Siew Kum Hong
Singapore
“Sir, I have one supplementary question for the Senior Minister of State. Sir, Thailand, as the ASEAN chair, issued a statement criticising Myanmar for its trial of Daw Aung San Suu Kyi and Myanmar's response was that Thailand was meddling in Myanmar's internal affairs.”
“Mr Speaker, Sir, I have two supplementary questions. My first question is to ask the Minister what is the expected date of announcement of the final decision by MAS in its investigations given that now the preliminary findings have been made and there is a due process going on.”
“My belief is that it will also be the case with these present amendments, in which case, why bother? The Senior Minister of State has pointed out that the prohibition on party political films has an offline aspect as well, and that is true.”
“Sir, I have a similar supplementary question with regard to work permit holders. I would like to ask the Acting Minister how many new work permits have been issued in the past few months, given that there are so many stories of foreign workers already here on work permit not having work or not having enough work.”
“Secondly, there should be increased transparency in how the Act has been used. Instead of waiting until the Act is up for extension to give figures on the use of the Act, it would be better if the Ministry could proactively disclose figures on the Act’s operation on an annual basis.”
“A poll by the Sunday Times last July found that 81% of 230 respondents thought that maids should get a mandatory day-off. That being the case, I hope that the Acting Minister would reconsider the existing position and introduce a mandatory day-off, at least once a month, which I feel should not be contentious for foreign domestic workers.…”
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“A few months ago, I visited the Ang Mo Kio Community Care Network, or CCN. This is a local help network comprising grassroots leaders and VWOs. I was introduced to the case of Mr James Soh. He was suffering from a disease that made his skin itch and peel. He lived alone in a dirty one-room flat, surviving on $300 a month from his brother. He was ashamed of his condition, and only left his home when he had to eat. A member from the CCN, Mr Bhajan Singh, chanced upon him at a hawker centre. He and other members of the CCN managed to coax Mr Soh into allowing them to clean his flat and changed his mattress, which was full of bedbugs. Another volunteer visited him regularly to coach him in personal hygiene. With their help, Mr Soh has managed to integrate back into the society. Recently, MPs like Mdm Ho Geok Choo have called for the state to play a bigger role. The intentions are good. But can the Government do what the many-helping-hands did for Mr Soh? Even if we have enough civil servants to reach out to people like Mr Soh, we would lose a great deal in the process. The passion of people like Mr Singh, the human touch they bring, and their capacity to befriend and help those truly in need - we would lose all these. So, instead of replacing the many-helping-hands, my Ministry's plan is to support them. We will do so by making the system more client-centric and increasing coordination between the helping hands. During the Budget debate, Mr Michael Palmer has asked whether it is difficult for the needy to seek help. Let me emphasise that the needy do not need to know the specifics of each assistance programme. They only need to approach their CDCs, grassroots organisation, CCCs or the Family Service Centres.”
“The Minister of State for Community Development, Youth and Sports (Mrs Yu-Foo Yee Shoon): Madam, to be a first-world nation, we need to build up not only our economic and intellectual capital, but also our social capital. Today, I will focus on the two pillars of our social capital - the community and the family. We must ensure that the community is fully engaged in helping the less fortunate in our society. We must also ensure that family ties remain strong. These are the cornerstones of a resilient society. Let me start with ComCare. We have put in place a Government social assistance system that is effective and flexible. Our Community Development Councils, or CDCs, now process almost 90% of social assistance applications within six weeks. In contrast, prior to the launch of the ComCare in 2005, it was only about 40%. This is a significant improvement. At the same time, the CDCs have also ensured assistance is given only to the genuinely needy. This strengthens the spirit of self-reliance in our people. Madam, next, ComCare has focused on increasing flexibility in the delivery of social assistance. This is because we recognise that for some, even six weeks may be too long a wait. Hence, we set up the CCC ComCare Fund so that the grassroots can provide help more flexibly. We should thank PA, CDC officers and CCC volunteers for doing this difficult and important job so well. What is the next step? As Members are aware, ComCare is short for community care. Going forward, we will increase community engagement in helping the less fortunate: first, we will support the many helping hands; second, we will grow social enterprises; and finally, we will catalyse the growth of a ComCare Volunteer Movement. Why are the many-helping-hands important?”
“Madam, the Government's long- standing policy is that an intact family unit is the ideal environment for a child to be raised. The Government, therefore, does not encourage mothers to remain unwed. This is why certain maternity benefits, such as Government-paid maternity leave, are withheld from unwed mothers. Madam, I agree that intact families are ideal, but we live in an imperfect world. The unwed mother is very often a victim of circumstance. She does not choose to be unmarried. Chances are that marriage is not an option. The father may be married, he may be gone, he may simply not want to marry her. In these cases, the choice is not between being a single unwed mother and being a married mother. The choice, a very stark one, is really between being a single unwed mother and having an abortion. And I doubt if the issue of maternity benefits, like Government-paid maternity leave, cross the mind of women grappling with whether to be an unwed mother. 5.30 pm A 2004 Cornell study concluded that children of single parents can do as well as children of dual parents, if the single parent is able to provide a sufficiently supportive environment. Withholding support from an unwed mother could end up disadvantaging the child. Should we penalise the child for the sins, if there are indeed sins, of the mother? I would, therefore, ask the Ministry to refine its policy. If the aim is to avoid encouraging women to choose to be unwed mothers, then, perhaps, maternity benefits, like Government-paid maternity leave that is for the ninth to twelfth week, can be provided for the first child, but not subsequent ones. This would not penalise single mothers by circumstance while still sending the message that we discourage unwed mothers by choice.”
“But for education to remain the great leveller that it has been, we need a strong and healthy teaching profession. We need to resolve these problems with EPMS so that we will have one.”
“" Finally, retired teacher, Ho Kong Loon, who had won an MOE Caring Teacher Award in 2000, wrote in the Today newspaper last October, that EPMS currently marginalises outstanding classroom teaching and that many good classroom teachers get poor EPMS gradings. Sir, I think the amount of unhappiness with and criticisms of EPMS shows that there is a problem, and we need to remember that a lot of the criticisms have come from ex-teachers who are far more likely to give honest feedback than serving teachers. So I would like to ask how does the Ministry explain the discrepancy between its official stand on EPMS and teachers' perception of it. And in the light of these criticisms, does the Ministry have objective evidence that EPMS does work? Also, given the view that more projects equal a better EPMS ranking, teachers are compelled to pile on extra duties, that means, long hours in school. A teacher in the morning session will have classes from 7.30 am until 12.30 pm or 1.00 pm. This is followed by CCAs, projects, workshops, meetings and other commitments that can last till 5.00 pm or later. So when does the teacher do things, like marking and lesson preparation? At night? Sir, that is not tenable. I would therefore also like to ask the Minister what institutionalised measures and safeguards are in place to ensure that teachers are not overtaxed so that they are able to devote sufficient time to their students and through lessons and teaching while not burning out. If there are no such measures and safeguards, will the Ministry consider doing so? Sir, Minister Tharman emphasised last week in the Budget debate that education is the starting point in ensuring equality of opportunity in Singapore.”
“Mr Chairman, Sir, the enhanced performance management system, or EPMS, is MOE's method for assessing teacher's performance. It has been a subject of repeated criticism by present and former teachers and blamed for many teacher resignations. But MOE has consistently endorsed it. These are some of the criticisms. Firstly, some see it as simply an administrative chore to get out of the way as quickly as possible. Secondly, there is no transparency in the rankings as teachers are not told what they have been ranked, and teachers have to guesstimate their rankings based on their performance bonuses, if any. Thirdly, and perhaps most crucially, it does not adequately recognise good classroom teachers. In fact, teachers believe that the way to a good EPMS evaluation is to simply cite a long list of projects and then play them up as much as possible. Actual merit does not seem particularly relevant. Sir, the teachers themselves said it better than I can. From a friend, "How I have seen it used is, either not at all, people ignore it, see it as a nuisance thing to be filled up and done with, or by superiors as a way of forcing more work out of people. So, what did you do this past half a year? If you do not tell me the next five minutes, you are going to get a "C" grade." From Wong Siong Yan, in a letter to the Today newspaper last March, "Supervisors usually rely on work review discussions, during which teachers are encouraged to showcase what they have. Those who can produce photographs, video clips and reflective journals often steal the show. Good but modest teachers who do not blow their own trumpets get sidelined.”
“Mr Chairman, I would like to thank the Second Minister for the thorough responses to my questions. However, I am not sure that he addressed the specific issue of employers favouring foreign talent over Singaporean males due to NS liability. So I would like to clarify if the Ministry is aware of this perceived bias, whether it has investigated its existence and what measures are in place to address any such bias.”
“Much obliged, Mr Chairman. Mr Chairman, Sir, all NSmen face reservist liability. I understand that PES-C NSmen, including clerks, are subject to NS call-ups as well. I was told of a case where a company was deciding whether to locate an investment in Singapore. But they could go ahead in Singapore only if a PES-C NSmen could get a deferment from his ICT. He was crucial to the project, if it was to happen in Singapore. But his ICT clashed with an important deadline. Despite repeated requests, he was not granted a deferment. He went for his ICT and his company located the project in China. Sir, I can understand the rationale if this NSmen was a key appointment holder and essential to the ICT. But he was not. I would like to ask the Ministry what is the value of calling PES-C NSmen for reservist training and whether more flexibility can be introduced in considering deferment for NSmen who are not key appointment holders and, especially, if they are clerks? Is there sufficient consideration given to the actual benefit derived from calling up an NSmen compared to the potential opportunity cost to his employer and his career? Sir, there is a wider dimension to this. Many NSmen seem to believe that NS liability has adversely affected their career prospects. There is also some anecdotal evidence about employers discriminating against Singaporean males to do their NS liability and in favour of foreign talent. I hope that the Ministry will also state its position on this issue and explain what measures are in place to address such discrimination.”
“Yes, Madam. I would like to clarify with the Parliamentary Secretary whether he agrees that if pet ownership is permitted, subject to sterilisation and the need to keep the cats within the flats, then many problems attributed to stray cats will be resolved.”
“Madam, the Parliamentary Secretary has shared with us some of the policies on pet ownership. I would like to ask the Parliamentary Secretary whether the Ministry would review the existing ban on cats in HDB flats. I understand that, very often, HDB dwellers who do keep cats will let them roam around so that they can deny owning the cats when confronted. They also do not bother to sterilise the cats. This need for possible deniability leads them to be irresponsible pet owners. If cat ownership is permitted ---”
“After all, the Town Councils would know the best ways in which to apply these funds and what are the most pressing areas of need for barrier-free access. This would truly further our vision of an inclusive society. HDB”
“Madam, the Government recently announced that it will make available $32 million over five years to implement barrier-free access in housing estates. These funds will be disbursed through the Community Improvement Projects Committee (CIPC). Based on media reports, Town Councils will be required to co-pay 5% of the cost of projects using these funds. The use of the CIPC, coupled with the requirement for co-payment by Town Councils, effectively excludes the Opposition wards of Hougang and Potong Pasir from access to these funds. CIPC funds are channelled through the Citizens' Consultative Committees, but the advisers to the CCCs in those two wards are from the PAP and are not the elected MPs, which is the case in the PAP Government wards. So I think that is very unlikely that the CCCs and Town Councils in Hougang and Potong Pasir will be able to come to an agreement on how to use such funds. This penalises the disabled and elderly folks in those estates. If we are serious about making society more friendly to the disabled and the elderly, then this method of disbursing the funds is unhelpful and unfair. In fact, it directly contradicts the vision of an inclusive society for Singapore, knowing that the use of the CIPC will almost inevitably exclude Hougang and Potong Pasir from access to these funds. Madam, these funds are for barrier-free access. In an ageing society, that is increasingly a must-have and not a good-to-have, like upgrading. They should not be subject to political considerations such as whether the ward in question is an Opposition ward. I would suggest that a better way to distribute these funds is to make direct grants to the Town Councils for their use.”
“Sir, the Senior Minister of State has pointed out that the NIAC had endorsed the light-touch approach under the Class Licence. He has also mentioned that the Sedition Act supplements the regulations, and the Penal Code provides an alternative mechanism for enforcement. What this means is that a single action can technically contravene three different laws with very serious consequences for each contravention. There is overlapping liability under multiple statutes for one single action. That creates uncertainty and a potential chilling effect on Internet speech. I would like to ask the Senior Minister of State whether this is healthy and leaves too much discretion to the authorities when taking enforcement action.”
“Sir, the Government can and will use traditional statutes like the Sedition Act to regulate the Internet and the Penal Code is being updated for the digital age. So I think that the time is right to review the Class Licence 10 years after it was issued, so as to limit the prohibitions to match its existing practice of enforcing the Class Licence against sexual contents. This will avoid ---”
“Mr Chairman, the Government has repeatedly stated that it regulates the Internet with a light touch. That is commendable and I think also a pragmatic recognition of the difficulties in regulating the online world. But what is a light touch? Can regulation truly be light touch if behind it is the threat of a criminal offence, punishable by a fine not exceeding $200,000, or jail of up to three years or both, with additional fines of $100,000 per day for committing offences? Sir, that is exactly what our light touch regulation is. The Media Development Authority regulates the Internet through the Class Licence and a breach of the Class Licence will potentially attract the penalties that I have described. Sir, the MDA's website describes the Class Licence as setting minimum standards for the responsible use of the Internet. I think it goes much further than that. Read in conjunction with the Internet Code of Practice, the Class Licence prohibits, and I quote, "material that is objectionable on the grounds of public interest, public morality, public order, public security, national harmony or is otherwise prohibited by applicable Singapore laws" . Sir, I would submit that this language is unnecessarily broad and that the Class Licence, in its present form, is no longer relevant or appropriate. When the Government wanted to take action against certain racist bloggers, it chose to charge them under the Sedition Act. That decision surprised many, including lawyers. I myself wondered why the racist bloggers were not charged for breaching the Class Licence. After all, they had posted objectionable online content that would have breached the Class Licence which was specifically created to regulate online content.”
“That seems strange when we have previously achieved much lower targets. Secondly, the Ministry of Home Affairs has a KPI for the number of fatal and serious injury road accidents per 10,000 motor vehicles. For FY 2004, 2005 and 2006, the actual percentage ranged from 3.4% to 3.9%. Yet, the FY 2007 target is 6.5%. Finally, the Ministry of Manpower has a KPI based on the total upgrading supported by headcount. In FY 2006, this was 73,000, but the FY 2007 target is 64,000. Of course, if the KPIs are not used for performance evaluation purposes, then I hope that the Minister would clarify the purpose of these KPIs.”
“Mr Chairman, I noted that the expenditure estimates contain various key performance indicators (KPIs) for each Ministry. This, being the first time that I actually read the expenditure estimates, was completely new to me. These KPIs appear to be derived from the Mission Statement of each Ministry, in an attempt to quantify the essentially qualitative nature of Government. Sir, in the private sector, KPIs are used for performance evaluation purposes. This is self-evident from the term itself. A target is set for the individual or organisation and then that individual or organisation's achievement against the target is assessed. Properly done, this is a fair and transparent method of performance evaluation. It does seem that the KPIs for the Ministries are intended to serve such a purpose. If so, I think it will be helpful if the Minister could explain the consequences of a Ministry's failure to achieve its KPIs. Of course, we must remember that Singapore, as a small country, is subject to external pressures. So, sometimes, a failure to achieve a KPI may not be attributable to poor performance. That will be so, especially for KPIs related to the economy, such as KPIs tied to economic growth. But, surely, external circumstances cannot possibly explain all failures to achieve KPIs. I would also like to ask the Minister to clarify how these KPIs are set. I ask this because some KPIs set for financial year 2007 are actually lower than the achievements from preceding years which does seem odd to me. I would give three examples to the House. Firstly, MCYS has a KPI based on the recidivism rate of Mandatory Counselling Programme clients. In FY 2004 and 2005, the rates were 2.7% and 1% respectively. In FY 2006, it rose to 5%. For FY 2007, the target remains at 5%.”
“Sir, our Government's policy is that Ministers and top civil servants should be paid fair and competitive salaries. I support this. Ministerial salaries and Administrative Service salaries are directly benchmarked to top private sector salaries as declared to the IRAS. The Staff Grade 1 salary is pegged at two-thirds of the income of the 24th highest earner among the two eight earners from six professions. The Superscale G salary is benchmarked using a similar formula. I also understand that Legal Service salaries are pegged, albeit not directly, to the private sector. Sir, the private sector salaries used as benchmarks will already include annual bonuses, such as performance bonuses, since these bonuses are assessable income. I would like to ask whether these officers, in particular, Ministers and Administrative Officers, are entitled to additional bonuses, including performance bonuses and, if so, how they are assessed and fixed. I would also like to ask whether the award of such bonuses is consistent with the fact that the salaries used as benchmarks already include performance bonuses.”
“Sir, the Minister of State mentioned that the relevant agencies do not keep statistics on repeat complainants. My understanding is that, very often, it is the few people who just absolutely hate cats for some reason who keep complaining. I would tie this in with the Minister of State's reply to my third supplementary question about how AVA works with the Town Councils and how the Town Councils react in response to complaints. That being the case, I would like to ask the Minister of State what kind of programmes does the AVA have to ensure that Town Councils do not adopt only an immediate response and instead have a long-term holistic approach.”
“Sir, three supplementary questions. First, I would like to ask the Minister of State whether the HDB, Town Councils and AVA keep records on whether the complainants make repeat complaints. My second question is with reference to the Minister of State's statement that stray cats breed prolifically, and she has also mentioned culling in her answer. Is the Minister of State aware that there is empirical evidence that sterilisation in the form of the trap, neuter and release strategy is effective in controlling the stray cat population? The example being the island of Guernsey which has managed to control its stray cat population so effectively that it had to import stray cats from other areas so as to allow cat lovers to adopt them. Sir, my third supplementary question is with respect to the balanced approach that the Minister of State has described. Does the AVA advocate such a balanced approach to the Town Councils which I understand to be primarily responsible for controlling the stray cat problem? Because my understanding is that some Town Councils adopt a purely culling-based approach.”
“Sir, I am glad to hear that this practice of publishing different prices for treatment has reduced the cost of healthcare for the public. I would like to ask the Minister what are the other areas in which this can be done so as to further reduce the cost faced by the public.”
“Sir, I wish to ask the House to reflect on whether the WIS will inadvertently encourage more and more older people to live on their own. Let me explain. When an older person lives with the adult child, he or she is expected to help out in caring for the grandchildren. In middle class and upper class families, there may be a foreign maid to help the grandparents. However, in lower income families, the extra pair of hands is absent. On top of grandparenting duties, the elderly couple may have health problems or mental stress due to inability to discipline the young kids, conflict due to differences in views of how to supervise the children, how to control them, what food to cook for them and even language barriers often arise. In some households, the adult children may not even give any pocket money to the older people and assume that, since they co-reside, they should be contributing by baby-sitting. I base my views on social research conducted on grandparents in Singapore. Conflicts may propel the elderly couple to find peace in a rental flat, away from the friction of inter-generational ties. On the other hand, the sandwich generation may have work problems, financial squeeze in meeting the needs of the older and younger generations, exacerbated by GST hikes, and even issues regarding marital relationship. So, why do I say that WIS may, inadvertently, push more elderly to strike out on a path of independent living? If they manage to get some work, for example, at a hawker stall, or a cleaning job in a firm, they can benefit from WIS. This may be a more attractive option to living without any respect or gratitude from family members. Of course, this is if health permits and a kind employer is willing to give the lower-wage job to an older person.”
“It shows, in the introduction of the WIS, a drastic break with the conservative past and a brave step into the exciting future. It is a baby step, but it is in the right direction in how it addresses the problems of the low-income head on. This can only bode well for Singaporeans. Sir, with that, I support the Budget. 5.57 pm Assoc. Prof. Kalyani K Mehta (Nominated Member): Mr Deputy Speaker, Sir, I rise in support of the Budget Statement 2007/2008, in general, with suggestions for improvement. My focus today is on the Workfare Income Supplement scheme, re-examining the meaning of work. Most policy makers and economists tend to treat the words "work" and "job" or "employment" as synonymous. Therefore, when the statistics for labour force participation (LFP) are calculated, work that is carried out within a home is ignored. However, in some countries, the contributions of family-based workers are factored into the economic calculation. I am heartened to see that the Second Minister for Finance, Mr Tharman Shanmugaratnam, has included a category of informal workers in the Workfare Income Supplement scheme. There are many ad hoc workers who do odd jobs and they are usually not receiving CPF contributions from the employers. In Budget 2007, these are to be treated as the self-employed and would benefit from WIS in the same way. The WIS is meant to help low-wage workers, targeting particularly older workers, and bring them under the CPF umbrella, and, to quote, "This will strengthen social inclusion in Singapore." At this point, I wish to add the Prime Minister's Chinese New Year message, that the family unit should be kept strong and healthy. PM Lee also expressed his concern, in the same message, of a growing number of elderly Singaporeans living alone.”
“This is good. But it is not likely to be enough. While there are many existing assistance schemes, I had hoped to see something more. Given that this problem has persisted in Singapore despite the growing economy and despite the existing help schemes, the logical inference must be that the status quo is not enough. Sir, at this point, I will just recall the incident last year where a gentleman committed suicide at a MRT station by jumping before a train. I do not think anyone in this House can imagine the kind of pressure and the sort of desperation that will drive a man to do this. He was unemployed, he had no money, I believe he had $16 in his wallet. He was saddled with a mountain of debt and that was his way out. I think, as a society, we have failed if we cannot help these people, if we cannot stop them in time before they take such desperate measures. I was therefore disappointed to see nothing in the Budget for this group. We can do more. We need to do more. Conclusion Sir, this year's Budget represents this Government's vision of how Singapore can continue to ride the globalisation wave to ever greater prosperity, while helping those who are unable to benefit from this growth. Even as many have praised the Budget, others have found fault with it. Individuals have criticised the GST hike and the lack of a personal income tax cut. Employers have complained about increased costs from the increase in the CPF contribution rate. I do not think that all of the criticisms are unjustified. But it is in the nature of people to focus not on what they have, but what they do not have. There is no perfect Budget that will please everyone, and I believe that this Government is trying its level best to help those Singaporeans who need help the most.”
“Housewives, homemakers and househusbands, and the unemployed Sir, finally, I will touch on a couple of things that this year’s Budget did not. Firstly, and here I echo several other Members here, it did not have anything for housewives, homemakers and househusbands. They do not work, so obviously they will not qualify for the WIS and will not benefit from the CPF rate increase. This could send the message that society does not value what they do. Sir, I do not think that that is right. Even though more and more women are joining the workforce, housewives and homemakers continue to play an important role in today’s society. Househusbands play an equally important role. We should not ignore their contributions simply because they are difficult to quantify in financial terms. I would therefore ask the Government to consider some form of tax credit or grant for unemployed parents, especially those without maids, whereby they will receive cash, or CPF, or a combination of both. Eligibility could be tied to the household income level and the annual value of the home. This will alleviate the burden on the sole breadwinner, while recognising the invaluable contributions made by stay-at-home spouses. Secondly, the Budget had a lot for the low-income, but it had nothing for the “no-income”. Sir, there was nothing in the Budget Statement on the unemployed, not even those who, for whatever reasons, are simply unable, and not unwilling, to obtain employment. With rising costs, the unemployed require more assistance than ever. The impending GST hike exacerbates this, even with the offset package that has been announced. This House was recently told that the Public Assistance Scheme is being reviewed, and that an increase in the amounts payable is likely.”
“Sir, I also think that there is room for expanding the scope of the WIS, to cover more people. The Minister for Manpower has stated that the WIS is intended to help the bottom 15% of the population, and that helping more people will reduce the quantum of benefits available to each person. But let us put the figures in perspective. The WIS will cost the Government $400 million per year. This is half of the $800 million per year in lost revenues from the cut in corporate income tax; less than half of the $1 billion per year spent on HDB upgrading; a quarter of the $1.5 billion per year expected from the GST increase; and less than 4% of the $10.6 billion allocated to Mindef this year. So there is room for the WIS to expand to more workers, after the Government’s review in 2010. There must be. I also hope that the Government will consider introducing additional credits for workers with children or parents living with them, as many of them will not benefit from child or parent relief. Sir, after the Budget Statement, the Straits Times profiled a lady named Jenny Ong. With the WIS and the CPF changes, Miss Ong is expected to receive $52 more in take-home pay and $30 more in CPF every month. That represents an 8.8 per cent increase over her current monthly salary of $930. But she owes $9,000 in rental arrears and $300 in utilities. That represents 113 months, or 9½ years, of this increment from the WIS. While the WIS will help, it will not make much of a dent in her huge arrears. That is the enormity of the problem that we face. And so, the WIS as announced is only the starting point, and certainly not the finished product. Other measures, like training and upgrading, remain vital in helping the low-income.”
“But, Sir, it seems to me that the WIS does not adequately address the difficulties faced by informal workers and the self-employed. To qualify for the WIS, they must contribute cash. This will be very difficult for them. To compound matters, they will only receive contributions to their Medisave accounts. There are sound economic reasons for taking this approach. We have to avoid creating an incentive for those on the CPF system to drop out. But let us go back to why the WIS is necessary in the first place. It is because the low-income are finding it difficult, if not impossible, to make ends meet. So how will asking them to make upfront cash contributions to their Medisave accounts address this problem? Sir, it seems possible that many, if not most, of those in this group will not sign up for the WIS. Even though the amount of contribution required is low, even if they recognise that the Government is giving them a good deal, even if it will benefit them in the long run, I fear that the prospect of giving up much-needed cash will deter them from signing up. To be honest, it is not hard to understand why. In a way, it is tantamount to penalising this already-struggling group: the ones that possibly need help the most are denied the full benefits of the WIS, and even have to reduce their disposable incomes to qualify. In our attempts to prevent wastage and abuse, are we inadvertently sabotaging the scheme and hindering it from achieving its objectives? Be that as it may, we will have to work around this problem. To ensure that this group receives the help it needs, every effort must be made to educate them on the benefits of the WIS, and the procedure to sign up must be kept simple and fuss-free.”
“As others have pointed out, there is an inevitable lag between the start of a slowdown or recovery and the time when the Government decides to adjust the CPF rate. This time-lag means that the adjustment may end up being counter-productive. It can also wreak havoc with people's financial planning. The CPF’s primary objective is to help people plan for their retirement. Along the way, it has acquired a secondary purpose of funding housing needs. These objectives require people to make long-term plans, which can be upset by sudden changes in the CPF structure or contribution rates. I would therefore ask the Government to consider setting a fixed CPF contribution rate, and then allowing people to do their long-term retirement and housing planning based on this rate. This will provide the certainty that is so essential for this sort of planning. Workfare Income Supplement Sir, the single-most striking policy announced this year is the Workfare Income Supplement. It is not a new concept. The US introduced the Earned Income Tax Credit in 1975, and the UK introduced a similar scheme in 1986. Sir, I will be blunt. In my view, the WIS is one of the most important programmes to help the low-income in Singapore’s history, and I applaud the Government for introducing it. As the Second Minister for Finance said, and I quote: "For the first time, the state will be supplementing the market wages that low-wage workers receive." The most immediate difficulty facing the low-income is self-evident. As Jack Neo might say, “Money No Enough”. The WIS directly addresses this, by putting cash into people’s hands. It also increases their CPF contributions, which will be helpful in the longer term.”
“Having said that, perhaps more could be done to help the so-called “sandwich class”, that is, the households caught between the twin demands of raising children and supporting parents. A Baby Bonus top-up would have been welcome, as would expanded parent relief. Furthermore, while the GST hike affects everyone, many of the GST offsets will benefit only homeowners. This leaves out those who rent, and those who still live with their families, which I must admit includes myself. I hope that, if and when the next GST increase comes around, the Government will remember to provide some relief for this group. Increase in employer’s CPF contribution rate Sir, the employer’s CPF contribution rate has been increased by 1.5%. This is a recognition by the Government that the economy is good, and has been good for the past few years, and so it is time to restore part of the CPF that was cut during the tough years. I fully support the Government’s decision to increase the employer’s CPF contribution rate. It sends the right message to workers, that the Government has not forgotten the sacrifices made when times were tough, and will reward workers now that times are better. Perhaps more importantly, it compels employers who would otherwise not have increased salaries to do so, albeit through CPF contributions. This ensures that the benefits of the growing economy are more evenly spread across the workforce. But Sir, I would urge the Government to reconsider using CPF contribution rates as a counter-cyclical tool to manage the economy. The Government has stated that it will keep overall CPF contribution rates at between 30% and 36%, and will adjust it depending on economic circumstances.”
“Is that what globalisation is about: an unending race to keep up with the Joneses of Hong Kong, Ireland and Eastern Europe, in meeting the incessant demands of globally mobile capital for ever lower taxes and costs? Sir, this cannot be healthy or sustainable in the long run. For instance, we may never be able to match Hong Kong’s tax rates, if only because they do not have to fund a defence budget. Let us also not forget that the US, with its federal corporate tax rate of 35 per cent, attracts massive amounts of foreign direct investment. So the headline tax rate is just one of many relevant factors considered, when investors decide where to channel their funds. Just as we have long ago decided that our economy cannot compete on the basis of low costs, we also cannot keep competing on the basis of low tax rates. A low tax rate may help to attract investments, but it will not be sufficient in and of itself. So we will need to sell Singapore on our other strengths as well: quality of life, relative lack of pollution, greenery, safety, stability and reliability. And we need to continuously strive to maintain, and improve upon, these qualities. Sir, to maintain and ensure fiscal sustainability, we will be increasing the GST by 2 per cent. This will inevitably increase the cost of living in Singapore. The Government’s response is the GST offset package. The offsets are skewed in favour of the poor and the elderly, and I think rightly so. If we accept that we have limited financial resources, which surely we have to, then we must also accept that these resources should be deployed towards the areas of greatest need. Our focus must be to help the low-income survive and get by, and not so much to help the middle-class meet their aspirational goals.”
“Mr Deputy Speaker, Sir, thank you for allowing me to participate in this debate. Sir, our economy is growing at a very healthy pace. Many Singaporeans have benefited and will continue to benefit from this growth, some more than others. But many others have not, and have instead been disadvantaged by the inexorable economic logic of globalisation. Sir, the result is an income gap that has, by measures like the Gini coefficient, widened over the years. Indeed, our income gap may now be bigger than that of the United States, which was one of the more troubling revelations in a recent paper published by the Department of Statistics. I think it is fair to say that the benefits of Singapore’s growth are being disproportionately concentrated at the very top of the population. It is against this backdrop that this year’s Budget is being introduced and debated. Indeed, the Budget Statement contained two recurring themes: ensuring continued economic growth for Singapore in a globalised world, and helping the low-income cope with the onslaught of globalisation. Sir, there were four key announcements in the Budget Statement: the corporate income tax cut, the increase in the GST, the increase in the employer’s CPF contribution rate, and the Workfare Income Supplement. Many other measures were announced, but these four clearly grabbed the headlines. While it seems intuitively right and proper to lower taxes so as to maintain our attractiveness to investors, I cannot help but wonder whether we are engaged in some sort of race to the bottom in cutting taxes.”
“Sir, I would like to ask the Parliamentary Secretary, before the market was liberalised for bank loans to purchase HDB flats, what was the number of HDB units repossessed by HDB itself? And in light of this historical figure, does the Ministry think that the 1% repossession rate is acceptable?”
“Mr Speaker, Sir, I would like to ask the Minister how will this population growth affect our ethnic mix and what are the steps that will be necessary to preserve our racial harmony.”
“This will result in many more enterprises registering for GST, and they will be unfamiliar with the system. However, IRAS has announced that they will charge for tax rulings on GST. So I have two supplementary questions for the Minister of State. Firstly, what is the rationale for imposing such a charge, especially at this time? And, secondly, would IRAS consider a grace period for newly-registered enterprises where it will not charge for tax rulings? So it would be a sort of amnesty period.”
“Mr Speaker, Sir, it is expected that the GST rate will be increased and I think we will find out just how much in a couple of hours.”
“Mr Speaker, Sir, given that the Ministry does not track the salary figures, would the Ministry consider asking the Workforce Development Agency to track the information between the jobs that were lost and the new jobs in which they were re-employed, so that, moving forward, the Government would have a much better idea of what kind of re-employment these PMETs are getting?”