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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“If it takes a significant length of time, like a year or so, that is quite a significant amount of interest that is lost. So, how can transfer be expedited with minimal loss of interest? Mr Speaker, fifth, when shares or classes of shares in any approved corporation are purchased with money withdrawn from the Ordinary Account, the designated shares will vest in the Board when the Board is notified that the shareholder is deceased. So, who makes the decision if there are rights issues, or opts to sell the shares because of mandatory purchase by a majority owner? Mr Speaker, Sir, most Singaporeans agree that CPF savings are essential. They also appreciate that it is a safe and effective way to grow one’s retirement savings. I was a member of the CPF Advisory Panel from 2014 to 2016 and one of the recommendations was that every CPF member should be encouraged to have his or her own CPF LIFE plan with incentives to top-up the CPF Accounts for families with lower balances. This is especially important for housewives who are relying on their husband's CPF LIFE payouts, as women tend to outlive their husbands. The Panel had proposed then that members be allowed to transfer their CPF savings above what they require for Basic Retirement Sum to their spouses' Special or Retirement Accounts. In this way, each spouse would benefit from the extra interest for lower CPF balances and have their own lifelong income from CPF LIFE. So, I am glad to see that amidst the uncertainties of the pandemic, there was a 40% increase in the number of members who made voluntary top-ups of their own or for their loved ones’ CPF savings. This is a testament to the trust that Singaporeans have in the CPF system.”
“The topic of death remains a heavy one to broach and some CPF members tend to take it for granted that there will always be a seamless transfer of CPF monies to their families. I would take this opportunity to remind all that life is unpredictable. We all know that. Arranging how our assets will be distributed would bring great peace of mind. I also urge the Government to remind members in simple terms, if possible, and make it easier for them to nominate their beneficiaries. Next, can the Government clarify the amendment to abolish refunds of Retirement Sum top-ups to the giver in any event? As far as I am aware, refunds were never supposed to be given for accepted top-ups under the Retirement Sum Topping-Up scheme. And this is especially so because members who make CPF top-ups get personal income tax relief based on their contributions. This policy is clearly stated on the CPF website. So, can the Ministry clarify what were some circumstances under which refunds were approved, if any? Third, I note with interest that the amendments also seek to provide greater flexibility and efficiency in the administration of the Act by providing for certain matters to be prescribed by subsidiary legislation, or to be determined by the Board or the Minister, instead of being stated in the Act. May I clarify if this is being introduced with the various appeals for greater flexibility of CPF usage in mind? Fourth, how long would it normally take for the CPF monies to be returned to the beneficiary when the CPF member has passed away? I think many members have raised this. I note that the payment of interest would cease upon notification of a member’s demise in respect of the amount outstanding to the credit of the member that has not been transferred to the general monies of the CPF.”
“Mr Speaker, Sir, I rise to speak on the CPF (Amendment) Bill. Projected inflation in a post-COVID-19 world has caused much anxiety. Many people are getting increasingly worried that they will not have enough savings to support retirement. We can take heart that our CPF is an acclaimed retirement income system that is a constant work-in-progress. The Government is always reviewing and refining it to ensure it stays relevant with the times. The latest Mercer CFA Institute Global Pension Index report graded our CPF system as being on par with countries like Finland, Sweden and Switzerland. The grading meant that it has a sound structure with many good features but some areas for improvement. I believe our Government is always working towards closing the gaps. I would like to seek some clarifications, Mr Speaker. First, I note that there are plans to allow the Public Trustee to disburse un-nominated CPF monies to a beneficiary representative on a member’s death. The beneficiary representative would then distribute the monies to the beneficiaries. This would apply if the total amount of the member’s CPF monies does not exceed the specified limit. Does this policy serve to benefit the family of members who did not name any nominees? This would be welcomed as I have residents who are still waiting for years to resolve the distribution of CPF monies. Can the Ministry also clarify how this process will be simplified and sped up? Who is eligible to be a beneficiary representative and what is the specified limit? With that, I understand that there is still some amount of hesitancy towards nominating beneficiaries.”
“Mr Speaker, thank you. I thank the Minister for his answers earlier. I have got two supplementary questions. First, the Minister mentioned just now about trying to enhance consumers' reduction of their energy consumption to manage their costs while also allowing us to achieve our climate goals. What more can the Ministry do to enhance this even further, in terms of letting consumers manage their costs through reduced energy consumption? The second question is related to what Member Mr Gerald Giam asked. I am very concerned about the affordability of electricity prices. Consumers can no longer enjoy the very competitive prices under OEM, compared to the regulated tariffs. So, the question is, in the worst-case scenario of retailers falling to zero – we do not want that to happen, but if it falls to zero from nine currently – do we have to go to U-Save rebates for vulnerable families going forward many times, given the volatility of the markets? And if it is triggered, what more can we do to other groups, rather than just the vulnerable groups? Are there certain segments that we can help, beyond the vulnerable segments, to weather the storm?”
“Mr Speaker, I would like to thank the Minister of State for the answer. I have got two supplementary questions. One is that I am happy that the Minister of State mentioned that the rental waivers are being provided to the stallholders. But my question, first, is, how many school canteen assistants are affected by the school HBLs and the ensuing stall closures? I have been approached by a number of our residents who are school canteen assistants, which are probably slightly more than the school stallholders. The second question is, what form of assistance can we provide for them to access CRGTs and other assistance, if possible, especially for the school canteen assistants, who could be residents of some of us here in the Chamber?”
“To wrap up, Mr Speaker, our success in globalisation is not something that came with the drop of a hat. As far back as in February 1972, our then-Foreign Minister S Rajaratnam visualised embracing the world as our hinterland. We were faced with many challenges but, instead of crying foul, we came up with new ideas and bravely ventured ahead. We had to change our mindset from being an entrepot centre to looking globally. We were put on the path to be a Global City. That vision, that wisdom, has helped to put us where we are today. I quote the late Mr Rajaratnam in his speech saying: "But the Global City, now in its infancy, is the child of modern technology. It is the city that electronic communications, supersonic planes, giant tankers and modern economic and industrial organisation have made inevitable. Whether the Global City would be a happier place than the megalopolis out of whose crumbling ruins it is emerging will depend on how wisely and boldly we shape its direction and growth." Very true, words to remember: how we can be a happier place would depend on how wisely and boldly we shape its direction and growth. That is what we are called to do today. [Applause.]”
“I support the Motion in the name of the Minister for Finance, as it affirms that Singapore needs to stay open and connected to the world; it acknowledges the anxieties whilst, at the same time, laying out the existing calls for enhancements needed for policies to secure the livelihoods of Singaporeans in the long run. The latter, too, does not stir up racism and xenophobia and is mindful of securing Singaporean jobs and livelihoods in the long run.”
“There have been calls from Members of this House, including Members from the Workers' Party, for us to be more expedient in granting Permanent Residency, or PRs, and citizenships, especially for family members of Singaporeans. So, I think it is pertinent. So, let me give an example from the ground. A 40-year-old resident, who is a Singaporean Citizen, works hard as a private hire car driver, has a Malaysian wife and children who want to be PRs. The question is, how long does Mr Leong want her and the children to wait before they can be granted PR status? I think most of the Members in this Chamber have, from time to time, seen residents coming to them for help in this regard. And how long do you want their children to pay more for their school fees? So, I would like to pose that question to Mr Leong. And to go on, I urge all, in Singapore, we need to channel our efforts positively towards building back better, which begins with an understanding that our challenges are complex and cannot be resolved by narrow ideology on globalisation and foreign talent policy. Understanding the complexity of modern society, the working relationship of democracy and capitalism, and recognising the prevalence of externalities are the first steps towards genuinely healing our social, economic and financial issues amid this current crisis. For those broad reasons and various reasons I have mentioned in my speech, I am not able to support the Motion in the name of Mr Leong Mun Wai.”
“But ongoing trends by MNCs and companies globally, via offshoring before and still now, build-up of "digital labour markets" have the potential to radically alter the global labour market, thus overshooting in foreign talent policy responses by any country may lead to more negative outcomes and, worse, it supports xenophobic and racist behaviours that can worsen domestically. These digital labour market platforms can connect workers worldwide with companies seeking to have tasks completed and, with technology, this can go beyond data entry and programming roles only. Worse, if the MNCs see Singapore’s hub status eroded because of too tight foreign talent policies or any signalling thereof in that direction. And here I would like to refer to Mr Leong Mun Wai's suggestion earlier that he intends to recommend PRs and new citizenship numbers to be reduced, going forward. I just want to highlight that – and I think some of the previous speakers have mentioned this – the debate today is mainly about foreign manpower vis-a-vis our economic strategy. Immigration is a separate topic which covers a much broader range of imperatives. Immigration and work passes are separate regimes with different considerations. Immigration policy is very carefully calibrated. Potential applicants know that we are very strict in Singapore. Our population growth over the last decade has been the lowest since Independence and we have kept the size of our PR population stable for years. Many of our new citizens and PRs are spouses of Singaporeans and parents of Singaporean children. So, I would like to ask Mr Leong Mun Wai, does Mr Leong think that these family members of our fellow Singaporeans ought to wait longer?”
“I think the Leader of the Opposition mentioned this, and I have mentioned this in my Adjournment Motions previously in 2019 and on various occasions. I understand that I have been very persistent in this, but I believe it will bring about several benefits. Fewer companies are sending Singaporeans overseas for training in this climate. So, why not redeploy the funds to support the costs for employers to have their new and existing local hires receive training and mentorship under a more experienced and skilled foreign employee in the company? In the long run, this helps to build up the local talent core. It helps to reinforce the main purpose of having foreign talent in the first place, which is to help companies, including local employees, improve as a whole, not to steal our jobs. The foreign employee would receive a boost to his CV. It is a winning situation for all. Mr Speaker, as we debate the issues of foreign talent policy and jobs, be mindful that globalisation of labour and talent has always been much slower to globalise, compared to via the movements of material goods and financial capital across countries. This is due to the complex nature of talent, the apprehension of domestic populations on attracting labour inputs from abroad and host the individual, either temporarily or permanently, near the location of the work to be performed. For a variety of reasons, this has proven politically unpopular and nearly all countries place restrictions on migrations, Singapore included.”
“With the recent tightening of foreign manpower restrictions and newly enshrined anti-discrimination laws coming, I believe, gradually but surely, more Singaporeans should, eventually, find their anxieties easing. But this does not solve the immediate problem of a skills shortage in the sector. In the financial sector, for example, in the foreign banks, the deliberations on foreign staff recruitment are done at the bank's global HQ level to fill any shortage of skilled staff and are based on specific global business needs and internal human capital movement requirements. Therefore, to ensure that at all levels of the bank, the locals will eventually be the majority, may not be possible, given the global nature of these decisions. All said, I must point out that there are Singaporeans who are holding senior roles in the foreign banks based on merit and it is not necessarily a situation where foreigners are the only ones dominating the senior positions. I, for one, know, and even if you do a quick search on Google and LinkedIn, it will show Singaporeans heading the business units or are in very senior positions in the Union Bank of Switzerland or UBS – I will not mention the names – even in Julius Baer, Deutsche Bank private banking, HSBC private banking and Pictet, and also Singaporeans holding front office positions, such as the Global Head of Treasury Markets at Standard Chartered Bank. I am sure there are many more. And, again, with the recent tightening of foreign manpower restrictions and the newly enshrined anti-discrimination laws coming, some of these anxieties can be addressed where there are wrongful practices. In addition, I would like to urge the Government to explore even the possibility of enhancing the Capability Transfer Programme.”
“Singaporeans across different generations have gone through different crises where they had to rechart their pathways due to the limitations of those times, for example, during the Asian Financial Crisis or even in the post-Independence days. Today, many may find themselves sharing similar emotions of disappointment and anxiety. But the difference is we have a lot more resources today than our parents and grandparents did, and we can afford to remain much more optimistic, as long as we manage our expectations and do our best with the opportunities that are available. Let us enhance our efforts to strengthen our Singaporean Core of workers. I would first like to take this opportunity to convey my appreciation to the Government for making the significant decision of enshrining TAFEP fair employment practices into the law. Fair employment is a subject that has always been very close to my heart. Only when there is equal accessibility to employment opportunities can we then talk about creating good jobs for all Singaporeans. Now that TAFEP has been given more powers to enforce penalties against workplace and employment discrimination, this will alleviate some of the anxieties experienced by our older workers and minorities. (In English): Mr Speaker, my next point is on PMETs working in sectors where foreign talent is perceived to be a threat. I work in the financial sector and I do talk with those in the sector as they share their lived experiences. I can empathise with them and their concerns. Understandably, some sectors, especially the ICT sector, face a talent crunch too. Employers find that, in the short term, it takes too much resources and time to hire and train a Singaporean. So, they would prefer to hire an experienced and skilled foreigner.”
“Another group that is understandably anxious would be the students who have just graduated or are graduating into the pandemic – the University, Polytechnic and ITE graduates. I am glad to note that from April 2021, demand for SGUnited Traineeships or attachments has eased as fresh graduates found other traineeships or full-time employment opportunities. Others take on contracts for a year or so. But some are still having trouble landing full-time permanent jobs and are relying on internships and side projects. This is currently a global problem for all graduating cohorts, as companies worldwide scale back on headcounts. They also face competition from other Singaporeans who are also looking for jobs. And in taking up side projects and gigs online, they may also find themselves coming up against competition from overseas. Globalisation or its association with foreign talent flows cannot be faulted for this. Rather, the situation arises because of the COVID-19 pandemic. Before the pandemic, many local students had benefited from exchange programmes and internships overseas. It is a global competition because the whole world is in the grip of this pandemic. Mr Speaker, I think it is important to acknowledge the uncertainties and fears in the current economic climate. But it will do us no good to maintain a pessimistic outlook, because that will only cause us to miss out on other opportunities that have arisen from the crisis. Indeed, many have found themselves having to put their dream jobs on hold and taking up entirely new and unexpected career paths. Some young residents became part-time swabbers to earn an income, unexpectedly discovering their interest in healthcare and in that sector. Such stories are, in fact, quite common.”
“In fact, most Singaporeans recognise that learning digital skills is the only way forward. According to a recent survey, 98% of respondents aged between 56 and 65 believed in reskilling and upskilling to stay relevant. The SGUnited Mid-Career Pathways programme has been extended and enhanced to cater to demand. I hope to call on the Government to share on future long-term plans for the programme and enhance it further with updates or a review, and whether we will see a greater variety of jobs and roles. With the Tech Skills Accelerator programme (TeSA), which was launched in 2016, there are courses for mid-career jobseekers without relevant experience to train them to be software developers, data analysts and UX designers. International big tech companies like Google and IBM, as well as local employers, had joined in to provide courses and traineeships. Between April 2016 and September 2020, TeSA placed over 7,000 Singaporeans into tech jobs. I hope to see plans by the Government to increase the availability of such mid-career training and placement programmes for the tech sector, particularly for mid-career job seekers who are currently facing difficulties. I believe this would help to alleviate some of the manpower crunch for the tech sector, while helping more mid-career job seekers to land skills and jobs in a rapidly growing industry. So, for those who are in this age group, there are ample opportunities to upgrade your skills set, acquire new skills and help you rise up to meet the challenges. Globalisation and digitalisation open up new chapters in our life. We see many who were able to switch careers so that they do not get trapped in sunset industries.”
“Under SG Digital, there is a plethora of programmes and grants to help businesses, individuals looking to get into the relevant sectors and the community of people who rely on it for their daily life. With the increase in digitalisation of more industries, this is already creating a global demand for ICT talents and relevant roles in maintaining the security and functionality of these digital systems. This has contributed to the increase in the number of ICT talents working in Singapore. The benefits of globalisation for small open economies, such as Singapore, are there, but there are challenges associated with globalisation and Minister Lawrence Wong has highlighted that and a few other Members here as well. We need to take stock of the current tensions arising from the uneven distributional effects of globalisation, we know that and the potential dislocations posed by new technology. The Government has, over the past decades, taken practical policy measures to mitigate the side effects of globalisation and achieve inclusive growth. We should enhance these efforts, as mentioned in the Motion by Minister Lawrence Wong. But at the same time, we need to also be cognisant that we are an economy in transition facing a demographic shrinking population issue, rising inequalities and competitiveness issues as we become a more mature economy. Mr Speaker, in Malay, please. (In Malay): [Please refer to Vernacular Speech.]: One segment of Singaporeans who are facing the effects of globalisation daily are mid-career jobseekers and employees in the age range of 40 to 60 years, who are worried about the current employment situation and the inclination towards digitalisation. This is not because they do not want to pick up new skills.”
“One example she gave was being good with understanding accents and another was being cognisant of the needs of some international colleagues who needed time off for religious activities and having an adequate support system in place. Consequently, she also noted the threat of remote working from anywhere in the world casting a shadow of instability on jobs. While it is important to stay vigilant and humble, Singaporeans have little to fear because we have good international reputation and unique ability to contribute a global mindset to the employer. But what is clear is that there other more pertinent and major challenges to our Singaporean jobs in MNCs, such as disruptive technology and digital labour markets or remote working. Globalisation is not only seen in economic activities. It also includes the proliferation of technologies where communications and distribution networks are becoming very significant in people's life. This brings me to my next point, on digitalisation of the economy. In Singapore, technological adoption is even more urgent in view of the country's ageing population and compositional shifts of the labour force over the next decade. The working-age population has probably peaked already in 2018, 2019, and the resident labour force growth will slow to 0.7% per annum over the next decade, from 1.6% per annum, on average, between 2011 and 2016. So, for Singapore to sustain healthy growth and living standards to continue rising, it must keep leveraging technology to drive productivity growth and new growth areas, such as, for example, in smart energy, healthcare and technology-related sectors. That will constitute part of where the opportunities will lie. The Government has taken the lead to create a nationwide movement dedicated to this.”
“That is also because our Government has invested in some of these regions and has kept a relatively comfortable stance on foreign talent as a key hub for many sectors. We have to be mindful that any change in stance to foreign talent or signs of xenophobia creeping into our policies will signal to other countries this shift in the markets and, inevitably, in the long run, also have an impact on our future Singaporean workers venturing abroad. With the pandemic, more Singaporean talent abroad have decided to come home. But they have brought back with them highly-valued international insights on innovation and culture. As representatives of Singapore, they shared the Singaporean work ethic of high efficiency and reliability to the rest of the world, so that Singaporeans would remain sought-after employees. Our policies in Singapore have contributed to that, eventually with them coming back home. Globalisation allows for different cultures and economic systems around the world to become connected and to integrate with one another because of the influence of large multinational companies and of global communication. Yet it takes a certain type of person to truly comprehend this and turn this into an advantage. I met a resident whose experience I thought was interesting. The Singapore resident works in an international petroleum trading company in Singapore which trades across Asia, Australia and the Middle East. She said that when the pandemic broke out, the Singapore office was literally the only office that was getting things done. And because of Singapore's multicultural and multilingual characteristics, the multinational staff here were able to help fill the gaps in communications between the other offices.”
“In the meantime, for small and open economies, continued engagement with world markets in various ways, including FTAs across many countries, including the US, Australia, China and even India. It is not a choice but an economic imperative. It is because of our persistent belief in free trade and our active engagement with countries that are willing to be equal partners, in areas of trade, travel, services and so on. In spite of some adjustments to our trade policies over the years, we remain one of the most market-oriented and open economies in the world. By participating actively in the global economy, we have made it easier to move internationally and this, in turn, accelerates the factors for labour mobility, enabling Singaporeans to seek more opportunities and experiences overseas. The discussion so far, from the start, has been mostly about domestic jobs created for Singaporeans in Singapore which is valid and which is really something that we should discuss. But we should also discuss about opportunities for Singaporeans going abroad and the fact that our discussion today, talking about these two Motions – in my view and also in talking to the markets – is very closely watched by the rest of the world. In particular, concerns about our principles of free trade and our view on foreign talent have an impact on how we are perceived by the rest of the world. As of 2019, the population of Singaporeans living and working overseas stands at over 34,000 and may be even more. We are sought after in regions of growth, such as China, India, the Middle East, Malaysia, Vietnam and Indonesia and many more countries, I am sure, because of our skills and bilingualism.”
“As a global financial centre, Singapore is ranked fourth, behind only London, New York and Hong Kong and ahead of Tokyo, in the 2018 Global Financial Centres Index. Total assets under management in Singapore stood at S$4.7 trillion in 2020, having increased at around 15% to 17% compound annual growth rate over the previous five years. In fact, the financial and fintech sectors created 2,500 jobs and are expected to create 6,500 more in 2021, particularly in technology, wealth management, corporate banking and insurance. So, I was a bit confused when Mr Leong Mun Wai mentioned that over the past 10 to 20 years, opportunities for Singaporeans and in various sectors have not improved. Singapore is also a favoured location for multinational companies with more than 7,000 operating some form of headquarters in the city-state. It also hosts 4,200 regional headquarter operations. This is considerably more than Hong Kong with 1,389 regional headquarters, Sydney with 533, Tokyo with 531 and Shanghai with 470. We have many Singaporeans working in these MNCs, some of whom are also in this Chamber now. Despite these core strengths, Singapore's economy needs to continue growing. By how much is a matter of debate. Arguably, to remain an attractive and vibrant economic hub, Singapore's economy needs to grow at around 2% to 3% a year, which is feasible for a high-income country, such as Singapore. The challenge, however, is finding where this growth will come from to continue creating jobs for Singaporeans without coming up with changes to measures or policies that may unravel our long-term growth.”
“Mr Speaker, Sir, first of all, I would like to declare I am an employee in a foreign bank in the financial sector. I would like to join the debate by focusing on the related issues of globalisation and digitalisation as they relate to the two Motions. The Motion by the Minister for Finance, who actually has elaborated on how FTAs and the efforts by the Government to help raise livelihoods have created many quality jobs for Singaporeans. A very stark contrast to PSP's Motion by Mr Leong Mun Wai, which casts doubts in some way, on our various FTAs and the various FTAs he mentioned earlier on. So, very important, a stark contrast. I will also talk about how Singaporeans, especially mid-career employees aged 40 to 60 and PMETs in sectors perceived to be affected by foreign talents and students who hope to join the workforce and how they should take advantage of the new opportunities in spite of the current economic environment. First, we have benefited from globalisation in many ways in Singapore. Singapore and other countries in the region have reaped substantial dividends from pursuing an export-oriented development strategy. By opening up our economy via multilateral and bilateral free trade agreements and participating in global value chains, we were able to industrialise and grow rapidly for long periods and, in the process, transform into middle or high-income countries. Inadvertently, Singapore has built a reputation as a key hub in Southeast Asia and, in some cases globally, for finance, transhipment activities, business services, transportation and logistics. We should do our utmost to keep it that way. We also have a robust manufacturing base, which is a key node in the complex value chains that wrap around East Asia.”
“Mr Deputy Speaker, I would like to thank the Senior Minister of State for the answer. I have one supplementary question and I think I should give the context about why I am asking the question. I have a few residents who have asked in relation to some of the childcare centre closures because of COVID-19. They have been affected and the main reasons are varied. First, it affects a large number of parents at one go. Second, if we do face an endemic scenario, going forward, and we do see start-stop scenarios, there will be multiple childcare centre closures, particularly because of the third point I am going to mention, because childcare centres cover a segment of the population which are parents with children below 12 years of age and they are not vaccinated. So, the possibility or probability will be higher that the closures would be there. Fourthly, some of the parents that came to me highlighted situations where the employers are not enlightened with regard to flexible work arrangements. In those type of scenarios, it does matter. My question to Senior Minister of State in relation to my Parliamentary Question is if we do see starts-stop endemic scenarios for the next one to two years, is it a possibility that the Ministry of Manpower (MOM) or multi-agencies will look into the fact we could provide special parents' leave or special childcare leave on top of the annual leave or childcare leave that is already in existence, because the centre closure might cover beyond 14 days or maybe up to a month?”
“Can the Government, perhaps, look into dangling more carrots, including more grants and loans, where pro-family employers can benefit in other areas? This could be similar to how the Government provides higher subsidies for hiring of mature workers. And, likewise, it would be a temporary move, so, when the economy improves and the employer is able to see for themselves that the effort of implementing family-friendly policies pays off in the long run, they would have an existing system in place and will be inclined to continue with it even without external rewards. Mdm Deputy Speaker, COVID-19 has caused many Singaporeans to postpone or even cancel their plans to have children. For those who go ahead to have children, the poor economy has made parenthood a greater struggle, on top of other social distancing measures that have greatly disrupted play time and the social lives of our young ones. It is prudent to have support measures so that our current generation of little ones may at least have a happy and healthy early childhood. Mdm Deputy Speaker, I support the Bill.”
“However, there are some employers and recruiters who still believe that high productivity is only possible when work is not disrupted. They want to hire the employee who takes as little leave as possible. Last month, my colleagues and I moved our Adjournment Motion on workplace discrimination. My colleague Mr Louis Ng spoke about how some women were passed over for job opportunities simply because they were mothers. The Government can offer any amount of leave benefits. We can even try to emulate Sweden and give parents an entitlement of 480 days of paid parental leave once a child is born or adopted. But all this means little if employers are passing over parents, especially mothers, for job and promotion opportunities to begin with. Under normal circumstances, when the economy is prosperous and the labour market is tight, it is easy to say that employers with poor employee welfare policies will find themselves penalised with greater difficulty to hire and retain talent. Unfortunately, more people are seeking employment than before. I am concerned that improving employees’ welfare may take a backseat for some employers, although this really should not be the case. I hope the Government can do more to reward companies that are genuinely pro-family. The Government already offers leave benefits and reimbursements, as well as grants to cultivate family-friendly workplace polices. We all know there are many long-term benefits when companies have engaged and happy workers. Unfortunately, many are more interested in quick fixes, especially with the current pandemic. So, even if they are essentially funded to redesign their company policies, they may feel the effort is not worthwhile.”
“Even the need to get a Notary Public to sign off a document can be a challenge as it means having to find their office, travel to and from the lawyer’s office, showing the original documents for inspection and, finally, paying for the fees. Mdm Deputy Speaker, on this subject of mental health, I am glad to know that the amendment to the Bill extends support to parents with stillborn children. It is indeed very thoughtful that we are extending the birth-linked leave and benefits to these parents as they work towards recovering physically and emotionally. I hope the Ministry would also consider subsidising a quantum of any counselling services that the parents may need to undergo to overcome their distress. This would also, hopefully, go some ways towards normalising the need to seek help for one’s mental health. These are very challenging times and many have already found their mental health to be affected by the pandemic which has lasted more than a year. To experience the death of a loved one on top of all these problems is nothing short of devastating. A group of people that we really need empathy from is employers. Pro-family employers are crucial in shaping a nation and culture that are sensitive and encouraging to the needs of parents. Over the years, the Government has ramped up its policies and expanded the pool of parents who are eligible for paid parental leave. With the amendment to this Bill, employers who voluntarily grant leave to their employees who have not met the minimum three-month employment criterion for the various parental leave schemes will also be reimbursed. Employers who do their part to support nation-building and child-rearing must continue to be lauded.”
“On behalf of my residents, I would also like to clarify what is the definition of self-employed in the Bill. I think that gig workers and freelancers like delivery riders should fall under this category. However, a number of residents are telling me that they are quite doubtful, because they do not have employment contracts. A number of them have only started working as delivery riders this year as a last resort, so, they have not filed their income tax returns either. This group, generally, also tends to be the hardest hit, because their earnings are directly dependent on the number of hours worked. If they take a break to tend to childcare needs and if a COVID-19 situation closes down a specific childcare, then they miss all the earnings for that timeframe. Can the Minister share if they get any entitlements? And what is their recourse if they do not? Mdm Deputy Speaker, welcoming a newborn should also be a happy occasion for all. But many after-birth healthcare expenses for both mother and child require money. Not only that, but the costs for transport to and from the clinics and hospitals as well as special nutrition for mum and baby all add up. When families are in a stressful situation, the mother, and, sometimes, even the father, too, are prone to post-natal depression, which presents another set of challenges. So, it is important to keep the processes to receive financial grants and aid simplified without compromising governance, so that the applicant would not be put to more stress having to answer a whole gamut of questions.”
“It is timely to introduce the Government-Paid Paternity Benefit (GPPB) and the Government Paid Adoption Benefit (GPAB) schemes for working fathers and adoptive mothers who are on short-term employment contracts or whose employment contract had expired before their child was born or adopted. The enhancement of benefits for fathers is, certainly, the right move to improve gender equality. And adopting children, especially in this challenging climate, is a virtuous act that should receive support. I note that eligible parents can only apply from December 2021. So, I would like to ask if this can be brought forward. First, this will provide some relief to parents who are feeling anxious and, secondly, this will lower the possibility of confusion amongst parents who take the effort to apply and then realise that it is not yet open for application. (In English): The Bill proposes to grant Government-Paid Maternity Benefit (GPMB), GPPB or GPAB top-ups for parents who have been retrenched but have unconsumed parental leave. Can the Minister elaborate what is the process for affected parents? What kind of documents and evidence will they have to provide, if any? I think the Minister of State provided some details earlier, but further details might be useful, especially for the man in the street. What happens if the company they work for is winding up? How do the claimants secure the relevant HR records? So, these are specific details that I am asking for. It is a common problem that when the office is in somewhat of a mess, it will be challenging to retrieve records. If the company is unable or unwilling to provide the required information, even going as far as to cut off contact, what can the affected parties do to be eligible for their entitled grants?”
“Mdm Deputy Speaker, I rise in support of the Bill. The proposed amendments are, indeed, helpful in filling the gaps, especially in the current business environment where job losses and business uncertainty are commonplace. Today, I will speak about my thoughts on benefits for retrenched parents, support for parents of stillborn children, followed by support for pro-family employers. Mdm Deputy Speaker, in Malay, please. (In Malay): [Please refer to Vernacular Speech.] Firstly, I would like to state that I empathise with parents who have babies or young children while struggling with loss of income and uncertainty due to retrenchment. I have encountered several cases among my residents who are parents and not long after having their child, lose their jobs; and the family has to scramble to seek financial support. Such situations are daunting because families would not have expected this unfortunate loss of employment to happen. This is especially difficult for mothers, who will experience a lot of anxiety as well as social and emotional trauma due to concerns, such as how they will be able to provide food or milk to their newborn babies. Even if they are able to find short-term contract jobs, there is a lot of uncertainty in the current market whereby some of them quickly find themselves out of a job after a few weeks or even after a few days. There are many business owners and self-employed persons who are also experiencing problems. They may find their incomes cut drastically or they may fall into debt and have to close their businesses for an indefinite period. In such situations, many families are not entitled to normal leave benefits that comes with a conventional permanent employment contract. So, it will be good if the Government can make exceptions to help them.”
“With the current global labour competition and economic climate likely to be sustained moving forward, Singapore needs to strengthen our measures, take a leaf out of other countries’ legislation on fair employment and hiring practices and look into anti-discrimination laws to protect our Singaporean workers and future workforce.”
“Finally, TAFEP should be billed as our go-to fair consideration employment centre for Singaporeans and be given more resources and the powers to wield a bigger stick – as Member Patrick Tay has mentioned – in a targeted sustainable manner; working with employers to provision for opportunities for our workers whilst at the same time making business sense. I would go as far as to suggest TAFEP and MOM form a dedicated enforcement unit to focus efforts on helping companies to localise and to identify and penalise recalcitrant offenders that are guilty of poor corporate citizenship. A single brand for both enforcement and developmental efforts. Some employers are so intoxicated by their discriminatory practices that they are inured to the penalties. We need to go beyond issuing them fines or temporarily suspending work passes which perhaps to them is a minor inconvenience in the grand scheme of things that matter to them. TAFEP is here to act and I believe so too MOM. So, let us not hesitate to act with more punch against errant employers. TAFEP should not shy away from naming the errant employers so that this can exert a strong pressure on the company, or the culprits in the company who are practising discriminatory practices. By giving TAFEP powers, this will hopefully send a stronger signal to trigger whistle-blowers who can provide leads to check on suspected companies. I also urge trade unions to mobilise their members to whistle-blow and report suspect cases of discrimination. Unions may consider embedding this in their Collective Agreements. Mdm Deputy Speaker, there is a fine balance to strike between encouraging foreign companies to invest and set up office here and protecting our workers.”
“The Act also specifically puts the onus on employers to produce justification for setting age criteria for their employment process. Currently, our equality laws are ambiguous and some employers take advantage of loopholes or feign ignorance. In addition, on addressing the prejudice experienced by Singaporeans in companies with a large population of foreign employees, I would suggest legislation to include that all foreign management staff in hiring positions should be made to undergo compulsory training on employment and hiring practices in Singapore. This is so that there are no excuses for anyone to claim ignorance of our commitment to non-discriminatory work practices. Next, I would ask for concrete targets to localise our workforce. Hiring foreigners to fill skill gaps is a necessity, but allowing this to continue with no effort to localise after an extended period of time, is simply not reflective of good corporate citizenship. Our localisation efforts can be targeted for a range of skills and companies can incorporate elements of training for eventual local employment and with a specific localisation target, for example, in three to five years. The HR departments of companies would be a good place to start as they handle recruitment, training and welfare of employees. As part of the localisation strategies, I would like to reiterate my proposal to expand the Capability Transfer Programme (CTP) to support the transfer of capabilities from foreign employees currently employed in Singapore to local employees.”
“Some are simply not active social media users or are not comfortable with the potential attention from netizens and they are suffering in silence. About one in five Singaporeans experience age discrimination in their workplace, according to global payroll and human resources leader ADB’s new Global Workforce Review 2020 report. The rate of age discrimination in the Singaporean workforce is higher than the average of 12% in the Asia Pacific region. We also have locals feeling that they are being discriminated against when applying to a company with many foreign management staff. They believe that foreigners in a hiring position are more inclined to hire and promote people of their own nationality. According to TAFEP’s annual report for fiscal year 2018/2019, the top issue handled from 1 April 2018 to 31 March 2019 was fair consideration for Singaporeans, whereby one in four felt that they were victims of preferential treatment to their foreign counterparts. Some may argue that these are mere general statistics. But I have seen residents coming to me for help for alleged discriminatory practices by employers in these areas above. We must be more assertive against discrimination of any kind. The UK, for example, has very comprehensive and explicit laws to tackle hiring discrimination and it covers from gender, race, age, marriage, maternity, to disability. The Equality Act 2010 legally protects people from discrimination in the workplace and in wider society. It replaced previous anti-discrimination laws with a single Act, making the law easier to understand and strengthening protection in some situations. It sets out different ways in which it is unlawful to treat someone.”
“Mdm Deputy Speaker, I would like to declare that I am a member of the Board of TAFEP. In my speech, I will talk about three types of discrimination that are commonly complained about in the workplace: racial discrimination, ageism and preferential bias for foreign employees over local employees. Similar to my 2019 Adjournment Motion, I want to again propose enhancing anti-discrimination laws, localising the workforce through targets and according more resources and powers to the TAFEP. Mdm Deputy Speaker, in Malay, please. (In Malay): [Please refer to Vernacular Speech.] These days, Singaporeans feel more encouraged to speak up on social media about racial discrimination. Among these allegations, many are of malpractices in our workplaces, where the race of an employee is used as a conduit to gain unjust preference against others. An IPS-OnePeople.sg study in 2019 revealed that almost 60% of Malays and 56% of Indians perceived discriminatory treatment at work. This was a slight increase from the 58.7% of Malays and 52.6% of Indians who said this five years ago. These incidences suggest that racism and stereotyping persist in our workplace. Victims are unaware or perhaps doubt the effectiveness of official channels to seek help, so they post it on social media instead. Resultantly, it appears or is perceived on the ground as the authorities' approach to discrimination being more reactive than proactive, which is not a true reflection of the efforts of TAFEP and MOM. (In English): While our younger Singaporeans can turn to social media to vent about their unpleasant experiences with racism and prejudice, it is different for our older employees who have faced similar discrimination at their age.”
“Mr Deputy Speaker, I thank the Senior Minister of State for answering some of the questions in my Parliamentary Question (PQ). I have two supplementary questions. The first is in relation to the types of cases. The Senior Minister of State mentioned that the number of cases has been falling and also that 0.15 cases per 100 kilometres have dropped to about 0.1 number of cases in 2021. But, to me and to many residents, every single bus accident, not just in the interchange but outside, is one too many as it involves a heavy vehicle. So, for the 148 cases, what types of cases are those? Do they involve pedestrians, cyclists or motorists? The second supplementary question is: how much can we enhance in terms of education of our pedestrians and other commuters, especially either in the interchange or outside the interchange scenario, to understand and be aware about public buses and safety when they are commuting and going around?”
“I would like to thank the Senior Minister of State for the answer. I have two supplementary questions. I believe many Members in this House have asked this question about the +65 scam calls. The first question I have is, I have been receiving a lot of questions from residents about the +65 scam calls and it seems that the trend has increased quite significantly. So, the first question is whether MCI and MHA would look into blocking the source of these +65 calls in a more concerted way. Secondly, how much more can we educate our elderly residents and even young residents or adults who may unsuspectingly pick these calls up and combined with scam and phishing efforts of these perpetrators, lead to further worsening exposure of our residents to such efforts.”
“Mr Speaker, I thank the Minister for the answer earlier. First of all, I would like to thank the Minister for sharing the slew of detailed processes at the airport. I thank him because I do have a number of residents who are working as cleaners and staff at the airport. I have two supplementary questions. First, I seek clarification from the Minister because he mentioned some segregation at Terminal 2 and the potential of Terminal 4 being used in the future. Can he share whether this would be a temporary or permanent sort of situation, so as to reassure the public, in particular as well, because Jewel is now opened to the public. So, whether he can reassure whether Jewel is safe for the public to visit, going forward. My second question is, as the Minister has mentioned, a risk-adjusted approach is taken. But ideally, as an air hub, it would be very difficult to maintain this at our airports as we plan to open up the economy, hopefully, sooner than later, and to reinstate activity in our airport. Can the Minister share how we can maintain this potentially start-stop, and/or segregation processes that we have in the future, and whether there will be a need for infrastructure changes at the airport in the future, given this start-stop situation or scenario which could be a possibility?”
“Mr Speaker, I thank the Minister for answering my question. I have two supplementary questions. The first is a simple question: the impact of Pillar Two. Will there be a risk of existing firms moving out? And I am referring to the United States (US) Inland Revenue Service filings which indicated that Singapore's share of US firms' foreign income taxed is second highest in the world at about 7.5% after Bermuda, and which indicates that US firms' here, for example, have about 165,136 people working for them, not to mention the cascading effects of some of these US firms in terms of subsidiary employment for Singaporeans. So, my first question is: will there be risk of these US firms moving out? The second question is whether the Ministry of Trade and Industry (MTI) is reviewing its strategies to attract multinational corporations (MNCs) in light of this change and what are those strategies? I think the Minister has mentioned briefly the non-tax factors but how much more can we improve to enhance even further those non-tax factors and to attract more firms coming in, year after year.”
“In the meantime, there should be more conversations and reassurances on the safety issues related to EVs. Moreover, residents' safety and convenience must not be compromised. Mr Speaker, Sir, I support the Bill.”
“How will LTA ensure that the winning tenders are committed to adapting continuously to the evolving technology, with safety and quality at top of mind, and how do we ensure that our charging points can be easily adapted as technology progresses? With increased deployment of EV charging points in the housing estates, how will agencies like HDB, Town Councils and EMA work together for installation, maintenance and safety issues? In Toa Payoh Lorong 8, for example, the EV charging points were built with wires cutting across the pedestrian paths. This has posed a safety hazard to residents. This could have been avoided if there had been closer cooperation and consultation prior to this decision. Clearer guidelines and policies must be spelt out for cross-agency collaboration. Otherwise, I fear that, in an emergency, time will be wasted in delegating the responsibilities. My last point is on national power consumption. An energy department study done in the context of the US found that increased electrification across all sectors of the economy could boost national consumption by as much as 38% by 2050. This is, in large part, due to EVs. What would the impact of widespread usage of EVs be in Singapore? Do we also expect a surge in electricity usage nationwide and will this affect the capacity capabilities of our power stations in the residential areas? For example, is there a need to upgrade electricity substations to cope with the potential increase in power usage? What about the current underground cables? Are they able to cope with the higher usage? Mr Speaker, Sir, EVs are the way forward, as demonstrated in many developed economies, so this amendment comes at a timely moment.”
“Mr Speaker, Sir, I support the formalisation of LTA's role to coordinate electric vehicle or EV-related efforts across Singapore. I am pleased to note that the amendments are focused on safety and operational capacity, which were among key technical concerns shared during the Budget debates. I wish to raise four concerns which I hope LTA will look into as they assume their new responsibilities. First, safety concerns for both motorists and building occupiers and residents, given that most of the charging stations going forward would be located at housing estates and commercial buildings. With plans to increase the number of charging points, there are some concerns among residents on safety issues – whether this may lead to situations such as electrical overload and overcharging, resulting in fire outbreaks or worse, an explosion. There have been several cases of fires and explosions caused by PMDs that were charging overnight, whether domestically or overseas. So, some are asking if similar scenarios could happen with EVs left to charge overnight. May I ask what is being done to safeguard against this? I note that purpose-built EV chargers would be safe but what happens if someone tampers with it or tries to use a non-compatible extension plug, for example? This brings me to my next point on batteries. A number of high-profile global recalls were made last year over battery fire risk in EVs. EVs are fairly new technology. With the recent boom, engineers are in a global race to design the fastest and cheapest EV batteries. This can result in plenty of revisions along the way, even at the expense of safety. As technology on the batteries develops, how will LTA allocate the tenders for charging points and types of EV vehicles over the next five to 10 years?”
“Thank you, Mr Speaker. I would like to seek a clarification from the Senior Minister of State Dr Amy Khor because I did not get a chance to raise the queries earlier. First of all, I would like to thank her for highlighting that PAB users taking the test do not have to pay for the second round of test. But I would like to ask a question with regard to the audio version of the test. I found out that for some places in Australia, in New South Wales, the transport agency creates a hotline for those taking the road theory test and for those who have learning difficulties or special needs. So, is there a possibility that we can create an audio version of the test? And second, whether we can create a hotline for PAB users who have learning difficulties, for example, those who have trouble reading or understanding questions for them to make arrangements in that regard?”
“While it is necessary to test the performance of self-driving software under real-world conditions, this should only happen after comprehensive safety testing and evaluation before we allow citizens to access the benefits of the technology. Sir, may I ask the Minister what are the plans for larger-scale deployment of AVs in Singapore and what are the specific safety issues that will need to be addressed? Where will these trials and deployments take place and where can the public get access to regular updates? I hope this extension and eventual deployment will allow a set of standard tests and make companies benchmark their algorithms on standard datasets before their vehicles are allowed on open roads. It may still be in early stages, but will there be a graduated approach to certification in which a self-driving system could first be evaluated in simulations, then in controlled real-world environments, pass specific benchmark tests before they can be allowed on open roads? The recent crash of a Tesla car in the United States in which two people died has reignited debate about the capabilities and safety of today's self-driving technologies. The tragic incident has raised questions over self-driving technology: how safe is it and how much attention does it require from drivers? Finally, in relation to long-term infrastructure needs, will existing road infrastructure have to be upgraded to accommodate AVs in the future? Mr Speaker, Sir, I support the Bill. 4.26 pm”
“Mr Speaker, Sir, I laud LTA and MHA's combined effort to cover new offences to deter irresponsible behaviour on the roads and to educate our road users via the new online combined theory tests, but it has to go hand in hand with enforcement efforts and I hope new techniques to capture offenders and manpower needs will meet these demands going forward. Can I ask if the relevant agencies' enforcement resources will be enhanced to meet the demands of these new amendments? I now move on to security searches and checks, as mentioned in the Bill, which will be conducted on commuters as part of counter-terrorism efforts at our public transport nodes. I urge the authorities to ensure that the involved personnel are trained to conduct these searches as discreetly and as politely as possible. We want to avoid issues of perceived, for example, racial profiling by the public, that can lead to further entrenchment of stereotypes. And as we are in the midst of a pandemic and body searches often require involved parties being at close proximity to each other, how can authorities guarantee the safety of the public and of the officers conducting the searches? Looking ahead, I am pleased to note that the research and development trials for AVs are still going strong. As we open up new towns and estates and technology improves, it is inevitable that the usage of AVs will have future applications. It is essential that safety issues are ironed out properly ahead of any mass deployment in the future. I am supportive that the AV regulatory sandboxes which are due to expire in 2022 will be extended by another five years to facilitate trials and deployments.”
“Mr Speaker, Sir, I welcome the proposed amendments to the Road Traffic Act which I believe will enhance the safety levels in our land transport system. I will speak on three key topics – cyclists, security searches and infrastructure for AVs. The pandemic led to a boom in cycling, power-assisted bicycles (PABs) and e-scooter usage has increased. I am supportive of the combined theory test regime for the use of PABs on roads and shared paths. The theory test will raise awareness on the rules and also, hopefully, serve as a reminder to experienced riders. Can the Minister share what are the costs involved to get certified to ride on the roads? As some PAB users are riding for a livelihood, I think most of the Members have shared that the added expense could be a burden for them. Will the certifications be issued as physical cards or electronic digital certificates? In designing the scheme, we must be wary of possible inequalities that may occur. The Official Handbook for Mandatory Theory Test released at the end of April for PABs and PMD scooters is quite comprehensive and useful. I tried to read all the pages in the handbook. It is quite comprehensive. I hope it can be disseminated more extensively to our youths in schools as some aspects of the road traffic rules and practices are useful as well as for non-motorised bicycle users. In addition, as some Members have mentioned, a vernacular version of this handbook will be useful. May I suggest to maybe add in an audio version of it as well, such that some of these tests can be taken in audio form so that some of the PAB users can take some of the tests; other than online, they can be taken in audio as well.”
“Mr Speaker, I would like to thank the Minister of State for her answers. I have two supplementary questions. First, the Minister of State mentioned about the factors being the container shortages affecting the sea freight prices, going forward. Can the Minister of State share whether that trend is likely to continue, going forward? Second, how is the Government working with local businesses to maintain supply resilience and manage freight costs? That is quite key, especially in view of Malaysia's latest movement control order (MCO) that we just found out about.”
“Mr Speaker, I would like to thank the Minister of State for answering the question. I have one supplementary question. I am happy to see that the trend has not increased, as the Minister of State has mentioned. But every single bullying or hazing incident is one too many, especially for schools and where kids are involved. My simple question is: what action has MOE taken against those involved in these incidents and will more mitigation measures be taken to reduce and address this issue and, hopefully, reduce the numbers, going forward?”
“They seem to have consistently maintained lower yields as well as exhibiting lower volatility than their conventional versions. May I also ask the Deputy Prime Minister, if the Government will issue green bonds to the public under SINGA and what will these infrastructure projects likely be focused on? Can the Deputy Prime Minister also share more information about the project size, timing and so on, if possible? Finally, I am glad to note that the majority of Government borrowing will still be for non-spending purposes such as meeting the investment needs of the CPF for Singaporeans' retirement and for market development and there are strict eligibility criteria in place to ensure that qualifying SINGA bond projects are truly essential to national interests. This is a forward-looking Bill with Singapore's economic, environmental and social sustainability in mind. Mr Speaker, I support the Bill. 6.25 pm”
“Mr Speaker, Sir, secondly, since we know autonomous flows – for instance, changes in the stock of outstanding SGS where net issuance of SGS actually drains liquidity from the domestic banking system, how will the new SINGA SGS securities issuance affect our financial system liquidity as well as the Singapore dollar during times of financial market stress when banks may also desire to hold larger buffers of liquidity? The amount that we are borrowing – up to $90 billion – can be quite significant. Thirdly, may I ask the Deputy Prime Minister on the SINGA infrastructure bond issuance: what are our baseline economic assumptions and how do we ensure issuance supply is calibrated to market demand? What tenors would be issued under SINGA? Following the introduction of SINGA, will the duration of the SGS market change over the medium term? On a separate issue, some projects were previously placed under Statutory Board issuance but moving forward, will these be funded by the SINGA bonds if they qualify? It is useful to know if the SINGA bond issuance will have a crowding out effect on future bond issuances by Statutory Boards. Mr Speaker, so far, the market seems receptive to the potential of SINGA bonds based on the prices of the yield curves when it was announced. Globally, there has been steady growth in sovereign green, social and sustainable, or GSS, bond issuances in the past years. Looking at the experience of Germany's sovereign green bonds, there might be room for a sustained premium or lower yield to green issues versus conventional issues. Recently, Germany issued green bond counterparts to its 10-year and five-year conventional bonds. In both cases, the green bonds were priced at a premium when issued.”
“Looking ahead, I would like to ask if the Government has considered the plausible worst-case scenarios that would see the Government's balance sheets and net foreign assets being weakened? What if our capital efficiency advantage weakens as global interest rates rise sharply? The Deputy Prime Minister explained it very clearly and in detailed form in his speech earlier when talking about the 5.5% effective yield-to-maturity rates. But my question is: has MOF and other economic policy agencies such as MAS done counter-factual simulations using market shock variable?. What are the risks going forward? The Bill has also importantly spelt out crystal-clear clauses for safeguards. There will be a gross borrowing limit of $90 billion. The Government cannot raise more than this amount in loans under SINGA without legislative amendments. There is also an annual interest rate threshold of $5 billion. These measures will ensure the future generations will not end up with burdensome financing costs. But, may I ask the Minister if our debt servicing costs will be funded by our annual Budget and met from our overall revenue? If so, assuming we have a full $90 billion issuance and we are constrained by our current principle of having an overall balanced Budget over each term of Government, can the Minister share if this will affect our annual fiscal policy options in periods of extreme crisis in the future? Can the Deputy Prime Minister also share the different phases of fiscal policy options in a crisis or national emergency, for example, if we are to use past reserves first, at the first stage; do we then need to liquidate GIC investments second or do we need to borrow last?”
“Without borrowing, the expenses for the infrastructure would have to be shouldered by the current Government for projects that may only demonstrate their potential in decades to come. With SINGA, the upfront development expenditure is converted into a stream of annual depreciation over the useful life of the project. As the infrastructure is improved over the years, future generations pay directly for the enhanced benefits enjoyed. So, there is capital efficiency as we will benefit from low interest rates, given our AAA credit rating. In addition, the SINGA bonds could potentially extend the Singapore Government Securities (SGS) yield curve beyond its current 30-year maturity depending on investor demand and primary dealers' market making obligations. This helps in deepening the bond market domestically too. But, Mr Speaker, for the man on the street, beyond the technical terms, there may emerge concerns that with the formation of SINGA, we will be tapping on bond markets and see more foreign exchange exposure for our long-term infrastructure spending. These are valid concerns, especially if there are some level of market exposure and liabilities that may be created. Firstly, is there a plausible worst-case scenario in tapping the bond markets for the first time over the long term for infrastructure spending? Mr Speaker, Sir, I am confident of our Government's fiscal discipline and our cash management ability. Our finances are strong, with assets well in excess of liabilities. This is being demonstrated in the COVID-19 crisis, where the Government could purchase vaccines for the whole population while introducing various financial assistance schemes to help citizens and keep the economy and job market abreast. But complacency is dangerous.”
“Mr Speaker, Sir, the concept of borrowing, taking on debt, may have a negative connotation. This is especially so in Singapore where our Government is known for its long-running commitment to prudence. But the fact that the Government has tabled the SINGA Bill is testament to a sustained commitment for fair intergenerational equity, prudent spending and an enhancement to our differentiated financing strategy beyond. This is a necessary response to an expected spike in development expenditure in the next decade to address infrastructural needs and existential threats like climate change and rising sea levels but also taking into consideration the low interest rate environment we are in for now. This is a bit different from what the hon Member from Sengkang GRC mentioned, about spending further on human capital. It would be useful to find out from him how much more he would like to borrow on human capital, given that Singapore is already the highest ranked in the World Bank's Human Capital Index report. Just to explain, the Human Capital Index by the World Bank measures countries best in mobilising economic and potential of its citizens. We are already ranked highest and I think the Government has put in quite a bit already in terms of human capital. After all, Singapore's best resource or most important resource is our people. I would just want to probably seek a clarification from the Member from Sengkang GRC on that point – how much does he plan to borrow for human capital. Mr Speaker, I support this Bill as it is fair and efficient. It is fair because it supports intergenerational equity.”