctant to hire these individuals as employees. Some AEs may even be compelled to start their own sole proprietor company and enter a business-to-business transaction just to get the job. Common problems faced by freelancers include not getting paid on time, and onerous, unclear contractual provisions, such as those that unfairly appropriate the freelancer's materials or intellectual property. Unlike employees who have some protections under employment law, freelancers often fall back on contractual terms that they agree with their clients. Is it possible for MOM to augment its "key terms of engagement form template for self-employed persons", to provide default contractual wording which freelancers can rely on to be the market standard and which they can rely on if the matter goes to the Court or the Small Claims Tribunal? For AEs in particular, I understand that the ESU is currently working with SkillsFuture Singapore to formulate Tripartite Standards for freelance AEs.”
“Having a single uniform qualifying salary may also penalise sectors where Singaporeans are less interested in those jobs, while those employers cannot get pass holders to do the jobs. Third, another way to raise wages is to ensure that our workers can quickly and smoothly transition from their existing industry – which may be a sunset industry with stagnating wages – to emerging growth areas. In facilitating our current and future workers' transition and upskilling, why is there no further focus on the Professional Conversion Programme or the Capability Transfer Programme in this year's Budget? Over the years, I see value in these programmes, especially as we face the risk of structural unemployment and an economy in transition and faced with global disruptions. How are these programmes going to sit alongside the new SkillsFuture Career Transition Programme announced by the Minister for Finance? Fourth, given the context of an economy in transition, individuals may experience volatility in income levels or in employment altogether. It may be useful to relook at the option of assessing personal income tax on a current-year, pay-as-you-earn basis. And I have mentioned this in many of my Budget debate speeches. It is like a broken record; I have been raising this point. This is as opposed to a preceding-year basis, this system can help taxpayers – a significant proportion being middle- and upper-middle income Singaporeans – so that they can better manage their cash flow by matching tax payments with contemporaneous income. Finally, we cannot forget our freelancers. Before the pandemic, the number of freelancers was already on the rise, reaching 8% of Singapore's working residents.”
“While I am happy to hear that we will uplift lower-wage workers by extending the Progressive Wage Model (PWM) to security officers, drivers and workers in the retail and food services sector, what are we doing to boost the wages of our middle-income workers? On that note, I have a few suggestions to make. One, as a start, and probably to nudge the public and private sectors, we could raise the salaries of our frontline workers, regardless of whether they are lower-wage workers. I am mindful that it needs to be paid from somewhere. This includes our wider range of healthcare workers and Adult Educators (AEs) who are private-sector individuals working across the Early Childhood, Student Care, Universities, Private Education Institutions and International Schools and who are represented by the NTUC-affiliated Education Services Union (ESU). The nature of their occupation meant that these AEs, who are largely aged 35 and above, were one of the first to return to their workplaces as this pandemic dragged on. Increased remuneration would recognise their invaluable societal contributions in this pandemic and extend our appreciation to them like how we did for our nurses last year. Second, I also welcome the raising of the minimum qualifying salary for foreigners to work in Singapore on Employment Passes (EP) or S Passes. Theoretically, this means that jobs which previously paid between the old and new salary thresholds – which could have gone to a foreign employee previously – will now have to filled by a local. However, will the Government consider further differentiation of sectors beyond just carving out the financial services sector? Different sectors pay vastly different salary scales and the point at which they require foreign labour or expertise may vary significantly.”
“Against this backdrop of rising costs of living, the GST increase has generated great public attention. The GST was last raised to 7% in 2007, some 15 years ago. While the increase to 9% – announced as early as 2018 in light of our ageing population and increased healthcare and social spending – will still be lower than the GST or VAT in many other countries such as Australia and the UK, but it is still a very visible price increase for the average Singaporean and Singaporeans are understandably concerned. In this regard, I would like to thank the Minister for Finance for pushing back the start date and also staggering the GST increase across 2023 and 2024, as well as topping up the $6 billion Assurance Package that was announced in 2020, where the distribution of cash, rebates and vouchers will help households to offset five to 10 years of additional GST expenses. But we cannot just stop there. To help Singaporeans cope with rising costs of living in a sustained manner, we must focus on growing their wages. Based on MOM's data, the real growth in our full-time employed resident's median gross monthly income has slowed down in the last five years. This looks at the income of a typical worker in the middle, after all workers are ranked by their income. After adjusting for inflation, the median gross monthly income has only increased 2.1% year-on-year between 2016 and 2021, down from 3.1% in the 2011 to 2016 period. Mr Speaker, so, middle-income households also require more help, not just the low-income. The last two years have not been easy for everyone.”
“I thank Mr Leong for his answer. The reason why I asked is that I just want to have an understanding. The way I interpret the Budget booklet and the Statement that Minister Lawrence Wong highlighted is that the Assurance Package and the permanent GSTV in some ways neutralise the impact on the majority, including the middle-income as well. Mr Speaker, let me proceed with my speech. Mr Speaker, Sir, I thank the Minister for Finance for presenting the strategic yet empathetic Budget that is aimed at securing the long-term interests of Singaporeans as a whole as we face various global disruptions and uncertainties from various fronts. Budget 2022 is an ambitious Budget plan. It seeks to strike a fine balance between helping our businesses and people emerge from the pandemic and investing in our longer-term objectives by taking tough decisions today. In my speech, I will start by addressing the concerns of Singaporeans namely the middle-income segment amid rising costs of living – including the GST increase, and one of the reasons why I sought clarifications from Mr Leong is because the middle-income segment is something that will be a theme in my speech, Mr Speaker – and the need to focus on real wage growth to combat rising costs. I will then turn to the brave decisions we are taking to build a fair, inclusive and sustainable society. Thereafter, I will round up with some thoughts on maintaining Singapore's hub status. First, on the rising costs of living. As the economy recovers from COVID-19 both domestically and globally, we can expect inflationary pressures to drive prices up. MAS is projecting a 2% to 3% increase in prices this year, led in part by rising energy prices due to geopolitical tensions, continuing supply bottlenecks and a recovery in global demand.”
“Sir, I have a second additional clarification, please. Can I ask Mr Leong whether he can confirm that his calculations do not take into account the amounts that middle-income residents of Singapore will receive under the Assurance Package and the permanent GSTV scheme? I just want to confirm that his calculations do not include those.”
“Mr Leong Mun Wai mentioned that the GST hike will result in $1.2 billion in tax burden on middle-class Singaporeans in the long run. Can he share with us how he got that $1.2 billion figure as I do not seem to be able to find it in published material?”
“Mr Speaker, please allow me to seek a clarification from Mr Leong Mun Wai?”
“Mr Speaker, I would like to thank the Minister of State for his reply. I have two supplementary questions, short ones. The progress that the Minister of State mentioned is good news, especially if COTMA is going to be tapered off this year. But I have a bit of concern in terms of expectations of disputes probably going up later this year, especially between contractors and their respective employers. So, my first question is whether there will be any low-cost ways for these firms to resolve disputes going forward, especially if measures taper? Secondly, are there any specific arrangements to transition workers from these BE firms that go out of business?”
“Would section 139(2) not usurp the power of the Legal Committee, who must exercise its power through a quorum of not only the Mufti but also two fit and proper Muslims who may also be learned Muslim religious leaders? Mr Deputy Speaker, Sir, notwithstanding the clarifications sought, I support the Bill.”
“But what the Bill is silent on is: what consequences are there if parties fail to comply with the Court's advice to secure their children's completion of the support programme? Also, would there be further support or "check-ins" with the children beyond the completion of the divorce proceedings, say, one year or two years later? The Bill also provides that the Syariah Court may advise the "prescribed persons" to attend a family support programme or activity beyond the divorcing parties and their children. Who are these "prescribed persons" that are being contemplated? Again, what is the expected practical utility if it is not compulsory for such persons to comply with this advice, as the Explanatory Statement spells out? Some final miscellaneous questions in brief, Mr Deputy Speaker. One, I notice that clause 22 of the Bill purports to remove the requirement to use a prescribed form to apply for divorce or revocation of divorce. Is this part of a broader plan to overhaul the Syariah Court filing system, to create an electronic filing system like e-litigation? If so, are there plans to issue guidance to lawyers and litigants-in-person and will the Ministry consider some form of transition period where parties may be exempted from paying extra Court fees if they make inadvertent errors in filing their documents? Two, clause 24 of the Bill proposes amending section 139(2) AMLA such that the Mufti's evidence that a doctrine, ceremony or act is contrary to the Muslim law shall be presumptively accepted by a criminal Court prosecuting an offence under section 139(1). More fundamentally, is such a provision necessary since section 32(7) of AMLA already provides that any Court may refer any question of Muslim law to the Legal Committee which the Mufti chairs?”
“One, the proposed amendment to section 50 removes the present need for the Syariah Court to appoint a second set of hakam, or arbitrators, to attempt reconciliation and pronounce divorce where reconciliation is not possible. Under the amended procedure, the first set of hakam would be empowered to pronounce a divorce if they are of the joint opinion that the parties should be divorced. What is the expected time saving from doing away with the second set of hakam? Are there any statistics on the number of marriages which have been saved from divorce by the second set of hakam? Two, the Bill also proposes to remove the requirement for the payment of prescribed fees before the Syariah Court must cause a divorce to be registered. While I note the rationale that a party cannot be allowed to frustrate the divorce process by simply refusing to pay the fees, I would like to ask how the Syariah Court would go about enforcing the payment of such fees, especially if the divorce has already been registered. At the same time, I very much welcome the amendments which enhance the Syariah Court's power to advise persons to attend counselling and family support programmes in the course of divorce proceedings. There will now be a clear provision that the Syariah Court may advise one or both divorcing parties to secure the child's completion of a support programme for children. It cannot be gainsaid that, often, the biggest victims in a marriage that has broken down are the children of the family. Of no fault of their own, these children lose out on various aspects of family life going forward, at a time when they might not be intellectually mature enough to manage the loss. So, the ability to ensure that these children receive the necessary support is important.”
“What would be the circumstances where the Registrar of Muslim Marriages would withhold his/her approval for a virtual solemnisation? Would this include a situation where one or both parties have yet to reach 21 years of age? (In English): In English, please. On to remote proceedings, as I mentioned earlier, this appears to be a new innovation which goes beyond what COVID-19 (Temporary Measures for Solemnization and Registration of Marriages) Act 2020 had provided. Can the Minister shed any light on the rationale for the introduction of this innovation at this time? Is it anticipated to form the norm for divorce proceedings in the Syariah Court, or will it remain the exception? If it is to be an exception, under what circumstances would we see remote divorce proceedings being deployed? And what would be the impact on Court users, especially when many of them are not represented by lawyers? In going about our constituency work, I think Members may be familiar with how certain issues can be easily ironed out once parties meet and speak face-to-face, whereas numerous earlier rounds and months of exchanging emails and letters may have done little to move things along. In moving towards an impersonal approach to divorce proceedings – through remote Court proceedings coupled with the dispensation from having to obtain physical signatures on documents anymore – are we not reducing the opportunities for a disaffected couple to work out their issues and making a final divorce an inevitable conclusion? Mr Deputy Speaker, Sir, exacerbating the concerns around divorce are the various other amendments in the Bill which appear to make it easier to obtain a final divorce.”
“Since this option was made available from May 2020, what is the number of couples who have applied for a virtual solemnisation with the Registry of Muslim Marriages, and how does this compare to the number of applications of an in-person solemnisation over the same period? I also note that while couples are now allowed to solemnise their wedding virtually, whereby one condition is that both parties to the marriage, the witnesses and the wali (guardian) of the woman to be wedded must physically be in Singapore, does the Registrar of Muslim Marriages have the discretion to waive this requirement in extraordinary circumstances? For example, when the COVID-19 pandemic broke out globally, there were Singaporeans who were stuck overseas and could not return for a certain period of time. If we are harnessing technology to make the solemnisation process easier for Muslim couples who wish to get married, I think it would be helpful to extend this to Singaporeans or Singapore residents who may be abroad at a particular time. However, one other concern that I have is whether doing away with the formal, physical attendance before a kadi (solemniser), a wali (guardian) and witnesses would diminish the degree of solemnness and the weight of responsibility that one would attribute to marriage. This is especially pertinent when it comes to teenage and youth marriages, which has long been recognised to be a source of various societal issues, such as high divorce rates, dysfunctional families, drug abuse and juvenile delinquency. In the context of civil marriages, it has been suggested that the Registry of Marriages will have the discretion to ask couples to go through the steps in-person where there may be suspicions of a marriage of convenience, for instance.”
“Mr Deputy Speaker, in Malay, please. (In Malay): [Please refer to Vernacular Speech.] Mr Deputy Speaker, the Administration of Muslim Law Act (AMLA) is a special piece of legislation. It provides for particular facets of Muslim life in Singapore, including marriage and divorce – alongside other civil laws and rules applicable to non-Muslims – in our secular and plural nation. The proposed amendments, which generally aim to keep the AMLA and its processes up-to-date, are timely and welcome. In particular, the digitalisation process utilising electronic communications instead of in-person appointments will greatly transform the Syariah Court and the Registry of Muslim Marriages. However, I would like to seek some clarifications from the Minister on certain aspects of the Bill. First, the Bill proposes to introduce new provisions to allow marriages and divorces to take place through a live video or television link. This not only makes permanent the temporary measures contained in the COVID-19 (Temporary Measures for Solemnisation and Registration of Marriages) Act 2020, in fact, it goes further to allow divorces to take place remotely with the permission of the Syariah Court. While the Office of the Mufti has issued an irsyad (guidance) that the use of video-conferencing for marriage proceedings is permissible under Islam, I have spoken to several young people who said that a wedding would only be meaningful if it is celebrated in the presence of family and friends. Hence, I would like to ask, what is the likely take-up rate of this virtual wedding option?”
“Mr Speaker, I would like to thank Senior Minister Teo Che Hean and the Minister for Transport for the Ministerial Statements and I think it is useful also to say thanks to the officers of the various agencies and Ministries for making this agreement a possibility between both Singapore and Indonesia. I have two supplementary questions. The first is in relation to what the Minister answered just now broadly. In terms of the FIR Agreement, how does it essentially improve bilateral transport cooperation between Singapore and Indonesia, particularly bilateral aviation ties, which Minister has mentioned, but going forward beyond airports? My second clarification is with regard to this agreement. It definitely provides a good opportunity for both Singapore and Indonesia to work together better within the 25 years and I think also beyond the 25 years. My clarification is on how we can actually see this as a positive outlook as we look forward in the post-25 year phase as technology changes and, particularly, in the area of air traffic control safety for both countries, Singapore and Indonesia.”
“Mr Speaker, I would like to thank the Senior Parliamentary Secretary for his detailed answer. It is especially good to hear that there is a detailed programme on inclusive service delivery. The reason why I asked this Parliamentary Question is also because of a resident's feedback, in the case of a child with special needs on a stroller that tried to get on board a bus. The bus captain did not offer any help simply because of the definition of a stroller, compared to a wheelchair, in that sort of scenario. My supplementary question is, despite the detailed programme on inclusive service delivery that has been laid out by the Senior Parliamentary Secretary just now, whether in the interim, in the transition, can we improve discretionary elements embedded by bus captains going forward to deal with such issues, especially the definition of "strollers" for special needs children or adults, relative to "wheelchair" definitions.”
“As the green financing sector grows, we will need to groom human capital early with the know-how to align investments with sustainability and green finance principles. The Green Finance Industry Taskforce announced plans to launch workshops for financial institutions and corporates to build capacity in green finance from May 2021 to April 2022. It is hoped, therefore, that more people will attend these workshops. I hope that the Government will do more. Will this be an ongoing educational programme? (In English): Mr Deputy Speaker, but beyond all these domestic efforts, our greening of the financial sector allows for a more effective way for Singapore to engage regional partners to accelerate regional climate sustainability projects. Our approach has been one of not curbing directly the financing of brown activity, such as palm oil or coal-related activity, but one that is to wait for greener alternatives to replace it. But what more can be done to engage and work with regional partners to accelerate regional climate sustainability which will be more effective in the long run? Mr Deputy Speaker, Sir, with strong support from the Government and our stellar reputation as a global financial hub, with a high level of integrity, we are in a good position to fortify this green economy pillar of our Green Plan. It is a fine balance to ensure that we achieve an "inclusive transition" to a low-carbon economy, with the participation of companies, financial institutions and other stakeholders in Singapore. In doing so, we must train to capitalise on new opportunities, strike the right balance to manage the trade-offs, and do more to raise awareness of our efforts to build a green economy. Mr Deputy Speaker, Sir, I support the Motion.”
“As our economy shifts towards a greener one, new employment opportunities in the green economy will emerge. The "Skills Demand for the Future Economy” Report released last year by SkillsFuture Singapore identified the green economy as a key job growth area for Singapore. The report highlighted that today, there are more than 450 job roles in 17 sectors that require green skills – including financial services, manufacturing, trade and connectivity, hospitality, and the built environment. We can expect more jobs to be greener. Take the UK for example. There are now almost half a million jobs in low-carbon businesses and their supply chains across the UK. Of which, it was estimated that there were about 6,500 employment in the sub-sectors of low carbon financial and advisory services (as of 2018). The low-carbon and renewable-energy economy in the UK was worth £46.7 billion in 2018, up 15% on 2015 levels. Hence, we need to find ways to develop a pool of talent to help Singapore remain as an attractive destination for businesses, especially those who place a premium on sustainability. It is important for the Government and businesses to help workers to equip themselves to take on these green jobs – whether within existing sectors or in new sectors. Time and opportunity cost on the part of the workers must also be factored in to allow them to acquire the new skills and to adapt to a greener business environment. One sector is the financial sector which will play an important role to provide the investment for sustainability projects and in turn, help to shape a low-carbon economy. But we must build and maintain the pipeline of green workers.”
“While the establishment of Climate Impact X, a new global carbon exchange established in Singapore to facilitate the sale of large-scale, high-quality carbon credits, is undoubtedly a promising development, it will be useful if the Government can share on how the carbon trading value chain is progressing. It would also be good to know our plans to further tap on Singapore's reputation for integrity and strength in professional and financial services, such as to establish a carbon credit registry to serve Asia, much like the Verra Registry and the Gold Standard Impact Registry in the US. There is a need to build or enhance the ecosystem which needs to link up the four types of key players: the upstream project developers, NGOs that certify the projects, brokers and traders to facilitate the access to carbon credits and end users, such as companies or individuals committing to offset part or all of their GHG emissions. Another aspect is we can also enhance the existing exchanges here as it develops standardised contracts for carbon credits and set a benchmark price. In addition, from an infrastructure perspective, the Government can and must eventually work on the regulatory oversight of carbon markets. This would enhance the integrity and standards of carbon credits traded here, making us more attractive as a hub. In addition, there may be a need to have plans to roll our developmental courses that we can upskill Singaporeans to take advantage of these new economic trends, especially those in the banking and financial services sector. Mr Deputy Speaker, in Malay, please. (In Malay): [Please refer to Vernacular Speech.] Finally, on the prospects for green financing employment growth.”
“There is also the voluntary carbon markets for companies and individuals, which can co-exist with compliance markets created and driven by regulation, essentially for companies or individuals to buy carbon credits voluntarily to offset their unavoidable emissions. Carbon markets allow for companies to buy and sell these tradable carbon credits that represent reduction, avoidance or removal of a certain amount of emissions from the atmosphere. According to estimates from McKinsey, the annual global demand for carbon credits could reach up to 1.5 to 2.0 gigatons of carbon dioxide (GtCO2) by 2030 and up to seven to 13 GtCO2 by 2050. Depending on different price scenarios and their underlying drivers, the market size in 2030 could be between $5 billion and $30 billion at the low end and more than $50 billion at the high end. The race to decarbonise in Asia is picking up pace with China introducing its national carbon market in third quarter last year, while other ASEAN nations, including Malaysia, Vietnam, Indonesia, Thailand and Philippines, have taken steps towards establishing their own frameworks to trade carbon credits. Singapore has also pledged to reduce carbon emission intensity by 36% from 2005 levels by 2030. It is therefore unsurprising that Singapore already plans to become a carbon services and trading hub. This is among the various recommendations of the Future Economy Council's Emerging Strong Taskforce (EST) in May 2021. We need to do this fast as part of our green growth plans as other countries in the region are also looking into it. Despite the opportunities, the carbon trading market has long been plagued by low liquidity, poor risk-management, limited data availability and inadequate financing.”
“Like a similar mechanism introduced in the EU, this aims to prevent carbon leakage, that is, companies transferring production to countries where climate change measures are looser than in Singapore and are "cheaper" to comply with. At the same time, this measure can help to promote greenhouse gas (GHG) reduction efforts in countries outside Singapore and to spur others to take climate change measures seriously. Three, as we increase carbon taxes and if we do so in various ways and various levels, I ask for carbon pricing to be part of a comprehensive mitigation strategy. It should contain support measures to enhance the effectiveness and adaptability. I think the Member, Mr Dennis Tan mentioned about just transition measures. And I would like to add on that just transition measures are indeed needed to assist low-income households and vulnerable workers when it is introduced. Four, while IMF economists have suggested that high-income economies should aim for a carbon price of US$50 to US$75 per tonne of carbon dioxide emissions (tCO2e) by 2030, we must be careful to pace any increase in our carbon tax so that businesses can adapt and not be forced to leave Singapore. One possibility is to first set the carbon tax level at least around US$8 to US$9 tCO2e, using S&P Platts CEC as a spot reference, or slightly higher to inject some urgency for emitters to accelerate their decarbonising plans. That floor is where the voluntary market is valuing and trading carbon "credits", a concept that I will turn to now. The other main way countries use to bring down carbon emissions is to establish a cap-and-trade system which caps the total level of greenhouse gas emissions and allow companies with low emissions to sell their extra carbon "credits" or "offsets" to larger emitters.”
“Mr Deputy Speaker, Sir, I rise in support of the Motion. We all have a responsibility to current and future generations to do our best to mitigate the negative impacts of climate change, while there is still hope. I would like to focus on two key words in the Motion: an "inclusive transition". This means our transition to a low-carbon society must benefit not just Singapore, but Singaporeans as a whole. To me, this also means our strategy cannot be "go green" at any and all costs. This is why the Singapore Green Plan 2030, launched in February last year, is a comprehensive strategy, which includes a green economy as one of its five key pillars. I aim to speak quickly on the green economy in three areas: transitioning to a world with carbon tax, carbon trading and green financing employment opportunities. First, moving to a carbon tax world. This year's review of the carbon tax level and its forward trajectory will be an opportune time to further elaborate on plans for our carbon taxation system. In doing so, perhaps, the Government can consider the following few points. One, to be effective in guiding behaviour, taxes must offer a certain and transparent price pattern so that businesses can project their potential expenses and plan accordingly. Instead of reviewing our carbon tax rate every three to four years, can we establish a fixed formula for the carbon tax rate to evolve over a longer period of time? Two, given that different countries may have different climate change standards and measures, Singapore may wish to eventually explore a carbon border adjustment mechanism to equalise the carbon prices of Singapore products and imported products from outside Singapore.”
“I note that SGX shares held by SEL are non-voting to enable MAS to play a dual role as SGX's regulator and FSDF's administrator, without conflicts of interests. But can the Minister share MAS' vision of how an exchange, such as SGX, can play a pivotal role in enhancing financial sector development and financial innovations, to drive Singapore’s long-term economic growth, especially given the challenges exchanges globally are facing currently, not only from direct competition, from regional exchanges, but also from technological disruption and various other ways of capital raising externally. After all, it eventually feeds as part of a stable source of fund into FSDF. Mr Speaker, Sir, on that note, I support the Bill.”
“If the other source is from investment income from the existing assets under management, how volatile is it? Are there future plans to further diversify the sources of funding for the FSDF? SGX – and, for that matter, most countries’ capital market exchanges – continues to be a pivotal player in Singapore’s financial sector growth and development. It is important to ensure SGX's survival and also to ensure it remains competitive. Its ability to attract listings and provide liquidity for companies will, eventually, translate, in part, into SGX's profits and eventual contributions to FSDF annually and feed into the pool of funds already accumulated in the FSDF. SGX is and remains an important financial vehicle for companies to raise capital through listing on the exchange. In doing so, it also offers opportunities for many retail investors, especially retirees who have some knowledge of the mechanics of stock trading, to try to add value to their savings. Companies use it to raise operating capital, while the investors use it with the hope to earn regular dividends and, hopefully, a rise in investment value. Over the years, SGX has grown in stature and is recognised as one of the leading markets in Asia. It has a market capitalisation of around US$678 billion in 2021. Certainly, for SGX, the competition is great, for it has to contend with the regional markets, especially Hong Kong, as well as markets in Europe and particularly, in the US. There are also many other spin-offs from the running of a successful stock exchange as it creates countless jobs for the many listed companies, apart from the accountants, compliance staff as well as auditors, all of whom would be involved in the regulatory reporting process.”
“This is so that Singapore could emerge stronger as a global financial centre in Asia. With the emergence of the Omicron variant and for future crises, I suppose FSDF would stand ready to support the financial sector if the need arises? And with the dent caused by the pandemic on our economy, has the FSDF expenditure changed? How many people took up FSDF’s training support schemes – financial training schemes and IBF training schemes as well as scholarships? Have there been changes in trends since the EDMA was introduced in 1999? Mr Speaker, it can be seen that, with this amendment, FSDF can benefit from SGX's payouts to shareholders, such as allowing SEL to participate in SGX rights issues, to receive scrip dividends in SGX's scrip dividend schemes and participate in other SGX corporate actions. And the new SGX shares are to be treated the same way as the Original SGX Shares. SEL would, with the Minister’s approval, also have the option, like any other shareholders, to receive the dividends in scrip or in cash. That leads me to my next question. What is the worst-case scenario if this Bill goes through? In what instances will the Minister not approve the SEL request and will there be an issue of liquidity for FSDF in the worst-case scenario, preferring cash to non-cash equivalents? My other question relates to sources of funding for FSDF. The role in which FSDF plays in terms of grants and also talent capability building, as well as the sector’s leadership talent pipeline, will be pivotal for the financial sector's growth and development. Can I ask what other sources of funds feed into FSDF, beyond the SGX cash and scrip dividends and rights issues and others? And what is the breakdown of these other sources?”
“Mr Speaker, Sir, I rise in support of the Exchanges (Demutualisation and Merger) (Amendment) Bill. The amendments would allow SEL Holdings Pte Ltd (SEL) as the special purpose company under the EDMA to strengthen itself by allowing it to hold Singapore Exchange Ltd (SGX) shares allotted and issued in connection with the demutualisation and merger for subsequent placements. The Original SGX shares are also held for the benefit of the Financial Sector Development Fund (FSDF), which is an important vehicle in helping to promote Singapore as a financial hub. This fund has been assisting companies to upgrade and train their staff to meet the demanding skills in the financial services sector. More than that, this fund has also been deployed over the years to carry out research and development projects relating to this sector and develop infrastructure support. Can the Minister share with the House how well-received is its various grant schemes granted under FSDF this year, especially the Cybersecurity Capability Grant (CCG)? And are there also any institutions looking into blockchain technology and carbon credit exchanges which have tapped into any of the grants? And what are the measures to ensure our grant expenditures are aligned with FSDF’s objectives? Even during the COVID-19 pandemic, FSDF launched a $125 million support package to sustain and strengthen capabilities in the financial services sector. The support package comprised new schemes to support digitalisation in smaller financial institutions and fintech firms. It also supported existing training and talent development programmes to support financial institutions, fintech firms and individuals within the financial services sector in navigating the economic downturn.”
“RMGS cannot be used to finance Government spending and neither can its proceeds be spent. So, it would not have any impact on our fiscal plans. Nonetheless, the current transfer mechanism faces constraints as the accumulation of official foreign reserves persistently outpaces the growth of Government deposits in recent years. This would be righted with the new RMGS mechanism. However, it is important to correct misperceptions that the policy is about financing the Government's spending and fiscal deficits. Notwithstanding these clarifications, Mr Speaker, I support the Bill.”
“If MAS redeems RMGS bond before maturity at par to meet OFR requirements and support the conduct of monetary policy, how much loss can the Government provision for? Next, since the transactions would be denominated in other currencies, would this make us more vulnerable to foreign exchange risks? Taking the US currency, for example, will MAS be overly exposed to the US dollar holdings in its assets? Given the inclusion of RMGS item in the MAS balance sheet with the passing of this Bill, can I seek the Minister to share what are the plausible worst-case scenarios from both an accounting, fiscal and market perspectives involved in undertaking these RMGS issues in the MAS balance sheet? My last question concerns the impact on net Singapore dollar liquidity. Would the accumulation of RMGS on the MAS balance sheet over time have any indirect effect on the liquidity of the Singapore dollar in the medium to long run? As we continue with "leaning against the wind" activity as part of our band basket and crawl managed float, will this new RMGS introduction affect our overall sterilisation activities and net liquidity flows into the financial system in the medium to long term? In addition, MAS' total RMGS holdings will be published monthly for transparency. This is a good thing for financial analysts and the informed public who wish to have a more in-depth understanding of our financial situation. But can I clarify if there are plans to release higher frequency data going forward and, if so, will it reveal too much information to market participants and thus infer our foreign exchange intervention activities? The specifications in the Bill are clearly spelt out to segregate RMGS from other Government securities and treasury bills.”
“Mr Speaker, Sir, this Bill will empower MAS to subscribe for reserves management government securities, or RMGS, issued by the Government. RMGS will help to facilitate continued transfer of official foreign reserves, or OFR, to the Government for longer-term investment with GIC. The goal is to help to promote financial stability. I wish to seek the Minister's clarification on some issues. First, the optimal OFR amount needed to support MAS' mandate is currently defined as being at least 65% of GDP. I understand that MAS reviews this amount regularly. As it is a key threshold in this arrangement for the RMGS bond issuance, do we expect this threshold to change over time? If so, what are the key variables that may shift this ratio? I note that there will be a separate RMGS issuance limit, which allows for greater transparency on RMGS proceeds and clearer segregation from other Government securities and treasury bills. Can the Minister share what is the RMGS limit and what is the maturity period or duration of the issued RMGS bonds? The Government will accept only foreign assets in exchange for RMGS issuance to draw a clear and direct link between RMGS issuance and transfer of OFR. This is meant to be an additional safeguard against monetary financing. However, in the case where the OFR falls below 65%, there will be a need for intervention. MAS cannot sell its RMGS holdings to other entities unless the Minister for Finance consents. So, RMGS cannot be used to raise funds from the market. Can the Ministry clarify how rigorously this policy will be enforced and under what circumstances might the Minister give consent? Next, how can RMGS be liquidated to meet the transfer of foreign reserves back to MAS for intervention purposes?”
“Mr Speaker, I would like to thank the Minister of State and also Minister Indranee Rajah for explaining that inflation will be assessed not to be persistent and that lots have been done through fiscal and monetary support so far. I have two supplementary questions. The first is whether the Government can assure Singaporeans that we can continue to monitor the situation and design targeted measures to help specific groups. That is my first supplementary question. Second, we have been talking a lot about prices of essential items. An issue that I am very concerned about is interest rates, which would trickle down and cascade into prices eventually. Singapore is a price taker. We know that. We take in a lot of imported goods from abroad. But we are also a price taker for interest rates. In particular, with interest rates expected to rise in 2022 and beyond, what will be its impact, especially when we are also trying to emerge out in an endemic scenario, whether there will be any ramifications of rates going forward, especially in accommodation and so on?”
“Mr Speaker, I would like to thank the Minister for his comprehensive answers. I have two supplementary questions. First, in relation to a Nikkei article on 4 December, I quote Indonesia's Deputy Minister of State-owned Enterprises, Mr Kartika Wirjoatmodjo, mentioning in parliament about Kualanamu Airport, which they are actually looking to operate in Indonesia's North Sumatra region. He said, "Kualanamu can be a base to reduce dominance of Changi and KLIA" and that GMR Airports group has committed 56 trillion rupiahs or $3.8 billion to support the expansion. My first supplementary question (SQ) is in relation to that. And the Minister mentioned and elaborated on the aviation hub outlook. Can the Minister share what are the risks of our regional partners trying to gain a foothold in our aviation sector in terms of its growth and hub status as well? That is the first question. Second, I am heartened to hear that CAAS is working to improve the airport ventilation rates, especially in a built environment. But the airport phase is key and I hope we can continue to enhance the airport phase's cleanliness, filters and airflows. My question is in relation to transport passenger volume. If we are going to grow it further forward, what measures can we take to enhance it even more because, definitely, with Changi Airport, we want to enhance the transit passenger volume even further as well.”
“Mr Speaker, I would like to thank the Minister of State for his answers. I have got two supplementary questions. First is in relation to my earlier Parliamentary Question (PQ), can the Minister of State share about the outlook for the productivity by sector, if possible, in 2022; and beyond 2022, given growth and other variables? The second supplementary question I have is, in relation to the second part of my PQ. Are there plans for MTI to do any further granular data studies to examine productivity, in terms of both labour and multi-factor productivity, especially during the COVID-19 period and possibly into the endemic period? The reason is, if we look at the actual hours worked data, which is good that it is in quarterly basis, whether there will be more measures that MTI plans to collect, going forward, similar to what other developed countries like in the US, so as to measure productivity more accurately, going forward?”
“Mr Speaker, I would like to thank the Minister of State for the answers. It is good to hear the Minister of State mentioned that the SRV scheme that has been very useful for the retail and tourism sector. But he did share that there were 157 travel agents which have ceased operations. My supplementary question is, in particular, about those working in the tourism and retail sector. I have a number of residents who used to work or are working in the tourism and retail sectors, which have been in partial limbo over the past one and a half years. My question is, whether we have the number of tour guides or retail frontline workers who have switched industries or switched jobs permanently. Can I also ask about the status of our local travel agencies in Singapore, and if they will survive, going forward? Also, what outlook can we expect for the retail sector and the travel agency business in this endemic scenario that we are going to face over the next year or so?”
“Mr Speaker, I would like to thank the Minister of State for his detailed answers. I have just one supplementary question and somewhat related to Question No 5 as well. Beyond the mitigation measures that the Minister of State mentioned just now – we are thankful for the support for expenses and other mitigation measures – can he give an update on other pre-emptive efforts? For example, the Retail Price Watch Group (RPWG). An update on that would be quite useful. Slightly more than a decade ago, we created that to keep a watch on retail prices and address concerns on any alleged profiteering and excessive pricing of daily necessities and food items. And the role of cooperation with retailers going forward, as a price stabiliser, I think that element of pre-emptive efforts might be useful at this point in time as we proceed into 2022. If we can have further updates from the Minister of State, please.”
“Moreover, the Government should address concerns with regard to the impact of the policy on the cost of living in Singapore. Mdm Deputy Speaker, I support the Bill.”
“So, I would hope that our residents do not have to feel deprived of their favourite overseas products because it has become significantly costlier to purchase overseas. Nonetheless, all this is happening in tandem with the scenario of a potential increase in local GST rates, which may take place by 2025. Singaporeans are still reeling from the economic impact of the pandemic. So, all these possible factors that may contribute to increased expenses may be very difficult to be taken as the normal scheme of things, even if the policy is necessary, and many countries have already implemented similar moves. A young resident tells me that he is feeling disheartened because he is still searching for a stable job after graduating, but costs of living are going up faster than he can find one. The widespread popularity of e-commerce and foreign marketplaces in Singapore would mean that increasing GST not only impacts businesses, it also indirectly impacts Singaporeans’ costs of living. So, it is important that we address it as such. With that said, I understand that some major multinational online marketplaces, in fact, already incorporate GST into their goods and services and pay it directly to the Government. So, the number of consumers affected by the new policy may be less than expected. Can the Minister share data on how this policy may impact overall inflation and living costs in Singapore, even at the margin, especially so given the already inherent pressures and delays from supply chain disruption risks? Mdm Deputy Speaker, this policy would, in essence, help to reduce loss of Government taxes and improve fairness for local businesses, but some clarity on the actual enforcement is necessary.”
“For example, if someone purchases a web design service from an independent designer overseas, is there any way for the authorities to track this transaction, besides self-declaration from the consumers? Would the Government work with international payment platforms, such as PayPal and Stripe, to better monitor the outflow of online payments from Singapore to overseas? Besides administrative issues, the fact that this tax on lower-cost goods would affect lower-income households is another cause for concern. Some Singaporeans buy products from overseas that they cannot find locally. They will now have to contend with significantly higher costs as a result of increasing shipping costs and GST costs and not to mention the supply chain disruptions that we are facing now. For the lower-income households, every cent in savings counts. Being driven towards local options that are initially more expensive than its foreign counterpart may be a win for the local retailer, but, for the low-income consumer, it would feel like a loss. A resident of mine recently learnt to shop online after receiving training from the Seniors Go Digital Programme. She has frequent backaches and was delighted to buy a brand of ointment from Indonesia, which is not available in any of the local supermarkets. She says it is much cheaper than her usual choice of ointment and more effective. With the new policy, she lamented that she may give up using it if it becomes too costly. So, I did tell her that she could try to suggest to some of our local supermarkets to bring in the product. As I understand, our local supermarkets and retailers have been heeding the Government’s call to diversify supplies.”
“The COVID-19 pandemic has accelerated the process of digitalisation and forced many brick-and-mortar stores to take their businesses online. The learning curve has been a steep one and some are disheartened when they discover that after getting their store online, the challenges are far from over. In the past two years, we had observed a significant increase in interest in online shopping. The borderless nature of the Internet would mean that Singaporeans also have easy access to foreign online marketplaces. Local businesses would now find themselves competing with online sellers from overseas, who are often more experienced and able to offer their goods and services at lower prices due to lower production costs and lack of taxes. The Government’s move to apply GST to lower-value overseas imports via air is highly anticipated and welcomed by the local businesses that I have spoken with. The business owners believe reducing the cost differences between buying products locally and overseas would, to some extent, help to drive the consumer traffic inwards. But to achieve its intended purpose, the policies must be pragmatic and enforceable. With the sheer number of independent foreign merchants that offer direct shipping to Singapore, how will this policy be implemented? Would GST be paid to the merchant or would consumers make the payment when their purchase reaches local customs? With this additional step of GST collection on an increased number of parcels, will this slow down the delivery process significantly? How could a possible decrease in delivery service standards be mitigated, while ensuring prompt collection of taxes? Mdm Deputy Speaker, for digital services, the absence of customs intervention could mean a higher possibility of tax evasion.”
“I believe, hence, we are moving to LNG as the alternative to fill the vacuum. This is where new offshore terminals will also add Singapore to a growing list of Asian countries deploying floating infrastructure. Can the Minister give the House an update on this undertaking and how are we coping with these LNG alternatives? When would LNG likely replace our demand for natural gas for use by gencos? And what steps are in place to avoid a worst-case scenario? Would it result in any supply shortage that may necessitate a back-out of supply to households? At this point, if I could resurface the question whether we should consider using nuclear energy as part of our energy resilience, not within the confines of Singapore, but probably from far afield, for example. This idea is not new and our founding Prime Minister Mr Lee Kuan Yew in 2008 had said that he had once considered tapping nuclear energy as the best alternative to fossil fuels for Singapore. Can the Minister share his thoughts on this, please? Next, the Bill empowers EMA to acquire, build, own and operate critical infrastructure, including generation capacity. May I ask how EMA would play its role if it is a genco, wholesaler and regulator? Would this not open it to a conflict of interest? I think it would be useful if the Minister can share on this point. This would only cause the electricity market not to be a level playing field for all participants, if you interpret it from a conflict-of-interest perspective. Lastly, can we also know how soon EMA would be embarking on building capacity and capability to build up its expertise to handle its expanded role in the next five to 10 years, especially so when this Bill explicitly highlights the fact that EMA's powers will be extended quite largely?”
“The July disruptions were blamed mainly on an unplanned shutdown at the Anoa field and planned maintenance at the Gajah Baru field, both located in Natuna, according to a report. Production in Natuna is down 27.5% from its previous peak to 370 million standard cubic feet per day. EMA had also said that the disruptions in supply from Indonesia's gas fields in Natuna had contributed to a spike in our spot electricity prices. "The recent spike could be attributed to a number of factors, including higher than usual electricity demand, the outage of several generation units, curtailments of gas from West Natuna, as well as low landing pressure of the gas supplied from South Sumatra," EMA reportedly said. In fact, in February 2020, the Energy and Mineral Resources Ministry of Indonesia said it would stop gas shipments to Singapore in the next three years to cater to domestic demand. "Gas exports to Singapore will stop in 2023 and we will use the gas for the domestic market”, Downstream Oil and Gas Regulatory Agency (BPH Migas) head Fanshurullah Asa said, as quoted from the ministry’s press release. Indonesia's gas exports to Singapore come from the Corridor Block, which has a supply of 300 million standard cubic feet per day. The gas supply will be channelled into the Dumai Duri transmission pipeline to be distributed to industrial estates in Sumatra, namely, the Sei Mangkei Special Economic Zone in North Sumatra, among other destinations. Our supply from Malaysia is also another uncertainty. The 18-year deal for delivery of natural gas was expected to start from mid-2006 via a new five-kilometre pipeline linking Petronas’ Peninsular Gas Utilisation Pipeline to the Singapore Gas Transmission System. There is no guarantee that the expiring contract will be renewed.”
“And with the need to invest in capital for the cables and the landing stations, how much more would these add to the cost for consumers, whether it is private or public built? What can our Government do to mitigate the higher cost going forward, maybe a few decades down the road? Next, could the Minister share with the House how do we ensure the reliability of the energy supply from these external sources? In recent times, we have seen how the COVID-19 pandemic disrupted operations in some countries. So, we need to think of contingencies so that we are not caught off-guard. Mr Speaker, in fact, on 15 October, EMA said Singapore's power utilities might have to switch to using LNG because of the reduction in piped gas supplies from Indonesia. The resultant effect caused spot electricity futures on SGX to spike on those days. This also prompted the operator of the LNG terminal, Singapore LNG Corp, to look into boosting gas inventory to bolster energy supplies. We need to learn from this and look at how to manage such a scenario. Another question is: if we are going to build a back-up capacity, how long can it last and do we have multiple sources for this back-up? How do we ensure, if one supply source is disrupted, the other external sources could still keep the supply flowing? I think some Members in the House mentioned this earlier, but it highlights the point that, besides diversity, we need to ensure that our external source supplies actually do not get disrupted significantly, even after diversification. For example, the natural gas supply to Singapore from Indonesia was disrupted in July and, as of October, the supply has not fully recovered.”
“As we are told by the EMA statement recently, the sharp rise in Singapore's spot electricity prices amid a global power crunch was exacerbated by a reduction in gas supply from Indonesia. Natural gas supply to Singapore from Indonesia has not fully recovered from disruptions in July, according to a news report on 18 October. We will have to diversify our sources of energy and importing solar power supply from Australia-Asia Power Link (AAPowerLink) is one option on the table. Another is to tap on electricity from Malaysia which is to kick-start a two-year trial starting next year to diversify the country’s energy supply. We are also part of the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project that is known as a “pathfinder” to a broader ASEAN power grid system. This will be just somewhat similar to Britain, which imports hydropower from Norway, helping to ensure secure, affordable and sustainable electricity supplies for UK consumers. Nordic power exchange, Nord Pool, held its first auction in September 2021 to trade electricity on a newly launched interconnector between Norway and Britain as both markets grapple with tight energy supplies. Mr Speaker, this Bill provides further enhancements to the role that EMA plays going forward and with extra powers. My first question is: in our outreach to the regional supply source and where subsea cables are needed to connect with Singapore, what does it mean for our energy infrastructure demands going forward? How will the evolution of technology in energy infrastructure affect us and, if needed, how much would it cost in terms of actual infrastructure and human capital requirements and where would these increased landing points be located as it comes in into Singapore?”
“Mr Speaker, Sir, I rise in support of the Bill. It is, indeed, timely that this Bill is introduced at a time when there is turmoil in the electricity market which has resulted in licensed retailers throwing in the towel in Singapore. The price distortions disrupted the SGX electricity futures market, leaving the retailers in the cold as they could not hedge their exposure to the price volatility triggered by the rise in gas prices overseas. This certainly highlights the importance of Singapore ensuring that it has a strong infrastructure in place as part of our energy security. Much has been said about going environmentally friendly and the power generation sector is certainly one big bloc. Decarbonising electricity generation is important and the gencos need to move from fossil fuel to cleaner natural gas. According to the National Climate Change Secretariat (NCCS), since 2000, the percentage of natural gas used in electricity generation rose from 19% to more than 95%. Hence, we have to cut the amount of carbon we release into the atmosphere. But what is important is how do we manage this migration and ensure that it does not result in a hefty burden being put on the shoulders of consumers – from households to businesses, and to Town Councils in the management of municipalities. As we know, on all fronts, costs are rising from construction, manufacturing to transportation, logistics and manpower. We have to also bear in mind that, in the near future, we would be having higher GST and other taxes to add to the cost of generating electricity. The Bill highlights the strategic move for Singapore to look at imports as the most viable option for decarbonising the power generation sector in the near to medium term. We are already importing all our energy supplies.”
“At the other end of the spectrum, I have residents who hesitate to top up their CPF because they are afraid if they need the money, they will not be able to get it out. These tend to be the people who have lower incomes, who would benefit most from the additional top-ups. The difficulty to tap on large sums of CPF savings in times of need, such as a major illness, remains a significant pain point. I hope the Government will take this into consideration and introduce greater flexibility into the system. Circling back to our performance on the Mercer Global Performance Index, our weakest link is the sustainability of the system, which was given a rating of 59.9 out of 100. What are the Government’s plans, moving forth, to improve in this area? Besides CPF, are we looking at other options, like tax-approved group corporate retirement plans? Are there plans to increase the CPF withdrawal age? The Netherlands, which is among the top ranking on the index, is raising its pensions withdrawal age from 65 to 67 years old in 2024. Naturally, any change to the withdrawal age should be done with great deliberation, without discounting the concerns of those who worry that they will not be able to leverage their CPF savings in times of crisis. Perhaps, improving flexibility of withdrawals in tandem would help to alleviate such concerns. Minister Tan See Leng, in his opening speech, had highlighted that amendments to the CPF Act aims to allow more flexibility and to simplify the CPF processes. I am supportive of the move to keep it simple and focused on the retirement objectives. Mr Speaker, Sir, I support the Bill.”