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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“In an important development, the Tribunal has now ruled it has jurisdiction to hear the case, and the hearing on the merits will proceed. However, notwithstanding the ongoing arbitration, tensions have been escalating, the most recent example being China's opening of a lighthouse on an island it reclaimed in the last year. Is there anything we can do to persuade parties to facilitate the peaceful resolution of this dispute? In particular, in 2002, all parties, including China, the Philippines and Vietnam, along with other ASEAN countries, agreed upon a Declaration on the Conduct of Parties for the region. One of the points agreed upon in this Declaration was to adopt a Code of Conduct (COC) for the region. I would be interested to know MFA's views on whether there is any facilitative role Singapore might play in the process to help cool tensions and resolve this dispute in accordance with international law. Finally, I would like to touch on relations with India. India is a country with tremendous potential. Its population is anticipated to overtake China's and it is at an earlier stage of its development, meaning there is more potential for growth. Relations with India are historic and significant. It was India's independence in 1947 that paved the way for all the other British colonies, including Malaya and Singapore, to become independent. Mr Lee Kuan Yew was an admirer of Mr Jawarharlal Nehru, India's first prime minister. The relations between our countries have become even stronger in recent years. Prime Minister Modi clearly holds Singapore in high regard, paying us a visit late last year and even declared a day of mourning in India when Singapore was also going through mourning last year.”
“This is potentially a huge opportunity for all parties as two-thirds of world trade, or about $1.6 trillion, take place in this region. However, the TPP still needs to be ratified in the domestic legislatures before it comes into force. In this regard, I have some concern with some of the statements being made in the course of the US Presidential Elections that some candidates may want the TPP to be renegotiated. There are also statements that the US might be intending to be less involved in Asia. I am concerned this may also put pressure on Congress not to ratify the TPP. Should Singapore be concerned about some of these domestic developments in the US? Do we believe that we can persuade the US to remain and to extend its involvement in this region? Next, I would like to talk about relations with China. Singapore also has strong ties with China, the world's most populous country and the second largest economy. China is one of Singapore's largest trading partners, and Singapore has invested heavily in China over the decades, including the Suzhou Industrial Park and the Tianjin Eco-city. It was also an honour for Singapore to host the first talks between China and Taiwan. We have good ties with both China and Taiwan and, when there was an interest between the two to try to Page: 103 bridge their differences, we were their natural choice. One area of growing concern though is China's position in relation to the South China Sea. The tensions are rising between China and other friends of ours, including the Philippines and Vietnam. They dispute China's nine-dash line claim. The Philippines has submitted this dispute to arbitration before the Permanent Court of Arbitration and China has refused to participate, disputing the arbitral tribunal's jurisdiction.”
“Chairman, I beg to move, "That the total sum to be allocated for Head N of the Estimates be reduced by $100." Singapore is a small country, but one which has punched well above its weight on the international stage because we have made ourselves relevant to others and built up trust and credibility over the years since our independence. In this Budget, we are charting the course for Singapore to SG100. Even in this new journey, I think it is important to remember the wisdom of the past and I start with the quote from Mr Lee Kuan Yew: "Friendship, in international relations, is not a function of goodwill or personal affection. We must make ourselves relevant so that other countries have an interest in our continued survival and prosperity as a sovereign and independent nation. Singapore cannot take its relevance for granted." In this context, I would first like to focus on Singapore's relations and relevance to some of the major powers in the region. First, the United States. Singapore has had a long-standing and deep relationship with the US, which has been important to us for both economic and security reasons. The US is the world's strongest power, both economically and militarily, and its involvement in the region has helped to maintain stability and balance. The swift US response to acts of aggression, for example, in response to the Iraqi invasion of Kuwait and more recently, in response to the war against terror, is quietly reassuring for small countries like Singapore and a strong deterrent to potential aggressors. Economically, the US has been getting more integrated into the region, too. The recent high point of this integration is the signing of the Trans-Pacific Partnership (TPP). Many countries have come together for this, including Japan and the US.”
“In this regard, I welcome the measures in the Budget to further assist with the costs of bringing up young children. Two measures are of particular note. First, the First Step Grant provides $3,000 into the child's CDA account. This account can be used for the child's healthcare and childcare needs and this can be of help to them. Additionally, parents will also continue to enjoy dollar-for-dollar matching for amounts put into the CDA grant. Thus, if they put an additional $3,000 into their CDA account, this will be matched dollar-for-dollar by the Government. Currently, not all parents fully utilise this account and some do not use it at all. I encourage all parents who have concerns about meeting the cost of childcare to maximise the CDA grants available if necessary. Additionally, the KidSTART scheme will provide additional help for low-income families for the first six years of their lives. The Minister mentioned that this is in recognition of the importance of the early years of education and to ensure that children from poorer backgrounds do not miss out on this. With these new schemes in place, I would strongly encourage all parents to enrol their children in preschool education. If you know of neighbours and family members who have not done so, please encourage them to do so. I believe that with the help and financial assistance available, all families should be able to send their children to preschool so that they will be adequately prepared for primary school.”
“My only concern is that as these support schemes get increasingly institutionalised and the base of people receiving support rises relative to the working population, there is likely to be significant additional strain on the Government Budget. It is my hope that we will continue to Page: 98 finance these schemes. The only way I can see this being sustainable, apart from increasing taxes or finding other sources of income, would be to continue growing the economy. The biggest challenge we face will be to continue to be creative in finding new drivers of growth, so that we can support what is likely to be a falling working population and larger base of dependants. Mr Deputy Speaker, I will speak in Tamil. (In Tamil): [Please refer to Vernacular Speech.] Mr Deputy Speaker, at the opening session of this Parliament, I spoke about the importance of sending children to preschool. About 17% of Indian families had not sent their children to preschool, and this may lead to more difficulties for them once they start primary school as they will not have had the same head start as their peers. One of the facts that I believe that had contributed to this were concerns about the costs of pre-school. At the time, I mentioned the many schemes that the Government already had to help defray the cost of preschool education, including the availability of Centre-based Financial Assistance Scheme for Childcare (CFAC) and the Kindergarten Fee Assistance Scheme (KiFAS) grants. With these grants, the cost of childcare and kindergarten education can be significantly defrayed for those with lower incomes. However, even with those measures, there are concerns about the cost of bringing up children.”
“Additionally, in the event the Government wishes to be more creative or adventurous in extending support to SMEs, another option might be to provide low-cost financing, rather than grants. There are some Budget measures that follow this principle including the SME Working Capital Loan, as well as the SME Mezzanine Growth Fund. But in principle, I would support financing as opposed to grant because this way, companies take the benefit of financing when they need it to get over a tough patch, but the expectation is that they will pay it back in future. This may also give the Government more ability to finance and support a greater range of activities as earlier successful finance recipients pay back what they have received. On a related note, although this is an expansionary Budget, I am heartened that, overall, there is still going to be a modest Budget surplus. Some of this is due to increases in revenue from expanding the definition of Net Investment Income. It is also good that much of this is going towards social spending. As our population ages, the reality is that the workforce will shrink relative to the non-working population. The working people may face multiple strains of supporting young children and others who are unable to work on account of age or illness. To the extent that the Government is able to socialise some of these costs, the burdens on this working group would be less. The Budget schemes including GST Vouchers, Silver Support, service and conservancy changes (S&CC) rebates and support for children through Children Development Account (CDA) grants and KidSTART, all fall within this category and, as they are all being provided within the context of a balanced Budget, they are to be welcomed.”
“Page: 97 There are also a number of measures that are going to continue and these include continued support from the Transition Support Package, as well as the extension of the Senior Employment Credit (SEC). Given the tough climate, I have no quarrel with these as they stand at the moment. The only caution I would sound is that we should not institutionalise subsidy to industries. Many developed countries, in response to pressure, have subsidised a wide range of sectors, including agriculture and manufacturing, under the pretext of supporting infant industries. These subsidies can prove very difficult to remove. This is because the cost of a subsidy is distributed across all of society, while the benefit is concentrated on just a few people. Thus, the people who benefit from it would have a strong vested interest in resisting the removal of the subsidy, while the people paying the price are usually too large a group to be specifically concerned. Systematically expanding the system of subsidies, will add to the long-term fiscal burden a country faces and add to the strain that future generations must pay if allowed to expand imprudently. Singapore has stayed clear of this because most Government grants or incentives have very specific parameters and we try our best not to make them recurring even though, at times, they get renewed at Budgets. However, as we expand this list of grants and support, we must be cautious not to fall into the trap some other countries have fallen into of having institutional subsidies for various sectors of the economies. These subsidies can then develop into crutches.”
“Mr Deputy Speaker, I speak in support of the Budget. It is anticipated that the global economy will slow this year. China, one of the main drivers of global growth in the last few years, is slowing. High commodity prices, which fuelled growth in many parts of the developing world, including Southeast Asia, the Middle East, Africa and South America, are also dropping. It is anticipated that many industries that had developed to support the commodity price boom, including mining, offshore exploration and shipbuilding and rig-building, will slow. Even alternative energy, which always becomes more economically viable when energy prices are high, may also become less attractive. Financial institutions, which have extended credit to these sectors, may also face a problem of rising non-performing loans. Singapore, apart from facing these global headwinds, will also be going through its own economic restructuring. Local businesses are still adapting to manpower constraints from the tightening controls on foreign labour. In this context, an expansionary fiscal Budget is to be welcomed. If Government spending is able to pick up some of the slack from the slowdown in private sector expenditure, this will, in theory, help to stimulate the economy. Also, it is good that the expenditure is being focused on those sectors that are most in need and most likely to spend. The expenditure covers a wide range of support for SMEs to modernise and survive in the tougher climate. This includes the Automation Support Package, financing and tax incentives to support scale-ups and support for internationalisation. In the context of helping transform our economy and helping businesses cope and adapt, I believe these are to be welcomed.”
“It says that the Court will look at the applicant's connection to the person, the reasons for the application, the benefit to the person to whom the application relates and whether the benefits can be achieved in any other way. What this means again is that a person who will get no personal benefit from taking an action under this Bill, may have a more limited right to commence action under this Bill. In this way, the only real recourse for the most egregious cases of abuse may be to make a complaint to the PG and let the PG commence action. The PG has power under section 38(1) itself. But if this is the intended way, meaning that the PG is going to be the main person investigating abuse, then the PG will need more resources to do that. The reality is that many good-natured people who spot abuse will probably not want to commence legal action themselves anyway. And for this reason, I would also support strengthening the capacity of the PG to deal with allegations of abuse under this particular provision of the appointment of deputies. Mr Deputy Speaker, I definitely speak in support of this Bill and my suggestions are really more on the manner on which this Bill will be implemented but I think it is a good development.”
“The second reason– this is very important– is because in the situation which this Bill is meant to deal with, namely, the single, elderly and those living alone, if there is any case of abuse, for example, they may not be able to take action for themselves and this is because there is a bit of restriction on who can bring actions under the Act. If we look at section 38 of the MCA, the only people allowed to bring actions under the Act are, I am paraphrasing, the parents of people who are aged below 21 who have lost mental capacity, by the donor or donee of the LPA, by the deputy, by a person named by the order of Court or by the PG. There is no general provision that allows all and sundry to apply under the Act if they feel that there is abuse. So, for example, the good-natured neighbour, if he were to discover abuse, he may make a report to the PG but he has no right to commence any action in his own name under the Bill. Others do have a right under section 38(2) of the Act to get permission from the Court to start an application. So, there is a two-step process for them. But this two-step process may take some time. It may also take time for the abuse itself to be uncovered. So, for this reason, the professional deputies must be a very tight list because the reality is that recourse to Court, where there is abuse, is not so straightforward and not so easy. The other matter is the manner in which the Court will exercise its discretion when deciding whether or not one of the people that is not designated in section 38(1) would have permission to commence action. The MCA very helpfully sets out the criterion which the Court will consider in section 38(3).”
“What this means is that the professional deputies will be increasingly important because the reality is that, despite all our best intentions, most people will not make this decision beforehand, and this decision is going to end up before the Court. For this reason, I would suggest that the class of people to be listed as professional deputies should be relatively narrow and confined. The professional deputies will arise only where a deputy has not been appointed. So, typically, if a person has some loving family members, they will apply to Court to be deputies. There will be no fees involved, and this should be a relatively straightforward process. However, if there is a dispute between the family, then the disputing family members may also appear before the Court at this time. They will have their dispute before the Court and the Court will make them decide whether to appoint the deputy or if it wishes to appoint a professional deputy. It is in these kinds of situation where the Court's judgment would be extremely important. The Court's judgment will invariably be based on what they believe will be in the best interest of the person. And obviously, the Courts, quite rightly, have a wide discretion in this. There is another reason the professional deputy is very important – why this list should be kept tight. This is because once a person is on the list of professional deputies, first of all, that would also be a signal to people appointing professional donees that this is a potential person that they can go to, if they do not have any family contacts. So, in that sense, the list of professional deputies is a signal to the public that this is a list of approved people that you can appoint as professional donees.”
“People can download forms, they can execute them before lawyers or selected doctors, and this is relatively straightforward. The number of applications – I have heard different numbers in the course of today's debate – I believe it would be at least 8,400 people. What I would suggest is, if we are allowing professional donees, standard forms should also be created for the terms on which professional donees are appointed. Perhaps, guidelines can also be given on the fee arrangements and limits that one would expect for professional donees. I would also suggest these fees begin only after the professional donee starts managing affairs. The more we standardise these processes, the easier it will be for the user. Obviously, the high-income users or people with higher net worth can get professional advice and vary from the standard form. But for most ordinary people, it would be helpful to have standard forms for the appointment of professional donees. Let me now deal with the next issue. This is professional deputies. Professional deputies are somewhat different creatures from the professional donee. Professional deputies are appointed by the Court. So, typically, professional deputies are appointed only in situations where a person has not actually executed an LPA. So, this comes in where a person has not had a chance to make a choice. I did a straw poll of some of my parliamentary colleagues and I am sad to report that, myself included, none of us has executed our LPAs yet. So, my guess is that there will be a very large class of people who have not executed LPAs.”
“I would also suggest the class of persons to be treated as professional donees – it has not been set out in the Bill and I believe this will be set out in subsequent legislation or by guidance given by the Minister – my suggestion for the professional donees would be to define this class as broadly as possible. I believe different considerations apply for professional donees and deputies. Professional donees would, ultimately, be people who are selected while the person still has mental capacity. In this regard, describing this class broadly would allow a person to have more choices as to who he picks as a professional donee. It gives individuals a chance to appoint professionals where they believe professionals may be more reliable than family members. In practice, being a lawyer, one sees many unhappy situations where family members are involved in personal affairs and this can be for many number of reasons arising from differences of opinion as to how the person should be treated, to even more sensitive matters such as where there is a great deal of expense to be determined, the family members may have other vested interests in preserving the assets or the property, as opposed to taking care of the welfare of the person. So, where there are all these sensitive trade-offs to be made, it is sometimes helpful to have someone who is outside the family to make the decision. For this reason, I think professional donees are necessary. This is also a system that had some practice in the UK, and I think there would be good guidance for us from there, too. My other suggestion for the professional donees is this. The LPA is currently relatively user-friendly.”
“Mr Deputy Speaker, I speak in support of the Bill. This Bill is part of our evolution in dealing with the rising challenge of mental illness. The predecessor to the MCA was the Mental Disorders and Treatment Act (MDTA). The MDTA allowed the Court to intervene where it was established that the person had lost his mental capacity. This obviously created problems because, usually, when that happened and the Court action took place, there would be the inevitable dispute on the formation of the Committee. The MCA evolved in the process and allowed the creation of the LPA. The LPA is a provision that empowers people to make decisions while they are still mentally healthy on who should determine their affairs in the event they lose their mental capacity. The roles and responsibilities of people appointed under the LPA, the donees, are very wide-ranging. They include matters relating to the personal welfare of the person, which includes sensitive topics like where the person will stay, what medical treatment he will get, whether surgery is opted for. These are extremely personal matters. They will also deal with the property and affairs of the person and this also includes sensitive matters, such as whether or not they keep the place he is staying at, whether or not the flat should be sold, how the expenses should be managed. It is only right that all these very sensitive matters are dealt with by a donee chosen when the person still has his mental faculties. In this respect, the amendments allowing for professional donees are to be welcomed because what they do is they expand the class of people who can be appointed by a person while he still has his mental capacity.”
“I thank the Minister for the detailed reply. National Day has historically been at the National Stadium for many, many years. The Floating Platform and the Padang were a change for about the last 10 years or so. But now that it is coming back to the National Stadium, what I am really interested in is that the Minister mentioned that 275,000 people would be able to enjoy it. Would this also mean that there will be more tickets available for things like the previews and so on? What is the usual number of people who apply for these tickets because I know there are a lot of disappointed people every year?”
“Mdm Speaker, two clarifications. Firstly, I think there are two ways of addressing this issue. One is to regulate more and look more closely. The second is actually to open up competition. And I would prefer the second approach. One way of doing this will be, as the Minister of State had mentioned, to have more price transparency. In doing that, I would also suggest that any discounts and so on be factored in; otherwise, it is very difficult for customers to track what a 10% or 15% discount on this price is. Secondly, I echo my colleague, Er Dr Lee Bee Wah's suggestion to review the three-quarter tank rule because, sometimes, the best way to raise competition may be to open up the market and allow the more price-sensitive customers to go overseas and top up their petrol tanks.”
“This seems to have knock-on effects and some 8% of Indian students did not have post-Secondary school education. SINDA had put in place a wide range of programmes to address this concern, including a preschool bursary for low-income families. Unfortunately, a perception remains amongst lower- Page: 39 income families that preschool education is expensive and unaffordable. I remember one case at my Meet-the-People Session (MPS) where I had to explain to a family how, with CFAC subsidies, the cost of childcare and preschool education would be only around $20 a month and that it made more sense for the mother to return to work while enrolling the child in childcare where professionals could see that the child gets a proper education. My hope is that with additional Government support, all parents, particularly those from lower-income groups, would realise that preschool education is within their reach and that it is important for their child's future. Mdm Speaker, the investment in our children's future starts from an early age and I strongly encourage all members of our community to give their children the head start they deserve and make full use of all the support available. 4.21 pm”
“Stock markets have been falling all across the world. Commodity prices have been dropping. But what is important is that even in the face of a global economic slowdown, if we can find discrete economic opportunities, there will a chance for us to continue growing. The same way in 2008, when the Lehman Crisis hit, by nuancing our economic policies, we were able to benefit from the flight for safety to bring capital into Singapore. So, likewise I believe, that if we can open a new market into ASEAN at the same time, as the global economies slow, this could provide a promising platform for Singapore businesses to find growth even in difficult economic climate. Let me end off with a few words in Tamil, also talking on economic opportunities, but in a slightly more discrete area. (In Tamil): [Please refer to Vernacular Speech.] In the President's Address, I was heartened to hear the Government's commitment that Singapore will continue to be a place where children can "chase rainbows and fulfil aspirations". This includes investing in education, from pre-school to lifelong learning with SkillsFuture. I would encourage all members of our community to take full advantage of the opportunities on offer. In SINDA's strategic review in 2011, it found that the Indian community had made significant strides in education since SINDA's inception. However, there remained worrying signs. For example, some 17% of Indian parents had not sent their children to preschool. That is about one in six families. These were more likely to be children from low-income families whose parents had less education. The study also found that those who had missed out on pre-school education had more difficulties with core subjects, such as mathematics, in school.”
“It is important to understand the differences between the ASEAN region and Europe in this respect. When the European Union, or the European Community first formed and subsequently became the European Union, it was a group of economies of about equal standing. I say "about" – Page: 38 but all of them would have been what was traditionally known as the First World. However, in the ASEAN region, there is a much greater disparity in incomes and living standards between countries. So, if you have a complete free movement of labour, there is likely to be a very strong demand or a very strong desire for labour to move to the highest income community, which would be Singapore. Given the constraints Singapore is already facing with the inflow of foreign workers and foreign talents, we would be under even more pressure if such a measure were part of the ASEAN integration. On the other hand, many of our ASEAN counterparts would benefit from having skilled labour from Singapore move over there to help build up economies, build up cities, build up industries. So, in this sense, my hope is that ASEAN counterparts would be amenable to more nuanced labour movement rules, ones that allow the appropriate talent to move between countries without opening the flood gates that would cause a brain drain from one way and a flood of talent in the other. All in all, the ASEAN Economic Community (AEC) is a very promising start and it is one that requires a lot of work to get into effect, but the one that ultimately will have a very profound impact on the future of Singapore. I also think it is important to look at the AEC in the context of the larger global economic malaise that some of my colleagues have mentioned earlier. The reality is that the economy looks like it is going to slow.”
“However, more challenges come when we talk about other aspects of integration. When we talk about movement of services or investment and capital, this is much more difficult. There are many prohibitions in individual countries relating to shares that foreign investors can have in domestic companies and land that can be owned by foreign investors. Ultimately, if we have the free movement of capital between countries, I think it would benefit all ASEAN nations. For example, many of our ASEAN counterparts are rich in resources and have large populations with unemployment. On the other hand, we have a lot of capital, we are short of labour, we have a much older population. In that sense, there is ample scope for win-win solutions if capital is allowed to flow to other countries, but this needs to be supported by the rule of law. For example, it would be ideal if the flow of capital is supported by investment treaties and, hopefully, aspirationally, also a dispute resolution mechanism. In the best case scenario, investment disputes should be able to resolve themselves privately without having to involve state actors at all stages. It would be quite unwieldy if every investment dispute needed to have diplomatic relations involved to resolve it. My hope is that at some point, there will be a dispute resolution forum as well for the ASEAN region. While I am a strong supporter of the free movement of goods and the free movement of capital, I would be a little more hesitant when it comes to the free movement of labour. In this respect, I am glad to note that the integration process is also a lot more measured. At the moment, there is no free movement of labour envisioned, but more a mutual recognition of qualifications in certain limited professions.”
“Terrorist attacks in Paris, Ankara and Jakarta have all been linked to ISIS. Recently, 27 workers in Singapore have also been arrested. So, the threats are, in fact, very close to home. This is the danger of terrorism. We are dealing with a non-state actor but they penetrate through boundaries, and they may express themselves in countries that are very far away – so certainly not something that we can rest easily with. Our Armed Forces have joined the coalition against ISIS together with about 39 other countries but, of course, helping in the way it can within the limited resources that it has. I think it is important for Singapore to continue to express its strong stand against terrorism even as we take domestic measures to fight and weed out the threats from within. The second broad area I wish to deal with, and this actually links up a little bit to the first as well, is in renewing our economy. In particular, I would like to look at the role of the ASEAN Economic Community which just came into force on 31 December 2015. The ASEAN Economic Community has a great deal of promise. ASEAN is a region which has 625 million people and a GDP of 2.5 trillion in 2014. It is a huge market. Economic integration is a very important means of preventing other types of hostilities. So, if the economic destinies of the ASEAN countries are more closely integrated, that would hopefully allow ASEAN to provide a united front in other aspects as well. But economic integration is not easy. Europe has been at it for the last 30 years and it is not easy to find the right balance. The easiest of the forms of integration is to get rid of trade barriers and that has already been done effectively. So, it is quite easy for goods to move between ASEAN countries without tariffs.”
“A simple way of doing it is to march across to its neighbour and take over, especially if your army is stronger. The post-World War II era has made this a lot more difficult because of the strong network of international law, and a willingness to enforce that by the major powers. But these two need to go hand in hand; international law in itself is not enough. This hunger for resources manifests itself in some disputes that are even closer to home. The South China Sea dispute, for example, has seen a number of countries, all of whom are our friends, fighting over a few pieces of stone. But it is not really the pieces of stone they are fighting over but the large economic zones that come with them. This is an expression of the hunger for resources. As these countries grow, they are hungry for resources and they will grab on to anything they can legitimately grab. It is in this light that we find ourselves in the middle of disputes that we may have no personal stake in but which will, nonetheless, affect us very profoundly. The South China Sea dispute, for example, includes many of our ASEAN neighbours as well as China, all of whom are countries we have very close ties with, and navigating these straits is not going to be easy for us, literally. The third source of threat is, perhaps, the most insidious, and this is terrorism. Terrorism is a little bit different from the first two because it originates from non-state actors. Terrorism, in its current form, I think the most insidious example is the growth of ISIS. The origins of ISIS come from the Middle East, and the battles that they are most concerned with are the Syrian conflict and Page: 37 the Iraqi conflict. However, the expression of terrorism and its manifestation has gone far and wide.”
“The first is rising nationalism; the second is the hunger for resources, and the third, the most insidious, is the threat of terror. I think it is important to have a strong Armed Forces to deal with all three. The first, rising nationalism. This is one of the oldest causes of conflict and it has been there since time immemorial. Whenever countries feel the need to rally themselves together or to divert attention away from domestic issues, they sometimes raise concerns with neighbours, they try to unify the country against someone else. You see this in many areas, not all of them focused on Singapore. The tension between North and South Korea often sees a very strong assertion of identity on both parts of the divide. Differences between China and Taiwan often have a strong nationalistic streak, notwithstanding the strong economic ties between the countries. Closer to home, the most worrying incident we had in recent times was Indonesia's naming of a vessel, the Usman Harun ship. These are all examples of how neighbouring countries or countries around the region may decide to assert a strong nationalist identity. Nationalism, if it does not result in anything else, does not really mean very much. However, nationalism or rising nationalism is often the first step towards the building of hostilities. The strong assertion of a national identity, if it ultimately needs to express itself in territorial expansion, would be one of the major sources of security concerns. This brings me now to the second point, which is closely related, the hunger for resources. The hunger for resources has also been a very old cause of war from time immemorial. When a country is growing, it needs more resources.”
“Mdm Speaker, I speak in support of the Motion. I will be speaking on two themes in the President's Address. The first is keeping Singapore safe and secure, and the second is renewing our economy. On the first theme, keeping Singapore safe and secure, as a National Serviceman, I have seen the growth of Singapore's Armed Forces, even in the short span of my own lifetime. When I first started National Service, I remember the weapon of choice was the M16. On a good day, I will be able to pass my shooting test by hitting one out of every two shots. During reservist, I was introduced to a new weapon. It was called the SAR. I do not believe this is a military secret. With the aid of this new weapon, I was able to get a marksman at my first range – not on any improvement on my account but purely because of better technology. This growth in the Singapore's Armed Forces is probably seen in many different areas. I have just highlighted one simple example. But I think one of the important things about Singapore's Armed Forces is that it is one of the most respected in the region. Whenever I meet counterparts in other countries, they are always grateful for the Singapore Armed Forces, sometimes because they provided them with help in times of need. Our Indonesian counterparts are grateful for the help we rendered in Aceh. And when I visited New Zealand, they still remember the assistance we provided Page: 36 when the Christchurch earthquake hit. So, Singapore's Armed Forces is respected in the region. I think it has been an important part of the lives of many people in this House. The question is what role would the Armed Forces play and what are the upcoming security issues we face in the foreseeable future? I see at least three sources of security concerns.”
“Mdm Speaker, in Tamil. (In Tamil): [Please refer to Vernacular Speech.] Mdm Speaker, I echo my colleagues in congratulating you. It was a historic moment when you were first nominated as Speaker in 2013. You became the first woman to be Speaker in Singapore. Despite being a female and a minority from a humble background, you distinguished yourself in public service, always fighting for the vulnerable and continue to be an inspiration and role model for all in the House. During your decades with the Union, you used your legal skills to fight for workers' rights. As an Member, you spoke up on a variety of issues and focused on vulnerable groups and, as Minister of State, you looked into policies affecting these groups directly. You continue to inspire and remind all Members that it is our duty to look out and speak up for those who need it. You have recently become Member of Parliament for Marsiling-Yew Tee, just next door to Sembawang GRC. Already, stories of your hard work on the ground are spreading amongst residents in the Woodlands and Marsiling areas. Despite being Speaker of the House, you continue to be an active, hard-working and down-to-earth Member of Parliament and remind us, by example, of the importance of serving our residents. As Speaker, you presided over many important and sometimes heated debates in the last Parliament. You were always fair and impartial in giving people opportunities to speak up, while keeping proceedings efficient. Of course, like all Members, I wish you would notice my hand more often, but understand the limitations. I look forward to an exciting legislative term ahead, with you in the Chair. Congratulations once again, Mdm Speaker. 4.09 pm”
“He was also firm in ensuring that no discrimination should be shown to anyone on account of differences of race, language and religion. Indeed, this was especially important for the minority races. Even though the Indians only form 10 percent of the population, the Tamil language remains as one of the official languages. Mr Lee, under his multiracial and multilingual policy, made a provision in the Constitution to include it as one of the official languages. Many world leaders have lauded Mr Lee. They include people, such as Margaret Thatcher, Tony Blair, George HW Bush, Bill Clinton, Helmut Schmidt and Henry Kissinger. They praised him for his vision, tenacity and his contribution to the rapid development of Singapore. It is, indeed, our fortune that Mr Lee has been Singapore's leader. It is the duty of the present generation to take his work forward for the well-being of Singaporeans. The Singapore Tamil Writers Association commemorated Mr Lee's 90th birthday with 90 Tamil poems. I wish to end my speech by quoting few lines from one of the poems, written Page: 29 by the Chairman of the Association, Mr Naa Aandeappan, contained in the book "A Tribute to the Great Man Lee Kuan Yew 90": "You treated everybody equally Made Tamil one of the four official languages Like a mother caring her child Who would do such a thing? You condemned political violence Hated empty slogans We celebrate you as an epic hero and rejoice May you long live forever and ever." I am sure he will live in all our memories forever. [Applause.] 5.18 pm”
“(In Tamil): [Please refer to Vernacular Speech.] I wish to express my deepest condolences to the late Mr Lee Kuan Yew's family. I deliver this speech Page: 28 with great sorrow. When I was born in 1978, Mr Lee was the Prime Minister. In fact, Mr Lee was the Prime Minister from the time of our Independence. His achievements are immeasurable. Many other colonies also gained independence at about the same time that Singapore had gained its Independence. Those countries had larger populations, larger land mass and more natural resources than Singapore. However, unlike many of these countries, under Mr Lee's leadership, Singapore saw outstanding development. Now, we are one of the wealthiest countries in the world. Our per capita income and GDP are larger than most other countries. The main reason for this is Mr Lee's policies. Under Mr Lee's rule, Singapore had phenomenal growth. When he took over, the people were poor, had low levels of education and the unemployment rate was high. Mr Lee's government systematically improved people's lives. His government built large numbers of HDB flats to house the people. These flats provided modern housing, with water and electricity, directly to people who were coming from the kampongs. He made education affordable and almost free to all Singaporeans and provided adequate schools for all. As a result, Singaporeans have joined the ranks of the best educated people in the world. More importantly, he created a dynamic environment for economic development. As a result, our people who were well educated had well-paying jobs. Mr Lee's values were clear. He believed in an honest and clean government. He firmly believed that everyone should be given equal opportunities.”
“At the same time, to provide flexible mechanisms for compensation in what is obviously going to be new types of rights that are being taken away. With that, I support the Bill.”
“Page: 124 At the same time, I think the option there to compensate the individual who loses his rights for his losses is probably good protection for that individual whose land may be acquired. And if the individual is required to relocate or needs to relocate, he also has the option of getting compensation for any renovations that may be required at the new location. So, there are adequate avenues there. The final point, of course, is the interesting provision that actually allows the individual to ask for land to be acquired. I believe the philosophy behind this is simple – the idea of taking away parts of the rights and land from a person is that you do not want to take away too much of a person's rights. So, for example, if you take away some subterranean space and that makes no difference to him, then you can carry on with your works without affecting his rights. On the other hand, if he felt that his rights were going to be significantly impaired, he would have the option to ask the Government to say, "Hey, just take over the whole land, I'd rather you do that than to take over part of my rights." I think this provision is also there to actually protect individuals and give them one more remedy in the event taking away part of their rights turns out to be worse than taking all of their rights. This is a new development in land acquisition. It is moving in somewhat unchartered territories for us, but I think it is in line with the development of the Land Acquisition Act over the years. I think it is an Act that goes along that same philosophy of reducing the need for the Government to take over all of an individual's rights.”
“The tribunals have been given guidelines and these guidelines have actually set out quite specifically in clause 4 of the Act, for example – this is the compensation if you lose rights in your land such as airspace and subterranean space, it takes into account the damages and losses suffered by the owner, the market value of the airspace, and whether the person is required to relocate. So, this sets out the criteria. These can be things that they look at. If you ask me, if a person has not been using his subterranean space, there might be no market value for it at the moment, but he could be compensated for any losses he might suffer of if he had to relocate. Whether there is a market value may depend on future evolution, so I think this Act gives the scope for tribunals to take those factors into account, and it does not mean they have to take it into account right now. My own view is that I do not think there are easy answers to that right now. But that does not mean that should prevent the Act from being passed because this is an Act that will evolve as and when tribunals interpret it. Section 43, likewise, says that the compensation for temporary occupation includes the losses the person would suffer if he has to relocate. It specifically excludes business losses and loss of profits. As a lawyer, I can see the reason for this. In any litigation claim we have, quite often lost profits are the largest component of any claim but also the most nebulous and difficult to quantify. So, I think excluding this is in line with making this Act easy to administer and not imposing too big a burden on the State when going through land acquisition.”
“It is necessary for the building of MRT, for most things that come to our house, they run underground, whether it is water, sewerage, electricity, gas or even data. So, subterranean land is obviously going to be extremely important. Airspace – it requires a bit more imagination but I anticipate that this is in line with future development. More practically, it also allows the Government to acquire strata title, so this means you could potentially get rooftops of building, if necessary, for some Page: 123 future development. This Act gives the Government rights to acquire airspace but it may not be used fully now but in future one never knows what the imagination of builders can come up with. I think it is right to set it down in principle as well. It does not mean it will be used straightaway. Temporary occupation – I have seen this, in fact, quite often especially when developments are coming up if, say, public works is being done to build a MRT station, you might need a temporary site office so that you do not have to acquire the land completely, you can just acquire it temporarily while that is being done. While all these things give the Government the right to take some part of the land without taking all the land, the underlying principle that the people whose rights are affected will be compensated is still there and I think in line with the developments from 2007. The earlier speakers have asked for clarification on various points including how land will be valued. My own take on this is that a lot of this will be left to tribunals to develop.”
“As time went on, the philosophy underlying land acquisition evolved and changed. I think the next big land market legislation was probably in 2007 when legislation was passed to allow landowners to get the market value of land. And this was, I guess, in the face of a different context. Landowners, particularly those who owned private property, are still amongst the wealthier group in Singapore, but it is no longer a situation where you have a few landowners owning large tracts of land. Instead, what you have are many people who might own private property for whom the private property is probably their most important asset. So, in this regard, land acquisition, whilst still necessary, became more generous to the people whose land was being acquired. I think this is in line with the evolving philosophy of the context we are in. In this regard, I think the current changes to land acquisition mark another important step, because it actually gives the Government more flexibility but to acquire less rights from people. It allows the Government to, one, acquire subterranean land; two, acquire airspace; and three, use land temporarily. The big challenge with doing this is that there is no easy mechanism to value these rights. How do you value subterranean space? How do you value airspace? How do you value temporary occupation? In that sense, the philosophy that an owner should be given fair value for the rights he loses I think is still there, but because the difficulties in valuing this, I believe the new Act comprises a set of guidelines of how this should be done, at least in the early stages. As for why this Act is necessary, I think for many of us, the subterranean land, the importance of that is almost self evident.”
“Mr Deputy Speaker, the power of the state to acquire land in Singapore traces its origin to the colonial era when the Indian Act 6 was passed by the Legislative Council in India in 1857, the territorial scope extending to the Straits Settlement. When Singapore gained its Independence, the Land Acquisition Act was introduced in 1966 and this was a very important part of our development years. Back then, the philosophy behind land acquisition was based on this scenario – there were wealthy landowners who owned large tracts of land, the Government was relatively poor, there was a large population which did not live in very good conditions, there was high unemployment, there was lack of running water, electricity, utilities needed to be built, the city needed to be built. Page: 122 So, at that time the philosophy underlying land acquisition was that land acquisition should be facilitated, the Government should not pay too high a price for land and the main priority was that development should be facilitated for the people. And this was very important because what this meant was the compensation offered to owners was usually lower than the market value. The mechanism that was used for many years was either a statutorily fixed date or the market valuation and it was the lower one. Quite often, in the face of a rising market, landowners were offered lower compensation for land. I believe that at that time this was passed, it served social justice because at that time large amounts of land were owned by very few people and those lands were taken for development and the majority people had benefited from that. We have seen infrastructure, public housing and a metropolis grow on the back of that land that was acquired.”
“While all these developments are very exciting, one concern is whether all these will actually create benefits for locally qualified lawyers or whether it will only give jobs to international lawyers. I personally believe that local lawyers can benefit if they work in international firms, but I would be interested to know if the Ministry itself has any view on this and how these developments would actually benefit both Singapore and local lawyers. Family Law Reforms”
“This is especially so if the families have incurred significant costs and debts to send their children abroad in the hope that they would be able to pay it back once qualified. Page: 102 In the past, restrictions had included having a shorter list of recognised universities and requiring higher grades from students to qualify as lawyers. This sent a signal that going abroad to study law did not ensure places to practise and that, in itself, limited numbers. SILE has recently announced restrictions on the list of universities that will be recognised. Are there any plans for further measures to restrict the supply of lawyers? International Dispute Resolution My second cut. I declare my interest as a lawyer at Rajah & Tann and I practise dispute resolution. I find some of the developments to promote Singapore as a hub for international dispute resolution very exciting. The enabling legislation to set up the Singapore International Commercial Court (SICC) was passed last year. This creates another dispute resolution option for international transactions. So, for example, a European and an Asian party may enter into a joint venture agreement for a project in Africa and have disputes under that agreement governed by the SICC, picked by the laws of yet another country if they wished. This gives tremendous flexibility to parties in commercial transactions. Likewise, the Singapore International Mediation Centre was set up last year and this will complement the dispute resolution services that could come out from not only SICC, but the International Arbitration Centre. The Singapore International Mediation Institute was also set up to train potential mediators.”
“Mdm Chair, over the last few years, it has been reported that a record number of students are studying law overseas, particularly in the UK and Australia. I believe the trend might have started around 2011, when data on the top earners' niche professions was published and lawyers featured near the top. In subsequent years, the rising starting salaries of lawyers at top firms were also published, and I believe this might have sent a signal to prospective students that this might be a path to quick riches. But, of course, practising lawyers know better. This large supply came to a head last year when a number of students seeking training contracts soared and many did not get places. Of those who took up places, some did so knowing they would not be retained. I am sure many of those who did not get places will be seriously disappointed. One view is that there is no need to regulate the supply of lawyers and it may just be left to market forces so that, in the years of oversupply, not all would get jobs and salaries may drop, making the profession less attractive to future cohorts and this would naturally limit supply. Personally, I take a different view. I am in favour of more regulation. The process to qualify as a lawyer is relatively long, requiring study, practical training and, finally, traineeship. If a person starts embarking on this journey at the age of 18 to 21 in the expectation that they would one day become lawyers, they may feel they have wasted their time if, at the very end, they are unable to get training contracts and jobs. In this regard, I believe it might be kinder to restrict the numbers earlier so that prospective students do not unnecessarily embark on a journey they cannot complete.”
“Mdm Chair, in Tamil. (In Tamil): [Please refer to Vernacular Speech.] Let me declare my interest as the Chairman of the Indian Programme Advisory Committee (IPAC). IPAC assesses and gives its advice on the content of the Indian programmes. IPAC is especially interested in PSB broadcasts. The PSB Contestable Fund scheme under MDA provides a vital support for the Indian programme producers. IPAC members appreciate the increase in innovative and creative content in Indian PSB programmes. I personally enjoy the sitcom "My Very Dear Kudumbam". The info-ed programme "Kannottam 360" discusses important issues affecting our people. The period drama, "Annamalai" portrays, rather captivatingly, the life of a pioneer generation. I believe there are similar commendable programmes in Chinese and Malay language broadcasts. I am interested to know what improvements have been made to the content of PSB programmes in vernacular languages. Have the opportunities for writers, directors, producers, actors and others who work on these programmes with the support of the PSB Contestable Fund improved? Finally, have these improvements in content been translated into higher viewership in the Chinese, Malay and Tamil programmes? Vernacular Channels”
“Page: 11 In this context, can the Ministry provide an update on the implementation of the Do-Not-Call rules and Personal Data Protection Act and assess whether it has succeeded in meeting its objectives? Are there complaints from individuals that they are still receiving unsolicited marketing messages? Also, how have businesses been able to cope with cost of implementation of measures to comply with the DNC requirements? Is there any help from the Government to help businesses mitigate the cost of complying with the DNC requirements? Review of PDPA Exemptions”
“Mdm Chair, the Personal Data Protection Act was passed in 2012 and the Do Not Call (DNC) Registry which was set up under the Personal Data Protection Commission is entering its second year of operation. The DNC Registry works by generally prohibiting calls, SMS and faxes to all individuals whose numbers are listed in the directory. The exceptions to this include where an organisation has an existing relationship with the customer, or where the customer has given his express consent in writing to be contacted. The idea of the DNC Registry was to prevent customers from getting nuisance calls from sellers. Having personally signed up with the Registry, I can confirm that the number of unsolicited calls I get has dropped significantly. I still get the odd calls here and there and when I tell them I am on the DNC Registry and they should not call, most of the callers apologised and hung up. However, at the time it was implemented, businesses were concerned that it would affect them seriously. First, for those that required cold calls to be made for sales purposes, this might cut off their livelihood. Second, even for those that were calling existing customers, they would need to incur costs in checking with the DNC Registry and, after checking, check if the customer in question had given them express consent to be called or if he can be called as one with whom they already have an existing relationship. I noted the creative methods some companies have used to get around this. One mall operator organised a generous lucky draw, but participation required participants to sign a written consent to being contacted for marketing or promotional purposes. If such practices become widespread, this may defeat the purpose of the DNC Registry.”
“Mr Chairman, the 3G Quality of Service framework put in place by IDA was intended to ensure good mobile service quality for end users. The 3G Quality of Service framework sets out standards for 3G service, including the following: (a) that the nation-wide Outdoor Service Coverage should be greater than 99%; (b) the Call Success Rate should be greater than 99%; (c) the Drop Call rate should be less than 1%. I understand that in the past, IDA has fined operators for non-compliance with these guidelines, particularly, the nation-wide outdoor service requirements. I would be interested to know whether all operators have compiled with these requirements since. Now that the 4G networks are being rolled out on a large scale, I would also be interested to know if IDA is rolling out a survey on operators' 4G networks and if so, what the outcome of the survey is. I would also be interested to know if any service standards will be set for the 4G network. In relation to indoor service requirements, I understand the IDA requires the in-building coverage to be at least 85%. I am interested to know how well operators have complied with the indoor service requirements and how IDA tracks compliance with this? Anecdotally, I understand that in some cases, people may not be able to get signals in their own homes. Other common areas where people have difficulty a signal include underground carparks, which I understand are not included in the 85% coverage for the in-building requirement. Are there any plans to raise the requirements for indoor coverage as well? More generally, what steps is the Ministry taking to improve the resilience and reliability of telecommunications infrastructure to ensure that the mobile operators continue to provide consumers with quality mobile services?”
“As our Singapore companies do well by moving into foreign markets, I will be interested to know whether there are any initiatives MTI has to assist Singaporeans themselves to take advantage of the new jobs that will be created and whether there are any further things that the Government can do to ensure that the benefits of internationalisation go towards Singaporeans as well, who are looking for jobs in these new ventures abroad.”
“MTI has been supporting internationalisation for a very long time. As early as 2002, there is an Entrepreneurship and Internationalisation Sub-Committee under MTI to provide a report on how to strengthen entrepreneurship and help our domestic businesses go beyond the Singapore market. Internationalisation has multiple aspects. First, it can involve Singapore companies expanding the markets' goods and services. This is quite common for consumer goods companies, and you see companies like BreadTalk in other countries, and for professional service providers – law firms, accounting firms – have gone beyond our shores as well. Second, it can involve Singapore companies making investments in projects abroad and developments abroad, either on their own, or more often, in collaboration with local counterparts in other countries. Many of our property development companies have been engaged in this. Page: 162 Third, it can involve Singapore companies moving parts of their business operations abroad. This last aspect may be a little troubling at times because many manufacturing companies, for example, have moved manufacturing operations abroad to lower cost countries. While internationalisation can definitely be helpful to local companies and entrepreneurs, one aspect that I will be interested in is whether or not it actually helps Singaporeans to get jobs when companies internationalise.”
“1 billion over the period from 2011 to 2015 under the RIE2015 plan. The strategies for RIE2015 were to (a) to invest in new knowledge and areas and seed intellectual capital for future Page: 134 innovations; (b) to attract and develop scientific talent; (c) make available competitive funding to spur research; (d) strengthen synergies across R&D performers in public and private sectors; (e) focus on R&D outcomes, particularly commercialisation; and (f) support scientists in taking their ideas from research to commercialisation. I understand that the current RIE portfolio dedicates about $9.6 billion, or about 60% of its funds, to public sector R&D and $2.5 billion to private R&D – that is about 15% of its funds – with much smaller amounts to talent, white space, innovation and enterprise and infrastructure. 6.00 pm While we have a clear idea of how these funds are spent, I would also be interested to know whether MTI can provide an update of whether all this expenditure has helped promote innovation and boost productivity in our companies. Also, given the largest amount of expenditure has been on public R&D, I would be interested to know whether this public research has also helped in R&D outcomes and in particular, in commercialisation of what is developed. Research and Development”
“Mr Chairman, the SkillsFuture initiative aims to promote lifelong learning of practical skills for Singaporeans. The intention of this initiative is to empower our citizens, so that they will always be able to pick up new skills to deal with the evolving circumstances we find ourselves in. The idea is to start building useful skills from school and continue this approach to learning throughout working life. A key part of the success of this programme will require the collaboration of industry. In particular, (a) industry will have to collaborate with schools and especially tertiary institutions, both to ensure that the curriculum teaches the students the necessary skills as well as to provide meaningful internships and paid work experiences, and (b) in order for the SkillsFuture funds set aside to be used meaningfully, they have to be used for courses that will teach people skills that have value in the workplace. This, too, will require collaboration from industry to make sure that meaningful skills are taught and to avoid a proliferation of courses that may not have much practical value. I am, therefore, interested to know how MTI will support the SkillsFuture initiative and how the collaboration with other Ministries and Government agencies will be like in making this work. Research and Innovation The second cut is on research and innovation. The Singapore Government has always been extremely supportive of research and development (R&D) efforts. According to the National Research Foundation, since the first National Technology Plan in 1991, Singapore's total R&D expenditure has increased more than tenfold, from $760 million in 1991 to $6.5 billion in 2010. To further boost R&D, on 18 September 2010, the Government set aside $16.”
“Mdm Chair, according to our latest annual Crime Brief for 2014, it was good to note that rates for some of the more worrying crimes, such as unlicensed moneylending or UML-related harassment, housebreaking and theft, continued to decline. I was particularly happy to note that UML-related cases have continued to decline, with a further 20% drop in overall harassment and a 46% drop in those where property was damaged. The overall number of harassment cases, at 5,763, is still high. I would like to hear about the measures the Ministry has taken that have assisted in driving down this rate and whether any further steps will be taken to continue to deal with this issue. I was also concerned that the overall crime rate had increased by 7.4% largely driven by cheating involving e-commerce. I understand from reading the brief that this is correlated to the rise in people using Internet shopping facilities. I believe this figure was 17% in 2012 but it has since risen to 52%. Examples of these crimes, such as phoney PayPal email scams, Internet love scams and cyber extortion. Page: 11 Are any special measures needed to fight the new types of crime that are developing on the back of the popularity of the Internet? If so, what steps may be taken to detect and solve such crimes? Are there any preventative measures that may be taken to stem the growth in such crime, even as more Singaporeans embrace the Internet and e-commerce? Community Policing and Engagement”
“And I think it is important to know that this deficit is also being financed by surpluses we have had from previous Budgets within this term of Parliament. So, we are still not passing on a heavier burden to whoever may be here in the next term of Parliament. With all this, I speak in support of the Budget. I think it is an important step in getting Singaporeans ready for the phase of capitalism that we are living in at the moment. I am not sure whether it is right or left, but I think it is certainly setting us in the right direction. 1.53 pm”
“So, this is yet another scheme that will give more flexibility to people to increase their income at retirement. My suspicion is that this scheme will be most useful to those who are not eligible for the Lease Buyback Scheme. So, for those living in 5-room flats and perhaps for those living in private properties, who may want to stay where they are staying but will not qualify for the Lease Buyback Scheme, this will at least give them the option of getting more income out of the CPF LIFE option. An alternative to get the same result would be to extend the Lease Buyback Scheme to, say, even 5-room flats. This will allow more people to get income from their capitalised assets. But all in all, I think that this Budget makes important steps in providing for the retirement adequacy of people and in giving them options to get more income when they retire. Let me finally deal with one issue that I think is of concern to many of my friends in this House, that is, the fact that this Budget is running a fairly significant deficit of about $6.7 billion. The reason that I would still support this Budget, notwithstanding this, is because a lot of this deficit arises from investments, including about $3 billion for Changi Airport's development. So, these are unlikely to be recurring expenditures. In terms of looking at whether this deficit spending has any long-term implications, I will cautiously say that I do not expect it to be so. I am hoping that our future operational expenditures can be met by the operating income we will have, as well as the expanded Page: 47 income from the Net Investment Income that we will be getting from Temasek. In that respect, I would support the Budget, notwithstanding the deficit.”
“This includes schemes, such as allowing people to downsize by buying studio apartments. So, when they buy studio apartments, a large amount of capital will be released which they can use in any way they like, including, perhaps, to buy a more adequate CPF LIFE scheme. The second element that is quite important to retirement Page: 46 adequacy is the Lease Buyback Scheme. With this being extended to 4-room flats, this, again, allows people to capitalise on an asset and get more income. Ultimately, what all of these schemes try to do is to give people adequate income in retirement. For most Singaporeans, the focus should be on how much income they think they will need in retirement and then deciding whether or not they can set aside enough at that time. So, CPF LIFE gives them some flexibility with that; the Lease Buyback Scheme gives them some; studio apartment scheme gives them more. These are all different schemes they can rely on. Of course, if children support them, that will be yet another source of income. But in dealing with retirement adequacy, it is still possible for us to probably do even more to give people even more flexibility. One suggestion I have is to allow the CPF LIFE scheme to be charged against a person's HDB flat or property. So, what that means is that if a person does not have, say, $200,000 in the CPF account but wishes to get a higher income at the age of 65, he can agree to take a charge against his property for whatever sum his CPF might be short of, to top up with that amount. This will allow him to get a steady income after the age of 65. Part of that agreement, of course, will be that after, say, the individual and his spouse have passed on and when the flat is sold, the amount that has been borrowed against this flat will be paid back.”
“So, I think what we could do is probably have our employment laws moved to be slightly more protective to give employees a bit more protection but perhaps not to the extreme of some of our Western counterparts. This will still give Singapore a competitive advantage in the employment market, but, at the same time, allow both employers and employees to see the employment relationship as a slightly longer term one in which they might be more incentivised to invest. Let me deal with one more aspect of the Budget that I think is quite important in the context of our evolving backdrop. Company lifespans are shortening but, quite happily, our people's lifespans are not. In fact, Singaporeans have one of the longest life expectancies in the world and very close to the Japanese. Most Singaporeans will be living beyond the age of 80. And what that means is that retirement adequacy becomes very important. In this Budget, there are two important initiatives that deal with retirement adequacy. The first is that the CPF LIFE scheme is now being replaced by a more flexible scheme so that people will have three options. They can decide what amount they wish to put aside at the age of 55. Based on that, that amount will determine the income they will get once they cross the age of 65. So, in that sense, it gives people more control over their retirement. The second important element that has been introduced is the Silver Support Scheme. This essentially gives retirees additional top-ups for those who might not have enough income in retirement and this covers the bottom 20%-30%. This is actually quite generous. I think an understanding of this has to be coupled with other schemes that are already in place in dealing with retirement.”
“It is important that people use the SkillsFuture Credit for programmes that will equip them for their next job, as opposed to just spending it because there is some money there that needs to be spent. The final pillar of SkillsFuture which will be quite important is industry collaboration. Having said that businesses may not last very long and that businesses' lifespan may be much shorter, what this means is that industry collaboration probably has to be a dynamic process. We will have to engage new employers on an ongoing basis, get their buy-in to train employees and invest in employees. Page: 45 In this regard, one interesting aspect we might want to look at is a review of our employment laws. In many other countries, employment laws are much more rigid. They provide more protection to employees but that also means that it makes employers more cautious in employing. For example, in countries where termination or redundancy payments are statutorily pegged at a fairly high level, that means there is a high opportunity cost to fire an employee. That also means companies will be more careful about employing people. But what this also means is that when a company does employ people, the employment relationship itself is likely to last longer. And because of that, companies may be more incentivised to invest in employees and invest in training employees. So, this is a careful balancing act. I think one of the reasons Singapore has a very low unemployment rate is because employers are very happy to employ as they know that the employment relationship can be ended by either party quite easily. However, if they are to realise that employment is going to be a longer term investment, they will be slower to employ.”