Thomas Chua Kee Seng
Singapore
“Thank you, Minister. I am very glad to notice that the A*STAR programme has attracted over 700 SMEs in 678 projects. I would like to ask what will happen after the researchers finish their two-year secondment. Will these projects be able to continue after the departure of the researchers?”
“Therefore, I suggest we undertake education with a broader perspective, and give more emphasis to the development of high-quality human resources, so as to promote the future development of our economy and businesses. Funding for Postgraduate Programmes 5.15 pm”
“Even if they do not expand overseas, they have a strong social function in creating employment opportunities, and I hope the Government would not ignore them. The Government can do even more to create a more favourable business environment for micro-enterprises and SMEs.”
“For companies with the intention to upgrade but are not from the ITM sectors, will they be treated differently from those from the key industries?”
“I also urge the Government agencies under the Ministry of Trade and Industry (MTI), namely, the Economic Development Board (EDB) and Enterprise Singapore (ESG), to continue to work closely with local industries.”
“Thank you, Deputy Speaker. I would like to ask: what has been the performance of the GIP funds that are set up to invest in Singapore-based companies so far?”
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“Madam, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Good afternoon, Mdm Chair, fellow Members of Parliament. The manpower problem faced during the economic transformation phase is of great concern. For example, when PMETs from MNCs sought employment with SMEs recently, employers hesitated because of their "high education, high position and high pay". PMETs on the other hand, felt that the environment and benefits of local SMEs are not as good. They were stranded in a situation of mismatched expectations. This is a regrettable situation. On one hand, SMEs are unable to hire talents while, on the other hand, PMETs are unable to find employment. This situation will continue to worsen. To allow everyone in the workforce to have a role to play, the Government, businesses and individuals need to seriously seek out the reasons and come up with countermeasures. An SME business owner once told me that he would very much like to transform. He has attended courses and even hired consultants, but he ultimately needs an assistant to help in the Page: 78 execution. Taking advantage of the current environment, when SMEs are able to recruit experienced PMETs on board, the boss would have found a capable assistant. Please allow me to use the famous Chinese classic novel "Romance of the Three Kingdoms" as an analogy. Liu Bei was also an "SME" and only managed to recruit Zhuge Liang after three attempts. From then, his "business" developed rapidly and even managed to contend with the "larger corporation" headed by Cao Cao. As the situation of an ageing population escalates, businesses will face a more severe manpower challenge. I belong to the post-war Baby Boom generation.”
“I need to reiterate that bringing up these two dilemmas does not affect TAs' support and expectations of Government policies. As the President of the Singapore Chinese Chamber of Commerce and Industry (SCCCI), I am heartened that the Chamber's TA Hub has received the strong support of many Government agencies and TA members. We hope to provide the various TAs with a platform and space to better lead their respective industries. At the same time, we hope that the TA leaders from the different industries can meet one another more often, creating chemistry for new business and new opportunities. Chairman, after listening to the speeches in Parliament over the past few days, I fully agree with the union leaders who called for companies and employees to move with the times and be well-prepared for the future. During business transformation, even with a comprehensive plan, the management still needs to have good communications with their staff, especially when it involves adjustments to work processes or the introduction of automation equipment. Some staff are accustomed to their current practices and do not want to learn new skills. Some employees worry that with the company's transformation, they will lose their edge and even fear losing their jobs. This kind of mindset is resistant to change. Looking at the current business environment and advances in new technologies, no one can guarantee that their specialties will always have a market. Therefore, the employers and employees of SMEs and traditional industries must work together to be future-ready. 6.00 pm Support for SMEs”
“Thus, when Minister Heng Swee Keat announced that 20 TAs would receive the Government's assistance to formulate their industry transformation blueprints, and that Government officers would be seconded as "industry leaders" to the various industries, many TAs started speculting on which would be the lucky ones. Would their TA be selected? I am wondering how the knowledge and experience of the 20 officers would be applied to the TAs? According to a report by The Business Times, there are currently more than 350 TAs nationwide. How can other TAs participate in this project after the 20 officers have been assigned? To effectively promote the collaboration between the Government and TAs, I would like to highlight two dilemmas of TA leaders. Firstly, the sustainability of TAs. TAs are non-profit organisations and have limited operational funds. With the support of the Government, some projects which have shown initial good results would see Government officers being over-eager to deliver the KPIs, to the extent of even bypassing the TAs and taking over the projects via setting up new entities. Secondly, the phenomenon of "celebrity-chasing" by Government agencies. TAs which have performed well are overwhelmingly sought after and supported by different Government agencies with various assistance schemes and incentives. However, those TAs with limited resources but which work hard in search of new directions can only fend for themselves although they need even more assistance. This situation takes place probably because Government officers have a preconceived notion, that is, supporting TAs that they deem promising and not wanting to waste time on TAs that they feel would not be able to make it.”
“Mr Chairman, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Chairman, and fellow Members, trade associations (TAs) can play an important role in helping SMEs and traditional industries to be future-ready. Many TA leaders are dedicating their services to their TAs while managing their businesses. Although companies compete amongst themselves in businesses, everyone in their TA stands united and works hand in hand for the common interests and with the goal of enhancing the overall image of the industry. The motivation behind it is passion and a "never-say-die" mindset. However, we have to acknowledge that no one can stop its evolution. Traditional industries need to move with the times and make adjustments proactively. I would like to share the approach by three TAs in this regard. The first is the Singapore Precision Engineering and Technology Association (SPETA), renamed from "Tooling" to "Technology". The second is the Singapore Houseware Association, which was renamed from "Chinaware" to "Houseware". The change of name provides broader scope for these TAs. Another example is the Singapore Industrial Automation Association. They did not change their name, but repositioned themselves through their events. Their conference and exhibition were named ioTAsia, with "ioT" being the "Internet of things", a very modern technology terminology. A change in name or positioning of the organisation reflects the change in mindset of TA leaders and it is the first step to transformation.”
“To the officials, any small misinterpretation is just a concept, but, to the enterprises, it is tantamount to wasted time, manpower and resources, which may not be reversed. In this year's Budget, the Government has rolled out a $4.5 billion Industry Transformation Programme to help enterprises. It has also affirmed the contributions of TACs. TACs have intimate knowledge of their specific industries and, moreover, have industry leaders with deep experiences Page: 42 in restructuring. This would be able to help their member companies effectively. Singapore's Public Service standards and efficiencies are world famous. In the past, Singaporeans have benefited from the 3P model, which is, the close cooperation among the Government or "Public", citizens or "People" and enterprises or "Private". During this period of economic restructuring, we need to build up the PPT model, and fully optimise the strengths and advantages of the Government or "Public", enterprises or "Private" and trade associations or "TAs", integrating all kinds of ideas, concepts and methods. In this way, transformation and driving up productivity would not only be the objective of the Government, but also the common target of the Government, enterprises and trade associations. With this common goal, the effectiveness of the implementation process would be greatly improved.”
“I hope that when Government officials gauge industry potential, they should not only measure the pace of growth and economic contributions but also consider the social functions as well. Even as we emphasise creating value-add, we should not ignore the value of their existence. Having been in business for many years, I am deeply aware that traditional industries that wish to innovate and achieve growth will encounter countless bottlenecks. However, for these traditional industries, the value of their existence lies in being able to survive well and service the society at large. We should realise that industry development has its own rules and process. Transformations also take many different forms. Some gradually evolve, some involve major reforms while some undergo complete changes altogether. The role of Government officials in economic transformation is to gather resources and promote industry development through policies. Therefore, I hope that Government officials could understand the uniqueness of each industry and be open-minded and inclusive in guiding industry transformation. They should not have preconceived notions on the industry potential. While some of these methods have worked in the past, they may not necessarily be effective in the future. As Minister Heng has said, industry transformation is a very long-term strategic plan and the crux is how to implement this plan. In this regard, collaboration among enterprises, as well as the close partnership among enterprises, TACs and Government agencies, is of great importance. I really hope to see that the Government could obtain an in-depth understanding of industry development processes and needs, to avoid wrongly interpreting the situation and trends during the process of structural adjustments.”
“Traditional industries are mainly involved in the areas of clothing, food, accommodation and transportation; they will continue to have demand even as time evolves. We live in an era where infocomm technology is already a norm. However, some shops still operate like before by waiting around for customers to drop in, hence have little business; some industry players adapt to the change by using online sales to expand their market reach, and do very well. Just as mindset influences thinking, thinking determines the solution. Whenever changes appear in the marketplace, enterprises need to embrace their customers' needs, make adjustments to their business model and undertake the necessary transformation. In the past few years, the Government has provided many assistance schemes to support enterprise transformation and productivity improvement. However, it is essential for enterprises to be self-reliant. Hence, Government assistance cannot be viewed in terms of whether it is sufficient but whether it is truly effective. The problem is that some industry players have no confidence in their own industries. This kind of mindset is, in fact, sunset thinking, which would sooner or later lead to their elimination. Secondly, Government officials need to be mindful that there is no sunset industry, only sunset thinking. Minister Heng Swee Keat announced that in order to support the Industry Transformation Programme and strengthen the coordination among Government agencies, the Government will be setting up teams comprising officials from EDB, SPRING Singapore, IE Singapore, A*STAR and WDA, to develop road maps for each economic sector. This is a very good beginning.”
“[Please refer to Vernacular Speech.] Mdm Speaker, Members of Parliament, good afternoon. Firstly, let me declare that I am the President of the Singapore Chinese Chamber of Commerce and Industry. When delivering the Budget Statement, Minister Heng Swee Keat quoted one sentence that I was particularly struck by. This was: "There is no such thing as a sunset industry, only sunset thinking!" The two points I will be raising today are centred on this sentence. Firstly, enterprises have to be mindful that there is no such thing as a sunset industry, only sunset thinking. In general, people tend to term sunset industries as those deemed to have no future and where profits are not easily forthcoming. As a matter of fact, those so-called sunset industries could thrive as long as they clearly understand market changes, discover changes and address them, and succeed in restructuring and upgrading their industries. In this regard, the local food processing industry, furniture manufacturing industry and garment fashion industry are examples of success. What they share in common is that their industry leaders are united, have vision, courage and determination; they seek a way out amidst changes and have the gumption to try. Not only have they led their industries from the bleak winter into the spring, but they also managed to uplift the image of the entire industry, hence attracting young people to join the industry, bringing with them new ways of thinking and new ways of doing things. Page: 41 Given the rapid changes in the current business environment, bottlenecks could occur in the development of any industry. Even those industries which are doing fairly well now may face new challenges five or 10 years down the road.”
“However, sometimes, changes of Government policy tend to set in motion a whole chain of repercussions, especially in manpower resource planning. There is a Chinese saying which goes: "Those who are not far-sighted will face problems". I urge local industry players to take this opportunity to review their management processes, strengthen the bonding among workers and think of ways, other than through pay hikes, to retain key employees. The Page: 65 injection of foreign competition is a definite challenge. Going forward, other bus packages would also be up for tender. I hope our local bus operators would continue to do their best to bid for the contracts and not be easily defeated by foreign players. In closing, I support the Bus Services Industry Bill. 4.15 pm”
“In May this year, the UK company Tower Transit was awarded the contract for the first bus package, breaking the duopoly held by SBS Transit and SMRT. Tower Transit, given its experiences in operating public bus networks in London and Australia, is likely to provide more stringent and effective management operations. However, local industry players should also realise that the injection of new competition would exacerbate the manpower shortage in the transport sector. Tower Transit has already indicated its intention of recruiting more than 900 workers, among which 700 would be bus drivers. This would present a great challenge to the operators of current bus services, school bus services, logistics services and so on. The manpower shortage in local drivers is a chronic problem and, in fact, it was found that bus drivers of other nationalities find it hard to adapt. Thus, I hope that LTA and Workforce Development Agency (WDA) could cooperate to provide professional skills training for the transport industry, especially for bus operators, in order to develop more manpower resource channels and enable those who are willing to have a career change to become qualified bus drivers. From a long-term perspective, encouraging people to take public transport would help to solve traffic congestion, be more environment-friendly and reduce the number of private cars on the road. Hence, the market demand for qualified bus drivers will always exist. Considering the unique nature of this industry, I recommend that bus drivers could also be included in the SkillsFuture training programme. Changing the rules of the game, improving the service level of public transport services, providing greater convenience to commuters – these are our long-term goals.”
“Mdm Speaker, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Speaker, bus services, including public transport services, have always been a topic of great concern to the public. This year, in particular, the many incidents of disruption to Mass Rapid Transit (MRT) services have caused much inconvenience to commuters. Hence, we should support any efforts which could improve the quality of public transport services. Last year, during the Budget debate in Parliament, the Singapore Chinese Chamber of Commerce and Industry’s (SCCCI's) Immediate Past President and then-Nominated Member of Parliament Teo Siong Seng raised some recommendations with regard to improving the service level of local public transport, hoping that the Government would consider changing the management and operational model. Now, the Government has introduced a relevant Bill for the bus services industry, bringing in the competitive tendering process. This is a good start. Moreover, the Bill specifies that the tendering process will adopt a "two-envelope" mechanism. The service quality proposed by the tendering party will be evaluated first before financial indicators are considered. This selection procedure would avoid giving the tender to the operator who Page: 64 lowers the bid by sacrificing quality in order to win. Eventually this will benefit all public commuters. The new Bill also reminds local bus operators that Singapore is a totally open market. Attracting multinational corporations (MNCs) would increase competition, especially in competing for manpower resources. Hence, local enterprises need to be prepared and pay more heed to the company's operational effectiveness, strengthen human resource (HR) management and maintain good rapport with workers.”
“For instance, the boss may suddenly need the employee to help out in other areas or cover work handled by colleagues who have taken leave. Some colleagues may be reluctant to do so if it was not Page: 84 specified within the job scope. This, too, is my concern. Hence, I would urge local enterprises to strengthen the rapport among management and workers, increase bonding and practise teamwork at the workplace. I would like to ask the Minister, after the amendment, should our start-up companies also state clearly their job scope?”
“MOM's request for small businesses to clearly state the employee's job scope is relatively harder to implement. Small businesses are strapped for manpower and it is not possible to delineate the job scope in such detail. Teamwork is even more important within small companies, where everyone works together to complete the task at hand. Moreover, as we keep stressing on raising productivity, work arrangements should be more flexible, with employees taking on more work. If the business does well, salaries can be adjusted accordingly. When I first joined Teckwah, the company only had around 20 staff. Every time there was a major event, colleagues would help one another willingly. My mother would cook delicious food at home and bring it to the office to share amongst the staff. It was like a happy family. Later, as the company expanded, the staff numbers also increased, with different departments like Administration and Human Resource being set up. The division of labour among departments became more apparent. Whenever there were major activities, we could only rely on catered food. However, colleagues still remembered fondly the food cooked by my mother. This is the eco-system of a small company. Delineating clear job scopes is procedurally correct. However, it may not be that applicable to small businesses. I totally understand the rationale of MOM, as it hoped to roll out the itemised payslip to protect the interests of employees. During this process, however, we need to consider the nature of small businesses. While we may rear fish, not every type of fish is suitable for the aquarium. Some bosses are worried that once they make the employee's job scope very clear, it could be even more troublesome.”
“In Mandarin, Madam. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Speaker, the Employment (Amendment) Bill seeks to make it mandatory that from next year onwards, local companies should issue itemised payslips to their employees and that during the process of recruitment, they should also clearly state the employee's job scope, working hours, salary, bonus, annual leave and benefits. These are all positive moves to help enterprises streamline their human resource management practices. Thus, I support MOM in amending the Employment Bill. Page: 83 Generally, these are practices already adopted by larger local companies, and implementation should not be a problem for them. I would like to inform the Minister that the Singapore Chinese Chamber of Commerce and Industry (SCCCI) has already done a lot in helping to promote this practice. Last year, when MOM announced this plan, our Chamber immediately joined hands with SIMTech to develop a simple e-payslip software for SMEs to download free of charge. In order to encourage even more enterprises to use the e-payslip, the Chamber specially conducted 12 workshops, some of which were jointly conducted with trade association members. At the same time, SME Centre@SCCCI also proactively promoted the e-payslip to small businesses; to date it has concluded 100 advisory cases. During the outreach period, we realised that some small business owners were not really adept in using computers or felt that it was troublesome to print from computers. Now, MOM has designed a simple paper payslip template for easy input of figures. However, the current template is only available in English and we suggest that MOM could provide the payslip in different languages to cater to the needs of small businesses.”
“But as the scale and size of the projects are rather large, they are probably beyond the reach of any single company. If there is Government support and if Government-linked companies are willing to take the lead, the success rate of local enterprises in bidding for the projects would be substantially higher. Singapore's future is irrevocably linked to its value in the region and Asia. Asia is already the engine of growth in the global economy. China started AIIB to promote infrastructural development projects within the Asian region, including the One Belt One Road infrastructural projects initiated by the founding members of AIIB. From the business angle, AIIB and One Belt One Road are salient initiatives now as well as in the future, and businessmen are all looking forward to being a part of them. Recently, some business owners have reflected their concern on the inadequate communication between the Government and the business community with regard to the ASEAN Economic Community. I hope that after the AIIB projects get off the ground, the Government could increase its communication with businesses; on the other hand, Page: 66 businesses should also make greater efforts to clinch the projects.”
“35 billion in project funding. Amongst these, funding for 2,384 projects was disbursed to contractors and suppliers, while funding for 311 projects went to Singapore consulting firms. As of 31 December 2014, Singapore has contributed US$523 million to the Asian Development Bank in terms of capital subscription and funding, and, in turn, received US$1.35 billion worth of contracts. When Singapore first joined the Asian Development Bank, it was still a young and developing nation trying to find its feet. Now, Singapore has already achieved developed nation status; having accumulated even more practical operational experience, and cooperated in regional and international projects, local enterprises will be equipped with a competitive advantage. Thus, we hope that the Ministry of Trade and Industry and the Ministry of Finance would learn from the experience of the Asian Development Bank and identify even more business opportunities in the international arena. In the area of infrastructural development, Government-linked companies are in the forefront and have a very credible track record. In bidding for AIIB projects, they have a higher success rate compared to small and medium enterprises (SMEs). We hope that Government-linked companies would also lead the way to open up opportunities for local SMEs with good credentials and with the high potential to participate in AIIB projects. Joining hands to compete for international projects and promote common growth would also increase national cohesion. At a lunch dialogue organised by the Singapore Chinese Chamber of Commerce and Industry for trade association members, some member companies had raised similar concerns. They can see many business opportunities arising from regional infrastructural projects.”
“Madam, in Mandarin, please. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Speaker, having understood the background, objectives and scope of services of AIIB, I support the AIIB Bill. Currently, Asia is the most dynamic region in the global economy, demonstrating the greatest potential; it is also stepping up in infrastructural development. However, many countries in Asia are still developing economies. Investing in infrastructural development projects would require much more financial support, technology and management expertise. The AIIB proposed by China will leverage on international financial resources to bring new impetus to the development of the Asian region. Singapore is one of the original founding member countries of AIIB. In the past 50 years, we have accumulated a great deal of experience in urban infrastructural development, such as energy, utilities, waste management, public housing and transportation. We have also developed sustainable development solutions in water management. The Singapore International Water Week, CleanEnviro Summit Singapore and World Cities Summit hosted in Singapore have also attracted industry players, government officials and experts from every part of the world. These are Singapore's strengths in participating in projects of AIIB. Our businesses look forward to leveraging on AIIB to participate in more sizeable multi-national and regional infrastructural development projects. How then can Singapore enterprises participate in Asian infrastructural investment projects? I think we can make reference to the Asian Development Bank. The Asian Page: 65 Development Bank was established in 1966, with Singapore as one of its founding members. From 1967 till now, Singapore-based companies have obtained US$1.”
“Mdm Speaker, while the increase of foreign workers has moderated from about 80,000 in 2011, to about 26,000 in 2014, which are the specific sectors that foreign workers had gone into and what portion of this increase goes to SMEs in 2014?”
“In the future, the business environment can be expected to be full of uncertainties, just as in the SEA Games. Past glories may be overtaken by others, while past failures could also be the foundation for a comeback. Amending the Bankruptcy Act, specifying the minimum period to discharge a bankrupt, is like giving a new lease of life to those who have failed, giving them another platform to strive forward after they have learned their lessons the hard way. This is extremely good news for would-be entrepreneurs. I hope this is a signal for the whole society to view the business cycle with greater magnanimity. Hence, I support the Bankruptcy (Amendment) Bill.”
“Without the nurturing soil, big trees can never grow. Allow me to share the insights from our late Founding Prime Minister Lee Kuan Yew in his book "The Grand Master's Insights on China, the United States and the World". Mr Lee felt that the spirit of innovation and entrepreneurship is even more important than technological ability. In an era of technological revolution, only talented entrepreneurs would be able to seize new opportunities, create new ideas, establish new enterprises and make great strides forward. The ordinary businessmen only need to learn from others' experiences to have a fairly comfortable life, but those businessmen who possess the innovative and entrepreneurial spirit can reap rich rewards. These statements show that our late Founding Prime Minister values the importance of grooming the entrepreneurial spirit. However, from CDAC's survey results, parents certainly have neglected the importance of the entrepreneurial spirit. This gap makes us think hard about whether we should create a more conducive social environment for entrepreneurs. After all, failure is the mother of success. Though we can tolerate failures, we should not indulge failures. There is no conflict of interest between the Government legislation of protecting creditors' interests and grooming the entrepreneurial spirit. Successful entrepreneurs have a responsibility to their shareholders, employees and customers, and are able to gain the trust of interested parties. Page: 115 In the recently concluded SEA Games, Singapore made sports history by the most number of medals won! However, as we followed the Games closely those few days, the sports we banked on for gold medals turned out to disappoint us, while those sports that were not on the radar suddenly produced many dark horses.”
“While this is certainly a good thing, the young people groomed under this mindset could turn out to be excellent civil servants, managers and outstanding skilled Page: 114 workers and professionals, but are not likely to become successful entrepreneurs. Starting a business entails taking risks. Let me cite a real example: Mr Tan, who was a restaurant owner, became bankrupt a few years ago. He was not used to working for others and wanted to continue doing business. Hence, he used his wife's name to re-register a business and started to sell fish soup. As he learned from his previous experience, the business became better and better, and he opened another stall at a nearby hawker centre. Because he has already mastered the specialised skill of slicing fish, of late, Mr Tan hopes to expand his business through opening a chain, but because he was still an undischarged bankrupt, he faced hindrances at every turn – rejections in discussing projects, getting bank loans, and applying for Government assistance schemes. He really hopes that the Government could show more leniency towards bankrupts. After the amendment to the Bankruptcy Act, people who have failed in business could be discharged from bankruptcy within five to seven years and given the chance to strive ahead to realise their dreams, which is what Mr Tan hopes to do. Given his ability, he has no problems settling the target contribution, but what is at stake is his reputation. If our society is unable to tolerate failure, and not accepting mistakes, fears taking risks and dodges from it; if parents are unwilling to let children take risks, or are not used to the idea of letting children take risks and responsibilities, then Singapore would lack the social environment to groom entrepreneurship.”
“(In Mandarin): [Please refer to Vernacular Speech.] Mr Deputy Speaker, firstly I wish to declare that I am the President of the Singapore Chinese Chamber of Commerce & Industry. I support the Bankruptcy (Amendment) Bill, as it will prescribe a minimum period that a bankrupt can be discharged. This would benefit those who have failed in their ventures to learn their lessons, and start all over again. Currently, Singapore's economy is undergoing a period of restructuring, and we do need more entrepreneurs who have ideas and creative thinking to develop economic avenues and new ways of doing business. We also need to groom more young entrepreneurs to be daring enough to venture and not give up easily even when they face obstacles. The business battlefield is surely not going to be plain sailing. Even renowned entrepreneurs like Jim Rogers and Jack Ma have experienced failure, and not only once. Does our society have the environment to nurture entrepreneurship? Recently, I participated in a seminar entitled "The role of parent education in preparing young people for employment" by the Chinese Development Assistance Council (CDAC); the results of one survey that were announced deserve further thought. A total of 550 parents participated in this survey which was mainly to find out how parents could prepare their children for employment. Results showed that the capability parents valued most is to cultivate their children's specialised skills and knowledge learning capacity. Parents felt that the least important is to cultivate their children's willingness to take risks. These results show that the tolerance level for risk-taking needs to be further increased in our society; a variety of reasons lead to parents placing more emphasis on knowledge acquisition and skills.”
“Upgrading of enterprises requires financial support, just as patients need blood transfusion. However, blood transfusion is not a permanent solution. Successful enterprises have to learn how to generate their own blood. Similarly, besides supporting enterprises financially, the Government could also consider other measures. Today, MAS has proposed establishing Non-sales KPIs and I believe this would steer the financial advisers away from merely focusing on the monetary value. I hope other Government agencies could also follow Page: 95 this practice. In closing, I support the Financial Advisers (Amendment) Bill. (In English): Mr Deputy Speaker, Sir, I support the Bill. 5.46 pm”
“In reality, SMEs could approach the SME Centres to help them apply for Government assistance schemes. Government agencies have already streamlined their procedures, and the process is not all that complicated. Just like the specialised web portal to be launched by the Monetary Authority of Singapore (MAS), Government assistance schemes from different Government agencies can be found in the EnterpriseOne portal. However, the EnterpriseOne portal lists much detailed content on Government assistance schemes, including the programmes of many Government agencies. SMEs would need more time to digest all the information and select schemes deemed more applicable. Since the Government mooted the productivity drive, schemes that are most well-received and have the highest take-up rate have been frequently featured in the media. SMEs can take note of these news reports, and decide on which schemes would suit them best. How do we prevent Government policies from being abused? I believe we could learn from MAS, trace the problem and get to the root cause. We should see what motives and mechanisms have caused the companies to pursue monetary gains instead of upgrading and restructuring. Every year, newspaper reports tell us that "the Government has set aside an amount of budget to support enterprises embarking on certain programmes." Many programmes would be reported in this manner: "The following scheme benefited x number of enterprises and the total funds utilised were X dollars." From observing such news reporting, I wonder if Government agencies are using monetary grants as a selling point when helping enterprises upgrade. In time to come, business advisers will be inclined to be money-conscious, so will enterprises, and eventually everyone would concentrate on financial gains.”
“Last year, 44,000 SMEs applied for the Productivity and Innovation Credit Scheme (PIC), representing a 21% increase over the 2011 figures. Such good results must be attributed to the efforts of consultants. However, some unscrupulous consultants who are keen to clinch a business deal may not care to understand the companies' actual needs; instead, their approach is to promote the products and services aggressively and persuade the client to apply for the Government assistance scheme. Let me cite two actual cases, which are in fact failures. At the end of last year, a shop owner was persuaded by a consultant to sign an agreement to let the consultant design a Facebook page for market expansion and spent a grand total of $15,000! Why did it cost $15,000? Apparently, $15,000 is the overall cap for the PIC Bonus. This happened to be the "special package" designed by the consultant to help enterprises "get money" from the Government. Some consultants even give enterprises a "rebate". The clueless SME boss was made to buy a cheap product at a high price, much to his chagrin. Page: 94 Another gentleman, Mr Koh, fell into the same trap when he encountered an unscrupulous consultant. Last year, he appointed a consultant to help him buy a Customer Relationship Management (CRM) software, to store customer data, and record performance of his sales people. The consultant also charged $15,000, inclusive of the service fee and purchase of hardware and software. However, Mr Koh discovered that this system was incompatible and he had no choice but to revert to using Excel to manage the customer database. Due to work requirements, he is still looking for a suitable system and I hope he can find the right product soon.”
“Mr Deputy Speaker, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Mr Deputy Speaker, firstly, I would like to declare that I am the President of the Singapore Chinese Chamber of Commerce and Industry. After thoroughly understanding the Financial Advisers (Amendment) Bill by the Page: 93 Monetary Authority of Singapore, I am very pleased with three positive areas. The first is establishing non-sales KPIs by the financial institutions, enabling their financial advisers to concentrate on the customers' actual needs and improving on service quality, rather than aggressively promoting products and services to achieve sales KPIs with no concern for professional ethics. Secondly, it is to put in stringent measures to regulate other types of business that financial advisers can engage in concurrently, in order to avoid any conflicts between the products they represent personally and their financial advisory services. Thirdly, it is to work with stakeholders to establish a specialised web portal to list life insurance products offered by different life insurance companies. This would enable the consumers to make an easy comparison without the help from financial advisers. These three fundamental amendments could reduce the tendency for financial advisers to aggressively push their financial products to clients in order to chalk up individual KPI and increase their income and facilitate building up a pool of consumers with clearer mindset for self-help services. These improvements are good learning points for other Government agencies. Upselling also exists in the application for Government assistance schemes. As many local SMEs are unfamiliar with the preparation of documents and filling in application forms, they tend to outsource the work to consultants.”
“We should not forget that the social function of public housing is to create the opportunity for Singaporeans from different races and ethnicities living in HDB estates to interact and live together in harmony. 4.25 pm”
“Early this month, the SCCCI specially invited Merchants' Associations from several neighbourhood centres to attend a lunch meeting. Everyone reached a consensus that rebuilding the "kampung spirit" in their neighbourhoods and new towns would require the coordination and hard work of many parties. HDB needs to be even more forward-looking in their design concepts and, correspondingly, there needs to be mutual support and coordination amongst the Town Councils, Citizens' Consultative Committees, Community Development Councils, Community Centres and Residents' Committees. Shop owners need Page: 71 to consider ways to do their business better and should actively support the Merchants' Associations. The leadership of the Merchants' Associations needs to demonstrate team spirit in strategic planning and come up with innovative ideas and marketing concepts unique to their areas. Although each community congregates in organisations with diverse backgrounds, they all serve the same group of people, with the common objective of looking after the interests of their respective residents. Singapore is a land-scarce country and we have no choice but to construct high-rise buildings. With a more diversified population structure, we need a longer time to establish better understanding and trust among the people and tighten the bonds of social cohesion. This social cohesion pertains to the concern and help from family members, neighbours and friends and cannot be measured by monetary value. Thus, when we face problems, we have to tackle them at the root and not only on the surface.”
“Although kampungs have vanished from our modern urbanised city, HDB has already tried its best to preserve the "kampung spirit" in designing HDB flats and neighbourhoods. If we move back in time to 30 or 40 years ago, two households from the kampungs together moved into new HDB flats. If the Zhang family's ceiling springs a leak, they would simply go upstairs to the Tan family's flat to take a look. Legislation would not be necessary. It is a different story now. Residents seldom interact even if they live in the same building and are not familiar with one another. They do not know each other's surnames, professions and do not talk though they may take the same lift. Relations are quite estranged. If there is any knock on the door, residents would speak from behind their iron gates and be very guarded. Hence, we need to amend the Bill to give HDB officials more empowerment. If problems among neighbours need to resort to legislation, this could solve the problem, but it would sever ties that may be impossible to mend. People's lifestyles are also gradually changing, in keeping with the times. Different generations have different focuses in their life and the social functions of neighbourhood shops and public facilities also need to adapt to the changing times. Unlike the supermarkets and large shopping centres, neighbourhood shops can create a congenial meeting place for all residents and they need to adjust their business model according to the residents' composition and lifestyle patterns to provide even more unique products and services. Hence, the management of neighbourhood shops should not only be viewed purely in terms of commercial profit, becoming an investment tool or an asset to be resold.”
“(In Mandarin): [Please refer to Vernacular Speech.] Mdm Speaker, firstly, I would like to declare that I am the President of the Singapore Chinese Chamber of Commerce and Industry. Having carefully examined the relevant clauses, I support the Bill. However, reading through more than 20 pages of this Bill has stirred up many thoughts in me. I hope that using legislation to solve such problems would only be the last resort. The objective of amending this Bill is mainly to empower HDB officials to enter the HDB premises to investigate or arrange for renovation work. Are these matters so serious that they warrant legislation before they can be resolved? When I was young, having neighbours help each other out was very common. Everyone would reach out to help whichever household needed assistance. Whenever we patronised the kopitiam, the proprietors would Page: 70 remember which customers preferred to have less sugar in their coffee and whose children attended which schools; if we went to the neighbourhood provision shop to buy soya sauce, we would always linger to chat with the proprietors. This frequent interaction among neighbours, watching out for each other and helping one another, was part and parcel of the kampung spirit we always talk about. In the 50 years since Singapore gained Independence, HDB has provided the majority of Singaporeans with their own homes and has continually upgraded their living environment, with the establishment of neighbourhood shops, coffee shops, hair salons, clinics, activity centres and so on to increase the interaction among residents and promote social bonding and cohesion. This has been a major contribution to social development.”
“He built up deep and lasting bonds of trust with the Chinese community and Chinese business community alike, always maintaining good mutual interaction. Mr Lee Kuan Yew was an ardent believer in promoting bilingual education, and stressed that core cultural and traditional values are to be conveyed through the mother tongue. This has laid the foundations for establishing a cohesive Chinese community and Chinese business community. He encouraged the Chinese community to pursue renewal and keep pace with the times; he urged local Chinese businesses to develop close links internationally so as to integrate into the global marketplace and establish extensive avenues of collaboration. Over these many years, Mr Lee Kuan Yew has always been the prime mover behind Singapore-China cooperation, encouraging local enterprises to invest in China and neighbouring countries and to build an external wing for Singapore's economy. In order to embrace the opportunities arising from China's economic development, Mr Lee Kuan Yew mooted the setting up of Business China, harnessing the strengths of the public and private sectors and the community at large, grooming bilingual and bi-cultural talent and promoting mutual economic and cultural networking between Singapore and China. The most valuable legacy that Mr Lee Kuan Yew has left behind is the nation, system and political ideology that he forged together with his comrades. Although Mr Lee Kuan Yew has already left us, his sterling achievements will endure forever, his beliefs and distinctive style will be forever etched in people's memories, and his spirit will always guide us to move forward with perseverance! Mr Lee, we will always remember you! [Applause.] 5.05 pm”
“Mdm Speaker, in Mandarin, please. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Speaker, it is with a tremendously heavy heart that I represent the Chinese community and the Chinese business community at large to mourn the passing of our founding Prime Minister Lee Kuan Yew. Mr Lee Kuan Yew is a statesman extraordinaire who made sterling and defining contributions to Singapore's nation-building and development. Being a tiny nation with no natural resources, Singapore's early years of nation-building had to depend on prudent and far-sighted policies, as well as a pragmatic, diligent work ethic. Mr Lee Kuan Yew was visionary, decisive, seizing opportunities and integrating the thinking of East and West, in developing our economy. Not only did this ensure the survival of Singapore's enterprises, but it helped to sustain the livelihood of all Singaporeans. As the founding Prime Minister, he demonstrated great fortitude and courage to make major decisions at critical junctures, enabling a tiny nation to make its presence felt in Asia, creating an economic miracle and earning respect in the international arena. Singapore's economic prosperity is inseparably linked to Mr Lee's steely resolve; even when obstacles surfaced, he never gave up. He adhered strictly to the rule of law and a clean government against all odds, and steered Singapore towards sustainable growth through his Page: 25 far-sightedness and wisdom, and a bold, charismatic personality. Whether as Prime Minister or Minister Mentor, Mr Lee upheld the policy of equality and harmony in a multiracial, multicultural society. Mr Lee always showed utmost concern for the development of the Chinese community.”
“If there are certain jobs which rely on the recruitment of foreign workers, paying a high foreign worker levy would only serve to increase business overheads and erode the companies' competitiveness. This is not a paltry sum. Taking the construction sector as an example, the lowest foreign worker levy was $180 in 2011 and the highest was $380. By 2014, the lowest became $300 while the highest was $950. If the quota system could attain the objective of curbing foreign worker numbers, then could we not consider lowering the foreign worker levy? Times are moving ahead; our population structure is also changing. We now have a more highly-educated population than ever before and the foreign workforce should continue to contribute to the economic development of Singapore. We should be more tolerant in our approach towards foreign workers and appreciate what they have done. Without their contribution, we could never have built up a beautiful garden city. We keep urging enterprises to upgrade and change their business models. However, construction sites still need skilled workers and non-skilled workers. Moreover, trained skilled workers will no longer be willing to work in manual jobs. Hence, I would like to suggest that MOM re-examine its foreign worker policy, especially with regard to the foreign worker levy charges, and instead use the quota system to control the influx of foreign workers, so as to alleviate the burden on enterprises. SkillsFuture”
“Mdm Chair, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Chair, the key message of my speech today is to review the foreign worker policy in view of changing circumstances. Last year, Deputy Prime Minister Tharman announced in his Budget Statement a slew of measures to curb the growth of foreign labour. After enforcement, the impact, both positive and otherwise, was evident. Hence, when the Deputy Prime Minister announced that the scheduled increase in foreign worker levy would be deferred, it was a relief to many businesses. However, the foreign worker levy and quota continue to impose a heavy burden on all businesses. In the beginning, the Government established the foreign worker quota and imposed the foreign worker levy with these objectives in mind: one was to ensure the employment opportunities of Singaporeans, and another, because it did not want companies to take the easy way out and rely too much on cheap foreign labour. Following the rapid growth of the economy, Singaporean workers in the construction, marine, manufacturing and other industry sectors are practically non-existent at the blue-collar level, and there is no longer any fear of their jobs being taken away by foreign workers. Singapore has become an ageing society. On top of this, the focus of the SkillsFuture initiative is in training up local young people in the high value-added growth industries. We can anticipate that the more dirty, strenuous and hazardous industries would have to count on foreign workers. Page: 42 Hence, what is most troubling is the meaning behind the continued imposition of the foreign worker levy. If the purpose is in curbing the number of foreign workers, the stringent quota system would already suffice.”
“I wish to understand how many businesses have benefited from these schemes thus far. At the same time, I would also like to find out if the 30% ratio to be borne by trade associations could be further reduced. Reducing this ratio could allow more trade associations to take up the programme, but the KPI can still be maintained to ensure the programme's successful outcome. I wholeheartedly agree with the Deputy Prime Minister's standpoint, as we need to guarantee the vibrancy of local SMEs after the next five to 10 years. Having said this, we should press on to enhance the capability of stronger and more effective trade associations, and let them lead the traditional industries and SMEs in creating new value.”
“Currently, trade associations can only apply for the tax rebate under the PIC, but are unable to apply for the PIC cash grant. As the majority of the trade associations do not make profits, they do not need to pay tax and the tax rebate is, therefore, meaningless to them. We hope, therefore, that the Government could also allow trade associations to benefit from the PIC cash grant. Currently, the Government assistance packages for trade associations are always formulated on the principle of "shared responsibility". While receiving Government support, the trade associations must also bear 30% or 50% of the expenses. This is a stumbling block Page: 10 for some trade associations in taking up the grants or assistance schemes. These are the trade associations most in need of financial assistance. The second point is that trade associations are badly in need of bringing in new blood. Many trade associations are actively working at recruiting young members into their ranks. However, successful businessmen may not necessarily be ideal trade association leaders. Young people need time to mature and need to be trained up by taking part in trade association activities. The third point is the dire lack of permanent office premises and secretariat personnel. Trade association leaders are entrepreneurs, not permanent working staff. The organisation of activities and planning of programmes require the assistance of professional secretariat staff. Currently, some trade associations do not have permanent premises due to the rental issue and face the difficulty of recruiting experienced secretariat staff. This year's Budget has enhanced CIP, and extended and strengthened PACT. These two schemes were rolled out in 2013 and 2010 respectively.”
“It has also taken their members to expand in China under the Tasty Singapore brand. Last year, it even organised the "Great Singapore Food Gifts Award 2014", an innovative and interesting way to attract the participation of even more businessmen and customers. In other words, SFMA has thus been supported by many Government agencies and is one of the beneficiaries of the LEAD programme. This successful case assures us that trade associations can play a very important role in creating a deeper understanding of their respective industries and in improving the overall industry image and competitiveness. We need to have more trade associations like the SFMA to propel the traditional industries. The Government has already rolled out a package of assistance schemes for trade associations, which, in fact, largely benefit those which are larger and stronger. Going forward, I recommend that the Government renders its support to more industry and trade associations with the drive to upgrade themselves. In general, the leaders of trade associations are businessmen who have the industry knowledge and the Government could seek their opinion when they are formulating their policies. In the past few years, the SCCCI has organised regular monthly dialogues with trade association leaders to understand the business sentiment. The majority of the trade associations raise three concerns with regard to their operations: one is the lack of working capital. Trade associations are non-profit organisations with limited working capital. Their expenditure is used to service their members and not to earn profits. I take this opportunity to bring up a pressing concern of trade associations.”
“Mdm Chair, in Mandarin, please. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Chair, the key point of my speech is to support traditional industries in creating value through trade associations and industry associations. Singapore's business environment is continually changing. The emergence of new opportunities and new concepts has created conflicts with traditional industries; in particular, manpower shortage and rising business costs have been a bugbear for SMEs. In the past few years, the Government has been rolling out support packages to help enterprises mitigate the pressure of economic restructuring. Local enterprises have also tried their utmost to think of ways to increase their productivity. Just as Deputy Prime Minister Tharman had said, compared with other countries, our Singapore Government is comparatively more generous in providing assistance schemes to enterprises. How do we make full use of these generous Page: 9 assistance schemes and ensure their effectiveness? Assistance schemes can only help to give financial support but, apart from capital, restructuring requires a change in mindset and broad directions. While these efforts are very painstaking for an individual company to manage, leveraging on the strength and collective effort of trade associations would be much more productive. In this regard, the Singapore Food Manufacturers' Association (SFMA) has done very well. The association has led its members to improve the capability of their industry and has brought Singapore food products to the global marketplace through branding. For example, the Singapore Food Expo organised annually by the SFMA is one of the largest and most well-attended fairs in Singapore.”
“But, if they do not get involved with manpower resource planning now, the manpower crunch would get even more severe in time to come. In order to conform to the times, traditional industries and SMEs must also grab the opportunity to improve their overall image. For example, by and large, young people are not keen to seek employment as workers wearing singlets in cake shops. But if the boss works hard to improve the work environment and enhance the job's skills value, the requirement would then be to hire a pastry chef clad in a smart uniform which would then project a professional image and satisfaction to the employee. Going forward, professional education and career counsellors will be assigned to all secondary schools, ITEs, polytechnics and universities. Industry and trade associations must engage closely with these counsellors to ensure that they have adequate and comprehensive industry knowledge and help them change the stereotypes students have on traditional industries. I sincerely hope that more trade associations would partake in the SkillsFuture Earn and Learn Programme. At the same time, I would like to understand what yardsticks the ITEs and polytechnics use to select industries for their internship programmes. Only if we fully understand what yardsticks and considerations are being used can the owners of traditional industries collaborate with schools in a more purposeful and systematic manner. Career Counselling”
“Mdm Chair, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Chair, Members of Parliament, good afternoon. The 2015 Budget has initiated the SkillsFuture Earn and Learn Programme to help match graduates of Polytechnics and Institutes of Technical Education or ITEs with potential employers. From this year onwards, the Government will be collaborating with the retail, food and logistics sectors to nurture a batch of SkillsFuture Mentors to help SMEs with training their talents. This is very good news. The role of education is to fulfil the needs of society. Our local talents are trained in a rigorously structured framework. The advantage of this model is being able to upgrade the quality of our workforce as a whole. However, if any industry is being overlooked during the planning phase, there will be gaps in our manpower resources. Gaps have already appeared in some of the traditional industries. On this note, I urge all industry and trade associations to be actively involved in the planning of our future manpower resources. Not only must they convey their respective industry needs to MOE accurately, they should also support the internship programme wholeheartedly. Through the Page: 47 internship, students can have first-hand experience of the work environment, understand whether their personal interests and strengths can have growth potential in the industry and help them to chart their future career path. On the other hand, this programme could also help employers to identify the most outstanding young people and recruit talent. However, we must also realise that larger corporations have the capability to provide internships and attract talents. SMEs, on the other hand, often lack a proper system in place.”
“On 16 March this year, the Chamber's new batch of council members will take office and we shall invest even more resources to work together with the trade associations, Page: 38 engage with businesses and follow up on their requests. Hence, in order to make this Budget achieve even greater effectiveness, I would like to raise two recommendations. One is to support even more local enterprises in the effort to become world-class Singapore enterprises. Second, I recommend appointing a Government coordinator to handle issues related to business and improve effectiveness at the execution level. I believe that only by helping local companies to strengthen their competitiveness and become world-class Singapore enterprises can we continue to create wealth to support the social security system. Let us work together towards this objective! 1.27 pm”
“With regard to this coordinator whom I had mentioned, the objective is aligned with the "No Wrong Door Policy" principle – meaning that the Government should streamline its resources with the ultimate objective to help enterprises to grow. The Government has many pro-business policies. However, the majority of the public is not concerned with the rationale behind the policies. Instead, they are concerned either with personal benefits, or how the policies may affect them. This is an important challenge facing the Government right now. For example, in the past few years the Government rolled out the Capability Development Grants, iSPRINT and Market Readiness Assessment Scheme, with the objective of helping local enterprises to strengthen their capability. But what is the actual take-up rate? Based on the Chamber's survey, the take-up rate for the Capability Development Grant was 12%, that of iSPRINT was not even 9%, whilst the Market Readiness Assessment Scheme fared even lower, with less than 3% take-up rate. This is a vicious circle. On the one hand, we see that Government agencies keep rolling out pro-business policies. On the other hand, based on survey results, not that many enterprises really stand to benefit. When SME bosses talk about Government assistance schemes, their general sentiment is that some schemes are mainly providing additional benefits to the medium and large enterprises, whereas, for SMEs, what they really need is for someone to send them charcoal in the midst of winter. Moving forward, the key to raise our productivity lies in increasing the overall capabilities of the entire industry and this is a task that cannot be achieved by one company or one department alone. It needs concerted collaboration between the Government and businesses.”
“The only way to solve the problems completely is to be self-reliant and press on to upgrade. In the new business environment, original policies or measures may not always be applicable. If the Government continues to tweak these policies and measures, it is not only time-consuming, but the outcome may not necessarily be positive. In this period of economic restructuring, the Government has been encouraging enterprises to innovate and achieve a breakthrough in business models. In this regard, we also hope that the Government will lead the way in achieving a breakthrough to think out of the box, simplify complex problems and Page: 37 create revolutionary new policies to stimulate economic growth. For instance, there is a great diversity of local enterprises representing all kinds of trades and industries. In order to dispense the right treatment and medication, there must firstly be one "polyclinic" to handle initial check-ups before sending patients to other specialists. If the patient has to run from one specialist to another, he would already be exhausted prior to consultation. Hence, I wish to put in an appeal once again on behalf of the business community. In order to increase the effectiveness of economic restructuring, I hope the Government would appoint a coordinator to help local enterprises, especially the SMEs, and avoid having the scenario of letting them knock at the doors of different Government agencies to no avail. As I know, the Public Service has a "No Wrong Door Policy", meaning that Government agencies need to appreciate and understand the public's appeal for assistance and solve their problems, instead of shoving them from one department to another.”
“In creating value, multinational corporations (MNCs) always take the lead. However, local Singapore enterprises also play a crucial role. We have a huge number of local enterprises which provide employment opportunities to every strata of society and, at the same time, provide supporting services to MNCs. Just as in the construction of a skyscraper, while we cannot do without steel bars and cement, other building materials, such as sand, stones, glass, paint, pipes, cables, bricks or even landscaping elements like flowers and grass, are also essential. The Government has singled out five growth clusters, such as advanced manufacturing. However, other industries, especially the traditional industries, should not be overlooked. We need to realise that these important industries grew out of the foundations of the past. Today, if we could give greater support to mould and nurture more industries to prepare for a rainy day in the future, we may be able to have more companies to become world-class Singapore enterprises. Based on this year's Budget, the previous transitional support schemes will be gradually phased out, while the assistance schemes to support enterprises in innovation and internationalisation efforts will be retained and enhanced. However, the business community did not see any tangible measures to lower their business costs, measures they had, in fact, been eagerly looking forward to. I would like to take this opportunity to urge local enterprises to review and make adjustments to their business models. During a period of economic restructuring, some enterprises will find difficulty adapting and experience certain problems. The Government's assistance schemes can only act as a painkiller for temporary relief.”
“Mdm Speaker, I would like to deliver my speech in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Speaker, hon Members, good afternoon to everyone! Firstly, I would like to declare that I am the President of the Singapore Chinese Chamber of Commerce & Industry. For the 2015 Budget Statement announced in Parliament, Lianhe Zaobao summed it up with these words: "Deepening skills, Growing enterprises, Strengthening infrastructure, Assuring retirement". These give me mixed feelings. I am heartened that this is an inclusive Budget. It strengthens the social safety net, looks after the elderly, advocates lifelong learning, helps Singaporeans to build up their skills for the future, tops up the students' education fund, even doing away with examination fees and so on. These measures remind me of the traditional Confucian concept: "There is adequate care and protection for the elderly, employment for the able, and education and nurture for young people.". This originates from the Book of Rites, written about 200 BC, and represents hopes and dreams of the Chinese people for more than 2,000 years. Page: 36 My concern is that "Deepening skills, Strengthening infrastructure, Assuring retirement" all require large amounts of funding. Although this year's Budget has increased the personal income tax for the top income earners and raised petrol duty, this is only a small fraction of what is needed for the large social expenditure. As the saying goes, "Even a resourceful woman cannot cook a meal without rice", the crucial concern is that if the social system is to be sustained, the most pivotal area lies in "Growing enterprises". The value created by enterprises is the granary of the Government.”
“Yes. [(proc text) Hon Member Mr Tharman Shanmugaratnam was called. (proc text)]”
“If the inspector happens to turn up at this time, it will be the business operator who will get into trouble. Fourth, maintain Singapore tourism's vibrancy. Singapore is a global metropolis. There are many flights to and from Singapore and tourists arrive round the clock. When the new Bill comes into effect, no drinking will be allowed at public places after 10.30 pm, which aims to reduce the potential threat to public order. Many of the nightlife places frequented by tourists have liquor licences which allow them to sell liquor up until 3.00 am or 4.00 am. They hope that this can be extended to 6.00 am. Many places start the merrymaking after midnight. Stopping the selling of liquor at 3.00 am or 4.00 am does seem a bit early. In conclusion, we support the new Liquor Control (Supply and Consumption) Bill. It will mitigate a threat to public safety. However, we hope that the Government can strike a balance between being pro-business and maintaining public order. In particular, we hope they will be sympathetic towards the small businesses. We want to maintain public order, as well as to maintain the vitality of Singapore as a tourist city. 2.49 pm”
“Inspectors have found people drinking in their premises outside the hours stipulated on their licences. Because their liquor licences have been revoked, their business is down by 20% to 30% and they do not know whether they are going to get their licence back eventually, or it has been permanently revoked. These businesses hope that the Government can give them a clear answer so that they can adjust their businesses if necessary. Page: 33 Second, our members suggested introducing a demerit point system. If they really contravene the regulations, we suggest that the inspector issue a written warning upon the first violation, instead of the current practice of informing the business only when their licence is about to be revoked. The businesses hope that with this demerit point system, they will have a point deducted for each offence and at each offence a written warning will be given. When all the points have been deducted, then the licence will be revoked. This measure will have a strong warning effect to the businesses, reminding them not to contravene the regulations. The consequences can also be seen clearly. Compared to the current practice, the demerit point system is more transparent and will help the operators to exercise self-discipline. Third, deal with drinkers who have contravened the rules. Of course, the business operators have to comply with the laws strictly, but the drinkers who have repeatedly violated the rules should also be severely dealt with. Hence, the businesses hope that the Government will use different channels to educate the public on the Bill. From past experiences, although the operators have reminded their customers to buy and consume their liquor before midnight, there are still some customers who refuse to listen to them.”
“Mdm Speaker, fellow Members, good afternoon. Firstly, I would like to declare that I am the President of the Singapore Chinese Chamber of Commerce and Industry. I support the Bill. From the feedback that I have gathered from those in the business community, their reaction has generally been positive. Businesses, including the most affected ones, such as the mini-marts, share the same concerns as the Government about public order, safety and anti-social behaviour arising from public drinking. The coffee shop operators are also relieved that the Government did not shorten the hours stated on their existing liquor licences and recognised that they need to smartly manage their operations on the ground in order to comply with the law. However, having said this, we hope the Government can find a balance between achieving public security, being pro-business and maintaining Singapore's tourism appeal. Please now allow me to elaborate on my speech in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Speaker, last week, the Singapore Chinese Chamber of Commerce and Industry (SCCCI) invited the trade associations affected by the Bill to a closed-door dialogue to understand their views on the proposed Bill, especially the challenges that SMEs will face after the Bill comes into effect. Earlier on, in English, I have briefly shared the main content of the meeting. At the dialogue, the trade associations' representatives talked about four main points. First, can the licences which have been revoked be reinstated? In the past year or so, the liquor licences of about 40 coffee shops in Geylang have been revoked and the reason is because they have contravened the regulations.”
“Many details are involved in building world-class Singapore enterprises. Although IE Singapore and SPRING Singapore have always done remarkably well, we do hope that the Government would appoint a minister to personally oversee a special one-stop agency to help the SMEs. If this wish could be realised, then we would advance one huge step further in our ambition to become world-class Singapore SMEs. Next year, Singapore celebrates the 50th year of Independence, and I sincerely hope that even as we celebrate our golden jubilee and be encouraged by all our past achievements, we have to work hard at planning an even more beautiful development blueprint and action plan, so that future generations of Singapore would look back with pride on all we are working hard to put in place today. 7.03 pm”