Wong Kwei Cheong
Singapore
“Sir, I beg to move, That the sum to be allocated for Head S of the Main Estimates be reduced by $10 in respect of Code SJ 1500. My cut is on job placement and labour market information services. According to the 1995 Economic Survey of Singapore, the unemployment rate in June 1995 was 2.7%, slightly higher than the 2.6% a year ago.”
“Sir, my amendment is on conciliation services. According to the 1995 Economic Survey of Singapore, about 8,800 workers were retrenched in 1995 compared to 9,444 in 1994. Most of them were retrenched from the manufacturing sector, mainly the electronic products and textile and wearing apparel industries.”
“Sir, to help low-income families own 3-room HDB flats, the Government has raised the income ceiling from $1,000 to $1,200 in January 1996. Can the Minister give a report on the number of low-income families that have benefited from this revision? HDB has also bought back 3-room HDB flats from the open market for resale to HDB applicants.”
“Sir, the Minister has announced that with effect from 28th August 1995, the CPF Housing Grant Scheme has been revised as follows: $40,000 grant to be given to first-time buyers to buy a 2-room or larger resale flat. Those married children buying near their parents' home can apply for $50,000 grant.”
“Sir, I beg to move, That the sum to be allocated for Head W of the Main Estimates be reduced by $10 in respect of Code WK 3100. Sir, I am speaking on the strengthening of international trade. According to the 1995 Economic Survey of Singapore, exports in 1995 rose by 14% to $168 billion compared to 23% in the previous year.”
“Sir, I beg to move, That the sum to be allocated for Head W of the Development Estimates be reduced by $10 in respect of Code WH 5200. According to the 1995 Economic Survey of Singapore, Singapore's gross expenditure on research and development in 1994 amounted to $1,175 million, up 18% from 1993.”
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“Sir, I would rather the Senior Parliamentary Secretary give the reply here than have another meeting outside.”
“Did the MOE refer the unsuccessful cases to HDB in case they have available stalls? What about empty stalls in MOE markets? Of the 412 stalls in Cuppage Centre, for example, 148 stalls are still vacant even though the market was opened more than four years ago. I fail to understand why 148 stalls remain vacant at the Cuppage Centre when 4,774 applicants failed to get a hawker licence in 1986. Even if none of these applicants are happy with Cuppage Centre, perhaps MOE can approach the HDB if they have suitable applicants. MOE can also consider privatizing some of the hawker centres. Start with Cuppage Centre, for example. If MOE cannot find suitable hawkers, why not lease the empty stalls to private entrepreneurs? MOE can experiment with a two-tier licence system. Existing hawkers paying the normal fees and a new licence fee based on market forces for the private entrepreneurs and of course subject to market conditions. I hope the Minister can find a solution to fill up the empty stalls at Cuppage Centre and perhaps also at other MOE hawker centres in other constituencies. As a final solution, they can perhaps discuss with the HDB to form a single management body that can work out a long term plan for all the hawkers in Singapore.”
“According to the 1986 Annual Report of the Ministry of the Environment as at 31st December 1986, there were 25,449 hawkers, of which 6,479 came under the Ministry of the Environment and 17,514 came under the HDB. There must be good reasons for two Government organizations taking charge of two large groups of hawkers. However, for better management and planning, would it not be more efficient for the two groups of hawkers to come under one management authority? Under present conditions, it is difficult to understand the Government's policy regarding the long-term future of our hawkers. For example, is there a plan to phase out the slaughter of chickens in wet markets? The Ministry of the Environment tried to forbid the slaughter of chickens at the Cuppage Market. Fortunately, the Minister for the Environment was able to reverse this decision when I appealed to him on behalf of the hawkers. I must thank the Minister for this kind gesture but I am sure it is not the end of MOE's attempt to phase out chicken slaughtering in MOE markets. As there are also many chicken stalls in HDB markets, I hope officials from both MOE and HDB can get together to work out plans before stopping the slaughter of chickens in any other markets. Of course, hawkers in wet markets will be happier if the Minister will give the House the assurance that there will be no changes to the present mode of sales of chickens in all the wet markets. Another point which I would like to enquire of the Minister is the extent of cooperation between officials of his Ministry and the HDB. For example, according to the 1986 Annual Report, the MOE Hawkers Department received 5,723 applications for hawker licences in 1986 and only 949 cases were successful.”
“Sir, as a motorist I would like to commend the URA for having improved its parking services by providing more lots and better services. According to the 1986-87 URA Annual Report, the URA has provided a total of 36,435 car parking lots, 1,480 lorry lots and 7,323 motor cycle lots. I believe part of the objective of the URA is to serve the people of Singapore and not just to make money. This can be seen by the two surveys carried out by the URA in 1986 which show that the URA parking rates were either the same as or lower than that of private car parks. I believe the URA can provide a better service to the public by providing free parking at selected URA car parks during weekends and public holidays, just as the HDB has done for HDB car parks in HDB estates. I refer to URA shopping complexes, like the Cuppage Centre, where business is poor, even during weekends and public holidays. Cuppage Centre, in particular, has a wet market and a food centre where business has been poor for several years. I am sure there are other URA shopping complexes that are suffering from bad business. If the Minister can consider providing free car park facilities at URA shopping complexes like Cuppage Centre, the public will benefit from the convenience of weekend shopping and the hawkers will benefit from the additional business.”
“Sir, I would also like to draw your attention to the large number of new HDB and new HUDC flats that have been left vacant, some for more than two years. I hope the Minister can inform the House the number of such vacant flats and why they have been left vacant. Perhaps it is bad location. For example, the empty HDB flats at Nee Soon. Or because the location is too good, for example, the empty HUDC flats at Anthony Road. However, since it is the Government's objective to provide homes for the low income and middle income groups, the HDB should make every attempt to meet the housing needs of Singaporeans and not to wait for property prices to appreciate before selling the new HDB or HUDC flats. Sir, I would like to appeal to the Minister once again to sell the HUDC flats at Anthony Road now when they are more affordable to most middle income Singaporeans.”
“The HDB ought to be congratulated for its successful housing programme. For by the end of 1986 about 2.2 million people or 85% of Singapore's population lived in HDB flats. However, there seems to be an area of neglect in the HDB's building programme which I hope the Minister will review. This concerns the old HDB apartment blocks. In Cairnhill, for example, the former SIT blocks at Winstedt Drive and Farrer Road have, at most, 50% occupancy. I have constant appeals from Singaporeans to rent these flats as they could not afford to buy the normal HDB flats. The answer is, inevitably, no. I hope the Minister can enlighten me on the number of such old HDB flats there are in Singapore and the plans he has made for the future usage. May I make two suggestions. Firstly, that these older apartment blocks be renovated and sold to the low income groups. Although many of these flats are more than 20 years old, they are structurally sound and should last for another 50 years or more. Secondly, why not convert some of these old apartment blocks to homes for the aged? Already, in many housing estates like Winstedt Drive, the aged prefer to live in the old housing estates. As reported recently in the newspapers, the granny flats have not been successful as the grannies prefer to live by themselves. Our population is fast ageing and there is a growing demand for facilities for the aged, in particular, housing facilities. The HDB should recognize this trend in their building programme and convert some of the older housing blocks to homes for the aged with facilities like driveways for wheelchairs, nursing and medical facililties and so on.”
“Every means should be made available to them to upgrade themselves so that eventually they or their children will be able to climb up the social-economic ladder. Only then can our society become a more caring society where everyone can find himself a niche in Singapore to lead a meaningful life and to make a positive contribution. And only when the whole population is engaged in nation building can we achieve our goal and realize Vision 1999. Sir, I whole-heartedly support the financial policy of the Government for the coming fiscal year.”
“In Singapore, out of necessity we had to adopt a bilingual education policy for our students to learn English and mother tongues. Of course, not all students are linguistically endowed. Some have to be content with only one language. But the abler ones should be encouraged to take up a third language. To the Chinese students, I would like to recommend the Malay language. The Malay language is important not only because it is our national language but also because it is the language of our neighbouring countries. Three out of the six ASEAN member countries, namely, Indonesia, Malaysia and Brunei are Malay-speaking countries. It is imperative that those who hold public positions in Singapore should be able to converse in the language of their counterparts in neighbouring countries in order to develop closer ties. Besides, Malay is a beautiful language. The more you learn it, the more you love it. It is also a modern language which absorbs foreign scientific and technological terminologies. I am glad that the Government is encouraging our non-Malay civil servants to learn the Malay language. With serious effort, they should be able to master the language quickly. Mr Deputy Speaker, Sir, for the progress of society as a whole, the people of all races and social strata should as far as possible move forward in tandem. The fruits of success should be shared among the people who have made the contributions to achieve success. Our society rewards and recognizes merit. Everyone has to work hard in order to have better remuneration and a better place in society. Keen competition cannot be avoided. In such a situation, some will lag behind others. Therefore, we must not forget those who are less successful, who are in the lower economic strata of our society.”
“One of the underlying factors of our economic success is that over the years we have built up a more tolerant, more cohesive society in which people are prepared to accept reasonable argument and act rationally. We should never underestimate the importance of this factor or take it for granted. In order to resist the erosive impact of Western culture, we encourage our people to keep their traditions and cultural roots. The Chinese, Malays and Indians thus preserve their respective cultural heritages and traditions. It is perfectly all right for people to revive their old customs or celebrate their century-old festivals. But care should be taken not to over-empha- size activity that is confined to a certain race only because this could inadvertently lead to racial polarization which is something that we must avoid. Hence we have to strike a balance between perservation of traditional culture and the need to avoid polarization. Conscious efforts should be made for everyone to understand not only the culture of his own race but also the culture of other races. Wherever possible, people of different races should be encouraged to participate in the activities which are traditionally confined to a certain race. For example, Indians and Malays could participate in the Chinese New Year Hong Bao Show. Likewise, Chinese and Malays could participate in Deepavali festivities, and so on. If we can organize activities that can happily involve people of all races, we will be contributing a great deal towards inter-racial understanding and social integration. Mr Deputy Speaker, Sir, there is no better way to understand the culture and heritage of a people than to learn their language.”
“I am sure that Members will agree that much of the success that we enjoy and will continue to enjoy into the future depends on the size of our talent pool which is affected by professionals leaving the coun- try. Of course, our ability to attract and retain talent depends on other factors; in fact, it depends on the diversity of factors that cut across different Ministries, including Finance, Education and Community Development. I would like to recommend that an inter-ministerial task force be formed to address this issue. The Senior Parliamentary Secretary to the Minister for Communications and Information (Mr Ho Kah Leong)( In Malay): Mr Deputy Speaker, Sir, the Budget Statement delivered by the Minister for Finance on the 4th of this month is reassuring. It will sustain the momentum of economic growth after the speedy recovery of our economy. We achieved a remarkable 8.8% growth last year against the backdrop of a sluggish world economy. We have reason to rejoice but we should never be complacent. The Government's policies, especially the taxation policies, should never stifle those who aspire to reach greater heights. On the contrary, our taxation policies should be flexible enough to collect enough revenue to finance public expenditures while at the same time providing impetus and incentive for the ablest to contribute towards the well-being of Singapore on the other hand. Better still, if our policies are also able to attract foreign talent to Singapore. It is encouraging to note that our taxation policies have been moving in this direction in recent years, a trend again reflected in the Budget Statement this year.”
“Levy on foreign workers. I am concerned that this increase in levy may have adverse consequences. Firstly, it affects our manufacturing industry which is highly export-orientated and would diminish our competitiveness in the international market. Secondly, it may force employers to substitute less productive local labour for foreign workers and continue to encourage inflexibility in our workforce, for example, the unwillingness amongst our workers to work in the third shift. In addition, because of our tight market situation, it is doubtful that the increased levy will discourage the further employment of foreign labour. Duties on cigarettes. The increase in the duties on cigarettes is not punitive to the consumer. As the demand for such item is inelastic, the marginal increase will not discourage smokers. It is also unlikely to deter potential smokers, including students. And moreover, to the nation, the health cost associated with smoking will far outweigh the revenue arising from the duties imposed. I would like to recommend to the Minister to consider a much more substantial increase as a clear signal to discourage this unhealthy and socially undesirable activity. On the Skills Development Fund (SDF). It has been pointed out that as a nation, we are spending proportionately less on training and upgrading our workforce. Moreover, in the past year the emphasis of the SDF has been extremely distorted in favour of the lower-paid workers. I would recommend a higher budget for the SDF and a more generous subsidy for professional courses like management and development programmes. This will help us to maintain our talent pool and reduce the number of professionals looking outside the country for development opportunities.”
“In fact,there is no give-away. The PAP has not won elections in the past by adopting give-away budgets and it is not about to do so now or in the future. If the voters are expecting give-aways in this Budget, I think they are going to be disappointed. Due credit must be given to the Ministry of Finance for adopting a cautious Budget in spite of the upswing in our economy and pressure to relax the belt -tightening measures which we have put in place during the recession years. We must always ensure that the cost of doing business in Singapore remains competitive by maintaining a flexible tax and wage structure and by increasing productivity. The new incentives for services and overseas investments will certainly continue to stimulate our economy by attracting more investments in high-value addedactivities like research and development in industries where we have comparative advantage. Sir, in supporting the motion, I would like to take the opportunity to highlight a few areas of concern. First, the manpower in the public sector. We have a stated policy of divestment of government and statutory board services to the private sector. The Budget Statement on manpower policy in the public sector appears to be incongruent with this objective in that divestment has not been employed as a means of managing the manpower resource. I believe that by aggressively pursuing a divestment programme in all the Ministries, it should be possible not only to achieve zero growth but also to reduce the actual overall manpower level. To achieve this, I would recommend that manpower requirement be approved at the highest level, new functions of services should only be entered into after the Government has ascertained that the private sector is unable to undertake these services.”
“In view of the fact that the international trading environment has become increasingly protectionistic, the TDB should continue to promote Singapore's exports by expanding existing markets and developing new ones. May I suggest one market which the Government should pay more attention to, and this is the Malaysian market. Johor, in particular, is just across the causeway. The TDB could easily organize trade missions to Johor to further develop our close links in trade and industry. The Minister has in the Budget Statement mentioned that a total of $6.13 million has been awarded to more than 500 companies under the Market Development Assistance Scheme (MDAS). Perhaps more of our businessmen can be encouraged to make use of the MDAS to develop their markets in Malaysia. Another area that Singapore can work closely with Malaysia is that of tourism. Singapore businessmen can be encouraged to participate in tourism development projects in Johor, for example. Travel agents too can be encouraged to promote day tours to Johor, which will in turn help us to lengthen the period of stay of tourists in Singapore. In conclusion, Mr Deputy Speaker, Sir, I would like to support the motion standing in the name of the Minister. Dr Koh Lam Son (Telok Blangah): Mr Deputy Speaker, Sir, I rise to support the motion on the Budget Statement for the financial year 1988. In view of the recession that the country has recently recovered from and the uncertainty of the world economy in the later part of the year, our Budget is sensible and reflects an appropriate level of caution. Sir, I cannot understand what the Member for Potong Pasir meant when he said earlier this morning that this is an election budget. He has failed to point out in his speech what the give-aways are in this Budget.”
“For example, the 1986 Annual Report of the Ministry of Labour shows that the labour force participation rate of women aged 15 years and over was only 45.6% as at June 1986. The problem in Singapore is that the labour force participation rate of women peaked at 80% for the 20-24 age group and then declines continuously thereafter. This is a serious problem, as women in Singapore tend to leave the workforce after marriage. The Government should address this problem and provide incentives to attract these women to rejoin the workforce, even on a part-time basis. Although the Economic Committee has pointed this out in its 1985 report, to date the problem remains unsolved. Mr Deputy Speaker, Sir, may I suggest that the Government promote part-time work by making it less costly for employers to do so. For example, CPF contributions for part-time workers should be reduced or removed completely. The cut-off point of $363 where full CPF contributions are made has been in existence for many years and should be revised upwards so that part-time workers can benefit from more take-home pay. Sir, may I once again stress that using the foreign workers' levy as a market mechanism to solve the labour shortage problem is not a long term solution. The Economics Committee has discussed and reported on this problem. What remains is for the Government to form a high-powered task force to put forward some long-term solutions. Mr Deputy Speaker, Sir, in the area of international trade, I am glad to note that the Government, through the Trade Development Board, has considered it a matter of urgency to look for new markets in Japan, Europe and other countries.”
“Moreover, with the removal of our GSP status by the USA Government, and other cost increases like the increase in the foreign workers' levy from $140 to $170, the competitiveness of our non-oil domestic products may soon be eroded. The Minister should therefore announce categorically that there will be no further increases in the CPF contribution rates and the SDF rate for this financial year. This will remove a great deal of uncertainty and nervousness in the business community. Mr Deputy Speaker, Sir, the Minister has pointed out a significant constraint to our economic growth, ie, our labour shortage. The Minister has increased the foreign workers' levy from $140 to $170 in order to reduce the demand for foreign workers as a result of the pick-up in our economic activities over the last two years. The immediate effect of this increase is to increase our cost of labour as employers will have no choice but to offer higher wages to attract more local workers. Our economic recovery over the last two years was due very much to the cooperation of our workers and unions in implementing the wage restraint policy. The increase in the foreign workers' levy will mark the end of our wage restraint policy at a crucial time when the world economy may be heading into a recession. Moreover, if the foreign workers' levy is used as a market-related mechanism to regulate the demand for foreign labour, employers will never be sure what their labour cost will be as the Minister has not indicated how long the foreign workers' levy of $170 will be maintained before announcing the next increase. Sir, may I suggest that the Government form a high-powered task force to put up a comprehensive action plan to resolve this labour shortage problem. This problem is not insoluble.”
“Mr Deputy Speaker, Sir, I would like first of all to congratulate the Minister for Finance for the Budget statement. Last year, the Budget statement was given various labels, starting from Procreative Budget, Growth Budget, to Baby Budget. This year, the labels vary from Painless Budget, to Dull Budget, to Business Budget, to Nervous Budget. Mr Deputy Speaker, Sir, in view of the stock market crash of October 1987 the Minister has taken a realistic approach by not making upward adjustments to the Central Provident Fund contribution rates or to the Skills Development levy as feared by many employers. However, the Minister should realize that the world economy is heading downwards and should not create so much uncertainty by stating that CPF rates and the SDF rate may possibly be raised after the first quarter economic results are known. This has made the business community nervous. I do not think it is possible to predict Singapore's economic performance for 1988 based on its performance for the first three months. I hope the Minister will not be misled by the fact that in nominal terms exports from Singapore rose by 23% to $60 billion in 1987, largely as a result of strong growth in non-oil domestic exports and re-exports. Even if this increasing trend in our export performance continues for the first quarter of 1988 the Minister should not overlook the fact that the economies of our major trading partners, namely, USA and Europe, are weakening. Recently, 90 economic experts from 40 nations held two days of meetings at the United Nations headquarters and concluded that world economic growth is expected to slow somewhat in 1988 and markedly so in 1989, with the United States leading the way.”
“They will see that by supporting the Agenda for Action they will help build a strong, united and pro- sperous nation. They will realize that the Agenda will help their children to have a better education. Through the Agenda for Action they will understand the challenges facing Singapore and what we must do to adapt to changing circumstances. In summary, the Green Paper, the Agenda for Action, is an action plan that will help Singaporeans lead a more gracious, fulfilling, cultured and secure future. Only the PAP Government has taken the difficult task of preparing this action plan through extensive consultations with Singaporeans from all walks of life. Mr Deputy Speaker, Sir, I give my full support to the Agenda for Action and I am confident that it will also receive the full support of all Singaporeans.”
“Mr Deputy Speaker, Sir, the Agenda for Action contains the main tasks facing Singapore in the 1990s and beyond. It represents the sum total of the efforts put in by Singaporeans in dozens of forums, discussions and debates, on the goals which we as a nation wish to achieve. In short, the Green Paper, the Agenda for Action represents the wishes of the people of Singapore, and how Singaporeans would like their children, and their children's children to live and work in Singapore. Mr Deputy Speaker, Sir, when Singapore achieved her independence in 1965, our leaders, the PAP leaders, were able to rally the people of Singapore with the battle cry "Merdeka". Merdeka brought hope to Singaporeans. To the poor, Merdeka brought hopes of better jobs and a secure future. To the oppressed, Merdeka brought hopes of freedom, and the chance to run Singapore for the benefit of Singaporeans. To the rich, Merdeka brought hopes of more wealth as new business opportunities were opened up. After more than 22 years of independence, these hopes have been fulfilled. Our wealth, as measured by the per capita GNP, has increased from $1,330 in 1960 to $14,678 in 1985. About 85% of Singaporeans live in HDB housing estates, and 80% own the homes they live in. Singaporeans have already satisfied their basic needs for food, shelter and clothing. Social scientists will say that Singaporeans today are more interested to satisfy their esteem needs, ie, the need for recognition, for prestige, and for self-respect. The Agenda for Action will help Singaporeans satisfy their esteem needs. Today, Singaporeans will find it difficult to rally to the battle cry "Merdeka". But Singaporeans will easily identify specific sections of the Agenda that will satisfy their respective needs.”
“Sir, may I ask the Minister of State whether it is the policy of the Government to build HUDC flats for speculation or to provide affordable housing to middle-income wage earners?”
“Sir, what measures will be taken against the children of Singapore citizens who have breached the marriage policy, especially when such children were not born in Singapore?”
“Sir, firstly, how many collective agreements in Singapore are there, for workers with retirement ages beyond 55? Are there any such collective agreements with reducing wage scales for those above 55? If not, how will the Ministry go about encouraging in future, as the retirement ages are increased, reducing wage scales for those who are beyond 55? The second question I would like to ask is about the target total CPF rates announced. Are they going to be the maximum rates on a permanent basis? Or, would these target rates be changed as our economic performance improves in the years to come? My third question is, since I believe the objective of this whole exercise in restructuring the CPF long-term rates is to encourage more older workers to join the work- force so as to reduce our tight labour situation, there is also another pool of workers, part-time workers in particular, who should be considered. If you look at the Female Labour Force Participation Rate, it drops very quickly after the age of 25. This shows that many of our female workers, after marriage, do not join the workforce. May I ask the Minister whether he is willing to consider reducing the CPF contribution rates for part-time workers? If they are reduced, then factories for example, can start 4-hour shifts and engage many of these females who are not able to work on a normal 8-hour shift.”
“The quantum of $100 million is now subsumed under the Economic Development Assistance Scheme, the umbrella programme for all of the EDB assistance packages, and I am sure much more will be spent. Courses run by NPB. The numbers declined last year because of two reasons. It was a recession, so many companies cut back on training expenditures which they felt they could postpone. This is regrettable but it was so. Secondly, particularly for courses on labour management cooperation and to some extent also quality control circles, in 1984 and 1985 NPB mounted a blitz. We went out of our way to saturate the market. In 1986, having saturated the market, we cut back on the volume. As for the adequacy of SDF for funding training, the Member has a point. At the 1% contribution rate, SDF only collects $24 million a year. We are now spending about $80 million a year on SDF subsidies. At this rate, although we have presently some reserves, SDF will soon run out of money.”
“If this trend is to continue, the quality of our workforce will be seriously affected and productivity increases will be minimal. What I find more distressing is the fact that the Skills Development Fund has withdrawn financial support for management development programmes conducted by many companies and other professional bodies. Many of our local entrepreneurs will be forced to forgo such management development programmes as they will not be able to afford the full fees charged. Sir, I hope the Minister realises that productivity depends on trained workers as well as trained managers and supervisors. If the SDF fails to collect sufficient funds, the Minister should consider promoting training through tax incentives for companies as well as for individuals. If a tax incentive of $20,000 for the third child can be introduced, why not a similar generous amount for career development purposes? I hope the Minister can take this proposal up with the Minister for Finance for next year's budget. Finally, as our economy recovers, our local industries will once again be faced with the problems associated with labour shortages. Has the Economic Development Board any plans to help our manufacturers to employ more workers, perhaps by allowing them to take in workers from the non-traditional sources. BG Lee Hsien Loong: Mr Chairman, I will be brief. We set aside a sum of $100 million for assisting small industries. In the first year of the Small Enterprise Bureau's existence, we extended a total of $7(r) million in grants. This is accounted for by $1.8 million in terms of small industries, technical assistance scheme and the local industries upgrading programme, and another $5.7 million in interest subsidies on a very large volume of SIFS loans. The pace has quickened this year.”
“Sir, I beg to move, That the sum to be allocated for Head V be reduced by $10 in respect of Subhead VE-01-3110 of the Main Estimates*. Sir, it was mentioned in the Economic Committee's Report that a sum of $100 million has been allocated by the Government to the Small Enterprise Bureau to help promising enterprises upgrade and take off. May I request the Minister to give examples of how companies have benefitted from this assistance and the amount that has been disbursed so far? In view of the fact that the Skills Development Fund has reduced its assistance to management and supervisory development programmes, will the Minister consider the $100 million fund to be used also for training purposes by our local entrepreneurs. Higher productivity depends very much on training. Many workers working at small enterprises have benefitted from training assistance provided by the Government. More workers are forming Quality Control Circles (QCCs) to help improve productivity and efficiency through better labour management relationships. The National Productivity Board should be complimented for helping to form some 4,600 QCCs by the end of 1986, with a total membership of some 33,000 workers. This is an increase of 27% compared to 1985. I am however concerned over the drop in the enrolment for courses conducted by the NPB. According to Table 6.2, page 57 of the 1986 Economic Survey, the enrolment for management and supervisory development courses dropped from 12,735 in 1984 to 10,809 in 1986; and the number of participants in seminars and workshops dropped from 23,172 in 1984 to 13,491 in 1986. Mr Chairman, Sir, is this a result of the lack of Government support for training in Singapore?”
“What I would suggest is that the Minister should consider the possibility of allowing employers to take in workers from the non- traditional sources which are, of course, cheaper than workers from the traditional sources. This will not increase our pool of revolving workers which the Minister has suggested because in view of the downtrend of the construction industry, many non-traditional workers have already left Singapore to go back to their own home countries. And to help our employers in Singapore to maintain their competitive edge and especially in view of the fact that the Minister has already announced that he will implement this new scheme on 1st April, then by allowing our employers to have this additional option of getting workers from the non-traditional sources they will be able to maintain their competitive edge and help our economy to recover.”
“Mr Chairman, I would like to comment on the points made by the Minister in relation to the $140 levy. Firstly, on job hopping. I am glad that the Minister recognizes the fact that the $140 levy will lead to more job hopping. This, of course, can be seen from the table circulated by the Member for Kebun Baru which shows that at the same wage cost to employers, the take-home pay of the worker on the levy scheme is certainly higher than that of the worker on the CPF scheme. The Minister has mentioned that he will consider suggestions to be made in order to curb this job hopping. I hope he will consider the suggestion of not providing work permits to these foreign workers who quit their present jobs to join another employer at a higher take-home pay based on the levy scheme. The next point which I want to comment on is the cost increase. The Minister has mentioned that employers should practise restraint in wage increases. But in view of the fact that our economy is improving and the fact that there is a tremendous demand for labour as can be seen from the unemployment figures which was 6.5% in June last year and has really dropped to about 4.6% by the end of last year, this demand for additional workers will force many employers to increase their wages, even for the new foreign workers. And employers may maintain the same existing basic wage of, say, $500 when he employs a worker from the traditional sources and his cost will go up from $550 on the CPF scheme to $640 on the levy scheme, an increase of $90. The Minister has suggested that the employers under such conditions should practise wage restraint which I doubt that under existing conditions employers can do.”
“May I add in also. I do not also agree with the Senior Parliamentary Secretary. With 298 market produce stalls and more than half empty for so many years since 1983 when the CBD was introduced, I am not too sure how many other market centres also have such empty market stalls. My simple question is, why can't the Ministry convert some of these empty market stalls to cooked food stalls when there is a big demand for cooked food stalls?”
“They are both at the Cuppage Centre. The market as well as the hawker centre.”
“He has said that in the five pilot hawker centres, two are in my constituency, Cuppage and Newton Circus, the hawkers are not forced to use disposable utensils. But I hope he can visit these hawker centres to see whether or not they are forced. There are many Environment officers at the hawker centres issuing summonses quite liberally when the hawkers do not follow the urgings of his Ministry's officers. I am sure the additional cost whether we like it or not would eventually be passed on to the consumers. A good example is the Handicraft Centre where hawkers use disposable utensils. If the Senior Parliamentary Secretary were to visit the Handicraft Centre, he will find that the prices there can be more than double the normal prices at other hawker centres. I am afraid if this practice is to be introduced to all the hawker centres in Singapore, then whether we like it or not, prices of hawker food will go up in Singapore.”
“Thank you, Mr Chairman. I would just like to add to what my colleague, the Member for Jalan Kayu, has said on the demand for more hawker licences, especially for cooked food stalls. Invariably, during my meet-the-people sessions, we are faced with many such requests and when we make the request to the Environment Ministry, a negative answer is received. There are many hawker centres where business for market produce stalls is rather poor. For example, at the hawker centre at Cuppage Centre, of the 298 market produce stalls, more than half are empty for quite a few years. I brought up this subject last year and the Senior Parliamentary Secretary suggested that I refer the matter to the Ministry of Communications because the problem is really due to the fact that the CBD boundary is just outside the Cuppage Centre. But the Minister for Communications and Information has indicated very clearly that the policy of his Ministry is to include the Cuppage Centre offices within the CBD and they will not change this ruling. So it is no help to the hawkers at the Cuppage Centre. However I would still like to appeal to the Environment Minister to see whether he could change some of the empty market produce stalls into cooked food stalls so as to help bring back business to the Cuppage Centre, just as one example. The other point which I would like to take up is disposable utensils which has been raised by some of the Members and answered by the Senior Parliamentary Secretary. I know this matter has been debated before during the Questions for Oral Answer session. I would like again to emphasize the problem to the Senior Parliamentary Secretary.”
“Sir, firstly, were the hawkers in the five selected centres consulted before they were asked to use the disposable utensils? Secondly, are the hawkers in these selected centres compelled to use the disposable utensils even though they may find it inconvenient? Thirdly, will the Ministry extend this practice to all hawkers in Singapore eventually?”
“Sir, may I ask the Minister if the unsold flats, especially those that are unsold for more than a year, have been over-priced, and will the Ministry consider reducing those prices according to market demands?”
“(2) Whether this topping-up scheme could be further extended to adopted children and siblings of the aged persons. May I also suggest that the CPF Board take appropriate steps to inform or to explain to the CPF contributors that this is a voluntary scheme to enable contributors to help their aged parents and not a legislation to compel or force contributors to pay from their CPF accounts. Sir, I would like to support the Bill.”
“Mr Deputy Speaker, Sir, I rise in support of the amendment Bill. The CPF minimum sum scheme was announced and debated in the House last August. Most of the queries raised by Members during the debate have been clearly explained by the Minister then and need no further elaboration. I hope the Minister can clarify three more points. Firstly, sections 12C and 12D of the amendment Bill do not spell out clearly whether cash payments to top up the parent's minimum sum account are tax exempt. Can the Minister please explain? Secondly, there is no provision in the amendment Bill for children to do a second topping up if the parents live longer than the 20 years estimated under the minimum sum scheme. Thirdly, as mentioned by the Minister during the debate in August 1986, the minimum sum of $30,000 will pay out about $230 per month for 20 years based on the then prevailing bank deposit rate of about 4ª%. Sir, the current deposit rates are as low as 3%. Can the Minister assure the House that our senior citizens affected by the scheme will still receive the $230 for the next 20 years? On that note, Sir, I support the amendment Bill. Encik Abbas Abu Amin (Pasir Panjang): Mr Deputy Speaker, Sir, I would like to support the Bill. This Bill when passed will enable any person who has sufficient CPF savings of his own to participate in the topping-up scheme to ensure financial independence of his parents after the age of 60. The participation in such a noble scheme would foster greater filial piety and a sense of responsibility for children to support their aged parents. I would like two clarifications from the Hon. Minister on clause 5 of the Bill. (1) Since the transfers could be made either through CPF accounts or with cash, I would urge that these contributions be tax exempted.”
“Mr Speaker, Sir, since about 1,000 units of HUDC flats, at an average price of about $250,000 each are left unsold, there is a sum of about $250 million of public funds left idle. May I ask the Minister how does his Ministry plan to make use of these unsold units?”
“Perhaps he can persuade the Minister for Communications to relocate the CBD gate to a more convenient position as I have failed to do so or to relocate the hawkers to a better site where they can continue to make a decent living.”
“The Ministry of the Environment should be congratulated for their efforts to clean up our streets of illegal hawkers, dirty and unhygienic eating places and rat-infested buildings. Many of the resettled hawkers have benefitted from the resettlement. Many, however, have suffered from a drastic loss of income as a result of a loss of regular customers or simply being resettled in a less popular site. One example is Cuppage Centre which is in my constituency. In September 1978, stalls from the popular Orchard Road market were resettled at the newly-built Cuppage Centre. There were a total of 412 stalls, consisting of 112 cooked food stalls and 298 wet produce stalls. Their businesses were building up and they were happy with their new location until February 1983 when the CBD gate was moved from Orchard Road to Clemenceau Road, adjacent to the Holiday Inn Park View. The wet produce stalls suffered a drastic reduction in business as their regular customers were no longer able to park their cars in the Cuppage Centre car park without paying $5 for a CBD ticket. Many had to give up their businesses. Today, out of the original 298 wet market stalls, only 172 are left. I was told that of these 172, around 20 are no longer operating although they still have their licences. The hawkers of Cuppage Centre have taken their problems to me. I have repeatedly appealed to the Ministry of the Environment, the Ministry of National Development and the Ministry of Communications, but it was all to no avail. May I appeal to the Minister to look personally into the plight of the Cuppage Centre hawkers.”
“Sir, I would like to speak on two subjects - one on environmental health and another on hawker control. Firstly, under Environmental Health, I would like to speak on pasar malams. The Member for Kaki Bukit has mentioned this subject and I would like to further elaborate on this. The pasar malam organized by the Singapore Tourist Promotion Board at the Handicraft Centre has been a success with both tourists and local residents. May I ask the Minister why is it not possible for the Ministry of the Environment to set up more pasar malams in such popular sites like Chinatown or even at Orchard Road as previously mentioned by the Member for Kaki Bukit. May I point out that the open-air markets are popular tourist attractions also in developed cities. For example, London's Covent Garden was converted from a wet market selling vegetables and flowers to a modern open-air dry market frequented by tourists as well as Londoners. Paris too has established a series of popular open-air markets. Singapore used to have several such open-air markets, the Chinatown one being best known. I can understand the need for the Ministry of the Environment to clean up the streets and the drains of Singapore, but surely it is possible for the Ministry to establish new guidelines to encourage modern, clean and sanitized open-air markets to be set up. We are going through a recession and there should be no shortage of unemployed people willing to start a little business and able to comply with any fair and clear guidelines for the setting up of open-air markets. May I urge the Minister to put up a plan for the establishment of such pasar malams at Chinatown and other popular locations? The other topic I would like to bring up is the resettlement of hawkers.”
“Mr Speaker, Sir, I would like to ask the Minister whether it is true that some HDB flats were not taken up by purchasers for more than a year. If so, why were such flats not taken up?”
“Sir, may I ask the Minister if the Government is also planning to cut partially or even completely the 13th month AWS payment of Government employees?”
“Sir, the Minister has mentioned that he has not received any request from taxi drivers for fare increases. Will he consider such a request from passengers?”
“Mr Speaker, Sir, may I conclude by sharing with Members of this House a recent discussion I had with one of my MBA students. He is now a full-time student. He told me that he was formerly a part-time MBA student. Recently, however, he was retrenched from his company. He, therefore, decided to study full-time, even though he has to support a wife and three children with his savings. With better education, he hopes to find a job after getting his MBA degree. Mr Speaker, Sir, I dare say that this is the typical spirit of a Singaporean in the recession. With lower operating costs, and a better business environment and with Singaporeans who are prepared to work hard and save for the future, I am confident that we will soon recover from the recession. Sir, I support the financial policy of the Government. 5.03 pm”
“Tourists, doubting the safety of Singapore hotels, may cancel their trips here. Mr Speaker, Sir, may I appeal to the Government to step up their efforts to promote Singapore as a clean, green and safe tourist attraction. May I appeal to the Government to build new tourist attractions, like theme parks and marinas, and to start immediately the preservation programmes in Chinatown, Little India, and around the Singapore River. The next issue that I would like to bring up is that of training. The Economic Committee Report highlighted the fact that 60% of our workforce have primary or no education. Singapore's future depends on the productivity of our workforce. Training is the basis for higher productivity. We cannot leave the responsibility for their training to the employers. The Government must play a more active role in upgrading the quality of our workforce. The Member for Alexandra, in the debate on the President's Address, bemoaned the fact that the Skills Development Fund has only paid out $42 million out of a total accumulated fund of over half a billion dollars. I do not support the argument put forth by the Member for Alexandra that SDF payments by employers should, therefore, be suspended. Training is essential and SDF payments force employers to take training seriously. What I would suggest, Mr Speaker, Sir, is that the SDF should be administered by the National Productivity Board and not the Economic Development Board. After all, the job of the Economic Development Board is to promote investments whereas the job of the National Productivity Board is to promote productivity and training. With SDF, NPB will have the financial muscles to seriously upgrade the quality of our workforce with appropriate training programmes.”
“Hoteliers appreciated such measures and wished more could be done. They have submitted detailed proposals to the Government through the Singapore Hotel Association. Hoteliers have discussed their many proposals with me last year when I was Chairman of the Singapore Tourist Promotion Board. Today, I intend to take up their main proposal, and that is, the mothballing of hotel rooms. The hoteliers have emphasized to me the need for Government to provide sufficient financial incentives for hoteliers to mothball up to 30% of the rooms available. Unfortunately, the current budget does not contain such incentives. The glut of hotel rooms will result in fierce price competition between the hotels. As mentioned by the Member for Rochore just now, some of the deluxe hotels are offering their rooms at around S$70 per night. At these rates, such hotels will not even earn enough for the financing costs. Mr Speaker, Sir, such price competition is harmful to our tourist industry. Our hotels lose money. Overseas tour operators are reluctant to package tours to Singapore, as hotel rates are dropping continuously. Our tourist arrivals may even be reduced. I therefore give my full support to the Singapore Hotel Association's proposal to stabilize prices by mothballing the rooms, and hope the Minister for Finance will review their submissions and provide hoteliers with sufficient financial incentives for them to do so. Mr Speaker, Sir, the tourist industry in Singapore is facing acute problems. There is a glut of hotel rooms and shopping complexes. We do not have sufficient attractions for the average tourist to retain him or her for more than 3.5 days. On top of that, the recent disaster of the Hotel New World collapse will mean unfavourable publicity for Singapore's tourism industry.”
“We have a competitive Singapore dollar. Through the implementation of the recommendations of the Economic Committee, the business environment will be further improved through a series of cost reduction measures. We will regain our competitiveness. There is every good chance that we will recover from this recession provided that we work hard to reduce our operating costs and increase our productivity and, provided, of course, that the world's economy will continue to recover with the drop in oil prices. The Economic Committee has already studied most economic issues in great detail. I would like to speak further on two issues. Firstly, tourism. Tourism is a major export industry, contributing about 16% to Singapore's foreign exchange earnings. In the 1970's tourist arrivals were increasing at an average of 15% per year. Hotels were enjoying occupancy rates of more than 90%. This has encouraged many developers to embark on hotel development projects. Today, we are faced with a glut of hotel rooms. This number will increase to some 30,000 by the end of 1990. We will need some 5 million tourist arrivals to enable hotels to achieve an average occupancy rate of 65%. However, based on current projects, we may only achieve visitor arrivals of 4 million by 1990, giving hotels an average occupancy of 50% or less. Hotel investors have poured billions of dollars into the hotel industry. For example, assuming a cost of S$200,000 for each hotel room, the total investment by 1990 will be some S$6 billion. Sadly, today, many hoteliers are planning for massive losses over the next few years. Several will go bankrupt. The Minister for Finance in his recent Budget Speech has outlined a few measures to help the hotel industry.”
“This will not only benefit our car owners but also our industries, as their PUB bills will be further lowered. Hopefully, SBS fares and taxi fares will also be lowered so that more people can be encouraged to visit our empty shopping centres. The travel industry will benefit. For example, SIA, our national airline, is expected to save some S$100 million in fuel costs this year. On the negative side, the economies of our neighbouring countries will suffer from a drop in oil revenues, as they are oil producers. Our invisible trade will suffer. Tourism, for example, will be affected by an expected drop of visitors from our neighbours. Together with falling oil prices, world interest rates have dropped and the exchange rate of the US dollar vis-a-vis other major currencies have declined. How does Singapore benefit from these changes? Firstly, lower interest rates will mean a quicker economic recovery for the OECD countries, and therefore a better market for our products. Secondly, the USA is our major trading partner, and the movement of the Singapore dollar tends to follow that of the US dollar. Of course, the value of the Singapore dollar also depends on other factors like the state of our economy, as recently explained by the Minister for Finance. Today, the Singapore dollar is far more competitive than what it was before, especially when compared to the European and Japanese currencies, as shown by figures recently quoted by the Minister for Finance. Mr Speaker, Sir, I am confident that the chance of Singapore's recovery from the current recession looks brighter than ever. External factors have directly or indirectly contributed to an increasing demand for our goods and services, and to a reduction in our energy costs and in interest rates.”
“Mr Speaker, Sir, I rise in support of the motion standing in the name of the Minister for Finance. Mr Speaker, Sir, the sate of our economy has been adequately discussed during the recent debate on the Presidential Address in Parliament. Most of the recommendations made by the Economic Committee have been adopted by the Government, as confirmed by the Minister for Finance in his Budget Speech. It is indeed a generous Budget, full of goodies like the 25% tax rebate to all taxpayers, property tax reductions, and other incentives to industry and commerce. Will these measures help Singapore overcome the current recession? I am confident they will. But let us not forget, Sir, that Singapore is but a small boat struggling to keep afloat in a very turbulent ocean of world economic uncertain- ties. Fortunately, certain world events today are taking place that will help us to be more competitive. Let me elaborate. First, the oil price drop. Oil prices have dropped by more than 50% in three months to a current value of about US$13 a barrel. What is the significance of this price reduction? The OECD countries in 1984 imported some US$175 billion of oil. A one-third drop in oil prices means a saving of some US$60 billion. This amounts to a major tax cut and will help to reduce inflation and stimulate growth for oil-importing countries. Disinflation will be the momentum behind the economic recovery for most OECD countries. We can expect an increase in the purchasing power of their consumers and therefore a corresponding increase in demand for our goods and services. Singapore's economy will also directly benefit from this oil price reduction. Already premium grade petrol is reduced to 90.9 cents a litre from a high of $1.51 cents a litre about a year ago.”
“In this area of manpower training by industry groups, the Government through the SDF should be more forthcoming in their training grants. Shatech, for example, has to be assisted by the Singapore Tourist Promotion Board to the tune of $1 million as they did not receive sufficient SDF training grants. In a recession, industry groups also suffer from a shortage of funds. Manpower training shoud be regarded as a national objective and financed as such. Industry groups need more SDF financing if their training programmes are to be successful. The Economic Committee has laid down an action plan for Singapore to recover from this recession. The policy changes are difficult pills to swallow but we must be prepared to take the full dosage. We must try to bring our operation costs down. We must strive to increase our productivity and to regain our competitiveness. We must work diligently to lay the foundations upon which our local entrepreneurs can excel. In conclusion, Mr Speaker, Sir, may I thank the President for his Address and especially the fact that the Government has accepted, in principle, the policy recommendations made by the Economic Committee. It is my hope that the Government after further deliberations will not only accept the recommendations in full but also to improve on some of the recommendations. With that, Mr Speaker, Sir, I give my support to the motion standing in the name of the Member for Changkat. 3.56 pm”
“The NWC has helped to stabilize our industrial relations as it provides for orderly annual wage increases on a national basis. But has the NWC already served its usefulness? Although meant to be recommendations, employers, by and large, usually will implement the NWC recommendations. This is shown by the annual Labour Ministry's NWC surveys which normally show more than 90% of employers implementing the NWC recommendations. The negative aspect of the NWC recommendations is that it discourages companies, especially multinationals, to pay higher wages that they can easily afford and compels many companies, especially local businesses, to pay high wage increases that they can ill afford. The recommendation that the NWC should avoid quantitative wage recommendations will not be a popular recommendation. But if the NWC is to continue its role unchanged, our businesses cannot be expected to regain their competitiveness in the world markets. Next, on manpower training. The Economic Committee has also highlighted the fact that our workforce is less educated than the workforces in the USA, Japan and even Taiwan. Currently, about 53% or more than half our work force have, at most, primary level education compared to 15% in the US, 35% in Japan and 45% in Taiwan. In order to upgrade the educational level of our population, various training schemes have been initiated. Special mention should be made of the BEST programme jointly administered by the NTUC and VITB. About 60,000 workers have so far benefited from BEST. Industry groups have also been encouraged to provide SDF-sponsored industry-based training tailored to their specific needs. Training programmes have, for example, been started by Shatech for the hotel industry and IBF for the banking and finance sectors.”
“However, based on the recommendations made by the Committee on wages, the Committee has recognized the fact that part of the reason for higher labour cost lies in our wage system. The recommendation for the review of our wage system is highly commendable but full of pitfalls. Let me elaborate. Firstly, the Economic Committee highlighted the fact that salaries for Japanese males increased only to the age of 45-49 years after which they begin to decline. I am not too sure why the Economic Committee highlighted on Japanese males. I do not know what happened to the females. Japanese male employees over the age of 65 earn only 60% of the salaries of the 45-49 age group. The Economic Committee recommended that Singapore should move towards such a system as it encourages employers to employ older workers. This is, however, a drastic change to our present wage system which is basically seniority based, ie, older workers expect higher wages. I am sure the Member for Anson will agree to this. Even if the unions accept this recommendation, they will have a hard time trying to convince the Members of its advantages. A more practical approach and one that deserves our full support is to consider the recommendation that both the employer's and employee's CPF contributions should be progressively reduced after the age of 45. This will help employers to reduce costs and enable older employees to have higher take-home pay. A more important recommendation made by the Economic Committee is that the NWC should cease issuing quantitative annual wage recommendations. This is also another major change as the NWC since its inception in 1972 has made annual quantitative recommendations.”