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 hope there will be further enhancements by the MAS and the Government to monitor the situation to ensure that businesses and individuals have a feasible strategy to make these loan repayments when it comes in 2021. One way is to form an inter-agency post-COVID-19 financial conditions task force to ensure as much help is provided as we wean away from some of the payment moratoriums when it happens. But we need to anticipate and take steps to get ready for mitigation now. Mr Speaker, my third topic on post-COVID-19 infrastructure to boost economic resilience. COVID-19 has changed society in many ways and it is unlikely that we will ever return to pre-COVID-19 normalcy. We must plan our infrastructure to align it with our post-COVID-19 vision, especially in shaping Singapore into a global-Asia node of technology and innovation as mentioned by the Deputy Prime Minister in his Statement. In the past months, global tech giants have moved or expanded their operations in Singapore. This is thanks to the excellent foundation the Government has laid in terms of political stability, ease and cost of doing businesses, openness to global talent and a diligent and reliable workforce. Our infrastructure must be capable of supporting these companies' operations. I would like to thank the Deputy Prime Minister for sharing the Government's refreshed economic strategy for a post-COVID-19 world last week and this includes securing our external economic linkages as a vital global node in Asia and rebuilding and growing our physical connectivity as well as enhancing and expanding our digital connectivity.”
“I would like to suggest that the Government consider allowing citizens to tap on an early release of $5,000 from their CPF balances, subject to meeting the eligibility criteria similar to that in Australia. Those who are younger than 55 may utilise this sum from their CPF early but there can be an option, if they so wish later, where the funds used can be put back eventually if they withdraw before age 55. These are difficult times and we should exercise creativity and flexibility to ensure everyone gets help in a timely manner. Mr Speaker, I am cognisant that accessing the CPF funds early will affect citizens' future retirement income but this $5,000 amount would have been able to be used in any case upon attaining age 55 as long as they have sufficient funds. At this juncture, it could help meet the needs of some Singaporeans. This brings me to my next focus area on financial solvency of households and individuals. For the unemployed individuals and struggling businesses, mortgages and debt are crippling. I am grateful that the Government will extend loan repayment relief measures into 2021. Can we have more perspectives on the segment of the population who require these deferments? The Government had previously shared some data on loan deferments. We are looking at 38,900 applications for property loan repayment deferments. Out of these, 90% or $20 billion worth of mortgage deferments were approved. It would be good to know what proportion is owed to banks versus those to HDB loans. The volume of personal credit deferments has also increased. Which SME sectors are affected most by the moratorium? I worry about a potential "household and corporate debt" cliff effect when the extension of payment moratorium ends.”
“I recently met a 60-plus year old resident who was laid off with no retrenchment benefits after working for the company for more than three decades as the company closed. And his was a narrow expertise in the production line. Mr Speaker, If I may refer to what Monetary Authority of Singapore Managing Director Ravi Menon said on Monday at a forum hosted by the Institute of International Finance, namely that we have not seen the full extent of the crisis and as much as 20% of the economy will face "deep scarring" from which they may not recover. He said that non-performing loans and bankruptcies probably would rise through the start of 2021. This is certainly a cause for concern over the next 12 months. On that basis, if overall average household financial conditions do worsen, I urge the Government to consider allowing CPF members to temporarily tap on a small amount of their CPF to resolve their emergencies if needed, subject to eligibility criteria. In Australia, for example, in July this year, as part of the jobseeker policy measures, those affected by COVID-19 are allowed early release access up to AUD10,000 of their superannuation in fiscal year 2019/20 and a further AUD10,000 in fiscal year 2020/21. The intent of the measure is to support people or sole proprietors who are adversely financially affected by COVID-19 and need help to meet expenses. They do have stringent eligibility criteria but accessibility to these funds was created nonetheless. In Singapore, currently at age 55, the CPF account holder can withdraw up to $5,000 from his or her Special and Ordinary Accounts or your CPF savings after having set aside the Full Retirement Sum in your Retirement Account, whichever is higher.”
“A young resident shared that she had spoken to a career consultant who said some employers are still cautious about hiring but posted their job listings to test waters. In case business picks up, they would have a ready pool of applicants to pick from. So, they are not advertising for jobs that are currently available but plausibly in the near future. In my view, such practices would distort the statistics on current job vacancies. The current measures made available by the Government are timely and excellent but clearly focused on keeping Singaporeans gainfully employed. Each employee is supported by up to around $50,000 worth of subsidies over a 17-month period if their companies are eligible for the highest tier of the Jobs Support Scheme or JSS. Yet, if someone loses their job and their company does not offer retrenchment benefits, they would receive a smaller amount over a period under the COVID-19 support grant as well as potentially, financial assistance from various organisations. A direct comparison may not be very appropriate as not every employee who benefits under the JSS draws a salary of $4,600 and above but the disparity is apparent. Indeed, having a job is the best insurance to preserve livelihoods. But despite best efforts, some are struggling to find stable employment. The gap between someone who is gainfully employed with income for months and someone who is unemployed will simply keep widening if the economy continues to see scarring in some sectors. And I am not just referring to the atypical scarred sectors such as aviation, travel and retail but even sectors in manufacturing and services with local SMEs.”
“Mr Speaker, Sir, I record my appreciation for the Deputy Prime Minister's responsiveness and adaptability to the needs of the population. Looking ahead, we must focus on our medium to long-term strategy to boost our economy, help Singaporeans find jobs and signal a positive vision for our post-COVID-19 economy. I will address the following topics in my speech: first, on unemployment; second, on debt repayments; and third, on boosting infrastructure for economic resilience. We have been and must continue to address these issues, enhancing or changing our strategies, if necessary. Times are changing, so our policies and infrastructure must move with the times. We must heed the changing landscape of employment and the demand for new infrastructure to support growth sectors and changing work habits. Mr Speaker, on my first topic – helping the retrenched and unemployed. It is heartening that amidst depressing news of mass retrenchments and job losses, there are still many job openings to be filled. I note that MOM and WSG are roping in employment agencies as placement partners to assist with job placements. This is a good initiative and idea to tap on the expertise of the recruiters with a good understanding of the sectoral human capital trends and expertise. Perhaps MOM can share more about the top hiring sectors and the specific job roles in these sectors that are being created. What are the targets set for successful job matches and how will the various agencies measure effectiveness of outreach efforts? It would be good if the Ministry can share how it determines the number of job opportunities. Is it based on the number of job listings submitted to SGUnited platforms or are there other factors?”
“Whether the Minister can share with us any infrastructure, strategies or plans to put us in a good stead post-COVID – I am not sure whether COVID-19 will end next year – beyond one year, two years or three, four, five years. How Singapore can take this opportunity to put us in a better stead beyond one year ahead?”
“Mr Speaker, I wish to thank Minister Ong for the very detailed answer to our colleagues' questions and my questions as well. I have three clarifications that I wish to seek from Minister. First of all, I do understand the recovery and risk trade-off that Minister mentioned. I think we all mindful of it, especially with the incidence risk that comes along with opening up the country. My first question is, the Minister mentioned about the testing technology improving and there are plans for Air Travel Bubbles, ATBs. My first question is regarding bilateral and regional arrangements with ASEAN, for example. Can the Minister share with us how are the deliberations in the plans going ahead or the task force's deliberations with ASEAN for example, in opening up our regional air travel between ASEAN countries going forward, as testing technology improves? The second question, Minister mentioned about the logistics and cargo volume that has improved two times – I think if I am not mistaken, I heard two times, it has ramped up two times. My question is in the interim, as we see more Scoot planes on the tarmac, as we drive past Changi, PIE and towards the end, we see Scoot planes there – is there is a possibility of ramping up our logistics and cargo volume even further, in the interim. Particularly, because you probably might want to get the core capabilities of our aviation sector built up in the interim, as we as we wait for some of these technologies to improve or for ATBs or arrangements with other countries. My third question is in relation to my Parliamentary Question, in post-COVID, what are our plans for the medium and longer terms.”
“Mr Speaker, I thank the Senior Minister of State Chee Hong Tat for answering my question. I have one supplementary question. With regard to his zero-tolerance approach to the issue, I am reassured that LTA and MOT will take this zero-tolerance approach very strongly against commuters who get offensive against the bus captains. My question is: will LTA or MOT be willing to explore doing reviews just like what was done by the state of Queensland, Australia, for example, where they did an Improving Bus Drivers' Safety Review in 2018? They came up with a few measures introduced in 2018, including anti-shatter films, driver barriers and also a release of a code of conduct for passengers in the middle of 2018. They also ran a public awareness campaign from June to December 2018. So, my question is whether LTA or MOT will be willing to explore such a review and encourage best practices between our multiple bus operators? Because, after all, a bus driver who feels safe means all passengers are safe.”
“(In English): Mr Speaker, this scarring effect was seen previously before the 2007/2008 Financial Crisis, few would think of the possibility of a financial collapse. Today, the fear of a financial collapse has always lingered at the back of the minds of many. It is not uncommon to hear or people talking about nothing is too big to collapse after the debacle. So, policy planners would need to address how businesses will be making decisions with the added element of what is the risk to them, should there be another pandemic, not necessarily the COVID-19 pandemic, and how this will impact the appetite for investments for venturing into new businesses for expansion and how to grab opportunities now if possible. In conclusion, Mr Speaker, as the saying goes, where there is life, there is hope. While other modern economies are battered by high infections and death rates, we have been able to keep these numbers low in the community here in Singapore. We must resist from the temptation of making comparisons, but take charge of what we can control, such as our own lives and our own health. In the meantime, the Government must look beyond labour issues and take steps to cushion the potential impact of future inflation and sectoral issues, as we pick ourselves up in a post-pandemic world. 2.30 pm”
“A study by the Federal Reserve Bank of St Louis recently showed that policies that help prevent capital depreciation or obsolescence, even if it has only modest immediate effects on output, can have substantial long-term effects. Although Government policies cannot prevent people from believing that future pandemics are more likely to occur compared to what they thought previously, good policies can, however, affect how long the on-going crisis will drag on. The important thing is that we should mitigate the costs of what is known as “belief scarring”. For example, widespread bankruptcies can lead to destruction of specific investments and a permanent erosion in the value of certain types of capital. I hope that the Government will not just view the prevention of bankruptcies as important, but also place importance on the method of prevention and not underestimate its long-term effects on businesses and families. However, we may see more investments in the safe industries like healthcare, food and groceries, and technology. Health and safety regulations will likely remain. Global health experts have warned of more possible pandemics to come and we want to stay prepared. So, we will more than likely see less efficient use of commercial space in malls, F&B establishments, tourist attractions, on public transport and planes and so on. That brings me back to my earlier point on risk-taking behaviour. Would firms and businesses be willing to take risks, if they fear that another pandemic may wipe out their hard work and even livelihoods? How can we ensure that this fear does not lead to further decline in investments and, therefore, jobs in the long term?”
“There is certainly widespread discussion whether the discovery would lead to a U-shaped, V-shaped or L-shaped economic recovery. The key thing is whether companies and consumers would be able to regain their confidence to embark on a spending pattern. Or would they hesitate, hold back and become risk-averse? And this would become the so-called “scarring effect” that would leave a lasting impact on the economy. It is like a person who, after going through a trauma, recovers but suffers from a scarring effect on his personality and loses self-confidence. We would never know which sector of the economy would be more scarred than others, perhaps it is the travel industry (air and cruise) and the entertainment sector, and many other sectors. Small businesses and households are reeling from the pain of closures and bankruptcies. More than 8,600 businesses have already ceased and filed to cease operations in April and I am worried that this is only a forewarning of an unforgivably harsh and prolonged pandemic. Over the last six months, I have met and listened to residents either in-person or virtually, ranging from professional photographers, media professionals and Grab drivers, who sought help, and the Government has provided SIRS and COVID-19 support for them. All these measures are good. More recently, I have seen residents, who are currently restaurant and now karaoke owners, coming to obtain assistance as well as regulatory changes to allow them to utilise their business spaces for more productive purposes. So far, in the short term, our multiple Budget measures provided the interventions and a kind of insurance to help protect the most vulnerable sections of society and help businesses survive. But what about the long-term effects of such measures?”
“First, tackling rising household economic insecurity due to job losses and rising inflation. With mounting retrenchments and job losses comes rising household economic insecurity. Adding on to these challenges is the possibility of rising inflation. It is true that there is little concern about the risk of inflation, but market strategist and financial historian Prof Russell Napier projects that inflation in the next 10 years will be between 4% and 8%. Singapore has no net debt and would have no need to engage in financial repression, but we are an open economy and a price taker, and so we will certainly be impacted by global policies. For young couples who are planning to start or grow their families, how will this rising household economic insecurity influence their decisions? Additionally, what will all these mean for our plans to raise the GST and other economic policies? Many young couples cite the cost of living in Singapore as a deterrence from having children. So, how can Singapore be an affordable and conducive place to build a family? Second, housing costs and healthcare. Housing costs remain a key concern for young Singaporean couples who want to remain in Singapore and settle down. With inflation, the cost of raw materials will only go up. How will the Government ensure housing remains affordable for young Singaporeans? Third, economic implications. I will speak a bit more on this issue. A key question in the minds of many economists is: what would be the long-term costs arising from the COVID-19 pandemic? Even if a vaccine, or more than one vaccine, is developed, and everyone is back at work, but what would be the impact on the nature of economic activity?”
“In the meantime, we must continue to remain attractive to global corporations. It remains uncertain if remote working will reduce the need for MNCs to hire locals, but MNCs stimulate the economy through taxes and creating opportunities for SMEs. I wish to record my appreciation to our Health Sciences Authority (HSA) and A*STAR for ensuring the availability and continued review of effective and efficient COVID-19 test kits, which would facilitate business travel without the need for prolonged quarantine measures across the board. Third, Mr Speaker, is building a Singapore Core in a tight labour market. Remaining open to global talent is not mutually exclusive to building a local core. We now have a tight job market with an oversupply of workers chasing too few jobs. It becomes more urgent and imperative than ever to strengthen the Singapore Core and enhance our fair consideration framework as mentioned by many speakers before me. I have raised this in my maiden speech five years ago, focusing on job discrimination practices and had requested for more teeth for TAFEP and also anti-discrimination legislation, five years ago. Back in November last year, I had also raised a Motion on the importance of building our Singaporean Core and tightening our job hiring and employment practices for older workers and minorities. I urge MOM to consider my suggestion to expand the Capability Transfer Programme (CTP) to support companies to set localisation targets. Now is a good time to focus on transferring capabilities from currently employed foreign employees to local workers, with the aim of localising jobs. Mr Speaker, in Malay, please. (In Malay): [Please refer to Vernacular Speech.] Three long-term challenges.”
“In the most recent issue of Harvard Business Review, American economist Willy Shih shared his projection on the state of global supply chains in a post-pandemic world. Manufacturers worldwide will be under greater political and competitive pressure to increase domestic production and grown employment in their home countries. They will have to reduce or even eliminate their dependence on sources that are perceived as risky and re-think their use of lean manufacturing strategies to minimise inventory held in global supply chains. The Japanese government, for example, has set aside S$2.2 billion of funding to encourage companies to shift their production out of China. With the need to diversify, and rising tensions between US and China, firms are shifting to a "China plus one" strategy of spreading production between China and a Southeast Asian country. Our affordable tax regimes, fair and corruption-free business practices and political stability make us an attractive location for start-up companies, and regional headquarters to oversee new supply chains in the region. I note that Mr Shih also mentioned Singapore's efficient and high-capacity trans-shipment hub as part of the recommended Southeast Asian strategy for moving goods to the major markets. As part of a longer term strategy, we should continue to build on our manufacturing capabilities, particularly in high-tech and healthcare and biomedical industries. Moving forward, the demand for comprehensive logistics strategies will be necessary for companies to make sense of post-pandemic production and movement of goods and services. The question next is, what plans does the Government have to nurture local talents in logistics and even in the maritime industry?”
“To continue for the long-term or make a switch to move on to a more fulfilling role, further investment in upskilling and education would have to be required. Would the Government consider more incentives for the acquirement of deeper knowledge, including subsidies for full-time degree courses, for example? And in sectors like healthcare, would the Government look into modified courses so that more people could be quickly trained to get into the jobs and be allowed to upgrade their skills as they serve in the various institutions? The lower income groups are bearing the brunt of the pandemic. Many of them have lost their jobs and we may expect more job losses to come in the near future. Does the Government intend to conduct any form of structured job reallocation beyond nudging towards the Professional Conversion Programmes or PCPs? Can we take this opportunity to direct them to sectors that have been conventionally less popular among Singaporeans and more heavily reliant on foreigners, such as early childhood education, nursing, construction, skilled trades and so on? Also, what is the Government doing to weed out employers who offer higher pay to foreigners to qualify them for workpass but yet clawback the salary once they get into Singapore? This malpractice must be stopped. I am told the employers would make this clawback clause as part of the terms of employment and often, they are verbally negotiated. F&B businesses run by foreigners are one of the culprits. Second, coping with the challenges of rising prevalence in remote working and protectionism. Rising prevalence in remote working and protectionism threatens our survivability as an open economy.”
“Mr Speaker, I thank Mdm President for her Address and I stand in support of the Motion. The COVID-19 crisis has affected societies and economies around the world. As the situation continues to unfold, many try to make sense of what a post-COVID-19 world will be like. Mr Speaker, I will share three imperatives for change and my concerns on three medium to long-term challenges in my speech. The first would be in English and the latter three will be in Malay. First, long-term unemployment concerns and possible need for workforce reallocation. Change is never easy, we fight to hold on and we fight to let go. In letting go, we also struggle with making sense of the new norm. Making a mid-career change, especially to a new industry, will not be easy. For many of us, it will be one of the most challenging times in our careers. Today, we face the possibility of another large-scale job reallocation. The pandemic has a significant impact on our economy. We are facing our worst recession in 55 years. Our economy has shrunk 13.2% in the second quarter, retrenchments have doubled and resident unemployment rate has risen to 3.9%. However, the impact is highly disproportionate across different industries. For now, finance and technology sectors are still doing well, and essential services like healthcare and education are always in demand. Through SGUnited, the Government seeks to help divert those who are seeking employment to the industries that are in high demand. Yet learning new skills for a new industry is time-consuming and challenging, more so for those that require specialised skills, such as in healthcare and technology.”
“They can keep waiting and sometimes take a hundred snapshots just to get one good photo. But rest assured that we will not test your patience from the Bench. Above all, photographers also have an eye for beauty, creativity and details. Yes, we will stay focused during the sittings and also be appropriately dressed and observe the rules of decorum and etiquette in this House. Once again, congratulations on your re-election, Mr Speaker. Thank you. [Applause.]”
“Mr Speaker, please allow me to speak in Malay. (In Malay): [Please refer to Vernacular Speech.] Mr Speaker, I rise in support of my colleagues in congratulating you on your unanimous re-election as the Speaker of Parliament. You have an even more challenging role to play in this Fourteenth Parliament and we have full confidence that you would be able to guide and help us to contribute to a more robust debate in the House. Since you were first elected in September 2017, you have enhanced the digitalisation experience in parliament for its members and have shown fairness and impartiality to every member. And, in fact there were moments where you summarised the sitting and even peppered your remarks with wit to lighten an otherwise heated or sombre session. In this new Parliament, there may be more supplementary questions, and maybe even interruptions and interjections. Your task will obviously not be an easy one. I am, however, certain that you will treat all of us equally and fairly. As we say welcome to new members from both sides of the House, I am confident that the new members can look to you, Mr Speaker, for your forbearance to make their participation less daunting. New members will have a friend in Mr Speaker. Please allow me now to say a few things about Mr Speaker’s other qualities. Besides being a savvy social media platform user, you are an accomplished photographer, with a heart to help others, and this is evident in your strong support for charities through your photos. This also means that, when Mr Speaker takes a glance at you, do take note for he may be seeing your points in a different light. As you know photographers use colour filters in tricky lighting conditions. Now, we also know lensmen usually possess patience and flexibility.”
“I would like to thank Senior Minister of State Chee for the detailed answer. I just have one supplementary question. In relation to his answer, with MTI and EDB's announcement that from January to April, there is an investment commitment of about $13 billion coming to Singapore. In terms of job creation, going forward, and also those investment commitments beyond April to end of 2020 and possibly early first half of 2021, can Senior Minister of State share a bit more about whether the trajectory of investment commitments will continue to be positive and in which sectors in particular, going forward?”
“I am concerned if it will have the typical of short run effect of reducing incomes and raising unemployment, post COVID-19. In conclusion, Mr Deputy Speaker, research by the International Monetary Fund or IMF, indicates that the inequality gap widens after previous epidemics. COVID-19, I think, is no exception and we could potentially see it happen in Singapore. So, good pre-distribution policies must be enacted, ensuring extreme inequalities of income do not manifest themselves in the first place, with existing ones enhanced to ensure that extreme inequalities of income do not manifest themselves. So, this should be done through the relentless pursuit of equal access for all, to digital devices and digital skills, education and the push by what Minister Iswaran highlighted earlier is fabulous, and also access to education and healthcare. While necessities like food and financial assistance are necessary short-term emergency solutions, the long-term solution is to ensure all are equipped with skills and knowledge to generate an income is key. Healthcare is crucial for a decent quality of life, which enables one to live their best each day at any age. Meanwhile, I urge Singaporeans, regardless whether you are looking for a job, searching for one that is more aligned with your preferences, or even taking a break, to remain hopeful and see any opportunity that comes along as an avenue for self-exploration. Unemployment is distressing. We do not want many Singaporeans to be unemployed. And I think the efforts by the Government is tremendous in terms of the use of reserves and efforts in the four Budgets. But the current situation is distressing already for most of us. So, let us remember that it is not our circumstances, but what we do with them, that defines who we are.”
“The Government can keep on tapping and running down its fiscal reserves, of which $52 billion has already been drawn and counting but runs the risk of depleting its war chest. With these concerns in mind, I seek to put forth some suggestions. First, can a case be made that under such a crisis and national emergency, the Government can borrow and tap on the bond market to fund fiscal spending? Under the Government Securities Act, the Government cannot spend the money raised from the three existing domestic debt securities it issues. So, all borrowing proceeds from the issuance of debt are invested. The fiscal deficit in FY2021 will likely remain large, as any economic recovery will be very gradual. Singapore is rated AAA from all three international credit rating agencies and can tap on the bond market at record low interest rates at the moment. The 10-year SGS bond yield is currently trading at 0.8%. This may be a more optimal fiscal option than further running down fiscal reserves and liquidating assets when markets are down. The financing costs of debt is exceptionally low now, while the longer-term return on reserve assets will likely be much higher. Second, to expand our fiscal room and options, should the Government also consider allowing the relaxation of the constitutional requirement of a balanced Budget over the term of Government? I believe temporarily relaxing the requirement is favourable to depleting the reserves war chest, especially when there will be concerns that our current spending will now be to save jobs and businesses and use of reserves could lead to some level of tighter fiscal spending or "consolidation" the next few years or so.”
“So, we need to build the Singapore Core – as Member Mr Patrick Tay has mentioned – is very important and key. But first, we need to do very purposeful public education to get Singaporeans to change their mindsets and embrace the new norm. In recent years, community gardens and farmer's markets have gained substantial interest among the population. We need to encourage them to turn their interest into a career, by making this career one that is respectable and provides sustainable incomes. This applies to other areas of essential services. Mr Deputy Speaker, my last section is on the of reserves – prudent management of national reserves. The amount of fiscal support so far is indeed staggering. The Government set aside another S$33 billion in the fourth Budget this year, with a big focus on helping firms stay afloat and creating jobs. This brings the total fiscal support to $93 billion, about 20% of GDP, placing Singapore as among the top spenders in this global pandemic. Out of the $33 billion, $13 billion was set aside in the Contingencies Fund, which the Government can draw from in the case of unforeseen developments. So, it is a significant large amount. This is more than seven times, in terms of fiscal deficit, estimated in the first Unity Budget which was about $10.5 billion. Going forward, to ensure sufficient buffer, the Singapore Government is required to maintain a balanced Budget over each term of Government under the Constitution. Elections will likely take place soon and the "new" Government will have less fiscal room in the new term under current fiscal rules. So, if the crisis or its after-effects drags on into 2021 with no improvement in sight, or if other shocks hit us along the way, the fiscal constraint may be overly tight.”
“Monetary stimulus has been limited due to several factors – already low rates and limited impact of weaker exchange rates on exports, lower demand for goods globally and the trend of de-globalisation. Over the next five to 10 years, if many countries carry out fiscal austerity at the same time, the reduction of incomes in each country will likely increase because not all countries can reduce the value of their foreign exchange rates while increasing net exports simultaneously. So, fiscal consolidation could add to the pain of those who are likely to be already impacted by the current demand and supply impact of COVID-19. On the one hand, being dependent on global supply chains running reliably means we will see prices of daily necessities going up. Some of our local businesses and manufacturers are facing labour uncertainty and shortage because their workers have gone back overseas or are in quarantine. On the other hand, Singaporeans are losing jobs or at risk of losing jobs. Sir, the pandemic has taught all of us an important thing – self-sufficiency is important, be it on supplies or labour. There is greater urgency than ever to ramp up self-sufficiency, especially on basic necessities like food, re-develop empty properties and land to do high-tech farming and encourage more Singaporeans to venture into this area so that we can localise the sector and be less reliant on foreigners. In the meantime, our people are gainfully re-employed so we can avoid or reduce hysteresis. That is, there is a permanent change in the workforce from the loss of job skills, making workers less employable even after a recession has ended. To be less reliant on a foreign workforce, we need to localise the workforce.”
“Others received second-hand devices that were incompatible or could not support the software required to run the Home-Based Learning lessons smoothly. By the time we could get them the necessary assistance, they had already missed important lessons. These are just cracks on the surface. Moving deeper, we will find that some of these children are facing many troubling distractions at home, from domestic violence, to having to play the role of parents to their younger siblings. These problems existed pre-COVID-19, and are made worse when everyone is spending a lot more time together at home. Regardless, going digital is the future, and we must equip all our students with the skills and tools to navigate the digital landscape. We must spend more to build on our digital inclusion programmes, as mentioned by Minister Iswaran earlier. This would come on top of enhanced comprehensive efforts to address the challenges faced by students from families that have challenges. Hence, with social distancing measures, social services are stretching their already limited resources to cope with a rising number of cases. May I ask how is the Government working with the social services sector to ensure that they are equipped with the necessary resources to help their clients through this crisis? Social workers too can suffer from burnout in times of crisis. In our pursuit to narrow of the inequality gap, we cannot equalise the outcomes, but we can and we must strive to create equal opportunities and access to resources for all families. The objective of sustainable and inclusive growth must continue to be our goal beyond this Budget. (In English): Mr Deputy Speaker, in English, please. My last point in this section is about addressing economic hysteresis.”
“Should these smaller landlords then be given some relief since the tenants are given two months' rent waiver? It is bad enough that the rent cannot cover the loan repayment. But it is a double blow to have to forgo a two-month rent. I hope the Government can continue to look at the individual circumstances of some of these small landlords, and offer them support through higher property tax rebates, or even through longer bank mortgage deferments. I was happy to hear that MOF, IRAS, ESG and MAS announced a package of measures on Wednesday (yesterday) to support these smaller landlords who may face cash flow constraints due to the relief given to tenants via the deferment of principal and interest repayment up to 31 Dec 2020. In addition, I would also like to touch on the best ways for us to adapt and emerge stronger. Balancing the efficiency and equity effects of technology has always been a perennial challenge for societies. This issue was highlighted in Minister Iswaran's speech earlier, which shows that the Government is looking at the challenges of technology. This is likely to get worse with this crisis, given the newfound urgency to push for greater digitalisation and automation. I am glad we are accelerating the timeline for Secondary School students from the previous projection for them to own digital learning devices in 2028. I look forward to hearing more details from Minister Ong Ye Kung, particularly on the updated timeline. Therefore, in spite of best efforts by the schools, community and social services, some students of low-income families find it challenging to do their home-based learning. Some had to share the devices with multiple siblings.”
“Businesses and employees pay income tax based on income and earnings in the previous fiscal year. Many middle and high-income earners as well as self-employed persons were doing relatively well last year. But this year, many will see their wages and earnings severely affected. Yet, they still have to pay income tax for Year of Assessment 2019. The tax filing deadline has been extended to 31 May 2020 but I hope that the Government can consider further deferring this timeline, considering that this is still a developing situation. I also hope the Government will soften the blow with tax credits or rebates. Tax authorities in other countries are reviewing policies to offer relief to affected taxpayers. Canada, for example, has extended tax payment deadline from 30 April to 1 September 2020. Thailand has extended their tax filing and payment deadline from 31 March to 30 June 2020. These will go a long way to help the sandwiched middle income households and probably a significant number of those aged 40 and above. Mr Deputy Speaker, in Malay, please. (In Malay): [Please refer to Vernacular Speech.]: The third point I want to raise is about empathy for small landlords. On help for businesses, I have received feedback from some residents who are small landlords affected by COVID-19, such as those who own shops that are rented out at lower rates, and in fact, it cannot even cover their mortgage repayment. They have voiced out their concerns about the over-protection of tenants. One of my residents highlighted that, while thus far the focus has been to push landlords to give rebates to their tenants, what happens to the landlords who are themselves in a tight predicament where the rent collected is only a pittance?”
“There is also the SGUnited Jobs and Skills Package that aims to create close to 100,000 jobs, traineeships and skills training opportunities. As the number of job losses has been projected to hit around 100,000 in 2020, this is a highly adequate effort. But wage reduction or downward income adjustment is a significant problem that we must not neglect. I know a family – a typical sandwiched middle income group, husband-and-wife who were laid off from the airline industry. They have two school-going children and elderly parents with chronic illnesses. They found jobs as social distancing ambassadors and are very thankful. But their household income has been drastically reduced and they worry about affording their parents' medical bills and the housing loan thereafter as well as possible far-reaching impacts of the COVID-19 on their children. They had to completely re-adapt to a new format of learning and then big sacrifices will have to be made as they make adjustments to their new income level. Such accounts are not uncommon among many of the sandwiched generation, who had been fairly comfortable managing their various commitments and liabilities until COVID-19 hit. In our pursuit to help workers and match jobs for affected workers, we may not be able to fully equalise the outcomes, but we can and we must strive to create equal opportunities and access to resources for all families and future generations – the children. I hope that further down the road, more healthcare and financial assistance for education cost assistance will be given to affected lower middle and middle income families with higher income thresholds and for those families with above 40-year-old breadwinners. Next, I want to talk in particular about income tax deferments.”
“Mr Deputy Speaker, these are unprecedented times, indeed, as we witness the rolling out of a fourth Budget in less than half a year to help save and create jobs and speed up the pace of recovery when the economy exits from the circuit breaker measures. Some economists and analysts highlight that the Fortitude Budget schemes will help to contain the job losses to around 100,000 to 150,000 or less – down from earlier estimates of about 150,000 to 200,000 – for the full year. So, thank you, Deputy Prime Minister and Minister for Finance Heng and his team for their relentless hard work. COVID-19 continues to wreak havoc on the economy and on the lives of people around the world. Singapore, being highly dependent on the global economy, has not been spared from the brunt of it. But first and foremost, I am grateful that the practical policies, dedicated essential workers and our mostly sensible Singaporeans and people have shielded us from the worst. I will be sharing today on three issues covering support for workers and businesses, emerging stronger from this pandemic and some views on the use of Reserves. First, the coronavirus crisis has split the workforce into three groups. First, those who have lost jobs or at least some pay – we have seen that and some Members here have shared some of their experiences with some residents. Second, we have those who are deemed essential workers who must labour on through the crisis, often at great risk to their own health. And third, there are those who are virtual knowledge workers whose lives have hardly been affected. I am glad to see that more help and support have been made available for middle-aged Singaporeans through the 4,000 traineeships and enhanced hiring incentives.”
“I thank the Minister for the answer. I am glad to hear her mention about the proactive measures that MOM has taken to address fair consideration given the current situation. What I am suggesting in my Parliamentary Question and also in this supplementary question, is about proactive measures beyond, for the post COVID environment. I will give the example of the US congress. It passed the Bill on Paycheck Fairness Act in 2019 to address the issue about indicating salary in job applications. The reason why I am raising this is because I am worried that, for example, fresh graduates in the post COVID environment are wary of taking up first jobs that pay below the median salary for fear that their salaries will always be pegged to it, particularly, those offered by SMEs. So, it is the post COVID environment that I am concerned about, whether we could be proactive in taking these steps ahead of this situation arising. The fresh graduates would rather wait it out if they can rely on their parents, leading to months of post-graduation unemployment. My concern is whether some of the salary or payslip practices by employers will actually lead to further negative externalities in the future, thus exacerbating unemployment numbers.”
“Currently, most power-assisted bikes or bicylces on the list of Approved PABs are generally for city use. Can the Ministry look into other ranges, like electric mountain bikes, which is a new innovation – you can mountain bikes fitted with electric powered trains that can run mountain bikes on trails – to cater to sports enthusiasts? So, whether this covers this range of products in the future would be useful. Mr Speaker, small motorised vehicles are essential to a car-lite Singapore and to be able to embrace wide-spread usage, it is critical that they are safe to use on the roads and in homes. As the circuit breaker comes to an end soon, slightly more people will start moving about in the community. Let us hope riders and users will not forget to comply with the rules on safe riding on footpaths and roads. Mr Speaker, I support both Bills.”
“While a strict import controls regime will help to prevent innocent consumers from being misled into purchasing poor quality non-compliant products, there still remains individuals and businesses who have the capabilities to illegally modify a once-compliant product. Can the Minister share the challenges of apprehending such errant businesses and individuals and what is being done to mitigate them? I believe heavier penalties and education would be a big part of the solution. I hope LTA will make a public list available for easy viewing that clearly defines what is illegal and dangerous and to update a list of approved vehicles and parts on a regular basis to stay abreast with the ever-changing technology and innovations. It is also prudent to provide a wide range of approved PMDs, including highly affordable models and for a range of uses, from leisure to those for heavier, prolonged use by delivery riders. That said, will the implementation of the new import regime incur resources and will this lead to increased import levies and so on? I am concerned that the extra cost will be passed on to consumers. Lastly, on a positive note, I am pleased to observe that the circuit breaker has brought out the sporty side of Singaporeans. Despite social distancing measures, Singaporeans have found ways to keep fit alone, from following online fitness videos at home to working out, jogging and cycling near their homes. As flexible work-from-home arrangements persist after the circuit breaker, I believe Singaporeans will continue to persevere with these endeavours to keep fit. Cycling is truly a great activity for both families and individuals. It is also a useful mode of transportation.”
“Mr Speaker, Sir, the circuit breaker period has seen a rise in the number of visitors to the pockets of greenery around Singapore. Especially on the weekends, power-assisted bicycles (PABs) and motorised personal mobility devices (PMDs) cruising along the park connectors are a common sight. I expect that these small motorised vehicles will continue to be the favourable mode of transport in the current and post COVID-19 period, as people try to avoid taking public transport, while working some exercise and getting some fresh air into their new regimes. As Singaporeans turn to contactless delivery for their daily needs and wants, the number of trips taken and users of these vehicles will undoubtedly continue to rise. It is, hence, very timely to address the concerns brought about by non-compliant devices. Last year, the number of fires related to charging and explosions of PMDs and PABs also doubled, causing property destruction, injuring inhabitants and even killing one. In densely-populated Singapore, this has a spillover effect to the neighbouring houses. Many residents have very valid concerns about the situation and I am glad the Minister has plans to tackle it with the establishment of an import controls regime to prevent the import of non-compliant and unsafe devices. I wish to ask how enforcement will be implemented against online purchase of small motorised vehicles by individuals. These are questions that were raised by previous Members. But I would like to ask whether spare parts, such as battery packs, wheel set-ups, attachments, amongst others, be covered under the new import controls regime? New innovations have made it possible to modify these vehicles. With some tools and online tutorials, one can even do it yourself at home.”
“Over the years, professional standards of property agents and estate agents have improved and I am glad that the Government is constantly reviewing these standards to ensure that it moves with the times. Mr Speaker, Sir, I support the Bill.”
“Of course, this should not be done at the expense of consumers having to wait longer. Property transactions incur huge amounts of money and, certainly, it is something to watch out for over concerns of money laundering and financing of terrorism. The high property prices made it possible for millions to be moved across borders, especially when it involves the purchase of buildings, factories and others. I note that on this matter, the regulations aim to have the real estate industry comply with international standards. But would these be the same standards as those imposed on the financial services sector? If not, how does it differ from MAS guidelines on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT)? For example, just like for the financial sector, AML/CFT, which takes a preventive approach that combines tough licencing and comprehensive reporting requirements, strict AML/CFT regulations and risk-based supervision of the relevant financial and non-financial sectors, what is the extent at which these agencies understand the AML/TF risks and how it can be enhanced? Most importantly, how can we promote a culture of compliance within the real estate agencies? Singapore's property market plays a crucial role in driving our economy and nation building. Private properties and land attract significant amounts of foreign investment. Meanwhile, property transactions often play out as milestones and significant developments in the lives of a typical Singaporean. For example, when one is thinking of expanding their family, moving nearer to schools or workplaces, having ageing parents move back with them to facilitate better care, or, in the case of retirees, to right-size their homes so that they can live more comfortably and so on.”
“To further enhance the standards of the real estate industry, I hope more training and courses can be made available to estate agents to hone their communication skills, keep their knowledge up to date and reinforce information about the laws and ethics to abide by. I think that this will help to reduce the amount of dissatisfaction towards the industry, especially in cases where unprofessional conduct was not intentional. I note that real estate agents can benefit from the SkillsFuture Study Award for the real estate agency industry. But how many are attending such courses, and are the courses truly relevant and specific to their services? I also note that some large real estate agencies do provide opportunities for their agents to upskill themselves, but not all do so. So, I hope the Government can encourage more agents to upskill themselves through SkillsFuture and to meet CEA's guidelines. Indeed, real estate agencies need to take greater responsibility for the professionalism of their agents and the industry as a whole. With the new regulations, are agencies capable of assessing the compliance and duties, as well as the code of conduct of their estate agents, as Minister of State Mr Zaqy mentioned earlier? There may be a need for them to beef up or set up compliance units. I would like to ask: what is the average waiting time for consumers to wait to get their grievances addressed and can this be improved on? What role do real estate agencies play in investigations and disciplinary actions against errant agents registered under their agencies? I think the consumers should be able to go to agencies to seek help and give their feedback on errant real estate agents. This may help to filter out cases involving misconduct, from unprofessionalism and poor service.”
“No official complaint was lodged, but I learned about it from a Singaporean whose family lives in an HDB flat and has been moving house a couple of times. Back when the elderly couple lived together with their eldest son who was unmarried, they wanted to move out from their first BTO flat to a larger house. Their property agent had suggested they register the new house under their son’s name so they could avoid paying the Resale Levy. They agreed, without questioning possible consequences. A couple of years later, the son got married, wanted to move out and get his own house, so the ownership had to be transferred. The levy not only had to be repaid, but with interest. On top of that, the son now has one subsidised BTO flat under his name. The agent did not have selfish intentions, but due to his inadequate advice, his clients incurred a financial loss. And the mistake would follow them for the rest of their lives. Some real estate agents place their self-interests far above their clients’. Others observe the ethics but lack the knowledge and empathy to engage and understand the layman consumers, which results in costly mistakes. The HDB laws can be complex to some to ensure public housing remains affordable and grants stay relevant to the various demographics, while preventing people from profiteering from these subsidies. Therefore, due to the complexities of the policies, there can be a certain amount of confusion when it comes to transactions. That is why it is important to have estate agents who are knowledgeable about the policies and capable of helping their consumers understand them.”
“Mr Speaker, Sir, buying a property, especially a house that one plans to live in, is possibly one of the largest commitments one would make in his life. Despite attempts to cut out the middle man through websites, apps and direct sale on social media, the demand for estate agents remains high. This proves the need for professional, ethical estate agents who deliver their services while looking out for the needs of their consumers. Since the Council for Estate Agencies (CEA) was established in 2010 to handle complaints against errant estate agents, the complaints have in fact fallen over the years. But in recent years, the numbers have been going up again. It was 894 in 2018, highest in six years since 2013. The number has been somewhat stable in the past five years, but we should not rest on our laurels, and I appreciate the Government’s effort to bring this number down. We have to bear in mind that these reports may not even include others who may be less knowledgeable about their entitlements and how to make a report. Elderly selling their properties to right-size under the Silver Housing Scheme, or foreigners renting property, come to mind. A recent high-profile case last year saw a property agent fined $30,000 and suspended for 12 months. He had made offers to a seller of a condominium unit without his client’s knowledge, with the purpose of negotiating a higher commission for himself. This resulted in the client making a final offer which was higher than necessary and suffering a loss of between $20,000 and $30,000. So, the heavy penalty was certainly justified. The incident came to light only because the client decided to contact the seller directly. I would like to share an incident concerning a HDB transaction.”
“But I think over time, if the virus outbreak worsens, they are definitely going to need help. It is a grave time for everyone, but the Bill addresses many pressing concerns and will restore some confidence. Sir, I support the Bill.”
“My next point is on the bankruptcy limits. The revised limits of bankruptcy applied to individuals and businesses are timely and should help them during the six-month period. However, individuals and businesses must be reminded that the section 5 temporary relief is only a moratorium. After the prescribed period, the whole sum that was unpaid will become due. I think we need to reiterate this point to those that are utilising this deferment period within this Bill. Businesses should use the prescribed time to work out longer-term adjustments with their landlords. Otherwise, they may face the risk of ballooning debt once the prescribed period is over. Businesses should utilise all other assistance – salary subsidies that have been given out in the Budget, but this moratorium would be a meaningful supplement, nonetheless. In concluding, I wish to take this opportunity to call for more support and empathy for the middle-income Singaporeans and also Permanent Residents or PRs, who have contributed significantly to our national reserves. If there will be a further package or new relief schemes, please let them be eligible for more help. Some are still reeling from the effects of a weakened economy previously and now, with COVID-19, there are people who have been jobless or intermittently jobless for more than a year while struggling to sustain financial and family obligations on their savings. I understand that there is always help available to those in need on a case-by-case basis but they should not be made to go through a significant amount of red tape to receive it. The Unity, Solidarity and Resilience Budget that has been released by Deputy Prime Minister Heng today actually shows a wide range of help for various groups.”
“This is necessary because there has been feedback about landlords not doing so and many Members of the House have mentioned this earlier. The benefit may be passed on a single method or combination of methods, including but not limited to payment of money by lump sum or way of instalments or an offset against rent or licence fee payable by tenant. For payments and other methods, what sort of documentation will suffice as a form of reference and evidence within this Bill? Would it have to be a formal contract or would a payslip do? What also is the longest period of instalment that can be made? Is there a minimum sum of rebate? So, those are few questions asked. I am concerned that without specifications, landlords may circumvent this with a token sum or long drawn out instalment period that serves little practical purpose to help the tenant. I also note that the fine of $5,000 on property owners guilty of the offence is quite low and the deterrent effect may be too insignificant. Indeed, section 29 states that IRAS gives property tax remission to certain landlords. It also obliges those landlords to pass on the benefit of remission to tenants. In practice, this is usually about 12% of annual rent. So if a landlord fails to do this, it is an offence. However, we can have a situation where in early March, a landlord, out of sympathy for its tenants, reduces their rent, say, by 30%. The landlord will get his property tax remission but he must pass it on to his standards. So, his tenants get double benefit and the landlord, having acted generously earlier, gets none. The question is, must this landlord still pass the benefit of the property tax remission to his tenants – section 29 states he must – or is this something which he can dispute under section 30 of the Bill?”
“Would it be responsible of service providers, for example, an event venue, to market their services and accept deposits without clear knowledge of whether it would be legal to host the event on the stipulated date? Can the Government consider protection to contracts for such events, especially those that are being held annually? Even before stricter measures were imposed, many businesses and individuals had voluntarily cancelled or postponed the events at the expense of their own pockets. Some couples were about to cancel their wedding venue bookings and opted for a smaller venue for more intimate gathering or even tapped on live streaming. Some events do cancel their bookings of physical space in favour of a digital or virtual concept. So people have adapted in advance. I wonder if the Government will consider making some concessions for them, should they make an appeal. After all, they opted for the difficult choice of cancellation out of goodwill for the fellow Singaporeans when postponement was not an option before this Bill came out. How many disputed contracts does the body of Assessors expect to see to and how long would applicants have to wait for their turn? Are there any other qualifying factors such as the scale of the event and contracted amount involved? Finally, during these times, I believe many businesses will have to take loans. Will their inability to fulfill contractual obligations count against their credit ratings and future ability to take on other contracts, in particular for SMEs? Next, on ensuring commercial landlords pass property tax rebates to tenants. I am relieved to note that it is now mandated by law for commercial landlords to pass property tax rebates on to tenants and in a timely manner.”
“I have spoken to some young couples who voiced their concern about this situation. Unsurprisingly, some of them saved a huge amount of money for their wedding only to realize, after all that, financial prudence is key. In fact, for those considering postponement, the venue owners are unable to provide any date for their premises to re-open, and therefore it is difficult to come to any agreement with the other service providers. Therefore, some couples hope to get back their deposits, but these requests has been rejected. They were instead asked to convert their payment into credit for other events or even look for another couple to take over their wedding package. Hence, moving forward, this Bill will hopefully provide some financial help for them. On that note, we welcome this Bill. (In English) Mr Deputy Speaker, I would also like to ask about events slated in the later part of the year, particularly in the year end. There are always plenty of events in the festive period. Most of them are regular annual offerings, whether it is for Christmas, for travel, for the school holidays, and so on. Because this is the peak period for events, venues and services often have to be booked far in advance, sometimes as early as the first half of the year. However, the new regulations only apply to contracts entered into before 25 March. May I ask the Minister or Ministers what is the advice for event organisers going forward? Is it wise to start committing resources to future events or should everyone put all plans on hold until there is significant improvement in the virus situation?”
“However, the impact on the landlords, for example, in the case of real estate investment trusts or REITs, may also have an impact on retail investors invested in these REITs and thus, Singaporeans will have some exposure in the eventuality that the tenants are not able to pay the rent at the end of the six months or duration stipulated. The negative feedback loop is something to take into consideration for both sides of the contractual obligation. In addition, we should also ensure that these measures for deferred payment for six months do not lead to a moral hazard or negative externality issues, where tenants who are already facing trouble take the opportunity to delay payments or lead to non-performing bank loans, causing potential issues, in the future, in the banking system. Mr Deputy Speaker, in Malay, please. (In Malay): [Please refer to Vernacular Speech.] Among those undeniably affected are young couples who are looking forward to their wedding and starting a new life together this year. But what should have been a happy event has turned into a stressful and worrying time, because they are scrambling to contact various service providers to discuss the fate of their down payments or instalments. How will they be protected if they cancel their bookings for their big event? Are the deposits protected under the new legislation only relate to hotel bookings or does it include event companies that are organizing the ceremony? How about companies that provide floral arrangements, bridal cars, videography and photography services? The deposits have been paid but the event will not take place. Can these contractors or companies insist that the contract must be postponed to another date and cannot be cancelled?”
“Mr Deputy Speaker, Sir, in this uncertain times, I welcomed the move to offer some certainty and stability to individuals and firms who have been hindered from carrying out contractual obligations, as a result of the COVID-19 outbreak. Plenty has been said and done about help for the vulnerable and low-income. With this Bill, our middle income Singaporeans and above may find some relief as well as employees who are working for them. Among them are entrepreneurs, small-time business owners, SMEs and sole proprietors. Many of them have to sustain financial obligations, but fear that they may possibly have to fold their businesses or declare bankruptcy. These measures will go a long way in helping to tide them over and keep them afloat during these tough times. The element of fairness is embedded in this Bill as COVID-19 is an unexpected event that affects the ability of businesses and individuals to perform contractual obligations, and there is targeted protection from legal action providing cash flow relief for impacted sectors. However, this Bill and its enforcement only allows temporary relief from the effects of COVID-19 while still upholding the right to exercise contractual obligations. On the issue of fairness, my speech largely touches on how this bill would help the tenants and customers. However, at the onset I would like to also mention that the other side of the contract – the landlords and the other party in the contractual obligation should also be taken into consideration. As mentioned previously, by hon Member of Parliament, Mr Chong Kee Hiong, in the case of leases or licences for non-residential property, this Bill ensures no termination of leased licence where non-payment of rent is due to a COVID-19 event.”
“In addition, as governments impose lockdowns in countries across the world, recruiting seasonal workers will become impossible unless measures are taken to ensure vital workers can still move around, while preventing the virus from spreading. In these challenging times, the poor and vulnerable are the hardest hit. Charities have reported receiving less donations, as in times of an impending economic crisis, people have understandably tightened their purse strings. Manpower too has become hard to come by due to COVID-19. I would like to request for more financial aid to organisations serving the orphanages, nursing homes, disabled and homeless. Social workers too will be overwhelmed with the new schemes and with more people seeking help in these times. I hope the whole process can be streamlined so that eligible parties need not be put through a long wait for help. In conclusion, I have heard so much feedback from both Singaporeans and foreigners that in a pandemic crisis like this, Singapore is the best place to be. Because we have an excellent healthcare system, a Government who cares for the citizens and great people who are going above and beyond to keep our country safe. I am proud to be Singaporean and this crisis makes me feel prouder and more patriotic than ever. I support the Resilience and Solidarity Budgets and I pledge to do my best for my fellow citizens so that we can all get through this crisis together.”
“Some others would have believed and accepted it, especially with so many jobs on the line now. I am sure any employer who resorts to cheating their employees out of their CPF will be duly punished. But I hope the Government will consider the soft approach and help out companies with genuine difficulties. The third segment I have and the final one is on building food, social and psychological resilience as we position ourselves for recovery. One broad question I have the Deputy Prime Minister is how can Singapore citizens and the whole country emerge stronger once the dust has settled. One example is how we can become stronger in terms of food resilience. COVID-19 has also emphasised the importance of having resilient supplies of food and other essential items. Indeed, it is good to know that Singapore is building up our national stockpile of health supplies, including masks and hand sanitisers, so that we will continue to be well-stocked and we have in place a robust, multi-pronged strategy, to ensure that we continue to have a stable supply of safe food. And we are strengthening our food resilience for the long term. But instead of a 30 by 30 vision, can we aim to produce 50% or more of our nutritional needs by 2030, up from less than 10% today? While the supply of food is functioning well in most countries and Singapore at present, problems could start to be seen within weeks and intensify over the following two months as key fruits and vegetables come into season. These types of produce often have short ripening times and are highly perishable and need skilled pickers to work quickly and at the right time.”
“So, I urge the Government to conduct a further review on the macro-prudential measures and consider easing on macro-prudential measures in totality, especially the Total Debt Servicing Ratio (TDSR) and Loan-to-Value (LTV) limits. The intention is to relax access to cheaper loans and credit from banks for sole proprietors and small SMEs, which often rely on personal credit and cash flow to keep their businesses running. With self-employed workers losing their gigs, as well as job losses and wage cuts all round, many will see the TDSR curbing their eligibility for loans. The monetary policy transmission channel is broken from easier monetary policy. When you cannot borrow, it will be difficult for monetary policy to work. Consumers cannot access credit because of TDSR and prudential measures. Companies cannot access credit because banks will be wary of defaults – even with the enhanced risk co-sharing scheme that supports eligible SME loans and the other above support measures. I am also concerned that some parties and individuals may take advantage of the current crisis to make super normal borrowing rates, and I urge the Government to be on the watch for evidence of such behaviour. Next, I have a question on CPF contribution rates. Recently, a resident asked me if it is true that CPF contribution requirement from employers has been reduced. Her employer said it is a cost-saving measure to help businesses. Of course, I told her it was not, and to speak to me or MOM if her boss denies her full CPF payment. However, this brings to mind that in times like this, some businesses may resort to illegal measures to cut their losses. It is fortunate that this resident sought clarification.”
“In our circumstance, we are blessed to have reserves and well managed sovereign institutions such as Temasek, GIC and Statutory Boards such as MAS. However, no matter how large the size of our reserves, it is still limited and we need to optimise its usage. Broadly, my question is conceptually, how and when does the Singapore Government decide to bail out a particular company? Would it be based on the national security angle and the number of jobs they provide? It would be useful to share the broader factors that are taken into consideration in a transparent manner. Next for individuals and small businesses hit by the COVID-19 impact, there are a few issues I would like to suggest and seek clarification. First, in terms of relaxing macro-prudential measures temporarily to help small business and individuals. Under the Enhanced Temporary Bridging Loan programme, the Government will shoulder 80% of default risk and now 90% re-sharing until March 2021. This, hopefully, will help access to credit. The latest MAS and financial institutions support measures such as deferring of repayment for residential property loans and lower interest on personal unsecured credit is largely welcome. However, according to the statistics from MAS, housing and bridging loans have been declining since May 2019. Yet outstanding pawnshop loans have picked up by 3.4% in the fourth quarter of 2019, the fastest pace since the year before in 2018. The concern is that under current crisis and with the above trend continuing, people may be resorting to alternative forms of credit, including the more expensive and higher interest rate loans from money lenders and even loan sharks. Even though interest rates have fallen, access to bank credit remains tight because of TDSR and prudential measures.”
“But if we are still in a recession by the fourth quarter of the year, a third relief package and an extension of rental waiver will be necessary. Can the Government provide further waiver if the situation necessitates it? I also note that JSS has been extended to cover nine months, up from three months previously. In my Budget response, I shared my concerns on the duration of which eligible employers will receive the pay-out. So, I am also pleased when the Deputy Prime Minister mentioned just now that enhancements will be brought forward to April, earlier, and it will be delivered as fast as possible. But with the new enhancements what will be done to ensure the employees will get the grant short support in the shortest duration possible? The other measure that the Deputy Prime Minister mentioned earlier was the Foreign Worker Levy. Firms do get a rebate of $650 for each of the work permit or S Pass holders. So, I am pleased that the foreign worker level will be waived in the month of April. However, we expect the COVID-19 situation to persist for for possibly over a year and these sectors are significant key node of the Singapore economy. Right now priority should be helping businesses stay afloat. We cannot let them adversely be affected by creative destruction. So, will the Government consider extending the waiver beyond April if we manage to get out of the circuit-breaker period. Next, if we step back, and take a more macro view of our measures to help the economy. In other countries facing major economic disruptions due to city or nationwide lockdowns, speculations are flying over whether governments would nationalise or bail out some of their key private services and businesses.”
“Some businesses have already seen a sharp drop such as hotels, even before the additional measures. So, it is possible that non-essential services cover about a third of total employment more than their share of GDP. This is because many of the sectors such as retail, F&B and construction are more labour-intensive than essential services such as financial services or electronics manufacturing. So, roughly 1.3 million workers may be in cold storage for a month albeit productive, possibly, out of the 3.78 million employed at end of 2019. The question to the Deputy Prime Minister is, the short-circuit measures may affect businesses and thus unemployment rates or jobs if it is prolonged and would have been even larger without any Government financial support. Is this going to be a deeper recession than even during the Asian Financial Crisis or the Global Financial Crisis? And whether we need further financial measures to actually enhance or support the economy. The Job Support Scheme (JSS) is a crucial part of the Budget, as I go on to my next question on workers, to help employees stay employed, and to help employers retain their trusted employees. Sir, I am pleased hear just now when the Deputy Prime Minister mentioned that the Government is enhance the JSS under Resilience and Solidarity Budget to have employers pay 25% and now up to 75% for all local employees in April. The question I have is, can we have this higher tier wage support extended to the retail sector beyond April. The impact of the Enhanced Property Tax Rebate is quite small relative to the JSS and then landlords may not pass the savings to retail tenants. I am glad that the total amount of rental waivers has been increased to $334 million to tide over eligible properties for three months.”