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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“Page: 54 I am supportive of the amendment Bill, in particular, the new addition in section 6(a) with strong safeguards set out when providing the financial assistance, including loans and grants, to the IMF, for example, the arrangement that financial assistance will be given only if at least one other government has provided or intends to provide assistance in response to a similar request from the IMF. In the case of grants, additional safeguards were set out with the need for Parliament's approval. That is, powers to give grants to the IMF are subject to Parliament's approval, given the nature of grants as an expense and not an asset. This is an important additional safeguard. However, while I support the amendment Bill, I would like to ask the Minister a few questions. First, whether we should set a limit for the total financial assistance, including loans, grants and other forms of financial assistance, under section 6A, subsection (2)(c)(ii). And I feel we should put a limit based on a percentage of our current GDP or of our reserves, with a cap on a maximum, whichever is lower. One approach could be via 1% of GDP or about $4 billion, or 2% of reserves or around $5 billion, or on a per capita basis per Singapore citizen. This is on top of what is in subsection 2(d) which has already stated that Parliament will, by resolution, fix the maximum amount of grants to be given by MAS. This is because any loan or grant to the IMF under any agreement will be paid out of MAS' reserves. In addition, under subsection 2(c)(ii), the maximum amount that MAS agrees to lend or to give by way of grants or other financial assistance, will the methodology behind the calculation to derive that maximum amount be made public?”
“Mdm Speaker, as a small country, we are, indeed, fortunate to be able to withstand the onslaught of the many tremors that had previously rocked the world's financial system. We have seen how many bigger countries had faced economic crises because of their lack of prudence in safeguarding their reserves. This does not include such earthquakes in the financial market as the collapse of the subprime market in the US, the Eurozone debt crisis, the recent sharp decline in oil prices and other commodities. Governments need to carefully scrutinise their spending and to be honest when making hard decisions. The leaders must take the honourable step to be prepared to explain to the people on any difficult decisions rather than take the road of least resistance to win popularity. Today, the IMF is called into play to help support or rescue governments for a variety of reasons. Across the globe, Angola is the latest to seek a bailout from the IMF that could be worth more than US$1.5 billion. This oil-producing OPEC member is seeking international help to cope with the fallout from low crude prices. Others, like Greece, are still struggling and tapping on IMF bailout funds. Singapore, as a small nation, can take pride in being able to contribute to the IMF. We even hosted the 61st annual meetings of the IMF and the World Bank board of governors in 2006. Today, we are also the home for the IMF-Singapore Training Institute, serving as the regional training centre for the Asia-Pacific region on macroeconomic and financial management.”
“Mr Chairman, in Malay, please. (In Malay): [Please refer to Vernacular Speech.] The religion of a person can play an important role because it is a form of guidance, especially in times of crisis. It is a good sign that more Malay/Muslim youths and adults are actively seeking out a better understanding of Islam. This is evident from the relatively good demand for part-time Islamic Studies in Singapore, from both public and private institutions. One of the key thrusts of MUIS' fifth three-year plan is to focus on increasing the community's participation in Islamic Education, particularly among our young. This will help to ensure that our young remain rooted to the proper values, based on the foundations of Islam. The actions of extremists in the Middle East have generated a lot of curiosity and controversy. Subsequently, there is a prevalence of flawed online resources masquerading as Islamic teachings. 6.45 pm These resources are often dynamic and provocative, and youths who do not have a good understanding of the religion would run the risk of being susceptible to erroneous teachings and become misguided. An effective curriculum in Islamic Studies can help to empower a cohesive and progressive Muslim community. It is important that all institutions offering Islamic Studies provide legitimate curriculum and content that are true to Islam, easily absorbed and understood. Could the Minister elaborate on plans and strategies for part-time religious education in the coming years? Cohesive and Progressive Muslim Community”
“Mr Chairman, Sir, in Malay, please. (In Malay): [Please refer to Vernacular Speech.] Singapore is gearing itself for the Future Economy that will be challenging and offers many opportunities. There will be structural changes in our economy and this will invariably affect jobs and the skill demands of the workforce among the Malay/Muslim community. Retraining and staying relevant to the needs of the economy are necessary if the workers wish to find jobs and keep pace with the changing economic environment. The whole country will have to work hard to stay competitive in the global market. Many businesses are jostling for market share with lower profit margins, as they try to retain their clients or even when getting new customers on board. I believe our Government will do everything within its means to help Singapore's workforce, including Malay/Muslim workers, to be retrained and to keep them relevant to the Future Economy. Can the Minister outline what is MENDAKI and SENSE College doing to help the various segments of the Malay/Muslim workforce so that they can cope with the short- to medium-term challenges, apart from other national initiatives that are available now?”
“Mdm Chair, the Government has implemented many measures aimed at lightening the financial implications of having children. I think there must be a balance in the approach so that as we provide support for Singaporeans to go for marriage and parenthood, we do not overlook career aspirations and heartware, such as better family-friendly environment and infrastructure. I agree with the hon Member, Mr Melvin Yong, about the waiting time for a new BTO flat. So, I strongly support the reduction of the waiting time. The second point I want to raise is that recently, I have resident mothers who approached me to give feedback about the inability to carry baby prams or strollers on board buses with several kids and groceries in tow, and I have personally experienced it with my children as well. Can PMO look into a whole-of-Government approach to improve family-friendly environment and services in our public transport system in the hope of enticing more young parents who have children with ease of family travel and reduce the logistical pains of parenthood whilst on public transport? For career aspirations, how can we walk the talk to eliminate discrimination in the workplace, in particular, for expectant mothers? Can the Ministry of Manpower (MOM) and PMO explore the possibility to ensure that the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) continues to have teeth to effectively weed out workplace discrimination and advocate fair employment, in particular, for expectant mothers, in the workplace? Balance Business Needs and Procreation Policies”
“Mr Chairman, enhancing the Revitalisation of Shops (ROS) scheme and the just announced Favourite Place initiative, serve up an excellent opportunity for small and medium enterprises (SMEs) in the neighbourhood to strive towards their full potential. This is great news all around. Heartland businesses play a major role in job creation. They also make the estates a livelier place to live in. Moreover, they provide residents with services and products with the added benefit of convenience of access, and I believe usually at greater affordability than the shops in the shopping malls. Can the Minister or MND kindly give an update on the progress of the ROS scheme for shops in the heartland? How many estates have undergone revitalisation and which estates are next in the pipeline? Has the range of services and products offered at these revitalised shops expanded as a result of the upgrading programmes? May I also suggest that to rejuvenate out-of-reach heartland food and retail shops, whether MND and other agencies are able to consider the possibility of allowing free parking or lowering charges at selected HDB parking during lunch time, between 12.00 pm and 2.00 pm, for example? But of course, this has to be weighed against the higher traffic during that period. So, the selection of the heartland shops or the shop location is important to boost the activity. Revitalisation of Shops Scheme”
“The Masterplan for HealthCity Novena is highly inspiring in this respect, for it will physically link Tan Tock Seng Hospital, the medical school and all public and volunteer healthcare facilities. This mirrors my expectations of a well-connected estate, which not only facilitates greater ease of travel and convenient access of amenities, but also brings neighbours physically closer together. It would be ideal if agencies could work together and come up with a design master plan that fully integrates the residential areas with amenities and public transport through a network of linkways. Does the Ministry have such collaborative projects with other agencies in the pipeline? Developing a Sustainable Car-lite City”
“Thank you, Madam. Low-income, vulnerable households and young families waiting for their BTO flats require more help in securing temporary housing. There should be greater empathy for single parents, and second- and third-time HDB loan applicants who may be compelled by circumstances to move, such as having to downsize their homes for financial reasons. Whether it is to start afresh or to start a new family, stability and insecurity are important influencing factors. That usually means being able to settle down in a place to call their own. Can the Minister share with the House if there are plans to ramp up the supply of interim rental flats and reduce waiting times? The Fresh Start Housing Scheme is a thoughtful scheme that gives low-income households hope to progress into home ownership. Unemployment is a common problem in vulnerable households and probably one of the main reasons a family would have to rely on this scheme. Some single parents are in transition, for example, and I have residents who are newly divorced homemakers who would require some time to get their children settled in and then find a job, which would be another hurdle. May I ask the Minister how stringent are the conditions and whether suitable applicants could move into the flat and be given a window or buffer time to meet the requirements? Will some priority assistance be provided to help genuine applicants seek employment? Developing a Connected and Car-lite City In our pursuit of a car-lite city, travel efficiency and connectivity must also be improved so that citizens do not find the need to rely on their own transport to get around. New towns must be designed with better connectivity, while mature estates should have their infrastructure enhanced.”
“Given that technology will undeniably be one of the key drivers of the future, how does the Ministry envision technology shaping Singapore's future economy? How will businesses be affected and how are they expected to adapt?”
“Thank you, Mdm Chair. I start, first, with ICT infrastrcuture. Having a pervasive public wi-fi network is becoming expected of smart cities. Many cities like Taipei, Helsinki and New York are investing heavily in free public wi-fi. Link New York City (LinkNYC), an infrastructure project designed to create a network to cover NYC with free wi-fi service, was rolled out at the end of last year. It has been lauded for its gigabit speed Internet that will be available from 7,500 hotspots all over the city. Singapore could do well to benefit from an extensive and high-quality wi-fi network in our push to become a smart nation. As wi-fi becomes increasingly important to tourists, public wi-fi capabilities would also be a point of attraction in our endeavours to boost our tourism sector. Currently, Wireless@SG network is available for free until 31 March 2017. Will this deadline be extended? How does the Government or MCI intend to enhance our Wireless@SG network? Future Economy Services and Digital Economy Madam, I shall take the second and third cuts together. Innovation and technology are increasingly crucial for productivity in all sectors and in enhancing the quality of life. We are now in the era that celebrates digital innovation and automated services. The Government has made a sound investment with its commitment of $19 billion to a five-year plan for research and development (R&D). How does the Ministry intend to tap on this fund to develop Singapore's digital innovation capabilities in the Services and Digital Economy (SDE) domain? The Committee on the Future Economy was launched earlier this year, and corporate capabilities and innovation are among the key areas it will explore.”
“Mdm Chairman, as our economy restructures, we will likely be seeing more growth in the infocomm sector, and this expansion will require skilled and multidisciplinary manpower to facilitate. There are mid-career professionals who may be willing to explore the possibility of switching careers and joining other sectors and some may even be from the retrenched group. I would like to know whether the Ministry is doing anything to attract some of these mid-career professionals with relevant Science, Technology, Engineering and Mathematics (STEM), and also those with non-STEM backgrounds to join this sector. If possible, can the Minister also share his plans to prepare our young for the pre-infocomm sector and make it even more enticing?”
“I would like to ask the Minister for Finance a question with regard to what I raised in the suggestion in my speech on the Budget debate. I actually suggested to move away from the preceding year system to a current year system. I was wondering whether MOF can share whether they are looking into it or are there any plans, going forward, to look into it. One of the reasons why I raised that was because it could help some of the retrenched or some of the professionals, managers, executives and technicians (PMETs) going forward, given that it will also act as an automatic stabiliser for the economic system as well. I hope MOF can shed some light on my suggestion.”
“Mdm Chairman, Singapore is ranked first in the World Bank Group's index on the ease of doing business. Yet, among SMEs, compliance costs remain a significant burden on profit margins. Can the Minister update on the Ministry of Finance’s (MOF) plans to reduce the compliance burdens on businesses? Among some of the biggest compliance burdens that companies face is the necessity of computing detailed records of inputs and outputs to qualify for grants. I have encountered business owners who complained of their grant applications being rejected multiple times due to submission of inadequate information. Sometimes, outputs are intangible and the applicant is unsure of how to put these into measurable amounts. These could lead to significant losses when the applications fail to get approved in time for the deadline of that particular financial year. Sometimes, businesses which cannot cope with the necessary administrative work will have to hire someone to handle the administrative work and that adds to significant compliance costs. On top of that, SMEs may overlook regulatory and compliance requirements, and this can lead to even higher costs to the business when it is subject to penalties for defaulting on payments. More outreach and handholding must be done to ensure that SMEs practise voluntary compliance. SMEs should run through their business model with an appropriate professional, trained in legal matters to aid them in understanding and planning for regulatory and compliance requirements. Perhaps MOF might also want to look into setting up a consultation unit to help SMEs in this area in their first year of business operations and also when policies are updated. Smart Nation and Service Delivery”
“Mr Chairman, over the years, we know our average productivity growth has slowed. This is especially so for sectors, such as retail and F&B. Companies in these sectors are also faced with constraints, from a tight labour market to high business costs. Deputy Prime Minister Tharman also highlighted recently that there has been a divergence in productivity growth between outward-oriented sectors and domestically-focused ones. Even as outward-oriented sectors, such as logistics and manufacturing, saw productivity growth of 3.2% each year over the last five years, in the domestically-oriented sectors, such as retail and F&B, productivity has fallen by about 0.6% each year in the last three years. I note that a number of efforts have been made by various agencies to encourage innovation and the usage of technology to boost productivity, but the impact on productivity has not been evident. Have we got to the root cause of this issue? How have our productivity initiatives been working, in particular, for the domestically-oriented sectors? Can MTI share the efforts to capture new measures of productivity that can be monitored for policy purposes? What is MTI's strategy to raise productivity growth, particularly in the most affected sectors? And if we already have one, are we on track? The low productivity rates, coupled with disproportionately high wages, are worrying as this situation is not sustainable. It suggests that either wages will eventually have to fall as we price ourselves out of the market, or productivity has to go up. But the latter would need some concerted effort and focus, and current measures may need more time before we can see the benefits. Trade Bodies and Chambers”
“Mdm Chairman, the Government has announced the new plans for our $19 billion RIE2020 effort. So my question is: has Budget 2016 already incorporated the fact that companies, especially SMEs, have the possibility of leveraging on RIE2020 to innovate and create value? I wish to highlight the importance that R&D can play for SMEs. In the case of Japan, with its shrinking workforce, we have witnessed how crucial R&D has been for not only sustaining the workforce with innovations to boost productivity, but also inventing new technologies that are admired and sold worldwide. As a small country, we have limited manpower and natural resources. Other countries with more resources are always going to do better when it comes to mainstream products and services. Our SMEs must rise above the crowd with unique selling points and innovative products and services, and that can only be achieved through R&D. But R&D may be costly and may not be easily accessible for some. I would like to propose that SMEs be encouraged to tap on R&D more prevalently. Some measures could include giving them easier access to R&D institutes, polytechnic research units and usage of unused IP technology so that they can enhance their business, and to conduct laboratory tests, for example, at lower costs at our research institutes or polytechnics. National Robotics Plan”
“Overnight, once-friendly diplomacy can be disfigured and the situation can turn ugly, as in Ukraine. Our region could be next, as this is Page: 109 another arena for the superpowers to flex their muscles. Their baring of teeth in the South China Sea is unsettling to many peace-loving countries. I would like to ask the Minister for Foreign Affairs if he could update the House on what is his assessment of relations between Singapore and our key partner, Australia. As we write the next chapter of our history, how are we managing the play by the big powers to expand their spheres of influence in the Australasia region? 7.15 pm”
“Mr Chairman, Singapore, as a small nation, has successfully steered itself through occasional hiccups in its foreign relations with other countries. But we have remained steadfast in our principles which, among others, include that we are friends to all who want to be friends. And we will stand by our friends who have stood by us in times of need. This has seen us well through the years and, indeed, we have been able to make our voice heard at many international fora on a variety of issues. Our Prime Minister, as well as the Minister for Foreign Affairs, Minister for Defence and others, have been travelling abroad to grow the ties that we have established over the years and to update ourselves on the changes going on in these countries. Prime Minister Lee will soon be making a trip to Australia, and, as I understand, it is to forge new agreements, including to enhance our defence cooperation. I think it is timely for us to strengthen our relations with Canberra, especially given that we have robust two-way people-to-people contacts through the years. Many Singaporeans, myself included, have fond memories of our sojourn in Australia. Like many others, I have had my university education in Australia. In fact, our diplomatic relations with Australia date back to 1941 and we were one of the very earliest foreign posts set up by the Canberra government. Over the years, our relations have evolved from education, business to defence. In this current security landscape, I believe cooperation would be even closer for the security agencies in our respective countries. We have also signed a number of mutually beneficial agreements and are on the same page in so far as bilateral trade is concerned. A new cold war is already brewing in Europe.”
“I hope that the Government's assistance through the First Step Grant can be extended to single mothers so that their children, too, can receive the benefits. To me, this is important because their children are also Singaporeans. In addition, I welcome the Fresh Start scheme and hope that the conditions stipulated for families to receive the grant will not be too strict. Finally, for the low-income elderly, there is the Silver Support Scheme, and while the upcoming community network for the elderly is a good measure, nonetheless, I hope that some flexibility can be given, for instance, to those who may be living in a bigger flat, but do not have savings, or family support or have no children. There is a small group of elderly who needs help, who may not fulfil all the criteria for Silver Support and should not be left out. (In English): This Budget calls for partnership among all parties: labour, employer and the Government. I am confident that our workers will be more flexible and resilient under difficult circumstances and be prepared to make adjustments. Just as employers and the Government adjust to adapt and grow, all Singaporeans, too, can do so. On that note, Mdm Speaker, I support the Motion. Page: 75”
“This is important because, during my Meet-the-People sessions and the recent dialogue sessions at MENDAKI Social Enterprise Network Singapore (SENSE), I found that many people within our community are aware of SkillsFuture but are still unsure how to apply and which courses they should take. We must increase efforts to inform the community about the transformation of the economy in the future, the skills that are needed and also how to take advantage of the national SkillsFuture movement. In addition, the increasingly challenging job market has also motivated many of our Malay workers to upskill while many also lost their jobs in certain sectors. If we look at the situation in the current job market, 40% of those seeking jobs through MENDAKI SENSE in 2015 are those with GCE "N" and "O" level certificates as their highest qualifications. Another 30% possess either the Institute of Technical Education (ITE) or diploma qualifications. If this trend goes on and the spectre of an economic downturn becomes a reality, it is very possible that this will have a cascading effect on the economic status of Malay/Muslim families. It is hoped that the Adapt and Grow as well as the TechSkills Accelerator initiatives, will help our rank-and-file workers and our PMETs in general, and in the IT sector, to adapt in terms of seeking jobs and upgrading to the necessary skills, as well as work with accredited employers. The 2016 Budget's focus on economic policies is also balanced by welfare assistance and income support for the elderly, low-wage workers and the young, as well as general measures to help households cope with the cost of living.”
“The three main thrusts of this Budget are: one, a growing fiscal spending alongside a prudent Budget; two, the Industry Transformation Programme to create new value and spur growth; and three, to support firms and our people in facing present challenges, including demographic, cyclical and structural changes that are ongoing. There is also a focus on increasing awareness to ensure that Singaporeans can adapt and gain access to new opportunities. Generally, this Budget shows a commitment to support businesses and industries because they are facing pressures Page: 74 currently. Malay/Muslim firms can still receive benefits from measures introduced during the previous Budget, including wider support through the Transition Support Package. But I urge the Malay/Muslim companies to, if possible, make use of the support given through the Industry Transformation Programme and the Automation Support Package to increase their restructuring efforts because the opportunities to compete are growing smaller. China and other nations are becoming more competitive and we are also facing the issue of an ageing population and the presence of disruptive technology, which will challenge the way firms conduct their businesses. In addition, I hope that our Malay/Muslim Chamber of Commerce and Industry will receive benefits from the LEAD+ programme to build on their capabilities. I hope, in future, the chamber of commerce can play a more important role to help Malay/Muslim firms enhance their contributions in the global value chain, become more productive and seize opportunities overseas. The third thrust is helping our people cope with the changing demography and economy, by learning new skills.”
“A few more were fortunate enough to find jobs but in postings overseas. They have to sacrifice family togetherness in order to stay afloat. They become Singaporean expatriates, a small but growing breed. So, I urge the Government to look into recruiting more mid-career people and give priority to those who were retrenched. Also, I hope that the Government and society do not discriminate those who hold part-time degrees. Instead, the Government should regard them as people who took up the torch to improve themselves at their own pace. They are the lifelong learners and their attitudes and spirit should be encouraged. Mdm Speaker, in Malay, please. (In Malay): [Please refer to Vernacular Speech.] Singapore's economy may be facing challenges currently, but at this point in time, it is not experiencing a downturn. In addition, there is unequal growth amongst all the sectors, with several sectors still seeing growth opportunities. In view of this context, the 2016 Budget aims to ensure that Singapore is able to withstand current uncertainties and drive the nation's economy towards a new phase of development for future growth. This Budget also builds on the successes of the last 50 years. The Finance Minister has emphasised the importance of the "Spirit of Partnership" that will drive Singapore's growth and help to transform the economy through innovation and industry, and build a caring and resilient society. Workers, business owners, the people and the Government must also work together to build a brighter future for Singapore.”
“I also applaud the Budget's focus on "transforming through innovation" by creating an open and innovative urban environment. I hope we can see more JTC efforts to agglomerate certain industries together leading to innovative and sustainable infrastructure solutions which may bring about overall cost savings for businesses. Similarly, I am especially excited about the "blue ocean" approach to pioneer new industries and create the industrial park of the future at Jurong Innovation District. I do hope more of this can be replicated in other areas in Singapore, hopefully, maybe in Toa Payoh. But I think that is a bit of a stretch. I believe that by creating the right environment, we can turn it into the right ecosystem for an innovative and creative industrial sector. From the workers' standpoint, this Budget's social measures do have a sharp focus on helping low-wage workers relative to PMETs. However, the vulnerable group in this current environment of structural change would also include those who are in their mid-careers and higher up the corporate ladder. They are graduates, earning higher salaries, in their 40s and are often targeted for lay-offs as part of cost-cutting measures. Others are let go because they become redundant as their skills are no longer relevant or required. This applies also to those who are non-graduates, diploma holders. They would have housing loans, renovation loans and car loans to service. And then there are children's school fees, school transport, three square meals a day for the family. These are very daunting demands when you do not have a job. Some are already retrenched and taking jobs with lower wages. A small number would have taken up driving taxis or joined the Uber or GrabTaxi operators.”
“Even as we help to support our people through change in this Budget, I strongly urge the Government to give more bite to the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) to reinforce what measures we are doing now for the medium to long term. And I have mentioned this in my speech during the Debate on the President's Address. I am all for introducing wider laws to protect against discriminatory practices. Our entrepreneurs and their businesses are one of our engines of growth. We are right in giving them assistance. All said, our economy inevitably transforms, and they, too, have to transit and shift their mindsets. As a senior oil trader told me, I quote: "If I can't sell one petroleum product because of market change, I will look for other products to trade. There is a long chain of by-products from a barrel of crude and it requires the same skill set except that I have to learn something new, get out of my comfort zone, understand the next product and its uses, its price and market share, and start to go overseas to talk to new customers." And that is the entrepreneurial mindset. We also have many small entrepreneurs and these include retail outlets in the HDB heartlands. Already we have seen the demise of the mom-and-pop shops. Let us not allow our town centres to turn into shuttered centres. I hope the Government will look into sustained measures to revitalise these centres. One thought that comes to mind or a simple quick way is to lower or make free parking charges at town centres during lunch hour, especially for those which are not located in populous or popular neighbourhoods. HDB could also look into actively managing the tenant mix Page: 73 at these centres, so that there are wider and more attractive choices to draw customers.”
“But the macroeconomic benefits of shifting to a current year system or scheme may have added support now as, under the preceding year basis, tax is paid on income earned in the year before – which would hit the newly retrenched or those who just had a pay cut or even those with a wage freeze amidst rising costs. It is likely that as we restructure and face increasingly volatile global business cycles, income streams for both individuals and companies will become more unpredictable, making it more difficult to plan for deferred tax payments as per preceding year basis. Successful countries which have successfully transitioned to the current year basis tax system include Australia and Malaysia. It may yet be too soon to react and stave off a recession. And yes, we are not in sight of a recession but we may see zero growth and, with this, comes cyclical and, potentially, structural unemployment. We need to monitor very closely the pattern of retrenchment and shuffling of workers. We must ensure that the connection between hard work by Singaporeans and the fruit of their labour remains intact. For example, those who have been toiling day after day at the shipyards, factories, hotels, retail stores, offices, banks, trading houses and airports should not be unfairly treated. We must not allow foreign employers to furtively downgrade and reshuffle local staff under the guise of economic restructuring such that they create openings in senior ranks for expatriates to take over from the locals. To those who harbour such intentions, let this be a shot across the bow.”
“But at this point, I would like to suggest that we relook at the option of moving to a current year pay-as-you-earn (PAYE) basis of income tax assessment as an automatic economic stabiliser. This issue has been discussed slightly more than a decade ago by some economists. I refer to the summary report of a workshop on "PAYE Taxation System" jointly organised by the Institute of Policy Studies (IPS) and the Economic Society of Singapore (ESS) on 23 October 2004. While discretionary fiscal or Budget measures we are seeing now could be seen as a macroeconomic stabilisation tool, its effectiveness may be limited by the long lags between fiscal policy decisions and their impact on the economy, and also the difficulties in determining the optimal amount of Page: 72 transfers, disbursements and rebates. Ultimately, the aim here is to do a little bit more from a tax payment perspective to allow Singapore to have a slightly stronger foundation to better withstand global economic shocks. The rationale for considering the current year basis is to enhance the effectiveness of the tax system as an automatic stabiliser and to help taxpayers better manage their cash flow by matching tax payments and incomes. Indeed, a shift to the current year basis could increase the compliance burden of the tax system, cause uncertainty for some taxpayers, and also reduce cash flow flexibility for others. An accurate system of assessing current year income is also important for a successful PAYE scheme.”
“Mdm Speaker, I join in the chorus of hon Members who congratulate the Finance Minister for presenting a Budget that will help our economy innovate and ready it for the future. It is a Budget that addresses the needs of the business community, especially those in the oil and gas industry and the oil-and-gas related industries – a sector that has seen a sharp decline in business conditions in line with the fall in oil prices. Many have had to downsize and recalibrate their business model. Budget 2016 aims to balance the need to sustain reform with short-term counter-cyclical measures to support slowing growth. The prudence of the Budget is apt as it keeps some dry powder for potential off-Budget measures, if needed. It is also a Budget with a social focus, extending help to the lower-income groups, families with children and the elderly, but also professionals, managers, executives and technicians (PMETs) to some extent via or through efforts helping to adjust to changing circumstances. These are groups that are especially affected both by the cyclically slowing economy and by the structural shifts affecting a number of sectors in the economy. Some may say this Budget is sombre and lacking in "goodies". But I think otherwise and believe that, in the context of past Budget measures which are still being implemented, this Budget is measured and well-calibrated to take on the storm. The Singapore economy is in transition and some in the workforce are experiencing rising incomes and even employment volatility. We have focused a lot on the medium to long term and they are very valued measures.”
“I thank the Senior Minister of State for the answer. I am asking the question in the context of my constituency where there is an increasing number of elderly and elderly residents with disabilities as well. My supplementary question is: will the Ministry consider waiving the concessionary levy altogether for the elderly who are aged above 80 or 85, for example?”
“I thank the Minister for the answer. I just have a specific question. In the Minister's experience in dealing with the incidents over the past decade or years, could he share specific industries, for example, that have been flouting some of these rules?”
“Mdm Speaker, I thank the Minister of State for the answer. I just have one follow-up question. With regard to the resale levy, I have been seeing a substantial number of residents persistently asking for help with the resale levy incorporated into their loans. There is an increasing risk of them being unable to pay the resale levy in full before purchasing the flat. What other plans does HDB have to help because these requests for resale levy increase over time?”
“I thank the Senior Minister of State for the answer. My question actually arose because there has been an increasing number of incidents and also feedback from my residents in Toa Payoh East and I am sure in other constituencies in Singapore as well, especially those that have an increasingly ageing population. A number of my elderly residents have been hit by bicycles that have been moving much faster than the 25 km/h speed limit mentioned. What other further action plans have been taken to enhance the enforcement on these electric bicycles, especially on pedestrian pathways and traffic crossings in particular?”
“Mdm Speaker, I would like to thank the Minister for answering this question. I just have a follow-up question. In terms of the third concessionary loan, does the Ministry have a proportion of the number that have been rejected for the third concessionary loan applications? The reason I am asking is because a lot of families who had sold the first or second home, for example, probably wanted to restart or have a fresh start due to divorce proceedings or are in single-income families. This is a vicious circle. So, on the third concessionary loan application, to what extent are the rejections, if the Minister can share with us on that?”
“I thank the Senior Minister of State for the answer. I have a supplementary question on transitional units. May I know how many such units are there available or is there a rough estimation on how many will be available?”
“To further help PMETs to adapt, we need more transparency at the macro level to examine where the demand is in terms of skills, so that Singaporeans can make timely informed choices in their skills accumulation to meet future demands. The displaced PMET workforce remains a significant potential contributor to the economy. Every displaced PMET matters. Mr Deputy Speaker, Sir, every Singaporean wants to achieve great things – for themselves, their family and the nation. As we face ever-developing challenges, we, as parliamentarians and individuals, have a duty to our fellow citizens to continue to ensure that every Singaporean has the best possible opportunity to reach their fullest potential. This is how we strengthen our Singaporean Core and prepare ourselves for the next 50 years and beyond. On that note, Mr Deputy Speaker, I support the Motion of thanks. 5.46 pm”
“Deputy Speaker, Sir, my great concern is that this is merely the tip of the iceberg, as Member Patrick Tay has mentioned, as many PMETs, because of embarrassment, perceived loss of face, or the belief that we would be unable to help, are reluctant to approach Members of Parliament for Page: 66 assistance. It is hard to hold on to that sense of belonging, of being Singaporean, when you are not able to provide for yourself or your family in your own homeland. The e2i's Employability Coaches in its Career Services Centre highlighted the following. First, mid-career jobseekers have to grapple with acquiring new skills and to accept lower salaries. Second, workers with long years of service without acquiring new skills or increasing their scope of responsibilities, find it challenging to find a similar job matching their last-drawn salaries. And, third, employers are unwilling to offer jobs with higher salaries to potential employees who have not built depth in their field of expertise. We must also consider how to effectively redeploy the segment of workers mentioned above. They do have specialised skills which are valuable. In addition, employers need to be more open in recruiting older PMET workers who are likely able to pick up new skills faster due to their technical background. One approach would be to match PMETs with our SMEs in a more structured way. SMEs make up 99% of the companies in Singapore, employ 70% of the workforce and contribute to nearly 50% of our GDP. And as SMEs are currently facing three key business challenges, namely, high labour costs, manpower shortage and increasing competition, the channelling of displaced or retired PMETs into appropriate SMEs makes great sense.”
“Meaningful sanctions will go some way to ensuring optimal employment practices. Deputy Speaker, Sir, employment growth in Singapore in the first three quarters of 2015 was the lowest in six years. Disproportionately hard-hit are the PMETs. The hon Member Patrick Tay has highlighted some of that earlier, but the Ministry of Trade and Industry (MTI) reported in the first three quarters of 2015, a significant majority of seven in 10 of employees laid-off from their jobs were PMETs, many of them degree-holders aged 40 and above. This is an escalation of the trend which has been growing in the past few years. Between 2014 and 2015, the Employment and Employability Institute (e2i) experienced a more than doubling of the number of PMETs approaching the organisation for assistance. From 128 applicants in 2014, e2i saw 337 applicants registering their interest to undergo intervention programme last year. Within my own constituency, we have seen a slow increase in PMETs attending the Meet-the-People Sessions, requesting assistance because they have not been able to find new employment. One such constituent is a 56-year-old tower crane operator, who was working for an offshore oil and gas company. Due to the downturn in the industry, his contract was not renewed and he had been searching unsuccessfully for employment in any industry for the past year and e2i is currently assisting him to obtain a Class 3 driving licence, so he will be able to find work as a driver. Another constituent is a 52-year-old IT Systems Director who, in his last job, earned in excess of a quarter of $1 million a year but was retrenched over a year ago and is still unable to find a new job.”
“Likewise, in Finland, Finnish employment law specifically prohibits discrimination against employees on the basis of a similar range of factors. Employers found guilty of discrimination can Page: 65 be fined or imprisoned, while victimised employees may claim compensation for illegal discrimination. The employment laws for both countries have essentially made discriminatory practices prosecutable by law, in order to emphasise the importance of equality. Deputy Speaker, Sir, the TAFEP framework deserves to be equipped with more teeth to be more effective in weeding out discriminatory workplace practices. MOM is introducing the Employment Claims Tribunal which covers PMETs earning above $4,500. The Tribunal will have the power to make orders for employers to reimburse employees for employment-related claims. Parties who disagree with the decision of the Tribunal or with the quantum of the award made by the Tribunal, will have the right to appeal to the High Court to review the decision. These enhancements will go a long way towards ensuring that all PMETs and non-PMETs are protected under the law. However, I propose that we take things a step further. If we, as a nation, are serious about ensuring that all Singaporeans have equal employment opportunities, we must also have the power to impose meaningful sanctions upon errant employers, as the laws in Australia and Finland allow. In addition, these sanctions should be extended to cover incidences of discriminatory practices during the hiring process. We must ensure every person has the same opportunities, giving each citizen the same platform to excel by their own merits. This is even more important in an economic environment where labour market competition runs high.”
“We all remember the bad old days of the job advertisements in our local newspapers which would boldly state, for example, only a certain race can apply. Thankfully, those days are firmly in our past. I am particularly pleased to note that, based on the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP)'s 2014 annual report, the number of complaints lodged against discriminatory practices in 2014 had been almost halved from 2013. Employers are proactively seeking out resources to hire previously-disadvantaged groups of people. The number of enquiries in this regard has risen by about twice from the year before. This is very encouraging, as it is a clear indication that outreach exercises have been helpful and more companies are developing into conducive workplaces on their own accord. While TAFEP has been inspiring and supportive, greater enforcement is necessary to get passive employers on board. The Australian Government's Fair Work Ombudsman comes to mind as a model statutory agency that not only educates, but investigates and enforces. If there is a serious breach of a workplace law, Government officials will conduct the relevant investigations. The offending employer can be taken to Court, depending on the outcome of the investigation. The Australian Employment Act prohibits discrimination against employees based on race, religion, age, gender, physical or mental disability, marital status, family or carer's responsibilities and pregnancy, amongst other factors. Employers guilty of unlawful discrimination could be fined up to A$54,000 per contravention for a corporation and A$10,800 per contravention for an individual.”
“It is also important to strengthen our sense of belonging, especially in the efforts to ensure racial harmony and also increase the confidence of the Malay/Muslim community, so that we can stand shoulder-to-shoulder with the other communities at the workplace. Hence, I would like to stress the importance of improving fair practices in job opportunities. In the current situation, where we face a landscape of a slowing economy in the future, tight labour Page: 64 market and disruptive technology, it is crucial that focus is given to overcoming the perception that the available opportunities are unequal and there is discrimination. This is important in order to avoid potential social and security issues from emerging in this country in the long term. Singapore's economic challenges will impact everyone in Singapore and not just the Malay/Muslim community. We may see a future scenario where current Malay/Muslim workers and those who will enter the job market must be ready to compete on an equal footing in the job market. I am sure that the Government will do its best to help those who are affected to find employment. Hence, while no Singaporean will be denied the opportunities, it also means that no one will be given special treatment. I end with a poem stating that there are opportunities being made available for everyone equally and we should also ensure that we have a broad view of the entire situation. "A major lane outside the city Travelling by car in the evening Opportunities are available equitably We have to keep an open mind." (In English): Deputy Speaker, Sir, I shall now continue in English to discuss enhancements to our employment practices as well as the challenges that the PMETs face.”
“About 45% will go to ITE, while 20% will become post-secondary school students. If we look at the job market now, 40% of people who seek employment through "MENDAKI Sense" in 2015, for instance, are those who have "N" or "O" level certificates as their highest qualifications. The other 30% have ITE or Polytechnic diplomas. If this trend continues and if economic recession takes place, it is very possible that this will have a cascading effect on the economic status of Malay/Muslim families. At the other end of the spectrum, initial findings from a study commissioned by MENDAKI about employment prospects, which was done on over 100 Malay/Muslim graduates, managed to give a peek into the situation involving our Malay/Muslim graduates. The study was done by Prof Tan Khee Giap titled "Longitudinal Study on Comparative Employability and Career Advancement Path for Tertiary Educated Malay/Muslim Singaporeans and Chinese Singaporeans". Over 70% of respondents showed a risk-averse attitude and cannot see themselves moving to another industry in the next five years. Almost 60%, for instance, are unaware of the latest SkillsFuture initiatives. More than 60% feel that they will need assistance to enable them to progress in their careers. If these findings are taken as an indicator, future PMETs from this cohort will be facing major challenges. Therefore, it is important to prepare our youths and younger workers to face future challenges. Workers without new skills or those who have lower qualifications and skills will be affected. The recent call about SkillsFuture is timely for our Malay/Muslim youths. Recently, MENDAKI set up a Future Ready Committee that aims to play an important role in this issue in a more consistent manner for the long term.”
“This improvement was the result of various programmes by the Government and Malay/Muslim bodies. However, our community can achieve much more and we should also seize more opportunities in Singapore and the world. The Minister-in-charge of Muslim Affairs has outlined three challenges for the Malay/Muslim community. One of them is staying relevant in a rapidly-changing economy. If there is a good time in our community's history where we can all rise and build a better future together, that time is now. We have many young people with a median age of 31.4, compared to the national median age of 37.4. In a few decades, we will have the opportunity to Page: 63 build a larger middle class that is highly educated and successful. This group will become an important component of a strong Singaporean Core – as positive contributors who are essential to the nation in all areas. Nonetheless, this opportunity can also be viewed as the biggest challenge to our community. If we fail to harness the potential of our youths, it can turn into a major and great loss. We should also focus on efforts to encourage and channel our youths into sectors that have the potential for high growth. These sectors can provide high salaries and the community should try to penetrate and take advantage of these sectors. These include new areas that are required by digital transformation, special production activities, applications and modern services, which we will see in our future economy. We must also maximise the potential of youths who do not have tertiary education. I would like to highlight the findings from the journal of the Third AMP Convention, whereby, out of the cohort of Primary 1 Malay students, about 60%-65% of them will not receive higher education.”
“We must demonstrate our competence in our duties and that we represent and protect the interests of all Singaporeans, not just any particular race. Smaller GRCs – as proposed by the Prime Minister – will enable us as Members Parliament to connect more closely with our constituents and represent them even better. This is what makes Singapore strong, that we all look out for one another, regardless of our various backgrounds, for the benefit of our nation as a whole. We are also justifiably proud of our system of meritocracy. But along with that, we must also work towards ensuring that all citizens have equal opportunities for social mobility. As science and technology advance at an exponential rate, we may soon be confronted with many chasms – one of which could potentially be between those who are able to use technology and those who are left behind. In addition, a lag in skills catch-up could lead to technological or structural unemployment, making matters worse. Programmes have already been put in place to help train all Singaporeans and narrow the skills gap. There have been many useful training and educational opportunities to help to level the playing field for all Singaporeans, no matter what their starting point. These include the SkillsFuture and the recently set up Future Ready Committee in MENDAKI, amongst others. I would like to, first, focus on the progress that my community, the Malay/Muslim community, has made as well as the opportunities and challenges that we face. Deputy Speaker, Sir, at this point, please allow me to speak in Malay. (In Malay): [Please refer to Vernacular Speech.] The Malay/Muslim community has made significant progress over the last 50 years.”
“Mr Deputy Speaker, Sir, I rise to speak in support of the Motion. Sir, The President has set us on course in his speech and we are charting the path for the future. Singapore, as a nation, has to find our way amidst the shifting sands of global economic, societal and political developments. But as the economy and society evolve rapidly, Singaporeans are in an ongoing struggle to survive and thrive. Page: 62 As we continue to adapt and develop, we must go beyond merely acquiring skills to developing an outlook that is enlightened and progressive, being confident in ourselves and having the strength to welcome the participation of some non-locals into our workforce to complement and supplement us in areas where we lack resources. But in the process, it is our deeply rooted Singaporean Core and sense of belonging which will inspire Singaporeans to continue to propel the nation forward. Sir, a component of a sense of belonging is a firm belief that there are equal opportunities for all Singaporeans and every citizen knows that he or she has an equal chance to participate in and benefit from the nation's future progress. As the President pointed out in his Address, we must strive to leave no one behind, even as we create opportunities for all. The Prime Minister yesterday highlighted the importance of upholding multiracial diversity in our political system; in particular for minorities to have equal opportunities for political representation in the Elected Presidency as well as the GRC system. This assurance of representation in leadership contributes towards all races having a sense of belonging to this nation. And it is, of course, also the case that all Members of Parliament – regardless of our ethnicity – are required to prove ourselves in the course of our terms.”