Vikram Nair
Singapore
“I thank the Minister of State for the answer, as well as forming a workgroup to look into this issue. I think it is worrying that platform workers have a much higher rate of workplace injuries than many other groups and I think compensation is one component, but does the Minister of State think any interim measures are needed while the wo…”
“I thank the Minister of State for the answer. I think it is an improvement from the last time this question was asked two years ago, which was 17 minutes and 164 minutes. So, there is improvement. But a one-and-a half-hour waiting time is still quite long.”
“Thank you, and I thank the Minister of State for flagging the answer to me as well. So, I have a supplementary question. The answer was that the Ministry is engaging the digital service providers as well as preparing advisories for parents.”
“I thank the Minister of State for the response and to explain that the OCHA Directions are being issued to Telegram as well. The only reason I mentioned Telegram specifically is it seems to emerge in a whole range of crimes, including selling of drugs, etomidate, sexual crimes, scams.”
“It seeks to enable efficient cross-border travel while retaining Singapore's legal framework and ensuring that foreign officers cooperate within defined limits. It also provides for reciprocity, so that Singapore officers can exercise similar functions in Malaysia.”
“Thank you, Mr Speaker. I note that amongst the different sources of energy, diesel prices have risen much higher than electricity prices. And diesel fuels many commercial operators, including buses and lorries, which feeds into many other sectors.”
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“The Sino-US relationship is a key major power relationship for Singapore and the region. Singapore has historically been a good friend to both countries. Singapore has always been a good and reliable friend to the US in the region from the time of its Independence. When China was opening up to the world in the 1990s, Singapore was one of the early ones to set up formal diplomatic ties and help build bridges to ASEAN and its other friends. However, leadership changes in both countries − namely, the election of US President Donald Trump and the upcoming 19th Party Congress of the Communist Party − have created some uncertainty about the future trajectory of this relationship. At this stage, President Trump's approach towards China and how China would respond remains unclear. On the one hand, it was reassuring that President Trump reportedly had a good telephone conversation with Chinese President Xi Jinping on 9 February 2017. Other newly appointed leaders have also met or spoken to their Chinese counterparts. On the other hand, President Trump's earlier threats included a threat to slap a 45% across-the-board tariff on Chinese imports into the US, which could mean that we will potentially see a difficult trade relationship between the US and China. Chinese Premier Li Keqiang said on 21 February 2017 that a US-China trade war would benefit nobody. The US has also made other threats, such as the threat to revise the One-China policy that had guided diplomatic relations since the Nixon era. The US approach to Asia also remains uncertain. On the one hand, President Trump campaigned on the back of undoing US free trade agreements.”
“At a time when it is even more imperative for regional organisations like ASEAN to stay united in order to navigate external pressures and regional dynamics, it appears that there remain difficult issues on which ASEAN would struggle to take a united position, such as, for example, matters relating to the South China Sea. In this regard, what does MFA see as the major challenges facing Singapore in this environment? How should we position ourselves in these uncertain times? [(proc text) Question proposed. (proc text)] 5.45 pm [Deputy Speaker (Mr Charles Chong) in the Chair] China-US Relations”
“In Europe, the people of the UK voted to end Britain's membership of the EU, a decision which the politicians are still working hard to implement, moving through unchartered constitutional waters. In France, Europe's largest country, Marine Le Pen is campaigning on a platform that is anti-immigration and anti-EU. The polls predict that she will be the frontrunner in the first round but lose the second round. However, given that the polls were wrong on both Brexit and Trump's victory, the world may need to prepare for a scenario where she prevails in France on the back of anti-globalist sentiments. If so, that may well mean the start of the end of the EU as we know it. Meanwhile, security challenges posed by organised terrorist groups and other lone wolf attacks continue to threaten society, given the transnational nature of terrorism and violent extremism. As the battles in Iraq and Syria rage with the so-called Islamic State, fighters travelling to and from the region continue to pose a threat in countries far and wide, from Europe to Southeast Asia. Closer to home, significant geopolitical shifts are taking place with countries in the region anxiously watching for early signs from the Trump administration as to whether and how the US will stay actively involved and engaged and how it intends to interact with China. These developments could prompt countries to adjust their positions accordingly. Meanwhile, longstanding issues like territorial disputes and historical issues continue to be sources of tension in the region.”
“Mdm Chairman, I beg to move, "That the total sum to be allocated for Head N of the Estimates be reduced by $100". Following the end of the Second World War, the colonial era came to an end and a new world order was set up by the allies focused on global interdependence and cooperation amongst countries. International organisations, such as the UN, the World Bank and the International Monetary Fund, were set up in Bretton Woods to facilitate peace and security and to assist the world in transition. As countries gained independence after the War, all countries, big and small, had a say in these organisations. The Cold War never really erupted into a world war, I believe, in large part, because all major players respected international norms and laws. Singapore thrived in this world. As a small country, we spoke up strongly against any violation of international norms, particularly in relation to the use of force, and also did our part to assist other countries grow and develop. We made many friends on the international stage by looking for win-win outcomes with our counterparts, be it in trade or investments, and shared our own ideas freely with anyone interested. Two thousand and sixteen, though, saw several worrying trends, such as rising anti-globalisation, protectionist and nationalist sentiments, across the globe. These feelings have always been there, but what has been remarkable in 2016 is how strongly these have emerged in the political scene, particularly even countries, such as the US and UK, the two largest powers in the English-speaking world. In the US, President Trump has campaigned on the back of re-negotiating or unwinding free trade agreements, including NAFTA and the TPP. He has since followed through to formally withdraw the US from the TPP.”
“Our guidelines and policies must acknowledge our diversity and uphold unity, recognise the importance of local content and have a realistic framework, both at the national and community levels. New citizens can, indeed, have positive contributions towards nation building and social integration. Will our current appointment model and processes be reviewed and tweaked, in particular, to have a greater community involvement component? This may include, firstly, performance of voluntary and community services which helps in immersion and integration with the community one lives in; and secondly, getting active and senior grassroots as well as community leaders to nominate or become assenters for the potential new citizens. Singapore Citizenship Journey”
“Mdm Chairman, in the 1940s to 1960s, Singapore enjoyed what was called the post-war Baby Boom and it was common to find families with large numbers of children, with TFR peaking at 6.56 in 1957. Generally, though, there is inverse correlation between development and TFR. The countries with the highest TFR now are the sub-Saharan African countries, while the developed countries are at the low end of the spectrum. Likewise, for Singapore, TFR has declined steadily from the 1950s and 1960s, reaching a historic low of 1.15 in 2010. Subsequent years have seen the rate rise above 1.19, with highs of 1.29 in 2012 and 1.25 in 2014. Anecdotally, I understand that the incentives given to encourage marriage and parenthood have been helpful. In speaking to young parents, affordable and convenient childcare is high on the priority list of necessities as it is becoming more common for families to have working parents and grandparents. The most important generation now in this area is probably the millennials, that is, those born in the 1980s and early 1990s, as they would be in the prime years for marriage and parenting. What are the attitudes of our millennials towards marriage and parenthood? Is there anything more we can do to support young Singaporeans in achieving marriage and parenthood aspirations, a club I recently joined myself? Citizenship Appointments Assoc Prof Fatimah Lateef: Madam, becoming new citizens of a nation is a critical decision. It is a process that involves the interaction and integration between the new immigrants and the receiving community or society. This can be done at the individual or collective level. The policies of a nation represent the litmus test for integration and citizenship approval.”
“I will now speak in Tamil. (In Tamil): [Please refer to Vernacular Speech.] Mr Deputy Speaker, I had previously raised my concerns about the relatively lower participation in preschool by Indian families. In particular, there appears to be a correlation in lack of preschool education and difficulties in primary school, where some of our students lag in areas, such as Science and Mathematics. In this year's Budget, I am grateful for the Government's initiative to increase infant care places to over 8,000 by 2020. This will be particularly important for working mothers and single-parent families. I would strongly encourage all Indian families to enrol their children in preschool and take advantage of the subsidies available. They should allow professionals to come in and assist. At the other side of the educational range, there are also more grants for post-secondary education, particularly for those going to the Institute of Technical Education, polytechnic or university. I strongly encourage all our youths to strive for post-secondary education and to take advantage of the opportunities made available. In an ever-changing world, education and relevant skills-based training will be important for us and our children to keep up with the new opportunities available. The Government will provide assistance and opportunities and we should, at the same time, not be afraid to learn and do so continuously.”
“Of course, with parenthood, the economic issues are a bit reversed because the cost of parenting is largely borne by the individuals themselves, whereas the benefits are not only to the individuals but also to society as a whole. This is why I have always believed there are strong justifications for socialising the cost of parenthood more. There are many measures in place already assisting parents to defray the cost somewhat. But there is always more that can be done, in particular, childcare is one of the areas where there is a great deal of demand. And if you go before childcare, there is infant care. So, in this Budget, we have a doubling of places for infant care over the next four years, which is a measure I welcome. This will help to take more of the strain off working families and working parents and grandparents. But as we go forward, my suspicion is that there will be a correlation between the more we socialise the cost of parenthood and the more willing people become to take this plunge. I think costs are often a consideration for people considering marriage and parenthood and, sometimes, there is misinformation about the costs as well. But in countries like France, which is one of the few developed countries where they do not have a major issue with the population, we find the cost of parenthood being heavily socialised. So, I think this is one area we can look more at in future Budgets as well. Broadly speaking, Mr Deputy Speaker, I think this Budget will put Singapore on the right foundation for sustainable growth in the coming years. What I am most heartened is that the focus is not only on growth but on sustainability and the measures taken to ameliorate both the demographic and environmental challenges we face in the coming decades.”
“In fact, anecdotally, a few people I have spoken to were actually surprised that their water bill had not increased in 17 years. As many people received their water and power bills together, they had assumed that both prices were going up when, in fact, it was only the power component that was changing and the water component had remained the same in their bills for the last 17 years. So, what I would suggest is, in order to prevent sticker shock or surprise every 17 or 20 years, as the case may be, that we find a way to make the water price more flexible as well so that people can adjust their consumption patterns along with the rising cost, and our usage of water will remain sustainable. One last area I wish to touch on is added support for parenthood. I should declare my interest here as I recently joined the Club of Parents with my first child, and I have to say that it is a wonderful joy to be a parent. But the reality is that many young people hesitate in taking the step both towards marriage and towards becoming parents, and the demographic time bomb I mentioned is a very real one, and the best way to diffuse it or at least reduce some of the pressures on it is to encourage more people to take on the challenge of becoming parents. The other benefit, of course, apart from the personal joy of becoming a parent is that society as a whole benefits because, ultimately, the children are the ones who will take Singapore forward over the next 30 or 50 years, and they will be the ones to support the older generations, to support us when we are no longer able to work. And there are tremendous benefits to society for encouraging parenthood.”
“I am also heartened that the revenues raised from these taxes will be used to support the growth of green businesses, as this is one way of reducing the private costs for socially useful innovation, and if these technologies are effective, they could also be something else Singapore could export to other parts of the world. One matter that has received a lot of attention is the rise in water prices. This has been extensively discussed in many forums as the headline rise of 30% was seen as high by many Singaporeans. Following clarifications, I think most households have realised that the net impact on them will be manageable. For example, I think people mostly understand now that for most people living in 1-room and 2-room flats, the average water bill will actually be lower by around $1 a month. For those living in 3-room flats, it may rise by around $2 a month; for those living in 4-room flats, around $5 and, for those living in 5-room flats, around $8. So, although this is an increase, most people I have spoken to believe that this is manageable. Everyone also agrees that water is a precious resource for Singapore and people should be encouraged to conserve as much water as possible. While nobody likes to pay more for water, I think everyone agrees in principle that water must be priced at a level that is sustainable for Singapore in the long term. One suggestion I have in this regard is whether we can relook at water pricing to make it more flexible, so that, like energy prices, it, too, may go up or down depending on the costs of production. This may mean that we have small gradual increases every year, rather than a one-off lump sum increase after 17 years.”
“For the individuals, it allows them to remain economically active and independent, and there many studies showing that there are mental and physical health benefits for seniors who remain active in the workplace. From the country's perspective, this would ameliorate the strain on our fiscal base as economically active seniors will remain more able to take care of themselves. Indeed, I would go even further on this front and suggest that both the Government and the unions look into the specific concerns employers have to employing older workers so as to eliminate structural factors contributing to age discrimination as much as possible in the workplace. Ultimately, it is my hope that older workers will be more able to stop work at a time of their choosing, rather than being forced into retirement that may be against their will. The second aspect of the Budget that I am heartened by is the manner in which it deals with environmental concerns. In fact, this Budget specifically takes into account environmental consequences. One of the fundamental causes of environmental pollution and damage is that businesses, in their determination to maximise profits, do not adequately take into account the damage caused to the environment by their business practices. The costs of environmental damage and pollution are often felt by the entire community, while the profit is enjoyed by the businesses themselves. This is a classic example of what economists call a "negative externality" where society pays the price that is higher than the benefit the company receives. A carbon tax is one way to ensure that businesses pay a price for polluting as well. This will, hopefully, incentivise businesses to innovate or invest in green technologies to reduce their carbon footprint.”
“We, therefore, have to be very prudent in our spending. Many sectors, for example, SMEs were also expecting more support from the Government. While I fully support the Government helping businesses to tide over difficult times, I am concerned about subsidies becoming entrenched. In many other countries, subsidies to different sectors of the economy become entrenched, allowing them to continue operating inefficiently and preventing the redeployment of resources to sectors where they are more likely to produce more value. In fact, I think the only principal justification for a subsidy to any segment is if greater welfare arises from that subsidy. Thus, if giving a business a small subsidy to tide over a difficult cyclical setback prevents substantial numbers of jobs being lost, then it is probably defensible. In short, there should be what are called positive externalities arising from Government support to businesses and not just private profit for the business itself. Let me now touch on three very specific measures that relate to this. The first is support for seniors. In this context, one of the schemes that I support in principle is the Special Employment Credit scheme which encourages the employment of older workers. With the rising quality of healthcare, many of our workers are able to work even though they are older and, often, it is with some sadness that older employees tell me they have been "retired" by their companies. The unspoken reason for this is often higher costs associated with hiring older workers, particularly in relation to matters, such as workplace insurance, as well as the availability of younger and cheaper workers. Yet, there are numerous benefits with allowing older workers to continue working for as long as they wish.”
“Mr Deputy Speaker, this Budget follows closely after the report by the Committee on the Future Economy (CFE). In the course of our five decades since Independence, we had to reinvent ourselves many times, with the Government playing a proactive role in enabling the process. The CFE Report marks the plan for the next phase of our development. The focus of CFE is rightly on economic growth, as this is the only way to meet the expectations of our future generations for better jobs and opportunities in an increasingly competitive and volatile global landscape. CFE includes a broad range of plans to ensure Singapore remains linked to the global economy, our people develop the deep skills needed to stay relevant and our enterprises develop the means to compete. There are roadmaps tailored for the different industries, too. All these are welcome, and I look forward to the upcoming initiatives and changes to execute against the plans by CFE. Equally important though is to ensure that our growth is equitable and sustainable and, on this, I would like to deal with a few matters. The first is a sustainable fiscal base. In this Budget, we already see some of the strains that will face us in the coming years. Our spending on a wide range of areas is expected to rise, including, in particular, on health and social spending, as our population ages. At the same time, our working population is likely to fall, creating a double whammy as our income tax base grows narrower and our spending needs rise. There are also limits to how much we can raise taxes, as we need to remain attractive as a business destination for the best companies and global corporations can simply choose to do business elsewhere if Singapore becomes unattractive, relative to other destinations.”
“Madam, just two supplementary questions. The first is: on the expanded role of pharmacists. I think the suggestion is for the pharmacists to be alternatives to doctors to prescribe simple medicine. For example, in Europe, many pharmacists are confident prescribing medicine for, say, common cold, simple symptoms, as long as you tell them you have no drug allergies. The second is a suggestion to also consider perhaps expanding the role of nurse practitioners to deal with common complaints, because I suspect a very large part of the GPs' load is with very standard ailments, which an experienced nurse practitioner could also handle, and both of these would probably reduce cost for patients.”
“It may be some 25 years before the reserved election for Indians comes up, and it may be that if an Indian gets elected as President before that, we may not even need the reserved election, but it is good to know that we have a system in place, should it ever be necessary.”
“However, minorities experience disadvantages all the time and it is heartening to know that active steps are being taken to ensure minority representation is possible at all levels, including the office of President. It is my hope that we will one day reach a stage when a member of any race can contest and win the Presidential election without the need for a reserve election, but until we get there, this is a helpful way to ensure that members of each community get a chance to prove themselves in the highest office and help us move towards that ideal. Mdm Speaker, I will say a few words in Tamil. (In Tamil): [Please refer to Vernacular Speech.] Mdm Speaker, I will say a few words in Tamil on this Bill. This Bill marks the consequential legislative amendments to implement the Constitutional changes to the elected Presidency. One of the important features is the mechanism to ensure that all the major racial groups in Singapore will have a chance to hold this office. While being a minority in any country has its challenges, in Singapore, steps are taken to confront the challenges wherever possible to ensure that we have proper representation. Tamil is one of the four official languages, and Singapore is one of the few places where Tamil can be used in Parliament. In Parliament, the GRC system has ensured that Malays, Indians and other minority groups have always had a place and a position to speak up. These new changes now ensure that even at the office of President, Indians and other minorities will have a good chance to be represented.”
“This would also mean, for example, we have, say, a foreign chief executive officer from a country with no community here who gets Singapore citizenship subsequently and decides he wants to apply, he would not qualify as a member of the "Other Minority" communities' category for purposes of a reserved election, but would still be able to apply in an open election under section 8F(2)(d). I think this is fair because the purpose of this reserved election is to ensure that all of our main communities feel represented in the highest office and, if a person is not part of a particular community, then they should contest in the open election. What this means is that the definition of "Other Minority" communities is potentially a prickly matter. What would be the factors to be taken into account in determining whether a particular community is one of the "Other Minority" communities for purposes of section 8F(2)(c) of the amendment? I would, therefore, be grateful for the Minister's clarification that the definition of "Other Minority" communities, as a provision, is not intended to be a "catch-all" for people who do not fit into the other categories by ethnicity, but is intended to be only for those who are part of the established minority communities in Singapore. If the Minister is also able to identify, of course, without limiting which groups may fall into the category of such communities at this point in time, that may also be helpful guidance as to what considerations need to be taken into account in determining whether a person is part of one of the "Other Minority" communities. Mdm Speaker, I am just concluding my section in English. Race is never a pleasant topic because we all like to believe that we live in a place where race does not matter.”
“Indeed, this would be the aspiration from the perspective of racial integration and permitting dual-ethnicities is logical if the person is able to identify with both communities and is accepted by both communities, but this may mean that dual-identities may then need to be recorded. The Bill, as currently drafted, permits a person to identify with only one community but a person who identifies with more than one community may then have to make a decision and would this person then be able to change decision if, say, the reserved election were for different community in a subsequent term? This is a problem that, perhaps, may not be faced in the immediate future because we have several terms before the next reserved election. But it is one that we should prepare for. The reserved election for Indians and Other Minority communities, in particular, may create issues in this regard. There is a common belief that this category includes everyone who does not fit into the other categories. Thus, everyone of mixed descent might feel they belong in this category based on ethnicity, whether or not they identify with a particular community. However, I understand the original legislative intent when this category was created for the purposes of the GRC scheme was for this category to be based around minority communities that were established in Singapore and not based purely on ethnicity. This appears to be the intention of this Bill as well since section 8F(2)(d) allows the person to declare he does not identify with any of the communities above. Thus, I believe the category "Other Minority" communities refers to a community that is established in Singapore.”
“On the other hand, if the intention is to leave this decision to the Presidential Council for Minority Rights, then they may only nominate one person for the position of Chairman, and five for each of the sub-committees, in which case it appears the Prime Minister will have no discretion on this matter. Next, let me move to a new section 8F which sets out the mechanism by which the race of a candidate is to be determined. The mechanism starts with the candidate self-declaring the community to which he considers himself to be a member. The appropriate sub-committee then decides if it agrees with the declaration. Thereafter, there is also a mechanism permitting the Committee to ask the candidate to re-apply if it is of a different opinion. Naturally, the mechanism is left flexible to deal with the complexity of race. It is part ethnicity and part identity. Thus, a Chinese person adopted at infancy by an Indian family may grow up identifying themselves as part of the Indian community, despite their ethnicity − indeed, interracial adoptions were common, particularly during the baby boom years when parents were unable to take care of all their children. Another issue is people of mixed descent. People of mixed descent may face more challenges and as interracial marriages get more common. Indeed, I understand the number has doubled from the last decade. This may become a more controversial issue. Would it be possible, for example, for a person of mixed heritage, say Indian-Malay, to believe they belong to more than one community?”
“This Bill before Parliament makes the consequential changes to the Presidential Elections Act to implement, among other things, the concept of the reserved election. In my speech, I will focus on these amendments, and given they are unique to Singapore, seek clarification on some of the areas that may be open to interpretation. This Bill creates a new committee called the "Community Committee", a committee that is made up of three sub-committees, with five members from each of the Chinese, Malay and Indian and Other Minority committees. It also creates a Chairman for this Committee. The language used in the proposed section 8E of the Bill is that this committee is to be appointed by the Prime Minister on the nomination of the Presidential Council for Minority Rights. For each of the committees, the Presidential Council for Minority Rights is required to consult such community organisations as it sees fit. This is slightly unusual drafting because the typical constitutional convention is for the President to act on the advice of the Prime Minister, whereas this particular provision requires the Prime Minister to appoint based on the nomination of the Presidential Council for Minority Rights. One clarification I wish to seek from the Minister is whether this is a decision in which it is intended that the Prime Minister is to exercise discretion, in which case it is expected that the Presidential Council for Minority Rights would put forward more than one nominee for the post as Chairman, from which the Prime Minister will select one, and more than five individuals for each of the five sub-committees from which the Prime Minister will select five.”
“Mdm Speaker, I speak in support of the Bill. In November last year, following the report of the Constitutional Commission headed by Chief Justice Sundaresh Menon, we passed landmark amendments to our Constitution in relation to the elected Presidency. One of the major changes was accepting the Commission's recommendation of the concept of a "reserved election" in the event a particular race had not had the chance to hold the office of President after five terms. This was to ensure that all the major communities would be represented in the office of elected President. While there were differences of opinion on whether or not such a "reserved" election was appropriate, almost everyone agreed with the principle that every major community ought to be able to represent the country as President. Indeed, the critics mainly argued that such a system was unnecessary because Singaporeans were unlikely to vote along racial lines and there is no reason to institute such a system. During my speech on the constitutional amendments, I had supported the concept of the reserved election because I believed it was a self-correcting safety net. If the critics were right that race was irrelevant, and members of each of the races were able to prevail in an open election, then this safety net would never be triggered. On the other hand, if there was no President of a certain community after five terms, then it would be triggered, and hopefully, a person of that community would come forward. In the long run, as Singaporeans get used to having Presidents of different communities, hopefully, race will matter less and minority candidates would start winning open elections, making the reserved election mechanism redundant.”
“Of course, rules can be developed around these, and there are many other jurisdictions that have these arrangements to which we can look to for guidance. The good news is that we are not pioneers in that area and we can definitely learn from all those who have gone before us.”
“At many of our Meet-the-People Sessions, we meet litigants who may have either personal injury issues or, more likely, claims for divorce or other personal issues for which they may not qualify for financial assistance under the current Legal Aid schemes. They may have the means to pay, but I guess, like the bigger corporates, they, too, may, in fact, want someone to share their risks. Many have even asked me if there are any lawyers that would be prepared to work and then get a share of the outcome, and I have had to tell them that that is not the way the legal profession works in Singapore. A lawyer cannot peg his fees to what you get from your settlement. But the reality is that if you are talking about access to justice, this may be one of the workable solutions for the truly impecunious litigants. In conclusion, while I think these changes play an important role in maintaining Singapore's position as a financial, corporate and legal hub, I would say that this is the first step in what, I hope, will be a bold journey forward. I agree with my friend Mr Murali's suggestion that they should also go towards domestic litigation and domestic arbitration because, in principle, they are the same thing. It is a sharing of risks. I would even go further and say it should even go towards contingency fees because, ultimately, the concept is the same. If you are allowing a third-party to have an interest in the outcome of the litigation, there is no harm in allowing a lawyer to do that. I think the abuses can be contained and the fundamental principle of access to justice will be enhanced if we allow these more creative fee arrangements.”
“However, if we are still taking access to justice as being one of the important aims for these more creative fee arrangements, I would suggest that future legislation go even further and consider looking into allowing contingency fee arrangements. Contingency fees, as some of my colleagues mentioned, have also got a bad reputation. The US, while being a jurisdiction where parties are very proud of being able to access the court, also terrifies business owners because of the astronomical claims that sometimes come out, and its horrible reputation ‒ I guess Mr Murali mentioned it ‒ for personal injury claims. However, I do not think this risk will be as great in Singapore for two reasons. First of all, we do not have class action litigation as they do in the US. Class action means that you do not even need a named plaintiff to commence the action. You just need to define a group of people. So, this allows lawyers to actually take on claims on behalf of very large groups of unnamed people. Singapore does not have that. Secondly, we also do not have jury trials. Jury trials are where a lot of the largest personal injury awards are made, and that does not exist here. So, my guess is that we will probably not have the US-style abuse of process. I still think this is a move that requires some consideration, and certainly consideration needs to go into how we can protect vulnerable litigants, particularly in relation to fee arrangements that may be unfair to them. By and large, if we are talking about ensuring access to justice, particularly for impecunious litigants, chances are that contingency fee arrangements are more likely to achieve that objective.”
“In international arbitration, for example, where Singapore firms take on international firms from other jurisdictions, the international firms' clients may have more creative funding arrangements, which means that they may likely have a greater ability to prosecute the claim. Likewise, when a corporate client is deciding which lawyer or counsel to appoint, they may choose the jurisdiction of the lawyer based on their ability to fund their claim. So, for example, they may decide to go to a London law firm rather than a Singapore law firm if they were able to get third-party litigation funding in London. So, in that respect, I think this is an important change that helps to mitigate some of the disadvantages that Singapore lawyers may face when dealing with international competition in international arbitration. This step is something to be welcomed. However, I would add this important caveat. One of the reasons that third-party funding was allowed in many other jurisdictions was to facilitate access to justice. However, if we look at the example of jurisdictions, such as the UK, in fact, the parties that use third-party litigation funding are mostly sophisticated corporates. And, typically, the corporates will choose external funding for litigation not because they cannot afford fees but because they want to share their risks. After all, litigation is a high-risk venture and you have to pay the lawyers' fees upfront. So, if someone else would share that risk, then the corporates may well make a business decision and they may also be happy to share some of the gains. So, there is a certain benefit in this certainly, and I think my colleague Mr Murali's analogy to insurance is actually quite apposite, because what this is really is a pooling of risks.”
“So, it was in order to facilitate access to justice that many other jurisdictions started relaxing these rules. The United States (US), interestingly, started by relaxing the rule on contingency fees, meaning that lawyers were allowed to have an interest in the outcome of the litigation. This meant that a party did not have to pay the lawyer's fees upfront but could give the lawyer a quantum of the proceeds from any claim they successfully get. The UK was much slower to relax the rules on contingency fees but eventually did that. The UK, however, was one of the leaders in pioneering third-party litigation funding. What this meant is that someone else who has no interest in the litigation could help to fund that litigation in exchange for a return of the proceeds. In principle, this is what the current legislation is aiming to do. It allows third parties to fund litigation expenses. It appears to be focused currently on international arbitration. Singapore has prided itself on being a leading financial and legal hub, and the strong rule of law in Singapore has helped to facilitate this reputation. I think the speakers before me, including the Senior Minister of State, have pointed out that we are one of the top hubs for international arbitration. However, unlike jurisdictions, such as the UK, Australia and even the US, we have, until now, not permitted more creative fee arrangements that allow financing of claims. So, in our competition to be a hub for international arbitration, Singapore is sometimes at a disadvantage.”
“Mdm Speaker, I declare my interest as a dispute resolution lawyer in private practice. It had always been a part of the common law heritage that while litigation was necessary, it should not be encouraged. There were several rules that had developed over the ages in common law jurisdictions, including the tort of champerty, which says that a person with no interest in a lawsuit should not be funding that suit nor have a share in its returns, or the tort of maintenance, where a person interferes in a legal suit he has no interest in. Along with these two rules, there was also an additional rule which the current legislation does not address, and that is a rule that prohibits lawyers from having a financial interest in the outcome of a suit. This is a rule against contingency fees. All these rules were designed to prevent frivolous claims, abuse of vulnerable litigants and, in the case of lawyers, it was also to ensure that their primary duties as officers of the Court would not be compromised by trying to advance their client's case at all costs. These rules were developed at a time when there was a need and, obviously, would have served its purpose as it has lasted for hundreds of years. The reality though is that access to Courts and legal advice is expensive and getting more so. In many situations, an individual or entity may have no ability to pay legal fees but may, nonetheless, have a valid claim. A classic example that people can relate to is personal injury. A person who suffers a serious personal injury may have a valid claim but may have no financial means to advance that claim, either to pay lawyers or to the Courts, and may end up recovering nothing.”
“I thank the Minister and I am glad to know that there are no military secrets compromised. Is Singapore also considering commercial claims against the carrier, in the event of any delay or losses that may arise if the Terrexes are not returned or if there are some other delays in the return?”
“The final thing I should point out is that there are some concerns that there is no limitation on which countries can become parties to this Convention. While we will not name specific countries, there are some countries where people have more doubts about the judicial systems. Page: 71 For example, for an award where we may suspect the legitimacy of that judicial system, does it mean that we will automatically have to enforce it? Well, the short answer is that apart from one carve-out for public policy, the answer would be yes. This is why it is quite important for parties to make a clear choice on the choice of law because, ultimately, it is for parties to choose which forum they like. This was the criticism that was made about international arbitration as well when it first took off because, ultimately, parties choose their arbitrator. There is no real quality control over that. But international arbitral awards are still in force, and that is because we recognise the choice of parties. So, likewise over here, if parties choose a certain jurisdiction that happens to be a contracting state, then we are obliged to recognise that, subject to public policy and other considerations. But overall, I think this is an excellent development. I think it gives parties a great deal more choice in resolving their disputes. My only suggestion is that we wear our hats on the international front and get more people to sign up to the Convention.”
“The EU was the second and that took place only in about October last year. The EU brought in the other 27 countries. Singapore is the next country to ratify it. The US has signed it but has not yet ratified it. In fact, right now, the only parties to which this Bill will apply would be Mexico, Singapore and most of the EU, with one exception. I believe that this Bill has tremendous potential but it still does not have the same reach as an arbitral award because of the number of signatories to the underlining Convention. One of my suggestions, in fact, if we were to make this Bill even more meaningful, would be to try and get more of our friends to sign up to the Convention. We could start with ASEAN because a lot of our business is in ASEAN, and other trading partners as well, potentially India, China. This would help to give the Bill even more reach because the more parties that ratify the Convention, the more we will allow the dual enforceability of court judgments. Courts, otherwise, have a big advantage over arbitration as a forum for dispute resolution. I should also caveat that there are some complex disputes for which even this Bill will not provide easy answers. I explained that multi-party disputes are one of the biggest limitations of arbitration. That limitation may still apply in Court. For example, if a dispute were to occur entirely, say, in a third country, but the parties of that dispute ask for it to be resolved in a Court in Singapore and there were non-parties involved, it does not automatically follow the Singapore Court's jurisdiction over the non-parties. So, it does not overcome all the limitations but I think it still gives more flexibility to involve non-parties to the arbitration agreement.”
“There are still important differences between the two for parties that are Page: 70 deciding whether to choose to use arbitration or to use the Courts. As a practitioner, I can say that one the biggest advantages of the Courts is that where a dispute is complex and where non-parties may be involved, it is easier to get them involved if the dispute is in Court. So, it is one of the classic rules of arbitration that only parties to the arbitration agreement can bring their dispute in that arbitration agreement. If there is a dispute that involves the two parties in the arbitration agreement as well as non-parties, the only way the non-parties can get involved is with the consent of both parties to the arbitration agreement. However, if the same dispute is brought into Court, there is no such limitation on the Courts' power to bring the other parties involved in the dispute into that dispute, provided the Court otherwise has jurisdiction. This actually gives the Courts a great deal more flexibility and, in fact, the choice of using a Court would give you more flexibility if you envision that your dispute may involve other parties. So, this is an important advantage the Courts have over arbitration. This used to be counter-balanced by the limitation on enforceability of a Court award in other jurisdictions, but this Bill will remove that limitation somewhat. It is also here that we come into one of the limitations of this new development and, that is, the number of contracting states. The New York Convention for Arbitral Awards has about 156 parties. That means an international arbitration award can be enforced in 156 different countries. This current Convention is relatively young. Mexico was the first country to ratify it.”
“The first, and this is reflected in Article 5 of the Convention as well as section 11 of the Bill, is that a court that is chosen, as long as it is one of the courts that is in the contracting states, these courts will have to take up the dispute, subject to certain exceptions. But otherwise, if a court is chosen as the venue for dispute resolution, it has to take up the case. This is even if the case has no other relationship with the country concerned. The second is that – this is in Article 6 of the Convention as well as section 12 of the Bill – the courts of the countries that are parties to it must actually stay proceedings or dismiss proceedings if they are subject to the jurisdiction of another court. So, what this means is that even if the court might otherwise have had jurisdiction, as a result of this clause, they would have to decline to take up the case. This is very similar to what happens in the arbitration framework as well. If a dispute is subject to arbitration and it is governed by the International Arbitration Act, typically the courts will stay any court cases that try to go around that clause. The final component is the enforcement of judgments and it is under Article 8 of the Convention and section 13 of the Bill. This basically says that courts have to give effect to judgments from another contracting state. What these three mechanisms do is, in effect, they give judgments in Singapore an effect similar to an international arbitral award, in that a judgment that is made here can be enforced on any other party that is a contracting party to the Hague Convention. It is in this respect that it is also important to look at some of the implications. I will just do a quick comparison.”
“Mdm Speaker, I rise in support of this Bill. I should declare my interest as a lawyer who practises dispute resolution and deals with cases that would be considered international cases under this Bill. This Bill is an important development in Singapore. Singapore started developing as a centre for international dispute resolution in the 1980s. We became a party to the New York Convention on Enforcement of Arbitral Awards in 1986 and this heralded the rise of Singapore as a dispute resolution centre for international arbitration in the 1990s. The importance of arbitration, and especially international arbitration, was manifold. First of all, it provided parties the opportunity to have their disputes resolved before a confidential forum. It was a one-stop solution; there was no appeal on the arbitral award generally. But perhaps, most importantly for international disputes, it also allowed an arbitral award obtained in Singapore to be enforced in many other countries and, in particular, all the countries that are parties to the New York Convention. At the moment, there about 156 such countries. What this means is that parties who are involved in a dispute that involved multiple jurisdictions, can now choose any country that is a party to the New York Convention and that includes Singapore, have the dispute resolved there, and if that dispute is an international arbitration, they can enforce it in many other countries. This has been an important attraction of international arbitration. It is in this context that this Bill changes the equation somewhat. What this Bill does is that it gives Court judgments an effect that might be similar to international arbitral awards as far as enforceability goes. There are three key components to this Bill.”
“This clarification is for Senior Minister of State Josephine Teo. One of the big differences between France and many other countries is that they are traditional socialists in many ways and that includes education. So, they start from a very early age, preschool, I believe from the age of three or so, that is institutionalised care for children. How big a factor do you think that plays? On this particular issue, I will just plant my flag and say that when it comes to education, I do sit with the socialists. I think that that is one of the great equalisers. Singapore has done well because from primary school onwards, there is a fairly level playing field. Everyone gets into largely government schools. But now, I think things start a bit earlier and, in preschool, there is a much greater diversity of services. Do you think there is a role – I think right now, we have the anchor operators – for them to have a much larger share of the preschool market, so that more people will have access to it? We judge success by the number of people who take up preschool education as opposed to just a number of new centres that are set up. So, the aspiration should be: can we get all children enrolled, for example, in nursery or even earlier, if necessary?”
“Mdm Chair, as is the case with many developed countries, Singapore faces a declining birth rate. According to the United Nations, Singapore is one of the bottom 10 countries in terms of the total fertility rate (TFR). Our TRF is around 1.25. Many other countries in this group are developed economies, which include Hong Kong, Taiwan and Korea. On the other hand, the countries with the best TFRs appear to all be the developing world, with Sub-Saharan Africa having nine of the top 10 slots, with TFR greater than six. Are there any lessons we can learn from other countries? There seems to be an inverse relationship between development and population growth. Amongst the developed countries, there are some that are not doing too badly. I understand France is leading the pack, with a TFR of around two; not quite the same as Sub-Saharan Africa but much better than us. I wonder if there are any lessons that we can learn from developed countries that seem to have been able to deal with the TFR. The best performers, as I understand, are France with a TFR of 2; and Ireland, Iceland, New Zealand, all of whom have a TFR of above 1.5.”
“Mdm Chair, in Tamil. (In Tamil): [Please refer to Vernacular Speech.] The National Translation Committee (NTC) was set up in 2014 to improve the quality of translations across the whole of Government. However, the Tamil community is one of the smallest and we often get feedback on issues with Tamil translations. I suspect this also has to do with resource constraints. Are there any plans to improve the quality of Tamil translations services? Design 2015”
“The Ministry's support for public sector broadcasting has played an important role in keeping local content alive on television in Singapore. Local content has faced increasing competition. First, in cable channels. Now, the media landscape is set to change again; Netflix appears to be coming on the scene. This is likely to provide even more competition to our local content. Our local content has survived the challenge of cable TV; the question remains whether or not it is going to survive the challenge of Netflix. I would be interested to know if the Ministry has any ideas on how we might help local PSB content remain relevant and interesting to Singaporeans to keep up with these new entrants. In this regard, I would also be interested to know the details about the Ministry's review of Okto and Channel U. Besides the reviews to these channels, what improvements can be made to public service broadcasting (PSB) content on the vernacular channels?”
“Mdm Chair, cyber threats are on the rise and are worrying because of their scale. I had spoken about the hacking of the Bank of Bangladesh's accounts in New York during the Ministry of Defence's (MINDEF) Committee of Supply (COS) debate. Attempts were made to squirrel out almost $1 billion. The Federal Reserve Bank of New York managed to prevent about $850 million from being moved but more than $100 million was still transferred out. If hackers can target bank accounts in New York, they will likely have the capability to target banks and other IT infrastructure in other parts of the world, including Singapore. I understand that the Cyber Security Agency (CSA) has been set up to build up capabilities and to respond to cyber threats. CSA brings together Government agencies as well major players in critical sectors such as energy, banking, and financial sectors, and other critical parts of our infrastructure. How does CSA ensure that these critical sectors are prepared for cyber threats? Minister Yaacob Ibrahim also announced in January this year that new legislation was intended to provide CSA with new and wider powers. What does the proposed legislation add to the existing law, which is covered by the Computer Misuse and Cyber Security Act?”
“Mdm Chair, I would like to thank the Members for their contributions, and the Minister and Senior Ministers of State for their responses. I think we have had a very lively discussion. In many countries, the military is seen as a powerful remote organisation. In Singapore, it is quite different. In Singapore, because we have NS, I think almost everyone is either serving in the military or know someone who is serving in the military. So, in that sense, it is very close to home. At the same time, it is respected around the region, it is respected by our contemporaries, I think that is quite an important achievement. Madam, I am proud of the SAF and proud also to be serving in the SAF. I am now into my Reservist on Voluntary Extended Reserve (ROVER) stage. It is something many of us are proud of. With that, Madam, I beg leave to withdraw the amendment. [(proc text) Amendment, by leave, withdrawn. (proc text)] [(proc text) The sum of $13,296,000,000 for Head J ordered to stand part of the Main Estimates. (proc text)] [(proc text) The sum of $671,000,000 for Head J ordered to stand part of the Development Estimates. (proc text)]”
“Mdm Chair, I would like to discuss one of the new threats that the Minister mentioned, which was cybersecurity. There is CSA and I think MINDEF are looking at cybersecurity issues. I am just wondering what is the coordination between the two, because there will be a lot of joint issues faced by both. One looks at, I understand, state-related issues; the other looks at domestic, commercial facilities and so on. I think there is probably a lot of coordination required and lots of the types of threats both tackle will be similar.”
“Mdm Chair, defence diplomacy has been an important component of Singapore's defence strategy. While the Ministry of Foreign Affairs manages official diplomatic ties between countries, our armed forces have also played an important role in building relations with counterparts in other countries. These ties have helped us get access to training spaces abroad, opportunities to train together with foreign armed forces and, perhaps most importantly, to build good relations with our counterparts and foreign militaries so that we will have friends should the need ever arise. In this regard, two of the major powers that operate in this region are the US and China and both play an important role in the security and stability of the region. I was quite happy to know that Singapore has entered into a Defence Cooperation Agreement with the US as well as a Four-Point Consensus with China that will help deepen ties between these two countries. Can MINDEF provide an update on its defence relations with the US and China in the past year?”
“We understand that the hackers had originally tried to wire out more than $1 billion but the US Federal Reserve managed to block some $850 million of this from being transferred out. Sri Lanka has since managed to trace around $20 million and returned these sums. But the money channeled to the Philippines, amounting to some $80 million, still remains untraced. Clearly, the figures that were transferred out were staggering and a demonstration of the power of hackers being able to get through government institutions. So, it is very clear that states can become victims of cybercrime. An equally worrying trend is that the power of hacking is also being harnessed by state actors, too, including countries that are supposed to be friendly with each other. News, for example, of the German Chancellor Angela Merkel's phone being hacked by the US National Security Agency created diplomatic tensions between countries that were otherwise very good friends. But this may be a microcosm of state-sponsored hacking that is probably happening elsewhere as well. Given that cyber threats are on the rise and state actors can be both victims as well as the responsible parties, does MINDEF have plans to develop capabilities to counter this threat? Cybersecurity”
“First, on homeland security. Traditionally, SAF has focused its preparations on external threats while the Home Team has focused on homeland security matters. Thus far, the Home Team has done an excellent job in keeping Singapore safe and has anticipated and foiled a number of potential terrorist threats by identifying and arresting key people in time. However, in the event of a major terror attack, say along the lines of Mumbai or Paris, which we hope will never happen in Singapore, but where the attack is large scale and the perpetrators are armed with firearms and bombs and hundreds are killed or injured, it may be necessary for the military to step in both to engage and eliminate the perpetrators as well as to restore public confidence. I believe the military's role in homeland defence should be carefully calibrated, as deploying the military would send a clear message to the public that the threat is a serious one. If used for minor threats, the public may get the wrong message and get unduly worried or panic. On the other hand, if used in a situation where panic has already ensued following the attack, it may help calm the situation. Are there any plans for SAF to step up its responses to homeland security to deal with threats, such as terrorism? Cyber Threats On cybercrime, recently, there was a shocking report that hackers had hacked into the Bangladeshi Central bank accounts in New York with the Federal Reserve and stolen some $101 million. An investigation by US cyber forensic expert Fire Eye revealed that much of this money had been channelled to accounts abroad, including places like the Philippines and Sri Lanka.”
“I will be interested to know what the Ministry of Defence's (MINDEF's) views are, both in relation to the threats I have described as well as what they believe to be the most salient national security challenges Singapore faces today? Evolving Security Environment”
“We understand that Southeast Asia is a key recruitment area for the Islamic State of Iraq and Syria (ISIS) which has established Katibah Nusantara in the region – their fighting force which was responsible for the 2016 Jakarta attacks. The terrorist attacks in Brussels and Paris are grim reminders of what terrorists are capable of. Second, South China Sea. The South China Sea tensions continue to escalate despite the fact that the legal dispute resolution process is moving forward – indeed, maybe, it is escalating in response to this process. The latest actions see China reclaiming land, building up defence installations and lighthouses in the region, with the US and Australia continuing to assert their freedom of navigation. The Philippines and Vietnam, meanwhile, maintain their claims through the legal process. Even more worrying is the Korean Peninsula, where North Korea continues its nuclear testing and, perhaps, for one of the first times I can remember in history, making specific threats to launch a nuclear strike. This may change the face of warfare if that were to materialise. Closer to home, the Straits of Malacca continues to have stories of piracy. In June last year, eight men armed with pistols and machetes hijacked the Orkim Harmony, an oil tanker carrying some 6,000 tonnes of petrol worth more than $5 million, and tried to sail the ship to a friendly harbour where they could siphon off the liquid cargo. Their plan was foiled when they were spotted by security forces, but they managed to slip away in a lifeboat. Mdm Chair, some of these conflicts may seem far away, some seem much closer to home but I believe all of them are important considerations for us. As a small, interconnected country, Singapore is likely to be affected by these threats.”
“Madam, I beg to move, "That the total sum to be allocated for Head J of the Estimates be reduced by $100." In 1971, when the British armed forces withdrew from Singapore, that marked the end of some 150 years during which the British oversaw Singapore's defence. Quite suddenly, for the first time in history, Singapore was left to take care of its own defence. There were many challenges at the time. We had barely been independent for six years and were still finding our feet as a nation. The withdrawal of the British forces also had serious economic implications. Asia, like the rest of the world, was divided by the Cold War conflicts and tensions with wars raging in Vietnam and Korea. Closer to the neighbourhood, Konfrontasi was still fresh in our memories, as were the communist and communalist riots on the domestic front. The challenge for a small country is that should it be subject to aggression by a larger country, it will still need to be able to hold its own. Thus, Singapore has always had to build up its armed forces in anticipation of having to defend itself against potentially larger aggressors. We tried to overcome the glaring disadvantage of size by starting National Service and investing in better technology. The Singapore Armed Forces (SAF) is now one of the most respected armed forces in the region. Our military leaders perform well in international assignments and our armed forces have made a good name for themselves assisting countries in disaster relief and humanitarian efforts. However, the purpose of the SAF remains primarily to address security threats and I will highlight a few that remain a concern. The first, terrorism. The spread of terror continues to be ever present in the region.”
“Mdm Chair, I would like to thank Members for their contributions and also the Minister and Senior Ministers of State for their responses. I also record my thanks to MFA. Not only is Singapore a small country, I think the MFA also has a relatively small budget. Yet, despite that, it has punched well above its weight on the international stage, all the way from the Asia Pacific to the Arctic Circle. I also understand that we are the largest investors for China, Indonesia and, I believe, second largest for India, the three most populous countries in the world. And I think it is quite extraordinary that Singapore has managed to achieve all this, given its size and scale. I am also heartened to note that even though the Minister has changed portfolios, he still takes a keen interest in the haze problem and will bring blue skies to Singapore, hopefully, in the next few years. With that, Madam, I beg leave to withdraw my amendment. [(proc text) Amendment, by leave, withdrawn. (proc text)] [(proc text) The sum of $446,826,500 for Head N ordered to stand part of the Main Estimates. (proc text)] [(proc text) The sum of $76,000,000 for Head N ordered to stand part of the Development Estimates. (proc text)]”
“Mdm Chair, one of the exciting developments this year was the start of the AEC. What I am interested to know is whether there is any plan to build some institutions around this, for example, a regulatory institution, and maybe a dispute resolution mechanism, because as there are more and more transactions, there are likely to be more and more issues that will crop up, not all of which will require government-to-government interactions. So, maybe it is good to build some institutions that can handle the small issues that crop up. Europe, for example, has the European Court of Justice, European Commission, European Parliament. I do not think we need all of that, but the minimum is some kind of dispute resolution and regulatory mechanism.”
“Countries around the country and the world are coming together to fight the threat posed by international terror organisations and, in particular, the Islamic State in Iraq and Syria (ISIS). I would like to seek an update on the regional security situation and whether these growing threats will have an impact on Singapore. While we need a strong defence and Home Team, I believe that it is also important to work with neighbours in a collaborative fashion to help alleviate the difficult security situations. [(proc text) Question proposed. (proc text)] China-Japan-US Relations”
“He is clearly focused on developing India's economy and attracting foreign investment to do so. Despite its small size, Singapore is one of the largest foreign investors in India. I would be interested to know what Singapore's plans are to deepen our relations with India. In particular, I would be interested to know how the discussions for the Regional Comprehensive Economic Partnership (RCEP) are going and whether we can better bring India more into the ASEAN region. Regional Security Mr Chair, in my second cut, I would like to focus more on security concerns. The challenges and threats to our regional security appear daunting. I had discussed the tensions in the South China Sea in my earlier cut. Elsewhere in North Asia, tensions in the Korean Peninsula appear to be escalating. North Korea has continued its nuclear testing, carrying out its fourth test in January 2016, and is issuing regular statements about a potential strike against Seoul and Washington. In response, South Korea and the US have carried out some of the largest joint military exercises. Given the potential Page: 104 nuclear capabilities of North Korea, this dispute could have serious implications. Singapore is one of the few countries that have diplomatic ties with both North Korea and South Korea. While it is ambitious, I am not sure if there is something we can do in this difficult situation. Closer to home, the threat of extremism continues to creep insidiously. The terrorist attacks in Brussels and Paris have captured the international imagination, conveying the message that nobody is safe anywhere in the world. Arrests continue to be made in Singapore, Malaysia and Indonesia of individuals who have been involved with international terrorist organisations.”