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 3 of 4.
“To put it simply, we aim to have the entire people united as one (quanmin heyi) to achieve a prosperous and peaceful Singapore. A cohesive family is the foundation stone on which the nation is built. To put it simply, we must have strong families as our foundation. Family is not only the foundation of the country but also a strong spiritual pillar for the individual. Whenever we are faced with a crisis or in difficulty, the first thing that we think of is the home, the family. Therefore, the family or home is not only our residence but also our shelter and a place for us to rest. We also frequently say that "When a family is in harmony, everything can be done well". That is to say, the family is the core on which the bonding is maintained. It is the basis for our survival. It is also the motivating force for our success. When we are faced with all the future challenges and changes in circumstances, we must maintain a strong family as our foundation (baojia guben), as our unshakeable conviction to enhance cohesion in attaining our ideal goals. However, opportunities do not come from thin air. Rather, they are the result of tons of hard work. There is a famous Hokkien saying to the effect that we must slog it out in order to win. That is a successful motto for many business people. But if you want to attain the ideal state in which everyone is given the opportunities in the highly competitive 21st century, depending only on individual efforts is not enough. As the Prime Minister has said, we want to turn Singapore into a combination of the individuals, the human resource, the thinking and other resources to turn Singapore into an international metropolis. In other words, what we want is a dynamic first-class and creative city of the world.”
“Mr Deputy Speaker, Sir, what the Prime Minister said just now was very touching indeed. I agree wholeheartedly with what he has said. The five ideas of the Singapore 21 Vision are great ideas that will guide us into the 21st century with a strategic direction. They represent the values of the individual, the family, society and the country. It is like a compass that will guide our people of different races to work together to give of their best, to go through weal and woe to build good homes for Singaporeans. To do this, we must try to put these five ideas into simple language to inculcate in the minds of our people so that we can all remember these ideals and translate them into action and reality. Looking at the five ideas of S21 Vision, I would suggest 20 simple Chinese characters to summarise them and highlight the common goals that we have worked out for ourselves and to inspire every citizen to participate in our efforts to realize these ideas. These Chinese characters are: quanmin heyi, baojia guben, zhongzhi chengcheng, zhanchi weiguo, gongquang yuanjin, meaning "the entire people united as one, maintain a strong family as a foundation, unity is strength, spread our wings for the nation, together we create our vision." It is often said that "Heaven has its purpose for every person who is born on earth". That is to say, every one is a talent. To realize the much-esteemed personal values, we must persevere in continuously upgrading the intellectual and educational level of our people so that every citizen, irrespective of race or station in life, will give full play to his talent and give of his best to contribute to society and the nation.”
“I suggest that the Ministry conduct non-examination courses on ethnic languages and cultures in the primary and secondary schools as an optional subject or an extra-curricular activity. This will provide our students with better understanding of the other ethnic communities and improve communications among them. This is especially so for the Malay language. It is not only one of our official languages, but also the main working language of our immediate neighbours. Therefore, encouraging our people to learn Malay and understand the culture of our fellow citizens not only helps to enhance our social cohesiveness but is also an important way to promote friendly dealings with and better understanding of our people and the people of our neighbouring countries. Sir, I hope that the Ministry of Education will give the proposal of offering the option of CL `B' a further and deeper re-thinking. Make an overall evaluation of the pros and cons, so as not to commit the mistake of "trying to save a little only to lose a lot". At the same time, please give my suggestion of having non-examination courses on ethnic languages and culture some serious consideration. The Chairman: I would like to remind Members that "guillotine" time is at 1.55 pm and I urge them to be very brief in their speeches. Mr Rai.”
“Use more counselling and flexible methods of teaching, to enable them to master Chinese by following the prescribed order according to the curriculum indicators, thereby enhancing their interest in the learning of the Chinese language and literature. I fully agree with the Government's decision to set the university admission criteria based on a point system, and students who fail to obtain the minimum pass of a D7 in their mother tongue will be granted a provisional admission, provided the said students enrol for a one-month mother tongue course during the University Year I vacation and pass the prescribed examination thereof. I firmly believe that if the university can continue to implement this norm of strengthening the students' learning of their mother tongue, ensure that the students have adequate time to learn their mother tongue, and adopt flexible teaching methods, it can prevent the students from alienating themselves from the Chinese mainstream, and at the same time enable the students to master their Chinese in an environment conducive to learning. Sir, today we are able to live harmoniously with our brothers of various races, and together contribute to the development of our nation. This can be attributed to the mutual understanding and tolerance among the various ethnic communities. Therefore, we must continue to preserve and uphold the deep bonding among us and promote mutual cultural exchanges among ourselves. In view of this, apart from encouraging our people to learn their own mother tongue, we should also encourage everyone to learn the language and culture of the other races.”
“This shows that the vast majority of students do not face too much of an obstacle in learning Chinese. We cannot help asking, "Why do we go through all the trouble and mobilize so much resources to set up the CL `B' course just to cater for this small group of 200-odd students?" Some people may even say that the Government is "making a mountain out of a mole-hill". Moreover, the failure of these students may well be due to some complex factors, involving the learning environment and the attitude of the students. This is a problem that cannot be resolved just by lowering the standard of the curriculum. Of course, we must not neglect the plight of this small group of students and their future. But looking at it from a wider perspective, to formulate a new course will entail a huge amount of manpower, financial and material resources. Will this be in keeping with practical economic efficiency? Moreover, under our present secondary education system, the Chinese language course has already been split into "Higher Chinese" and "Ordinary Chinese" to suit the progress of learning of the students. Now, we are going to have yet another lower-standard CL `B'. Will this not lead to uneven standards in the Chinese language in our schools? Besides, will the students who opt to take CL `B' not become "extra-territorial beings" and be alienated from the present mainstream Chinese? What is more worrying is that by the use of this "downgrading" method to help the students learn their Chinese, the effect may well be counter-productive. The end-result is: students will avoid learning their mother tongue, become opportunistic and take the easy way out. To students who are weak in Chinese, we must suit the medicine to the illness, and give them ample opportunities of study and immersion.”
“Sir, last year, the Government announced a new policy on the teaching of Chinese Language. Since then, there have been numerous debates, and both educators and laymen have expressed keen interest on the subject. Judging from the new policy promulgated, the Government's approach is very pragmatic for it not only concerns itself with the nurturing of Chinese elite, but also takes heed of the need for Chinese language to be learnt by everybody, and to create an environment conducive to the learning and application of Chinese. In this regard, the policy has laid down a solid foundation. However, I would like to raise a question on the CL `B' course which many people are concerned with. In Singapore, there are indeed some students who have found the learning of Chinese an uphill struggle because of certain special background and lack of conducive conditions, and have therefore lost interest. Some people are even worried that this will affect the future prospects of these students. In order to help these students, the Government has devised an easier CL `B' course. However, in reply to my question on 11th February, the Minister for Education stated categorically that no student will be deprived of a place in the university just because of poor performance in his mother tongue. Students who have failed their mother tongue were not successful in gaining admission to the university because their results in the other subjects were also not up to the required standard. Furthermore, relevant figures published by the Ministry of Education in the newspapers on 1st February showed that only 1% of the `O' level and `A' level students failed in Chinese. According to the Ministry, only 260 students out of last year's cohort of 26,000 failed their Chinese papers.”
“I would suggest that the income ceiling be raised so that workers with income of between $1,000 and $2,000 can also benefit from the scheme. Sir, the traditional distinction of workers in terms of blue-collar work and white-collar work is already obsolete now. In future, the distinction between brain work and brawn work will be very blurred. The nature of work in the new knowledge-based economy is such that one can hardly tell whether it involves brain or brawn. Any worker from the administrative staff to the operators at the production line are all valuable assets to the company. They are all part of our precious human resources, and they should be given equal opportunities for skills upgrading. Therefore, I would suggest that the Ministry of Manpower revise, amend and expand the regulations of the Skills Development Fund, so that junior and middle management staff can also benefit from this training scheme to enhance their professional capability. Sir, MOM is a Government agency coordinating labour-management relations. While looking after the labour side, it must not overlook the management side as well. I would suggest that while the Government is giving more money to NTUC for skills development, they should also help to finance the business community, agencies or associations in the conduct of training courses for their staff. This will go a long way to enhancing better cooperative relations among labour, management and the Government.”
“Sir, as we all know, the only way for Singapore to survive in the 21st century is to build up a world class knowledge-based economy. In order to attain this objective, we need to build our knowledge-based infrastructure. To do this, the key is to build up a high quality workforce. There is a Chinese saying, "It takes 10 years to grow a tree but it takes 100 years to develop a man." If we want to build up a knowledge-based workforce, we have first of all to go by education. That is the reason why our Government leaders have been emphasising again and again the importance of lifelong learning and lifelong education. Therefore, I would suggest that the Government use actual financial assistance or liberal tax incentives to encourage workers of all grades, young or old, to take part in all kinds of educational and training courses for self-enhancement, to attain the state of lifelong learning. At the moment, the Government allows the use of CPF savings to invest in properties and shares under the Asset Enhancement Scheme. Enhancement of human resources is very important, even more important than asset enhancement. Serious consideration should therefore be given to some "human assets enhancement scheme" to add value to our human assets. Sir, I would like to take this opportunity to speak on the Skills Development Fund (SDF). Under the present scheme, only workers whose income is below $1,000 and whose educational level is below `A' level can benefit from the scheme. This standard was fixed quite sometime ago. Now, our Singapore workers' income and educational level have been raised significantly over the years. The scheme should be adjusted accordingly.”
“For instance, the Regionalisation Finance Scheme provides loans to companies for the acquisition of fixed assets overseas. This scheme would not be applicable to the trading community. Another scheme, the Business Development Scheme, apparently applies only to missions or projects undertaken on a group basis endorsed by the PSB. Although we appreciate the efforts to expand the Trade Development Incentive scheme to assist companies in setting up overseas marketing office and other business development programmes, such as branding, franchising and licensing, these schemes clearly benefit only those companies which have established their contacts abroad and are ready to venture into the next stage of business development. These preclude the SMEs which wish to explore new markets who neither possess the financial means nor the right contacts to do so. Sir, I do hope that the blueprint for Singapore to develop world-class SMEs in the next century will scrutinise the requirements of SMEs and design pragmatic schemes to bring them into that league.”
“Companies having business dealings with United States and Europe, for instance, remain largely unaffected from the financial woes. There are nascent opportunities in other emerging markets around the world which should be explored. While such opportunities are being identified through the many trade missions which the Trade Development Board intends to launch this year to such markets, such as Middle East, Mexico, Central and Eastern Europe and South Asia, we believe these may still be beyond the means of the majority of SMEs. We would like to impress upon the Ministry the need to design a fresh set of pragmatic initiatives or schemes to facilitate SMEs in making that critical step towards new markets. Extraordinary circumstances created by this economic crisis demand creative solutions to buffer the negative effects. Some of the suggestions that our SMEs hope that the Ministry could consider implementing to facilitate their entry into ventures in the new markets include: (1) Providing more Government subsidies for participation in international missions, fairs and exhibitions; (2) Extending more assistance to SMEs through the overseas TDB network, like making introductions to potential business partners and helping them with the cultural and language barriers where necessary; (3) Providing more financial and tax incentives for their overseas marketing efforts; and (4) Implementing an export credit guarantee scheme for SMEs, similar to that extended to SMEs in South Korea. Though there are currently a number of assistance schemes which are open to local enterprises, these schemes will benefit companies which are already well-established and have the necessary overseas connections.”
“Sir, the Finance Minister in his Budget Statement said that "our approach to current economic problems is to monitor developments closely and respond with measures to maintain the competitiveness of our economy relative to our export competitors." I think this is very important and I wish to know if the Ministry intends to put in place a mechanism to monitor the impact of the cost cutting measures, gauge their effectiveness, fine-tune their implementation and ensure that the desired effect of those measures is filtered throughout all sectors of the economy. It is quite alarming to learn that NTUC Secretary-General, Mr Lim Boon Heng, expects 1999 will see 20,000 people being retrenched. If, despite the Government's best efforts to revive the economy, jobs continue to be lost due to lack of external demand, loss of competitiveness and cash flow problems, will there be any contingency measures put in place this year to minimise unemployment? On the part of SMEs, many of them are now doing their best to overcome the economic difficulties in a positive way. One positive finding that emerged from the pre-Budget survey on the needs of local enterprises which Singapore Chinese Chamber of Commerce and Industry conducted in February was the keen interest of SMEs to make incursions into new and emerging markets. They are keen to diversify their market base and source for new products. Obviously, the Asian economic crisis has awakened the need for SMEs in Singapore, formerly content with trading or doing businesses with a few traditional markets, to spread the net wider and broaden their markets. Indeed, many SMEs are now acutely aware that relying on a few core markets exposes themselves to undue risks.”
“Most Singaporeans have their own apartments, and more often than not, these residential units above the shophouses are not occupied. If we could allow these units to be used for some form of business or commercial activities, they can be put to good use, and at the same time it will help to reduce business cost for the shopkeepers.”
“Rent is a burden that the businessman cannot run away with, so we have to reduce it to a reasonably low level, otherwise they will have difficulties making ends meet and the effectiveness of these cost-cutting measures will be in doubt. In view of that, I hope that the Government would set up an independent committee to oversee adjustments to rents for industrial land and factory space to ensure HDB and the JTC would abide by the principles set down by the cost-cutting package, thereby reducing their rents to the level of the early 1990s. As for difficulties faced by the tenants, I hope that the relevant authorities would give them the necessary assistance and not to rub salt into their wounds by imposing an interest rate of as high as 8.5% for arrears in rent. I think we should reduce the rent to a reasonable level, and help the businesses which are in trouble. Perhaps for those who simply cannot carry on with their business, the authorities should consider taking back the land or factory space at a reasonable price and then rent it out to other parties so that the land could be recycled and put to good use. Land is scarce in Singapore and it is an important resource relied upon by the businessmen for their business operations. In fact, in its report issued last year, the CSC has also emphasized on the optimal use of our land to make sure that the land would be rented out at a reasonable and competitive rate so that we can have a world-class infrastructure on our land. I feel that the available land in our HDB estates should be put to full use by allowing some suitable economic and business activities to be carried out in the common areas. I also hope that the Government would allow the residential units above the shophouses to be used for business activities too.”
“I know of a company which has leased some industrial land from HDB in Defu Industrial Estate on a 30-year lease in order to manufacture light industrial products. According to the terms stipulated by HDB, the land rent would be increased annually by 7.6% from 1990. By 1999, the rent per square foot has been raised to $59.91, a total increase of 71.2%. According to the CSC recommendations, the rent should be adjusted to the level of 1990, that is, at $35 per square foot. But in the new lease agreement with HDB, the rent is reduced by only 10% to $53.90 per square foot and thereafter it would have to be raised annually by 4%. According to feedback from people in the trade, the market rental value of industrial premises (or factory space) in this area has already dropped from its peak of $2.50 per square foot to about $0.80 per square foot, which is a drop of 68%. Even then, it is difficult to get tenants. Since the market value has gone down by such a big scale, why is it that the HDB is only providing for a 10% reduction in the land rent? How can we convince the people that the Government is determined to adjust the rent of industrial land to the level of the early 1990s? The business community has suffered a great impact from this crisis and apart from trying to solve all the problems in the operation, they have to find ways and means to upgrade themselves to enhance their competitiveness. What they need is a favourable business environment provided by the Government for them to set up their business, to develop their business so as to contribute to our economic and social development.”
“Sir, to the industrial and commercial sector, the problem of land rent has all along been a big headache. It is one of the biggest items in their business cost. Fortunately, in the cost cutting package announced last November, the Government has attached great importance to this matter. It has also agreed with the recommendation of the Committee on Singapore's Competitiveness (CSC) that the two biggest landlords, namely, the JTC and HDB, should also adopt the rent reduction measures, particularly to reduce the rents of industrial land and factories substantially down to the level of the early 1990s. The industrial and commercial sector is of course very grateful to the Government for its care and concern for the people. However, many people in the trade are sceptical about the implementation of these measures. The main concern is while the Government has agreed to reduce the rent substantially to that of the level of the early 1990s, the tenants of HDB are still required to enter into a lease agreement with the authorities on the "posted rent" and a pre-determined rate of increase. The question is: what is the basis for the fixing of this posted rate, and whether it is in line with the market condition or based on other factors? By right, if the Government is determined to reduce the rents to the level of the early 1990s to ensure our competitiveness, then the terms in the new lease agreement should be based on the level of the 1990s. But I feel the present lease agreements are still being entered into based on the recent years' level, and the authorities have no intention of reducing the rents to the level of the early 1990s.”
“Therefore, I would like to ask the Government whether there are any statistics to show how many people in Singapore today are neither bankrupts nor listed in the unemployment list, but are actually jobless. How many such families are there in Singapore? I feel that the Government should look at this problem squarely. It must seriously consider the plight of these families and help them as far as possible. Otherwise, very soon, a very serious social problem may soon emerge. If we cannot help the entrepreneurs at a time when they are not doing well, we should give them a chance to be "born again". Otherwise, how could we be able to encourage more Singaporeans to take on greater risks of venturing overseas? How are we going to pave the way for our knowledge-based economy? I think this is a critical question that the Government cannot ignore and must find a solution to it as early as possible. Mr Speaker, Sir, I support the motion in the name of the Finance Minister.”
“5 billion cost-cutting package would come into full play in the second half of this year and it was envisaged that our economy at that time would see some growth. Mr Speaker, Sir, the business community understands that this deficit budget and last year's cost-cutting package will take some time before there will be effects on our economic system. While waiting for these measures to bring about the desired effects to our economy, the business community has refrained from making too many requests, less we be accused of showing no understanding of the times. However, the Government must not ignore the plight of our small and medium enterprises and leave them to swim or sink by themselves. Mr Speaker, Sir, I have a friend who is a small entrepreneur with investments in the neighbouring countries. Because of the regional factors well known to all of us, he had no choice but to wind up his overseas business and return to Singapore. Upon his return, he wanted to lower his standard of living, but he cannot get any buyer for his house. He tried to look for a job, but he could not secure any. His wife who had not been working for many years wanted to come out and work to help support the family, but nobody was willing to employ her, because the type of industry which she was formerly working in had been phased out because of economic restructuring. This friend of mine has never been an employee. His wife was a salaried worker who resigned from her job many years ago. Now both husband and wife are unemployed. They have no business to do either. I think there are many such families in Singapore at the moment.”
“Mr Speaker, Sir, more than 2,000 years ago, during the spring and autumn warring states period, the great military strategist, Sun Tzu, had already proposed that ever-winning strategic idea of building up a superior army while not at war. That is to say, at peace time, we must strengthen our defence to ensure that our defence strength will always be superior to any potential enemy. Realizing that their armies are not as powerful as ours, the potential enemies will not dare to act rashly and will leave us alone. Only in this way, can we enjoy true peace. In other words, by maintaining a large defence expenditure, it does not imply that Singapore is a nation which is wantonly engaging in military aggression. On the contrary, we are just practising Sun Tzu's ever-winning theory of "building up a superior army while not at war". Our purpose is to provide security to ourselves and to maintain peace and security in this region and the whole world. In short, I support this deficit budget to pay for sustained development of the various ministries, including Defence, Education, Health, Trade and Industry, etc. According to media reports, Prime Minister Goh Chok Tong pointed out in Melbourne last Friday that even if we continued to run into a budget deficit for the next one or two years, the surpluses accumulated by this current Government would still be adequate to support our necessary national development programmes, and there would be no need to dip into the reserves accumulated by the previous governments. As such, we need not be overly concerned with the deficit of $5.1 billion in this year's budget. The Prime Minister also said that if the external factors remained unchanged, the effect of this year's budget and last November's $10.”
“1 billion in order to bring about a balanced budget. Obviously, this is not feasible. The consequences will only be lower quality of social and community services, weaker defence and security, and slower development in our economic infrastructure, and our international competitiveness will be affected. Therefore, I feel that formulating a deficit budget is a very wise decision by the Finance Minister. On the one hand, it looks after our people who are facing difficulties, to solve their short-term problems; on the other hand, all the various development plans can continue to be implemented to look after the long-term interest of our people. Some people hold the view that many countries in this region are facing economic difficulties and have cut down substantially on defence expenditure in order to squeeze more money to finance other development projects. They advocate that Singapore should also do the same and cut down substantially on defence expenditure. I do not agree with such a view. In fact, I feel more comfortable that the budget has allocated 32% of our total expenditure for defence and security because, after all, security is of utmost importance. If we have no security for safety, then all our achievements accumulated through generations of toilsome hard work may be wiped out overnight at any time. Some people are concerned that at this time when the other countries in this region are cutting down on their defence spending, Singapore is increasing it, and we may give others the wrong impression that we are a bellicose. I feel such a view is 100% wrong.”
“Mr Speaker, Sir, there are two features in the 1999 Budget presented by Finance Minister Dr Richard Hu last week which I think are noteworthy and praiseworthy. Firstly, this is Singapore's first deficit budget in many years, and the deficit is some $5.1 billion, equivalent to 3.5% of our GDP. Secondly, in order to further strengthen the long-term growth potential of our economy, and to encourage the development of a knowledge-based economy, the Government has provided for $13.94 billion as development expenditure for the various ministries. The development estimate this year has grown by 9.8% as compared to last year. This is the highest development estimate in the history of Singapore. I remember, last year, when I spoke in this House, I made a plea on behalf of the business community to the Finance Minister for a balanced budget, rather than emphasising how much surplus we have in our budget each year. I am pleasantly surprised that in the Budget for FY 1999, the Finance Minister has gone a step further than what I asked for - he has adopted a deficit budget rescue strategy for our economy. On behalf of the business community, I would like to say we welcome this decision of the Government. Considering our economic foundation and strength, even in this economic downturn, it is still not impossible for us to maintain a balanced budget, but there is a price to pay. In this year's budget, there is a $5.1 billion deficit. This means, if the Government wants to maintain a balanced budget, it would have to cut down its expenditure by $5.1 billion. In other words, the Government has to cut down spending on social and community development (39%), security and defence (32%), economic infrastructure development (19%) and other expenditures to save $5.”
“In this connection, I urge the Ministry of the Environment to review this policy and try to adopt more flexible measures to enable the shopkeepers or hawkers to provide instantly roasted steaming-hot barbecued pork to the consumers during this festive season, so that we may still be able to salvage some moments of joy and happiness with the aroma generated by the roasting of barbecued pork, as we embark on another difficult year. Finally, let me take this opportunity to wish Mr Speaker and all Members of this House: Gong Xi Fa Cai, and a progressive new year. Mr Speaker, Sir, I support the Bill.”
“If it is said that it has something to do with health problems, such as food poisoning or spreading of infectious diseases, then I would like to ask the Ministry to provide the relevant data to show how many people had actually suffered from food poisoning or contacted certain infectious disease by eating barbecued pork roasted at the roadside. If the act of roasting is really causing serious problems to our environment and hygiene, then why does the Ministry not take action against the other acts of roasting, such as the roasting of chicken-wings, suckling pigs, otak, satay, etc? Why are people still allowed to hold barbecue parties at the East Coast Park, and the holiday chalets at Changi Village and Sentosa? Mr Speaker, Sir, we often say we want to preserve our traditions. Yet, we are breaking our traditions all the time. Like the tossing of yu sheng or raw fish, the roasting of bak kua is very much a part of the custom when the Chinese community celebrates the Lunar New Year in Singapore. It is a tradition which is very much alive. We should cherish such living tradition, rather than killing the tradition now and then trying to restore it a few years later for any intent or purpose. It is always difficult to resurrect a dead tradition. I believe this is why some learned people are strenuously opposing the Tourism Board's plan to transform Kreta Ayer into a tourist attraction which is neither fish nor fowl. I have side-tracked. Let me return to the subject. I feel that if the Ministry of the Environment does not have very good reasons, then there is actually no need to ban the barbecued pork sellers from roasting their pork in public.”
“The point is, during the Lunar New Year festive season this year, we may still be able to go to Chinatown to shop for New Year goodies, and bring our family to the River Hong Bao festival to soak in the spring in the air, but unfortunately because of a new order by the Ministry of the Environment, with effect from this year, whether at Chinatown or at the River Hong Bao festival, we will not be able to buy freshly roasted bak kua or barbecued pork anymore. Mr Speaker, Sir, I would like to know what is the rationale of the Ministry to ban the roasting of barbecued pork. Is the roasting of barbecued pork causing environmental pollution? Or are there other reasons? Singapore is a society which is particular about presenting facts in the proper perspective. Whenever a Government department promulgates any rules or policies, particularly those that have direct impact on the daily lives of the people, these policies will have to be clearly explained to the people, lest they be misunderstood as acts to disturb the people. In other words, assuming that the Ministry bans the roasting of barbecued pork on the ground of environmental pollution, then I would like to know, among the problems of air pollution in Singapore, what percentage is caused by the roasting of barbecued pork. Or, more specifically, what is the air pollution index caused by roasting of barbecued pork? If the roasting of barbecued pork does not cause air pollution, or the extent of pollution is negligible, then why is the Ministry banning the roasting of barbecued pork?”
“Mr Speaker, Sir, in principle, I support this Bill to control pollution to the environment, as it will further improve our environment and hygiene, to the benefit of our people. The problem is this Bill seems to give too wide and too much power to the enforcement officers of the Ministry of the Environment. People in the trade are worried that the Ministry officials may nit-pick and enforce these pollution prevention and public health regulations in an inhumane manner. If that is the case, then the traders will have to spend a lot of time and money just to comply with the various rules and regulations, and live in constant fear of being booked, fined and even imprisoned for infringement against any of these rules. Faced with escalating business cost and intense competition from the neighbouring countries, the traders often find it difficult to put up with the complicated rules and regulations of the various Government departments. They hesitate to develop their business plans and even lose their original spirit of entrepreneurship. This is indeed regrettable! I therefore hope that the Ministry of the Environment will be more considerate to the traders when they enforce the various regulations. They should not neglect the possible adverse effect to Singapore's effort to enhance our competitiveness and to develop a creative business environment. Mr Speaker, Sir, Lunar New Year is barely a week away. For reasons well known to all of us, the market this year is not so good, and the coming year may well be another difficult year for us. However, whether it is a good year or a bad year, in accordance with Chinese customs and tradition, we still have to create a flourishing and bustling festive atmosphere for the New Year.”
“The employees will save a lot of time travelling to and from office. Of course, LTA may lose some revenue as the number of vehicles passing through the ERP gantry points during peak hours will be significantly reduced. In any event, if Singapore is really going to leverage on the cutting edge of information technology, the most important thing is to change from our outdated industrial age business administration concept to fit into the various policies based on the latest information technology. The seventh strategy is to optimise resource management. Yes, we agree that we should make full use of our land resources and to have better management of our water resources. We support the recommendation to set up a committee or agency to look into our land distribution and pricing policy. We should also proceed to have the desalination plant as planned so that we can make full use of the abundant water resources from the ocean around us. I suggest that the relevant authority should perhaps learn from the Chinese scientists and try to introduce the Chinese technology of desalination to Singapore. We fully agree with the eighth long-term strategy ---”
“The Government-linked companies should provide opportunities for SMEs to participate in providing peripheral services. They should not be completely profit-orientated and go for the kill in all their endeavours, such as speculating in the property market. It was said that recently a Government-linked company even wanted to venture into the roast duck business. Of course, there are many avenues for investment. But if you are using a cannon to hunt for sparrows, then you are wasting your talents and resources on petty undertakings. Fourthly, strengthening our base of SMEs. The report recommended that we should help the SMEs to give full play to their potential so that they could be strengthened and eventually developed into our future MNCs. But there are no specific recommendations on how to go about doing it. We feel that the Government should grant more concessions to our SMEs on taxes, skill development opportunities and on the distribution of resources, so that they will not be stagnated at its present stage. We fully agree with the fifth long-term strategy on having human and intellectual capital as a key competitive edge. On the sixth strategy of leveraging on science and technology and innovation, we feel that it is a very good suggestion. The question is whether or not our business administration concept can catch up with the express train of information era, for example, whether or not we can accept the concept of having our employees working from home, using computer network and other information technology equipment. Then, they will not need to go to office to work. If we can let 30% of our employees operate from their homes, then we would be able to save a lot of office space, which means savings on office rents as well as transport expenses.”
“We are fully appreciative of the CSC for this specific recommendation, particularly the part that calls for a review of the existing policies and the departments which provide the regulatory framework. We feel that the Government should immediately establish an inter-Ministry task-force, preferably to be led by the Prime Minister's Office, to conduct a comprehensive review on the bye-laws and regulations of the various Government departments. All those which are no longer relevant, not conducive to business operations, or unnecessary over-lapping should be repealed and removed as soon as possible. Secondly, strengthening our external wing. We agree that we should help our companies to go regional because the Singapore domestic market is much too small. Opening of oversea markets will beneft our local enterprises. However, we hope that the Government could set up an Overseas Investment Risk Fund. In this way, when our investments in the overseas markets were to encounter unfavourable situations, such as the political turmoil in Indonesia, then we would at least have some basic protection and we would not lose every cent of our investment. The third long-term strategy is to build up world-class local companies. Our Government-linked companies are very strong in resources. They are in the best position to take the lead in developing our local skills, venturing overseas, and eventually evolving into our very own MNCs. But the question is: is there any part where our SMEs can play in the process? We hope that Singapore will emulate the companies in Japan or Italy, such as Toyota or Fiat. They go to various countries in the world to open their markets and their local SMEs were able to hitch-hike on their successes.”
“For example, the CSC has recommended a strategy to prevent a credit crunch by saying that we should expand our Local Enterprise Assistance schemes to our SMEs, so as to give our promising companies more liquidity in their capital. This is good. But the banks are now very cautious and have tightened their credit facilities. They do not want to commit themselves in providing more assistance to our SMEs. This may contradict the recommendation of the CSC and warrant our attention. Sir, the CSC Report has also proposed eight major strategies in the long-term development of Singapore economy. Let me give my view on these strategies. The CSC believes that, for the next 10 years, manufacturing and services should continue to be emphasised as the twin engines of growth to develop Singapore into an advanced knowledge-based economy with global competitiveness. Such a vision is undoubtedly wonderful, and very attractive. If realised, it would certainly make Singapore a paradise. The specific recommendation by the Committee is that our manufacturing industry, including our local enterprises and the MNCs, should work together to produce high value-added products and to provide a base for related services in this region. As for the service industry, it should develop its present areas of service, to cultivate new areas and to develop Singapore into Asia's No. 1 service hub. The Committee also suggests that the Government should appoint a lead economic promotion agency to review and champion the developments of each service industry with the support of other Government agencies as a total approach.”
“44% said that they would use the money to seek and open new markets. 38% said they would strengthen their marketing activities to stimulate sales and 62% said that they would use the savings from cost-reduction to keep their existing employees in employment. 36% said that they would pass on the savings to their customers by reducing the prices of their products and services. 26% said that they would use the money to invest in new plants and equipment. If the Government can make bigger reductions in non-wage cost, I believe that the companies would be more active in responding to the appeal of the Government and the NTUC to make greater efforts in the interest of their own survival and development to improve on their operations, explore new source of income, reduce wasteful expenditure and endeavour to reduce the prices of their products and services. By so doing, their productivity will go up, their sales will pick up, and confidence will be restored to the market, thereby assuring workers of their job security and career advancement prospects. Mr Deputy Speaker, Sir, I would like to take this opportunity to call upon all the businessmen to lower the prices of their products and services by making use of the savings from the cost-reduction measures, and thereby alleviating the burden of our people. As regards the other five short-term strategies recommended by the CSC, that is, to prevent a credit crunch, to sustain the confidence of our investors, to restructure our economy, to open new markets, and to look for new regional opportunities. We totally agree with the recommendations but the question is whether they are feasible or not.”
“These are very complicated and time-consuming matters. Sometimes, you have to wait one to two months for a simple application to be processed and approved by the relevant authorities. Mr Deputy Speaker, Sir, to the businessmen, time is money. If the processing procedure of official documents takes such a long time, it is not in line with the PS21 spirit of high efficiency, particularly in application processing. DPM Lee Hsien Loong has recently made an illustration to describe the difference between Singapore and Hong Kong. He said, "In Hong Kong, if there is no law to say specifically that you cannot do a certain thing, then you can just go ahead and do it. But in Singapore, if the law does not specifically provide for you to do it, then you are not allowed to do it!" Mr Deputy Speaker, Sir, we are about to enter the 21st century. This is going to be a brand new era. It will be a sorry state of affair if Singaporeans are still stuck in the backward mentality of "no law to say you can do it, then you cannot do it". This certainly does not encourage creativity. Of course, we should not be like Hong Kong where "so long as the law does not say you cannot do, then you can do it". We do not want to have that! However, we should find a point of balance between these two extremes. I feel that if the Government can change old mindset and to be more open-minded, a lot of unnecessary bureaucracy can be done away, and its efficiency can be greatly enhanced. According to a survey conducted on the 3rd November by the Singapore Chinese Chamber of Commerce and Industry, among the 101 people who responded to the survey, 28% indicated that they were prepared to use the savings from the cost-reduction package to discharge the company's outstanding debts.”
“This will help to stimulate the property market. The Government should also review the annual value of these properties quickly to reflect the current market value. Corporate income tax should be reduced from 26% to 25%. Petrol duties should be reduced by 30%, and road tax should be further reduced by 30%. Port charges should be reduced by 20%. We commend the CSC for suggesting that the foreign worker levy be reduced between $50 and $100. But, we feel that it should be reduced by at least $200. At the same time, the Government should cut the foreign maid levy down from $345 to $200. We also suggest that the ERP charges should be capped at a maximum of $5 per day. We feel that the LTA should further reduce the ERP charges so as to reduce the transportation cost to help particularly the commercial sector, and also to stimulate growth in the retail industry. We would, once again, urge the Government to reduce the GST by 2% so that we pay only 1% GST. This will stimulate consumption. Singapore Telecom should reduce the charges for commercial telephone lines by 30% and the residential lines by 20%. For mobile phones, the air-time charges should be reduced to 10 cents per call and the changes should only be levied on outgoing calls. We are of the view that Singapore Telecom should use the cost savings from wage cuts to reduce its entire telecommunication charges. However, all the costs mentioned above are tangible costs. Apart from all these, there are also the intangible costs, eg, time cost. What is time cost? Time cost is something that is caused by the bureaucracy in the Government departments. In some companies, some officers have been deployed specifically to deal with correspondence with ministries, statutory boards and Government agencies.”
“This would also help to attract more foreign investments to Singapore, thereby creating more job opportunities for our people. There is a Chinese proverb which says, "Store your grains to provide for the lean years". In the ancient agricultural society, whenever there was a bumper harvest, the authority would store the grains in the warehouse, so that when there was a lean year and when you faced famine, the local government would open the warehouses and use the stored grains to feed the people. Now that the Singapore economy is encountering a lean year, should not the Government consider taking out part of its accumulated budget surpluses to help the people? When the other countries in this region, such as Japan and Malaysia, proposed their packages to save their economies, they did not ask their people to accept wage-cuts. But in Singapore, we are asking our people to make such a big sacrifice and the Government is only matching it with an equal percentage of reduction in non-wage costs. I think this is not convincing. In its Report, the CSC made some recommendations for non-wage cost reductions. Basically, we agree with these recommendations but we feel that the non-wage cost reductions can be more substantive. Mr Deputy Speaker, Sir, we suggest that the rebate given by JTC on land rents be raised to 30%, and the factory rentals be reduced by 25%. We also request the HDB to reduce the commercial and industrial property rental prices to that of the 1990 level, and we hope that Singapore Power could pass its savings in operational cost to the consumers by reducing the electricity tariffs. We also suggest that the property tax rebates for industrial and commercial properties be raised from 55% to 65%, and the rebates be extended to cover residential properties as well.”
“DPM Lee has also pointed out recently that this is a unique feature in our economy that gives us our competitive edge. We feel that this very close tripartite relationship should not be undermined. What we are worried is that this lopsided arrangement, with the workers taking the bulk of the cut, may cause them to be unhappy, thereby weakening our such strong tripartite relationship. We are however relieved to note the clarifications by the leadership of the NTUC that the wage cost and non-wage cost reductions are of equal magnitude and there is no question of unfairness. The question is: does the reduction of wage cost and non-wage cost components have to be the same? Should the workers' sacrifice and the Government's cost-saving offers be matched? We are of the view that the Government being the national resource controller and mobiliser should bear a larger burden of social responsibility. So long as it is within its means, the Government should make bigger sacrifices than the workers. The non-wage cost reduction should be bigger than the wage cost reduction, and it should not be a 50-50 ratio between the two. In the past few years, when the Singapore economy was performing well, like the private sector, Government agencies have been making profits or at least not operating at a loss, and they have therefore accumulated lots of assets for the Government and the people. However, when the country is facing an economic downturn, the Government should change its strategies and make expedient plans to save the situation. It should reduce service charges and taxes so as to create a better environment for the business, and ensure that companies in Singapore continue to survive and the workers' rice-bowls are protected.”
“According to the figures released by the National Wages Council, the 10% cut in employers' CPF contribution would reduce the wage cost by $4 billion. By reducing 5% to 8% in the total wage-cost, there will be a further reduction of $2.5 billion to $4 billion. By combining these two measures, the wage-cost can be reduced by a total of $6.5 billion to $8 billion or 13% to 16% of the employee's national total income. Mr Deputy Speaker, Sir, when announcing these guidelines, the NWC has also urged the employers to consider a smaller cut for employees in the lower income group and a bigger cut for higher pay senior executives in cutting the wage costs. Mr Stephen Lee, President of the Singapore National Employers' Federation and Mr Wee Cho Yao, Chairman of the Singapore Federation of Chinese Clans Association, also appealed to the CEOs and senior managerial staff, including company shareholders and directors, to lead in taking bigger cuts in their remuneration. We welcome this appeal and pledge to give it our full support. At the same time, we hope that Government leaders and senior civil servants would also take the lead in having a bigger wage cut to show they are prepared to sacrifice along with the people of Singapore. According to a comment in the latest issue of the NTUC News, the cost-reduction package, recommended by CSC, totalling $10 billion is made up of 15% reduction each from the wage cost and non-wage cost components in the total business cost. Although in percentage terms, they are 15% each, in real terms the wage-cost reduction amounts to $7.5 billion but the non-wage cost reduction is only $2.5 billion. All the time, we have been emphasising the close tripartite relationship and cooperation of workers, employers and Government.”
“However, we feel that in order to assist our local enterprises effectively, particularly the SMEs, to continue to survive in this economic crisis, the business cost should be reduced by at least 20%. Only then can we maintain our competitiveness. Under the present economic situation, particularly at a time when our currency is much higher than the other countries in this region, we feel that a 15% reduction in the total business cost may not be enough to enhance our competitiveness in the international market. In fact, as early as the beginning of this year, based on feedback from our members and businessmen in the industrial and commercial sector, the Chinese Chamber of Commerce and Industry has recommended some cost-saving measures such as a reduction on total wage-cost, Government taxes, foreign worker levies, land and factory rentals, etc. In a recent interview with Lianhe Zaobao, the Chairman of the National Wages Council (NWC) Prof. Lim Chong Yah, said that in order for Singapore to be competitive, business cost should be reduced by at least 20%. Prof. Lim is a very serious economist and since he holds such a view, I feel that our request for a 20% reduction in our business cost is a reasonable one. Although the CSC Report has recommended an annual 15% reduction on the total business cost in five areas, namely, wage-cut, reduction in foreign worker levies, lowering of land and factory rentals and lowering of Government charges, and tax-cuts, apart from recommending a 10% reduction in the employers' CPF contribution rate and the foreign worker levies to be reduced by $50-$100, there is no specific suggestion on the other areas. It is indeed a pity!”
“Mr Deputy Speaker, Sir, after much deliberation for more than a year, the Committee on Singapore's Competitiveness (CSC) presented this Report and its contents are down-to-earth and has touched a wide spectrum of issues. It has comprehensively reviewed the long-term competitiveness of Singapore in the international market and put forward many truly feasible recommendations. This can well be said to be the compass to guide Singapore's economy in maintaining its competitive edge to face challenges in the future. This Report comprises two main components: short-term measures and long-term strategies. As a Nominated MP speaking in this solemn forum on national affairs as a representative of the industrial and commercial sector, I would like to present our views and raise some supplementary suggestions from the angle of the industrial and commercial sector. This is my obligation, as well as my duty. Mr Deputy Speaker, Sir, first of all, let me reflect to this House the views of the industrial and commercial sector on the short-term measures as recommended in this Report. The CSC Report has recommended certain measures such as wage-cuts, reduction in foreign worker levies, land and factory rentals, Government charges, etc. As a representative of the industrial and commercial sector, I am most concerned with business cost and therefore I will spend some time on this aspect. Our industrial and commercial sector, particularly the SMEs, is facing unprecedented operational difficulties. At this critical moment of life and death for companies and enterprises in Singapore, the suggested package of $10 billion or 15% reduction in business cost is like sending a pot of red-hot charcoal in a snowy weather, something deserving our support.”
“But there was nothing the travel agents could do to assist them. From the business point of view, this is a great pity because business is brought right up to their door-step. Yet, they could not benefit from it. Mr Speaker, Sir, since Singapore wants to develop itself into an international metropolis, it should have the magnanimity and openness of an international metropolis. As such, I hope that the Ministry of Home Affairs would reconsider this matter and grant visitors from China the facilities of obtaining a visa on arrival, or even to exempt them from the visa requirement. In the meantime, may I suggest that the Immigration Department remove the requirement for travel agents to furnish a $1,000 security deposit for each visitor from China. Of course, some people may say that since Singapore citizens are required to apply for a Chinese visa to enter China, then the Singapore Government has to adopt a reciprocal arrangement for all PRC nationals to have a Singapore visa to enter Singapore. In my view, as an open metropolis, Singapore does not need to conduct itself in this manner. Moreover, unilateral waiver of visa is not without precedence in Singapore. As we all know, Singapore citizens need to have an American visa to enter the United States, but US citizens do not require a visa to come to Singapore. Since the Immigration Department can allow US citizens to enter Singapore without a visa, I feel they should also accord a similar privilege to PRC nationals. Otherwise, this may create a misunderstanding that Singapore is adopting double standards in dealing with the entries of Chinese and US citizens to Singapore. Mr Speaker, Sir, I fully support the Bill.”
“If we compare this standard of service to the high speed and efficiency of the checkpoint at Changi Airport, there is indeed a whole world of difference! On the other hand, faced with stiff competition, the travel agents normally will have to dig into their own pockets to furnish upfront the $1,000 security deposit for each of the tourists from China when they apply for their visas. Let us make a simple calculation. Singapore receives about 250,000 visitors from China each year, or an average of 20,000 per month. So at $1,000 per visitor, the travel industry has to activate $20 million of their capital each month as security deposit for their Chinese visitors. Although the Immigration Department has made some administrative adjustment to reduce the amount of the security deposit by half, with effect from the 1st of this month, the revised amount still stands at $10 million. Now, with an increasing number of Chinese tourists visiting Singapore, the huge amount of bank guarantees "stuck" with the security deposits will certainly affect the cash-flow and business operations of the travel industry. In this present time of economic difficulty, this measure adopted by the Immigration Department is really rubbing salt into the wounds of the travel industry. Presently, only government officials from China are exempted from visa requirement for up to 48 hours' stay in Singapore. But the period of 48 hours is apparently too short. When the Chinese government officials come to Singapore, apart from official duties, they also hope to take the opportunity to spend some time touring Singapore. Some of these government officials approached the local travel agents to assist in applying for extension of their stay in Singapore.”
“This will help to stimulate the dispirited tourism industry in Singapore, and can accelerate the recovery of the service and retail industries. Mr Speaker, Sir, unfortunately, since the implementation of the new tourist visa regulations for Chinese visitors in 1996 by the Singapore Immigration Department, tourists from China are no longer entitled to the 48-hour visa-free stay in Singapore. To make things worse, the authority requires the travel agents in Singapore to furnish a $1,000 security deposit for each Chinese tourist coming to Singapore when they apply for a 96-hour visa to stay in Singapore. This has resulted in the loss of many potential visitors from China, and moreover gives the mistaken signal that they are not welcomed in Singapore. This misunderstanding is certainly detrimental to the development of long-term bilateral relations between Singapore and China. Sir, if the $1,000 security deposit is meant to prevent Chinese visitors from overstaying or absconding, then it is not practical at all. For this very small number of black sheep who are prepared to flout the law, this $1,000 means nothing to them. It does not serve any deterrent effect at all. Why are we knocking out everybody with one sweeping blow just because there are a couple of black sheep in the flock? At the moment, the Immigration Department takes about 14 days to process a visa application for a visitor from China. After obtaining the original copy of the visa, the travel agent will first of all fax a copy of this visa to its counterpart in China, and then send the original copy over to China by courier service. The whole process, from the time of submission of the application to the time the original visa is received by the travel agent in China, takes about one whole month.”
“Mr Speaker, Sir, I welcome this Amendment Bill introduced by the Minister for Home Affairs to tighten the control of illegal immigrants, in order to maintain peace and order in Singapore. However, I wish to take this opportunity to urge the Government to seriously consider relaxing the restrictions on bona fide tourists who come to Singapore through legal channels, particularly the tourists from China. Sir, since the start of the Asian currency crisis, tourist arrivals from our traditional sources such as Japan, Thailand, Malaysia and Indonesia have dropped substantially owing to the internal economic difficulties of these countries. The tourism industry has suffered gravely. Statistics announced by the Singapore Tourism Board (STB) recently revealed that during the first seven months of this year, tourist arrivals have dropped to just 3,610,495, a drop of 17.6% as compared to the 4,381,664 for the same period last year. In the meantime, the China market seems to be showing excellent potential. According to the STB, China is among one of Singapore's top 12 sources of inbound tourists. From the 11th ranking in 1996, it has gone up to the 10th ranking last year, and in the first seven months of this year, it has risen to the 9th ranking, with a total of 163,745 visitors, an increase of 13% from the same period last year. With the national income growing all the time, more and more people from China will have the means to go on oversea tours. Because of the geographical and human affinities between the two countries, Singapore has become one of their most popular tour destinations. On this account, I believe that given more encouragement, the number of tourists coming from China to Singapore will increase by leaps and bounds.”
“Mr Speaker, Sir, we hope that while the enterprises and the workers are making substantial sacrifices, the Government can also make corresponding adjustments in its policies, and lead us out of this "coldest winter in the history of Singapore", into a beautiful and warm springtime. I fully support the motion.”
“In order to save time, I will elaborate on just a number of important points. In respect of taxation policy, we hope that the Government would adjust the GST, say, from 3% to 1%. This will help to reduce some pressure of the small businessmen. In addition, we also hope that the Government will allow more personal income tax rebates. In respect of the property sector, we hope that the Government will further revoke the anti-speculation measures for the property market, and to raise the CPF portion of the purchase price to 90%. In respect of the banking and finance sector, we hope that the Government will relax the credit regulations, and at the same time try to adopt some measures to stabilize the exchange rates. In respect of transport and communications, we hope that the Government will consider reducing the duties on diesel and petrol. At that time, we also suggested that the Government postpone the implementation of the Electronic Road Pricing system. But the Land Transport Authority has already announced that they are going ahead with it. It may seem inappropriate if I were to raise this point again today. However, I must emphasise that if the Government discovers any negative impact with the implementation of this system, it should promptly make some adjustment to it. In respect of supplementary schemes, we hope that the Government can establish some special schemes to help those companies which are facing difficulties in capital turnover. At the same time, assist SMEs to explore new markets, for example, help them to go to emerging markets in India, Europe, South Africa and Latin America to look for business opportunities.”
“Mr Speaker, Sir, the Singapore entrepreneurs, big or small, generally keep to the excellent tradition of our forefathers, that is, they all possess the sense of duty and sense of mission towards society and the nation. With the zeal of "what is taken from society to be used in the interests of society", they often share the profits they earned from their business with their employees, and even donate generously to national and community welfare organisations, benefiting Singaporeans of all races, religions and walks of life. Of course, we have not forgotten to pay all the taxes and levies to the country, accumulating a lot of surpluses for our national coffers. Now, these large, medium and small enterprises are subjected to the sudden impact of the financial turmoil. Faced with the pressure from the various cost inflation and credit squeeze, they can be said to be burning with anxiety and racking their brains for solutions. In this crucial moment, if they are unable to receive further support and assistance from the Government and the understanding and cooperation of their employees, then eventually they will collapse and have no choice but to wind up their business. Then, not only will more workers lose their jobs, the Government will also lose tax revenue. As a result, the entire national economy will shrink further. Mr Speaker, Sir, when the Chinese Chamber of Commerce and Industry announced the results of the second survey of this year on 26th June, it recommended to the Government to adopt a series of pro-business measures in the areas of taxes, property sector, banking and financial sector, transport and communications, supplementary schemes, etc. to help the local SMEs tide over this crisis.”
“As a matter of fact, we are even reluctant to cut the salaries of our workers, including reducing the CPF contributions. Because, by so doing, it will result in reduction in the workers' income, which in turn result in lower purchasing power. Lower purchasing power will then lead to further contraction of the market. The end result is that we, the businessmen, will stand to lose. This is a vicious cycle. It will make our economic situation turn from bad to worse. Recently, the Senior Minister called upon Singaporeans to consume more. I believe he made this call because he was worried that Singapore's economy might fall into this strange vicious cycle. Mr Speaker, Sir, our local enterprises must reduce their operational cost. This goes without saying. However, labour cost is only part of the cost of doing business. In other words, if the local enterprises can further reduce the other parts of their operational cost , such as rentals, taxes and other charges, our pressure on labour cost will be relatively alleviated. Lowering of labour cost implies that less workers will be out of job. Is this not the short-term target that the two hon. Members are seeking? Of course, the Government has already adopted some measures to lighten the burden of the SMEs. We are not turning a blind eye to all these. Indeed, we are grateful to the Government for the various cost-saving measures, particularly the series of off-Budget measures introduced by Finance Minister, Dr Richard Hu, in Parliament on 29th June. However, as a Nominated MP representing the interest of the industrial and commercial sector, I am duty-bound to accurately reflect the views of the SMEs in this august Chamber, that is, what the Government has done seems to be not quite enough.”
“The Secretary-General of NTUC and Minister-without-Portfolio, Mr Lim Boon Heng, recently told the media that if the economy further deteriorates, the first thing to do would be to save jobs. And to save jobs, we must ensure that there is a market for the type of services and products we supply, and to reduce cost. He also said that the Singapore dollar was higher than the currencies of our neighbouring countries. Unless we can reduce our unit cost, improve our productivity and implement cost-saving measures, Singapore may lose out to countries where the cost is lower. At another occasion, DPM BG Lee Hsien Loong raised a similar point. He said that reducing cost, including wage cost, would not only help the companies to survive, but also enable the companies to be more competitive, thereby helping the workers to save their jobs. Mr Speaker, Sir, the spirit of the speeches of DPM and the Minister-without-Portfolio happens to coincide with the objective of this motion before us. As a representative of the business sector, I agree that the business sector should also try its best to coordinate and put to full play the advantage of our tripartite cooperation. Let us put in a concerted effort to lead all the people of Singapore in tiding over the current difficulties. However, I must emphasise that to do this, our imminent task is to help the local large, medium and small enterprises to maintain their confidence and fighting-spirit to persevere in exerting themselves in their struggle for survival, for the sake of their own business development and the welfare of their workers, so as to tide over the troubled waters and search for a breakthrough. As employers, unless it is of absolute necessity and as a last resort, we do not wish to retrench our workers.”
“But the "degree of injury" varies. The first four categories have strong financial and resource capabilities. As it is said, "a lean camel is still bigger than a horse". Their injuries are just superficial. After a period of recuperation, they will regain their strength and vitality. As for the last category, that is, the SMEs, they are critically injured. If they are not treated promptly, they will most probably succumb to their injuries. The Chinese Chamber of Commerce and Industry conducted two surveys on the SMEs this year. In the January survey, 73.9% of the SMEs indicated that they suffered drastic reduction in their turnover and, at the same time, 45.1% indicated that they had cash-flow problems. In the June survey, both figures exceeded 80%. If the situation continues to deteriorate, the consequences would be too ghastly to contemplate. While the other countries in this region are recording negative growth, Singapore managed a 3.8% growth in the first half of this year. This is evidence of our strong and healthy economic foundation. Yet, while we rejoice in feeling how privileged we are, we must not forget that this financial turbulence has in fact destroyed a good number of enterprises which could not withstand the impact, with many others hanging by a thread in a precarious position. Since the beginning of this year, more than 12,000 employees have been retrenched due to liquidation or down-sizing of their companies. According to a report, by the end of this year, this figure would be more than doubled, touching 30,000. Apparently, we no longer enjoy the enviable situation of full employment that we have enjoyed over the last many years.”
“Bad things can be turned into good things. This is an objective dialectical law of the development of history. It cannot be diverted by man's subjective will. As such, I strongly believe that the current financial crisis will be a turning point for the further development of Singapore's economy. In this respect, I support the long-term objective of the motion moved by Mr Lim Swee Say and Mr Seng Han Thong, that is, to suggest that the Government should make full use of this economic downturn to strengthen our economic competitiveness and social cohesion, so that Singapore will emerge from this regional crisis even more competitive and resilient. As for the short-term target as raised by the two hon. Members, that is, to urge the Government to rally the support of the entire nation to minimize unemployment, I have no reason not to support it, because it concerns not only the abstract meaning of the standard of living of the people of Singapore, but also the actual problem of the friends, relatives and neighbours of each and every one of us here. However, I hope that while trying its best to rally the entire nation to ensure that our unemployment remains at the lowest level, the Government would also make every effort to ensure that the impact on the industrial and commercial sector of Singapore, particularly the SMEs, would be minimal. If we were to make a rough analysis of the employment structure in Singapore, we will find that the vast majority of Singaporeans are employees of the five major categories of employers, namely, the Government and statutory boards, MNCs, Government-linked companies, local large enterprises, and the SMEs. In the current financial crisis, all the five categories of employers are affected, without exception.”
“Mr Speaker, Sir, more than 2,000 years ago, the great Chinese philosopher, Lao Zi, said in his famous Daode Jing (Moral Canon), "In calamity lies good fortune, and in good fortune lurks calamity." The meaning of this saying is that good fortune is concealed in calamity and calamity is also hidden in good fortune. In other words, bad things may turn into good things, and good things can also turn into bad things. In the past decade, when the leaders and people of many Asian countries were complacent over their unprecedented economic growth, it never crossed their minds that the calamity in the form of a financial crisis was lurking in the good fortune of economic prosperity. As such, when this calamity of financial crisis surfaced, they appeared to be caught off-guard. Of course, such a reaction is perfectly normal. As Singaporeans, we ought to be happy because we have a good and responsible Government. The Singapore Government leaders have all along possessed a very strong sense of anxiety. Even in the good years when we had good and strong economic growth, the Government has been reminding the people not to take economic prosperity for granted, but to look at the success as the fruits of our hard work and diligence. Senior Minister Lee Kuan Yew has, on more than one occasion, told the people of Singapore to "be prepared for danger even in times of peace". Therefore, the arrival of this financial crisis should be looked upon more positively as a challenge to the Government, the business and the workers, to see whether they could once again put the advantage of their tripartite co-operation to full play, pull together in times of trouble and tide over difficulties, rather than treating it as a crisis per se. "In calamity lies good fortune".”
“With this in mind, it will be a positive step on the part of the Government to hold dialogue sessions with the business community before the Budget is formulated every year, to listen to their problems and views to ensure that when the Budget is formulated, it will take into consideration the inputs of the business community, thereby earning their unreserved support. I hope the Government can seriously consider this suggestion. Mr Deputy Speaker, Sir, I support the motion in principle.”
“When answering questions, although the Ministers cannot be expected to concede to all our requests, they should at least be receptive and tolerant to the more critical views or constructive suggestions which they might find it difficult to accept at the outset. I hope the Ministers can become more magnanimous and give due consideration to such suggestions put forward by the MPs or ask the officials in their ministries concerned to look into the suggestions and adopt those which are later considered necessary and appropriate. There is a saying that good advice is jarring the ears. The Ministers must always bear this in mind in listening to the people for their views and adopting their suggestions, when appropriate, so as to ensure smooth implementation of Government policies. Outside Parliament, the Government has spared no effort in promoting its rapport and cooperation with the grassroots organisations. As regards other civic bodies such as the industrial and commercial organisations, I hope that the Government should also treat them with equal importance. The Government should try to open up more communication channels to provide more opportunities for greater interaction and cooperation between the Government and the business community. In terms of economic development, I would appeal to the Government to give the business community more substantive participatory opportunities so as to adopt a more united and cooperative approach to the issues at hand. This will encourage the business community to make greater contributions to our economic development.”