Tharman Shanmugaratnam
Singapore
“EDB conducts regular reviews to GIP to ensure its effectiveness in attracting only top-tier business leaders who are interested to drive the growth of their businesses and investments from Singapore.”
“MAS may vary the size of the additional capital requirement imposed on the bank and take other regulatory actions depending on the outcome of ongoing reviews. MAS requires all retail banks in Singapore to ensure that their mission critical systems supporting digital banking are resilient.”
“This question will be answered in the reply to Dr Tan Wu Meng's Parliamentary Question filed for tomorrow's Sitting. [Please refer to "Probe into Recent Disruptions of DBS' Digital Bank and Physical ATM Services and Preventive Measures Implemented", Official Report, 5 July 2023, Vol 95, Issue 107, Written Answers to Questions for Oral Ans…”
“Borrowing from the banks is one of the ways in which MAS carries out MMOs to soak up such excess liquidity. Like other central banks, MAS does this daily through an auction system, enabling MAS to withdraw liquidity through the Primary Dealers that submit the most competitive prices.”
“To mitigate consumer over-indebtedness, the Monetary Authority of Singapore (MAS) requires financial institutions (FIs) to implement a range of safeguards when extending mortgage loans and unsecured credit.”
“The Monetary Authority of Singapore imposes on external asset managers the same stringent regulatory standards for anti-money laundering and countering the financing of terrorism that it imposes on banks.”
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“For some parents, distance is not the deciding factor. Choosing a school for its traditions/ethos and having siblings in the same school are often more important considerations. For parents who did not opt for a first choice school outside of 2 km from the home, the vast majority (95%) obtained places for their children within 2 km from home. In total, over 98% of the children in the last three years' registration exercises were either admitted to a school within 2 km from their home or admitted to a first-choice school outside 2 km. Some of the remaining 2% would however have been cases where the parents chose a second choice school outside of 2 km, in preference to a school within 2 km. Even though the Primary One Registration Exercise, for admission in 2006, has ended, there are still about 5,000 Primary One places available. The 5,000 places are spread out across some 50% of our primary schools all over Singapore. Most parents who wish to register their children in a school near their home would have a school to choose from. MOE will continue to ensure that there are sufficient places in our schools, both on a nationwide and regional basis, for all our children. We monitor closely the trends in the number of school-going children in each area. Where there is a build-up of potential demand, new schools will be built - although this can never be a precise exercise as population movements are not always predictable a number of years in advance. We are currently building six new schools in various estates with a growing school-going population, such as Sengkang, Punggol, Bukit Panjang, Woodlands and Sembawang. PRIMARY 1 REGISTRATION EXERCISE (Performance of voluntary service by parents) 20. Assoc. Prof.”
“The Primary One Registration framework gives children priority according to factors such as the distance of the home from the school, the convenience of being in the same school as a sibling and parents' preference with regard to the ethos and traditions of the school. In addition, it gives appropriate recognition to parents who are alumni or connected to the school through the founding community of the school, and to parents who provide voluntary service in the school. Doing so allows us to build stronger bonds within the community. The framework strikes a balance between these factors. Phase 1 of the Primary One Registration Exercise is for children with a sibling studying in the school for the convenience of the family. Phase 2A and 2B recognise the services contributed by the parents to the school community and parents' preference to place their children in the school that either they or their other children have attended. Phase 2C provides places for the remaining children who are Singapore citizens or Permanent Residents. Priority within each phase is accorded to children living nearer to the school. For instance, within Phase 2A and 2B, a child living within 1 km of the school will have higher priority compared to another living beyond 1 km from the school. For eligible children who have been unsuccessful in registering by Phase 2C, MOE will help them look for a school near their home. In the last three Primary One Registration Exercises, for admission between 2004 and 2006, most children got a place in a school within 2 km from their home unless their parents chose to send them to a school further away. About 21% of parents specifically chose to send their children to schools beyond 2 km from their homes. This is not surprising.”
“We will continue to engage the DMAS and MMCS to promote responsible mobile marketing through industry guidelines and best practices. Meanwhile consumers should also exercise care when disclosing their contact information so as to prevent or reduce unsolicited calls from telemarketers. HDB FLAT OWNERS (Bank origination loans) 20. Dr Ong Seh Hong asked the Minister for National Development since the introduction of bank origination loans (a) what is the total number of HDB flat owners taking up such loans; (b) how many of them are first time, second time and more than second time HDB flat owners respectively; (c) how many of them are those who switch from HDB origination loans to bank loans on their existing flats; (d) whether the Ministry or HDB makes it mandatory for all banks to fully explain the consequences of switching to, or taking up, bank origination loans; (e) how many flats on bank origination loans have been repossessed or are in the process of being repossessed by the banks; and (f) whether the Ministry or HDB has any guidelines on when and under what circumstances the banks can repossess HDB flats.”
“It includes representatives from various segments of the mobile marketing industry, such as advertisers, mobile operators, mobile services providers, and mobile technologies providers. Its goals include sharing best practices and advising on legal compliance. In 2004, in response to growing concerns by mobile subscribers, it set out to draw up a position paper on mobile subscribers' privacy. MMCS is currently working with DMAS on a set of guidelines for responsible mobile and e-mail marketing. Just last month on 25th August 2005, the Contact Centre Association of Singapore (CCAS) partnered with the Association of Banks in Singapore (ABS) and the Insurance and Financial Practitioners Association of Singapore (IFPAS) to release a set of telemarketing guidelines for the finance industry. These guidelines establish a common understanding of acceptable conduct when telemarketing financial products. MICA welcomes further initiatives by industry associations to promote best practices in telemarketing and other forms of direct marketing. Lastly, there are simple measures that each one of us can adopt to prevent or reduce unsolicited calls to the mobile numbers. For example, consumers can use the caller-ID function to screen local calls. Consumers can also buy mobile phones with a built-in function to reject or alert any calls from unknown numbers. These mobile phones are commonly available from several manufacturers. However this may not work when a subscriber is roaming overseas, as the call is re-routed and the availability of caller-ID is dependent on the commercially negotiated terms between the operators in the two countries. To sum up, in an increasingly connected world, telemarketers must adopt ethical practices.”
“Dr Lee Boon Yang: Prof Png asked about protecting Singapore consumer from unsolicited telemarketing calls. In a free market economy, we must expect businesses to become more creative in their efforts to win customers. MICA recognises that telemarketing is a common and bona fide marketing tool used by companies in many countries, but also acknowledges that irresponsible telemarketers are a nuisance to consumers. Telemarketing involves one-to-one voice communication, which falls in the realm of private communication. As such, it is difficult to regulate this form of communication. Indeed, it may cause alarm among the public, if the Government were to monitor such private communication. For this reason, MDA and IDA do not regulate the content and mode of personal communications over the telephone. A balance must therefore be sought between curbing irresponsible telemarketing and the Government's intrusion into the area of free communication and privacy. Instead of direct intervention, there are a number of other safeguards to protect the consumers. Under the Telecom Competition Code, IDA prohibits telecom licensees from providing their subscribers' information to any third party for marketing any goods and services. However, telemarketers may not be telecom licensees, and may have solicited, through legal channels, the users' telephone numbers, which means they may not be covered by the Telecom Competition Code. Hence, industry-led initiatives are important means to address consumers' concerns. For example, the Mobile Marketing Council of Singapore (MMCS) was founded in January 2003, under the auspices of the Direct Marketing Association of Singapore (DMAS).”
“The polytechnics, for example, are actively engaged in promoting interest in engineering amongst secondary school students, through a joint Task Force in partnership with the Singapore Science Centre, EDB and other organisations. IDA and the Singapore Computer Society organise seminars and exhibitions to promote the IT industry to secondary and JC students. NUS and NTU also conduct outreach activities, including promotional talks at schools and JCs, to interest students in taking up engineering and the physical sciences. A*STAR is also focused on developing a pipeline of research talent in both the biomedical sciences as well as the engineering and physical sciences. Last year, 50% of A*STAR scholarships were awarded to students in the engineering and physical sciences. ___________________ *Besides the pure sciences, there is also a substantial group of students offering the combined sciences: 46% of candidates in 2004 offered Physics/Chemistry, 4% offered Physics/Biology and 6% offered Chemistry/Biology. **Excludes Medicine and Dentistry. The number includes NUS Faculty of Science students declaring Life Sciences Major in 2005 (478), as well as the number of matriculating students in NUS Pharmacy (113), NTU Biological Sciences (201) and NTU Biomedical Sciences (63) in 2005. As the university semester has just begun, there may be some changes in the numbers in the coming weeks. UNSOLICITED TELEMARKETING CALLS (Protection of consumers) 18. Prof. Ivan Png Paak Liang asked the Minister for Information, Communications and the Arts if he will consider protecting Singapore consumers from unsolicited telemarketing calls, especially to their mobile numbers when they are roaming overseas, through either regulation, appropriate technology or both.”
“Our educational institutions therefore avoid making large bets on the future, or moving well ahead of the job market. Their pattern of intake of students into different disciplines reflects current economic opportunities and the demands that our industries are already able to anticipate. They also seek to ensure a good spread of talent across key disciplines. At the school level, we provide a strong foundation of education across a broad base of subjects, to give our students greater flexibility to further their studies. At the post-secondary educational institutions, some specialisation and professional training is necessary. But the institutions are encouraging students to take options outside of their core disciplines, so as to broaden their intellectual horizons and prepare them for any eventuality in the job market. The fact that more students are opting for the life sciences is entirely expected, and will support the continued growth of the biomedical industries. But these are not the only growth opportunities for Singapore, or the only rewarding careers for young Singaporeans. We will promote awareness amongst our students of all the opportunities available, and seek to retain interest in engineering and the physical sciences as we go forward. We will seek to ensure that adequate talent is available to support a broad and flexible strategy of industrial growth - including our key industrial clusters, namely, Electronics, Chemicals and the Biomedical Sciences, and new growth industries such as Environmental and Water Technologies, and Interactive and Digital Media.”
“It is not surprising that interest in the life sciences has caught on in our schools and tertiary institutions. It is now well recognised all over the world that advances in the life sciences are opening up large economic opportunities and will have a major impact on human society in the 21st century. But while there has been increasing interest in the life sciences, the number of students pursuing engineering-related disciplines or the physical sciences remains substantial. Candidature for 'O' Level Biology and Chemistry has increased in recent years, to 30% and 43% respectively in 2004. However, the 'O' Level Physics candidature has also increased, to 42% of all candidates*. Likewise, while 'A' Level Biology and Chemistry candidature has grown to 26% and 65%, 'A' Level Physics candidature remains a significant 60% of all candidates. The picture is similar at the tertiary level. ITE's Biochemical Technology course, its only life sciences course, had an intake of 160 in 2005, which is 1.3% of ITE's annual planned intake of 12,000. But more than 50% of ITE students take engineering-related courses. At the polytechnics, about 2,200 students signed up for chemical and life sciences courses in 2005, compared with 4,800 polytechnic students taking up engineering courses in 2005. For NUS and NTU, about 850 students entered life sciences** courses in 2005, compared with about 4,400 students in engineering and nearly 600 students in the physical sciences. Singaporeans have been and remain pragmatic. Ultimately, it is the availability of jobs and perceptions of career prospects that determine the popularity of different courses. But no one can know, with any certainty, exactly what types of skills and knowledge will be demanded in future.”
“- [Mr Tharman Shanmugaratnam]. Bill considered in Committee; reported without amendment; read a Third time and passed. COMMUNITY CARE ENDOWMENT FUND BILL Order for Second Reading read.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, the Education Endowment Scheme (EES) Act establishes the Edusave Pupils Fund (EPF) with the aim of enhancing citizen pupils' education. It provides citizen pupils with an Edusave account and yearly contributions if they are between 6 and 16 years of age and studying in primary schools, secondary schools, special education schools and ITE. Pupils can use funds from the Edusave account to pay approved fees and enrichment programme charges. The current Edusave Pupils Fund contribution rate is $170 for pupils in primary schools and special education schools and $200 for pupils who are studying in secondary schools and ITE. In his 2005 Budget Statement, the Prime Minister announced a special top-up of $100 to be made to the Edusave accounts of eligible pupils. Section 7(1) of the Education Endowment Scheme Act currently allows for the Edusave Pupils Fund to be funded from income of the Edusave Endowment Fund. However, it does not provide for the Edusave Pupils Fund to be funded via a direct injection of funds from the Government. Thus, in order to allow for special top-ups to be made to the Edusave account of each eligible pupil, section 7(1) of the Education Endowment Scheme Act has to be amended to allow the Government to inject funds directly into the Edusave Pupils Fund. [Mr Deputy Speaker (Mr S Iswaran) in the Chair] 5.05 pm In conclusion, Sir, the amendments proposed in the Bill will allow for special top-ups to be made to the Edusave accounts of eligible pupils by the Government. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill.”
“It is important for the Agency and its officers to be given immunity from personal liability since they are performing a public function. But the legal protection clause for the Deposit Insurance Agency and its officers does not offer blanket immunity. It only covers acts done in good faith. It does not, for instance, cover fraudulent acts or intentional and wilful misconduct. I should reiterate also that the Board of the Deposit Insurance Agency will be accountable to the Minister in charge of MAS for its acts and decisions. The financial statements of the Deposit Insurance Agency would be audited. It will be required to prepare and submit its annual report and estimates of income and expenditure of the Deposit Insurance Fund and of the Agency itself to the Minister, and the annual report will be made available to the public. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Tharman Shanmugaratnam]. Bill considered in Committee; reported without amendment; read a Third time and passed. EDUCATION ENDOWMENT SCHEME (AMENDMENT) BILL Order for Second Reading read.”
“And in the rare event that the fund size is inadequate, the Deposit Insurance Agency can borrow to fund potential shortfalls. For example, the Agency can take loans from financial institutions or issue capital market instruments. The MAS may also require Scheme members to contribute additional premium contributions to recapitalise the deposit insurance fund. Dr Magad noted that simultaneous bank failures are a remote event. They are remote. Actuarial computation has shown that the fund size of about $120 million or 0.3% of matured deposits will be sufficient 99.9% of the time. It will not be appropriate or desirable to provide in advance for the very remote event of simultaneous bank failures. Providing for this in advance will send the wrong signals and could lead to moral hazard. Dr Ahmad suggested that the Bill should provide for payouts to be taken within a specified period of time, say, three months. The Deposit Insurance Agency will make every effort to make depositor payout as speedily as possible. We envisage that it should be able to make payout sooner than within three months after a bank failure. But I agree it will eventually be good practice for the Deposit Insurance Agency to commit to making payouts within a specified period of time. We are new to this scheme. Let us set up the scheme and explore this issue at a further point. Other new deposit insurance schemes, such as the one in Hong Kong, also do not specify in legislation the time period within which payout has to be made. But let us consider this later. Finally, Dr Ahmad raised the issue of legal immunity for the Deposit Insurance Agency and its officers. He felt it was over-protective and not very transparent.”
“But reviewing the coverage limit on an annual basis will add to administrative complexity and will increase the cost for banks. Most countries have a fixed dollar quantum coverage which is reviewed after a number of years. We have assessed that $20,000 is likely to serve us for some time to come, certainly for the next 10 years, and we will review it at a later point in time. Dr Magad also asked about full banks or finance companies being exempted from membership and whether in such circumstance, the MAS should require that they disclose the fact that they have been exempted. First, let me say that the exemption clause that is provided for in the Bill is unlikely to be operative. It is to allow a foreign full bank that is covered by a deposit insurance scheme in its home jurisdiction which extends comparable protection to Singapore depositors, to be exempted from the Singapore scheme. Currently, there are no financial institutions that will qualify for exemption from membership under our scheme. All full banks and finance companies will be required to be members. However, should there be a case where a foreign institution qualifies for exemption from the Singapore scheme, Dr Magad's suggestion is a useful one. The Deposit Insurance Agency could require the exempted bank or institution to disclose that it is not a member of the Singapore scheme. This can be contained in the rules that will be issued by the Deposit Insurance Agency. Dr Magad had also raised the question of whether the Government should step in if the deposit insurance fund proves to be insufficient in the extreme situation where the funds are inadequate. First, the deposit insurance fund is adequate for most situations. The risk of bank failure is not zero, but it is very low.”
“Next, Dr Magad's question - an important one - on whether the $20,000 coverage limit was adequate. He noted that it was low compared to some other countries. This is a key issue. Our survey of bank deposits in Singapore has shown that the $20,000 coverage limit will provide full coverage to the vast majority or 87% of individual depositors. This percentage (87%) is well in line with international norms. In fact, the IMF suggests between 80% and 90% of individual depositors be covered. The $20,000 quantum is also fairly similar to that which has been enacted in Hong Kong - they recently passed legislation on their deposit insurance scheme. The marginal benefit of increasing the coverage limit beyond $20,000 is not large. For instance, if we double the coverage to $40,000, it would insure only an additional 7% of depositors. I should also mention that at $20,000, we will be able to cover, in value terms, 40% of the value of individual deposits and this is, in fact, significantly higher than most other countries. Dr Magad's comparison of deposit insurance coverage relative to per capita GDP, the $20,000 figure compared to per capita GDP, is an interesting one. But he has to take into account the fact that we have a CPF system in Singapore. For a significant majority of depositors, a fair proportion of their financial assets are really with the CPF, which is guaranteed by Government. Next, the question of whether we should be fixing the coverage limit, in terms of a fixed dollar quantum ($20,000) or whether it should be adjusted annually, as Dr Magad has suggested, for inflation. It is a valid point conceptually. The deposit insurance coverage has to be reviewed from time to time to ensure that it continues to be adequate in real terms.”
“It is also why we have put in features such as ensuring that insured deposits have priority over other deposit liabilities of the bank and why we are requiring foreign bank branches to maintain sufficient assets in Singapore to meet their actual deposits. These measures will help keep the deposit insurance fund low, keep the target size of the fund low and, therefore, keep the cost of the fund on the banks low. The targeted fund size is 0.3% of total insured deposits to be built up over 10 or years. So this means that the average annual premium will be about 0.03% of the bank's insured deposits. This is one of the lowest premium rates in the world. If the banks passed on the cost fully to depositors, it would mean a 0.03% charge on a depositor with a $20,000 account. Whether the banks do, in fact, pass on cost and how much of the cost they pass to depositors will be a commercial decision determined in our competitive marketplace. Next, Dr Magad suggested that we consider publication of the risk profile of banks here so as to enable depositors to make informed decisions. Banks' credit ratings are currently published and publicly available. I think it is useful for the Deposit Insurance Agency to consider making that more conveniently available to members of the public, for instance, by putting published credit ratings on its website or encouraging the media to carry such ratings. MAS' supervisory ratings, on the other hand, are not and cannot be disclosed because they are based on confidential information obtained in the course of supervision. Making public such information would hinder supervision and make the financial institutions less willing to cooperate fully with the MAS. This is also the practice adopted by reputable supervisors abroad.”
“Sir, I would like to thank Dr Ahmad Magad for his support for the Bill and his constructive remarks. Let me, first, address his opening observation. As he noted, many other Asian markets have deposit insurance schemes and he felt that it was overdue in Singapore. Let me reiterate that our financial system is safe and sound - in fact, safer and more sound than any other in Asia and one of the safest in the world. So, why are we introducing a deposit insurance scheme? It is not too late, but it is better that we do it now when the system is healthy. And as we continue to grow in complexity as the banking system expands abroad, more competition is brought into the system. By doing this now, depositors understand that even in a well-supervised banking system, there is a risk of bank failure, and understand that deposits are not guaranteed. The deposit insurance scheme also makes explicit that protection for deposits is not absolute but is limited. It specifies exactly how much each depositor can expect. So it is better that we do this now when the system is healthy than wait for a bank failure to occur, even if there is a low probability of that occurring. Let me address some of the specific points and suggestions which Dr Magad has made. First, on the question of whether and how much cost would be passed on to depositors. This was a key consideration when we designed the scheme - how do you provide adequate protection to depositors but in a cost-effective manner? It is why we designed the scheme to be quite targeted, not to have too broad a coverage. It is why we limited the scheme to only small depositors and also to only Singapore dollar deposits of a standard nature, ie, core savings of depositors.”
“For NUS and NTU, about 850 students entered life sciences courses in 2005, compared with about 4,400 students in engineering and nearly 600 students in the physical sciences. Singaporeans have been and will remain pragmatic. Ultimately, it is the availability of jobs and perceptions of career prospects that will determine the popularity of various courses. But no one can know, with any certainty, exactly what types of skills and knowledge will be demanded in future. Therefore, our educational institutions avoid making large bets on the future, or moving well ahead of the job market. Their pattern of intake of students into different disciplines reflects current economic opportunities as well as the future demands that can already be anticipated by industries. It is based on industry feedback. The tertiary institutions also seek to ensure a good spread of talent across all the key disciplines. At the school level, we provide a foundation of learning across a broad base of subjects, to give our students greater flexibility to further their studies in different areas. At the post-secondary educational institutions, some specialisation and --- 3.00 pm”
“Mr Deputy Speaker, Sir, it is not surprising that interest in the life sciences has caught on in our schools and tertiary institutions. It is now recognised, not just in Singapore, but all over the world, that the life sciences are opening up new economic opportunities and will have a major impact on human society in the 21st century. But while there has been increasing interest in the life sciences, the number of students pursuing engineering-related disciplines or the physical sciences remains substantial. If we look at the candidature for the 'O' levels, for instance, the number of students at the 'O' levels taking Biology and Chemistry has increased in recent years, to 30% for Biology and 43% for Chemistry in 2004. But the 'O' level Physics candidature has also increased, to 42% of all 'O' levels candidates. I should also mention that more than half of our students take combined Sciences at the 'O' levels and about 90% of students who take Combined Sciences take Physics in combination with either Biology or Chemistry. So Physics is very much alive in our secondary schools. Likewise, while at the 'A' levels, Biology and Chemistry candidature has grown to 26% and 65% respectively, 'A' level Physics candidature remains a significant 60% of all candidates. The picture is similar at the tertiary level. ITE's Biochemical Technology course, which is its only life sciences related course, had an intake of 160 students in 2005, which is 1.3% of ITE's annual planned intake of 12,000. More than 50% of ITE students take engineering-related courses. At the polytechnics, about 2,200 students signed up for chemical and life sciences courses in 2005, compared with 4,800 students taking up engineering courses in 2005.”
“The House immediately resolved itself into a Committee on the Bill. - [Mr Tharman Shanmugaratnam]. Bill considered in Committee; reported without amendment; read a Third time and passed. SUBORDINATE COURTS (AMENDMENT) BILL Order for Second Reading read.”
“It will certainly improve the efficiency of retrieving customers' records, which is particularly important when we are investigating suspected offences. But there are practical issues to consider if we mandate it across the whole system for every single player. There are costs in implementing such a system. MAS has not yet made it mandatory for the industry to computerise their operations but we do not rule out the option in future. Dr Magad also mentioned having full details of originator information on money transfers. I think he was referring to the recommendations of the Financial Action Task Force that there be complete originator information; in other words, not just where the last source of the funds came from but where it previously came from and the entire chain of transactions, starting from the original sender. This information will certainly aid authorities in their investigation of suspicious activities. Singapore, being an FATF member, has already issued a consultation paper on anti-money laundering which incorporates this requirement. MAS is currently reviewing the comments received from the industry and will be implementing this recommendation in due course. On Dr Magad's last question regarding the customs regime, the amendments proposed in this Bill are not directly related to the customs regime. But I think his concerns on money laundering risks arising from items of monetary value are valid. The FATF has also recognised the issue and recommended ways for countries to deal with it. This is one of the implementation issues that the inter-agency working group that I mentioned earlier is looking at. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House.”
“The provision states that in considering an application for renewal, MAS has to be satisfied as to the good character of the applicant, the financial condition of the applicant and whether the public interest will be served by granting the licence. Licences are usually renewed, unless the licence holder is unable to meet the fit and proper test or if there are serious breaches of the Money-changing and Remittance Businesses Act. Based on applications received in the past three years, only one application for remittance licence was not renewed. On the minimum sum of $100,000, first, I would like to clarify that the new requirement for remittance licensee to be incorporated as a company with a minimum paid-up capital of $100,000 is over and above the existing requirement for them to furnish a security deposit of $100,000 for due performance of their obligations. So we are adding on to the existing security deposit requirement. Dr Magad has a useful suggestion on whether we should in fact raise the minimum paid-up capital requirement in view of the higher quantum of today's transactions. We will have to consider this carefully. If we pitch it too high, we will not just drive some remittance houses out of business, we will drive others underground. So we will have to monitor the appropriate quantum of security deposit as well as the minimum capital requirement in future as we go along. But let us keep the business above ground. On computerisation of operations, Dr Magad has a useful suggestion that remittance licensees be required to computerise their transactions. He mentioned the UK. In fact, the UK issued a consultation paper three years ago but it has not yet implemented the recommendations of the consultation paper.”
“As far as the financial sector is concerned, MAS will continually review our framework for anti-money laundering and countering of terrorism financing, including the remittance houses and money-changing operations. I quite agree with Dr Magad that we should give sufficient time for businesses affected by these legislative changes to adapt. The Bill provides for a one-year transition period from the date of commencement of the Act to allow existing operators to meet the new requirement to be incorporated as a company with minimum paid-up capital of $100,000. Dr Magad also referred to section 13 of the Bill. Under the current Act, the section imposes a fine not exceeding $10,000 or one year's jail or both on any person found guilty of wilfully providing a false or misleading statement when applying for a licence or for renewal of a licence. Let me clarify that we are not doing away with the jail term. The amendment Bill will increase the fine to $50,000 but the jail term will remain. The quantum of $50,000 is comparable to those provided under the Financial Advisers Act and the Securities and Futures Act for similar offences. However, as for offences relating to terrorism financing, which I think Dr Magad was particularly concerned with, these are punishable under the Terrorism Suppression of Financing Act. As an example, the offence of directly or indirectly fostering the financing of a terrorist act is punishable on conviction with a fine of $100,000 or 10 years' jail or both. As far as MAS' authority relating to the non-renewal of licences is concerned, this is an existing provision which requires licensees to apply to the MAS for renewal of their licences.”
“Mr Speaker, Sir, I would like to thank the Member for Pasir Ris-Punggol, Dr Ahmad Magad, for his support for the Bill and for his very useful comments. First, his observations on the importance of countering money laundering and terrorism financing. It is a growing concern for all countries and particularly for international financial centres like ourselves. The Money-changing and Remittance Businesses (Amendment) Bill that we are now discussing is part and parcel of our overall effort to strengthen our anti-money laundering and countering of financing of terrorism measures. It is part and parcel of the overall arsenal that we are putting in place for the purpose in the financial industry. I should mention that we are not held in bad odour. Two years ago, Singapore completed the IMF-World Bank financial sector assessment programme. This assessment by the IMF and World Bank, which pooled together a team of international experts for the purpose, found that Singapore has a comprehensive legal, institutional, policy and supervisory framework to combat money laundering and terrorism financing. They also noted that our financial institutions have a strong compliance culture with regard to requirements to combat money laundering and terrorism financing. Nevertheless, we remain vigilant. An inter-agency working committee is looking comprehensively into the new recommendations of the Financial Action Task Force (FATF) which is the international standard setting body for anti-money laundering and countering of terrorism financing matters. The areas covered will include not just the financial businesses, but non-financial businesses and professions such as casinos, for instance.”
“Sir, in conclusion, the Bill introduces changes which enhance MAS' oversight of holders of remittance and money-changer's licences, for purposes of anti-money laundering and countering the financing of terrorism. It aims to raise the level of professionalism in the industry over time without depriving the public of affordable remittance and money-changing services. The Bill reflects MAS' supervisory approach, which does not extend to the prudential supervision of remittance licensees and money-changing licensees. While the Bill retains existing safeguards and introduces new measures to discourage fraudulent practices, these cannot insulate the public from all losses. Customers have to take personal responsibility and exercise discretion in choosing the channels through which they want their funds transmitted. Sir, I beg to move. Question proposed.”
“This is not the case for officers of a company or partners and managers of a limited liability partnership. Therefore, the Bill will provide that officers, partners or managers of holders of money-changing licences or remittance licences may be made personally liable for losses suffered, if the court finds that the licensee has carried out any of its business with the intention to defraud or for any fraudulent purpose. Approval of substantial shareholders, partners and directors MAS will be empowered under the Bill to approve the appointment of directors, partners and substantial shareholders of a money-changing or remittance licensee, as such persons may be in a position to influence the management of the business. Closure certificate The Bill requires the holder of a remittance licence to submit a closure certificate to MAS upon the cessation of remittance business. This certifies that all customers' funds have been received by the intended recipients and that adequate provision has been made to meet unforeseen liabilities in respect of the remittance business. Publication of information The Bill will give MAS the power to disclose regulatory actions taken against the remittance or money-changing licensee, where it is in the public interest to do so. This is aimed at enhancing market discipline in the industry. Quantum of penalties For more effective deterrence, the Bill will increase the quantum of penalties for certain offences. For instance, the penalties for persons carrying on an unlicensed money-changing business or remittance business will be increased from $50,000 to $100,000. Other clauses of the Bill that I have not elaborated on are minor technical amendments to clarify or expand the existing provisions, or to remove obsolete provisions.”
“Key Amendments Incorporation requirement for holder of a remittance licence Currently, a remittance licence can be granted to a sole proprietor, a partnership or a company. The Bill requires the remittance licensee to be incorporated as a company with a minimum capital of $100,000. This aims to raise the professional and anti-money laundering standards in the industry by ensuring that remittance licensees have a minimum level of financial resources needed to put in place anti-money laundering procedures for their operations. Scope of MAS' powers The Bill expands the scope of MAS' powers to revoke or suspend a money- changer's or remittance licence to include cases where the licensee has failed to comply with any written direction issued by the MAS. These powers will enable MAS to deal with recalcitrant licensees more effectively. In addition, the Bill spells out the circumstances under which a money-changer's or remittance licence will lapse, expire, or is voluntarily surrendered. As I have mentioned earlier, the Bill empowers MAS to issue directions to require a remittance licensee to display cautionary statements at its place of business. The cautionary statements aim to alert the public on what MAS does and does not supervise with respect to the business of the remittance house. Currently, the inward remittance business is not a regulated activity. The Bill will empower MAS to issue directions in respect of a money-changing or remittance licensee's inward remittance business, to strengthen our anti-money laundering arsenal. Personal liability for losses Presently, many remittance and money-changing licensees operate as sole proprietors or partnerships, where the sole proprietors and partners are personally liable for any loss suffered by the business.”
“In sum, MAS cannot for practical reasons supervise remittance houses to ensure their safety and soundness, although we will retain certain basic regulatory safeguards that serve customers' interests. This is unlike the case of banks or other financial players whose failure can pose systemic risks; for such players, MAS has to engage in close and active prudential supervision, in addition to regulatory safeguards such as minimum capital requirements. It is therefore important for the public to understand that MAS cannot prevent failure of remittance businesses. In cases of failure arising from fraud, the Bill provides an additional avenue for customers to pursue the assets of the guilty partner or officer. But customers have to take responsibility to weigh the benefits and risks of using the remittance services offered by the various businesses in the market, including the services offered by banks regulated by MAS. The introduction of higher entry requirements for remittance licensees will weed out the weaker players in the industry. However, I would like to assure the House that the new Bill will not deprive the public of remittance and money-changing services. Over the last two years, MAS has allowed six banks to set up additional outlets aimed exclusively at providing remittance and money-changing services. Large international remittance houses such as Western Union also continue to operate in Singapore. There are also established companies, such as Singapore Post Limited, with an extensive distribution network that also offer remittance services. Sir, I shall now highlight the key amendments that are proposed in the Bill.”
“To raise the level of public awareness of the scope of MAS' supervisory approach, remittance licensees will be required to post cautionary statements at their business premises to alert the public that MAS is not supervising remittance licensees for their safety and soundness. MAS will also be working with the Ministry of Manpower to educate foreign workers, who are the main users of remittance services, on what to look out for when remitting their money overseas. But the Bill is not intended to remove all safeguards for customers. Basic safeguards are built into our regulations, and the Bill enhances certain safeguards which serve to mitigate against potential losses by customers. First, MAS will continue to conduct background checks on applicants to prevent undesirable persons from conducting money-changing and remittance businesses. MAS will also maintain the requirement for remittance licensees to furnish a security deposit of $100,000 for due performance of their obligations. This security deposit may allow customers to recover some of their losses in the event that a remittance licensee fails. But it is not intended to nor can it insure customers against losses. To do so will require a prohibitively high security deposit that will render many remittance businesses unviable. In addition to these existing measures, the Bill will now provide that officers, partners or managers of businesses holding a money-changer's licence or remittance licence may be made personally liable for losses suffered, if the court finds the licensee to have carried out its business with the intention to defraud or for any fraudulent purpose. These measures are aimed at discouraging fraudulent practices and providing customers and creditors with some recourse, should losses occur.”
“Other reputable jurisdictions such as Australia, Hong Kong, Switzerland and the United Kingdom adopt the same regulatory approach. MAS' supervision of holders of remittance licences and money-changing licences will continue to focus on anti-money laundering and countering the financing of terrorism. Like other established financial centres, Singapore is committed to the global fight against the laundering of proceeds from criminal and terrorist activities. Sir, this Bill carries two messages. First, MAS intends to raise the anti-money laundering standards and countering the financing of terrorism standards in this industry. Second, consumers have to take personal responsibility and exercise discretion in choosing remittance channels for transmission of funds to people in other countries. They should not assume that the MAS or the safeguards in the Bill will insulate them from losses or ensure the safety and soundness of remittance houses. To raise the anti-money laundering and countering the financing of terrorism standards in this industry, we will be pushing up the entry requirements. We will be requiring the holder of a remittance licence to be incorporated as a company with a minimum paid-up capital of $100,000. This higher entry requirement will help to weed out the weaker remittance licensees. We will also extend the present anti-money laundering and countering the financing of terrorism regulations to the inward remittance business, not just the outward remittance business. And we will strengthen market discipline by publishing MAS' regulatory actions against errant licensees.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, this Bill seeks to amend the Money-Changing and Remittance Businesses Act (Chapter 187). The amendments aim to refine and better reflect MAS' supervisory approach towards holders of remittance licences and money-changing licences. I should state at the outset that MAS' supervision of these activities focuses on anti-money laundering and countering the financing of terrorism. MAS does not supervise holders of these licences for their safety and soundness. This approach of focusing on anti-money laundering rather than safety and soundness of remittance houses and money-changing operations is similar to those adopted by other reputable financial centres. It places responsibility on customers to choose their remittance channels wisely. Remittance houses perform a useful service in transmitting money from Singapore to recipients in other countries, at a relatively low cost. The industry has grown over the years but most of the remittance houses remain small players. Many are sole proprietorships or family-owned partnerships who operate through informal networks such as friends, relatives or overseas agents, operating on the basis of relationships or trust, to deliver funds to the intended recipients. These small players often may not have the resources to put in place the same degree of internal controls that larger financial institutions like banks have. The same is true of most holders of money-changing licences. Their modus operandi and, more importantly, the fact that they pose no systemic risk to our financial system make it impractical and unnecessary for MAS to supervise them for purpose of ensuring their safety and soundness.”
“Going forward, we will review the current situation in primary schools to see how further support could be provided to schools to carry out the swimming programme more effectively. We will work with agencies such as SSC to find possible solutions. APPLICATION FOR WORK PERMIT (Inclusion of medical insurance coverage) 17. Mr Yeo Guat Kwang asked the Minister for Manpower if he will consider compulsory medical insurance coverage be included as a condition when applying for a work permit. Dr Ng Eng Hen: Under the Employment Act, employers are required to bear the medical consultation fees incurred by their local and foreign employees with at least six months of service. In addition, under the Workmen's Compensation Act, employers are also required to bear the medical cost and compensate their workers for work-related injuries. Currently, we only require employers to purchase insurance to cover for their potential liabilities for workmen's compensation. Employers of foreign domestic workers are also required to purchase personal accident insurance for their workers. These were imposed to help employers mitigate the risk of high compensation or medical costs that they could potentially incur. The medical cost for workers is another potentially high liability and some companies do already buy insurance to cover for this cost. MOM will examine if there is a need to introduce compulsory medical insurance for foreign workers to mitigate this risk. STANDARD DRUG LIST (Qualification criteria for subsidies) 21. Dr Amy Khor Lean Suan asked the Minister for Health what are the criteria used to determine which drugs qualify for the standard drug list for which Government subsidies apply.”
“There has been no change in policy with regard to swimming lessons. The Ministry of Education (MOE) and schools seek to provide our students with basic survival skills such as swimming as part of the holistic education that we give them. Swimming was first introduced in the PE curriculum in 1982 through a pilot programme conducted in 18 schools. However, the programme was discontinued in 1985 as a large number of schools were unable to conduct the programme due to logistical and resource constraints. In 1987, a Learn-to-Swim Scheme was again piloted in seven primary and 15 secondary schools. The aim of the scheme was to enable students to swim 25 metres and learn water safety skills. Following the pilot, the Scheme was extended to more schools. Presently, the Scheme continues to be conducted in schools. In collaboration with Singapore Sports Council (SSC), swimming coaches are engaged by the schools at reasonable rates. They also provide further training to our students beyond these very basics. The average number of primary school pupils who benefit from this programme each year is about 10,000. In addition, about 55% of primary schools and 25% of secondary schools offer swimming as a CCA. More generally, in addition to the Learn-to-Swim Scheme, the Physical Education syllabus includes water safety skills. It includes components on Water Safety, Water Confidence, Swimming/Basic Survival Techniques and Rescue Techniques from the primary to pre-university levels. Currently, schools are given the flexibility to plan and implement their own swimming programmes to meet the needs and interests of their students. We acknowledge that schools face some constraints, namely, the lack of swimming instructors and availability of swimming pools.”
“We expect banks to be alert, and MAS will be alert in ensuring that the banks do not go overboard, ie, ensuring that a competitive marketplace does not lead to a lowering of standards. I am confident that the banks will exercise discipline. We will be having discussions with them to make sure that it would not be an arbitrary set of rules that they would apply to borrowers, whether it is for larger flats or the usual flats that they have been getting for a particular age group or income group. We have got to have a certain discipline within banks. There should be certain guidelines. We are not being prescriptive and we are not going to impose a common rule on every bank. But we will go in to inspect, have discussions with them and we want to be satisfied that they are not lowering their guard.”
“Mr Speaker, Sir, Minister Mah has suggested that I take this question on behalf of the Senior Minister. From the MAS' perspective, we are now lowering our standards of prudence that we are expecting of banks. Essentially, what we are doing is evolving our methods. This is not new. In fact, the first change was in 2002. We are moving in a step-wise fashion, from a focus on regulation of banks towards increasing reliance on supervision of banks. Housing loan rules are a good example. We are moving from micro regulation, where each and every housing loan is subjected to MAS' regulation, towards allowing the banks to exercise more assessments of their own on the risks of the loan, the interest rate they should charge and how much they should give. But MAS would have to shift its methods and play its part of supervising the banks more actively on their housing loan books, looking at their internal credit appraisal criteria and looking at the overall risks of their housing loan portfolio. If it should be that because of economic conditions or property market conditions, we feel that their housing loan portfolios are getting too risky, we might require them to put in more capital. I think this is a more refined approach. We will be moving in steps towards this. If we had done it all in 2002, the market would have had difficulties digesting it. So the first major step was in 2002, when we changed the order of charges between CPF and banks, and also made the first move on reducing the cash requirement. We have now had three years. We are confident that the banks are now in a position to take the next step.”
“This is something for the universities to decide for themselves - what admission standards to set and, having admitted the students, how much credit to give for the course work that they have done in the polytechnics. Universities vary quite widely in their standards. Ultimately, the real judge is the employer's marketplace. How much worth an employer attaches to a degree from a particular university will depend also on the standards that the university applies. So, it is something which our local universities have to think hard about. Yes, they are facing some competition from foreign universities that are quite liberal in offering credits for work done in the polytechnics. Some of these are good universities. For some others, the market has to judge what their worth to be; some are lesser. I would not want to push the local universities to try to be as liberal as possible just for the sake of competing with everyone in the marketplace of universities abroad. I think it is something they have to consider very hard. But this is something that is best not decided by the Ministry but by NUS, NTU, SMU themselves. DENGUE FEVER CASES 7. Mr Leong Horn Kee asked the Minister for the Environment and Water Resources, in view of the recent sharp increase of dengue fever cases, what concerted actions have been taken or are being planned nationwide to fight against this health hazard.”
“However, if you flip open the newspapers nowadays, it is quite well known that many foreign universities actually offer one to two years' exemption, while the local universities, at most, only offer a one-year exemption. Would the Ministry help the local universities to also provide a shorter path, so that we can actually pull these good students to the local universities after their polytechnic education, instead of going to a foreign university?”
“First, I should just clarify that the 60% of polytechnic students who do go on to obtain a degree, I was not referring to the next five years. But that is the current status. This refers to people who within five years of graduation tend to go on to obtain a degree. Are they attracting more of the brighter students - those who would have been eligible to enter the junior colleges? There was some increase in numbers, particularly as the polytechnics open up courses which appeal to students, eg, digital media and courses like that. But it has stabilised. Basically, about a third of our polytechnic students would have done well enough in their "O" levels to be able to enter a junior college but chose to go on to polytechnics. I think it is not a bad thing that we have some diversification of the pathways that our students take. They have different talents, different intellectual orientations. Not everyone is well served by JC education. But not everyone is well served by pursuing the polytechnic route either. So we should preserve both routes. I think that is the strength of the Singapore system - that we have two totally credible routes of post-secondary education for students of both high intellectual abilities as well as those who have other types of abilities which are best served by a non-JC path to post-secondary education. Is it a short-cut? Well, it depends. It depends on which university they are going to, how many years of credit do they get, either one or two years' credit off for their polytechnic degree. I think this is something we leave it to the marketplace. Assoc. Prof. Ong Soh Khim: Sir, I have a supplementary question again. So we leave it open, ie, there is a JC local university degree path and there is a polytechnic foreign university degree path.”
“Our polytechnics are also well-placed to nurture students with a certain entrepreneurial spirit, a "can do" spirit, and encourage their students to engage in innovation and design work. The polytechnics will continue to review and update their curricula, and work closely with the industry, so as to keep up their reputation both locally and abroad, develop the talents of their students and provide well-trained manpower for the Singapore economy. Assoc. Prof. Ong Soh Khim (Nominated Member): Sir, I have three supplementary questions. With regard to the 60% of students who actually went on to pursue higher degrees locally or overseas in the next five years, is that indicative that the polytechnics are actually attracting a significant portion of the top "O" level students such that less good students are actually going to the JCs and subsequently the universities in Singapore? My second question is this. It is well known that a polytechnic foreign university degree path is shorter than a JC local university path. So, has polytechnic education become a short-cut to obtaining a degree? My last question is, in view of the recent calls by SM and MM for more top students to attend local universities, how does the Ministry propose to attract more top students to attend JCs and local universities, instead of taking the polytechnic foreign university degree path?”
“Mr Speaker, Sir, in recent years, about 60% of each cohort of polytechnic students have gone on to pursue a university education, either locally or overseas, within five years of graduation from polytechnic. Of these 60% of polytechnic students, about 13% go on to an undergraduate education at our three local universities and the other 87% or so obtain degrees elsewhere, either other locally-run programmes or distance learning programmes offered locally or at overseas universities. By 2010 when NUS and NTU would have expanded their capacity, the proportion of polytechnic students that will be going to NUS and NTU would more than double to over a quarter of the total number of polytechnic students who go on to obtain a degree. Over a quarter of them would be able to obtain their degrees at NUS and NTU. Assoc. Prof. Ong had asked if the polytechnics are therefore becoming another category of junior colleges. They are not becoming like junior colleges. Our junior colleges and polytechnics provide distinct but complementary paths within our post-secondary education system. The JCs offer an academically-oriented programme to prepare their students for a university education. Our polytechnics provide students with a technically-oriented tertiary education that prepares them well for good careers and which meets the needs of the economy. The hallmark of a polytechnic education is the applied and practice-oriented teaching and learning approach. While many polytechnic students do go on to obtain a degree, they tend to retain this technical and applied orientation when they return to the workplace.”
“Ong Soh Khim asked the Minister for Manpower (a) what is the rationale for the progressive reduction of the Central Provident Fund (CPF) contribution rate for the 50-55 age group by 2% from 1st January 2005 and 1st January 2006; and (b) do the employers have to correspondingly reduce the workload of the employees in this age group by 2% as the CPF contribution rate cut is effectively a pay-cut. Dr Ng Eng Hen: In general, older workers face greater difficulty getting re-employed once they lose their jobs. The Economic Restructuring Committee (ERC) had noted that one reason for this was wage rigidity in the form of the prevailing seniority-based wage system. This puts older workers at a cost disadvantage compared to younger workers. In addition, older workers have a higher risk of being re-employed at lower pay. The employer's CPF contribution rate for workers aged 50-55 was thus lowered to enhance wage flexibility and help preserve their jobs. At the same time, the employee CPF contribution rate for this group was lowered to increase their take-home pay. We encourage employers to pass on part of their cost savings from the lower CPF to deserving employees in this age group through the variable wage component, such as by giving higher bonuses when the company is doing well. APPENDICES”
“Generally, the approach taken by MOE in planning the Primary 1 (P1) intake is to provide more than sufficient places for eligible P1 students on both a national and regional basis. For the 2006 P1 intake, we will have a surplus of 9% of P1 places based on the number of Primary 1 going children on a nationwide basis and a surplus of 12% in Tampines Development Guide Plan (DGP). All Primary 1 going children will therefore be assured of a place in our primary schools. The reduction in intake in some primary schools this year is due to the implementation of a few important initiatives in recent years and in the coming years to improve the quality of primary education. These include the reduction of class size in Primary 1 and 2 from 40 pupils to 30, and the introduction of partial single session in primary schools. We have also been giving greater flexibility to schools in how they use some of their space and other infrastructural resources to improve the quality of education, for example, some schools are re-grouping their pupils into different classes according to their strengths. To implement these initiatives, we are gradually reducing the Primary 1 intake in schools that currently have a high enrolment. We recognise that some parents will not be able to get their children into the schools of their initial first choice. However, their children will have places in schools in the same locality. Like all children, they will benefit from the smaller class sizes and other improvements. In providing alternative places for children who are unsuccessful in getting a place in their choice school, we have also minimised the additional travelling distance they have to make from home. CENTRAL PROVIDENT FUND (Reduction) 5. Assoc. Prof.”
“The proportion of foreign students in our primary, secondary and JC/CIs is shown in Table 1. It has remained stable over the last three years. Table 1: Foreign Enrolment Average Enrolment No. % Primary 9,023 3.0 Secondary 9,435 4.6 JC/CIs 1,815 7.3 All 20,273 3.8 The percentage of foreign students in the top 5% and 10% of candidature at the PSLE, 'O' and 'A' Level examinations is shown in Table 2. The relatively high proportion of foreign students in the top 5% and top 10% of students taking the 'O' and 'A' level examinations reflects the good performance of foreign scholars. Table 2: Average No. and % of Foreigners in Top 5% & 10% in National Examinations for 2002 - 2004 Foreigners Foreigners in Top 5% Foreigners in Top 10% No. % No. % No. % PSLE (Exclude EM3. Based on PSLE Aggregate) 1,414 3 67 3 137 3 O-Level 2,106 6 275* 13 453* 10 A-Level 852 7 97** 11 229** 13 * Based on L1R5 **Based on A-Level Points PRIMARY ONE INTAKE IN TAMPINES GRC (Reduction in 2006) 4. Mr Ong Kian Min asked the Minister for Education (a) what are the reasons for reducing 2006 Primary One intake in six popular primary schools in Tampines GRC by between 30 and 60 places; and (b) what measures will be taken to alleviate the transport expenses and inconvenience faced by those children who are affected by the reduced number of places.”
“While we have rules in place to curb the easy availability of credit, Singaporeans have to take personal responsibility for their finances and ensure that they do not incur debt in excess of their ability to repay. That is why the MAS and other Government agencies have been working with industry and community organisations on the MoneySENSE national financial education programme, which aims to help Singaporeans acquire the skills and knowledge to better manage their finances. MAS will continue to work with the Association of Banks in Singapore (ABS) and Consumer Association of Singapore (CASE) to educate consumers on the consequences of late payment on credit cards, and how penalties and late interest charges are computed. Through the efforts of MoneySENSE and other similar programmes, we hope to help Singaporeans manage their finances proactively and use credit responsibly. 1 This is defined as bad debts written off expressed as a percentage of average rollover balance for the quarter. 2 Source: MAS Credit and Charge Card Statistics 3 Source: Hong Kong Monetary Authority FOREIGN MAID LEVY RELIEF 2. Assoc. Prof. Ong Soh Khim asked the Prime Minister and Minister for Finance whether his Ministry will consider foreign maid levy deduction in the personal income tax during tax assessment for singles who have to support and look after elderly parents as currently a married woman is allowed to deduct foreign maid levy paid for one maid against her earned income during tax assessment.”
“When the Monetary Authority of Singapore (MAS) amended the Banking (Credit Card and Charge Card) Regulations ("the Regulations") in 2004, we retained the two key measures that promote the Government's objective of discouraging Singaporeans from spending beyond their means. These are a minimum annual income of $30,000 to qualify for a credit card and a maximum credit limit of twice the cardholder's monthly income. Some amendments were made to give flexibility to card issuers and choice to cardholders without compromising the fundamental objective. However, these amendments do not make it easier for Singaporeans to obtain credit. Assoc. Prof. Ong is concerned with the $2.6 billion rollover balance of Singaporeans. In fact, the growth in rollover balance has slowed in the last few years. It grew by 3% in 2004. We have also looked at the rate of credit card defaults1, which is a better indicator of whether cardholders are spending beyond their means. On this measure, the adjusted charge-off rates for Singapore averaged at 5% between 2002 and 20042 . This is comparable to that in other countries. It is in fact lower than the average charge-off rate in Hong Kong3 which was 9% during the same period. Assoc. Prof. Ong asked about the measures in place to ensure that financial institutions conduct proper checks on applicants for various credit facilities. Banks and other credit card issuers are required to comply with MAS' regulations on credit cards, including obtaining documentary evidence of applicants' incomes. We conduct periodic inspections to ensure compliance with these requirements.”
“Visitors can also help by alerting NParks if they spot any defects or witness any unauthorised activities in the nature reserves. More importantly, visitors should do their part to safeguard our heritage for others' enjoyment by keeping the areas clean and tranquil. Dr Lee asked whether it would be possible to install closed circuit television cameras (CCTVs) at the major trails to deter improper uses of the facilities. CCTVs are more useful in confined areas where the monitoring staff can respond instantly to incidents. As the nature reserves are vast open areas, CCTVs may not be as effective. In any case, it will not be possible for us to monitor people's activities all the time. Ultimately, visitors, cyclists included, should exercise personal responsibility and common courtesy. For example, they should observe trail etiquette by keeping to designated paths. Dr Lee asked whether existing penalties for anti-social behaviour are sufficient deterrence and whether they are enforced. Sir, under the existing National Parks Regulations, enforcement action may be taken against persons for cycling on unauthorised tracks, fishing illegally and so on in the nature reserves. Offenders may be fined up to $5,000 upon conviction. In 2004, a total of 148 people were fined for various offences committed in the reserves.”
“WALKING TRAILS IN RESERVOIRS AND NATIONAL PARKS (Enforcement of regulations) 18. Dr Warren Lee asked the Minister for National Development given the increased interest in our walking trails within the reservoirs and national parks (a) whether there are sufficient staff to enforce NParks regulations, such as no cycling, no poaching of animals, fish, birds and plants, given the tremendous popularity of the Tree Top walk in the MacRitchie/Pierce catchment reserve; (b) whether it will be possible to install close circuit television cameras at the entry and exit points of the major trails, such as the MacRitchie reservoir trails, to deter cyclists from cycling and causing disturbance to joggers and walkers in these areas; and (c) whether existing penalties for such anti-social behaviour are sufficient deterrence and whether they are enforced. The Second Minister for National Development (Mr Lim Swee Say): Mr Speaker, Sir, the Member is right that there is increased interest in our walking trails, reservoirs and nature reserves. For example, the Bukit Timah Nature Reserve attracted about 400,000 visitors last year. The Tree-Top Walk has received about 20,000 visitors per month since it was opened in November last year. Sir, with the increased usage, the job of protecting our natural heritage has become even more challenging. However, the solution does not lie in NParks deploying more staff to carry out the enforcement functions. The public needs to play its part too. In this regard, I am happy to say that many individuals and organisations are already helping NParks to monitor the health of the habitats. They conduct guided walks and educational talks, and patrol the areas.”
“Sir, the Commodity Derivatives Trader (CDT) Scheme aims to support an expanded role for Singapore as a commodity derivatives trading hub. The opportunities in this business are growing globally. In fact, they are growing very rapidly. To give Members a feel, the amount of over-the-counter (OTC) commodity derivatives contracts as at June last year reached US$1.27 billion, up 22% on a year earlier. The number of exchange-traded commodity derivative contracts reached 736 million globally last year, up 16% on the previous year. Singapore is the Asia Pacific centre for the price setting and trading of oil and rubber products. The CDT scheme aims to leverage on these existing strengths to develop Singapore further as a hub for trading, pricing and risk management for oil as well as other commodity products. By offering a concessionary tax rate of 5% on profits derived from trading commodity derivatives, the scheme seeks to grow a critical mass of market makers that focus on derivatives trading, in other words, paper trading. This will serve to increase the level of both physical and paper trading out of Singapore. The idea is basically to increase liquidity, and to thereby strengthen Singapore's role as a pricing hub. Besides liquidity in the current products, the aim is to also encourage a broader range of commodity derivative products to be offered. In this respect, the CDT scheme supports both the OTC and exchange-traded commodity derivatives, including such things as commodity-based Exchange-Traded Funds and index futures. Risk management is another aspect of the market that the CDT scheme will help stimulate. The development of a liquid commodities market with a wide range of hedging instruments and products will help support risk management activities here.”
“Mr Speaker, Sir, Dr Khor has asked who ultimately decides on whether NTU or NUS would be given the present Bukit Timah Campus. The Government decides on who gets to use the Bukit Timah Campus site. NUS and NTU have expressed their interest to use the site for educational purposes. The Government's decision would be based on how the site would be used, the considerations put forward by the universities, and how the public interest would be best served. The Government will announce its decision by the middle of this year. URA has re-zoned part of the Bukit Timah Campus as an extended site for the Singapore Botanic Gardens in the Masterplan 2003. The remaining portion of the Bukit Timah Campus site which is not re-zoned for Park use, is zoned for Educational and Institution use. The typical tenure of leases for educational use is 30 years. The Government will release more details once it makes its decision known. PRESIDENTIAL ELECTION (Nomination date) 16. Mr Steve Chia Kiah Hong asked the Prime Minister and Minister for Finance (a) if the Presidential election will be held this year and, if so, has the nomination date been selected; and (b) will there be any publicity to encourage more qualified Singaporeans to present themselves for nomination so that the Presidential election will not be another walkover event like the previous one.”
“We will be putting more teachers in our schools, making judicious reductions in curriculum content, and providing more flexibility in physical space in schools to allow for more innovative approaches in classroom teaching. Our teachers are experimenting with various new teaching approaches, such as peer tutoring and project work, that encourages students to work among themselves to develop skills of independent learning instead of relying excessively on their teachers. By the end of last year, all our primary schools have undergone training to start implementing Project SEED (Strategies for Effective and Engaged Development), which encourages our teachers to establish new teaching strategies appropriate for Primary 1 and 2 students. For example, at Kong Hwa School, the teachers have developed a unit on "canteen food" to teach their Primary 1 students basic mathematical concepts and financial accountability. The teachers also showed the students how to use the Internet to find out more about what constituted a healthy and balanced diet. While not everyone can move at the same pace in a 27,000-strong teaching force, we are moving ahead in the right direction. APPENDICES”
“Good and well-trained teachers are critical success factors in our school system. That is why we continually strive to recruit quality teachers, train them better, support their efforts to nurture a spirit of inquiry amongst their students, and recognise those who demonstrate their ability to teach effectively. We recruit teachers from diverse backgrounds. They graduate from a range of disciplines. One in six of those recruited in the recent recruitment cycle had at least three years of prior working experience, thus bringing more diverse perspectives and experiences into our schools. Once teachers are recruited, they are put through pre-service training at NIE which prepares teachers not only for teaching of academic subjects, but also of skills and values. NIE's training programme is constantly being refined in light of new demands of the education service and learning from practice and research. Serving teachers continue to upgrade and update their pedagogical and subject-based skills and knowledge through formal and informal training. Courses on pupil management, counselling and other soft skills are provided to enable teachers to effectively manage the changing demands of pupil development. Professional sharing also takes place at the Teachers Network, through Learning Circles and other communities of practice. Teachers are also given opportunities to step out of the school environment to broaden their experiences and gain fresh perspectives through work attachment and professional development schemes. To support our teachers, we have made changes to the school environment that will give them the time and space to innovate and teach creatively.”