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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Every one of 2,437 lines we hold for Vivian Balakrishnan, in date order, each linked to its source. Free to read, in full, without an account. Page 44 of 49.
“But, let me tell you, social workers do not grow on trees, and it is not just a matter of money because social workers need a very special type of person with a special heart and attitude. In the case of Singapore, it is not again something that you can just freely import because the cultural sensitivity, understanding of local conditions, means it is a very precious resource. So I am all for looking for more support for them, but I cannot promise you that overnight you can have a large increase in social workers. It is just not possible.”
“The proposal from Mr Davinder Singh was for automatic enhancement of penalties for people who have been convicted of elder abuse. He used the precedent set by changes which we made to the law with respect to domestic maids. Again, I will reiterate that I share the sentiment behind it, but I want this House to be aware that every time you legislate so-called automatic enhancements of penalties, or you make mandatory penalties in place, you are actually tying the hands and the discretion of our courts and you are making our legal system less flexible. So there are both pros and cons to this proposal. I have said that I am not convinced that this is the road yet. But looking at what needs to be done to prevent elder abuse, what we need to do to ensure early detection of elder abuse, and what we need to do to support victims of elder abuse have led me to the conclusion that there is a lot more work to be done upstream, rather than opting for this apparently easy quick-fix. Now, I grant you that it does send a signal but, again, the problem is with implementation and the fact that you are tying the hands and the discretion of the judges. The prosecutors can, and do, ask for deterrent sentences. And that is why I said it is more an issue of the administration of justice, rather than a policy of how important elder abuse is to our society. Nevertheless, it is still something which I would study together with my colleague, the Minister for Law. The second question on social register. We need to set up a central registry of all people receiving help. Similarly, we also need to keep track of all the people who are involved in this sector. I also agree that we need more social workers.”
“I sympathise with the intent behind the Member's proposal, but I remain unconvinced that legislation is the most effective way of changing mindsets. I think we have to work on persuasion, education and demonstrating by social pressure that it is wrong to discriminate. But the issue of discrimination goes beyond just the disabled and elderly. There are other cases like gender, ethnic or religious. So there are many issues when we talk about discrimination. So far, as a matter of policy, we have avoided the temptation to legislate against discrimination, not that we feel that it is not important, but the difficulties in enforcement and implementation have led us to hesitate before going down that road. But it is certainly something which you, and many of us, are concerned with, and we will continue to study this. I am not willing to move down that road yet.”
“Maybe I will use the remaining time for clarifications.”
“It will take about twenty minutes for her speech.”
“These include one Neighbourhood Link, two child care centres, one student care centre, one Early Intervention Programme for Infants and Children (EIPIC) with disabilities, one Community Integration Support Programme for children with hearing impairment in mainstream schools, and two dedicated special student care centres for children with disabilities. In addition, the proposals for three more facilities, which include one child care centre and two student care centres, are being processed. MCYS monitors and ensures that the standards of service provided by the successful agencies are acceptable, eg, through licensing and funding conditions, and regular supervision visits conducted on the various services. The service providers are also required to submit a self-evaluation of their programmes to the Ministry on a quarterly basis. Mr Speaker, Sir, my Ministry will assess service providers' performance, and work with them on areas that require improvement. Under licensing and funding conditions, my Ministry can terminate the service provider's licence, or reduce or withdraw funding for the service provider, if it consistently falls short of the standards of performance required. So far, we have not had to take this course of action. Assoc. Prof. Ngiam Tee Liang: In terms of the licensing, visits and the inspections done by the Ministry, would the Minister of State clarify what would be the expertise level of the Ministry's staff and whether they would have the knowledge, especially where there are specialised services?”
“MANAGEMENT OF WELFARE AND REHABILITATION SERVICES (Process to select service providers) 4. Assoc. Prof. Ngiam Tee Liang asked the Acting Minister for Community Development, Youth and Sports (a) how many tender awards have been made since the inception of tendering out the management of welfare and rehabilitation services to voluntary welfare organisations (VWOs) and non-profit organisations (NPOs); (b) what are the types of awards made so far; and (c) how does his Ministry ensure that the service quality provided by the successful tenderers meet or exceed the required standards set. The Minister of State for Community Development, Youth and Sports (Mrs Yu-Foo Yee Shoon) (for the Minister for Community Development, Youth and Sports): Mr Speaker, Sir, since January this year, my Ministry has implemented an Open Selection Process to select voluntary welfare organisations or non-profit organisations to provide social services in the community. Selection is based on a set of criteria which takes into account aspects such as how well the service provider understands client needs and service requirements, and its ability to deliver quality service. It is thus different from procurement or revenue tender exercises in which contracts are awarded based primarily on monetary consideration. The Open Selection system helps us to select service providers that are best able to meet the clients' needs in an effective and efficient manner. It also ensures that the provider is selected through an open and transparent process. Since the Open Selection Process was introduced, a total of eight facilities or programmes have been awarded.”
“Thank you for that question. Mdm Halimah is absolutely right that the issues confronting the family cut across multiple sectors and indeed rely on the expertise and the support provided by multiple Ministries and agencies. Juvenile delinquency is an example she cited. Yes, we certainly work with the Ministry of Home Affairs. There is an Inter-Ministerial Committee on Youth Crime, chaired by SMS Assoc. Prof. Ho Peng Kee, which looks into this. For aging, we have constituted a Committee for Active Aging, which is co-chaired by SMS Dr Balaji and by my Parliamentary Secretary, Dr Maliki Osman. On work-life balance, yes, there is a specific unit looking into work-life balance which is part of the Ministry of Manpower. But this unit was conceived in MCYS and then subsequently the embryo was transferred to the Ministry of Manpower. So the point is that, there are already committees and cross agency initiatives and programmes. I do not believe that creating a super agency to look into this will necessarily be more effective or more productive. I think it is far better that this House and indeed all the Ministers recognise that these issues are part and parcel of the overall responsibilities that they shoulder, whether you are talking about the Ministry of National Development, Ministry of Education, Ministry of Defence or any Ministry. Every Ministry has a role to play in supporting families, in supporting active aging, and even in supporting people with disabilities. I am quite happy to continue with our current model where all Ministries and Ministers accept that it is part and parcel of their responsibilities, and we will work together to generate optimal solutions for families and individuals who need our help and support.”
“The supplementary question really is a very substantive question in its own right. I do not think we will do justice to the issue of helping people with disability simply as thinking of them as a tag-on or add-on to the family. Nevertheless, the first thing to note is that all people with disability in Singapore are part and parcel of our families. As the Prime Minister himself said in his swearing-in speech, they are our brothers and sisters. The next point I want to make is that there are two key themes that underline our approach to people with disability. The first is that we seek to maximise their potential to lead independent, full and fulfilled lives. Yes, they are affected or impaired as far as certain functions are concerned. But with adequate support and education, and with necessary adjustments to the environment and to even transport arrangements, people with disability can try to lead as independent a life as possible. The second key theme is integration. Again, the point here is that people with disability are not a separate, distinct, cut-off, isolated segment of our society. If we say that they are members of our family, then they deserve the option of participating as fully as possible in community life, community activities and family life. So I do not have time to enumerate specific programmes for people with disability, but I just want Members of this House to rest assured that we will do our best to maximise independence and integration for people with disability in Singapore.”
“Clauses 2, 7, 8, 22, 26, 27 and 28 provide for these changes. I shall now briefly outline two key legislative changes related to improving our tax administration. (a) Inland Revenue Interactive Network IRAS will be replacing its information system, the Inland Revenue Integrated System (IRIS), with a new system, the Inland Revenue Interactive Network (IRIN). Through IRIN, customer service will be enhanced as electronic services, such as the furnishing of electronic notices, can now be provided to taxpayers via individualised portals. The Income Tax Act will be amended to provide electronic transactions and notices with the same legal force as paper documents. The electronic service of notices will be provided to taxpayers on an "opt in" basis. Clauses 2, 3, 4, 48 and 50 will enable IRIN e-notices to be legally enforceable when IRIN is implemented. (b) Empower Minister to appoint Deputy Chairmen for Income Tax Board of Review To increase the efficiency of the Income Tax Board of Review (ITBR), the Income Tax Act will be amended to: (i) empower the Minister to appoint Deputy Chairmen to the ITBR, who may preside over hearing committees in the same capacity as the Chairman; (ii)require appellants and IRAS to state reasons for objecting to members of ITBR being part of the hearing committee for specific cases; (iii)clarify that it is the Chairman who may nominate the members to constitute the hearing committee; and (iv) specify that the Chairman may decide on whether to allow a person to proceed with his appeal if the appeal is lodged late. These changes are covered by clauses 51 and 52 of the Bill. Sir, I beg to move. Question proposed.”
“(a) Taxing stock options for taxpayers leaving Singapore Currently, when taxpayers who have been granted stock options in Singapore leave Singapore, they will be subject to the "deemed exercised" rule. Under this rule, they will be taxed on the deemed gain from their unexercised or restricted Employee Stock Options (ESOPs) and unvested or restricted shares from Employee Share Ownership (ESOW) plans at the time of exit from Singapore. The amendments to the Act, provided by clauses 5, 47 and 49 of the Bill, will now allow employers to alternatively choose to track the individuals, after their exit from Singapore, to determine the actual gains accruing to such individuals at the time they exercise their ESOPs or at the time of lifting of the restriction on shares acquired under ESOPs, or vesting or lifting of restriction on the shares under any ESOW plan. Tax would then be assessed based on the actual gains. The "deemed exercised" rule still remains as an option. (b) Removal of combined assessment and change to wife relief Combined assessment is currently the default mode of tax assessment for married couples. Separate assessment was only introduced as an option for married women from 1962. However, separate assessment provides more advantageous tax treatment than combined assessment in the overwhelming majority of cases. That being the case, clauses 11, 23, 28, 43, 45 and 53 of the Bill will amend the Act to remove combined assessment with effect from Year of Assessment 2005. To ensure that no one will be worse off after the removal of combined assessment, the Act is also amended to allow husbands or wives to transfer to their spouses any unabsorbed capital allowances, trade losses and donations in spite of the separate assessment.”
“Hence, under the Income Tax Act, the partners of an LLP will generally be treated the same way as partners in general partnerships. Specifically, an LLP's profits will not be taxed at the partnership level, but instead each partner will be assessed to tax on his share of LLP profits based on his marginal tax rates. To prevent streaming of disproportionate amounts of capital allowances or losses from the LLP to set-off against a partner's non-LLP incomes, we put a cap on such claims up to the amount of his contributed capital. Any excess will be carried forward to be offset against his LLP income for the following year. Clause 25 adds a new section on the tax treatment of a limited liability partnership. (b) Duties of liquidator Currently, the Income Tax Act only specifies that a liquidator of a company being wound up cannot distribute any assets unless the taxes payable by the company have been provided for. With the introduction of the LLP Bill in 2005, it is necessary for the Income Tax Act to be amended to specify the duties of the liquidator with respect to the liquidation of LLPs. In addition to providing for the taxes payable, the liquidator will also be answerable for all matters required under the Income Tax Act in relation to the affairs of the LLP. Clause 44 provides for this amendment. Other tax policy changes I shall now deal with other keytax policy changes which require amendments to the Income Tax Act. Our existing tax policies and incentive schemes are reviewed regularly to ensure they remain relevant. Let me highlight two major changes to our incentives and policies that came about as a result of this review process.”
“Like the further tax rebate and parenthood tax rebate, the working mother child relief is only claimable by parents of Singapore citizen children. Clause 31 removes the further tax rebate and makes transitional arrangements for taxpayers with existing rebate balances, and clause 55 amends the Fifth Schedule to introduce the working mother child relief. (c) Grandparent caregiver relief Third, we will introduce a new grandparent caregiver relief of $3,000 from Year of Assessment 2005 to provide greater support to working mothers whose parents are helping to take care of their children, and also to recognise the important role that grandparents play in bringing up the next generation. This relief is for working mothers with children aged 12 or younger if their parent, parent-in-law, grandparent or grandparent-in-law is not carrying on any trade, business, profession, vocation or employment and is helping to take care of the children. Clause 28(i) introduces this tax relief. (d) Removal of relief for delivery and hospitalisation expenses for fourth child We have also removed the relief for delivery and hospitalisation expenses for the fourth child from 1st August 2004 because parents will now be able to use their Medisave for such expenses. Clause 28(b) removes this relief. Tax changes for limited liability partnership Let me take this opportunity now to highlight the income tax legislation to provide for the introduction of limited liability partnerships. I shall briefly explain the two key provisions. (a) General tax treatment of the LLP A LLP is fundamentally viewed as a partnership notwithstanding that it has legal rights similar to that of a company.”
“These are the various tax measures in the marriage and parenthood package announced during the National Day Rally and elaborated by the Steering Group on Population. (a) Parenthood tax rebate First, the Parenthood Tax Rebate replaces the current Special Tax Rebate with effect from the Year of Assessment 2005. The amount of rebate given is $10,000 for the second child and $20,000 each for the third and fourth child. We have also removed the condition that the mother must be below a certain age for parents to enjoy the rebate for their second child, and the 9-year cap to use up the rebate. The Parenthood Tax Rebate will be extended to parents of adopted children. Parents with unexpired Special Tax Rebate (STR) balances in Year of Assessment 2004 will have their balances converted to the Parenthood Tax Rebates. Clause 31 provides for this change and transitional arrangements for taxpayers with unexpired STR balances. (b) Working mother child relief Next, the working mother child relief will replace the enhanced child relief and further tax rebate with effect from Year of Assessment 2005. The objective of this tax relief is to encourage more women to rejoin the workforce after having children. The amount of relief that the mother can claim is 5% of her earned income for her first child, 15% for her second child, 20% for her third child and 25% for her fourth child, capped at a maximum of $25,000 for each child inclusive of other child reliefs. We have removed the condition that the mother must have three GCE 'O' levels or equivalent qualifications to qualify for the working mother child relief, which was a condition for the enhanced child relief.”
“The exemption will now cover income derived from chartering of ships to residents or permanent establishments in Singapore, as well as charter payments made to non-residents (excluding any permanent establishments in Singapore) by AISEs for the charter of any vessel used for offshore oil and gas activity. The scheme is further enhanced through an expansion of the list of qualifying ships under the scheme to include any vessel used for offshore oil or gas activity. Clauses 5, 9 and 10 provide for these changes. (e) Tax exemption for foreign-sourced income and domestic-sourced investment income of individuals Since 1st January 2004, all foreign-sourced income received in Singapore by resident individuals (except those received through a partnership in Singapore) has been exempted from tax. This exemption is intended to facilitate the remittance of offshore funds by resident individuals for investment and management in Singapore. In addition, specified Singapore-sourced investment income derived on or after 1st January 2004 by individuals from financial instruments has been exempted from tax as well. This does not include investment income from financial instruments derived through a partnership in Singapore or derived as gains or profits from the carrying on of a trade, business or profession. The exemption for domestic-sourced investment income is granted to ensure that the tax exemption for foreign-sourced income does not bias individuals against investing in Singapore instruments. It also simplifies and aligns our tax treatment of different kinds of investment income. Clause 9 provides for these exemptions. Marriage and parenthood tax changes Let me now move on to the second group of tax changes covered by this Bill.”
“Three other tax rates which are presently pegged to the company income tax rate are also correspondingly reduced. These are: (i) the general rate of withholding tax; (ii) the rate of deduction of tax from Singapore franked dividends paid on or after 1st January 2004; and (iii) the rate of tax to be used to compute the maximum effective tax rate for a body of persons. These changes in tax rates are reflected in the Bill under clauses 24, 32, 36, 37, 38, 40 and 41. (b) Tax exemption for new companies As part of Government's efforts to encourage entrepreneurship, the first $100,000 of the normal chargeable income (excluding Singapore dividends) of qualifying new companies will be fully exempt from income tax. This exemption will apply to each of the firstthree Years of Assessment of qualifying companies that fall within Year of Assessment 2005 to Year of Assessment 2009. Clause 32 of the Bill provides for this tax exemption. Where a company does not meet the qualifying conditions, it would still be eligible for partial tax exemption under the existing scheme. (c) Reduction in rate of tax on royalties to non-residents To facilitate the use of intellectual property in Singapore, the rate of tax on royalties to non-residents will be reduced from 15% to 10% of the gross amount. This reduced rate will apply for royalties that are due and payable to non-residents on or after 1st January 2005. This change is covered by clauses 29, 32, 38 and 42 of the Bill. (d) Enhancement of Approved International Shipping Enterprise Scheme To retain and attract international ship owners and operators to Singapore, the scope of tax exemption for a company under the Approved International Shipping Enterprise (AISE) Scheme is extended.”
“Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill.- [Dr Vivian Balakrishnan]. Bill considered in Committee; reported without amendment; read a Third time and passed. INCOME TAX (AMENDMENT) BILL Order for Second Reading read. The Acting Second Minister for Finance (Mr Raymond Lim Siang Keat): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Income Tax (Amendment) Bill 2004 comprisesfour groups of changes. The first provides for the income tax changes announced in this year's Budget Statement in February 2004. The second group comprises tax changes that form part of the Marriage and Parenthood package, announced in the Prime Minister's National Day Rally Speech in August 2004. Thirdly, the Bill includes legislation that spells out the income tax treatment of limited liability partnerships incorporated or registered in Singapore or overseas. And, finally, it covers other amendments to the Income Tax Act arising from regular reviews to improve our income tax system. The Income Tax (Amendment) Bill was released for public consultation on two occasions this year. The first consultation was conducted in June. A second consultation, on the income tax treatment for limited liability partnerships, was held from July to August. The draft Bill has been revised to incorporate suggestions from businesses and members of the public. Tax policy changes from 2004 Budget Statement Let me first highlight the key tax policy changes that were announced in the 2004 Budget Statement. (a) Reduction of corporate tax rate With effect from Year of Assessment 2005, the income tax rate of companies, trustees and non-resident persons will be reduced from 22% to 20%.”
“For example, our FTA with the European Free Trade Association (EFTA) states commits all parties to the non-application of anti-dumping actions vis-a-vis each other. In our FTA with New Zealand, both sides agreed to raise the de minimis threshold for the initiation of anti-dumping actions from 2% to 5% of export price. The existing Act, which provides for general rules applying to imports from all countries, needs to be amended to take into account our current and future FTA commitments. The amendment Bill creates a new section 45A. This gives the Minister for Trade and Industry the power to make regulations to give effect to Singapore's legal obligations under any international agreement. In the unlikely situation that Singapore might initiate an anti-dumping action against one of our FTA partners, the new section 45A will allow us to enact regulations that modify the application of the Act's provisions to goods from our FTA partners. The new section 45A is not expected to be used frequently, if at all. Even if we have to do so in future, there would be an even slimmer chance of us taking an action againstone of our ownFTA partners with whom we have, after all,preferential trading relations. Sir,Singapore exporters have been the subject of more than 20 anti-dumping investigations initiated by a variety of countries including India, China, Australia and the United States. To reduce or even eliminate the burdens faced by our businesses when they are subject to anti-dumping investigations, we will continue to push for tighter rules on anti-dumping in our FTA negotiations. The new section 45A will provide the legislative basis to give effect to the tighter rules that we secure. Sir, I beg to move. Question put, and agreed to.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Countervailing and Anti-Dumping Duties Actwas enacted in 1996 to allow for the investigation of subsidies on goods imported into Singapore, as well as the dumping of such goods in Singapore. The Act also allows for the imposition of countervailing or anti-dumping duties to offset such subsidies or dumping. The purpose of the legislation is to empower Singapore to protect our market against unfair trade practices. Sir, if a company exports a product at a price lower than the price it normally charges in its own home market, that company is said to be "dumping" the product. There are World Trade Organisation (WTO) rules governing how a WTO member country can or cannot react to dumping. Broadly speaking, the WTO rules allow a government to act, or take anti-dumping action, when there is material injury to the competing domestic industry. The government must be able to show that dumping is indeed taking place, calculate the extent of dumping, and show that dumping is causing injury or threatening to do so. Taking anti-dumping action means charging extra import duty on the imported product in order to bring its price closer to the "normal value" or to remove the injury to domestic industry. Sir, it is an infrequent occurrence for Singapore to take anti-dumping actions. Our exporters are more likely to suffer from the imposition of such duties by other countries, than to benefit from us taking anti-dumping actions. Hence, in our negotiations on Free Trade Agreements (FTAs), we seek to rule out the application of anti-dumping actions with ourFTA partners, or at least agree to tighten the WTO rules so that it is more difficult for our FTA partner to impose these measures against us.”
“Yes. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Dr Vivian Balakrishnan]. Bill considered in Committee; reported without amendment; read a Third time and passed. COUNTERVAILING AND ANTI-DUMPING DUTIES (AMENDMENT) BILL Order for Second Reading read. 2.50 pm”
“That being said, I do agree with Dr Ahmad Magad that we do need to raise the awareness of SMEs with respect to the pioneer incentives and indeed all the other host of incentives and support schemes which we have in place for them so that, ultimately, what we are trying to create in Singapore is anecosystem of big and small, foreign and local companies, who will be able to make new products, new services and be a vibrant self-sustaining economy.”
“Let me say first that I agree wholeheartedly withhim that our SMEs should look for opportunities to tie up with partners, both local as well as overseas, in order to reach the critical mass for them to be able to embark on projects, products and services which would be of value to Singapore at the strategic level. The Pioneer Incentive, in particular, I want to emphasise, is not limited to only foreign MNCs, but is also open to local enterprises, provided they meet the deliverables for the scheme which all applicants are uniformly subject to. On this point, I am sure Members of the House would agree with me that we should be fair to both the local SMEs as well as MNCs whom we are inviting. The criterion is the strategic value of the industry, goods or services which they are producing. In addition to this, however, we recognise that our local SMEs may have difficulties inreaching the pioneer incentive criteria and therefore rather than to downgrade the criteria for the Pioneer Incentive Scheme, we have provided a different set of incentives which are more appropriate to the needs of local SMEs. And examples of these include the Local Enterprise Technical Assistance Scheme and the Local Enterprise Finance Scheme, which cater specifically to local SMEs. Dr Ahmad Magad may wish to note that in the Budget 2004, the Government gave tax exemptions for the first $100,000 taxable income for all companies less than three years old, and this will certainly cover the SMEs and start-up companies in the local context.”
“So there needs to be a correct balance between transparency of the policy, which I agree with wholeheartedly, and a certain amount of discretion with respect to the implementation of the policy. There are trade secrets and certain tactical advantages which would be ceded by being too open about the companies or the products that we are considering providing these incentives to or, indeed, are negotiating with them in order to invite them to Singapore. So let me assure the House that we would make sure the process is adhered to, and adhered to in a proper and rigorous manner. But I also appeal for the forbearance of the House that not everything can be completely transparent in this process. But there are clear guidelines for both the award and the revocation of the pioneer status and there would be a due process of communication with the affected companies. We are proposing to remove the need for general public consultation because, as I have said earlier, we need to preservediscreetness in some parts of this process. Let me move on to the capital and writing down allowances. In the amendment to section 10, the capital expenditure referred to in this section means those that are granted under section 19B of the Income Tax Act and this states "capital expenditure in acquiring any Intellectual Property rights for use in that trade or business". Therefore, when you read it in context, what it really means isfor the use by the company for its business in Singapore, but the actual physical exploitation of that asset may be overseas, just as,for example,ships are given capital allowances but, by definition, in the Singapore context, the ships ply outside Singapore physically. I move on tohis points on SMEs.”
“Mr Speaker, Sir, first I would like to thank Dr Magad for the suggestions in his speech. Let me deal with them, one at a time. The first one was on the similar extension of the tax relief period to the post-pioneer incentive. I would like to clarify that this incentive has, in fact, been replaced in 1996 by another incentive scheme which was called the Development and Expansion Incentive Scheme or DEI for short. I apologise for the frequent acronyms. The DEI offers a concessionary tax rate of not less than 5%, that is, in fact, better than the one you had recollected, and is for a period of 10 years in the first instance, and the Minister may extend the period further, not exceeding 5 years at a time, up to a total period of 20 years. I thinkhe would agree with me that a pioneer incentive period of up to 15 years plus a DEI incentive of up to 20 years is quite a significant incentive scheme when taken collectively. The next point I want to touch on is the issue of transparency or secrecy, ashe referred to. I would like to clarify that currently the Minister can already revoke the pioneer status given to industries or products, without the need to invite the public for its views. The current legislation requires opportunities for the public to object for the inclusion of an industry or product onto the pioneer list, but not for its removal from the list. But let me address the issue in this way. These incentives schemes that the EDB works on, are really attempts to incentivise and to bring in strategic industries and companies into Singapore. Members of this House would also realise that in today's day and age, this is a very competitive field, with many countries looking to see what we are doing and, quite frankly, copying it.”
“These amendments provide for the following: (a)a change in the definition of terms relating to the amendment to section 4 (ie, clause 2 of the Bill); (b)an expansion of the definition of "concessionary income" under the provisions governing investment allowances ( ie, clause 9 of the Bill); (c) thetreatment of dividends declared by and the requirement imposed on a company which is granted the investment allowance(ie, clauses 10 and 11 of the Bill). Consequential amendments would also be made to the Income Tax Act arising from changes to the EEI Act. This is to provide for the expansion of scope of the TII to cover start-ups from all sectors and to rename the incentive as the EII.Clause 16 of the Bill amends the relevant section of the Income Tax Act to provide for these changes. Mr Speaker, Sir, the proposed changes to the Economic Expansion Incentives Act seeks to stimulate more economic activity in Singapore. These changes reflect the Government's commitment to monitor the effectiveness of our tax incentive regime and to keep it relevant and competitive as economic conditions change. Sir, I beg to move. Question proposed.”
“In addition, one of the existing conditions for allowing deferment of deduction of capital allowances is that more than 50% of the paid-up capital of the pioneer enterprise must be held by persons permanently resident in Singapore. However, as this preferential tax treatment is increasingly a powerful tool to attract foreign investments, it should also be made available to foreign companies on a case-by-case basis. The amendment to section 10(3)(a) is therefore to allow the Minister the flexibility to specify the minimum percentage of paid-up capital to be held by persons permanently resident in Singapore.These changes are reflected in clause 5 of the Bill. Enhancement of Development and Expansion Incentive Sir, currently, the Minister is empowered under section 19K(2) to grant upfront, the Development and Expansion Incentive, or DEI for short, fora tax relief period of not more than 10 years. Further extensions may be considered only towards the end of the first incentive period. The Bill seeks to give the Minister the flexibility to grant upfront extensions of the incentive period to companies, subject to the existing maximum incentive period of 20 years. The intention is to provide investors more certainty of a long-term tax incentive in Singapore and put us on par with other competing locations.Clause 8 relates to this change. Consequential amendments Finally, as a result of the various changes to the EEI Act, consequential amendments will have to be made tosections 3, 66(1) and 70(2)of the Act as well as changes to section 37C(19) of the Income Tax Act.”
“With increasing competition from both developed and developing countries for investments from multi-national companies (MNCs), we need to enhance the tax incentives offered to MNCs in order to encourage them tomake large investments in Singapore. To this end, the maximum duration for the Pioneer Incentive has been extended from 10 to 15 years with effect from Budget Day 2004. This applies to both pioneer industries and pioneer service companies and is in line with our economic strategy of promoting both manufacturing and services as the twin engines of growth.This change is reflected in clauses 4 and 6 of the Bill. Pioneer industries The Bill also provides for an amendment to section 4(2) of the Act to remove the mandatory requirements to invite the public to object to the proposed pioneer industry or products, and for the Minister to declare via an order the industries and products that have been granted pioneer status. The amendment is to allow the Government greater flexibility in customising incentives awarded to strategic companies, and hence protect our national competitiveness.Clause 3 relates to this change. Capital and writing down allowances Currently, section 10(3) of the Act provides for the deduction of capital allowances on fixed assets to be deferred until the expiry of the pioneer period. The Bill amends the section to provide for similar treatment for writing down allowances in respect of capital expenditure incurred in acquiring Intellectual Property Rights. This is in line with the Government's efforts to develop Singapore into an Intellectual Property Hub.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." This Bill will amend the Economic Expansion Incentives (Relief from Income Tax) Act, or the EEI Act in short. It will put into effect two tax changes which were announced in the 2004 Budget Statement. It will also make other technical amendments to the Act. I will now describe each of the proposed amendments in turn. Enterprise Investment Incentive The Enterprise Investment Incentive or EII in short, was announced in the 2004 Budget Statement. The EII essentially expands the scope of the previous Technopreneur Investment Incentive (or TII in short) to now include all forms of start-ups. The TII was first introduced in 1999 to promote private equity investments in technopreneurial start-ups at the seed stage. To encourage entrepreneurship in general, the TII, with effect from the announcement on Budget Day, has now been expanded to include start-ups from all sectors and hence, we have renamed it theEII. The eligible investors in start-ups awarded the EII will enjoy tax deductions, against their taxable income, for losses incurred by the investors upon sale of shares in or liquidation of such start-ups which occur during the qualifying period. All prevailing conditions applicable to eligible investors in start-ups who were awarded the TII will similarly apply to eligible investors in start-ups awarded the EII. Clauses 12, 13 and 15 of the Bill amend Part XIIIC of the EEI Act (comprising sections 97S to 97Z) to give legislative effect to the EII. Pioneer Incentive Let me move on to the Pioneer Incentive. The maximum tax relief period under the Pioneer Incentive will now beextended from 10 years to 15 years.”
“The Sports Council will determine the rental pricingpolicy, andthe key determinant there obviously is the question of affordability. So the Ministry will work to ensure that the facilities are affordable. But having said that, we also have to bear in mind that regardless of whether it is being run as a PPP or run as a direct facility of the Sports Council, at the end of the day, someone still has to pay for it. And it is a question of how much the user will payversus how much he wants taxpayers to pay. Our prime focus should be on getting the overall costs down and we can do that best by running things cost-efficiently. In the case of this PPP project, we are hoping that with private sector involvement, they will have an even better handle on cost control. ECONOMIC EXPANSION INCENTIVES (RELIEF FROM INCOME TAX) (AMENDMENT NO. 2) BILL Order for SecondReading read. .22 pm”
“Sir, the utilisation of sports facilities is not simply due to the rental rates which are charged. To a large extent, the first pre-requisite is that we create a sporting culture where people will participate in sports on their own free will and decide to use the time they have available to pursue these activities. So over the next few years, MCYS will certainly focus on promoting a sporting culture. Having said that, the next issue then is facilities. One of the priorities in the immediate short-term would be to look for ways in which we will work with MOE to open up facilities in schools, including school fields, running tracks, etc, to the local community. If we can work on both promoting sports as a way of life and creating accessible facilities in the neighbourhood, I think we will get a much more vibrant sports scene. The question of rental rates is also one that is linked to the issue of utilisation because clearly, the more intensively facilities are used, the lower the unit cost and lowerunit costwill alsoenable us to provide more facilities at an affordable rate. The point I want to make is thatthe starting point will be to promote sports as a way of life. Secondly, to ensure that the facilities are convenient and accessible. And thirdly, run it as cost-efficiently as possible so that the rental rates will be kept at an affordable level, ie, affordable to the people who participate in sports as well as affordable to the Government.”
“The Jurong Sports Stadium is still available during this period. The Member's second question waswhether we should build intermediate-sized facilities. At this point in time, the plan for the Sports Hub would be to have a stadium which would have a seating capacity for about 55,000 spectators. This is actually slightly smaller than the current National Stadium because we have found that the current National Stadium has hardly any event which necessitates 65,000 seats. We will study this issue about whether we need an intermediate-sized stadium, but my initial reaction would be that it is not necessary at this point in time. Each stadium is a significant capital investment and we would rather make sure that we have a sporting calendar which is full and maximally utilises all the facilities available at the regional level before contemplating even more intermediate-sized stadiums, as he has suggested. Nevertheless, it is something which we will certainly bear in mind.”
“The PPP approach will not compromise the type or thedesign of the facilities for the Sports Hub. MCYS and the Singapore Sports Council will specify the types of facilities that should be provided, and set basic design parameters which theprovider will have to adhere to. We will aim for a design that befits a national sporting facility, but yet, it iscost-effective and operationally efficient. The Singapore Sports Council will also specify certain service outcomes for the project, which will include a certain number of days which the sports facilities would be available for Government and community use. The Sports Council will also determine the appropriate rental pricing policy, and we will ensure thatfacilities remain affordable.”
“Sir, MCYS is in the process of structuring a Public Private Partnership (PPP) tender for the Sports Hub.We are adopting a PPP approach so as to tap on ideas from the private sector on how to design, construct and operate a landmark sporting infrastructure in a most cost-efficient manner. We have appointed a financial and legal advisor to assist us in drawing up the tender specifications. We will request for tenderers next year and hope to appoint a PPP provider who will help to design, construct and operate the Sports Hub by 2006. The construction of the Sports Hub is expected to start in 2007 and, hopefully, willbe completed by 2010, which is the target completion date that we had initially set for the project. During this period, the existing National Stadium at Kallang will have to be demolished in order to make way for the new stadium. We do not expect the National Sports Associations and the training of national teams to be adversely affected during the construction of the Sports Hub, as none of them currently use the National Stadium for their daily training.We have many local and international events on our sporting calendar today, but not all of them make use of the National Stadium. These events will have to be held at alternative venues, such as the regional stadiums or the Padang during the transition.The biggest of these alternative venues is the Jalan Besar Stadium with 6,000 seats. In addition, the Chua Chu Kang Stadium can hold crowds of 4,000 currently, with up to 9,000 with additional temporary stands. For events that require even more capacity, the Padang can be used as an alternative venue.There are no plans to build a temporary stadium just for the transition period of three years, as this will clearly not becost effective.”
“Mr Speaker, Sir, may I have your permission to take Question Nos. 9 and 10 together as they are related?”
“Mr Speaker, Sir, in my answer earlier, I emphasised that the SNOC is a non-government organisation. It does not work under the direction of MCYS and this reward scheme is not done under the direction or behest of the Government. It is an arrangement which SNOC makes with commercial sponsors. In the same light, if the Singapore Disability Sports Council or the Special Olympics Singapore, through other non-government organisations, wishes to make similar arrangements with commercial organisations, they are entirely free to do so. But I want to emphasise that this is not something which is being done at the direction of the MCYS. SPORTS HUB 9. Mr Zainudin Nordin asked the Acting Minister for Community Development, Youth and Sports, with the impending demolition and redevelopment of the Kallang Stadium into a new and modern sports hub (a) how will it impact local sporting events, infrastructure needs of the National Sports Associations, regional and international tournaments; and (b) whether his Ministry will consider implementing intermediate level infrastructure or make significant improvements to existing infrastructure to fulfil the inevitable vacuum that will be created due to this big and long-term redevelopment project. 10. Mr Ng Ser Miang asked the Acting Minister for Community Development, Youth and Sports, now that the Sports Hub will be constructed under the Public Private Partnership Scheme and be operated by private company, how will this affect the completion date of the Hub, the design, the type of facilities to be included, the affordability to Singaporeans who wish to use the sports facilities and the rental rate to National Sports Associations and organisations who wish to stage sports events at the Hub.”
“This is useful as most residents in new estates do not know each other, and the grassroots leaders can act as catalysts for community bonding. Children of grassroots leaders are eligible for priority registration during Phase 2B of the primary school registration exercise, and only for schools within the constituency that they serve and/or reside. This registration priority is not exclusive to grassroots leaders and is also extended to others who have served or are connected to the school in one way or another. To broaden their perspectives, serving grassroots leaders who have not had the benefit of higher education are eligible for the People's Association Training Awards in non-graduating management and related courses. REPORTERS SANS FRONTIERES RANKING ON SINGAPORE 29. Mr Steve Chia Kiah Hong asked the Minister for Information, Communications and the Arts, according to the latest world press freedom ranking report of Singapore by the international association, Reporters Sans Frontieres, (a) are there reasons for the association to rank Singapore as the lowest developed country in terms of press freedom; (b) how will this ranking affect the reputation and development of Singapore as a cosmopolitan city; and (c) what efforts will be taken to give the press more freedom so as to move Singapore up the press freedom ranking scale.”
“The functions of these committees and those of their advisers are available on the PA website (www.pa.gov.sg) for everyone to read. Mr Steve Chia's suggestion to post them on the notice boards is not practical, because the limited notice-board space is better utilised to communicate or inform residents about current and upcoming activities in the neighbourhood. Nevertheless, I will summarise the functions of these committees, and state the role of their advisers. The CCCs lead and co-ordinate projects and activities at both constituency and national levels. They also disburse bursaries and scholarships, as well as raise funds and give welfare assistance to the needy. In addition, they disseminate information on Government policies to residents in the constituency, and channel their feedback to the Government. The CCMCs manage the CCs which organise courses and activities for the benefit of residents. The RCs focus on residents in their designated zone, promoting neighbourliness among them through activities like block parties and celebrating festivals together. RCs also serve to channel information on Government policies to residents and vice versa. The role of advisers is straightforward - all these committees from time to time consult their advisers, tapping on advisers' experience and knowledge, in carrying out their functions. On privileges given to grassroots leaders, there are two major ones which are common public knowledge, as these have been mentioned in the media from time to time. Grassroots leaders who have served a minimum three years get priority HDB housing allocation within the constituency they serve. This enables the People's Association to leverage on experienced grassroots leaders to start new grassroots organisations and activities in new estates.”
“Dr Amy Khor Lean Suan asked the Minister for Manpower given the recent significant dip in overall unemployment rate (a) if he will give a comparison of the unemployment rate of (i) workers below 45 years of age and those above 45 years of age, as well as (ii) those who possess tertiary education to those who do not; and (b) if he will state the success rate of schemes that have been implemented by his Ministry to help the older and less educated workers to find jobs and what other schemes are being considered to help such workers.”
“It is really a repetition of the same question. I think our retailers exercise a considerable amount of forbearance and the key point they want to see is that there is a serious and concerted effort to settle the arrears and not to just allow things to escalate out of hand. If we do that, we are really not doing anyone any favours and, in fact, Members will know that a few years ago, when there were problems with the billing system which resulted in delayed billing of power bills, it actually caused a situation in which households were stuck with huge amounts of arrears whichtook time to clear, both on the part of the households as well as the retailers. So the general principle which I want to emphasise is that power is not subsidised in Singapore. Secondly, please conserve energy to the maximum extent that you can and, thirdly, make serious efforts to settle your bills, and if you really have difficulties,please seek help from the local community organisations. We do not want to confuse the role of the retailer with the community assistance organisation or with that of the Government either. UNEMPLOYMENT RATE 2. Mdm Halimah Yacob asked the Minister for Manpower (a) if he will give an assessment of the labour market situation; and (b) whether the lower unemployment rate of 3.4% for the third quarter is an indication that the job market has improved or is this an aberration as has been suggested by some economists. 3. Dr Wang Kai Yuen asked the Minister for Manpower what are the reasons behind the sharp drop in the unemployment rate while structural unemployment remains a persistent problem. 4.”
“Mr Speaker, I do not want to get involved in the specific details of what is a commercial arrangement between the power retailers and the specific customers concerned. But the point is, so long as the customer is paying and has a realistic plan to pay off and settle his arrears, usually the commercial operator will not take drastic steps. I think Members of this House will agree that the minimum is that they have to at least settle their on-going charges which they are incurring every month because if they do not even settle that, it means that their arrears are going to escalate and they end up in a deep, deep hole which they cannot recover from. Mdm Ho Geok Choo (West Coast): Sir, I would like to ask the Minister whether, in light of what he has said about not getting involved in the nitty-gritties, he would consider the intervention of the CDCs so that we will have a more robust arrangement in helping these low-income families when they come for assistance with regard to their financial help in this area. This is in relation to Mr Gan Kim Yong's question about some assistance to lower the requirement for the payment before assistance is given.”
“Thank you for the request. At this point in time, the CDCs are not short of funds to support assistance schemes for specific sectors of our society. Butonthe question of whether or not prices should be subsidised overall, the answer is no. Specific assistance schemes are present and funding is not the limiting factor at this point in time.”
“Thank you for that question. 97% of our gas comes from Indonesia and 3% from Malaysia. In the market for gas, we entered into long-term contracts which are indexed to oil prices because, in the case of production of electricity, these two fuels are, in a sense, interchangeable. When oil prices go up, because of the nature of the contracts which we have entered into, our gas prices will also go up. Similarly, if oil prices come down, so will our gas prices. This means that, as far as we are concerned, at this point in time, our cost of producing electricity is indexed to the cost of oil although 60% of our electricity production is produced using gas.”
“Mr Speaker, electricity costs are not subsidised in Singapore. We do not subsidise these costs because we do not want to distort the price signals which the subsidised price would have on our economy. With respect to lower income families who require assistance, we have specific assistance schemes run by the Community Development Councils (CDCs) and by the local community organisations to help these families. Members may be aware of the Rental and Utilities Assistance Scheme for those who are living in rental flats who experience cash flow problems from time to time. Similarly, for those who live in purchased flats, there is the Interim Financial Assistance Scheme to help them with specific needs which may arise from time to time.Even in the case of public transport, Members may be aware that the public transport operators, together with NTUC Club, SLF and the CDCs, have set aside a sum of $6 million in a public transport fund and this fund is used to help low income families pay for public transport expenses of their school-going children. In summary, the point is that we do not subsidise these prices but we will customise specific assistance programmes for those segments of our society who need help.”
“Like any Singaporean family, a family where the mother or wife is a former foreign domestic worker or work permit holder may approach the Government for financial assistance if they are in need. The Government will assess requests for financial assistance based on the current and anticipated needs and circumstances of the Singapore family. We would not consider the previous nationality or occupation of the family members in making an assessment. As such, we do not track the number of families, where the mother or wife is a former foreign domestic worker or work permit holder, that have sought financial assistance. APPENDICES”
“Mr Steve Chia Kiah Hong asked the Minister for Home Affairs (a) if he will give a breakdown of the migration figures for the last 10 years on (i) the number of Singaporeans who had emigrated and given up on their Singapore citizenship, (ii) the number of immigrants who have taken up Singapore citizenship, (iii) the age, qualification and employment profile of these migrants, (iv) the number of emigrants who are retired officers from Government service and Government-linked companies; and (b) whether his Ministry had any success in reducing the number of Singaporeans who had given up on their citizenship over this period.”
“Through the Community Development Councils (CDCs), the Government also assists families who are in financial hardship to offset their utilities expenses. Needy families living in HDB rental housing may apply for the Rent and Utilities Assistance Scheme (RUAS), whilst those living in purchased flats may apply for the Interim Financial Assistance Scheme (IFAS). Depending on the family's circumstances, we may grant utilities assistance of up to $90 a month. In addition, Citizens Consultative Committees (CCCs) also offer local schemes to assist families who need help with their utilities bills. SP Services will be rolling out a pre-paid meter scheme from May 2005. This scheme will be available to families residing in HDB flats whose electricity supply has been disconnected due to payment default. Under this scheme, prepaid electricity meters will be installed at such flats. This would help the families consume what they can afford to pay, and therefore prevent their arrears from increasing. Families with difficulties paying their utilities bills should approach SP Services early to make alternative payment arrangements. Those who are subsequently still in need of financial assistance with their utilities arrears should approach their Community Development Council so that the appropriate help can be extended in time. WRITTEN ANSWERS TO QUESTIONS SINGAPORE CITIZENSHIP 1.”
“At the end of August 2004, there were about 3,000 homes which were without power because of utilities arrears. We are concerned when families are unable to afford their power as it is a basic need. However, most of these homes were 4-room HDB flats or larger. Some of the homes were condominiums or landed property. In addition, most of these families could make some payment and would get their power restored in the process. In general, the families would approach SP Services with some payment to reconnect their supply within two weeks of supply disconnection. As the economy improves over the next few years, we expect the number of homes with utilities arrears to decrease. For example, between August 2003 when the recession was at its height, and August 2004, the number of new accounts in arrears (ie, those families defaulting on their bills for the first time) has halved. Nonetheless, there are some families who may have financial difficulties in paying their power bills. They would therefore accumulate arrears. For these families, SP Services will first work with them to better understand their difficulties and develop a suitable instalment plan to clear up their arrears. We would like to assure Mr Chia that the power supply for these families will not be terminated simply because they have chalked up arrears. Families will be given ample opportunities to sort out their utilities financing, including paying their arrears through instalments. Before any disconnection of supply, SP Services will send at least two reminders and a final notice of intended disconnection to the home within eight weeks. SP Services would only terminate the power as a last resort.”
“Thank you for the question. It is a good question. If you read carefully the clauses he is referring to, it provides for consultation to occur between the Competition Commission and the regulators in those sectors. And his next question should be: why is there a need for any consultation? There are two reasons. First, as a general rule, we want to ensure that we are moving forward in the same direction and aiming towards some future congruence. That is not something which we want to specify or lock ourselves into. But the other more important reason is that we have also said that where the companies in that sector get involved in cross sectoral businesses or, indeed, engage in businesses outside that sector, then the Competition Bill must apply to them. So there will be circumstances when a certain amount of coordination and dialogue is needed between the Competition Commission and the regulators of those sectors. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Dr Vivian Balakrishnan]. Bill considered in Committee; reported without amendment; read a Third time and passed. SINGAPORE ARMED FORCES (AMENDMENT NO. 2) BILL Order for Second Reading read.”
“I am almost tempted to ask the Minister for MICA to answer that. Anyway, that question was asked and answered during the Question Time earlier today. Again, all I would say, at this stage, is that there are only two points. That is a sector which does not come under the ambit of the Competition Act. It is regulated by MDA. And these issues which the Member has raised should properly be resolved by MDA. But I would like to reiterate what the Minister said, which is that the Government has not reversed its position on openness to competition in the media sector. The other point which he made, and I think is worth reiterating, is that we cannot insist on competition at all costs. Let us not forget that at the end of the day, this is a business that needs to be run and a business that needs to be viable. To blindly insist that you must keep the appearance, the form of competition at all costs even when it does not make business sense would be wrong. It would be wrong for the Government to insist on that and for the Government to impose that on listed companies. Mr Iswaran: May I just ask the Minister? I appreciate the explanation given on why the Government has chosen to maintain sector-specific bodies and striking a delineation between those and the Competition Commission. But my reading of the Bill is that there are certain parts of the Bill, I think clauses 33 and 61, which give the impression that the Commission would have certain powers to enact or prescribe codes that would impinge on those sectors. So there appears to be a contradiction there that the Government's policy intent is to decouple, but the drafting of the Bill suggests that there might actually be an overlap. So I do not know whether the Minister can give a clarification now.”
“There are public policy objectives which, sometimes, we must impose.”