Tan Boon Wan
Singapore
“May I ask the Parliamentary Secretary: do the residents really have a choice of flat? The flat type is being built, they are asked to select, and they are allocated. Do they really have a choice?”
“Sir, I have spoken on the issue of difficult neighbours in previous years. Anecdotally, quarrels among them do not seem to have abated. What is the state of relationship among the residents of our HDB flats? Many problems can arise between neighbours who live in close proximity to each other, practically separated by just a wall.”
“Sir, shops in the precinct and neighbourhood centres are generally facing difficulties and the shopping malls are bustling with activities. However, shops in some areas are doing well. Where the actual demand has fallen, due to the relocation of residents, a return of the shop for a HDB grant is appropriate.”
“Sir, recently, legislation was tightened to rein in the activities of the loan sharks. In spite of the heavy penalties, their activities continued. Innocent victims are still targeted by the runners. I would therefore like to ask the Minister for an update on the loan shark situation.”
“I hope that MAS will also look at this from the viewpoint of legislation or guideline. Although I have discussed this issue with the housing loan as an example, this appeal for new flexibility and consideration for the borrower applies to all personal loans, including credit card debts. Financial Literacy”
“On this issue, both the pro- and anti-sides have their own good reasons for the stands that they took. In deciding the matter, the Government has taken both views and made a decision that takes into account both of them and is in the overall and long-term interest of Singapore.”
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“Sir, I thank you for this opportunity to join in the debate. I thank the President for his Address to Parliament. He paints a very bright future of Singapore. He dispels the gloom and doom that hung in the air just a short while ago. But we are not exactly out of the wood yet. A roadmap exists, but there is much work to be done. Let us all pull together to make this vision come true. Many who were affected by the economic downturn were asking for help to overcome their difficulties. The real answer was pointed out by Minister Lim Boon Heng yesterday. It is a strong economy that brings good jobs, jobs that provide a good and stable income to the family. But the economy has changed. The jobs that it brings have also changed. This probably explains why jobs continue to elude many with low skills and education. Our people must rise to the challenges that the changes bring. However, this and other issues are well-addressed by the President in his Address to Parliament, in the accompanying Addenda and by my colleagues in the House who have spoken earlier. I would therefore like to touch on just two issues - helping our people to cope with hard times and building a community spirit. During the recent economic crisis, many people ran into trouble soon after losing their jobs. They had little or no savings. We referred them to CDCs for interim help for a few months. For more desperate cases, the CCCs may come in with some quick help which may include some food vouchers donated by the NTUC. I agree with this approach of the Government to provide interim help to tide them over a short period. It is deliberately meant to be short and not to encourage a dependent mentality in our people. However, the help could be more generous.”
“Sir, I am glad to hear the Minister saying that there are CDC-run schemes to provide support for our needy families. Can I ask the Minister to request the Government to provide for more money so that the CDCs can do more in supporting all these families?”
“Sir, can I ask the Minister how important is fogging as a method to control the Aedes mosquitoes? Is it dangerous to residents? I am quite sure the method kills mosquitoes but how dangerous is it to human beings? This is important because we have to manage the fogging. We cannot overfog an area and there are several agencies, for example, the Government agency could be fogging and the private contractor could also be fogging. So we have to manage the fogging so as not to overfog an area to the consternation of our residents. Assoc. Prof. Dr Yaacob Ibrahim: Sir, I would like to assure Members that fogging is safe. But having said that, we are very sparing in the way we use fogging. We have to ascertain whether there is a real cluster and whether the population of the Aedes mosquitoes is very high before fogging is used. The elements which are used in the fogging are controlled substances. Anybody who wants to use those substances will have to use those which have been registered with NEA. We educate condominium household owners, especially the management committees, on how and when they should use fogging and we ensure that the pest controllers who are involved in the fogging are also trained to use this judiciously.”
“Mr Speaker, Sir, I would like to ask the Minister whether dengue is running out of control in Singapore. If he looks at the Ang Mo Kio and Yishun areas, the numbers have gone up tremendously. In the last seven years as an MP there, I did not have that many cases but now, almost invariably every week, I see a couple of clusters. This is a deep concern for our residents. Assoc. Prof. Dr Yaacob Ibrahim: Sir, I agree with the Member that we have to be concerned but I think it is not right for us to say that it is out of control. The situation is well under control. As I mentioned in my reply, we have stepped up enforcement and inspection. In fact, for the Member's constituency, we have checked in the last few weeks and found that there have been no cluster cases. We have one or two sporadic cases but there has been no known cluster. But the point I want to make, Sir, is that once a case is reported, NEA will go in with officers to check and determine whether it is a cluster, and it will carry out the necessary action such as fogging and eliminating the breeding sites. We will continue with the enforcement but, as I mentioned in my reply, we need community involvement. It is difficult for us to say whether the Mozzie Attack is successful but the signs are encouraging. More people are aware of what are the things that they can do. Again, as I mentioned in my reply, the culprits are basically households where indoor breeding contributes 60% of the cases that we have known. We need to get members of the public to be aware and to do the little things that they can do that will help us to keep dengue fever as low as possible.”
“Mr Speaker,in view of the fact that there have been several cases involving foreign students - CaseTrust probably would have emphasised on the foreign students -would CaseTrust also be taking into consideration the interest of the local students as well?”
“Madam, in recent years, jobs have become a major concern of Singaporeans, and this issue has occupied this House. With the improved economy, people are now generally more hopeful. However, as my fellow colleagues have represented, the less educated, skilled and also the older workers - those past 40 years old - do not share this optimism. The former want to know where the jobs are going to come from when the new jobs are becoming more high-tech and skilled, while the jobs they used to do are leaving for China, India and elsewhere. For the older workers, they said that employers continue to be averse to their age. What plans does the Minister have to ameliorate their concerns and fear? What are they going to do to earn a living? Shortage of Workers”
“Sir, I join Dr Amy Khor to ask the Ministry to take a look at what the teachers are doing in school. Stress the teachers face - a topic that has been raised many times over, and I am sure the Ministry has taken serious actions on it. But it appears to be a problem that refuses to quietly lie down and die. It continues to cause anguish. Some teachers said that they and their colleagues continue to see their doctors for problems related to stress. I would, therefore, like to request the Minister for an update on the situation and what further steps will be taken to reduce the problem and help teachers cope with stress.”
“Sir, the Ministry plans to increase the intake of polytechnic and university students. Such expansion allows opportunities in tertiary education for more of our students. This is a good thing. However, such expansion can affect the quality of education and educational standards. This can occur in many areas, for example, content and instruction delivery, teachers' training and testing. Experience in the UK and elsewhere saw inflation of grades and the lowering of the quality of graduates. May I therefore ask the Minister if he has such concerns and, if so, what does the Ministry plan to do in order to avoid or minimise these negative aspects of expansion in student intakes? School Session”
“HDB reviews all the applications for rental flats very carefully. When the Minister suggested sometime ago in Parliament that X% of flats were waiting to be rented out, it was because the people who have applied to HDB, do not qualify for these rental flats. We have stringent requirements to rent out rental flats. Basically, they must be low-income, they must have a friend to co-share the flat with them, and they must not have sold the flat within 30 months. These are requirements. It is not that we do not want to rent out the rental flats. It is that people who come to us, in large numbers, do not qualify for these rental flats.”
“Government is not going to lend them now. So they issue bonds - they are borrowing money from the public. These bonds are, what we term, medium-term notes - 10 to 25 years. To-date, they have issued something like $3.4 billion worth of bonds, with outstanding bonds for $3.1 billion, which are money that HDB owes the public. For financial year 2004, HDB is projected to have an operating deficit of $422 million, mainly from the subsidised sale of HDB flats and the provision of CPF housing grants which the Minister talked about earlier on. Hence, a capital grant of $422 million is necessary to cover this deficit. Mr Steve Chia said that HDB has a lot of money, it has investments in bonds and equities. These bonds and equities are actually held by HDB's subsidiaries, not by HDB. If we look at the HDB Yearbook, if we look at the balance sheet on page 119, we will see investments. This is the latest yearbook. The one that is coming out should be for 2003/2004. This is the 2002/2003 yearbook. If we look at the balance sheet, there is an investment item (item 7). If we look at the notes - on one side is HDB, and on the other is HDB group - HDB has nothing here. We have no investments in equities, bonds or anything like that, but HDB subsidiaries do. There is some money there but they are not all in cash. The subsidiaries have turned the money into working capital - some of it they have bought equipment or things necessary for their operation. HDB does receive dividends from them which are considered part of income and will be offset against expenditure. But in spite of that, HDB will suffer about $422 million estimated loss this year. HDB does not have any money. Mr Steve Chia suggested that HDB should quickly rent out all its rental flats instead of losing money.”
“There are no basketball courts there - the Member said there are two in Potong Pasir. Because Tiong Bahru is part of the Queenstown estate, so my residents are encouraged to use facilities in Queenstown Sports Stadium which is built for that purpose. Of course, that does not mean that the Potong Pasir MP cannot use the money that they have in the Town Council to build some local facilities. They could have built more table tennis courts in their void decks using their surplus. They can also write to HDB to allow their money to build basketball courts on the common property. I do not think we will object if they use their own money. I think the Member for Potong Pasir can well afford simple projects like these. If we look at the facilities in Hougang, we will find that facing the same constraint, the Member for Hougang has done remarkably well. He has not complained of a lack of recreational facilities. In fact, the last time I went there, I found that it is quite well-endowed with simple but adequate recreational and sporting facilities. On Mr Steve Chia's questions, first, I want to commend him for reading the Budget Book, the estimates report and the HDB Annual Report. But I think he has missed out important items. I want to point them out. This is important. So I read from the statement here: "HDB does not have accumulated surplus. HDB is not a profit-making organisation. It is a loss-making operation because we subsidise most of the operations we do, especially in the sale of flats." This can clearly be seen from HDB's financial statements published in the annual reports. Contrary to the Member's earlier question, HDB does not have any investments in bonds and other financial instruments. They are short of money. They used to borrow from the Government.”
“Ceiling board again is an item that falls in the common area and it is a wear-and-tear item that we need to look into. Regarding the promise by HDB to complete the project and then withdrew that promise, I will have to look into that. If the Member has any correspondence on this, please let us know. If it was a commitment by HDB before the withdrawal, then we will have to honour that. But we will have to look at the allegations carefully. On Surbana's performance, as far as we are concerned, Surbana must deliver on what they can do. Surbana should not be doing a postman's job of passing claims onto HDB. We will have to look at that because Surbana has only been corporatised not so long ago. We believe that Surbana is still trying to find its feet, but we believe that this could be an isolated case where Surbana is delaying some advice as to how to carry out these repairs. We appreciate the Member's feedback. Certainly, we will look into this allegation. On the provision of facilities in Potong Pasir. Potong Pasir is a political division. Like any other political division, it is not a big town. Potong Pasir is part of the Toa Payoh Town. If we look at Toa Payoh Town itself, there are more than enough recreational and sporting facilities for everybody. In Toa Payoh Town itself, it has got a very good sports centre, swimming complex, a beautiful Toa Payoh park and a neighbourhood park that links Potong Pasir along the canal to Toa Payoh Town. So the residents in Potong Pasir are welcome to use the facilities in the Toa Payoh Town because we do not stop them from coming just because they are Potong Pasir residents. If the Member complains about Potong Pasir, I have more to complain about Tiong Bahru, for example. There are no facilities there.”
“Firstly, let me explain why the goodwill repair was extended some 10 years ago. That gave the impression that it was a defective construction project - I am referring to the sunken aprons and manholes. The goodwill repair was extended some 10 years ago because at that time, Town Councils were a new entity. We recognised that many Town Councils did not have the expertise to do such repairs or the resources, ie, money. So HDB extended the goodwill repairs. Over the years, in the last 10 years, Town Councils have accumulated substantial experience, and they know what to do. Secondly, they have accumulated substantial reserves. For example, in the case of Hougang, they have something like $15 million in the sinking fund which they could use to do such repair works. How did these sewage pipes sink? Because over time, there is soil movement. Sewers rest on the soil, so when the soil sinks, the sewage pipes could sink - not everywhere because we do not know where the soil will sink to. This is part and parcel of the maintenance process which my Minister of State was talking about - maintenance over a long period of time, which is the responsibility of Town Councils. All these items fall in the common area - manholes, aprons and sewage pipes. On top of that, over the last 10 years, the Government has also provided S&C grants to all the Town Councils. In fact, the sinking fund that Hougang has accumulated, $15 million or so, came almost entirely from the S&C grants because over the last 10-11 years, the Government extended to Hougang Town Council something like $14 million S&C grants in total. It means that they are eminently able to carry out these repairs. The Member also mentioned other items like ceiling board.”
“Madam, of every hundred of our people, over 85 live in high-rise HDB flats. They live close to one another, sharing common facilities and space. To live in harmony, we have to cultivate a community culture, a respect for each other, tolerance of our differences, caring for one another and helping to protect and maintain common properties and facilities. We need to evolve into a civil society. We are still a long way from this. We have neighours who hang dripping mops outside their flats, throw litter and curry out of their windows, create irritating noises late into the night, urinate in lifts, clutter up the common corridors, discard unwanted fliers in the void decks and vandalise common properties - just to name a few examples of uncaring behaviour. It appears that such unpleasant incidences are on the rise. What can we do about this? How do we go about creating a civil caring society? This is a multi-faceted issue. But as the HDB, under the purview of the Ministry, is the agency in charge of most of our houses, I hope that the Ministry could look into the matter and facilitate our evolution into a civil caring society. The Senior Parliamentary Secretary to the Minister for National Development (Assoc. Prof. Koo Tsai Kee): Madam, first, I want to assure the Member for Hougang that the rules on the withdrawal of the goodwill repair on sunken apron and the manhole apply universally across all the Town Councils, not just to Hougang or Potong Pasir, but also to all PAP Town Councils. It is fair that he came here to complain, but he did not hear the screams of some of the PAP Town Councils' Chairmen - Dr Teo has been very angry at the withdrawal of these goodwill repairs and so did many other Chairmen like Mr Othman Eusofe and even Dr Tan Boon Wan.”
“Madam, my residents who have enjoyed the upgrading of their estates, and in particular lift access to every floor, have asked me to convey their thanks to the Government. Those families with members who are less mobile, especially aged parents, have found the universal lift access to their flats most useful. Other residents, especially those with aged parents or who are themselves ageing, having seen the benefits of universal lift access, have asked for the upgrading of their flats to be expedited. I join my fellow colleagues to urge the Government to, amongst the various upgrading programmes, give priority to the Lift Upgrading Programme. Can we hasten lift access to every floor?”
“Sir, we have become a computerised and network society. As more data are kept in computers and information transmitted via electronic networks, the issues of data and network security, privacy and availability become of increasing importance, especially in the midst of increasing e-mail spamming, computer and network intrusions and virus attacks. What plans does the Ministry have to protect our computers and networks?”
“I would like to ask the Minister for an update of our information technology and communications industry. India and China are attracting many US and European ICT companies and jobs. How does this trend affect us? What is the future of the ICT industry in Singapore? What are our strategies and plans for the ICT industry. Business Process Outsourcing”
“Sir, two years ago, the Minister revealed plans to develop our cultural capital, to turn the cultural and the arts sector into an important economic sector. The Committee of Supply discussed this plan last year. I submit that the arts scene has since then become more vibrant. I would, therefore, like to ask the Minister for an update on the further progress achieved in this effort. What future plans does the Ministry have to enhance this goal further? Employment in the Arts and Culture Industry”
“We also seek to recognise outstanding service through awards, such as the Retail Courtesy Gold Award and the Excellent Service Award. One good example of this is a SuperStar winner at the 2003 Excellent Service Awards. Mr Eric Yeong is a taxi driver with TIBS. One day, he picked up a passenger from Gleneagles. She was just discharged and had a newborn baby with her, and Eric Yeong drove very carefully through all the road humps, to ensure that she had a safe journey home. The passenger was so impressed with Eric Yeong that when she wanted to deliver the celebration cakes at the first month, she engaged Eric Yeong again. Again, Eric Yeong was very solicitous, very careful, very pleasant, that even her friends thought that Eric Yeong was actually her relative. Sir, in service quality, as in entrepreneurship, the Government can facilitate but, ultimately, it will be our people, service workers such as Eric Yeong, and entrepreneurs such as Aiting, Chandra and Sam, who will make a difference and take us to the next level. On our part, we will continue to lay the foundation, so that our people can sense and seize opportunities, and realise our collective vision of a more open, creative and cosmopolitan Singapore. Tourism”
“The retail sector suffers from a lack of innovation and product differentiation, insufficient customer segmentation, as well as increasing regional competition. Smaller HDB retailers, in particular, are handicapped by the lack of economies of scale. How can we help them? The Retail Academy of Singapore, which is co-funded by the Government and the private sector, provides training for retailers to upgrade their skills and improve retailing standards. The Retail Promotion Centre provides skills workshops for HDB retailers, for example, on creating better retail ambience, as well as projects, such as the Heartland Shopping Surprise, which involved 2,000 retailers at about 20 town centres island-wide. Some HDB retailers have already seized the initiative to upgrade. One example is Mr Seow Hong Kheng of Tong Seng Huat in Toa Payoh. After becoming a franchisee of I-Econ last November, his outlet has been able to attract more customers, especially young working adults. The store layout is now less congested, which enables customers to easily locate what they want to buy. This new look has improved sales by between 10% and 20%. Ms Irene Ng and Dr Tan Boon Wan brought up questions on the quality of service, and that we need to upgrade it. I agree with Ms Irene Ng that this problem, like entrepreneurship, is one that actually involves mindsets and societal values. Our workers must want to provide good service and, as customers, we must appreciate and value the good service that we receive. In this respect, STB's Art of Service programme aims to engender an attitude of passion, vocational pride and creativity in the delivery of service among workers.”
“We agree that we should constantly seek to improve our service delivery to SMEs. To this end, we will strengthen SPRING, which will work together with Government agencies, such as EDB and IE Singapore, to develop an SME One Stop. This will help SMEs find the right information and assistance, reduce the time and resources needed to carry out Government transactions, and get closure with the other agencies. This, however, will be a challenge. There are about 110,000 SMEs in Singapore at different stages of development, with very diverse needs. And we have to work with finite resources. So, the SME One Stop will be primarily web-based, and supplemented with a call centre and face-to-face consultation services. The web portal will enable SMEs to obtain all the information they need, as well as apply for licences and Government assistance schemes without having to go to different agencies. The portal will be designed with SMEs in mind. It will be simple to navigate and easy to understand and use. To develop this customised portal for SMEs, SPRING will conduct a pilot study with a group of between 300 and 400 SMEs to better understand their needs. But we recognise that, for some SMEs, they will still prefer to make a call or have face-to-face consultations. But because more resources are needed to provide that sort of service, we might need to levy a fee when it comes to those services. Quality service - a way of life One sector dominated by SMEs is the retail sector, which Mr Arthur Fong brought up just now. The retail sector was badly affected by SARS last year, but it is now showing signs of recovery. However, more fundamental issues remain to be tackled.”
“The tax accountants we consulted agreed that the cost of M&A between local SMEs is about 2-4% of the transaction value, and that it is not prohibitively high. More importantly, successful integration depends very much on finding the right partners, rather than tax incentives. Otherwise, value would be lost, not added, in the merger. Thus, we feel that mergers are ultimately commercial decisions that should be best left to the private sector. However, a strong buy-out fund industry can help facilitate this. In this regard, there are tax incentives to set up private equity funds, including buy-out funds. Section 13(H) of the Income Tax Act provides exemption on gains from the fund, while the Pioneer Incentive provides exemptions on income derived by the fund manager. To successfully penetrate overseas markets, our SMEs will need to differentiate themselves. Thus, I agree with Dr Ahmad Magad that we need to promote innovation among SMEs. This was the impetus behind the Growing Enterprises Technology Upgrading (GET-Up) programme, which Minister George Yeo mentioned earlier. Dr Ahmad Magad also mentioned it is important that we retain talent, if the SMEs are to grow. I agree with him. SPRING has been helping SMEs to improve their HR practices through the People Developer Standard. This offers companies a systemic process to review their people practices, develop staff and improve training effectiveness. The results have been encouraging, as SMEs make up about 50% of the 2,000 organisations participating in the People Developer programme. Mr Inderjit Singh has asked for a one-stop shop to serve SMEs even better. We have also received similar feedback from groups, such as the Feedback Groups on Economic Development and SMEs.”
“About 70% received that. In terms of LEFS, about 80-85% gets approval. But we will constantly review and ensure that these schemes are relevant and effective. We will take note of what he has said because we want to constantly improve on this. But we need to bear in mind that, in the normal working of the market, definitely some firms will not get funding, and that is not the sign of a market failure. Mr Ang Mong Seng brought up the difficulties of some companies which have insufficient track record or turnover, and that they cannot register. He will be pleased to know that, currently, companies with insufficient track record or turnover can register as a Government supplier to participate in Government tenders, as long as they have the requisite paid-up capital. When Government agencies process tender applications by start-ups, we will look at the entrepreneur's track record, if the company he heads is too new to have a track record. However, the Government can only lead by example here. It cannot mandate that bigger companies consider smaller companies when issuing contracts. These are commercial decisions. The competition law will not address this. Nor is it meant for cases where bigger companies take ideas from smaller companies when they negotiate. The proper protection for that is through the use of confidentiality agreements and intellectual property law. What the competition law can and will do is to target anti-competitive agreements and conduct of companies, such as abuse of dominance, that have significant adverse impact on competition in the market. The issue of incentives to encourage mergers was raised by Dr John Chen. This was discussed in the ERC.”
“Mr Inderjit Singh has also suggested that the interest rates for LEFS loans be determined by the PFIs, instead of being fixed by SPRING, and that LEFS be made available for trading loans. The expanded LIS will cater for trading loans. We will also study further if LEFS can accommodate such loans, and if variable interest rates can be introduced for LEFS. This should be completed within the next few months. Concern was also raised by Mr Inderjit Singh about the need for a Chapter 11 type regime in Singapore to help companies restructure, and avoid the situation where banks go for winding up at the first sign of problems in the SMEs. Our insolvency laws already provide for corporate re-organisation, such as schemes of arrangement and judicial management, and they have been used by creditors. The Government is also reviewing the merits of a US Chapter 11 process, a follow up to the Company Legislation and Regulatory Framework Committee Report. There have also been calls for the setting up of a private equity exchange. We are supportive of this. Some private sector parties are already exploring this, and we will work with the relevant Government agency to facilitate this effort, where necessary. Dr Gan See Khem and Mr Arthur Fong brought up some difficulties which some SMEs had in financing. We need to draw a distinction here. If there is a systemic market failure in terms of financing, the Government will intervene. However, at any moment in time, a particular firm might fail to receive financing in the market. This is not a failure of the market. This is a normal working of the market, that some companies will not get financing. Mr Arthur Fong mentioned micro loans. The success rate in terms of approval is about 70%. So, it is not true that it has not been successful.”
“In particular, we have taken in feedback, and will include loans for internationalisation. Once these details are confirmed with the PFIs and insurance underwriters, we will be launching the expanded LIS in the next few months. In response to a recommendation by the ERC Subcommittee on Entrepreneurship and Internationalisation, a new scheme, the Technology Credit Programme, will be piloted later this year. EDB is exploring and working with specialist lenders to provide loans to technology start-ups under this scheme. Unlike conventional lenders that rely on collateral to make loans, these specialist lenders will rely on their understanding of underlying business models, intellectual capital and their potential. As this scheme develops, we will look to extend it to non-technology companies, as we have done with the other financing schemes. The Government will also be embarking on the SME Loan Securitisation project this year, which Mr Inderjit Singh mentioned just now. It will leverage on the bond markets to reduce the credit risks for lending banks. In the process, we hope to open up financing to potentially under-served SMEs, such as start-ups without established track records and SMEs that lack collateral. The Government has already been in extensive discussions with banks on this. It is anticipated that the securitisation issue will be in the size of at least $300 million. This will be launched by the end of this year. We continue to welcome new suggestions on how we can improve access to financing. Mr Sin Boon Ann has mentioned the possibility of setting up credit co-operatives. I will ask the Finance Action Crucible, headed by Mr Inderjit Singh, to work with SPRING to look into this.”
“Now, SEEDS has been successful, investing in over 100 companies since its launch in October 2001. One SEEDS company, RADIXS Pte Ltd, was founded in 1999 by two 21-year olds, R Chandrasekar (Chandra) and Sam Hon Kong Lum. Last year, the company launched the world's first universal mobile operating system, known as the Motion eXperience Interface (MXI). MXI has the capability to deliver desktop content and applications written for other operating systems to handheld devices, without any redevelopment or porting. The technology is currently being tested by SingTel and Sun Microsystems, and has captured the interest of major global mobile operators, Fortune 500 technology vendors and enterprises. Following the success of SEEDS, the scheme has now been extended to innovative start-ups in non-technology industries. 6.15 pm In the same vein, the Technopreneur Investment Incentive has been expanded to non-tech sectors, and renamed the Enterprise Investment Incentive. Mr Singh also asked the Government to consider deploying future technopreneurship promotion funds to many small funds managed by the private sector. This is already being done. The US$1.3 billion Technopreneurship Investment Fund (TIF) is a fund-of-funds, which invests in private venture capital firms. So far, more than US$230 million from the TIF has been invested in Singapore start-ups and companies. In the coming year, there will be a number of new initiatives to improve debt financing. In September 2002, we started the pilot Loan Insurance Scheme (LIS). This has proven to be helpful in meeting the short-term financing needs of SMEs. We will, therefore, be looking to expand the LIS, to provide about $500 million of loans over five years. The range of indemnity, facilities and PFIs will also be increased.”
“The survey of businesses will measure regulatory agencies in terms of compliance costs, regulatory obstacles, transparency, customer responsiveness, rules review and pro-enterprise orientation. The top ranking agencies will be announced at the ACE BlueSky Festival. By doing so, we seek to recognise those who have effectively adopted a pro-enterprise mindset and encourage other agencies to do likewise. SME financing made easy - in a market based way Many Members have spoken on access to financing. It is an important area. It is a critical area. Dr Gan See Khem, Mr Inderjit Singh and Mr Arthur Fong have spoken on the need to improve access to financing. I agree. The ACE Finance Action Crucible, led by Mr Inderjit Singh, has been pro-active in exploring different financing avenues and introducing a number of initiatives last year. They have done a lot of work, and they ought to be commended. They launched the Deal Flow Connection last July, to serve as a platform to link investors with companies that require financing. Since then, it has facilitated over 370 matches between entrepreneurs and financiers. Over the past year, equity financing for start-ups has also improved. The Government's approach is to make financing for start-ups and SMEs easier, in a market based way. An example of this is the Start-up EnterprisE Development Scheme (SEEDS). Instead of civil servants making the venture investment decisions where they have no expertise, the Government relies on third-party funding to provide market validation of the company's investment viability. Such independent party validation is valuable and this is why I am reluctant to modify this to include money invested by the firm's founders, as some have suggested.”
“This is likely the first time that most of the entrepreneurship groups in Singapore are coming together, and the Festival will cover all aspects of entrepreneurship, including social entrepreneurship. ACE will work closely with other private sector organisations, such as the Young Entrepreneurs' Organisation, the Association of Small and Medium Enterprises, and many others on this. I hope that the Festival will also provide a platform for these groups to come together in the future to share resources and work on collaborative projects. Regulatory environment - pro-enterprise mindset Let me now turn to our efforts to promote a pro-enterprise regulatory environment. Dr Ahmad Magad has spoken on this, that we need to cut the red tape. Mr Ang Mong Seng has said that the civil servants need to have a pro- enterprise mindset. I agree. I think the most significant measure here is DPM Lee's announcement in his Budget speech that henceforth, the default key for the regulatory agencies will be set at "Yes", as long as the entrepreneurial activity in question does not cause unmanageable problems or harm to others. This must be so, if we want Singaporeans to discover new frontiers. Mr Inderjit Singh suggests that Government agencies consider the cost impact on businesses when new laws are formulated. He would be pleased to know that this is indeed what is being done now. This is something that is looked into every time we are formulating a new law. To give greater impetus to the existing review mechanisms, the Rules Action Crucible of ACE, led by Patrick Daniel, will be commissioning an annual pro-enterprise ranking of Government regulatory agencies.”
“Beyond just having brilliant ideas or innovative technology, successful entrepreneurship includes how to pitch products and secure customers, how to assemble and motivate a team of people, even something as basic as how to manage cash flow. Our Institutes of Higher Learning (IHLs) are doing this but one constraint that they tell me that they face is funding to help students start their businesses, and learn by doing. We will therefore be launching the Entrepreneurial Talent Development Fund (ETDF). With $25 million set aside over five years, it will provide matching funding to IHLs to help seed their students' business ventures. We hope to fund some 100 ventures per year, and provide at least 200 students with on-the-ground start-up experience. While we hope that some will succeed, equally important is that those who do not succeed the first time will be wiser when they take on their next venture. MTI and SPRING have already been working closely with the IHLs, and ETDF will be rolled out in May. We hope that by doing this, we will have more people like Ms Huang Aiting. I met her at the Shell LiveWIRE Young Business Start-up awards in October last year. And she impressed me. An alumnus of the LaSalle-SIA College of the Arts, she is the creative talent behind WOMB Wardrobe. Her creations - clothes and fashion accessories - have a certain primal energy about them. Not surprisingly, she won the top award. She spoke to me after the awards, and she said that when she started, she simply did it out of 'guts and passion'. We want more young people like that, gutsy and passionate. Later this year, we will be holding the inaugural ACE BlueSky Festival, to celebrate entrepreneurship.”
“We hope to develop a Singapore, where our people are quick to seize opportunities, willing to take calculated risks to create something new and blaze different paths to success. Society will welcome those who dare to be different, and celebrate those who succeed brilliantly. But it will also accept those who meet setbacks and encourage them to pick themselves up and try again. It is a vision for everyone, of every age. Changing culture, however, is a long-term effort. To start, we need to foster these values in our young. Our schools are doing their part. They have initiated interesting entrepreneurship programmes that have led to students operating online auctions, selling hydroponic vegetables and running used bookstores and cafes in school premises. I am considerably cheered by the enthusiasm that the students have shown for these programmes. In Rosyth Primary School, for instance, four nine-year olds took eight months to create a new board game, called the Poster Game. I understand that it is quite successful. This was launched in last November, funding by City Development, and whatever money they earned they gave it back to charity. ACE has also started the ACE Speakers' Circuit. This involves more than 50 entrepreneurs, who have volunteered to share their experiences at public engagements, targeted principally at students. We expect about 200 speaking engagements to be held this year alone, reaching out to about 40,000 people. Now, part of building an entrepreneurial culture is equipping our budding entrepreneurs with the skills to take their innovative ideas to the market.”
“Sir, I agree with Ms Irene Ng in her observation. I think Government sees the service sector as the major employer of our people in the future. We also want to attract more tourists to our shores. Over the past few years, I could see the marked improvements in the quality of public service. But I cannot see the same for the services provided by the private sector, in particular, in the area of customer service. The service personnel usually lack the knowledge, as Ms Irene Ng has said, and provide poor, inattentive services. What can we do to improve the quality of customer service in the private sector? How can we build a more service-oriented society? The Minister of State for Trade and Industry (Mr Raymond Lim Siang Keat): Sir, many Members have highlighted the need to help our small and medium enterprises (SMEs) to better compete. We agree with them, as our aim is to build a creative and entrepreneurial economy, where companies, whether foreign or local, large or small, can grow and flourish. Going forward, we want more start-ups and SMEs to inject vitality and buzz into our economy. We want them to develop new ideas and businesses, tap new export markets and broaden our economic base. Thus, there has been a slew of initiatives to promote entrepreneurship. In May last year, we kicked off the Action Community for Entrepreneurship (ACE). This is a joint public-private sector movement aimed at creating a more entrepreneurial environment in Singapore. ACE has focused its efforts on three areas that I highlighted in this House last year, one, to promote a more entrepreneurial culture in Singapore, two, a pro-enterprise regulatory environment, and, three, better access to financing. Entrepreneurship culture: for everyone, every age Let me start with culture.”
“Sir, our less-skilled and less educated citizens also need work. The new high technology companies are unlikely to provide these jobs. Are there companies which are not high-tech but will provide jobs for these workers and can remain viable in Singapore with a little bit of help from the Government? An example that DPM spoke about a few days earlier is the textile industry. Our FTA with US and its provision has breathed a new life into the industry in Singapore. We should try to identify these companies and help them to stay in Singapore for our workers.”
“Sir, Singaporeans are generally very appreciative of the ERS, especially during this period of a weak economy. But the poor and old have difficulties topping up their CPF accounts. The Government must be credited for the efforts to remind those who have not made their top-up before the deadline. The Government had also arranged for the old to use the existing savings in their CPF accounts for the top-up. But this still leaves out the poor who do not have the money for the top-up. What can we do to help these people? For example, can we allow the CCC to lend money from its welfare fund interest free for the top-up and this amount should be deducted from the respective individual CPF account and return to the welfare fund without infringing laws, such as the Money Lenders Act? This will enable the CCC to assist the needy residents without depleting its funds which can then be made available for other welfare purposes or the next round of top-ups.”
“Sir, the quality of life has increased and people live longer. We thus need to save more for old age. The CPF and the Supplementary Retirement Scheme (SRS) are two main means for saving for retirement. We can understand the need to reduce CPF contributions to reduce business cost in order to save jobs. But I do not understand why the allowable amount of SRS savings is reduced in parallel. Employers do not contribute to SRS savings. It does not add to business cost. In fact, the Government should be doing the opposite to make up for the reduction of CPF contributions. I would like to ask the Minister for Finance to reconsider the decision to reduce the amount of allowable SRS savings. It could mean a lot to everyone who uses the SRS to save more for their old age. Road Tax”
“Sir, I would like to ask for an update of the state of our public services. The Government now intends to further improve public services with increased use of the Internet and the web. But many of the public still use the telephone to interact with the Government. Furthermore, the telephone services, especially those provided with automated systems, have caused much anguish. Many people find them most unfriendly and difficult to use. Does the Government still consider the telephone as an important mode of public access to Government services? If so, does it intend to improve the services, and how? Morale of Civil Servants”
“I would like to ask if we stipulate the conditions for use of the handphone with extension - because by the Senior Parliamentary Secretary's explanation the mere use of the handphone, whether with an extension or otherwise, constitutes an offence, and many people in fact use the handphone with the extension cord - are they committing an offence, by his definition?”
“I just wonder if a person is not using a handphone, but using one hand to drive, and uses his other hand to press a button on the sound system, for example, he is obviously using one hand and pressing a button.”
“What is the offence? Is it that he holds the wheel in one hand and presses the button with another hand, or just a mere using of the phone is an offence?”
“Mr Speaker, Sir, may I ask the Senior Parliamentary Secretary if he will tell us whether it is an offence for a driver to hold a handphone in one hand and press the button on the keypad?”
“Sir, on that note, I support the proposed changes to the CPF.”
“Mr Deputy Speaker, thank you for allowing me to join in this debate. We were geared up this afternoon to hear drastic changes to CPF. It was thus a great relief to hear from the Prime Minister that the changes would be phased in. It is very reassuring that the Government leaders understand and acknowledge the pain and sufferings attendant with the CPF changes and have taken these concerns into consideration and ameliorated them. Although the pain and sufferings are reduced, they are not entirely eliminated. I therefore urge the Government to look into ways to help those who are affected to overcome these problems. Bear with me while I repeat a point made by other hon. Members. The CPF is used by many to pay their housing loans. I hope that the Government can, for instance, work with the banks to extend the repayment period and lower the monthly repayment in line with the reduction of the CPF contributions. I look forward to hear the measures that DPM Lee Hsien Loong would announce shortly on how they can help the people who are affected. However, this should not distract us from the seriousness of the challenges that we face as a nation. We must therefore brace ourselves for the needed changes to remain competitive in a very fast changing world. It beholds us to realise that Singapore is a small place where the margin for errors is also small. If we miss the boat, it may be a long while before the next arrives or, worse still, it never comes. I thus urge all Singaporeans to understand the gravity of the problems that confront us, to support the Government and to do whatever needs to be done to ensure that Singapore continues to prosper so that Singapore will have a home not only for us, but also for our children and their children as well.”
“May I seek clarification from the Minister? I believe we classify SMU as a private university, but yet we have subvention from the Government. Can I understand that this concept of the fourth university with international university would be truly a private university, in the sense that there is no Government subvention, or would there be any Government subvention of some kind?”
“Sir, I would like to ask the Senior Parliamentary Secretary whether there is a possibility that tempered glass can shatter in shards and not necessarily in rounded pieces. Assoc. Prof. Koo Tsai Kee: Sir, tempered glass can break and, when they break, they break into small little pieces. When they break into shards, we have to subject the glass panel to further tests to see why they break into shards rather than into small little pieces.”
“By putting the focus or emphasis on the sports, the Sports School would be able to achieve the goals for which it was set up. I hope that the academic emphasis by the Sports School is not a cop-out for fear of not being able to produce the sports talents but making sure that they cannot be accused of destroying the student's life, for the latter has his or her excellent academic qualification.”
“Sir, like my many colleagues, Mr Sin Boon Ann, Ms Irene Ng, and several others who have spoken before me, and many Singaporeans, I am dismayed that only Express stream students can qualify for a place in the Sports School. If the intention was to establish an academic institution, then I do not see the relevance of constituting the Sports School under the purview of the Ministry of Community Development and Sports. In fact, I recently read in the media that 10 schools in the Woodlands area are introducing a sports programme in the schools to nurture sport talents. Other secondary schools and JCs have also signalled the same intention. Do they see an opportunity to outdo the Sports School? I wholeheartedly agree with the Sports School that our sportsmen and women should be educated. We want them to be functional citizens. This means they must be literate, able to read and write. They must reach the basic academic standards, able to live a normal life after their sports days are over, or if they fail to make it in sports. For those able to go further academically, they must have the opportunity to do so in the Sports School. They must have the opportunity to be as best they can be academically while perfecting their sporting talent. But the focus of the Sports School must be on sports. The intention of setting up the Sports School is certainly not to nurture academic excellence that our existing schools are doing very well. In this spirit, I feel that the Sports School should identify those who have the talents to be good in sports, regardless of academic abilities. The School should then work with them to ensure that they achieve the basic academic education to be functional citizens, but nurturing them in their sports talent.”
“I therefore would like to ask the Minister to review the help that is now available to help people who are genuinely in need. Is the help provided adequate? Are the resources available adequate? Can we also provide financial counselling to those in need of help, so that they can have a holistic picture of their problems?”
“Sir, more people have come for help during this difficult period. Over time, some of these cases will become "hard". These are people who are unable to find jobs over a prolonged period, and their financial situations have deteriorated rapidly and deeply. After a prolonged period of unemployment, the chance of finding work has become even less. It is more difficult for them to get back to work. More help is needed for these people. We need a more focused or targeted approach so that assistance can be rendered to the deserving parties in a timely manner before the cases become "hard". Sir, it is right that we should help those who are prepared to help themselves. But even if they do not want to put in the efforts to get themselves out of their predicament, we still need to assist their family members, especially the old and the young. The young must be helped with their education. Without education, the young will go through the same sad path that their parents took. We will then have a group of chronic poor. Some people want to help themselves, but they do not know how to help themselves. What are really their problems and how deep are their problems? We need people who can counsel them, especially with regard to their financial positions and options. If they do not understand their problems or how deep are their problems, they are less able to find a way out. It is very frustrating to provide help on a piecemeal basis. They come in with their utilities supply problem one evening, the service and conservancy charges next, and you think you have helped them solve their problems. And they come back with their school fees problem, and then they ask for jobs. Then this problem cycle starts again from the very beginning. It is very sad and frustrating.”
“Sir, since the dot.com saga, and the problems of the telecommunication industry, the interest in the infocomm industry appears to have waned. This would be a great mistake. It is right to cool the euphoria of IT and telecommunication, but we must not lose sight of its relevance and importance to the new economy. Information and telecommunication technology underpins the new economy. We have irrevocably moved into a network and knowledge-based economy. Traditional economies will transit over to the new economy. There will be many opportunities for us in the infocomm industry. I would thus like to ask the Minister about the status of the infocomm industry. What progress has it achieved last year? In view of its continuing growing importance, what plans does IDA have to further develop the industry? In particular, I would like the Minister to provide an update on the status and development of e-commerce. What is the position of the Government on e-commerce?”
“I would thus like to ask the Minister for an update of our efforts to develop our cultural capital and the culture and arts sector into an important economic sector, in respect of the three components that I have just outlined. What are some of the future plans that the Ministry has to develop this sector? 12.30 pm”
“Sir, competition from other countries in the traditional economic activities is increasing. As our economy is rapidly changing, the services sector looks set to grow to become more important. If you look at Venice, Paris, London and New York, we see many visitors who come to enjoy the cultural and arts resources and activities. Such tourists are an important economic sector of these cities. I therefore join my GPC Chairman, Mr Seng Han Thong, and my fellow GPC member, Mr Arthur Fong, in asking the Government to pay more attention to the growth of this cultural sector. Singapore should also develop our human capital and culture and the arts. Like in those cities, culture and arts tourists can be an important economic sector. To grow this sector, we have to develop our hardware and software in the culture and the arts. Our hardware are the Esplanade, our museums, Chinatown, Little India and our libraries. Our software are our artists, our performers, our people who manage our hardware and their skills and know-how. We have to develop and nurture them. Another important component that we need to have are the customers, people who enjoy arts and the culture. In any country, culture and the arts need a core of local supporters to sustain and to grow them. When the sector becomes established, foreign visitors will come and enjoy our shows, museums, art galleries and libraries. Our culture and arts sector will then grow. We thus need to nurture and grow all three components. Last year, the Minister revealed the intention of the Ministry to develop the culture and arts sector.”