Tay Beng Chuan
Singapore
“Mr Speaker, Sir, we believe that so long as we could maintain and manifest this spirit of tripartism among the Government, the labour and the management, with each party giving its best, and all working with sincerity and unity, we will surely pull through these difficult times and head for a brighter future.”
“Many of them are having problems with cash flow, labour shortage and high business cost. On top of that, because of Government's policy of opening up, the various MNCs and Government-linked companies are competing with the SMEs in the limited and almost saturated market, and many of these companies may have to resort to retrenchment again…”
“Mr Deputy Speaker, I would like to clarify with the Minister for Manpower and also in response to Mr Yeo. What I said just now was that I confirmed the strong existence of Government, labour and management tripartism in Singapore. Like the labour side, the management side has also made a lot of sacrifices.”
“Yes. (In Mandarin): What I would like to say is that in this tripartite arrangement, both labour and management have made sacrifices and contributed towards the economy of Singapore. Should not the Government also chip in by making its contribution and make its presence and participation felt?”
“Sir, is the Minister aware that the abolition of second-class postage for printed materials by SingPost has resulted in a substantial increase in the postal cost for business magazines and newsletters alike, which can no longer be posted at a cheaper second-class mail?”
“In order to encourage and justify certain preserved buildings for further redevelopments, would PMB consider granting them certain incentives to further redevelop such shabby buildings, for instance, by giving greater plot ratio and greater height to encourage them to carry out redevelopment?”
The complete record
Every one of 179 lines we hold for Tay Beng Chuan, in date order, each linked to its source. Free to read, in full, without an account. Page 1 of 4.
“Mr Speaker, Sir, we believe that so long as we could maintain and manifest this spirit of tripartism among the Government, the labour and the management, with each party giving its best, and all working with sincerity and unity, we will surely pull through these difficult times and head for a brighter future. EXEMPTED BUSINESS (Motion) Resolved, That the proceedings on the debate thereunder be exempted from the provisions of Standing Order No. 1. - [Mr Wong Kan Seng]. TACKLING THE ECONOMIC DOWNTURN Debate resumed.”
“I think the workers from the various enterprises should treasure and seize this opportunity, and make full use of the measures in this package and adopt a more positive attitude in their work, to continue learning, to upgrade themselves, to re-skill themselves, and to enhance their competitiveness. In this situation of economic recession, as employees, they should be more realistic in their expectation. They should not add on to the burden of the employers, because in the present situation it is a very important thing that the businesses do survive, so that the workers are able to retain their jobs. I also hope that the employers will also make full use of the measures under this package and strengthen themselves so that they are able to ride through this stormy weather and, if necessary, the various chambers of commerce should work together with the relevant authorities so that the measures could be more effective in their implementation. The enterprises should look at the long-term perspective and take this opportunity to reposition themselves and to restructure their businesses so that they could perform better after the economy has turned around. With this package announced by the Government, apart from being grateful to the Government for understanding our difficulties, we also hope that the Government would quickly implement these measures so that they could have immediate effect. We also hope that the Government would allow these measures to be implemented over a longer period of time and to avoid withdrawing these measures the moment the economy turns around, like in the past. I think we should give the businesses some breathing space so that they will be able to recover from this crisis.”
“Mr Speaker, Sir, today the Government has announced the new off-Budget package at a total cost of $11.3 billion. We welcome this package. Prior to this, the Singapore Chinese Chamber of Commerce and Industry had urged the Government to introduce a package of no less than $10 billion, and to have more bold and efficient off-Budget measures to help the businesses tide over the difficult times. The various chambers of commerce and the Singapore Confederation of Industries and other organisations have also made similar appeals to the Government. This package announced by the Government has fully illustrated that the Government has the confidence and capability to deal with the present economic problems, and has also placed great importance on the appeals of the business community. It has shown its sincerity in wanting to help the business community get out of this crisis. In this package, there are some adjustments that have been adopted, just like it was mentioned by the previous speakers before me but, on the whole, this package is one that is praiseworthy. On behalf of the business community, I would like to express our sincere thanks to the Government. This new financial assistance package is a measure to stimulate our economy, to help our economy turn around at a faster pace. It is indeed a shot in the arm for our economy. Particularly, in this package, there are various assistance schemes. Financial assistance schemes were introduced in the hope that the employees from the various sectors - industrial and commercial sector, property sector, service sector and the SMEs - would be given more job opportunities, so as to help the unemployed find jobs.”
“Hence, the need for a Board of Trustees. We cannot have one without the other.”
“The SBF must truly represent the entire Singapore business community in the tripartism of our economy and in the international scene. It is important for the Minister to address the issues raised at the outset and make appropriate amendments to the Bill if necessary. This is to ensure that we reach a national consensus in establishing the SBF for the benefit of all in Singapore. BG George Yong-Boon Yeo: Sir, I would like to thank Mr Leong Horn Kee, Mr Ravindran and Mr Tay Beng Chuan for their very thoughtful comments about the Bill. Let us take a step back and ask ourselves why such a Bill is necessary. I agree with Mr Ravindran and Mr Tay that it is important that the SBF is a business organisation and not a Government organisation. Our objective is not to have a Government voice in it through our appointees, like in the Law Society, not at all. Our objective is really to enable the SBF to do the kind of good work which the SFCCI has done in the past and to do much more because of all the challenges that we are facing, brought about as a result of globalisation and global competition. SFCCI, within its framework, as Mr Tay Beng Chuan has pointed out, has done an excellent job. But because of the voluntary nature of the organisation, it faces certain limitations and the principal limitation is a financial limitation. And when Prime Minister Goh challenged SFCCI to restructure itself to become more effective, it came back to say, "Look, the only way is: we must have compulsory membership of larger companies so that it has got a steady flow of income." So their request to us was to legislate. Once we legislate, we have responsibility. And since the power to legislate is vested in this House, the responsibility must come back to this House.”
“The business elites and professionals have also expressed their concerns over the proposed appointment of the Board of Trustees by the Minister to oversee the work of SBF as provided under clauses 6 and 7 of the Bill. One possible interpretation of the two clauses is that it will be the Minister and the Board of Trustees appointed by him and not the general membership of the SBF or its Council, that will ultimately decide who will run the SBF and how SBF should be run. The strong Government presence within the SBF inevitably raises the question of accountability and whether the SBF will be able to function effectively and independently as a credible and representative body of the entire business community in the private sector. Many want to know what kind of persons are deemed to be fit and proper persons to serve on both the Board of Trustees and Council of the SBF. What will happen if the nominees elected by SBF members or the local ethnic and foreign chambers of commerce and industry cannot be accepted by the Minister? Could we successfully encourage the more successful and capable business elites and professionals to serve in the SBF Council with pride and commitment? Can we promote spontaneity, creativity and initiative in the SBF to expect its Council members to speak their minds in representing the specific industries without any fear and inhibitions? Can we ensure that the SBF is not perceived as another Government organisation or statutory body? Mr Deputy Speaker, Sir, I have painstakingly voiced the genuine concerns of the business community over the specific provisions of the Bill because I strongly believe that we need a strong and creditable SBF to serve as an effective apex business body for the private sector.”
“Rather, it is hoped that SBF will encourage smaller companies with less than $500,000 paid-up share capital to join any other chambers of commerce and industry and business associations so that their individual business needs can be catered to more effectively by appropriate associations within the respective industries. The Bill has clearly spelt out the payment obligations of companies affected but failed to specify the services and benefits they will enjoy as members of SBF. Many local and foreign companies question the need to compel them to be members of SBF when they are already members of existing business chambers and trade associations. These companies want to know what specific kinds of membership services the SBF will provide and whether there will be a duplication of service at their expense. There are further concerns as regards the compulsory membership to SBF and the quantum of annual contributions. Companies are worried that the SBF Council could, at the slightest excuse in the future, obtain the Minister's approval to increase the annual subscription up to the maximum of $1,500 under clause 12(1) of the Bill. In addition, many SMEs are also worried that the Minister may lower the amount of paid-up share capital under clauses 5(1) and 5(2)(b) of the Bill to compel more SMEs to be members of SBF for fund-raising purposes in the near future. This scenario may cause undue hardship to individual companies and there is no way for them to avoid payment except to wind up their business in Singapore. Companies, therefore, want to know what are the safeguards against amendment of these clauses.”
“Mr Deputy Speaker, Sir, the SFCCI has effectively been functioning as the apex body of major business chambers and associations in Singapore, successfully carrying out this function in close cooperation with its five constituent members without having to recruit direct corporate members in competition with its individual constituents. It has, over the years, accumulated a wealth of practical knowledge, networking experiences and negotiating skills in dealing with the national and international issues which are of great concern to the business community. It is, therefore, in the interests of the SBF to tap the existing human and other resources of the SFCCI and its five constituent members to perform a larger role in the New Economy. Naturally, we hope that SBF will stay with this practice and avoid competing with its constituents in recruiting corporate members directly. The proposed Bill, however, provides that every local company with a paid-up share capital of or above the amount of $500,000 shall automatically become a member of the SBF and be expected to pay an annual subscription of up to $1,500 to SBF in any calendar year. This has raised a great deal of concern among the SFCCI constituent members and the business community. The SFCCI's constituent members and many other trade associations in Singapore want to know their role in relation to the role of SBF in addressing the needs and problems of the individual companies and the specific industries. Will the SBF choose to ignore or compete with all the existing associations with a view to replacing or diluting them in representing the interests of their members?”
“Mr Deputy Speaker, Sir, I support the Bill in principle to establish the Singapore Business Federation (SBF) to take over the role of the Singapore Federation of Chambers of Commerce and Industry (SFCCI) as the apex body of the Singapore business community. Mr Deputy Speaker, Sir, the SFCCI has, since its inauguration in 1978, been depending on its five constituent members, ie, Singapore Chinese Chamber of Commerce and Industry, Singapore Confederation of Industries, Singapore Indian Chamber of Commerce and Industry, Singapore International Chamber of Commerce and Industry, and Singapore Malay Chamber of Commerce and Industry for financial support. Despite its financial constraints, it has fulfilled its role in maintaining a useful channel of communication between the business community and the Government, as well as a close working relationship with its counterparts in ASEAN and other countries. It has represented and safeguarded Singapore's interests actively and consistently in ASEAN CCI, ICC and other international fora. To be effective in its role, the SBF will require much financial resources to fund its activities, especially in economic research and overseas assignments. Since the business community will be the eventual beneficiary of these services, it is fair and reasonable for the Government to introduce this Bill to enable SBF to collect a small annual contribution from the larger and more successful companies to fund its activities. And I sincerely hope that with the stronger financial resources and continued support of the SFCCI constituent members and other business associations, the SBF could play a much more effective role in representing the interests of our business community within and outside Singapore.”
“Sir, the flat is their only tangible asset. If they are not allowed to mortgage their flats, then their businesses will be in difficulties.”
“I am in support of what Prof. Chin said just now. I would like to know whether HDB would allow shop tenants to change their trades or bring in new partners without having to increase the shop rentals to the market level. BG George Yong-Boon Yeo: Mr Speaker, Sir, I have mentioned earlier that where we can liberalise to allow for greater flexibility in the trades which retail shops want to go into, we should. Where rentals are subsidised, then the problem arises when you, in fact, transfer all or part of your lease to somebody else, whether you will still enjoy those subsidies or you will be brought up to market, is a question for HDB and MND to answer. Mr Tay could pose this question to the Minister for National Development. He has just indicated to me that he is very happy to answer it. SMALL AND MEDIUM ENTERPRISES (Impact of economic recovery) The following Question stood in the name of Mr Zulkifli Bin Baharudin - 15. To ask the Minister for Trade and Industry (a) why is it that a large number of businesses and employees especially those in the small and medium enterprises do not feel the impact of last year's economic recovery despite the robust GDP growth; and (b) is this situation likely to worsen in view of the likely slowdown in the US economy.”
“Yes. (In Mandarin): What I would like to say is that in this tripartite arrangement, both labour and management have made sacrifices and contributed towards the economy of Singapore. Should not the Government also chip in by making its contribution and make its presence and participation felt?”
“Sir, I am just trying to clarify my points.”
“Mr Deputy Speaker, I would like to clarify with the Minister for Manpower and also in response to Mr Yeo. What I said just now was that I confirmed the strong existence of Government, labour and management tripartism in Singapore. Like the labour side, the management side has also made a lot of sacrifices. As far as CPF is concerned, the employers had been contributing 20%. In many countries, this 20% is like a form of social welfare.”
“Many of them are having problems with cash flow, labour shortage and high business cost. On top of that, because of Government's policy of opening up, the various MNCs and Government-linked companies are competing with the SMEs in the limited and almost saturated market, and many of these companies may have to resort to retrenchment again or face closure. According to information released by the Ministry of Manpower, in the first eight months of this year, more than 400 employers were in default of CPF contributions amounting to some $16 billion and had to face legal action. In fact, more and more enterprises are facing difficulties and these enterprises have made a lot of contributions during the crisis. At this moment, they are required to continue making sacrifices. They are not as fortunate as the employees who can ask for pay- rise from the employers and to put pressure on the Government to force the employers to restore their CPF contributions.”
“To the employers, CPF is a very heavy monthly expenditure. The quantum of the CPF contribution rate will affect their short-term and long-term business cost. To most employers, the 20% contribution rate is too high and is not conducive to the maintenance of Singapore's long-term competitiveness. Therefore, when the Government reduced the CPF rate to 10% during the financial crisis, the business community was very grateful. However, with the Government's eagerness to raise it back to 16% by January next year, the feeling of gratitude has faded. In fact, many employers are not comfortable with the signal sent out by the Government and the labour side that they want the employers to not only raise the salaries of the workers to reward them for the sacrifices made during the crisis, but also to restore the CPF contribution rate to 20% as soon as possible. Many businesses are having difficulty coping with such pressure of escalating business cost. On top of that, the Government is rapidly raising taxes, rents and utility charges, and many businesses are beginning to doubt the Singapore Government's so-called "pro-business" strategy. Sir, from information released by MTI, our economy has recovered, and this year's growth rate can be as high as 9.5%. However, to most businesses, particularly the SMEs, they have not completely got out from the financial hardship. Many of them are still having difficulties coping with the various business cost increases. Apart from a handful of large enterprises in the electronic, chemical engineering and financial industries, most industries like construction, renovation, furniture, restaurants, watches, jewellery, garments and departmental stores, are performing poorly.”
“Mr Deputy Speaker, in principle, I support the CPF (Amendment) Bill introduced by the Minister for Manpower to further improve on the implementation of the CPF system in Singapore and to enable every Singaporean to have adequate savings for use in their old age. As a matter of fact, after years of implementation and with the continuous review and fine-tuning by the Government, the CPF system in Singapore is sound and has contributed greatly to the economic development of Singapore. It is now a model of our national policy. It is also a very important national policy that the policymakers from other countries would like to learn and emulate. From the perspective of nation-building, the CPF system is not only a compulsory national savings scheme. Its greatest effect is that it has laid a very solid foundation in our labour-management cooperation and relationship. Prior to the financial crisis, the CPF contribution rate for employers and employees was 20% on each side, totalling a high of 40% of the employee's salary. This compulsory high savings rate is a rarity in the world and it is something which other countries will find difficult to follow. If there is no strong support from labour and management, it would be extremely difficult for the Government to implement the CPF system in Singapore. Therefore, the Government should treasure this spirit and strengthen this tripartite relationship among labour, management and Government. So when adjusting the CPF contribution rates and formulating related regulations, the Government should be prudent and careful not to ignore the interest and feelings of the employers and employees. Otherwise, it will lead to some very serious consequences resulting in mutual distrust among the parties.”
“If a TCM shop sells only patent and common over-the-counter medicines it should not come under the provisions of the Bill. This is the same as in the western medicine pharmacy where the presence of in-house pharmacists is not mandatory if no prescribed medications are sold in the shop. I believe that in order to enhance and control the quality of retail TCM shops we should consider the present practice of the TCM shops. Only if we take a pragmatic approach can our policy achieve the anticipated results. If in the future they are required to have registered practitioners in the shop, they should also be given ample time to train their staff. Also, for the best result, it is important to have the cooperation of the TCM community. Mr Speaker, I support the Government's intention to establish a Traditional Chinese Medicine Practitioners Board to appraise the practitioners' qualifications and to issue certificates so as to ensure that the practitioners observe a high-level code of conduct, and to promote TCM education and training plans. From the national medical and healthcare standpoint, this Bill is rather critical as it has a profound impact on our TCM's survival and development. I would suggest that the Government invite TCM-related groups to sit on this Board to tap their expertise and experience. I believe with the cooperation of the Government and related industry, this innovative policy will achieve successful results. The development of our TCM will also attain remarkable results. Mr. Speaker, Sir, I support the Bill.”
“On the other hand, wholesalers and retailers of Chinese medicine also worry that once the law comes into force they may be obligated to hire registered TCM practitioners or pharmacists to be stationed at their shops to operate their business lawfully. Currently, most of the shops have the owners or the "old-hands" or supervisors to provide consultation and to help them dispense the correct herbs in their correct dosages as prescribed by the physicians elsewhere. As a matter of fact, there is no so-called "controlled" or "non-controlled" drugs, as far as Chinese medicine in Singapore is concerned. However, the import and retail sales of Chinese herbs are subjected to strict control by the Ministry of Health. If any ingredient harmful to human health is detected, import of the medicine will be immediately banned and the medicine or herb will be prohibited from being sold in Singapore. In other words, all Chinese herbs presently sold are uncontrolled drugs which are safe for human consumption. It is a common practice to see customers bringing their prescriptions to the TCM shop for the herbs to be dispensed. Selling the herbs and dispensing them according to the prescriptions produced by the customers are also the basic business and service available at all TCM shops. Hence, if these shops would have to hire registered or certified practitioners to run the day-to-day business, life would be extremely difficult for the TCM shop-owners. The laws should be enforced only after all the conditions are met; otherwise, the business of the existing 1,000 or so TCM shops would be severely affected and the overall medical service, health care, and even the economy would suffer a negative chain impact.”
“According to a relevant statistical report, out of three million Singaporeans, there have been more than a million visits to the various TCM hospitals and clinics every year. In addition, many people simply go directly to a TCM shop to purchase medicine over-the-counter and take it without any medical advice. Statistics from 1999 showed that the Chung Hwa Free Clinic established by the Singapore Chinese Physicians' Association in 1952 sees an average of 900 patients per day. In other words, for more than four decades, it must have treated some eight million patients. The Singapore Thong Chai Medical Institution has been receiving an average of 700 patients daily since 1867. The Public Free Clinic was opened in 1974 and has about 400 patients every day. Moreover, many charities such as the Singapore Buddhist Free Clinic, the Singapore Buddhist Lodge, and the Kwan-In Welfare Society, Singapore, together receive more than 1,000 patients daily. As to the 1900-odd Singapore TCM practitioners, many of them see more than 100 patients each in their respective clinics each day. Consequently, many people, especially those in the lower income group, are deeply concerned that the cost of TCM may be increased once it is regulated. I would suggest that the Government refrain from imposing excessive levies or unnecessary red-tapes when issuing practising certificates to the practitioners so as to avoid additional cost to them. Professional practitioners should also exercise self-discipline. Unreasonable charges may add on medical expenses of the ordinary citizens, bringing them extra burdens and compelling them to switch to western medicine or even self-medication to reduce their medical expenses. To TCM practitioners it would be more of a loss than a gain.”
“Mr Speaker, Sir, the Traditional Chinese Medicine (TCM) community in Singapore must be gratified and elated by the introduction of Traditional Chinese Medicine Practitioners Bill in Parliament today by Mr Chan Soo Sen, Parliamentary Secretary to the Minister for Health. The Government is currently strongly advocating research and development on the life sciences with a view to developing this field into another pillar of our economy. Now, through legislation, the Government has included the practice of TCM in the scope of orthodox medical and healthcare industry in Singapore, thereby according the Chinese physicians and practitioners in the TCM industry their due legal status. This approach is certainly foresighted, appropriate, and wise. Mr Speaker, Sir, the development of TCM is well established with a history of a few thousand years. The abundant knowledge of TCM is quite profound and extensive since it has taken generations to accumulate through continuous medical practice and combat against diseases. Yet, there is still room for the abundant knowledge on traditional herbal treatment and acupuncture to be further developed. As such, in addition to recognizing and regulating TCM through legislation, I would urge the Government to allocate adequate resources to train and recruit ample supply of outstanding TCM practitioners and researchers to study and develop TCM so as to make it a part of the development of the life sciences. Mr Speaker, Sir, in view of the escalating cost of western medical treatment and medicines, TCM has been providing our people with an alternative way to seek cheaper and more convenient health care service.”
“In order to encourage and justify certain preserved buildings for further redevelopments, would PMB consider granting them certain incentives to further redevelop such shabby buildings, for instance, by giving greater plot ratio and greater height to encourage them to carry out redevelopment?”
“May I ask the Minister what are the other criteria adopted by PMB, apart from the historical value, such as age and condition of the building.”
“Sir, is the Minister aware that the abolition of second-class postage for printed materials by SingPost has resulted in a substantial increase in the postal cost for business magazines and newsletters alike, which can no longer be posted at a cheaper second-class mail? The increase of such postal rates could be as high as 67% for local mail and over 100% for overseas mail. This is definitely not a pro-business approach and I wonder whether the Minister could explain this.”
“Sir, there could be excess foreign workers in certain sectors of our industries, such as the construction sector. Can the Ministry of Manpower not allow some of these excess foreign workers to be transferred to other sectors, such as the service and manufacturing sectors, to meet the shortages so that these foreign workers can also be put to better use which will benefit our economy?”
“Sir, it appears that HDB has achieved its primary role of providing affordable housing to most Singaporeans. Is it time now for HDB to reduce its role, ie, to give the private sector more opportunities to meet the increasing sophisticated housing demands of Singaporeans? Mr Mah Bow Tan: Mr Speaker, Sir, I think there is a role for both the public and the private sectors to play in housing our population. In fact, the HDB has more than achieved its purpose of creating communities where our people can live in good quality public housing. At the present moment, more than 85%, roughly 86%, of our people live in public housing. It has been discussed in both the public and private domains that a long-term target is to have more Singaporeans living in private housing. Indeed, this, I believe, is the aspiration of many Singaporeans, to be able to upgrade to private housing. In the 1991 Concept Plan, for example, there was discussion about increasing the mix of private housing vis-a-vis public housing. This is now currently under discussion in the present Concept Plan review and this is where we will be discussing the matter more extensively - URA together with members of the public and other interested parties. When that discussion is complete, I think we will have a rough idea of which direction we are heading.”
“I hope that the Ministry of Education will be resolute in putting into optimum use the rich resources to fortify the important task in this respect, and to ensure that every Singaporean child is provided with 10 years of free, compulsory and effective basic education, in order that Singapore will continue to enjoy sustained progress and prosperity. Mr Speaker, Sir, I support the Bill. 4.38 pm”
“The other key objective that the Minister for Education seeks to reinforce is to give our children a common educational experience which will help to build national identity and cohesion. This is a very noble political ideal, but it is not easy for every young child to grasp and comprehend this ideal within a short period of six years in the primary school. On this basis, I would like to reiterate that it is all the more necessary for our Compulsory Education to be fixed at 10 years. Mr Speaker, Sir, the objective of education is not confined to imparting knowledge and cultivating a sense of belonging of the people. A sound and ideal education system should embody a clear and firm goal to inculcate in our next generation the correct outlook on life, moral values and good traditional and cultural values that have been passed on from generation to generation before us. These excellent qualities will enable our children and their children to have rounded physical and spiritual development, so that they would have the strong will power to counter any undesirable influence or emerging challenges in the new age. In the absence of this objective, any form of Compulsory Education will not go to the root of the matter to effectively inspire the next generation to strive to achieve greater success in life, thereby enhancing the quality of education of our people. As such, I would like to urge the Ministry of Education to avoid putting too much emphasis on science, mathematics and technical knowledge at the expense of physical and spiritual development and moral education when formulating policies and curriculum for the primary and secondary schools. The Government intends to increase its education budget from the present $6 billion or 3.6% of GDP to $7.5 billion or 4.5% of GDP.”
“I therefore support the Bill to prevent irresponsible parents from depriving their children of the opportunity to receive formal education in school, thereby causing them to face the serious consequences later on in life when they want to go for further studies or look for employment. Mr Speaker, Sir, in his Second Reading speech, the Minister for Education pointed out the two key objectives of the Compulsory Education Bill. The first objective is to give our children a common core of knowledge which will provide a strong foundation for further education and training to prepare them for a knowledge-based economy. On this point, I feel that Compulsory Education should be for a period of 10 years rather than just six years of primary education. In the era of new economy and new technologies, in order to make a living in society, a child should have at least 10 years of education in primary and secondary schools. At the moment, the majority in our workforce has only primary school education. They have to depend on the Government and the enterprises to provide them with opportunities for re-education in order to upgrade their level of knowledge. The long-term solution is to implement 10 years of Compulsory Education to lay down a strong educational foundation for everybody, thereby generally raising his or her educational level. In this way, we would not have to spend too much time, energy and money later on to provide the remedies. On the other hand, we should also pay special attention to children of special needs, such as the handicapped children, mentally handicapped or otherwise. They should be given the opportunity to a longer period of education so that they could have more support and a stronger foundation to enable them to become self-reliant in future.”
“Sir, since time immemorial, bringing up children has always been the responsibility of the parents. There is a well-known Chinese saying that "If a child is brought up but not educated, the fault lies with the father." This has become the philosophy adopted by most parents in the upbringing of their children. Moreover, parents nowadays have a common expectation that their children would grow up to become somebody of importance and to do well in life. The future progress and prosperity of the nation depends on whether we could comprehensively raise the level and quality of the education of our people. In the interest of the people and the future of our nation, the Government has been devoting substantial energy and resources to develop our education system. Well-equipped primary and secondary schools with full facilities are built all over the island, to ensure that every child in Singapore will have the opportunity to receive a holistic formal education in comfortable school campuses. This benefits not only our own people but also attracts a lot of foreigners to try all means to send their children to Singapore to receive our primary and secondary education. Therefore, I am puzzled and saddened by the fact that some parents are still refusing to send their children to school to receive the most basic primary education. As a progressive and civilised country, we have all the conditions and responsibilities to ensure that every Singaporean child would be given the opportunity to go to school happily, like all the children in their neighbourhood, and to enjoy an enriching school life. This is a special privilege of the children of every Singapore citizen, and the happiness they are entitled to enjoy.”
“At the same time, I would also urge the Government to consider exempting non-profit making industrial and commercial associations, clan associations and other ethnic and religious bodies from the payment of income tax. These civic organisations can be said to be strong pillars of our social development. They not only cater for the needs of their respective members but also assist the Government in developing Singapore into a stable, prosperous and cohesive society. Exemption from the payment of income tax will surely encourage these organisations to work harder to raise funds and to accumulate more capital to implement longer term development and welfare scheme to make further contributions to Singapore's community development. Mr Speaker, Sir, I support the Bill.”
“These measures produced almost immediate effects in reducing the pressure of wage-increases and retrenchment. However, with the recent announcement of hefty pay rise for Ministers and senior civil servants and the rush of various Government departments to increase their staff salaries, the enterprises, especially the SMEs are once again faced with the strong pressure to raise the wages for their workers. This is even more severe than the pre-crisis level. Moreover, Government has already announced the part restoration of employers' CPF contributions early next year. This has caused anxiety and worry to many businessmen. The biggest worry among our businessmen is that the Government will raise its various taxes to pay for these hefty increases in salaries. This will result in a vicious cycle of increasing business cost, thereby causing an erosion in our regional competitiveness. If we do not take appropriate preventive measures, this will result in the loss of confidence among our potential investors, much to our detriment. Just not too long ago, a reputable international shipping company relocated its operational base to a neighbouring country in order to save cost. Therefore, once again, I would urge the Government to take into consideration the huge pressure faced by the enterprises in terms of wages and business cost, and try its best to reduce the rates of the various existing business-related taxes, and provide more incentives to assist the development of SMEs so that the business community can share the fruits of the economic recovery together with the civil servants and employees in the private sector.”
“I hope that the Finance Minister and the elite in IRAS will heed PM's valuable advice to reform our tax system in a more innovative and enlightened attitude and be in consultation with the business community, and try their best to lighten the tax burden of the enterprises, big or small, so that they could accumulate adequate capital to venture into high-risk innovative businesses or long-term large-scale investments. Sir, all along, Singapore has been labelled a "shoppers' paradise". This is mainly because Singapore is a duty-free zone. If we can go one step further to adopt a low-tax strategy in developing Singapore into a "business paradise", then we will instill more confidence in our people to start and develop their business and be better placed to attract foreign talents and capital. According to the Government's explanation, Government's implementation of the policy of high salaries for the able is for the sake of Singapore's future, mainly to attract enough talents to go into politics and to be senior Government officials. This policy has great impact on the enterprises. This is something that we cannot overlook. Generally, the people's response to this policy is that before they could see benefit coming from it, the adverse effect is already felt. From the experience that we have learnt from the Asian financial policy, we greatly appreciate the importance of our cost competitiveness as a basic ingredient to the survival and development of our businesses. We were able to tide over the Asian financial crisis simply because we were able to implement the cost-cutting package effectively in the true spirit of tripartism. The most effective part of the cost-cutting package is the cut in the employers' CPF contributions and the employees' wages.”
“As for the Government's policy of high salaries to attract the talented and hefty remuneration to retain the able, we are pleased to learn of PM Goh's circumspect and farsighted views. I hope that the Government will encourage people to continue thinking and deliberating on this matter and to propose constructive suggestions, so that people from all walks of life will actively participate in this exercise and to derive benefits from there. Mr Speaker, Sir, the Government is also very optimistic about the economic performance of Singapore in the second half of this year. The Ministry of Trade and Industry has adjusted the growth rate forecast upwards from 7.5% to 8.5%. This shows that the Government would have more tax revenue and considerable budget surplus to implement the various proposed policies and projects, unlike in the private sector where people are for lack of funds less daring to venture into new investment items. However, looking from another angle, has the Government become complacent? Is the Government too persistent in its tax policies and unwilling to reduce corporate tax, foreign workers' levy, vehicle taxes, property tax and the other taxes which affect our business costs? As the Prime Minister said, we are running into the risk of being a complacent "incumbent". Because of our past successes, we may dangerously hope that the past formula will continue to work for us in the future.”
“Mr Speaker, Sir, I support the Income Tax (Amendment) Bill introduced by the Finance Minister to give legislative effect to some of the tax reduction measures announced in this year's Budget Statement. This includes reducing corporate tax by 0.5% to 25.5% with effect from Year of Assessment 2001. The reduction of corporate tax is mainly to maintain our competitiveness and to attract foreign investment. This is a policy of great urgency. Yet the Government is delaying until the next fiscal year to implement it. People in the business community are not happy because they could not derive any immediate benefit for this reduction. From the statistics recently released by the Government through the media, the total tax revenue for the first half of this year was as much as $15.5 billion, an increase of $3 billion or 24% compared to last year. This is the result of the economic recovery and also the contributions from the enterprises and the people through payment of the various taxes. This very substantial tax revenue is taken from society. It should be used on society. As such, I am very happy with Prime Minister Goh's announcement at the National Day Rally that the Government has proposed a package of $3.2 billion to implement a series of measures relating to education, training, baby bonus, elderly fund and the CPF top-ups, etc, to develop Singapore into a more cohesive and competitive nation, and to help our people deal with the challenges in the new economy. From PM Goh's speech and the policies announced, we can see the Government's strong confidence in the future of Singapore, and its compassion and willingness to help the lower-income group and the elderly people.”
“I do not think that is a good principle because if you do that once, then in future when you set targets for them, they will say, "No, no." Just do nothing. Because if you do more, you will be penalised for doing more. So it is important to maintain the integrity of the regulatory structure and keep in place the incentives which are important for the long term. If rebates should be given, they should be given outside this system directly, which is what we have done.”
“Would the Minister explain how Singapore Power determines the basic rate of electricity tariffs? What is the profit margin for Singapore Power to charge the consumers for electricity? And in the light of these huge record profits for year 1999, can Singapore Power be asked to trim the tariffs? BG George Yong-Boon Yeo: Although the profits appear very large, in fact it is over a very big asset base, which was why the Return on Total Assets was only 8.3% even though the profits exceeded $900 million. Our target for Singapore Power is 7% to 8%, which is a reasonable return on utility type assets. How does Singapore Power set tariffs? There are two components. There are fuel prices for which the regulatory structure requires a complete pass through. In other words, Singapore Power should make no money from fluctuations in fuel oil prices. Then for the non-fuel component, for transmission cost, for grid charges, it is a regulated monopoly. So there has got to be argy-bargy. We say, all right, this is your base, and every year you are expected to show an X% increase in productivity after netting off for inflation, and we have worked out 1%. They have done better than that, principally because between the management and the unions, they managed to galvanise the workers to really review all operations in the industry and to see how they can make efficiency gains. They have done a good job. In the last two years, they increased productivity substantially and this has enabled them to increase their profit margins. Should we now, having encouraged them to increase efficiency, tax their efficiency by saying, "Look, since you have made the efficiency gain, now we claw it back and subsidise consumers."?”
“Ministers and top civil servants must strive to earn their respect, trust and confidence from the people, in order to have their continued support in policy implementation. In the true spirit of tripartism, the average businessmen and workers would expect the Ministers and top civil servants to set a good example by putting the community before self and making some personal sacrifices, in terms of time and money, in pursuit of national interests and issues. How could the Ministers and top civil servants continue to earn the respect, trust and confidence from the people if they are inclined to demand a high income comparable with those of Bill Gates or Li Kashing? Mr Speaker, Sir, businessmen and employers in private sector are currently facing upward pressure of business cost arising from the economic recovery. Any large across-the-board increase in the civil service salary may create a spiral effect, leading to runaway increases in wages, prices and charges, in both public and private sectors. This would drive up our total business cost, forcing many companies to close down or relocate elsewhere in the face of fierce competition from the regional economies. This, together with the increasing cost of living, will cause even more hardship to the low income group. The business community would therefore like to urge the Government to be more moderate in the upward salary revisions for Ministers and civil servants and consider other supplementary incentives or rewards to keep the deserving staff in the civil service.”
“Mr Speaker, Sir, I agree with the Deputy Prime Minister that we must have competitive salaries for Ministers and civil servants to maintain a competent and honest government. Such competitive salaries could be slightly higher than the average salaries of the professionals in the private sector and can be adjusted regularly according to our economic performance, productivity growth, and inflation rate in line with the recommendations of NWC. The aim is to make sure that they can lead a comfortable life financially commensurate with their official position and status during their dedicated service in public office. The business community generally understands and accepts this. But what we are concerned is that, according to the formula given by the Government, the salaries of the Ministers and top civil servants will be based on the average income of a few top earners who are the exceptionally successful bankers, accountants, engineers, lawyers, manufacturers or MNC chiefs. These top income earners, I believe, are not mere wage earners like the Ministers and top civil servants drawing a fixed salary with good job security, regardless of the ups and downs of our economic conditions and the balance of payments. They are, in fact, enterprising businessmen and risk-takers who have to pay a high price in terms of financial losses and legal obligations in the event of their business failures. The incomes these top earners earn from business success could be exceptionally high and some of them might in future earn as much as Bill Gates or Li Kashing. We therefore have to ask ourselves: Is it appropriate or realistic for the Ministers and top civil servants to expect an income comparable with such top earners in the private sector?”
“Today, we can order groceries on the Internet and it would be delivered to you the following day, eggs, vegetables, meat, whatever. It comes straight from the factories to your home, bypassing the shop, which means no rental cost, lower manpower cost. Many of the SMEs are unable to make this jump because they are staffed with older people and their children are not interested to take over the parents' businesses. As a result of which they are unable to restructure themselves. Those who restructure themselves, operate franchises, they are able to make the transformation. 1.30 pm”
“Further to my earlier question, Sir, I would like to ask the Minister this question. We do have SMEs that need unskilled workers and unskilled jobs are available. If this lower income group of people does not like to take up these jobs and yet, on the other hand, our tight rigid labour policies do not allow us to employ more foreign unskilled workers, can the Minister advise us what we should do? BG George Yong-Boon Yeo: Sir, Mr Tay has raised a question for which there is no easy answer. Ideally, of course, we should just open the doors and bring in the foreign workers and all SMEs will be happy. But if we bring in foreign workers in unlimited numbers, then the wages of Singaporeans at the bottom will be very depressed. That may be good for those who are high income earners because then they can get many services on the cheap. But is it good for Singapore? We already have, out of a population of four million, one million who are non-citizens. How many more can we accommodate in our midst who are not one of us? So there has got to be a limit. And within this limit, we have got to ask ourselves how we should allocate the numbers between those who work in the high-tech, financial, pharmaceutical, petrochemical and wafer fab sectors and those who work in coffee shops and restaurants. MTI's policy has always been that where we can upgrade we must try to upgrade, mechanise, automate, sub-contract. In the knowledge economy, more and more middlemen would be bypassed. Should we slow down this process or should we accelerate it? If we do not facilitate this transformation, the difficulties would be more difficult for us further downstream. It is better that we go with the flow.”
“Some restructuring is required but, at the same time, we recognise that in the SME sector there is a need for a greater allocation of foreign workers and we review these allocations all the time, and feedback from SMEs, from Mr Tay Beng Chuan and from the various business chambers and associations will be very helpful to the Government Ministries involved.”
“Sir, will the Government conduct a special recruitment programme in conjunction with the employers' group to persuade this 10% low-income group to work for these unskilled industries? However, if these people are unwilling to do unskilled work, then would the Government reconsider the rigid rules which apply to foreign labour, so that our SMEs will be able to meet their immediate demands and take care of their requirements? BG George Yong-Boon Yeo: Sir, I thank Mr Tay for raising this point. It is an important point because the feedback from industries is that the labour market is tightening very rapidly with the end of the economic recession. We have, on the one hand, a group of unemployed who cannot seem to find employment and, on the other hand, a great demand for workers including unskilled workers. Part of the reason is because some of those who are unemployed are deterred by having to work third shifts or having to travel further to work. And the fact that they are able to express these preferences is because one way or another, they are able to make do with contributions from family members or from their own savings. If the hardship were very acute, then even third shift work or even work in Tuas would be snapped up. Mr Tay's other question is one which concerns us more in Singapore. It is the rapidly tightening labour market and how we should adjust our manpower policies in order to feed the growth that is in our economy. I do not think that working the old method is the right way to go, particularly for SMEs. Because of the Internet and e-commerce, middlemen are being weeded out in many industry sectors. So those who require foreign workers to do work the old way may find that a difficult approach to take.”
“Sir, I wish to supplement what my fellow NMPs said. As a matter of fact, I wish to state that there are sufficient unskilled workers available in Singapore. There are many sectors of industries like servicing, manufacturing, etc, which are in urgent need of unskilled workers. We have this 10% ---”
“I would also like to take this opportunity to suggest that HDB and town councils seriously look into the common aspirations and interests of many HDB flat dwellers who want to beautify their monotonous high-rise flats with colourful plants and flowers. Besides education and enforcement action, can HDB and town councils also pool their efforts and resources together to design and build proper and attractive flower boxes with safety features to replace all the existing movable or hanging flower pots which can be potential killer litter in HDB estates? I am sure such a special or general upgrading works are worth pursuing, as we all share a common aspiration to make every HDB estate a safe, clean and green living environment that also makes Singapore a garden city. Mr Speaker, Sir, with my sincere hopes and appeals, I support the motion to pass this Bill in this House.”
“Instead of trying to create more rules and regulations to plug loopholes in its administration, can HDB officers use their creative minds to actively revise and relax more of its restrictive and outdated rules and regulations to make every HDB estate a more conducive and attractive place to live and to do business. For example, can HDB revise its parking rules and charges to make visiting friends and relatives in HDB estates not always an inconvenient and costly affair? Can HDB allow shopowners or tenants to use or sublet the underutilised dwelling units in their shop premises for commercial purposes? Can HDB allow its lessees and tenants to build proper flower boxes or install suitable facilities with safety features to grow plants at balconies or corridors of their HDB flats? The proposed amendments to the Housing and Development Act will also allow the Minister to approve such upgrading works as additional lifts, especially upgrading works for HDB apartment blocks if more than 75% of the flat owners affected supported the proposal. Such special upgrading works may, in some cases, give rise to the need for HDB to compulsorily acquire certain units of flats for the intended purpose. Would the Minister ensure that in such a situation, the flat owners affected would be given adequate compensation as well as alternative accommodation within the same block or the same estate before approving the upgrading works? Yesterday, the House expressed a great deal of concern over the killer litter problem in HDB estates, and suggested various ways, including public education and enforcement action, to address it.”
“Mr Speaker, Sir, we can make HDB estates more luxurious with continued improvements and upgrading works. But this will not make them as attractive as the private housing estates as long as HDB continues to maintain and enforce a standard set of very rigid, restrictive and outdated covenants and rules which stifle the creativity, resourcefulness and initiatives of its lessees and the tenants at home or work. With this thought in mind, I am particularly pleased to note that HDB is now taking such a big and bold step to remove the restrictive covenants in its standard list of instruments which will impede the reasonable use of HDB flats as a home office for any commercial purpose. This is certainly the most welcome move for both our young and old enterprising HDB flat dwellers who aspire to have their business start-ups established in their HDB home for good reasons. Singapore is well-known for its over-regulation because civil servants, like HDB officers, are good in making rules and regulations to ensure law and order, especially in HDB estates. This might be important in our early days of nation-building and community development. But such regulatory approach, if carried out to the extreme in the modern day, would have the adverse effect of making life increasingly difficult and stressful in Singapore. This is definitely detrimental to our current effort of attracting and nurturing talents for the new economy. To make the estates more attractive, HDB has challenged its planners and architects to design flats to rival those of condominiums. But I want to pose yet another challenge to HDB.”
“I suggest that the Ministry of Education give substantial assistance in sending more good Malay teachers to conduct such courses in more schools so that more students can learn Malay, thereby strengthening their understanding of the Malay language and culture, and laying a stronger foundation for the promotion of our social harmony and friendly ties with our neighbouring countries.”
“Consequently, when they leave school, the standard of their mother tongue proficiency will be so inadequate that it will be rendered useless. 5.45 pm Sir, according to feedback from the business community, generally speaking, there is plenty of room for improvement in the ability to write Chinese and English for our university graduates. Therefore, the Ministry of Education should look at this matter squarely, and conduct a thorough review to improve our bilingual policy. This is to ensure that graduates of our primary and secondary schools and tertiary institutions have enough proficiency in both English and their mother tongue to prepare for their future employment, and do not treat the passing of the requisite examination as the sole purpose of learning these languages. The Minister has also announced that we must use the teaching of the mother tongue to inculcate understanding of the students' own mother tongue culture and heritage, and to enhance their moral values as well as a sense of belonging to society and the nation. But for those who have opted for the mother tongue (B) paper, because of the constraint in the contents of their lessons, they may lose the opportunity of learning the moral values through the learning of mother tongue. I do not know whether the Ministry of Education has any remedy for this. Sir, last year on 19th March, at the sitting of Parliament, I proposed that the Ministry of Education should introduce Malay language as a non-examination subject in primary and secondary schools. I am glad to know that the Chinese High School and Nanyang Girls' High School have already introduced such lessons.”
“Sir, in October last year, the Ministry of Education announced that it was retraining more than 8,000 English language teachers on the teaching of English Grammar and conversational skills. Many people cannot help asking what has gone wrong with our education system that so many English language teachers have to be retrained. I hope that by doing so, the Ministry of Education will not deal a heavy blow on the morale of our teachers, and I sincerely hope that the parents will not lose their confidence in the teachers. Compared to 10 years ago, our primary and secondary students are consistently scoring better results in English. This is mainly attributable to the efforts of the teachers in preparing the students for the examinations. But now, they are sent back to the classroom for retraining. I think, basically, the problem does not lie with the teachers, but rather it was because the Ministry of Education had failed to take into consideration the expectation of the public and private sectors on the school graduates. As such, I would like to appeal to MOE to touch base with the various Government agencies and the business community to establish the actual requirement of the employers on the proficiency level of the graduates in conversational and written English, so as to set the appropriate and relevant standard for passing, for the teachers and students to follow. Under the bilingual education policy, in order for our students to spend more time and energy to learn English, the learning of the mother tongue is lowered to that of second language or even to a "B" standard. Psychologically, they would not be able to put in full efforts to learn the mother tongue well.”