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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“As a rough guide, we expect about 10% of pupils in each cohort to go through the Integrated Programme. It is nota hard and fast target. It is an interim target that we have set. If we look at the current numbers, we will have about 8-9% of pupils in Secondary 3. Once we get up to the steady state in each of the current IP schools, about 8% of our students would be covered. So, we will assess the situation as we go along. The 10% guideline is a sensible one for now. Character development and non-academic activities are provided more space for in the Integrated Programme. If we look at the IP schools, they are in fact doing that. Each school has its own programmebut there has tended to be greater emphasis placed on non-academic development, be it in character development or other specific, non-academic activities in the IP schools since the programme was launched. HOUSING AND DEVELOPMENT BOARD FLATS (Safety and maintenance of windows) 13. Dr Amy Khor Lean Suan asked the Minister for National Development with the impending implementation of the Building Maintenance and Strata Management Act, whether HDB is or will be looking into ways to help and educate affected residents deal with the need to ensure that their windows do not fall off by getting contractors to check and, if necessary, change the windows. The Minister of State for National Development (Mr Cedric Foo Chee Keng) (for the Minister for National Development): Sir, under their Lease Agreement with HDB, HDB flat owners are responsible for maintaining the windows in their flats in good condition. Like private sector homeowners, they need to comply with the Building Maintenance and Strata Management Actwhich requires them to maintain their windows properly and ensure that they are safe.”
“These additional activities are made possible because of the flexibility offered by the IP. As the IP only started this year, more time is needed for the full benefits of the enhanced curriculum to be felt. On the whole, however, parents and students have been positive about the activities and programmes offered by theIP schools. As with any change to the school system, there will be some adjustments in the initial stage as we go up the learning curve. We are confident that our IP schools will ensure that their students reap maximum educational benefits from the programme.”
“There are currently two schools and two families of schools that are offering the Integrated Programme (IP) this year. They are Anglo-Chinese School (Independent), National Junior College, the Hwa Chong family of schools, and the Raffles family of schools. A total of about 4,700 Secondary 1 and 3 students have joined the IP this year. From 2005, Dunman High School, NUS High School for Mathematics and Science, Temasek Junior College and Victoria Junior College, willbe offering the Integrated Programme. The intent of the IP is to give our students more time and space to engage in broader learning experiences beyond the regular curriculum. While it is still early in the experience of this new programme, the schools are making good use of the space offered by the IP for a wide range of activities and learning opportunities. Through projects and research work, for example, students are given more opportunities to explore and apply the concepts that they have learnt. Some schools have set aside one week in a term as a sabbatical for students to take leave from their studies and take partin enrichment activities of their choice, eg, in digital music, virtual reality or environmental science research. Another innovation is a series of inter-disciplinary colloquia at intervals of a few months, which bring together experts and teachers in different fields and disciplines. Some of the schools have also increased the number of mentorships and attachments at research institutions as part of their Integrated Programme. In addition, as announced earlier, Dunman High School and the Hwa Chong family will also be offering the Bicultural Studies Programme for Chinese, with opportunities for up to six months of immersion in China for selected students.”
“Some time early next year, we intend to put out fact sheets for every parent, to be distributed through the schools for each level, ie, primary, secondary and so on, so that parents know, for different levels, whatall the changes are about, and howthey add up. It is a continuing process. IMPLEMENTATION OF INTEGRATED PROGRAMME (Update on progress) 12. Mr Gan Kim Yong asked the Minister for Education whether he will give an update on the progress of the implementation of the Integrated Programme.”
“First, I would not describe the changes as drastic or representing an overhaul. Our system is basically functioning quite well. There are some new initiatives that mainly build on previous initiatives, but they basically boil down to a few very simple points. We are introducing more flexibility and more diversity. It is what parents and students want. A student with a special talent in the arts, for instance, is keen that we are providing new opportunities, both within the mainstream, for certain schools to have stronger niche programmes in the arts, starting from primary school, as well as to have a specialised school for the arts, which is going to be set up. So, for each of the changesthat we are introducing, there is demand anda keenness on the part of the people for whom these changes were meant, people with that particular interest or talent. When we add them all up together, it looks like many changes. But they appeal to different groups of students with different learning styles, talents and interests. And that is the whole idea. We have a system that is rock solid and that allows us now the flexibility of providing more options and choices. We will have to continue our communication process. SomeMembers may have noticed over the last few weeks that the Straits Times, for instance, had put out quite extensive summaries of all the policies that have been introduced, with their own examples and colouring, but quite an effective set of articles that summarises what we are doing. The Ministry itself is also undertaking this communication.”
“I would like to thank the Member for his question. About a year and a half ago,we did take a fundamental look at the pre-school sector and, in fact, provided the pre-school industry with a broad framework for curriculum development that we felt was appropriate for our children at that age -from 4 to 6. Theresponse from the pre-school sector has beenpositive, both the major pre-school providers as well as the various smaller operators. Our main initiative is really to improve the quality of teaching in the pre-school sector. Our guidelines are known. We provided the pre-school sector some time to be able to achieve the required guidelines and provided them with some incentives to also achieve them in time. That is still work-in-progress. At this point, we are quite confident that by 2008 we would have met our key objectives in upgrading the quality of teaching in our pre-school sector. Assoc. Prof. Ngiam Tee Liang (Nominated Member): I would like to ask the Minister: in view of all these very drastic changes - it is a major overhaul of the education system - when will the Ministry come up with a comprehensive publication that setsall these out? With all these bits and pieces of changes, many parents are very confused now. Their mindset is still on the old system, and we need to educate the public in a very systematic and holistic way.”
“Ownership is a process. It starts, in fact, before we finalise any policy changes. If you take the major changes that we are talking about, for instance, the new junior college curriculum, the new Normal (Technical) curriculum, changes in the admission procedures and the changes to the teaching of the Chinese Language that Parliament will soon be debating, there is a process of consultation thathas beendeep and wide. Inparticular, we have involved teachers themselves, getting their ideas and, as we develop new policies, getting their refinements of the policies.By the time we announce the policy, it is not something thatis going to be new to teachers. But post-announcement, there is also awhole processcascading down through school leaders to teachers andto parents. It is hard to say when full ownership has been achieved. But my sense is that on the ground, there isa belief that these are the right things to do, these are the right directions for us to proceed in. It takes a bit of time for every teacher to acquire the requisite skills and knowledge to implement changes well. That is why we provide them with not just a one-off briefing but a series of training programmes and exposure.But there is a certain confidence in the system that these changes make sense, and we will make them work.”
“The Director of Schools has regular meetings with all school leaders to discuss and clarify policy and implementation issues. School leaders, in turn, communicate these changes to teachers and students in the school, and, where necessary, to their parents. Schools are also engaging more actively with parent support groups, which areuseful channel to help parents understand how the school's programmes benefit students, and to draw on their support and ideas.”
“Within the academic curriculum, we will also be introducing a broader and more flexible junior collegecurriculum from year 2006. Third, we have a series of continuing initiatives to support our teachers in their efforts toraise the quality of education that we provide our children. We are reducing class size in the early primary years starting from next year, and reducing the pupil-teacher ratio across the board over the nextfive years. Schools are being given increased manpower grants and counselling resources, to provide greater support to teachers. These initiatives, taken together,will give teachers more space to reflect on their teaching, experiment with new techniques and upgrade themselves professionally. And each time we change our curriculum, we engage teachers in briefings and training to ensure that they are well-equippedwith the necessary skills and knowledge to implement the changes well. We have consulted our stakeholders extensively on the changes that we are making. There is broad agreementon the intent and direction of these changes, as being essential to providing a conducive environment to developing our students to the fullest. In September, we started a series of Education Forums with students, teachers and parents respectively, as well as with leaders in industry, to communicate the intent of educational changes as well as obtain views on what we should do. Their feedback has been valuable in thinking through our policies and how they are implemented on the ground. This process of regular engagement with our stakeholders in education will continue. MOE also spends effort and time to communicate with teachers and school leaders.”
“Mr Speaker, Sir, the changes taking place in education are not new. They reflect the stepwise implementation of the broad initiatives that the Ministry of Education has embarked on in recent years. First, we are introducing greater flexibility and diversity in the education system. We have introduced new types of schools and programmes, such as the Integrated Programmes and the Specialised IndependentSchools. We are also broadening the choices that students have across the system, to help them build on their strengths and interests. This includes introducing greater choice in the subjects they take, and in the study of the mother tongue language. It also includes greater flexibility in the implementation of streaming into different courses in schools. Further, the Normal (Technical) curriculum is being customised and will offer electives to better match the learning style of this group of students. Primary schools will be able to develop stronger niche programmes, supported by a Pro- gramme for School-Based Excellence from next year. At the post-secondary level, the ITEs and polytechnics are also broadening their offerings. The university sector is moving towards a more competitive and diversified landscape. Second, we are refocusing our efforts to provide a broad-based, holistic education for our students, with an emphasis on academic training, on CCAs and on character development. This is being reinforced by a broadening of admission procedures. Secondary schools, junior colleges and universities are being given a greater degree of flexibility in admissions, to allow for a broader measure of student talents and achievements. These changes have also been complemented by the new School Achievement Tables, which replace the old ranking tables.”
“Despite the apparent similarity of the issue, ie, safe deposit items, this is a completely different question. Heightened risk management, of course, applies across the bank's operations. This was an isolated incident specific to safe deposit boxes, but it illustrates a more general principle that we need to be more alert to a range of operational risks, be it physicalor security risks or traditional risk management issues like market risk,and so on. We do not have a specific policy to do with safe deposit boxes, but we expect banks to take sensible actions, to beon the alert and to think hard about their own reputation. ASIA-MIDDLE EAST DIALOGUE (Benefits) 7. Mr Ahmad Khalis Bin Abdul Ghani asked the Minister for Foreign Affairs (a) how does the Senior Minister propose to proceed with the vision of a dialogue between South-East Asia and the Middle-East; (b) what major benefits can Singapore, by itself and as a member of ASEAN, achieve from this dialogue; and (c) whether the dialogue will help to enhance security in the South-East Asian region and worldwide.”
“Mr Speaker, the Monetary Authority of Singapore places importance on our banks exercising comprehensive and effective risk management in Singapore and in their overseas operations. This includes being risk conscious and putting in place a robust risk management framework and control processes to manage the risks. The recent incident in DBS' Hong Kong operations is unfortunate. The bank's investigations into the incident have concluded that it was the result of a combination of factors, namely, human error, inadequate oversight of the project by the bank and its external service providers, and gaps in internal procedures. While it is an isolated incident, it has certainly heightened the risk consciousness of the banking industry, and reinforced the importance of banks being vigilant in operational controls. DBS is tightening its procedures to ensure that incidents of this nature will not happen again.”
“Sir, it is still early days. We are working this out. We have a committee chaired by the Director of Schools, and schools are currently working out their plans for implementation. The starting position is one of shifting activities from Saturday into the weekdays. But I do not want to constrain schools at this point from having some use of Saturdays for certain activities where they think practical. Let us see what they come up with. The Ministry will have a look at their plans and ensure that the principle of not over burdening teachers and ensuring that teachers have a five-day equivalent work week is maintained. EMPLOYABILITY SKILLS SYSTEM (Rationale for implementation) 7. Mdm Ho Geok Choo asked the Minister for Manpower (a) what is the rationale for the implementation of the recently announced Employability Skills System (ESS); and (b) how can it be ensured that this new framework that costs $900,000 will be effective in facilitating the unemployed and workers at risk of displacement in their search for jobs.”
“Sir, on her first question, I am not keen to encourage a culture where people clock in and clock out with some precision. Teaching is a labour of love in many ways. It requires commitment. It is a challenging profession, but you cannot mark exactly when you clock in and clock out. It is much like many other professions. If occasionally a teacher has to do something on a Saturday because it is an activity of importance to the school - they might want the students to benefit from extra CCA training or special enrichment activity - I would not be keen to have to work out schemes of compensation. I think these things can be dealt with sensibly in the context of the school where everyone shares in the mission and shares in the objective of the school, so that teachers who put in extra effort are recognised. Sometimes they might be given time off and, at other times, their duties and responsibilities in other areas might be reduced. This is what school leadership is about. So working out a Ministry scheme would not be the right approach. Her second question is on the community's use of facilities. It is actually proceeding quite well. We can scale it up. I think this scheme that we are working out now with MCYS and the Singapore Sports Council is a promising one. We are piloting seven schools. It is working quite well. So let us take that forward. I do not see major systemic impediments to this. It is a practical issue. We could deal with security and we have got to ensure that there is absolutely no compromise on our students' educational experience - the fact that they have got to have those facilities available to them when the school decides they are necessary.”
“Sir, we are quite mindful of that. The basic precept of moving towards a five-day work week is that our teachers, like other civil servants, will work what I might call a five-day equivalent week. But like in other professions, sometimes you have to work on a Saturday, and many teachers would want to do so for particular reasons. But it should not be the norm, and, in general, a five-day equivalent work week should prevail. So schools are working this out. Schools will find different ways of spreading the responsibilities of their teachers. There will be some teachers who will be a little more engaged than others on Saturdays because of the nature of the activity they are supervising. And those teachers will find that they will have lesser duties during the work week. I will leave it to schools to work out. There are several schools where I found that, in fact, a five-day week with very little activity on Saturday is workable. It depends on the nature of their activities and the profile of their students and CCA activities. So we will bear that in mind as one of our key precepts as we go forward.”
“Let me, first, say that the overall scale of academic work, as well as non-academic work, is less intensive in primary schools compared to secondary schools and JCs. And particularly for our lower primary kids, there is not a very strong case to extend them in school throughout the day. They tire more easily. They require a little more parental supervision and home attention. Not many parents will favour a full day school for lower primary kids. But we are moving towards partial single session so as to allow, especially the upper primary kids - primary 3 to primary 6 - to have the space in the afternoons to engage in various school programmes, be it CCA or learning activities of one form or another. I think this is a pragmatic solution. The lower primary kids will occasionally do the same, but it is less frequent and less intensive. Moving all our primary schools to single session will be very expensive as well. It means building 40 more schools, which means $800 million. And I think we can use those resources much more effectively in other areas, especially in our continual efforts to improve the quality of the teaching profession - hire more teachers, add more quality educational programmes, allow schools to build niches of excellence.”
“I think the Member's point is a fair one. We are not moving from one extreme to another. It is not a black and white situation. Saturdays are good days to organise activities for our students, whether it is CCAs or enrichment or unstructured activities. We have to do so in a way which does not mean a five-and-a-half-day work week for our teachers. So it may mean making better use of student leaders themselves, allowing more opportunity for student leadership. It may mean allowing parents and families to come in and take part in CCAs, for instance, in primary schools. Some of our primary schools are, in fact, doing this very successfully. It achieves both family bonding as well as gets the kids involved in something healthy and allows them to use their energies well. So schools will work these things out, making sure we do not overburden the teachers but using Saturdays to stretch our kids a little, engage them in something purposeful.”
“Sir, may I have your permission to answer Question Nos. 5 and 6 together, please?”
“Unfortunately, I do not have the data with me. Reporting of suspicious transactions is a mandatory requirement under the law. Failure to comply is a criminal offence. So our banks take it very seriously. You will see the number moving up and down from year to year. I do not think we see an uptrend as such. Yes, there have been prosecutions. In fact, over the last three years alone, there have been more than 10 prosecutions by the CAD. PRIME MINISTER'S VISIT TO MALAYSIA (Update) 3. Mdm Ho Geok Choo asked the Minister for Foreign Affairs (a) if he will update the House on the Prime Minister and Minister for Finance's recent visit to Malaysia; (b) what was the tipping point that led to the new wave of good tidings between the two Prime Ministers; and (c) how can it be ensured that the new relationship will be maintained for the mutual benefit of both countries.”
“MAS conducts both offsite reviews and onsite inspections of banks and financial institutions to ensure that these measures are in place. External auditors engaged by banks and financial institutions are similarly required to audit for compliance with MAS regulations. Through these rigorous processes, banks have identified and filed suspicious transaction reports with the Commercial Affairs Department CAD). CAD investigates these reports and, where it finds wrongdoing, it will take firm action. In August 2003, Singapore completed its IMF/World Bank Financial Sector Assessment Programme. The team of assessors 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 for requirements to combat money laundering and terrorist financing. Singapore will stay fully committed to the international effort against money laundering and terrorist financing. Our high regulatory and supervisory standards are recognised internationally. The integrity of our financial sector is a key asset which we intend to preserve.”
“The US State Department's International Narcotics Control Strategy Report for 2003, which was released on 1st March 2004, listed a range of jurisdictions as being of primary concern in respect of money laundering from international narcotics trafficking and other serious crimes. Singapore was included in that list together with the UK, France, Germany, Hong Kong, Italy, Japan, Luxembourg, Switzerland, as well as the US itself. In short, all the major financial centres of the world were included in the list. The US State Department Report did not provide any basis for suggesting that Singapore-based financial institutions engage in transactions involving a significant amount of proceeds from international narcotics trafficking and other serious crimes. However, money laundering must be a concern in every country, and especially in international financial centres which handle huge volumes of transactions on a daily basis. Singapore takes its responsibilities very seriously in this regard. We are a member of the Financial Action Task Force (FATF), the international body that develops policies and standards to combat money laundering and terrorist financing. The US State Department's Report indeed acknowledges that Singapore strongly opposes money laundering and terrorism financing and has been a key player in the regional effort to stop terrorist financing in Southeast Asia. MAS requires all banks and financial institutions operating in Singapore to institute rigorous measures to guard against money-laundering and terrorist financing. These include the need to identify and know their customers and their customers' source of funds. They also have to maintain the records necessary to reconstruct and explain details of transactions, and to report all suspicious transactions.”
“EMPLOYMENT (AMENDMENT) BILL Order for Second Reading read. 5.12 pm”
“So we set up the Sports School because we have some students who are outstanding in sports and they need a different curriculum, different ways of organising the school, different time-tabling arrangements, even different ways of arranging their classes. Here, we have students who are very strong in Mathematics and Science who should not be constrained and should be given not just a bit more than the usual model of education. They should be given a different model of education, not the regular school curriculum - new framework, new orientation, teachers with a special passion for the subject. And the link between the university and the High School is, I think, a very promising one for both NUS and the NUS High School. Mr Deputy Speaker, Sir, I have confidence that with NUS providing its support in the area of Mathematics and Science teaching and learning to NUS High School, our students who are talented in Mathematics and Science would soon have a school offering a highly stimulating and unique learning environment - one that is able to leverage on NUS' expertise and reputation and that is able to capitalise on the students' talents and passion. Singapore will gain from developing their talents to the fullest. 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. EXEMPTED BUSINESS (Motion) Resolved, That the proceedings on the business set down on the Order Paper for today be exempted at this day's sitting from the provisions of Standing Order No. 1. - [Mr Mah Bow Tan].”
“As far as infrastructure goes, it is a stand-alone school, but it will be able to tap on some of the NUS' resources, particularly its library e-resources and its IT resources. I should add that MOE will support the High School, just like it supports other independent schools. We have paid for the same proportion of the development cost of setting up the new school as we would do for any other independent school. And we will continue to provide annual capitation grants to the school on the same basis as the other independent schools. The NUS High School is an innovation in our school system. It breaks new ground. The involvement of a university for the first time in the High School on a more than cursory basis will be a new model. It will allow for new curriculum, for articulation of a High School curriculum with a university curriculum, for flexible use of university faculty resources without detracting from their core mission of teaching university students well. It will ultimately be a model that is a win-win for the school system and for NUS. It does not preclude and, in fact, does not displace the continuing efforts by research institutions in Singapore under A*STAR, our other universities and NUS itself from continuing to engage with our secondary schools and JCs - giving talks, mentoring students, and so on and so forth. But this new school goes beyond that. The NUS High School is part of a broader reorientation that is taking place in our school system to provide more diverse pathways to better meet the needs of students with exceptional talents and different talents.”
“If you look at top schools abroad, particularly those that are engaged in something like developing special talents in Mathematics and Science, not all their teachers are trained at teaching colleges. Some of them are just people with a passion for the subject and who have a way of reaching out to bright young talent. It is for the school to interview them and decide if they have got the attributes that meet its needs. So I have covered governance and personnel. Second is the issue of curriculum and examination. I think there again NUS can provide valuable support for the school without over-extending itself. It is an area where NUS can add value, formulating a new curriculum and one that leads on to a new qualification - the NUS High School Diploma. The school will be having quite a different structure of curriculum compared to a normal school. It will have a modular system of core and elective subjects. And the curriculum will be accredited by the NUS Board of Undergraduate Studies. The NUS High School will also allow for new modes of assessment, new types of examination as well as other forms of assessment, besides examination, and these will be scrutinised by its Academic Assessment Committee. This committee will ensure that the academic standards of the NUS High School are calibrated to the admission requirements of NUS itself as well as to that of other top universities in the world. Thirdly, another form of engagement between the university and High School, is that some of the students in the High School will be able to take undergraduate modules at NUS. Students will be mentored in their research work by NUS faculty members who will point them in the direction of new developments, excite their interest and seek to develop them to the fullest.”
“The university appoints both the principal and the vice-principal, and some of the university staff members are deployed to the school to teach and to help to develop the curriculum. In the case of the NUS High School, NUS will be actively supporting and taking a close interest in the school but will not be deploying any large amount of faculty resources to the school. It will not deviate from its core business of providing a university education. The university is very clear about that, and MOE is very clear about that. Let me elaborate a little. First, in the area of governance and personnel to run the school. The school board will be chaired by Mr Wee Heng Tin, former Director-General of Education. This will be once the School Board is appointed, which is after the NUS High School gets its legal status. The principal of the School, Professor Lai Yee Hing, is on secondment from NUS Science Faculty. The Assistant Principal, Dr Roland Su, has been assigned to the NUS High School but he will be joining the school as direct staff once the school gets its legal status. He is actually making a switch to become part of the direct staff of the school. Teaching staff, about 25, are recruited principally from the Government teaching service and from the private sector. Initially, it would be more from the Government. Over time, I think they will also recruit a fair number from the private sector. They will, in the first instance, have one teaching assistant from NUS. Over time, there could be a few more. And I would add, in response to Dr Amy Khor's specific question, that it is not necessary for all the teachers to be trained for teaching in the same way that our school teachers in our mainstream are trained. Not all of them will need to be NIE-trained.”
“And the school also invites university professors to teach a class once a week and whenever there are interesting new topics that should be covered in the curriculum. The education experience and environment challenges the students in these schools, many of whom end up qualifying for top universities, not just in China but in the US and elsewhere. Another good example is the Peking University Affiliated High School. The students are free to attend classes at Beida and to do research at the university. And, likewise, the students achieve high standards of excellence and are actively sought after by universities around the world. In most of these schools, I should add that the work done by the students in the High School as well as when they take undergraduate modules by sitting in classes at the university is given credit when they finally go on to university. They are allowed to accumulate credits while at High School. And this again adds to the premium attached to these High Schools. How far the university goes in its involvement with the High School varies. In the case of the teaching universities - or the Normal Universities as they are called in China - it is typically a closer involvement. For some other universities, the universities are involved in the governance of the school, typically have the principal seconded from the university to the school, but they do not provide a large number of staffing for the school. If I may give you another example, at the Number Two Secondary School attached to East China Normal University - the top teaching university in Shanghai - there is a close relationship between the school and the university which allows the university to play a prominent role both in the management as well as teaching in the school.”
“Sir, I thank Dr Amy Khor for her support for the Bill and useful comments and questions. I can understand her concerns over whether running a high school is a deviation from the core business of NUS, and whether it will detract from it providing a university education that is the best that it can be. First, let me say that the idea of a High School having strong affiliations with a university is not a unique one. It has been working well in a number of countries. In the US, the University of Chicago Laboratory Schools are good examples. In fact, they cater to students all the way from nursery up to High School, but the focus is principally on the High School level. Many of the High School students take classes at the University of Chicago, and get supervised or mentored in their research by world renowned professors. Another good example is the Hunter School, which is affiliated to City University of New York. Again, you have students who are, through the affiliation, able to receive an education that challenges them. These are intellectually gifted students typically. The students are allowed to take courses at either Hunter College, which is part of the City University of New York, or Columbia University. In China, there are several top schools with strong links to the universities. I myself have had the benefit of visiting and talking to people at several such schools, affiliated to top universities in Beijing, Shanghai and Guangzhou. They are all highly regarded and their students clearly benefiting from the links that they provide with the universities. For example, in Fudan University Affiliated Middle School, students take university level Mathematics courses.”
“Clauses 2 and 3 insert new sections after section 6 of the Nanyang Technological University Act and National University of Singapore Act, which set out the universities' power to borrow from the Government or external financial institutions, and to confer them with powers of investment. Clause 3 also amends section 5(1) of the National University of Singapore Act to enable NUS to establish institutions to provide education above primary level. Clause 4 is a savings provision relating to investments made and loans raised by the respective universities before the date of the amendments in the Bill. Mr Deputy Speaker, Sir, these amendments will give our universities greater flexibility in the sourcing and use of funds, so that they can be innovative and dynamic institutions. They will be better positioned to meet future challenges in a more competitive landscape, and to establish themselves as leading centres in a knowledge-based world. Sir, I beg to move. Question proposed.”
“This greater diversity of options and opportunities in the education system will better cater to the different needs and talents of our children, develop more unique strengths, and help us meet the challenges of a more complex and rapidly changing environment. Specialised Independent Schools, like the NUS High School, will help us to nurture peaks of excellence in diverse areas of study and endeavour. They will offer a different model of education, complementing the strengths of our mainstream school system. The NUS High School of Mathematics and Science will be tailored to the special abilities of students who are highly talented in mathematics and science. Such schools are not new. In the US, specialised schools in mathematics and science, like the Bronx High School, offer an enriched environment and programmes to maximise the potential of their students. These schools have proven to be very successful in nurturing mathematics and science talent. As a tertiary institution with expertise and resources in the teaching and learning of mathematics and science, NUS is well placed to set up a high school to groom outstanding talents in these areas. It will be able to leverage on its reputation and capabilities as a leading research and academic institution to offer a top quality education in the schools sector. Strong specialised schools, like the NUS High School, the Sports School and the planned school of the Arts, will add strength and diversity to the national schools system. Key provisions of the Bill Sir, I now move on to the specific amendments to the Act.”
“There is therefore a need to amend the two universities' Acts to allow the universities to borrow from the Government and external financial institutions and to invest their monies in such manner as they think fit. More broadly, the amendments will support moves to provide NUS and NTU with the institutional flexibility that they will need to respond to new opportunities and challenges. To make their next leap in quality, NUS and NTU must be dynamic and forward-looking institutions. They must have the room to differentiate themselves, to play on their respective strengths, to move into new areas of study, and make calculated trade-offs as they allocate their resources, so as to ensure the maximum benefit for their students. Rationale for setting up the NUS High School of Mathematics and Science Sir, the amendment of the NUS Act will also empower NUS to set up the NUS High School of Mathematics and Science. The High School will open its doors in January 2005 and will offer a six-year education from Secondary One to JC 2. The proposal to set up this school was endorsed by Parliament in November 2002, as part of the recommendations of the Junior College/Upper Secondary Review Committee. Setting up the NUS High School of Mathematics and Science is part of the broader re-orientation taking place in the education system to provide a greater diversity of pathways, programmes and mix of schools. We have introduced integrated programmes, Specialised Independent Schools, such as the NUS High School, and have opened up to a small, privately-funded school sector.”
“Sir, I beg to move, "That the Bill be now read a Second time." The Bill before this House seeks to amend the Universities (Miscellaneous Amendments) Bill to allow the National University of Singapore (NUS) and Nanyang Technological University (NTU) to have borrowing powers and to invest their money as they think fit. The Bill will also enable NUS to set up the NUS High School of Mathematics and Science. Universities' borrowing and investment powers Sir, the amendments will allow NUS and NTU to be given greater autonomy in the sourcing and use of funds. The current NUS Act and the NTU Act do not have explicit provisions for the two universities to borrow. It is essential that they have the powers to do so. It will enable them to make more efficient use of capital and to internalise their cost of capital for development projects. This is also as envisaged in the Ministry of Finance's framework for debt-financing for all statutory boards, which was implemented with effect from 1st September 2004. Under this framework, statutory boards are expected to take loans to partially finance their capital projects. Further, the universities have to reap good returns from their monies through prudent investment. The income from their investments will, over time, be an additional source of revenue for the universities. However, currently, the NUS Act is silent on the investment power of NUS. While NTU has a clause in its Act that enables the university to invest its monies, the clause, as it stands, differs from the standard clause required by MOF. The amended investment clause brings NTU in line with the standardised investment clauses for all statutory boards.”
“I would put it another way. Consumers, when they enter financial markets or deal with a financial institution, do have a certain expectation of regulation, and the obligation is on us to ensure high standards of disclosure and proper dispute resolution mechanisms. But if we go into either ostrich eggs or some other exciting product offered by an unregulated institution, then we go in with our eyes open. We take our own risks. Most retail investors do not go into these products. The individuals who do so are those who know full well that this is an unregulated market. That is usually why very high returns are promised - because there is very high risk. It will also not be practical for the Government to provide any assurance or regulation over all these new products and players who are really not part of the financial industry. It is just not possible for us to do it, and philosophically, it may not be desirable either. CENTRAL PROVIDENT FUND (Government's assistance to vulnerable groups) The following Question stood in the name of Mdm Ho Geok Choo - 10. To ask the Minister for Manpower (a) what forward strategies are being formulated with regard to our Central Provident Fund (CPF); (b) how does the Government propose to help the vulnerable groups comprising non-working spouses, non-contributing CPF members and the working poor in their retirement days; (c) if he can provide a breakdown of the number of people in these categories; (d) how can the Government tap on community and self-help groups to assist these people; and (e) how does the Government propose to help these vulnerable groups respond to the social and economic environment changes.”
“I think that is a useful suggestion. We cannot make the template too detailed. We have to allow for variation. The products differ. So, sometimes they do not fit within the same template. But certain guidelines on best practices can be formed. At the very least, the best practices of existing players can be shared within the industry and, over time, consumers will know that that is the best practice they should ask for when they deal with the financial adviser.”
“Sir, the short answer is "No". We do not intend to regulate ostrich eggs or, for that matter, the wide variety of other eggs that might be offered on the market. It is not possible. It is important that we have a transparent system of regulation for all financial products, and I think in the last few years we have made good progress on that. The Financial Advisers Act streamlines both the regulations as well as the codes of best practices across securities firms, insurance firms and the banks, as well as independent financial advisers. That is a major step forward. What we are doing now is to take forward the dispute resolution mechanism. It starts off with the banks - any product distributed by a bank. The insurance industry, both the life insurance and general insurance associations have also got together to set up IDRO, which is working quite well. But there are gaps in terms of fund management products, financial advisers and so on. So, now we are working to integrate all dispute resolution mechanisms, and that should be ready by sometime early next year.”
“Financial education, however, has to be a long-term, sustained effort. We have to continually raise awareness among consumers of the risks inherent in any product that offers high returns, and of the need to seek information and advice before committing to investing in a product.”
“MAS also provides quite regular guidance to the industry on the standards we expect of them. For example, we have made known our views on how remuneration should be disclosed. We will also be issuing a paper to highlight good practices observed in the industry, as well as guidelines to deter undesirable churning of products. Investors who feel that they have been subject to mis-selling or misrepresentation should first take up the matter with the financial adviser or the institution involved, failing which, they can turn to the existing industry dispute resolution schemes. We currently have the Association of Banks' Consumer Mediation Unit and the Insurance Dispute Resolution Organisation (IDRO), both of which were set up last year. But we are taking this further. MAS is also facilitating the setting up of an industry-wide integrated dispute resolution mechanism for all financial products and service providers. Mdm Ho asked about initiatives to ensure that investors are more educated and better informed. The Government launched a national financial education programme called MoneySENSE in October last year. It is a collaborative effort involving several Government agencies, MCYS, MOE, CPF Board, People's Association and, of course, the MAS, and industry associations and various other community organisations. It aims to help Singaporeans acquire skills and knowledge to better manage their finances and make well-informed financial decisions. MoneySENSE has issued consumer alerts and tips to guide consumers when they deal with financial advisers and to help them make sense of the various investment products. MoneySENSE has also organised a number of seminars and workshops covering topics, such as basic money management and financial planning.”
“Mr Speaker, Sir, Mdm Ho has asked how Singaporeans have fared in their investments in 'lucrative' funds. MAS does not keep statistics on the profits and losses of investors in their respective investments. I think Mdm Ho was concerned that investors may have been attracted to certain investment products on the basis of potentially high returns, without being aware of their inherent risks. MAS' role is to require that investors are provided with full, prompt and accurate disclosure of all material information, so that they can make informed decisions. To take Mdm Ho's example of funds, fund managers are required to disclose the investment objectives of the fund, the potential risks of the fund, as well as the relevant fees involved. The fund management industry should also aim to provide disclosure that is not only technically accurate but helpful to investors in making informed judgments. This can only benefit the industry, as investor confidence in fund management products grows. However, investors must ultimately bear responsibility for their decisions. In selecting an investment, investors should consider both the potential returns and the risks of the product they intend to invest in. Regulation can never protect investors from investment risk. Mdm Ho was also concerned about overly aggressive behaviour by fund managers in recommending investment products. The Financial Advisers Act sets out market conduct rules regulating the sales and advisory process of all investment products. Recommendations on investment products must have a reasonable basis, taking into account the investment objectives, financial situation and particular needs of the person to whom the recommendation is being made.”
“This year, in fact, we have 25% more students taking Higher Chinese in our secondary schools. Second, we have 25 SAP schools at the primary and secondary levels, each with their own programmes to nurture an interest in the language and culture. Further, we have the Language Elective Programme (Chinese), offered at three junior colleges and catering to about 150 students, which aims to deepen students' appreciation of Chinese Language and Literature. The Bicultural Studies Programme goes further than these other programmes, but by no means detracts from them. Each of these programmes is essential. In different ways and to different extents, they will groom students with a good foundation in Chinese Language, history and culture, and an understanding of contemporary China. Some students, particularly those on the Bicultural Studies Programme and LEP (Chinese) are also likely to pursue further studies in universities in China. Ultimately, these programmes, taken together, aim to develop a group of students in each cohort with a lifelong interest in the Chinese language and culture, and the ability to help Singapore engage with China in the years to come. LRT AND MRT/NEL STATIONS (Placement of heritage signboards and history templates) 7. Miss Penny Low asked the Minister for Transport if he will consider placing heritage signboards and brief history templates at suitable LRT and MRT/NEL stations to explain the names of the stations and help cultivate a sense of history and belonging to Singapore.”
“Mr Speaker, Sir, the Bicultural Studies Programme is a key plank in our efforts to groom a core group of students with a confident grasp of the Chinese Language and culture, and contemporary developments in China. It is being introduced in three schools, Dunman High School, Hwa Chong Institution and Nanyang Girls' High School, from next year. These schools were chosen because they are SAP schools and offer Integrated Programmes. They have both a conducive school environment for developing an understanding of Chinese language and culture, and the time and space to run in-depth programmes, including an extended period of immersion in China for the students following the Bicultural Studies Programme. In addition, the three schools have strong and established linkages with schools in China, which will be an advantage in their immersion programmes. The three schools were therefore natural choices, and in fact had already been working to introduce various elements of Chinese language and China-related studies into their Integrated Programmes. They were ready and did not have to rush to come up together with a new programme or new approach to meet MOE's needs. While not all students in the Bicultural Studies Programme in these three schools will be awarded the new SAP scholarships, we expect all of them to undertake a broadly similar course of study, at the secondary and JC levels. The Bicultural Studies Programme builds on our other existing projects and efforts to nurture an abiding interest in students for the Chinese Language and to encourage those who are able to master the language to go as far as they can. First, a significant group of students in each cohort take Higher Chinese Language (HCL), which is offered from the primary to JC levels.”
“The information requested is attached in the table below. The Secondary 3 figures show the number of students dropping out while in Secondary 3 (ie, after Secondary 2). The Secondary 4 figures show the number of students dropping out while in Secondary 4 without completing the N or O-levels. Table : Drop-out numbers and rates for 2002and 2003 Secondary 3 (2002) Secondary 3 (2003) Secondary 4 (2002) Secondary 4 (2003) Girls (No.) 215 187 89 85 Boys (No.) 242 206 97 104 Girls (%) 1.0 0.7 0.5 0.4 Boys (%) 1.1 0.8 0.5 0.5 UNEMPLOYMENT 16. Mdm Cynthia Phua asked the Minister for Manpower (a) what is the current unemployment rate; (b) what percentage of the work force is holding short-term (2-year) contract work; and (c) whether any studies have been carried out on short-term employees and their commitment to good work ethos.”
“With the recent establishment of the SMU School of Economics and Social Sciences and the NTU School of Humanities and Social Sciences, the options for Arts stream students will increase further. LAWS TO PROTECT WHISTLE-BLOWERS 42. Mdm Halimah Yacob asked the Prime Minister and Minister for Finance whether his Ministry will consider introducing laws to protect whistleblowers, akin to the laws in the UK and US in order to improve the standards of corporate governance and disclosure in Singapore.”
“The NUS Faculty of Arts and Social Sciences (FASS) takes in an average of 1,400 undergraduate students every year from the A-level cohort. Of the A-level intake into FASS this year, 55% were Arts stream students and 44% Science stream students. While the proportion of Arts stream students in the FASS intake has hovered around the same level over the past three years, the proportion of Science stream students has increased. This increase is largely accounted for by the phasing out of the Commerce stream in Junior College since 2001, which has produced a larger gain in the number of Science stream students, compared to Arts stream students, in Junior Colleges and Centralised Institutes. Students with at least one A-level Commerce subject accounted for 2% of the FASS intake in 2004, down from 9% two years ago. The selection of students for university admission is based on merit. Applicants are admitted on the basis of their A-level performance as well as a Faculty Score. For admission to the FASS, NUS has no special subject prerequisites, and does not distinguish between Arts and Science students. However, students with exceptional achievements in a particular area may be considered for admission on a discretionary basis, independent of their A-level results. A student with outstanding achievements in literature, for example, may be considered for admission to FASS on that basis. Besides NUS FASS, there are other enrolment options for Arts stream students in NUS as well as NTU and SMU. Possible courses they can consider include Business Administration and Building and Real Estate at NUS, as well as Accountancy and Business at NTU and SMU.”
“Rather than prescribe a specific approach, the Bill will allow a listed property trust to choose to be structured and regulated as either a collective investment schemeor a business trust. To avoid confusion to investors, any property trust regulated as a business trust will be prohibited from being referred to as a "Real Estate Investment Trust". Conclusion In conclusion, the capital markets are constantly innovating and the regulatory framework must respond. This Bill facilitates the offer of units and derivatives of units in business trusts in Singapore, and in so doing, creates a new asset class which could potentially add depth and sophistication to Singapore's capital markets. 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. – [Mr Tharman Shanmugaratnam]. Bill considered in Committee; reported without amendment; read a Third time and passed. CRIMINAL LAW (TEMPORARY PROVISIONS) (AMENDMENT) BILL Order for Second Reading read.”
“Registration of business trusts under the Business Trusts Bill will be voluntary. However, now section 282C(1)(a) of the Bill will require business trusts offered to retail investors to be registered under the Business Trusts Bill and therefore subject to a governance framework which seeks to safeguard investors' rights and establish the duties and accountability of trustees and their directors. Amendment to the definition of securities The definition of "securities" in the Securities and Futures Act will be amended to include units and derivatives of units in a business trust so that the provisions under the Securities and Futures Act relating to securities will also apply to business trusts, including provisions relating to market conduct. With the amendment to the definition of "securities", financial advice provided in relation to units and derivatives of units in a business trust will also be regulated under the Financial Advisers Act. Regulation of take-over proceedings for business trusts The definition of "take-over offer" in the Securities and Futures Act will be amended so that take-over offers for units in business trusts will be subject to the relevant provisions under the Securities and Futures Act and the Singapore Code on Take-overs and Mergers. This is to ensure a fair and orderly market for take-overs of business trusts. Regulatory treatment of property trusts Property trusts or Real Estate Investment Trusts (REITs), as they are more commonly known, are currently regulated as collective investment schemes (CIS) under the Securities and Futures Act. Property trusts fall within both the collective investment scheme and business trust regimes.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Securities and Futures Act (SFA) was passed in October 2001. In September 2003, the Securities and Futures Act was amended to implement some of the recommendations of the Company Legislation and Regulatory Framework Committee (the CLRF Committee). The second phase of amendments, targeted for First Reading in October 2004, will give effect to the remaining recommendations of the CLRF Committee which the Government has accepted. Prior to the second phase, we are amending the Securities and Futures Act concurrent with the new legislation which Parliament has just passed, which provides for a new business trust structure in Singapore. The Securities and Futures Act amendments will provide for the regulation of offers of units and derivatives of units in business trusts and take-over proceedings for business trusts. The Monetary Authority of Singapore (MAS) invited feedback from the industry and the public on the draft Bill in December 2003. MAS has posted on its website its detailed responses to the comments received during this consultation. Mr Speaker, Sir, I will now go through the main provisionsof the Bill. Regulation of offers of units and derivatives of units in business trusts The Bill introduces a new Division 1A in Part XIII of the Securities and Futures Act to regulate the public offers of units and derivatives of units in business trusts in the same way as offers of shares in corporations. The intention is to enable investors to make informed investment decisions by requiring all material information relating to the business trust to be set out in the prospectus. Investors will also have the same statutory protections that subscribers to share offers have.”
“If they register under the Business Trusts Act, they will not be able to use the name "REITs" and they will be subject to the tax treatment that appliesto all business trusts. In other words, they will be taxed at the corporate rate, at the trustee level, and distributions of the trust would be treated as exempt one-tier dividends in the hands of unitholders. I am sure the Minister for Finance heard Mrs Fang Ai Lian'sarguments and will consider them. But the position at this point remains quite clear. Mr Speaker, I think I have covered the main points that were raised by the three speakers. So, once again, I would like to thank them. 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. Mr Speaker: Order. I suspend the Sitting and will take the Chair again at 4.40 pm. Sitting accordingly suspended at 4.18 pm until 4.40 pm. Sitting resumed at 4.40 pm [Mr Speaker in the Chair] SECURITIES AND FUTURES (AMENDMENT) BILL”
“The details of appeals procedures will be set out in the regulations that MAS will release and names of appeal panel members, which he had asked about, will be made public. Mrs Fang Ai Lian had several suggestions on how we could further develop the capital markets including REITs. Mr Ong Kian Min had also specifically mentioned the market for bonds, including listed bonds, and I agree with their observations that these are instruments worth developing. They add diversity and depth to our capital markets. MAS is promoting both these instruments. In the bond market,we are working very hard trying to promote a diversity of borrowers, both local and foreign, government and non-government, multi-lateral agencies as well -even the African Development Bankhas raised funds inSingapore. We will continue to do this through road shows, through the investment banks as well as on our own. MAS is going out with the industry to market the Singapore Dollar bond market. As it develops greater liquidity, I think you will find that there will be greater incentives for corporates to participate in the bond market. And the growth of the corporate bond market has been quite significant in the last two years.It has been much faster than the growth in other funding instruments. So we will continue to do this. The tax position on REITs, if they choose to register under the Business Trusts Act, will be no different from what it is for other business trusts. In other words, the fact that they are REITs and they can alternatively be registered as a collective investment scheme will not change the tax treatment if they register as a business trust. So, REITs have a choice as to where they want to register.”
“It is, of course, open to the sponsoring entity of the trustee-manager to provide some form of guarantee to creditors, if necessary. The loan agreement can contain such guarantees so as toprovide some further assurance to creditors. But we would not want to depart, at this point, from the basic positionin trust law that you can only claim the assets of the business trust if the trustee-manager had, in the first instance, acted in good faith and without breach of trust in incurring liability. We are also a little wary of departing from this position because it could encourage creditors to be complacent in performing their due diligence checks, and the trust property may be diminished by such creditors' claims to the detriment of unitholders. In response to Mr Andy Gan's specific question, creditors would not have rights that go beyond what is provided for currently under trust law. That is the other side of the coin. Mr Andy Gan had also raised the issue of penalties being a little high under the Business Trusts Bill. MAS has revised the penalties in all the Acts that it administers - the Securities and Futures Act, the Financial Advisers Act and so on not very long ago. In fact, they were revised upward substantially. Some of these penalties in the Bill may look a little higher than Members are familiar with but they are in line with all the other Acts that MAS now administers. They are not particularly high. For instance, if Members look at breach of duty by a trustee-manager, the penalty is $100,000. I would say that it is meaningful enough but it is not so onerous as to deter people from going into the business of running business trusts. Mr Andy Gan had also asked about advisory committees and appeals procedures.”
“This explains thevarious corporate governance and audit committee requirements which we have placed which go somewhat beyond what the normal Companies Actrequirements do. It will be a little onerous for small companies. Mr Ongis right. But I think it will typically be large companies running infrastructure businesses that will avail themselves of this new business structure and this new legislation. Smaller businesses, if they wish to run business trusts, can always offer units in the business trust to accredited institutional investors; in other words, non-retail investors and they will not be bound by the requirements of the Business Trusts Bill. So that opportunity is there. Both Mr Ong and Mr Andy Gan have raised the issue of creditors' rights. It is a very important issue. We are not going to deviate from the trust law position on creditors' rights. The trust law position will continue to apply to business trusts. We have received comments from various parties during the consultations, both for and against this position. We have decided that we should stick with this position - the trust law position will apply. It means that creditors can be repaid from the assets of the business trust provided the trustee-manager has not acted in breach of trust in incurring the liability. Australia and Canada also have not departed from trust law in this regard. In the UK, there have been some discussions as part of their corporate law review but there has been no change implemented as yet. Mr Ong is right that creditors will have the added responsibility of verifying whether the trustee-manager is acting in breach of trust and, consequently, whether creditors can claim the assets of the business trust. This is something that creditors will have to do.”