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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“Mr Speaker, Sir, I thank the President for her Address and I express my support for the Motion. Mdm President had shared that even as we leave the crisis of our generation behind us, we are entering into a different, dangerous and troubled world, as the Prime Minister has repeatedly mentioned earlier. Indeed, Singapore is at a new crossroad – an ageing population, rising costs and interest rates as well as greater global competition for business and talent force us to think about our future and our survival. It is imperative that Singaporeans trust and partner our 4G Government to combat these challenges, just like how we fought and overcame COVID-19 together. But as Deputy Prime Minister Lawrence Wong mentioned a few days ago, beyond building infrastructure and hardware to future-proof Singapore, the future and welfare of Singapore is at the crux of it, the collective responsibility of all of us and not just the Government alone. Today, I intend to share three things that resonated most with me from Mdm President's Address. First, our ageing population is now a reality. I think Deputy Prime Minister Lawrence Wong and many others have highlighted this. As at June 2022, 18.4% of the citizen population are aged 65 and above. This number will grow to 25% by 2030. More and more Singaporeans aspire to live independently, which leaves more elderly couples living on their own. I am glad that Mdm President particularly highlighted enhancing retirement adequacy for Singaporeans. This is something I am very concerned about, having previously been involved in the last round of Central Provident Fund (CPF) changes as a member of the CPF advisory panel and have advocated extensively during my Budget debate and Committee of Supply (COS) speeches on this issue this year.”
“With the support of the public, private and people sectors, I have faith that we will act specifically to make us more resilient and prepared for the next crisis, whenever it hits in whatever form. Sir, I support the Motion.”
“More of our heartland merchants and hawkers are also hooked up onto digital payment solutions and electronic delivery platforms which were hastened during the COVID-19 period. This is all, in part, down to the efforts of NEA and SFA to reach out to stallholders during the pandemic. These intensive outreach efforts had also helped to achieve a 99.9% vaccination rate across hawker centres, wet markets and coffee shops and to implement the rostered routine testing regime to test thousands of hawkers and workers, which allowed our hawker centres, wet markets and coffee shops, to maintain operations and serve the local communities. This rostered routine testing at the covered plaza in Toa Payoh East and Lorong 8 Toa Payoh has played a part to reassure safety to residents and hawker patrons in those markets. On behalf of the residents and hawkers at Toa Payoh East constituency, I really do commend the swift efforts by the agencies which minimised COVID-19-driven disruptions for all. So, even as we emerge from the pandemic and transit back into more in-person activities and interactions, I hope the Government and communities alike will continue to sustain the momentum behind our digitalisation efforts post-COVID-19. Mr Speaker, Sir, as a Deloitte Insights report points out, following COVID-19, governments should strive to transform their operations not only in healthcare but in areas like service delivery, workforce regulation and procurement. I am proud that Singapore is in the lead, taking stock of what they have done well and what can be improved, from its response to this crisis of a generation. However, we cannot stop at these conclusions.”
“I am also touched and proud of the community's ability to rally together, such as under SGTeguhBersatu. The task force, with the support of our social workers and religious teachers, came up with a psycho-social resilience framework to nurture a new norm of a resilient self, family and community, and set up a Care Network and interactive e-forum to help everyone affected cope with the disruptions to their daily lives. MENDAKI also helped our students in need to procure digital devices for online learning, while Muis, the mosques and Islamic education centres and providers helped equip our asatizah with the skills to provide religious content online. I also would like to take this opportunity to thank the Singapore Malay Chamber of Commerce and Industry (SMCCI) for their forthcoming support to companies, small businesses and families during the pandemic. They demonstrated how a true “gotong-royong” spirit can drive resilience in the community. (In English): Mr Speaker, in English. I am sure many of us can agree that one positive from the past three years is the acceleration in our digitalisation journey. Not only has GovTech rolled out nationwide, data-driven tech solutions like SafeEntry and TraceTogether as part of our pandemic management measures, ordinary Singaporeans have also gotten comfortable with operating in the digital space. There are a fair number of seniors in my constituency in Toa Payoh East and I am extremely heartened when they share that they are now able to talk to their grandchildren more often over video calls or watch performances online over Zoom and I think, more importantly, also be able to make bill payments to agencies in the comfort of their own homes.”
“I hope MOM and relevant agencies are already looking or will be looking at the data on the trend of foreign workers and pass holders from before the pandemic up till today, to assess and mitigate our manpower vulnerabilities going forward. Finally, on mindsets. As the White Paper noted in the lessons to be learnt from this COVID-19 episode, adaptability and flexibility will continue to be key in tackling future pandemics or crises. Mr Speaker, in Malay please. (In Malay): [Please refer to Vernacular Speech.] This is also an opportune time to reflect on the contributions and sacrifices that the Malay/Muslim community has made at the height of the COVID-19 pandemic. From Malay/Muslim frontline workers such as doctors, nurses, social workers, delivery riders, safe distancing ambassadors and all those who worked day and night, including members of the Cabinet and Ministry staff who drafted policies, regulatory amendments and budgetary measures quickly to deal with the COVID-19 crisis at its peak, I would like to take this opportunity to say thank you. In addition, our religious and Malay/Muslim agencies also stood out. Majlis Ugama Islam Singapura (Muis) and the Office of the Mufti provided clear directions in line with Islamic teachings during those tough times as we had to scale back on physical attendance to congregational prayers and other important religious practices. Provisions were specially made for vulnerable groups, reminding all of us of the need to protect the well-being of our community while performing our religious duties. The use of digital technology is a good measure implemented for prayer sessions and congregational prayer slots in mosques which was done quickly and was well-coordinated.”
“One example would be how around 3,000 Safe Distancing Ambassadors and enforcement officers were deployed and coordinated by the Ministry of Sustainability and Environment (MSE) to ensure compliance with safe management measures (SMMs) and vaccination-differentiated SMMs in public spaces. When commercial flights were suspended during the height of the pandemic, the Public Service Division (PSD) quickly worked with the private sector to redeploy aviation workers to fill urgent manpower needs in both public healthcare institutions and public agencies. There was an added level of efficiency as the aviation staff already had the competencies to deliver basic care as Care Ambassadors. Sir, I am glad that the White Paper has acknowledged the transferability of certain competencies across multiple jobs or roles, in suggesting that the Government will put in place a more centralised system to tag crisis-time roles and training suitable individuals ahead of time. I have previously advocated for rationalising disparate jobs and industries in our economy and identifying overlapping or complementary skillsets or competencies. This can form the basis of our other policies, for example, offering better job matching and placements at our Community Development Councils (CDCs) and other agencies; or designing more structured training pathways under initiatives like SkillsFuture, where workers can progressively train in cross-sector skills and competencies. Separately, has the pandemic also helped to strengthen the Singapore Core in our workforce? While it should remain Singapore's strength to remain open to the world even in trying times, the prolonged pandemic has seen expatriates and migrant workers return home to be with their families with no certainty of return.”
“I look forward to hearing more concrete plans on how the Government intends to design its facilities to be multi-use and re-deployable into accommodation, medical and other critical facilities during a crisis. However, I am also concerned about more bespoke infrastructure for which substitutes are not readily available. For example, Members may remember the publicised COVID-19 cluster outbreaks at the Jurong Fishery Port in July 2021 and Pasir Panjang Wholesale Centre in September 2021. As these are key nodes for the distribution of seafood, fruits and vegetables to our supermarkets, wet markets and hawker centres, it was unsurprising that these outbreaks grew to become one of Singapore's biggest community clusters with more than 1,000 linked cases. The PPWC had to close and cease operations for three days. In Toa Payoh East, for example, at the Toa Payoh East Lorong 7 wholesale night market in my constituency, they were similarly affected and closed voluntarily for two weeks after COVID-19 cases were discovered. Sir, I would like to commend the National Environment Agency (NEA), Singapore Food Agency (SFA) and Enterprise Singapore for responding quickly to manage the virus spread and help traders activate alternative supply arrangements. And they have done so in Toa Payoh East, too. Going forward, we may need to look at our preventive strategy to manage disruptions at such bespoke hubs and assess if there is sufficient capacity at alternate distribution ports and centres to handle contingencies that cripple a particular distribution centre. Third, on manpower, Mr Speaker. A big plus that did not seem to be highlighted adequately in the White Paper is how we managed to effectively redeploy manpower to where it is needed.”
“While some of this information would concern national security, a limited disclosure to the public would reassure Singaporeans that we are disruption ready. There will, inevitably, be an additional cost as we build buffers and diversify our supply chains. Importantly, have we calculated how much more we are willing to pay for such "insurance" as compared to buying "just enough" and from the cheapest source? Moreover, does this mean that our Government procurement guidelines need to be amended to facilitate this aim or do the existing value-for-money metrics accommodate this objective to "insure" ourselves against unknown shocks? Finally, as we invest in boosting our local production capacity, our natural constraints mean that we will still have some reliance on foreign sources to augment our domestic solutions. Many Singaporeans may not know this, but we have Singapore-based PUB officers constantly stationed at the Johor River Waterworks in Kota Tinggi, Malaysia, to ensure the smooth supply of imported water into Singapore. So, yes, we have a group of Singaporeans who are working in Kota Tinggi on a daily basis. While these officers commuted daily across the Causeway pre-COVID-19, many of them had to make personal sacrifices and spent up to one month per shift away from their families when the pandemic-related travel restrictions were in force. They, like many others, are the unsung heroes in our fight against COVID-19 and we are all deeply grateful, and to their families too. Second, on infrastructure. The collaboration between our public and private sectors enabled large-scale care facilities to be mobilised and demobilised at speed during the pandemic. This helped to manage the stress on our permanent healthcare facilities as the number of cases peaked and ebbed.”
“Mr Speaker, Sir, this Motion on Singapore's Response to COVID-19 and the recently released White Paper is a welcome first step to boost Singapore's capacity to weather not just the next pandemic, but other unforeseeable disruptions in future as well. It charts the broad directions that we need to head in to enhance our resilience as a small country that is susceptible to global or regional shocks. I will focus my speech on the more general thrust of how we should enhance Singapore's resilience as a nation. I will address how we can better prepare to prevent or manage significant disruptions to our way of life in four parts – in resources, infrastructure, manpower and mindsets. First, on resources. Early on in the pandemic, we saw how other countries implemented nationalistic and protectionist policies to restrict the export of essential medical supplies like medical-grade face masks, as demand spiked locally. Being an import-dependent economy, Singapore initially suffered difficulties in securing critical medical supplies. Also, in early-2020, many countries, including Singapore, saw panic buying and hoarding of essential supplies amid the uncertainty and the prospect of having to be confined at home. In Singapore, we did well to keep supplies flowing and assuage Singaporeans of our sufficiency. In reviewing our stockpiling strategies, I hope the Government will make the revised comprehensive list of critical items known to the public. As Deputy Prime Minister Lawrence Wong mentioned, I was glad to hear that there will be a fore-planning team and department that will be set up for future crises. The essential thing is whether we can determine what is the level of redundancy we need for each resource.”
“Thank you, Mr Speaker. I would like to thank the Minister of State for his answer to my question. I have two supplementary questions. My first is in regard to the assessment of the long-term inflation by MAS and the Government. How often would MAS or the Government assess the long-term inflation estimates, taking into consideration the changes in dynamics in commodity prices, global shifts and inflation dynamics? The second question is related to what has happened overnight and things that have happened in the financial sector globally. How does financial stability play a part in our exchange rate policy considerations and also long-term inflation? If the Minister of State can also briefly share about the latest developments on financial stability, given overnight happenings, what impact do those have on inflation and Singapore's financial sector as well?”
“Thank you, Mr Chairman. I have two clarification questions. One to Minister, with regard to the gedung-gedung ilmu, the repository for information resource for the asatizahs. I think it is a wonderful initiative and programme to step up our asatizahs. Can Minister share a bit more about how we can extend it even further, beyond the subject matter and also beyond this year into next year? And related to that, what does it mean for the asatizahs' wages going forward? Does it help enhance their professionalism and does it also encourage more young people to go into that area as well, moving forward? My second question is with regard to what Minister mentioned just now, the example of professionals like Malay/Muslim pilots coming forward to help as a body. Can Minister share a bit more on the efforts to gather more professional groups to help the community? And like he mentioned, helping even SINDA, going forward as well. He shared individuals and those are mostly locals, but the other element is also scouring more for overseas Malay/Muslims who have done very well abroad, brought Singapore's brand name to greater heights and —”
“Second, perhaps we can think about how to further utilise the SkillsFuture Credit scheme between 2015 and 2020. Finally, we can look at ways to further enlarge emerging and growth sectors and increase the number of professionals in those sectors. Thank you. Malay Community's Contribution to the Nation”
“Can we scour more globally those that have ventured abroad and have contributed to Singapore's Gross national product versus Gross Domestic Product (GDP). Malay/Muslim Professionals (In Malay): [Please refer to Vernacular Speech.] Statistics from 2010 to 2020 show that our Malay Singaporeans are able to secure better jobs and give their families a better standard of life today. Just like how the onset of the COVID-19 pandemic had disrupted lives and livelihoods, our exit from the pandemic will similarly bring about new economic uncertainties and challenges. China has just reopened its economy to the world earlier this year. Increased geopolitical tensions have worsened the uncertain outlook. In the same way that the Government and self-help organisations such as the AMP had supported the Malay/Muslim community throughout the pandemic, in the form of skills upgrading and re-skilling opportunities, I am sure our Mala/Muslim professionals will not be left to navigate today’s uncertain waters alone. Can the Minister provide an update on the extent of the ongoing and upcoming global and domestic challenges, and how are we preparing the Malay/Muslim community for the possible opportunities? What are the plans to better support our Malay/Muslim professionals to ensure that they remain employable and can progress in their chosen careers? I have a few suggestions. First, as the world has re-opened, we should encourage our Malay/Muslim professionals and workers to be adaptable and experience new challenges. Perhaps the Ministry can look into the statistics of, and opportunities for, our Malay/Muslim professionals to go abroad for overseas secondments and training opportunities. Can we form partnerships with a few Temasek-linked companies to meet specific targets?”
“Thank you. Mr Chairman, in Malay, please. (In Malay): [Please refer to Vernacular Speech.] Our Malay/Muslim community, with the support of all Singaporeans, has become more successful. 8.5% of the Malay population have a monthly household income of $15,000 or more in 2020, compared to 2.6% in 2010, and I am confident that figure will continue to rise. We must therefore think of how we can contribute to the larger society. The Malay/Muslim community, like any other group in Singapore, does not exist in isolation. (In English): Mr Chairman, in English. I have some suggestions on how the Malay/Muslim community can expand its contributions to the nation as it does better for itself. First, we can enlarge the beneficiaries under the existing initiatives led by Malay/Muslim organisations like M3, by extending the mentorship programmes and uplifting workshops to other less-privileged Singaporeans, they could provide valuable inter-community touchpoints. Second, the sharing of cultural heritage should not be limited to Racial Harmony Day and major festivals. Post-COVID-19, I look forward to the resumption of mosque open houses and other events at which Singaporeans can gain an understanding of our diverse cultural fabric. We should also learn from the best practices of Muslim minority communities in other countries. Are there any takeaways from the International Conference on Communities of Success (ICCOS) held in September 2022? How can we encourage individuals, organisations and our religious institutions to step forward, and play their part in fostering social harmony and in building a better Singapore? How can we share stories of successful Singaporean Malay/Muslims abroad even more? They carry our Singapore flag in other countries in various fields.”
“Thank you, Mr Chairman. I would like to thank the team at MOT for answering all our questions, especially the 46 cuts from Members, which took a very efficient timeframe – one hour from 6.55 pm to 8.00 pm sharp. 1.00 pm The responses taken by Transport Minister Iswaran, Senior Minister of State Amy Khor and Senior Minister of State Chee Hong Tat and Senior Parliamentary Secretary Baey Yam Keng, which took just one-and-a-half hours. In line with what Senior Minister of State Chee Hong Tat mentioned, we have been efficient at the checkpoints. And so likewise MOT, has shown it is being efficient. At the same time, as the Senior Minister of State mentioned, I was surprised to hear that there are 300,000 trees being saved, equivalent to the 300,000 trees being saved by changes in the maritime sector as well. I would like to thank the MOT team at the backend as well for their continued work to ensure a resilient, sustainable and inclusive transport system and all the Members who have spoken within that one hour last night. And finally, I hope that we can continue to make sure that we maintain these sustainability efforts going forward as well. Mr Chairman, with that, I beg leave to withdraw my amendment. [(proc text) Amendment, by leave, withdrawn. (proc text)] [(proc text) The sum of $2,550,842,700 for Head W ordered to stand part of the Main Estimates. (proc text)] [(proc text) The sum of $10,165,701,000 for Head W ordered to stand part of the Development Estimates. (proc text)]”
“Mr Chairman, I would like to ask about two and a half questions. My first question is with regard to the Friendly Streets, which I laud, and I am happy to hear that Friendly Streets will be launched in Toa Payoh as well. Regarding Friendly Streets, when you co-create, does it involve the option of having covered linkways? The reason I ask is because some areas are beyond MRT stations. Will covered linkways be part of the suite of options that can be chosen by the committee? The second question is with regard to my cut on the Ministry's plans to roll out affordable electric motorcycles as part of the sustainability efforts in our land transport system. I would like to ask the Minister whether these affordable electric motorcycles — hopefully, we will move away from ICE motorcycles to electric motorcycles over the next decade or so, but it does have an impact on the demand which Member Pritam Singh also mentioned just now. What does it mean for Singapore and can we have an assessment of the possible early adoption incentives for electric motorcycles? For Singaporeans who want to get electric motorcycles, will there be incentives? My "half" question is with regard to electric buses. The Minister mentioned 400 new electric buses and electrification. I have met residents who mentioned that they really want to have electric buses because they are quieter, they are less noisy, especially for those living on the second, third floors of HDB blocks, facing bus stops. Can it be sped up? Currently, the target is half of the buses by 2030, possibly, all by 2030, if it is possible?”
“Are there plans even for Terminal 6 or Terminal 7? But that is probably way in the future. So, what is the Government's outlook for the sector over the next year and the resource constraints that are likely to remain unchanged? Aviation Sector Recovery – Sustainability”
“China's decision to reopen its borders to quarantine-free international travel in 2023 means we can expect the number of China-Singapore flights to multiply. This was swiftly followed by our decision to move from DORSCON Yellow to Green which removed some of the last travel restrictions of non-vaccinated travellers entering Singapore. I look forward to hearing more concrete plans and timelines for the construction of T5. As Prime Minister had announced at last year's National Day Rally, we were about to call a tender to build T5 before the pandemic but decided to pause our plans for two years due to COVID-19. Do we now have enough information and data to decide how we intend to proceed or are we going to adopt a wait-and-see stance for a while? Our aviation hub status is not just defined by size or quantity, but quality as well. The rapid post-COVID-19 recovery of our aviation sector has seen labour shortages, after workers that left the aviation sector for other sectors amidst the one- to two-year standstill. As we ramp up recruitment to ease capacity constraints, we must ensure that these workers are suitably familiarised and trained in airport operations. Some of these hires are newcomers to the industry and not workers who have taken a break during the COVID-19 period and are returning to familiar jobs. The coming years will be interesting times for the aviation sector. Besides the new variables I have already described, the sustainable air hub blueprint is slated to be unveiled this year. Airlines and other industry operators will have to contend with rocketing costs, including energy prices. So, can the Ministry provide an update on the recovery of our aviation hub and what new competition it is currently and likely to face in the future?”
“SMEs are also unlikely to have the knowledge to synchronise its cyber defences with existing protection such as the Singapore Maritime Cyber Security Operations Centre which provides early detection, monitoring and response to cyber attacks. How will the Government ensure that the maritime sector is well prepared in the area of cyber security?”
“The maritime industry is on the verge of a digital transformation and industry experts have voted Singapore, Oslo, Shanghai and Copenhagen to be the best prepared for the industry digitalisation. First, the digitalisation of services or operations can help reduce costs amid rising prices and interest rates. Various practical, digital solutions to reduce manual, lower-value work, are proposed in the Singapore Shipping Associations Maritime digitalisation playbook and the Industry Digital Plans or IDPs. IDPs are presently available for sub-sectors like bunkering, harbour craft and ship agency and I wonder if more sub-sectors will soon be covered. Second, digitalisation can facilitate better connectivity and integration within an ecosystem. The digitalPORT@SG Initiative and PSA's launch of more than 50 application programming interfaces, allows users to plug in directly to PSA systems. Is there a progress update on the harmonisation of APIs and data standards across different ports under digital oceans? And what are the Ministry's digitalisation plans for the maritime sector, considering businesses uptake of digitalisation solutions and schemes, thus far? The maritime sector is digitalisation will also increase the risk of exposure to cyber threats. Malicious actors may launch cyber attacks to steal valuable data for ransom, sabotage critical operations and infrastructure to damage Singapore's reputation, orr a concealed illicit activity that utilises our seaport. SMEs are especially vulnerable as they are likely to have weaker cyber defences and present higher chances of success for cyber attackers, putting the broader digital system at risk with increased connectivity.”
“Last week's COE tender results saw motorcycle premiums rose to $12,189, nearing the record high $13,189 set in November 2022. Demand continues to be high since last year's COS debate and measures implemented in March 2002 have only provided temporary respite. We must identify the specific drivers of this persistent and strong motorcycle demand to effectively address the soaring COE premiums. Do we have enough data to assess if the measures undertaken last year to raise the bid deposit for motorcycle COEs to $800, from $200 previously and validity of a secured COE will be halved to three months, had made an impact to encourage prudent bidding behaviour? Will there be a need to review bid deposits much higher, possibility to $2,000 and shorten the validity period? Is the Ministry and LTA looking at other market microstructure measures on the retail side to reduce demand? Considering the value of motorcycles to delivery services and to lower income Singaporeans who rely on motorcycles for their livelihoods, what are the Ministry's plans to ensure motorcycle COE supply remains adequate and affordable going forward? Parking and environmental sustainability are possibly some other reasons behind maintaining the zero-percent growth rate for motorcycles until January 2025. But these issues can be targeted in other ways and not just by constricting the number of motorcycles. As the COE and vehicle quota system are mainly to control traffic congestion, is there room for calibrated marginal increase in motorcycle quotas, whether by creation or reallocation from other categories, as motorcycles do not take up as much traffic space as cars? Motorcycle COEs”
“As such I would like to ask MOT in pursuing our environmental and financial sustainability targets and strategies, what will be the impact on the cost for commuters and Singaporeans at large? [(proc text) Question proposed. (proc text)] Electric Vehicle Charging Stations”
“The quest for sustainable air and sea transport is a global one given the international nature of such activities. As we explore low and zero-carbon fuels and other sustainability measures, we should look to collaborate with other countries in such endeavours. We have done well in ensuring our hub status in the air and the maritime sectors remain competitive globally but there are opportunities for us to gain more market share going forward and create good jobs at the same time. Bearing in mind that other countries are not sitting on their laurels and are always looking at chipping away our rankings. So, I would like to ask, what are the Government's sustainability targets across land, air and sea transportation and what are the Ministry's strategies to achieve these targets? Are we on track and what does it mean for the Ministry of Transport (MOT) Budget and resource needs beyond 2023? Pursuing these objectives will come at some cost. Our bus and rail services were already operating at a loss before the pandemic struck. We must strike a balance between ensuring that the funding gap does not unsustainably widen and managing the cost impact on commuters is key. In addition, we also need to balance spending on ensuring upgrades to our transport infrastructure and safety checks are there to meet our sustainability targets and possibly gradual changes may be needed to ensure the market microstructure of our pricing mechanisms to control vehicle population remains up-to-date with the sustainability changes. All these are not easy as we also face at the same time external shocks or factors affecting prices going forward.”
“Mdm Chairman, I beg to move, "That the total sum to be allocated for Head W of the Estimates be reduced by $100". Our convenient affordable and well-connected transport system is Singapore's lifeblood. It is important that we can sustain the system's long-term both from an environmental and financial standpoint. This comes down to three things. First, mindsets. Our ability to transform our public transport system depends on getting commuters on board. Against our aim to move away from private transport and towards public transport and active mobility, a recent survey shows that there are still mixed opinions on the symbolic value of car ownership. We need to further unpack and shape societal attitudes to realise our car-lite vision. Second, infrastructure. We have already taken steps to enhance the charging infrastructure for increased adoption of electric vehicles. These are important steps, but what are the Ministry's plans to roll out affordable EV motorcycles, for example, and the infrastructure needed for that as part of its sustainability efforts in our land transport plans? Is there an updated assessment of possible early adoption incentives for EV motorcycles. Our Land Transport Masterplan 2040 also envisions cycling to be a mode of commute by which individuals can complete peak period journeys between home and work within 45 minutes. Besides building new cycling paths between towns, is it time to separate bicycle lanes on our roads, especially in the Central Business District. I cycle around my constituency with my volunteers every weekend and I am aware that cyclists are sometimes made to feel unwelcome both by motorists on the roads and by pedestrians on roadside paths. Third, innovation.”
“Thank you, Mr Chairman. I would like to thank Minister for his answers to my cuts as well as to some of the suggestions I have raised during my Budget debate speech on retirement adequacy. I have one clarification for the Minister in regard to the CPF LIFE Escalation Plan. It is a bit specific. It is in regard to my concern that with the rising prices and inflation and, of course, my concern about the longer-term equilibrium inflation outlook that Singapore and countries globally are facing, how will seniors be affected? As of now, the CPF LIFE Escalating Plan rises by about 2% payouts annually. So, my suggestion in my Budget debate speech was whether it can be increased by another 50 basis points or possibly another 100 basis points, to take into consideration the rising prices for the current cohort and probably future cohorts, as an option beyond the 2% option that we have now; so as an additional option or a revision to the current 2%.”
“Rising prices threaten our retired seniors' ability to meet growing expenses, where they do not enjoy the benefit of rising wages now. I have raised a few questions on retirement adequacy in my Budget debate speech. First, the CPF minimum retirement sum should build in enough buffer for future unexpected events, such as dramatic price increases. Is it time to adjust the allocation ratios such that a greater percentage is allocated into the Special Account instead of the Ordinary and Medisave Accounts? Second, as market interest rates crossed 4% in 2023, do we intend to revise the interest rates on the respective CPF Accounts? The CPF LIFE Escalating Plan, which increases payouts by 2% annually, may need to be tweaked, given the changed longer-term inflation outlook. Finally, I am even more concerned for self-employed persons and non-working homemakers who do not have the minimum retirement sum. Can the Ministry provide an update on Singaporeans' retirement adequacy? How do we assist retiree households that have limited ability to accommodate expenditure shocks, outlived their savings or never accumulated much to begin with? Are such households becoming more prevalent?”
“Thank you, Mr Chairman. I just like to ask the Minister regarding SLS that Minister shared earlier. I laud the efforts by MOE to push towards digitalisation and EdTech. My question is in regard to accessing SLS and the Minister mentioned, accessing it from anywhere. My concern is, as I go around to meet my residents, I see some of the students at home with their grandparents, some are in broken families. My question is whether SLS will be data intensive? And when it is data intensive, what type of extra help can we put in place together with the other Ministries to make sure that some of these students can be helped, especially in terms of data costs and access to SLS, which is exceptional?”
“Thank you, Mr Chairman. I would like to ask the Ministry two or three clarification questions, if I can, Chairman. The first is in regard to the Green Skills Committee that the Minister mentioned earlier. How is it different from the Jobs-Skills Integrator? Is it working in tandem? I think what would be interesting would be to note what age groups will be impacted, whether they will benefit from this as well? Because I think Minister of State Alvin Tan mentioned that there are 850 internships for ITE students. So, the question is whether there will be ITE absorption into the manufacturing sector and also into the green sector. My second question is in regard to Minister Tan's answer. I think he elaborated about the green transition, the carbon transition, the energy transition. My question is going forward, beyond this Budget, will there be any additional spending on physical infrastructure needed for the energy transition as Singapore prepares to absorb some of this solar and other alternative energy inputs coming to Singapore going forward? What is our strategy on that front and our spending needs?”
“Mr Chairman, oil and gas prices have been on a rollercoaster for more than 10 years. The COVID-19 demand crash, followed by the supply collapse caused by the Ukrainian war, plunged the world into an energy crisis which threatened countries with blackouts and freezing winters. Given the inherent volatility in energy production, supply and trading today, it is reassuring to hear our long-term plans to accelerate solar deployment, work with regional partners to develop regional power grids, import low-carbon electricity by 2035 and explore new alternative sources of energy. It is encouraging that our National Hydrogen Strategy anticipates that hydrogen could supply up to half of power needs by 2050. However, the ordinary Singaporean and company would be equally concerned with the shorter-term affordability of electricity. An update on the status and timelines of the consultation to enhance the regulatory regime for electricity retailers would be helpful. How will Singapore safeguard our energy security and advance our energy transition despite our physical constraints and at the same time, balance the green transition? How are we preparing to deal with increased volatility in the global energy markets?”
“Our Manufacturing and Services sectors have traditionally been strong drivers of our economy. Manufacturing contributes 20% to 25% of annual Gross Domestic Product (GDP), while our diversified services sector represented 74.1% of jobs at end-2022. However, weakening growth around the world, protracted supply disruptions and synchronised interest rate hikes have slowed down our manufacturing output recently. Given the large and diverse range of services that fall under the umbrella of the Services sector, the Government should pay attention to equitable growth across different service industries in addition to the sector as a whole. How have our Manufacturing and Services sectors performed over the past year and what is the Government doing to develop the sector and create good jobs given rapid changes in product cycles and consumer behaviour? Our Advanced Manufacturing sector is well-known for exporting petrochemicals, pharmaceuticals and precision engineering products but changes to carbon transition will disrupt this. Singapore has also been a leader in financial services. But other developing economies are growing these capabilities and will vie for the pie at lower costs. What are the growth and/or emerging industries and how can our firms seize opportunities in these areas?”
“Sir, Singapore must plan to re-establish our position as a global business hub, in this post-COVID era. Last year, MTI announced our Singapore Economy 2030 vision across four key pillars of Services 2030, Trade 2030, Manufacturing 2030 and Enterprise 2030. Among other things, we aim to grow our export value from $805 billion to at least $1 trillion from 2020 to 2030 and double our offshore trade value from US$1 trillion to US$2 trillion over the same period. These are challenging targets considering the economic conditions and headwinds. Global unemployment is expected to rise by millions both this year and next, which may force countries to become more protectionist. Soaring interest rates discourage investments into R&D and training. Also not forgetting the phased carbon tax and measures that will be coming in force to secure Singapore's longer-term future. Can the Ministry provide an update on our progress towards the four key pillars of Singapore Economy 2030? Based on prevailing investment trends, can I see the Minister's crystal ball or trend forecast in terms of how will the structure of the Singapore economy evolve over the next decade? Does it create jobs, disrupt potential jobs and set the tone for our future generations?”
“I am glad that the SAF has resumed its full-scale overseas training exercises in 2022, after two years of COVID-19 disruptions. These overseas exercises are essential to provide our SAF troops with realistic and effective training, given our land constraints. But this "return-to-normal" also makes training safety a paramount concern, especially where existing National Service (NS) commanders may not have the necessary experience from the last two years of lower-tempo training. The large majority of our soldiers are full-time National Servicemen (NSFs) or Operationally-Ready NSmen (ORNS). We can all agree that in peacetime, we owe it to their parents and families to return them home after training – safe and sound. That is also my hope when my sons grow up and serve their NS in future. Can MINDEF provide an update on how the SAF upholds safety in training, even as it seeks to conduct realistic and effective training? Training safety is often seen to be at the expense of training realism and operational efficiency. Whether through its Inspector General's Office or the External Review Panels on SAF Safety, how has the SAF sought to innovate so that training safety is being pursued together with the aims of operational realism and effectiveness, and not simply enhancing safety measures at all costs? Are MINDEF and SAF regularly engaging with foreign counterparts regarding approaches to training safety, and what are some of the useful lessons we have learnt or can learn from other militaries? Safety Culture in SAF”
“Thank you, Mr Chairman. I am just glad that we are discussing today about cost savings when our neighbour just released their budget and they are talking about cutting their deficits and reducing the government debt. My question is to Senior Minister of State Chee, in response to his answer to my cards. In regard to the scrutiny of infrastructure spending, he answered that question in terms of public accounts. But, maybe, if Senior of Minister of State can share a bit more about our cost savings and our efforts from smaller projects, smaller to medium-term projects, and what additional sort of scrutiny and efforts to review those and how we can enhance on that front as well.”
“For example, we can explore adding new features to integrate any industry briefings, tender briefings or site show-rounds with the relevant tender opportunities; and to engage with the procurement agency regarding any tender clarifications. Besides ensuring that the public sector obtains the best value-for-money, public procurement can serve the role of supporting the growth of promising SMEs and startups who have innovative solutions. In line with our strategy of supply diversification for resilience, can MOF’s "value-for-money" metric accommodate this aim? And what else can MOF do to help support the growth of promising SMEs through Government procurement? Supporting SMEs through Procurement”
“Mr Chairman, our success in weathering the recent COVID-19 pandemic came down largely to our ability to utilise our deep financial reserves, which have been accumulated by the Government who has spent public monies responsibly and prudently. In refining our checks on public spending, we must be cautious not to add further unnecessary or disproportionate bureaucracy as this will erode whatever savings we achieve from public procurement. For example, while I agree there is still room to invest in automated systems and training to eliminate human error, adding another one to two levels of approving authorities may be an inefficient and even ineffective solution. Whether under Emergency Procurement or normal procurement procedures, how does Ministry of Finance (MOF) ensure that public spending is scrutinised adequately to enable cost savings and what efforts are being undertaken to ensure prudent spending at all levels across the Government? How are larger projects, for example, like infrastructure spending being monitored? Helping Businesses Reduce Cost Mr Chairman, the public sector is a major buyer of goods and services. Set up in June 2000, GeBIZ was ahead of its time and was followed by many other e-procurement systems in other countries aimed at enhancing transparent competition and lowering the barriers for small and medium enterprises (SMEs) to pitch for valuable Government contracts. We should not rest on our laurels. How can GeBIZ be further augmented to help businesses save time and money in their transactions with Government agencies?”
“Mr Chairman, Singapore’s success in responding to and managing unexpected emergency situations such as COVID-19 pandemic has highlighted the importance of having an adaptable Public Service. It includes working with the people and private sectors to tackle issues and Singaporeans’ needs. One key aspect of adaptability is the Public Service’s openness to innovation and to embrace technology. Technology has been deployed in the direct interactions between the Public Service and the citizens it serves. As Minister Josephine Teo shared at last year’s Committee of Supply, the deployment of islandwide 1,600 vending machines enabled the distribution of 30 million masks, 1.3 million TraceTogether tokens and 2.5 million ART kits with automatic ID verification. Within the Public Service internally, technologies such as ChatGPT are being explored to further enhance efficiency – so that our delivery of public services maximises the value of every tax dollar spent. With the proliferation of different tech solutions since the launch of Smart Nation in 2014, it is perhaps time for consolidation. The centralisation of different functions on a single platform would enhance the user experience of our citizens and make it easier for the Public Service to aggregate data and utilise AI to "push" integrated services from across different Government agencies to match an individual’s specific needs. How is the Public Service enhancing how we serve citizens better, including providing more personalised services centeon people’s needs through technology, especially seniors and how is the Public Service planning to better partner people and private sector to stay agile and resilient? Development of Public Officers”
“On that note, I support Budget 2023 which aims to address our longer-term future while providing transitory near-term support.”
“One, as mentioned above, we need to enhance the efforts to help the segment of non-working women homemakers or caregivers get top ups by their husbands especially at age 55 when the decision needs to be made. Second, the panel then had recommended that for providing flexibility for an additional CPF LIFE plan with escalating payouts. It is meant to provide an option for members who prefer CPF payouts that are initially lower but rise with time to help with increases in the cost of living. The additional CPF LIFE plan was to offer payouts that increase at a set percentage every year and the rate of increase of payouts was set at 2% for the escalating CPF LIFE plan. Hopefully all members in this Chamber know that there is an existing CPF LIFE plan that you can choose from. My concern is that the long-term inflation rate for Singapore may have risen to slightly above 2%. I would like to suggest the Government consider an additional option of a CPF LIFE plan with payouts either at 3% or 4% per annum for those who would prefer to do so or revising the existing percentage for the escalating plan, based on a rigorous assessment of our longer-term inflation rate given the shifts in the global macroeconomic and supply chain as well as rising healthcare and climate-related changes. So, possibly 2.5% to 3%. Mr Speaker, Sir, while fighting our immediate challenges, it is equally important for us to safeguard the long-term security of Singapore and Singaporeans. The ability of Singaporeans to take care of their own retirement will also prevent the buck from being passed to our children and future generations of Singaporeans. It is therefore central to our strategy in our future Budgets to renew ourselves as a country and to stay ahead of the world.”
“I am cognisant that the CPF Board already offers such an exercise when members approach 55 years old, but my suggestion is to go a bit further and provide such advice at earlier milestones or stages in one’s life. This idea is not unlike the Jobs-Skills Integrators that has been announced to optimise training and job placement. Instead of bridging the industry, training providers and employers, the "Retirement Planners" will bridge the gap between our lower to middle-income Singaporeans, financial advisors and the different government agencies administering the schemes that are applicable to them. Before I end, Mr Speaker, I would like to declare that I was a part of the CPF advisory panel which came up with the recommendations for changes in 2015 and 2016. Being on the panel opened my eyes on issues about CPF and the trade-offs to be made. The panel was guided by three key considerations and the need to achieve a reasonable balance between them: (i) adequacy, (ii) flexibility and (iii) simplicity. So, I am mindful that as I talk about adequacy today, there needs to be reasonable balance across many other issues. What I found was that the CPF system is fundamentally sound and has served Singaporeans well. The recommendations then and in the past has helped improve the CPF further by providing greater certainty and assurance to CPF members while providing the flexibility of more payout and withdrawal options in retirement to meet the varied needs of Singaporeans. But we must ensure that the CPF system continues to remain relevant for Singaporeans today and in the years to come given the changes in the economic dynamics globally and domestically. There are a few things I would like to suggest before I end.”
“This increase is targeted at seniors who are receiving the lowest payouts under the RSS. Based on the CPF Board’s press release, about 112,000 members are expected to benefit from June 2023. But what is that proportion of beneficiaries by percentage of the total number of seniors receiving CPF payouts? And what is the range of monthly payouts that eligible Singaporeans now receive under the RSS or CPF LIFE? With the rising prices today, is $350 per month enough to sustain a decent standard of living? By way of comparison, the Full Retirement Sum of $198,800 in 2023 is calculated based on the Household Expenditure Survey 2017/2018 and aims to provide a monthly payout of $1,510 to $1,620 for life. I appreciate that there are other benefit schemes that less well-to-do seniors can turn to in order to supplement their CPF payouts. For example, through the payments under the Silver Support Scheme, ComCare and others. Seniors can even monetise their housing through schemes such as the Lease Buyback Scheme and the Silver Housing Bonus, by reselling any excessively long remaining leases on their HDB flat to the Government or by right-sizing to a smaller flat type in retirement. But do we presently have the ability to collate the data showing the support that each senior is receiving across the various schemes and programmes administered by different Ministries and agencies? That will give us a fuller picture of our seniors’ retirement adequacy and the gaps we should look to plug. Finally, is there any room for dedicated "Retirement Planners" that can advise our lower- to middle-income Singaporeans on how they can plan and optimise their retirement income through the schemes they may be eligible for and improve their standard of living by doing so?”
“To the contrary, would the Government consider permitting earlier drawdown of retirement funds for specified purposes, such as defraying medical bills for pre-existing medical conditions or obtaining more comprehensive medical or disability insurance coverage? We obviously do not want Singaporeans to withdraw their retirement funds early only to blow it all at a casino, but the purposes which I have just described are in fact the costs and risks that we want to help our seniors manage. Ultimately, as the CPF system was created specifically to fulfil multiple goals, including housing, healthcare and education, it has built-in leakages from retirement savings. However, we must still ensure that these allowed drawdowns from CPF money do not compromise an individual’s ability to save enough for retirement. May I ask what is the data and the trend for Singaporeans who are unable to meet their Basic Retirement Sum (BRS) or Full Retirement Sum (FRS) at the relevant time? Where the BRS and FRS increases from cohort to cohort due to inflation, will we be expecting a sharp jump for the upcoming cohorts given the dramatic increase in prices and interest rates over the years? If so, do we need to cater special assistance for more people who may not be able to meet their BRS or FRS? Mr Speaker, next, on the payouts received during the actual retirement period, the critical aim is to ensure they are adequate to sustain the retired person with a decent quality of life. This is not an easy task given the many unpredictable variables when we look into the future. I welcome the Budget announcement that there will be an increase in the minimum CPF monthly payout from the Retirement Sum Scheme (RSS) from $250 to $350. However, I do have a few questions.”
“It was only around the mid-1990s that the Government rebalanced the CPF system to boost cash savings for retirement, by putting in place the Special, MediSave and Retirement Accounts, limiting the amount of savings that can be withdrawn for housing and implementing the Minimum Sum Scheme. So, if the concern today is more of retirement adequacy, is it time to look into adjusting the allocation ratios such that a greater percentage is allocated into the Special Account instead of the Ordinary and MediSave Accounts? One benefit of adjusting only the allocations of contributions rather than requiring more money to be contributed is that it will avoid increasing the financial burden on both employers and employees. In the Mercer CFA Institute Global Pension Index 2022, Singapore’s retirement income system was ranked ninth out of 44 systems that were studied, and the top in Asia based on the criteria of adequacy, sustainability and integrity. Among other suggestions in the report to improve the system further, it was proposed that Singapore should increase the age at which members can access their savings set aside for retirement as life expectancies rise. This is so that retirement funds are not drawn down too early. At this juncture, I am not in support of increasing the drawdown age purely on average life expectancy data. There are a significant number of seniors in my constituency of Toa Payoh East and they have shared with me their real fears that they may pass on any time even as others are living longer lives. Some of them have pre-existing medical conditions which only adds to their anxiety.”
“So, we besides encouraging more members to transfer their CPF savings above what they require for the Basic Retirement Sum to their spouses’ Special or Retirement Accounts, we should do more for this group. This will allow both husband and wife to take full advantage of the extra interest on lower balances and enjoy a higher effective interest rate overall. On that note, perhaps we can mimic the successful LumiHealth app and design an interactive mode for Singaporeans to learn more about the mechanics of CPF and retirement planning. Instead of walking and reading about healthy diets to chalk up milestone points and exchange for supermarket vouchers, Singaporeans can be incentivised to read or watch an informational video or even to practise using certain helpful tools like the CPF Planner for Retirement Income. Mr Speaker, another aspect of any retirement planning system is to study the various ways in which the retirement fund may be depleted prematurely for other purposes, otherwise known as leakages. Unlike other publicly managed pension schemes elsewhere, the CPF does not include social risk pooling and redistributive elements. Accordingly, the main challenge of our CPF policy is to ensure that not too much capital is withdrawn by the CPF member himself or herself during his or her working life and before retirement. One of the largest withdrawals that members make before retirement is for housing. In fact, when CPF was first started in 1955, it operated as a savings scheme for home ownership rather than a scheme for retirement income.”
“Fourth, and in my view most importantly, we must look to bridge the financial literacy gap and ensure that the majority of Singaporeans think about how they are going to grow their funds for retirement. It is important to get Singaporeans to "buy in" to planning for their own retirement adequacy. Not only do individuals know their own needs and circumstances best, it is also critical for our governance and social trust for Singaporeans to appreciate that the CPF is designed for their long-term benefit and not some plan by an overreaching Government to keep people out of their hard-earned money. While I am aware of the CPF’s efforts to raise awareness and literacy of retirement planning, such as through talks, webinars and roadshows, how effective has such outreach efforts been? And what are the metrics that are applied to gauge the effectiveness of these educational efforts? From speaking to residents at my Toa Payoh East Financial Literacy Programme, a grassroots initiative led by volunteers and me, I have also found that some of our fellow Singaporeans are not aware of the various options and avenues that are available for them to plan and grow their retirement nest egg. For example, some residents were not aware of the Supplementary Retirement Scheme (SRS) which complements the CPF by affording Singaporeans the opportunity to make tax-free investments for the purpose of retirement. It is also important to ensure top-ups for non-working women homemakers in our community who may lack enough CPF for their old age. I would like to suggest that we incentivise to help the retirement needs of this segment in our population. It needs to be decided at key turning points like at 55 years old.”
“One would expect this group to be capable of going out and investing in their own endowment insurance or other instruments for the longer term. Is it, therefore, necessary to mandate that such workers contribute a greater proportion of their wages into CPF, considering the opportunity cost to these workers? I am also mindful that this raising of the salary ceiling is expected to add financial pressures on smaller firms who will need to pay increased employer contributions. Following the Deputy Prime Minister's explanation that the monthly salary ceiling has to go up in tandem with inflation, netizens have also queried why the interest rates on CPF funds have not been increased. The aggressive rate hikes by the US Federal Reserve and other global central banks have led interest rates in the open Singapore market to cross the 4% mark earlier this year, up from an almost 0% interest rate from the large part of 2009 to 2021. This has made the 2.5% interest rate for the CPF Ordinary Account and the 4% interest rate for the Special and Medisave Accounts relatively unattractive compared to the other investment options like fixed deposits. Is there any intention to revise the applicable interest rates on the Ordinary, Special and MediSave Accounts in the upcoming quarterly reviews? I would love to hear Deputy Prime Minister’s reply to this. When I raised my Adjournment Motion on "Helping Singaporeans Navigate a High-Interest Rate Environment" in October 2022, I noted that HDB and CPF confirmed that rates will remain unchanged until the end of 2022 but did not receive any more advanced guidance on any potential rate changes over the medium term.”
“Is there scope to also align the CPF contribution rates of these adult educators, such that they will benefit from additional contributions from the education institutions? Second, while I can see the rationale for increasing the CPF contribution rates for older workers between 55 and 70 years of age by 1% to 1.5%, I am concerned whether this would be an added disincentive for businesses and employers to hire older workers. The announced CPF Transition Offset will help, but technically, there will still be a higher cost to employ someone who is between 55 and 70 years old. The chilling effect would be a bad thing because active employment allows seniors to stay physically and mentally active, and to be engaged with a community. That is, in fact, part of our strategy of preventive care, as Deputy Prime Minister Wong had explained in his Budget Statement. My view is that we must pair these higher CPF contribution rates for older workers, with other incentives or measures, to encourage the employment of older workers, which I think the Government has done so. But besides general training and reskilling efforts, what are we doing on that front beyond what we have already done? Can the Public Service, for example, take the lead in identifying roles that are suitable for older workers and perhaps "ring-fence" these opportunities for older candidates? Third, the progressive increase in the CPF monthly salary ceiling, from $6,000 to $8,000 over the next four years, has attracted some debate on online forums and earlier just now. This appears to target workers earning more than $6,000 monthly. Does the Government consider this group to be at-risk of retirement adequacy as well?”
“But, one particular question that I have is whether such additional support will be available to platform workers aged 30 and above, who opt in to the full CPF contribution regime, or is it limited to platform workers below 30, who are mandated to contribute at the full employee contribution rate? In the same vein, are there other groups which we are looking to bring under the CPF umbrella, or to enhance their participation in the CPF contribution regime? For example, self-employed persons (SEPs) are presently only required to contribute a percentage of their net trade income to their MediSave Account, but not to their Special or Retirement Account. How many SEPs voluntarily top up their Ordinary, Special and Retirement Accounts? I note that eight in 10 active CPF members turning 55 in 2027, are expected to have enough savings to receive at least the CPF Basic Retirement Sum (BRS) payout. But, has the Government done any studies on the proportion of SEPs who are able to meet the same amount, whether in voluntary CPF savings or their own private savings? This is important as it would mean future Budgets may need to address this. As an advisor to the National Trades Union Congress (NTUC)-affiliated Education Services Union, or ESU, one of the first groups of SEPs that I think of, are the freelance adult educators who work across the early childhood, student care, universities, private education institutions and international schools. My understanding is that some of these adult educators work with their education institutions on the basis of longer-term contracts. There is, thus, very little difference between these adult educators and platform workers.”
“I will address our retirement planning system in three parts: first, the accumulation of retirement funds; second, the leakages of retirement funds; and third, retirement payouts – in that order. Mr Speaker, Sir, the accumulation of retirement funds through CPF is a tripartite effort between the worker, the employer and the Government. The worker is made to save up to 20% of his wages. The employer contributes an additional amount of 7.5% to 17% of the worker's wages, which is not subject to personal income tax. Finally, the Government guarantees higher-than-market interest rates on the CPF savings, which essentially, gives the worker a risk-free return on investment. Given the investment environment where stocks and bonds have been underperforming, I would like to take this opportunity to ask what is the net cost to the Government in delivering the higher-than-market interest rates on CPF funds in the past few years? But first, I am heartened by the steps taken by the Government to bring more workers under the CPF umbrella more fully. The Government's decision to align the CPF contribution rates of platform workers with those of regular employees, following the recommendations of the Advisory Committee on platform workers, would go some way to increase the retirement security for our delivery riders, private hire vehicle (PHV) drivers and taxi drivers. However, this enforced long-term saving will naturally reduce the take-home pay of these platform workers, and I look forward to hearing the Minister for Manpower's plans to provide the CPF Transition Support to lower-income platform workers, who see an increase in their CPF contribution rates during the Committee of Supply.”
“Mr Speaker, Sir, this Budget 2023 is presented in the backdrop of great economic uncertainty. As the world is working to recover from the COVID-19 slump, the war in Ukraine, global supply chain disruptions and soaring global interest rates are just some unforeseen factors which has caused prices to go up in the past year. The main focus of my speech today is very specific. It is on retirement adequacy for Singaporeans – how do we ensure that our people have enough to sustain their way of life after they stop working or as they grow older. To me, it is a slow boil concern or a clear long-term concern which needs to be raised now. I decided to focus on retirement adequacy because Budget 2023 has brought the following three issues to the fore. First, our fast-ageing population, where one in four Singaporeans will be 65 and above by 2030. Second, as the Deputy Prime Minister has explained – while the Government will do its part to help, it is not sustainable to rely entirely on the Government to take care of our retirees. A significant part of the burden of care will fall on families and future generations, if we fail to plan adequately for our own retirement. Third, the recent episodes of global uncertainty and inflation has shown us that unforeseen economic shocks can cause our money to be worth less in real terms. So, delaying in taking action on retirement adequacy has an impact on future Budgets, and that is why I am raising it now. The main feature of Singapore's retirement planning system is the Central Provident fund (CPF), which Singaporeans are well-acquainted with and needs no introduction. There are other schemes and Government programmes aimed at helping retirees, but these are designed around and in addition to the CPF system.”
“Thank you, Mr Speaker. I would like to thank Senior Parliamentary Secretary for his answer. I have just one supplementary question. Some of the participants in the LPA value chain have given feedback on the concern that LPA Certificate Issuers are merely rubber-stamping. While I do not think so, there is a possibility that that may happen in the future, especially in relation to LPA applications with the Government's push towards more LPAs and enhancement of knowledge of LPAs. So, can the Ministry consider looking into publishing more detailed guidance on the duties and responsibilities of Certificate Issuers in the making of LPAs? I think the LPA certificate issuers play a major role in terms of safeguards to ensure that LPAs are effective and not being used as a tools of court litigation going forward as well.”