Vivian Balakrishnan
Singapore
“The Ministry of Foreign Affairs does not issue advisories on wait times at overseas airports. Travellers may wish to monitor airline and airport websites, as well as news reports for real-time information on wait times and potential disruptions at specific airports.”
“When the conflict in the Middle East deteriorated and commercial flights were halted in March 2026, the Singapore Government mounted four repatriation flights from Muscat, Riyadh and Jeddah to bring stranded Singaporeans home.”
“The Government has stepped up public engagement to explain our foreign policy fundamentals and responses to key international developments to Singaporeans and to hear their views. We do this through dialogue sessions across segments of society, including students, youths, businesses and community leaders.”
“And the larger point during the Committee of Supply was that precisely, because the world is in such a difficult, prickly, volatile and dangerous state, actually, if we keep our wits about ourselves, we maintain unity and we continue to have this clear eye-realistic, but principled, approach, there are many opportunities for Singapore.”
“Well, in short, I completely agree with you. And that is why we have indeed been hosting these events and in your own capacity as a national athlete and also as an official now, you have seen how it works in practice.”
“Since 2022, about half of the Ministry of Foreign Affairs (MFA) employees are women. The proportion of women in senior appointments has remained stable at about a quarter. We recognise that overseas postings are disruptive for officers with families, especially female officers who bear greater caregiving responsibilities.”
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“ROK is another important partner. We commemorated the 40th anniversary of diplomatic relations last year. Mr Liang Eng Hwa will be pleased to know that besides strong economic ties, we also cooperate on a variety of regional and international issues. Singapore companies have growing investment interests in ROK, especially in sectors like real estate, transport and logistics, and infocommunications technology. Many ROK companies in Singapore are engaged in international trading, transport and logistics, electronics, construction and engineering. As our business ties and people-to-people exchanges continue to grow, we hope to enhance relations through a meaningful review of the Korea-Singapore FTA and the bilateral Air Services Agreement. Ms Low Yen Ling asked about our relations with the European countries. Our ties with Europe are anchored by strong trade and investment links and regular high-level exchanges. The EU is Singapore's third largest trading partner and the largest investor in Singapore, with around 11,000 companies registered here. This will not change in the short term. Even as Europe grapples with its challenges, we look forward to strengthening our economic relations through the EU-Singapore FTA. We are also keen on an EU-ASEAN Comprehensive Air Transport Agreement, which will enhance air connectivity between the two regions. Beyond economic cooperation, Singapore continues to tap the experience of several European countries. Germany, for example, offers many useful lessons. As part of the SkillsFuture initiative, we are keen to learn from Germany's best practices in vocational training. This February, I led a working visit to Berlin to learn from their experience in supporting parenthood. Our engagement with Germany will deepen through such channels.”
“We have much to learn from China on culture, language and so on, but we must maintain a sense of dignity and pride in our cultural destiny. Our value lies in our independent viewpoint and unbiased voice. It creates valuable opportunities for us to share perspectives with our Chinese friends that they are unlikely to find elsewhere. Even our businesses can leverage our ability to build bridges across cultures. We should continue to nurture this unique combination, strengthening links within our own local communities at the same time as we deepen engagement with China. (In English): Mdm Chair, let me move on to our relationships with Japan and ROK. Mr Liang Eng Hwa has asked about Singapore's relations with both. Let me add to what Minister Vivian had said earlier. Singapore and Japan enjoy frequent high-level political exchanges. Over the last three years, Prime Minister Lee and Japan's Prime Minister Shinzo Abe have met several times annually. They had another good meeting in Washington during the Nuclear Security Summit (NSS) last week. The Japanese Cabinet has decided to confer a posthumous award, the Grand Cordon of the Order of the Paulownia Flowers, on Mr Lee Kuan Yew. This would be the first time the award has been given posthumously to a foreign individual. 12.30 pm Mr Lee had received the Grand Cordon of the Order of the Rising Sun, one of Japan's most prestigious decorations, when he visited Japan in 1967. The Grand Cordon of the Order of the Paulownia Flowers is one level up from the Order of the Rising Sun. Since the award was elevated to a class of its own in 2003, only four foreign personalities have received it. We are deeply honoured and appreciate the Japanese government's decision, which recognises Mr Lee's contributions to Singapore-Japan relations.”
“China's programme of active engagement of its 华侨 may extend to cover local Chinese communities 华裔, including those in Singapore. But we must always remember that there are many Chinese in the world, including 华侨. A few undistinguished millions in a small island in Southeast Asia cannot be more than a curiosity. Ultimately, to be of special value, Singaporeans, as a community, must be outstanding, confident and cohesive. Having joined hands with other races and successfully built up modern Singapore over the last 50 years, the Chinese community in Singapore can engage our Chinese friends with a sense of confidence, as well as demonstrate our uniqueness and independence as a nation. More so than ethnic Chinese elsewhere, the experiences and outlook of Chinese Singaporeans are rooted in a multicultural society where each community enjoys our common space and interacts respectfully with one another. Compared to China, we have a unique cultural make-up that is diverse and yet inclusive and which we are tremendously proud of. When travelling abroad, Singaporeans have no difficulty identifying one another from among a sea of ethnic look-alikes – our Singlish, infused with all sorts of local references, is an endearing and immediate giveaway. Chinese Singaporeans living overseas whom I have encountered as part of my National Population and Talent Division (NPTD) role, want to be identified and introduced as Singaporeans first and foremost, even after being away from Singapore for years. This unique combination, where cultural similarity and difference with Chinese nationals co-exist, makes the Chinese Singaporean community interesting and relevant.”
“We are optimistic that, like SIP and SSTEC, CCI will play a pathfinder role in China's development. Mdm Chair, in Mandarin, please. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Chair, another unique feature of our substantive relationship is the establishment of bilateral mechanisms to institutionalise high-level interactions between our leaders and to exchange ideas on issues of common interests. We have three such bilateral platforms, co-chaired at the Deputy Prime Minister (DPM)-level, namely the Joint Council for Bilateral Cooperation (JCBC), Singapore-China Forum on Leadership, and Singapore-China Social Governance Forum. While JCBC has been held since 2004 and the Forum on Leadership since 2009, the Social Governance Forum is a relatively new platform launched in 2012. It is rather unusual for two countries, particularly one that is a 5,000-year-old civilisation of 1.4 billion people and the other a small city-state that gained Independence just 50 years ago, to find value in sharing experiences on social governance challenges. Much of what we do in Singapore can only be practised in China with adaptation. But the successful implementation of our social management policies in a multiracial society with a Chinese majority provide references that our Chinese friends find useful. If we cannot make our system work in Singapore, they will be much less interested in us. When Chinese Singaporeans interact with their friends in China, there is, undoubtedly, a sense of cultural affinity. We speak the same language and often celebrate common festivals, so much so that we could be mistaken as Chinese nationals outside China, also known as 华侨. However, we are, in fact, 华裔 or ethnic Chinese outside China with independent citizenship, loyalty and identity.”
“Singapore also supports China's One Belt One Road initiative and hopes to see businesses collaborate to capture new opportunities in the region. For example, last week, I witnessed the signing of an investment agreement between PSA Singapore and COSCO Pacific that will deepen their cooperation and improve their strategic positioning. As many of our companies know, there remains untapped developmental potential in the inland provinces. It is, therefore, important that we build good relations not only with the central government, but also with provincial authorities. This also explains why MFA has four Consulates General in China, besides our Embassy in Beijing, which is more than in any other country. It takes time and effort, through regular exchanges and visits, to establish strong ties with the provinces and municipalities. For example, I will make a working visit to the provincial capitals of Yunnan (云南省) and Guizhou (贵州省) shortly after the Committee of Supply debate. To ensure continuity in our relationship-building, we recently updated our representation in the provincial business councils to involve younger political officeholders in Singapore. The scope of our cooperation with China continues to deepen and broaden. Following the success of the Suzhou Industrial Park (SIP) and the Sino-Singapore Tianjin Eco-City (SSTEC) projects, the Chinese approached Singapore to launch a third Government-to-Government project in Western China. This third G-to-G project, known as the Chongqing Connectivity Initiative (CCI), is based on the theme of "modern connectivity and modern services". It was launched by Prime Minister Lee and President Xi Jinping during President Xi's State Visit to Singapore last year.”
“We have maintained strong ties with these countries through frequent exchanges of high-level visits. For example, last year alone, the Prime Ministers of Cambodia, Laos and Vietnam visited Singapore for our SG50 celebrations. We are ready to build on the good momentum of bilateral relations to foster closer cooperation with the new leaders and their governments. This year, we will also officially launch the Singapore-Myanmar Vocational Training Institute as we celebrate the 50th anniversary of diplomatic relations with Myanmar. Our economic ties with Vietnam led to the establishment of the first Vietnam-Singapore Industrial Park (VSIP) in 1996. The seventh VSIP was launched last year. We expect more opportunities for economic collaboration under our Connectivity Framework Agreement with Vietnam. Let me assure Members that with every neighbour, we will continue to seek opportunities for meaningful collaboration and enhance economic integration within ASEAN. Moving on, I will expand on Minister Vivian's comments on our cooperation with China and address Ms Sun Xueling's question on how we can further strengthen bilateral relations. We enjoy strong and active people-to-people links with China. About two million Chinese tourists visit Singapore each year and close to a million Singaporeans visited China in 2015. Our economic ties remain strong. China is Singapore's largest trading partner and we have been China's top foreign investor since 2013, a point which Minister Vivian highlighted. At whatever speed its economy grows and however far-reaching its reforms extend, China will remain a key economic driver in the region. Our businessmen recognise this and have been in China for years.”
“I hope that also means we will continue to attract some of the best young Singaporeans because this is a mission that can only be fulfilled by Singapore Citizens. MFA was also ranked as one of the top 10 employers among the Humanities Students in the same survey. So, let me conclude by reminding all of us that the fundamental constraints we face as a small island city-state with a multiracial and multi-religious population remain unchanged. What have changed are the global and regional architecture and emerging powers. Whatever happens, we have to remember that we are price takers, we are not price makers. So, we have to confront the headwinds from the global economic slowdown, the uncertain geopolitical environment and the security threats. MFA and its officers will continue to help Singapore navigate through these difficult waters and pursue opportunities, so that Singapore would always remain safe, viable and relevant in an uncertain world. [Applause.] The Second Minister for Foreign Affairs (Mrs Josephine Teo): Thank you, Mdm Chair. Earlier, when responding to Mr Ong Teng Koon and Assoc Prof Muhammad Faishal, Minister Vivian Balakrishnan spoke about the importance of ASEAN and maintaining good relations with our immediate neighbours. To address Assoc Prof Faishal's question on our relations with the other Southeast Asian countries, I will provide an update of our engagement with Cambodia, Laos, Myanmar, Vietnam and the Philippines. Some of these countries will see a change of government this year. There has been a peaceful transfer of power following Myanmar's elections in 2015 which bodes well for its development. Laos and Vietnam concluded their party congresses in January, while the Philippines' Presidential election is due next month.”
“15 pm Let me thank Mr Sitoh Yih Pin for his compliments to MFA officers. The job in MFA is highly demanding. It requires our officers to work under challenging conditions and, quite frankly, at great cost to their personal lives and their family lives. In all my 15 years in politics through many incarnations, through many Ministries, I have always found MFA officers to be dedicated, passionate and professional. What keeps them going is not their Minister but their sacred mission to advance the interests of Singapore. They understand Singapore's vulnerabilities. They also understand what we need to do to make ourselves relevant. Foreign diplomats have always told me that they have been so impressed, not just by the superstars but by the fact that every single MFA officer in the delegation is professional, competent, carries weight, makes sense, is constructive, helpful. So, our officers are our key assets and I thank the Member for highlighting that yesterday. In fact, I want to thank Members of the House for your support because, after all, in the Budget session, you are providing resources, resources for my Ministry to recruit, nurture and deploy some of our best Singaporeans on this sacred mission. On this note, I was gratified that MFA was recently voted by the students at our four local universities, that is, the National University of Singapore, Nanyang Technological University, Singapore Management University and Singapore Institute of Management as the "Best Employer in Singapore for Training and Development in 2016" in Universum's "100 Most Attractive Employers in Singapore" survey. I think this is a vote of confidence.”
“So, we want to do more with the Indonesian government and other interested stakeholders to promote sustainable agricultural practices, to strengthen our response to forest fires and to hold errant companies responsible for the fires that they start or allow to occur on their concession areas. Counter-terrorism is another common challenge, and we will continue to work very closely with Indonesia as well as our other neighbours to fight this common threat. We are always looking to do more with our other neighbours and deepen cooperation. But issues will arise from time to time. Our bilateral relations with Malaysia and Indonesia are important to us. We have a long-term stake in each other's success. So, it is important that even when issues arise, we maintain a long-term perspective and a certain equanimity in the way we relate to each other. Another key partner is Brunei. Singapore and Brunei share a very special relationship. It dates back to the personal friendship between the late Mr Lee Kuan Yew and the late Seri Begawan. As fellow small countries and as founding ASEAN member states, we still cooperate closely. The close defence relations, so many of us have trained in the jungles of Brunei, the long-standing Currency Interchangeability Agreement. All these are icons of our strong bilateral ties. Singapore also has excellent ties with Thailand. Our economic and people-to-people links are robust. I paid a recent visit to Thailand two weeks ago and was honoured to be granted a royal audience with Princess Maha Chakri Sirindhorn, who hosted our delegation to lunch in her own palace; met the Prime Minister and other key members of the Cabinet. Senior Minister of State Josephine Teo will speak more about engagements with other Southeast Asian countries after this. 12.”
“The Causeway actually has sufficient capacity, replacing the Causeway is not the solution. Rather, the key is to continually enhance checkpoint efficiency and operations through measures, including the use of technology and improving the infrastructure at the checkpoints. For example, ICA will be equipping all motorcycle clearance counters at our land checkpoints with automated facilities by the end of this year. Our efforts to expedite immigration and custom clearance must be balanced against security considerations. We have a responsibility to Singaporeans to ensure that we maintain a stringent level of checks. The Malaysian government has also had to step up its own security measures. Singapore and Indonesia have a long and close relationship at multiple levels. My first overseas visit this year was to Indonesia, and we look forward to Indonesia hosting the next Leaders' Retreat in the second half of this year. Economic ties remain strong. Singapore is Indonesia's largest foreign investor. Is that not amazing? We are the largest investor in China, we are the largest investor in Indonesia. We have some US$5.9 billion invested in Indonesia last year, and we are Indonesia's third largest trading partner, as well as each other's largest source of tourists. Our companies remain keen on Indonesia, and besides Jakarta, Batam, Bintan and the Karimun Special Economic Zone, our companies are also looking at other regions in Central Java. For instance, SembCorp is developing a 2,700 hectare industrial park in Kendal, Semarang. We also remain committed to working with Indonesia to address the transboundary haze, as I have mentioned earlier. Year after year, the main victims of this haze are not Singaporeans; it is actually the Indonesians themselves, who live at ground zero.”
“Whilst we are not a member of G20, we contributed actively when invited to participate, and, most recently, Singapore has been invited by China to attend the Hangzhou Summit this September. This will be our sixth time participating in the G20 Summit. Closer to home, relations with our neighbours are vital for our security and national interests. These ties have to be maintained and nurtured at all levels. Assoc Prof Dr Muhammad Faishal Ibrahim asked about our relations with Malaysia and Indonesia. During my recent visit just a few days ago to Malaysia, I caught up with many Malaysian leaders, including many old friends. My most recent trip was to Sabah. I thanked the Mount Kinabalu guides and the Malaysian authorities who provided invaluable assistance to Singaporeans who were affected by the June 2015 earthquake. The Malaysians' swift, instinctive and spontaneous response at our point of acute need reflects the close ties between our two peoples. It behoves us, as politicians, to build on the already strong ties of kinship, friendship and relationships. The next major bilateral event will be the Leaders' Retreat in Malaysia. The Retreat will allow us to take stock of our various bilateral projects, and our economic ties remain robust. We are each other's second largest trading partners – I think that is after China – and Singapore has consistently been one of the top investors in Malaysia. Connectivity is one key aspect that both governments are working to strengthen. Progress is being made on the Kuala Lumpur-Singapore High Speed Rail and the Johor Bahru-Singapore Rapid Transit System Link. Both governments are working to improve congestion at the Causeway and at our borders. We have conducted a joint study with the Malaysians. We have also done our own projections.”
“In fact, right now, or over the next couple of weeks, we are in the final stages of negotiations and, if we are successful, we will see unprecedented levels of collaboration and engagement with Australia in diverse areas, including economic integration, investments in new growth areas like food and agribusiness, aquaculture, tourism, enhanced defence arrangements, further collaboration and engagement on foreign affairs, further joint-work and innovation, research and development (R&D), arts and culture, and people-to-people exchanges. The fact is, actually, Singapore and Australia are quite complementary. We are a port, they are a continent. They have lots of land, we have no land. They have a population the size of Malaysia on a continent. We are a densely packed city in the midst of Southeast Asia. So, we are actually not in competition, but have a unique complementary role with each other and, at a strategic level, our perspectives are very well-aligned. So, watch this space in the next few weeks. We will also continue to seek economic links and opportunities for our companies in emerging markets in Africa, Latin America, and the Middle East. Senior Minister of State Josephine Teo and Senior Minister of State Mohamad Maliki will elaborate on our engagement with these two important emerging markets. Our international engagement with multilateral organisations is also critical. As a small state, we have to engage with everyone. We will continue to play a constructive role in the multilateral fora, including the United Nations, the World Trade Organization and the Asia Pacific Economic Cooperation (APEC). We have to maintain our international relevance. We have to support the rule of law. We have to strengthen the rules-based multilateral system.”
“The signing of the India-Singapore Strategic Partnership in November 2015 laid the foundation for us to step up cooperation in diverse areas, including finance, civil aviation, urban solutions and skills development. We hope to create more opportunities for our companies through new initiatives, which include the master-planning of Andhra Pradesh's new capital city and providing support for the Centre of Excellence for Tourism Training in Rajasthan. India looks set to play an increasingly larger role in the economy and politics of our region. Under Prime Minister Narendra Modi's leadership, India has stepped up efforts to develop infrastructure and to attract foreign investments. A stronger India emerging from these successful reforms will inevitably play a more active role in our region. Prime Minister Modi's reaffirmation of India's "Act East Policy" allows us to further our economic cooperation with India, both on a bilateral basis as well as regionally. India is already quite involved in the ASEAN region as an ASEAN Dialogue Partner and as a member of the East Asia Summit (EAS), the ADMM-Plus and the ARF. It is also actively participating in the Regional Comprehensive Economic Partnership (RCEP), which is the other big trading bloc which we are working on. We welcome the commitment by all RCEP countries to intensify efforts to conclude the negotiations by this year. Ambitious, but worth the try. Mr Saktiandi Supaat has asked about our ties with Australia and the Comprehensive Strategic Partnership (CSP) with Australia.”
“Both sides have agreed to achieve a comprehensive and substantive upgrade of the China-Singapore FTA by the end of this year. This upgrade is timely and it reflects the strength and depth of our economic cooperation. Not only is China our largest trading partner, we have also been China's top foreign investor since 2013. This is a fact that I could not believe and had to re-read several times, that little Singapore has been China's top foreign investor since 2013. My colleague, Senior Minister of State Josephine Teo, will speak more about our unique relationship with China and its domestic implications after this. Relations with our other key partners are also growing. Mr Liang Eng Hwa asked for an update on our relations with Japan. We continue to find ways to deepen our engagement with Japan, the third largest economy in the world. To commemorate the 50th Anniversary of Singapore-Japan relations in 2016, a slate of high-level exchange of visits has been arranged. Japan remains Singapore's second largest foreign investor in 2014. We are also working with Japan to review the Japan-Singapore Economic Partnership Agreement (JSEPA) and the bilateral Air Services Agreement (ASA); and this, if we succeed, will raise our bilateral relations to new heights. We also enjoy warm people-to-people ties with Japan, best illustrated through the generous contributions by Singaporeans to the rescue and recovery effort coordinated by the Singapore Red Cross following the 2011 earthquake and tsunami in Japan. Dr Intan Azura and Mr Vikram Nair asked about Singapore-India relations.”
“Its strength in its economy and the society, especially its cutting-edge research and innovation, as we ourselves move to focus on innovation and in our journey towards creating a sustainable Smart Nation. We welcome the US' location of one of its three centres for the US-ASEAN Connect initiative here. As I mentioned earlier, the US has enduring strategic and economic interests in Asia. The historic ASEAN-US Leaders' Summit in Sunnylands in February this year reflects the US' continued interest in this region. We will continue to support the US engagement of Asia, including encouraging the US to quickly ratify TPP. The significance of TPP goes far beyond trade. It is an important signal – an icon of the US' commitment to engage the Asia-Pacific, and we urge all Parties that have signed on this to ratify it quickly. Ms Sun Xueling has asked about Singapore-China relations. China, indeed, is one of our key international partners. We commemorated 25 years of diplomatic relations with China last year. This culminated in the exchange of State Visits by President Tony Tan and by Chinese President Xi Jinping. We established an "All-Round Cooperative Partnership Progressing with the Times" – it sounds better in Mandarin – to demonstrate that our long-standing, innovative and multifaceted cooperation has kept up with the times and has evolved. Our bilateral cooperation has moved beyond the traditional areas of trade and commerce to include financial cooperation, social governance, sustainable development and food safety. Human resource development remains a key pillar of our bilateral cooperation. During my recent visit to Beijing, I noted the good progress made on the Chongqing Connectivity Initiative (CCI).”
“We have also had productive and frank discussions on COC. We have agreed to a paper on the "List of Elements of the Possible Outline of a COC", and to a discussion paper on the "List of Crucial and Complex Issues" in the drafting of COC. I apologise for all this jargon, but this is typical diplomatic foreplay – agreement not yet achieved. On the ASEAN Defence Ministers' Meeting (ADMM) hotline, the 10 ASEAN Defence Ministers have witnessed the set-up of a hotline among the defence establishments, but this has not been expanded to include China. As earlier explained, discussions on the establishment of an ASEAN-China hotline are underway on the foreign affairs track. 12.00 noon As for the "no first use of force", a proposal raised by Vietnam sometime earlier, we have expressed support for this proposal. But quite frankly, there has been no progress since then. Nevertheless, China has signed on to the Treaty of Amity and Cooperation which commits all parties to refrain from the threat or the use of force. So, amidst all these delicate negotiations, one central challenge is to maintain ASEAN unity and preserve ASEAN's centrality in the evolving regional architecture. I would like to reassure Mr Alex Yam that Singapore's political and defence ties with the US remain strong and substantive. Singapore will work with the next Administration, regardless of the outcome of the next Presidential Election. It is just worth reminding ourselves that we have no say, but we will have to work with whoever the Americans choose. This is the karma of a small state. The US is our largest source of foreign direct investments. It is our top trading partner in services and our third-largest trading partner in goods. There is much that we can learn from the US.”
“It is thus important to maintain open dialogue on issues of mutual concern to prevent contentious issues from overshadowing the overall ASEAN-China relationship. We believe that ASEAN and China should remain committed to working towards the full and effective implementation of the Declaration on the Conduct of Parties (DOC) in the South China Sea, as well as the early conclusion of the Code of Conduct (COC). Under DOC, we are currently working on a hotline between the ASEAN and China's foreign ministries for maritime emergencies. We also agreed to pursue the extension of the observation of the Code for Unplanned Encounters at Sea (CUES) and we hope that this will be expanded to all parties' naval vessels in the South China Sea. We believe this will help to manage the situation, prevent miscalculation on the ground by young men manning ships and planes at sea and in the air. I have also suggested that the ASEAN-China CUES be extended to cover both navy and coast guard vessels. This will send a positive signal of our joint commitment to preventing loss of assets and lives, and ensuring peace and stability in the South China Sea. In fact, China, the US, and eight ASEAN member states have already agreed to a CUES, under the ambit of the Western Pacific Naval Symposium in 2014, specifically for naval vessels. The US and China have also made considerable progress in agreeing on protocols for unplanned encounters both at sea and in the air, and have implemented them in practice. So, the point is: why not extend this to all ASEAN states? Why not extend it to go beyond naval vessels, but to include coast guard vessels, since we know that some of the coast guard vessels plying the South China Sea tend to be very large ships in their own right?”
“Mr Pritam Singh spoke about ASEAN-China relations and the South China Sea. Economics continues to be the centrepiece of the ASEAN-China relationship. China is already the largest trading partner for all members of ASEAN. ASEAN and China signed a protocol last year to upgrade the ASEAN-China Free Trade Agreement (ACFTA), and this will serve to further deepen ASEAN-China economic cooperation and integration. We will also celebrate the 25th Anniversary of ASEAN-China with a Commemorative Summit this year. China is keen to play a major role in the evolving regional architecture and the global initiatives. In fact, it has proposed several regional economic initiatives, such as the Asian Infrastructure Investment Bank, and this concept of One Belt One Road. Singapore was an early supporter of both these initiatives because we saw a congruence of interests with the region's developmental needs. China's One Belt One Road initiative complements ASEAN's existing efforts to promote connectivity and regional integration and even our own latest bilateral project in China's Western Region, the Chongqing Connectivity Initiative. We welcome China's efforts in ensuring that these initiatives are open, inclusive and consultative by involving all relevant stakeholders and we will work with China to explore possible synergies. But while ASEAN-China relations are substantive and mutually beneficial and positive, the fact remains – as Mr Pritam Singh observed yesterday – that the situation is not so tranquil in the South China Sea. We urge all parties to commit to non-militarisation, to exercise self-restraint and to refrain from the use or the threat of use of force. We all stand to lose if tensions escalate.”
“With 620 million people, a labour force that is the third largest in the world, and an estimated gross domestic product (GDP) of US$2.5 trillion, our AEC has huge potential. Foreign investors will come to Singapore and will use us as a launch pad, as an interface, to invest in regional opportunities. Jobs will be created. Singaporean businesses and investors will benefit from these new opportunities. I need to emphasise that we must not view ASEAN integration with a zero-sum mentality. On the contrary, integration will create win-win opportunities for all ASEAN citizens by making us collectively more competitive vis-a-vis other continental-sized economies. As ASEAN becomes more integrated, we must join hands to tackle some transboundary challenges and to do so in a credible and coordinated fashion. For instance, on transboundary haze pollution, our Leaders have already endorsed the vision of a haze-free ASEAN by 2020. Quite frankly, as a former Minister for the Environment, I do not see why we have to wait for 2020 to see clear blue skies. ASEAN has further established a task force to develop an ASEAN Haze-Free Roadmap and we must continue to deepen cooperation to be able to do joint investigations, collaborate with civil society and put businesses on notice that they must behave responsibly and engage in sustainable development and fair business practices. Another emerging challenge is the need to strengthen cybersecurity and to deal with cyber threats because these threats have no boundaries. ASEAN-led platforms, such as the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS), have enabled Singapore and other ASEAN member states to work with our dialogue partners to build capacity and enhance regional cooperation in cybersecurity.”
“There are, quite frankly, many challenges ahead of us beyond this region. The US Federal Reserve has ended its monetary easing policy. Europe is still struggling to resolve its economic malaise and unemployment. The migrant crisis, the political uncertainties of the United Kingdom's (UK's) possible exit from the European Union (EU), the conflicts in the Middle East – all these conspire to affect international political and economic stability, as well as the domestic stability in many countries, including those outside the immediate theatre of operations. Singapore's openness means, by definition, that we will be exposed to external economic headwinds. But we have no choice. We have to remain plugged into the regional and international trade groupings and arrangements because this opens doors for our people and our businesses. One example is the Trans-Pacific Partnership (TPP). Despite the headwinds we are facing right now, if and when it is ratified, will create even more trade and business opportunities for Singapore companies by providing access to new and existing markets. The EU-Singapore Free Trade Agreement (EUSFTA) is the first free trade agreement (FTA) between an ASEAN country and the EU. If this is ratified, it will also present numerous economic benefits for both sides and will strengthen linkages. We hope the EU will ratify this agreement soon. Mr Ong Teng Koon sought an update on ASEAN's community building and integration efforts. Dr Teo Ho Pin asked about the ASEAN Economic Community (AEC). In a weakening global economy, the establishment of AEC at the end of last year was timely. AEC will integrate and transform ASEAN into a single regional market with a freer flow of goods, services, investments, skilled labour and capital.”
“Ms Joan Pereira also asked about how the increase in global terrorist attacks is affecting Singaporeans abroad. Singaporeans are some of the most widely travelled people in the world and many of us also have to work or travel overseas. This often means exposing us, our people, to some risks, both to natural disasters as well as terrorism. Members of this House will recall that we all grieved when the late Ms Lo Hwei Yen became a victim of the Mumbai terror attack in 2008; a completely innocent victim. Providing consular assistance is a top priority for the Ministry of Foreign Affairs (MFA). Wherever possible, our officers will assist Singaporeans who experience difficulties overseas, including those in conflict zones, as we did just last year in Yemen. We repeatedly urged Singaporeans to find out the facts before they travel and to exercise due care about where and how they will travel. We will continue to improve the range and quality of consular services for all Singaporeans. We will harness technology and also leverage our partnerships with our Association of Southeast Asian Nations (ASEAN) member states, both in the public and private sectors, to augment our existing network of 50 overseas missions and 31 Honorary Consuls-General. The point is that MFA cannot be represented in all the 200 countries of the world. So, in places where we do not have a diplomatic presence, we will have to work behind the scenes with other Government agencies as well as foreign governments to render the appropriate consular assistance. Senior Minister of State Maliki will speak more on consular services later on. Dr Teo Ho Pin also noted the global economic slowdown and asked how Singapore can increase and diversify our global economic partnerships.”
“A nuclear-capable and unpredictable, unstable DPRK could also prompt countries like Japan and ROK to go nuclear and this will further raise tensions in the region. Given China's proximity and its influence over DPRK, China will have to play a key role in any resolution of this problem. Ms Joan Pereira also asked about what we are doing to address non-traditional security threats, including religious radicalisation and extremism. We, in Singapore, are adversely affected by the conflicts in Libya, Syria and Iraq. Groups like ISIS use the Internet and social media to attract followers from all over the world, including us. More than 1,000 men and women from Malaysia, Indonesia, the Philippines and even Singapore are believed to have travelled to the Middle East to fight for ISIS. There is even a battalion for Bahasa-speaking fighters. If you go on the Internet and search YouTube for ISIS and Bahasa, you will see slickly produced videos with beautiful Arabic scenery and music, English subtitles, spoken in Malay, Bahasa. Who else in the world are such productions targeted at? So, some of our people will go there or will intend to go there. They will gain operational and combat experience. They will learn to make bombs. They will establish networks with other militants. And we know what has happened in Europe when these militants return. And we have to worry about what will happen in Southeast Asia as these militants, our own from our region, return to our region. This, therefore, poses a direct and serious threat to Singapore and our multiracial society. It is, therefore, important that we stand up and do our part to support the international coalition against ISIS.”
“They are major strategic players in their own right. Stable relationships amongst the three major countries are, therefore, vital for regional peace, stability and prosperity. The US remains the world's superpower, with major economic and strategic interests in the region, including alliances and treaty obligations with Japan, the Republic of Korea (ROK) and the Philippines, amongst others. Regardless of the outcome of the US Presidential Election, we expect the US to remain engaged in this region. Even though Sino-Japan ties are complicated by long-standing territorial disputes and historical baggage from the Second World War, both sides have an interest in mending their relations. To address complex global and regional challenges, we hope the major powers would work closely together to tackle issues of common interest and avoid direct and destabilising confrontations with one another even as they search for a new modus vivendi. I agree with Mr Vikram Nair's assessment of the regional security challenges. The recent spate of provocative missile launches in the last few months by the Democratic People's Republic of Korea (DPRK) has been unsettling. They are in clear violation of United Nations (UN) Security Council resolutions. The international community has imposed further sanctions on DPRK. 11.45 am Some Singaporeans have asked me, "Why do we bother? Why do we watch these developments in the DPRK with such interest?" The reason we watch developments with such concern is because tensions there will have a negative impact on the peace, stability and economy of the entire region, both in Northeast as well as Southeast Asia.”
“This is of vital importance to us; that is, the integrity of international law and international agreements, such as the UN Convention on the Law of the Sea, or UNCLOS. We must make sure that these agreements, these arrangements are not in any way undermined. As a small state, Singapore cannot accept that "might is right". In the South China Sea, China has conducted extensive reclamation works, constructed runways and port facilities, and it has deployed significant military assets on disputed features in the South China Sea. Whilst, to be fair, some claimant states have also conducted similar activities, but these activities by other claimant states have not been on the same scale or pace as they are conducted by China. And what a major power does inevitably carries a far bigger signature. China, for its own reasons, has become more assertive in the East and Southeast Asian regions. Both the US and China recognise that a stable relationship is crucial for peace and security in East Asia, for regional economic growth and development, prosperity and, indeed, global stability. Despite their differences, there is one point worth noting, which is that never before in history has a rising power, in its engagement with an existing super power, had such an unprecedented level of economic interdependence. They are intertwined. And this means that they cannot embark on an all-out confrontation because the economic impact on both states will be too high. In addition to this, of course, the threat of mutually assured destruction will also ensure both nuclear powers have a powerful incentive to avoid direct confrontation. I also agree with Mr Cedric Foo that the dynamics of the US-China-Japan relationship are complex. These are the top three economies in the world.”
“Mr Vikram Nair and Mr Cedric Foo emphasised yesterday that we live in a region where the economic and strategic interests of major powers intersect. Indeed, as a small country, Singapore benefits when major powers focus on cooperation and constructive engagement in the region. Good relations among the major powers are essential for our continued stability and development. The state of the United States (US)-China relationship is the key variable. This determines whether there will be peace and stability in our region. And their relationship is complex. There will always be elements of both cooperation and competition between the US and China. We hope that they will continue to cooperate effectively on the global and regional stage. We hope that they will be able to effectively work together to resolve challenges involving nuclear security, climate change, piracy and cybersecurity, just to mention a few. But we must acknowledge that there will always be some degree of competition, if not outright rivalry, between the US and China. China's emergence as a rising power has shifted the strategic balance. And China has also become far more assertive in recent years. We see this in our region, for instance, in the South China Sea. Fortunately, for us, Singapore is not a claimant state in the South China Sea. We take no position on the merits of specific territorial claims. But as a small state, we do have a vital interest in and we have to strongly support the maintenance of a rules-based international order and to support the peaceful resolution of disputes, with full respect for legal and diplomatic processes.”
“Mdm Chairman, I thank the Members of the House for sharing their perceptive insights yesterday. I am gratified by our unity of purpose. The friends and protagonists that we have on the international stage will not be so much listening to what I have to say, but rather to the congruence of the discussions and the debates in this House. It is important that we demonstrate unity of purpose. Foreign policy begins at home. Singaporeans must have a realistic, coherent and collective sense of our place in the world. Singapore's fundamental realities have not changed. We are a tiny island in a tough neighbourhood. At the Eighth Rajaratnam Lecture last year, Prime Minister Lee Hsien Loong said, "We have to take the world as it is and not as we wish it to be, but we believe that we can and must defend ourselves and advance our interests". What this means is that we must have no illusions about our significance in the world or our ability to influence global events. Our survival as an independent sovereign city-state and our economic viability cannot be taken for granted. If we ever become disunited or unable to defend ourselves or become an economic failure, we would rapidly become irrelevant. Since our Independence in 1965, we have assiduously forged national unity, achieved economic success and built strong partnerships at the bilateral, regional, and international levels. These partnerships and relationships safeguard Singapore's external political and economic space. But, quite frankly, the world is becoming messier. And Singapore needs to become sensitive to changes in the global environment and global economy and we must always be nimble enough to respond quickl and, hopefully, in advance of these changes.”
“Deputy Speaker, Sir, I beg to report that the Committee of Supply has made further progress on the Estimates of Expenditure for the financial year 2016/2017 and ask leave to sit again tomorrow.”
“Sir, I seek your consent to move that progress be reported now and leave be asked to sit again tomorrow.”
“The New Zealand Ministry of Foreign Affairs and Trade (NZ MFAT) made a request for Singapore to provide a point of contact on the case of a teenager who holds Page: 139 dual citizenship. The Ministry of Foreign Affairs (MFA) has informed NZ MFAT of the point of contact from the Ministry of Defence. MFA has conveyed our citizenship laws and the principles underlying our National Service (NS) to MFAT. Pursuant to the Enlistment Act, all Singapore Citizens and Permanent Residents above the age of 18 are required to serve NS. As the teenager in question is a Singapore Citizen, he has to fulfil his NS obligations. Even if he were to subsequently apply for renunciation of his citizenship after he attains the age of majority, he would still remain liable for any breaches of the Enlistment Act. He is advised to return to Singapore as soon as possible to resolve the matter. Singapore adheres to the fundamental principles of universality and equity for NS. All Singaporeans are expected to fulfil our NS obligations as citizens. It would not be fair to allow citizens to avoid NS just because they reside overseas.”
“I thank Mr de Souza for his sympathies for the people. As I had said before, this is a tragedy unfolding in front of our eyes. We will continue to work with the United Nations High Commissioner for Refugees (UNHCR), as well as legitimate humanitarian groups that I outlined earlier. Unfortunately, that is the limit of what we can do right now until a political solution and peace is achieved within that fractured country, and in the region as a whole. In fact, so long as there is instability there, and so long as Syria remains a hotbed attracting extremists and terrorists, or would-be terrorists, from all over the world, including us, we remain at risk.”
“Syria has become the epicentre for extremism and violence, and this is becoming an international phenomenon. Therefore, any eventual solution is of great interest to the rest of the world but, ultimately, it has to take into account the internal political dynamics within Syria. There also needs to be a clear strategy to deal with the terrorist groups that pose a clear and present global menace, including to us here in Southeast Asia, in Singapore, as the Senior Minister of State Mr Desmond Lee has just elucidated. These difficulties, however, should not detract from the need for the international community to promote a political solution, and to facilitate humanitarian aid to those who need it most. Singaporeans who wish to help to alleviate the suffering of Syrians can contribute by donating to legitimate, humanitarian charity organisations that provide emergency relief and rehabilitation support, such as the Singapore Red Cross and the Rahmatan Lil Alamin Foundation started by the Islamic Religious Council of Singapore, or MUIS. In fact, this foundation supports the Temasek Education Centre in Kilis, Turkey that currently provides education for hundreds of displaced Syrian children.”
“Mdm Speaker, the ongoing Syrian conflict is a tragedy. Over 220,000 Syrians have been killed. Four million have been forced to flee, and many millions more internally displaced. It does not appear that there will be any resolution soon. Our sympathies are with the Syrian people. But as a small densely packed, crowded city-state with limited land, Singapore is not in a position to accept any persons seeking refugee status, regardless of ethnicity or place of origin. This is a long-standing, indeed decades-old, Government policy. In fact, as demonstrated by recent events in Europe, even much bigger countries with substantially more resources at their disposal are now having great difficulty handling the huge influx of refugees into Europe. Mr de Souza has also asked what should be done at an international level to provide assistance for Syrians who remain in Syria. The answer is that there needs to be a political solution to end the conflict definitively. Initiatives such as the recent meetings of the International Syria Support Group are certainly a step in the right direction, given the participation of key stakeholders, including, if I may add, that of the Kingdom of Saudi Arabia and the Islamic Republic of Iran. We were also encouraged by the unanimous adoption of UN Security Council Resolution 2254, which laid out a roadmap for a political settlement in Syria. However, achieving this in reality on the ground is much harder than talks and resolutions. The situation in Syria has become extremely challenging and dangerous. Terrorist groups such as Jabhat Al Nusra and the Islamic State of Iraq and Syria (ISIS) have exploited the chaos in that area in order to establish control over territory and resources.”
“The pilots involve residents providing feedback to ensure that the solutions are human-centric and designed to meet their real-life needs. We want to position Singapore well, as part of the global value chain that will seize opportunities arising from the global digital revolution. Singapore can be the living laboratory for companies to prototype and co-develop proof-of-concepts with our own researchers and innovators. The innovative solutions that work can be piloted, scaled up quickly in Singapore and adapted beyond our shores as global solutions. To this end, various test-beds have already been established in Singapore: for smart home solutions, autonomous driving, outdoor sensor connectivity and others. Such opportunities, to test out new approaches and to give good ideas the runway to take flight, will also contribute to an attractive environment for startups and entrepreneurs. Indeed, entrepreneurship is a key ingredient of the Smart Nation we are building. We will continue to foster an attractive environment for entrepreneurial talent and strengthen our startup ecosystem to create exciting avenues for our young entrepreneurs to thrive and succeed. For various industries, Smart Nation also presents opportunities to leverage on technology to improve processes and productivity and generate new revenue streams. Finally, we want to strengthen cohesion in our communities through technology and online platforms. A key thrust of this is our push to make Government data open, shareable and machine readable as much as possible, without compromising personal data protection or national security. We have taken the first steps to do so, to allow citizens to co-create solutions to address the needs of the community. Page: 65”
“Singapore is striving to be a Smart Nation, where citizens live meaningful and fulfilled lives empowered by technology; where digital connectivity leads to stronger community bonds; and where there will be many opportunities for Singaporeans to pursue their aspirations and contribute to Singapore's future. Various Ministries have mentioned in their respective Addendum how they intend to leverage technology to improve services and capabilities for citizens. The Smart Nation Programme Office (SNPO) under PMO coordinates the overall development of infrastructure, policies, ecosystem and capabilities, to achieve a Smart Nation. The Office will collaborate with citizens, industry and Government agencies, so that, collectively, we leverage technology in a concerted and integrated manner to address our national challenges, improve quality of life and benefit the society and economy. We will focus on areas in which technology can create the greatest positive impact on our daily lives. For example, in public transport and the enhancement of the commuting experience, we have begun to collect more data through the use of bus and taxi sensors and we are sharing these with commuters to empower them to plan their trips. For the longer term, we have begun to experiment with future modes of public transport provision, including autonomous vehicle solutions. Another area is the use of technology and innovation in our homes and housing estates, to help achieve resource savings, create a more liveable environment and support ageing in place. We are working with industry to pilot some of these technologies in the Yuhua housing estate, with a view to more widespread deployment in due course.”
“Singapore must aspire to be an extraordinary nation by strengthening our bilateral, regional and international relations and our international standing. We must be cognisant of our vulnerabilities, yet constantly search for fresh opportunities to enhance our relevance and expand our political, economic and diplomatic space. MFA will work closely with other Government agencies, private sector organisations, as well as our fellow citizens, to safeguard and advance Singapore's interests in an interconnected world. Page: 36”
“Together, the AEC, TPP and RCEP are key pathways to the eventual realisation of a Free Trade Area in the Asia Pacific. Singapore will continue to expand our political relations and economic space in new emerging markets in Africa, Central Asia, Latin America, Middle East, Russia and Turkey. Through active diplomacy by our overseas missions, non-resident Ambassadors and Honorary Consuls-General and in collaboration with our economic agencies, MFA will facilitate access to overseas markets for Singapore companies in sectors where they have comparative strengths, such as infocomm technology (ICT) and urban planning. We will promote Singapore as a major global and regional business hub for foreign companies seeking to expand to the region while, at the same time, promote Singapore's vibrancy through greater cultural and people-to-people linkages and public diplomacy. Page: 35 The engagement of Singaporeans living and working overseas remains a priority for MFA. Through a variety of socio-cultural community events, our aim is to foster a sense of belonging and national identity amongst a growing number of overseas Singaporeans all over the world. We will continue to work closely with the Overseas Singaporean Unit (OSU), as well as Singapore associations, to achieve this goal. With more Singaporeans travelling and residing overseas, MFA will expand our consular outreach by leveraging on modern technology and expanding our diplomatic network, while partnering key stakeholders, including the media as well as public and private sector organisations. With increasing occurrences of natural disasters and other emergencies, MFA will work closely with other Government agencies and foreign governments to render consular assistance and ensure the safety of our Singaporeans abroad.”
“Singapore will reinforce its role as a responsible member of the international community by extending technical assistance to, and sharing our developmental experience with, other countries through the Singapore Cooperation Programme (SCP). Since its inception in 1992, more than 100,000 foreign officials have been trained in a range of SCP courses with various partner countries and international organisations. Singapore will work towards implementing the new Sustainable Development Programme, which was announced during the 2015 UN Sustainable Development Summit, by partnering relevant UN agencies to provide technical assistance programmes in a wide range of fields, including public sector leadership, sustainable cities, urbanisation, as well as water and sanitation solutions. Regional initiatives, such as the AEC, TPP and Regional Comprehensive Economic Partnership (RCEP) will create new trade and investment opportunities for Singapore companies in a broader economic hinterland. The AEC will integrate ASEAN into a single regional market, thereby facilitating a freer flow of goods, services, investment and capital among member states. To this end, Singapore will do its part by enhancing the Initiative for ASEAN Integration (IAI) programme in Cambodia, Laos, Myanmar and Vietnam to accelerate their economic integration into ASEAN, thereby opening up new opportunities for Singaporeans in these countries. Singapore will work towards expediting the ratification and bringing into force the TPP, the largest regional free trade agreement. The negotiations on the RCEP are ongoing and, when concluded, will transform ASEAN and its FTA partners into an integrated market.”
“MFA will identify new avenues to maintain and strengthen our close political, economic and strategic ties with the US, China and other regional stakeholders. The recently Page: 34 enhanced Defence Cooperation Agreement with the US provides a broader framework to expand our bilateral cooperation with the US. The establishment of the "All-Round Cooperative Partnership Progressing with the Times" with China, the third Government-to-Government project in Chongqing and the upgrade of the China-Singapore Free Trade Agreement will add new impetus to our bilateral cooperation with China. With other key partners like Australia, India, Japan, Republic of Korea and the European Union, we will seek to strengthen bilateral cooperation in economic as well as security areas, such as counter-terrorism and cybersecurity. India and Singapore, for instance, have elevated relations to a Strategic Partnership and both sides will expand cooperation in areas, such as skills development and urban solutions. With Australia, the Comprehensive Strategic Partnership will enhance cooperation across economic, defence, security and people-to-people fields. To further expand Singapore's international space, we will continue to play a constructive role in various multilateral fora. Through the UN, WTO and Asia Pacific Economic Cooperation (APEC), we will actively contribute to the global agenda, including climate change, sustainable development, trade liberalisation and upholding the rules-based multilateral trading system. We will continue to demonstrate Singapore's usefulness to the G20 process through our convenorship of the Global Governance Group (3G).”
“We will host a number of important meetings in Singapore, including the ASEAN Summit, ASEAN Plus Three Summit and the East Asia Summit (EAS), presenting us an opportunity to showcase and advance the interests of Singapore and ASEAN to the world. We will make a concerted effort to promote ASEAN identity and awareness among Singaporeans through the mainstream and social media, as well as through initiatives, such as the Annual Youth Model ASEAN Conference, which aims to educate and engage younger Singaporeans about the workings behind ASEAN. As we embark on a year-long series of celebrations and projects to mark Singapore's chairmanship, MFA will partner key stakeholders, including the business community and civil society. As a small nation-state, developing strong, sustainable and multifaceted partnerships at all levels is vital for Singapore's long-term security and continued prosperity. We will endeavour to strengthen our relations with our immediate neighbours, Malaysia and Indonesia, which have made steady and substantive progress in recent years. With upcoming projects like the joint developments in Singapore and Iskandar Malaysia, the High Speed Rail and the Rapid Transit System, there is a strong impetus for closer cooperation between Malaysia and Singapore. In the case of Indonesia, we seek to expand our mutually-beneficial cooperation, following President Joko Widodo's introductory visit to Singapore in July 2015, where both countries signed agreements to strengthen collaboration in various sectors, including public policy, youth and sports and economic development. Boosting economic and people-to-people ties with other ASEAN member states is another priority. Beyond Southeast Asia, Singapore will continue to intensify our engagement with the major powers.”
“Singapore will have to navigate an increasingly complex and unpredictable strategic and security landscape. The shifts in global power and competition for influence among the major powers, particularly in the Asia Pacific, will impact the global and regional order, bringing both unprecedented risks and opportunities for us as a nation. The rise of nationalism, protectionism and the polarisation of society in many regional countries have further exacerbated the challenges faced by Singapore. The geopolitical challenges in the Middle East, particularly the threat of the Islamic State, and the disputes in the East and South China Sea, will remain intractable. Economically, the global outlook is uncertain, although landmark initiatives, such as the ASEAN Economic Community (AEC) and Trans-Pacific Partnership (TPP), offer promising prospects. In this challenging environment, MFA will focus our efforts on three key thrusts: (a) maintaining Singapore's relevance to the world and expanding its international space; (b) creating opportunities overseas for Singaporeans through economic, cultural and public diplomacy; and (c) supporting our nationals living and travelling abroad through community outreach and consular assistance. ASEAN remains a cornerstone of Singapore's foreign policy and provides the necessary bedrock for a stable, peaceful and prosperous region. ASEAN creates a platform for us to engage key major powers at a regional level. Singapore will continue to work actively to enhance ASEAN integration and centrality in the evolving regional architecture, as well as deepen ASEAN's relations with its external partners. Singapore will assume the role of ASEAN Chair in 2018.”
“Mdm Speaker, I agree with the Member. Page: 17”
“That is an idea worth studying although I do not really want a whole facade filled with prices and menus. Let us be a bit practical. We all go to hawker centres; we all have our favourite stalls; we all know what our favourite options are. By and large, the system works. Although hawkers are free to charge what they think the market will bear, I think Singaporeans vote with their feet and their stomachs, so that is usually how it works in practice.”
“All of us will remember school canteens and, even today, workplace canteens where, in exchange for low or subsidised rentals, the hawkers sell their food at low prices or even at prices which are approved by the landlord. This is a system in which by having some price restraint, you are prepared to accept lower rentals and you do your best to bring down the overall cost of doing business. I hope you will appreciate that it is a tight rope, it is a balancing act between hawkers, employees, people of Singapore and the need to make it affordable and accessible to everyone. This is the journey we have embarked on. This is a pilot, in a sense, because we have only a few centres which are run by social enterprises so far. Let us take a data-driven approach, watch the prices, quality of the food and nutrition and let us calibrate the policy along the way. My final point is that we will inject more transparency into this system. Since I am also overseeing Smart Nation initiatives, we are looking at having apps which will display the prices of food in every single stall in Singapore; maybe in real time, maybe even to allow crowdsourcing function, so you can tell us whether you think it is value for money and maybe the experts would even be able to assess nutritional value and the rest of it. Page: 16 Let us give this system a chance. I want to assure all the stakeholders in this important institution that we are doing our best to make sure hawkers gain, patrons gain. If anyone loses, it is NEA and the Government, but I think that we can and we should be prepared to tolerate that.”
“Rent is coming down; it is not the main component of operating cost. If anybody has lost out due to the rental reduction, it is the main landlord which, in this case, is the Government. I am prepared to take that because I believe this is Page: 15 social infrastructure. The next important issue is about manpower. Yes, I stand guilty as charged for raising the cost of cleaning in Singapore. But I think I stand with the support of all of the Members that we were right to impose progressive wages and to increase wages and employment conditions for cleaners. So, we have lowered rentals; but yes, manpower cost has gone up. We have further evidence that the key cost driver is not even manpower, but it is actually ingredients. That is really the reason why I was so keen to get social enterprises involved and, in particular, NTUC FoodFare. Members will recall nearly four decades or more ago, when we were worried about the cost of raw food, the advent of NTUC FairPrice, the social enterprise supplying raw food at very competitive prices, not subsidised, but very competitive prices. It had a salutary effect on the rest of the market. I am trying and hoping that this same approach would work for cooked food as well. Hence, I am happy that NTUC FoodFare took up the challenge. They are not landlords, they are managing agents. And I have told them very clearly that my main objective is help keep prices affordable as well as bring down the cost of raw ingredients for hawkers. Everything else is an extra. Yes, I know there has been some disquiet about this insistence on budget meals. But actually, this is not a new idea.”
“I thank the Member for her equally detailed supplementary questions. The issue of affordable food is very important. It goes beyond simple economics. This is an important social and, dare I say, even politically charged issue in Singapore. My approach is very simple. I believe there must always be a low-cost option on the table and this low-cost option should be available on the table in a place where people from all walks of life have access to. This democratisation of the dining experience in Singapore is something valuable; it is part of the social glue that binds us together; it is part of what defines us as Singaporeans. Once we accept that there is value in ensuring that there is always a low-cost option on the table, the next question, as the Member has correctly identified, is that there are multiple stakeholders. There used to be this thinking – which, fortunately, has now been debunked – that the main cost driver was rentals. With the policy changes over the last several years during the term of this Government as well as the data that has emerged, it is very clear now that rentals are not the major cost drivers. Nevertheless, as the Minister-in-charge of NEA, I have done my best to push rentals down. I have done that by increasing the supply. I have done that by removing the speculative element. I have done that by ensuring everyone knows that this is about food and this is not a property play. I have also done that by removing reserve rents. I have also instructed NEA to accept all valid competitive bids and, hence, as I have told the House, the lowest successful tendered bid to date is $1. All that has been achieved. The data is also out there to prove that 85% of our hawkers pay less than $1,500 of rental.”
“Members of this House will recall that the Ministry of the Environment and Water Resources (MEWR) was the first to move on progressive wages by effecting legislative changes and this has resulted in what I believe is a well-justified and well-deserved increase in wages for cleaners. There has also been some increase for hawker assistants. Again, I would expect that Members of the House would support these wage increases. Our hawkers will have to prepare for a future where wage costs will be higher and, like many small- and medium-sized enterprises (SMEs) in Singapore, they will have to try to figure how to do more with less manpower and, basically, it is about enhancing productivity. Hawkers are free to set their own food prices, taking into consideration their operating costs, market competition and what patrons are willing to pay. They do not need to submit their prices to NEA for prior approval. The social enterprises which are managing our hawker centres on a pilot basis are required to submit audited accounts and detailed management reports to NEA. NEA will ensure that the interests of hawkers, cleaners, hawker assistants and patrons are well taken care of. We believe these will enable us to ensure that hawker centres continue to fulfil their very important social function in Singapore.”
“These social enterprises, we hope, will bring new ideas based on their experience in food and beverage operations. We hope they will diversify food options, enhance the dining Page: 13 experience for patrons and raise the productivity for hawker centres, while keeping food prices affordable. For example – and this is a useful measure – both NTUC Foodfare and Fei Siong will offer discounted bulk purchasing of ingredients to help hawkers reduce the cost of raw materials. In fact, it is the cost of ingredients and raw materials that is the biggest cost driver for hawker stalls, not rentals. Fei Siong has also launched a programme to nurture a new generation of hawkers by providing training and opportunities to enter this field. We believe these initiatives are important and we hope they will help ensure the sustainability of hawkers in the future. NEA also welcomes other initiatives that the social enterprises may decide to roll out. For instance, they have insisted that the hawkers in these two centres offer at least a few budget meals on the menu. Over and above that, for low-income families which need help with their basic needs, the Government provides additional cash assistance and vouchers through the ComCare Short- to Medium-Term Assistance Scheme. These schemes are all designed to ensure that there will always be a low-cost option for food on the table. But there is one cost that has gone up and that is manpower cost, particularly because we have increased the wages for cleaners through progressive wages.”
“Hawker centres are a unique Singapore feature and they are, in my opinion, an essential social infrastructure. They are places where Singaporeans from all walks of life can gather, interact and enjoy fresh food at affordable prices. Over 85% of our hawkers today pay less than $1,500 per month in rent and, in fact, 41% of them are paying subsidised rental ranging from $160 to $384. Three years ago, we made further policy changes to remove the speculative element from hawker stalls. For instance, now we insist that all hawker stalls have to be personally operated. The stalls are not a way for landlords to make money. The National Environment Agency (NEA) has disallowed the practice of assignments and subletting. Furthermore, NEA also abolished the concept of "reserve rent" for hawker stalls during the bidding process. NEA offers available vacant stalls at monthly tender exercises and accepts all valid competitive bids. This has resulted in the current situation where about half of the successful bids are now below 85% of the assessed market rent. The tendered rentals have been falling and, in fact, fell by 3.4% last year. The lowest successful tendered rental is now $1 a month – not a typo error! To provide Singaporeans with even more affordable food options, we announced that the Government is building 20 new hawker centres, particularly in estates that have fewer cooked food stalls. Another trial that we are embarking on is the appointment of social enterprises to act as managing agents. For instance, NEA has appointed NTUC Foodfare Co-operative Ltd and Fei Siong Food Management Pte Ltd as managing agents to run two new hawker centres at Bukit Panjang and Hougang respectively on a not-for-profit basis.”
“The price of potable water in Singapore is pegged to the Long Run Marginal Cost (LRMC) of producing desalinated water and NEWater. Desalination and recycling are the main sources of the next available drop of water, given our shortage of land. Consequently, the water tariff and Water Conservation Tax reflect the true scarcity value of water. The price of water has remained unchanged since 2000. Although labour and equipment costs have risen during these 15 years, the Public Utilities Board has been able to keep LRMC relatively stable because of improvements in membrane technology and productivity. We should bear in mind that desalination and recycling water are energy-intensive processes. Hence, the key variable for the future is the price of energy. Nonetheless, given the current state of technology and energy prices, there is no need for an adjustment Page: 131 at this point.”
“Singapore submitted its mitigation pledge, known as the Intended Nationally Determined Contribution (INDC), on 3 July 2015, well in advance of the Paris Conference. We hope that our submission will encourage more countries, especially those in our region, to come forward with their pledges, too. This is important because these pledges, taken over successive cycles, will form the centrepiece of global mitigation efforts under the agreement. No single country can solve climate change alone – all countries have a part to play.”