Yee Chia Hsing
Singapore
“Thank you, Mr Speaker. My question is for Minister Gan Kim Yong. It is reported in many countries, including the US and the UK, that due to fear of the virus, even people with serious health emergencies such as heart attacks or strokes are not going to the hospitals.”
“Thank you, Speaker. First, I would like to declare my interest as a director of two SGX-listed companies. My work also requires me to advise SGX-listed companies.”
“Chairman, I would like to echo Ms Joan Pereira's call for arts to be accessible to all, regardless of socio-economic status. Besides looking at the issue from the perspective of consumers of arts and culture, is MCCY also looking at the issue from the perspective of the providers of arts and culture?”
“Chairman, early this year, Senior Minister of State Lam Pin Min mentioned that the Government will spend more than $1 billion to accelerate the completion of the island-wide cycling network.”
“Chairman, Singapore acts as a regional air and sea transport hub. We have managed to use Singapore's geographical location to our advantage, and over the years we have become a major regional and international hub through bold vision and thorough planning.”
“Thank you, Chairman. I hear from Senior Minister of State Janil that in 10 years' time, almost 100% of the new cars sold will be electric vehicles or clean energy vehicles. But now we are at 0.1%. How do we move from 0.1% to 100% in 10 years?”
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“As a responsible and prudent Government, we must maintain a balanced Budget and ensure that the Government's revenue can match the increasing social and health spending as our population ages. As Minister Heng mentioned in his speech, we may have to raise revenues through new taxes or raise tax rates in future to meet the rising domestic expenditure needs. On this front, I would like to talk about our stamp duties related to residential properties, which I believe there is room for us to be more progressive. Buyers of residential properties are required to pay Buyer's Stamp Duty. There is also Additional Buyer's Stamp Duty (ABSD), which was introduced in December 2011 and revised upwards in January 2013 to cool the residential market. Sir, I have two suggestions for consideration. First, I would like to suggest replacing ABSD with a tiered Buyer's Stamp Duty. I understand that the objective of ABSD is to moderate demand for residential properties and to promote a stable and sustainable property market. Private residential prices in Singapore have slipped for 13th straight quarters and have fallen by 3% last year. Because the ABSD scheme is seen as a cooling measure, it is viewed as a temporary measure which will be removed when the market has indeed softened. But we always run the risk that the property market may spike up when ABSD is removed. Sir, to solve this conundrum, my suggestion is to remove ABSD for Singapore Citizens and add an additional tier to the Buyer's Stamp Duty. ABSD for non-citizens should remain but be adjusted to take into account the revised tiering of Buyer's Stamp Duty. Allow me to explain. As it stands, the rates for Buyer's Stamp Duty are computed on the purchase price or market value of the property, whichever is higher.”
“Mr Deputy Speaker, Sir, I rise in support of Budget 2017. First of all, I would like to say that I am very happy to see Finance Minister Heng Swee Keat back in the Chamber delivering his Budget Speech. The past year must have been difficult for him and his family and I wish him good health for many years ahead. Sir, last year, our economy grew by 1.8%, which is above an earlier forecast of 1% to 1.5%. However, we have to accept that as a developed economy with labour force constraints, our target long-term growth of between 2% and 3% will be slower than what we have experienced in the past. Against a backdrop of slower growth and thus flat Government revenue, our spending on infrastructure, health and social support has increased and will continue to increase significantly, especially as the Baby Boomer generation is reaching their 60s and 70s. Minister Heng mentioned that additional investment in our public transport infrastructure is expected to cost the Government more than $20 billion over the next five years. Our annual healthcare spending has more than doubled over the past five years to around $10 billion a year. Over the past few years, we have also introduced and strengthened various social support schemes, all of which are necessary and welcomed by residents. For instance, the Silver Support Scheme, which gives up to $750 every three months to the elderly, has really helped reduce hardship for some of our most vulnerable elderly staying in 1- to 2-room flats. The truth is that our overall expenditures will continue to grow with an ageing population and we have to prepare for it.”
“My third suggestion is also regarding staffing, which is a big issue, as many childcare centres have trouble hiring staff. I observe that currently, childcare staff is relatively young. I would like to ask ECDA if it can consider doing a human resource study to see how to reach out to those who have been retrenched or may be considering a mid-career change to join this industry. This will be a win-win situation as it will help alleviate the manpower shortage faced by childcare centres, as well as help our middle-aged workers. To conclude, we need to do everything we can to provide the high-quality early childhood care and education that every child deserves. With that, Mdm Speaker, I support the Bill.”
“Mdm Speaker, this Bill aims to raise the overall quality of early childhood care and education through a harmonised regulatory framework for kindergartens and childcare centres. I welcome this Bill as it seeks to ensure higher and consistent standards across the early childhood care education sector. As the number of young families having both parents working becomes increasingly common, the need for childcare or infant care becomes more urgent. I am glad that this Bill will give young parents assurance that the safety and welfare of their children will be protected and that the childcare centres their children attend will be professional and of high quality. Apart from the various monetary incentives the Government has provided, I think this is a right step towards providing a more holistic approach to encourage and help young couples start their family. Mdm Speaker, I would like to offer three suggestions for consideration. First, I would like to suggest that ECDA works with MOE to co-locate primary schools and childcare centres. The main benefit will be that young parents who send their elder child to school need not make a separate trip to send their younger child to a childcare centre. These parents will also have the option of engaging the school bus service to send both children. My second suggestion is regarding training. Early childhood educators must attend an ECDA-recognised course or diploma programme conducted at ITEs, polytechnics or ECDA-accredited training agencies, such as the SEED Institute or MMI Academy. To further alleviate the shortage of childcare staff, can the Ministry consider setting up a new institution to train more early childhood educators?”
“Madam, on the conversion of a taxi fleet to PHC, I believe that if we can allow the taxi companies to convert the taxi fleet, it lowers their cost and it allows them to lower the rental that they charge to taxi drivers. Can we then offer the taxi companies an option where we will let them pay a conversion fee to cover the difference in the COE, as well as any administrative expenses that LTA has incurred to do the conversion?”
“As such, I would like to explore if it is possible to allow taxi companies to convert part of their taxi fleet into private hire rental vehicles. This will allow for better utilisation of their fleet. Madam, this Bill gives additional enforcement powers to regulate private hire car services. I believe we have to think about what happens next. Hopefully, we can minimise the impact on taxi companies and their drivers. With the implementation of the requirement for drivers to have vocational licence starting from July this year, I am concerned that the number of private hire drivers may fall. Will this cause Uber and other operators to offer even more incentives to their drivers and commuters? How will this affect our traditional taxi companies and their drivers? Madam, while I know it will be difficult to have some form of regulation which limits the losses which operators, such as Uber or Grab, may incur in their bid to grow their market share, a parallel can be drawn with European soccer where its governing body, UEFA, has introduced financial fair play rules in 2011. I am not against competition, but I am sure everyone agrees that competition should be fair. We have seen how competition can help drive innovation and prevent complacency by the incumbents. Ultimately, we hope that sustained competition can help to improve service standards. However, we need to be aware of the entire business ecosystem and its effects on all stakeholders. Notwithstanding my comments, Mdm Speaker, I support the Bill. 6.23 pm”
“In 2016 alone, Uber raised close to US$5 billion in equity and debt to fund its expansion. Despite our preferred stand of adopting a balanced, light-touch regulatory stance that Second Minister Ng Chee Meng has pointed out, our local players, with less financial clout and operating in a much smaller market, have definitely been affected. Mdm Speaker, I accept that disruption in this new age of technology may be inevitable but regulators need to plan ahead. I believe there are good policy reasons to limit the growth of operators, such as Uber and Grab. What if they collapse under the weight of their huge losses only after wiping out our local players? If that happens, commuters will be the ones who suffer. We should allow more flexibility in our market to adapt to these market disruptions. Hence, I am very happy that LTA has removed the requirement for taxi drivers to clock a minimum daily mileage of 250 km as there is no such requirement for private hire cars. Another anomaly is that taxi companies have to meet the Taxi Availability standards introduced in 2013 in order to grow their fleet size, which is capped at 2% per annum, but Uber and other private hire car services have increased their fleet size at an aggressive rate without any restriction during this period. The number of rental cars has increased from about 19,000 at end-2014 to more than 51,000 by the end of last year, far surpassing our taxi population of 27,500. Even if we remove the 2% cap on taxi population growth, I am afraid it has become a moot point as, in a Straits Times article on 15 January this year, it was reported that there are signs that the market has hit saturation point with more than 2,000 unhired private hire vehicles and taxis.”
“Mdm Speaker, part of this Bill seeks to add enforcement powers to regulate private hire car services. Since Uber and Grab entered the Singapore market in 2013, we have witnessed a shift in commuter behaviour, as well as a great number of people becoming freelance drivers driving private hire cars. Many tech-savvy commuters have used these mobile apps and, coupled with sweeteners, such as promotional discounts and the absence of midnight surcharge, this development has been good news for commuters. However, there are other aspects of the transport ecosystem we have to consider. Many taxi drivers I have spoken to have indicated that their monthly income has taken a hit due to competition from Uber and Grab. Some of them are not so tech-savvy and are not able to switch to driving Uber or Grab, which requires the use of smart phone features. As commuters increasingly shift their preference to these private hire car services, the traditional taxi drivers have picked up fewer passengers. Many have thrown in the towel and, worse, some are unable to find other jobs as replacement. In fact, several countries and cities have applied certain restrictions or banned Uber and other similar services due to the severe market disruptions they have caused. Car rental companies have also lamented that Uber's affiliate, Lion City Rental, is charging lower than traditional market rate. Backed by large funds, Uber is focusing on growing its market presence with no consideration as to whether its operations are profitable or not. Madam, allow me to share some of Uber's financials. Uber's losses in the first six months of 2016 was roughly US$1.4 billion and it is projected that its full year loss would hit a record US$3 billion.”
“Once again, thank you, Deputy Speaker, Sir, for giving me the chance to share my thoughts on this, and I reaffirm my support for the Bill.”
“I reminded the audience that we should be mindful that we have non-Chinese volunteers and residents amongst us, so we should also sing some non-Chinese songs. Similar to the recommendation for Elected Presidency, I am toying with the idea that after every five Chinese or Hokkien songs, the next singer must sing English, Malay or Tamil songs. Deputy Speaker, Sir, it is human nature that we generally feel more comfortable with people who have more in common with us. In a recent television documentary "Regardless of Race" hosted by Member Janil Puthucheary, there was one scene where Janil visited Townsville Primary School and asked some school children what race is their best friend. It is telling that, for most of the children, their best friend is someone of the same race, thus showing that even from a young age, it is natural for someone to feel more affinity with another person of the same race. One of the amendments proposed in this Bill is to provide for a Presidential Election to be reserved for a community if no person belonging to that community has held the Office of President for five presidential terms. Page: 111 Deputy Speaker, Sir, our President is a symbol of our national identity, representing all Singaporeans, and multiracialism is an important aspect of Singapore's social fabric and remains fundamental to our unity and survival. I agree with the introduction of the hiatus-triggered mechanism to ensure minority representation in our highest office. However, is a gap of five presidential terms, which is about 30 years, considered too long? I hope the Government would monitor public sentiments in this respect and to make the appropriate adjustments in future, if necessary.”
“Thank you, Mr Deputy Speaker, Sir, I rise in support of this Bill. This Bill relates to the proposed changes to our Constitution, which include, amongst other things, having a mechanism to ensure multi-racial representation for the Office of the Elected Presidency. Allow me to share two everyday examples where, without active intervention, minority representation would not be achieved due to our demographic of having more than 70% Chinese population. Every now and then, there would be articles on what should be Singapore's National Dish. Based on Internet searches, Hainanese chicken rice is the unanimous first choice, followed by chilli crab in second place, and laksa in third place. Every time I come across one of these National Dish articles posted by local food bloggers, I cringe a little. Hainanese chicken rice and chilli crab are typically non-halal dishes. I wonder how our Muslim friends and residents would feel after reading these articles. Imagine then, as a nation, we would have to vote for one dish as the National Dish. I am afraid that it is likely to be either Hainanese chicken rice or chilli crab. Nasi lemak or roti prata would not have a chance. How then would our minority citizens feel? I am glad that we do not have to vote for one National Dish as it would be impossible for one dish to reflect the rich diversity of our multiracial, multicultural society. Closer to home, at my constituency in Nanyang, many of the grassroots volunteers and residents like to sing, and I realised that many of them choose to sing Chinese or Hokkien songs when we have karaoke at grassroots events. At a recent dinner, after listening to several Chinese and Hokkien songs, I was also asked to sing on stage. So, I chose an English oldie "Always on my mind".”
“Yes, they can stand, but how it works is that, currently, because they are appointed, the diversity helps in giving a different perspective and a more rounded decision-making. But if they stand for election, some of these people, they may not be able to, for example, give a very rousing speech. So, they may not end up being elected. So, that is my point to the WP.”
“I would like to ask the WP this: currently, for the CPA, there is a certain diversity in the background. We have senior civil servants, we have retired, very well-regarded judges. So, this diversity of background helps. In the WP's proposal, when it is just an election, how then do you get the kind of diversity, such as you have the people with business experience or civil servants who know how the Government runs, judges who know how to interpret the law? I think that is very important.”
“Mr Deputy Speaker, Sir, I would like to thank the Minister of State for his clarification. It appears that SPRING will only wait for CASE to refer cases where unfair practices are repeated many times before investigating the errant retailer. In the case of renovation contractors, the sums are very big and it could be $30,000. Can we sort of lower the bar so that if there is clear evidence of unfair practices where the contractor provides very poor service, then we do not wait until many, many people suffer from this before SPRING investigates?”
“I hope that SPRING will look into the possibility of publishing a list of blacklisted renovation contractors together with their contact details such that consumers have more information when deciding on which renovation contractor to appoint. Hopefully, this will also have a deterrent effect against unfair trade practices. Mdm Speaker, please allow me to speak in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Speaker, I thank MTI for introducing this Bill. In the past year, I have received many complaints against renovation contractors from my residents. Most of these complaints are about contractors not keeping their promises, bad services and delaying the completion date. Some contractors even become uncontactable after receiving the down payment. The registered capital of some errant businesses is only $2. It is futile even if the resident brings them to Court and wins the suit. These businessmen can simply register another company with a mere $2. I hope SPRING can consider publishing a blacklist of these errant businesses on the Internet. Besides the company name, it is best to make public their contact details on the Internet as well, so that consumers can stay away from these businesses. (In English): Mdm Speaker, in conclusion, I would like to wish SPRING every success in its new role, and I reaffirm my support for the Bill.”
“Mdm Speaker, I rise in support of the Bill and would like to thank MTI for introducing the proposed amendments to the Consumer Protection (Fair Trading) Act (CPFTA). The proposed appointment of SPRING to be the administering agency for the Act, with powers to investigate and require errant retailers to publicise that they are under injunction, will help to strengthen the measures that may be taken against rogue traders and service providers engaged in unfair trading practices. Previously, CASE primarily depended on mediation between the two parties. CASE has limited powers to investigate and punish errant retailers or service providers. In particular, I am very happy that the Bill also covers renovation contractors. During my Meet-the-People Sessions (MPS), I have received several complaints from my residents against renovation contractors who have collected substantial sums of money and either did not do what they promised or did such a poor job that the flat is in a worse condition than before the renovation. Upon receiving complaints, these contractors would then be uncontactable. Some residents who pursue their case against these contractors in the Small Claims Tribunal would find that the company is only a $2-company with very little assets and the contractor could easily set up another $2-company under another trade name. Unfair practices in the renovation industry are especially painful for consumers because the sums involved could run into tens of thousands of dollars and it may cost as much to fix a poorly renovated flat as doing everything from scratch.”
“Mdm Speaker, I would like to just clarify on the warranty period. What is the actual period? Also, when we get the replacement car body and bolster, when we reset the clock, is it just resetting the clock on the car body and bolster? The whole machinery and engine are also disassembled and assembled on the new car body. Does the reset of the warranty also apply to the mechanical parts? The other question I have is: are there any lessons, with the benefit of hindsight, on whether LTA should have given timely information as and when the issue cropped up?”
“I thank the Senior Minister of State for the answer. I have two questions. One, which agency is responsible for ensuring the proper maintenance of the exhaust system? Two, many residents want to have more coffee shops, but few residents understand the inconvenience of staying above the coffeeshop units. Some of the visible damage is repaired post the fire incident but residents have actually given feedback that, for example, the floor tiles, it may not be visible right after, and the cracks may appear like six months or a year after. Will they then still be able to claim from the coffee shop tenant?”
“So, over the years, while Cat C for commercial vehicles has contributed quota to Cat E, most of the COEs under the Cat E were used for bigger passenger cars. While drivers of bigger passenger cars have alternatives, such as taking public transport or switching to a smaller car, there are no alternatives available for commercial vehicle users. Secondly, the Early Turnover Scheme was meant to benefit commercial vehicle users, but because the number of Cat C COEs available for bidding was so small, we ended up squeezing supply, pushing up the price and then giving them a discount to the high price. Third, because of the factors mentioned above, even though our economy has grown substantially since 2008, the number of commercial vehicles on our roads has remained constant at around 150,000 over the past seven years. As our economy grows, it is logical that the number of commercial vehicles must grow in tandem to support our businesses. To help businesses and for the reasons mentioned, I urge MOT to do a comprehensive review of the way COEs for commercial vehicles are determined. Meanwhile, we should consider adjusting the formula such that a higher percentage for the Early Turnover Scheme is deducted from Cat E.”
“Mdm Chair, business owners have complained about the high cost of Category C or Cat C COEs for commercial vehicles. In fact, for the first bidding in February and March this year, we have a perverse situation where the price of Cat C COEs is higher than Cat B COEs for bigger passenger cars. The main reason for the high cost of Cat C COEs is that the quota set aside for Cat C is reduced by the number of vehicles registered under the Early Turnover Scheme, which encourages commercial vehicle owners to switch to cleaner models. The high cost of COEs for commercial vehicles not only affects companies but even sole proprietors, such as hawkers and wet market stall-holders. One stall-holder selling fish at the wet market told me that he is going to retire once the COE for his van expires because a new van would Page: 29 cost $80,000 to $100,000 and he will not be able to recoup the cost selling a few "ikan kuning" for $3. For the current quarter, there should have been more than 4,000 Cat C COEs. However, as 90% of the COEs used under the Early Turnover Scheme are deducted from the Cat C quota and there are more than 3,000 vehicles registered under this scheme, the number of Cat C COEs available for bidding is substantially reduced to less than 1,000 for the quarter; or about 300 per month. If we do not adjust the current formula, we may even end up with a situation where there may be no Cat C COEs available for bidding when there is a high number of vehicles registered under the Early Turnover Scheme. How can we justify a deviation from the formula? First, quotas for Cat E draws from Cat A to Cat D equally. Currently, each of Cat A to Cat D contributes 10% of their quota to Cat E. This percentage has been reduced recently but was as high as 25% in 2012.”
“I also hope MOT will look into whether financial or other penalties should be imposed on SMRT and its management. Safety Protocols for MRT Operations”
“Chairman, on 22 March this year, two MRT maintenance staff were hit by a train near Pasir Ris MRT station and suffered fatal injuries. Several Members in this House, including Minister Khaw Boon Wan, Minister Yaacob Ibrahim and Minister Masagos Zulkifli have visited the families to extend their condolences. Many questions popped up in my mind when I heard about the incident. I thought, "How can this happen? How can a train hit the two staff who were walking in the second and third position in a single file on a designated walkway? Are there sufficient safety procedures? If not, why not? If yes, why were they not followed? Do we need 15 people on the tracks? Is it right to put trainees on the track during train operating hours? Is safety compromised because SMRT is pushing for shorter downtime?" Over the next few days after the tragic accident, further details emerged and more questions came to mind, "Why was the initial account of the incident different? How can we expect our maintenance crew to do a good job if they think their lives might be in danger?" Chairman, for a system that runs on tracks, it is not acceptable to have any serious injury, especially fatal ones. Such incidents not only undermine public confidence in our train operators, but I am sure it would have deeply affected staff morale at SMRT and also affect its attractiveness as an employer for people looking for jobs. I understand that SMRT has completed its internal investigations into this incident and the report is being reviewed by an independent panel. Hopefully, this will answer the many questions which I have mentioned. MOT should take a comprehensive review of how our train operators carry out their maintenance work to ensure that such unfortunate incidents should never again happen.”
“Mr Chairman, businesses, in particular SMEs, are being affected by global factors, such as a slowdown in China, as well as domestic factors, such as high business costs. During the debate on the President's Address, I spoke on the slowing economy. For instance, annual container volume handled at our ports for 2015 was 8.7% lower than for 2014. The numbers for this year continue to paint a gloomy picture. Container volume handled in the first two months this year is 9.7% lower than for last year. In the face of these challenges, business confidence among SMEs has been slipping. The latest index by SBF and DP Information Group to measure business sentiment amongst SMEs showed that SMEs do not expect any growth during the next six months, with the Index at its lowest since it was first published in 2010. Can MTI share what is the Government doing to help companies ride through this difficult period? Transformation – SMEs”
“Mdm Chair, our manufacturing sector's share of GDP has declined over the past few years. Last year, notwithstanding that GDP for the whole economy has increased by 2%, the manufacturing sector has contracted by 5.2%. The three sectors which have shown the highest growth rates are: (a) wholesale and retail trade, (b) finance and insurance and (c) information and communication. Given that Singapore has progressed to be a more services-oriented economy, I would like to ask what is the Government's view on the importance of manufacturing to Singapore's economy and what is our approach towards developing and helping the manufacturing sector. In the face of intensifying competition from the region, how can we help key manufacturing sectors transform, innovate, grow and compete globally? Global Trends”
“Are we going to be like a pack of cards with just four aces? Are we going to be faced with slower growth? Can our children grow up in a Singapore where they will be able to follow the rainbow and pursue their dreams? Budget 2016 seeks to transform our industries to strengthen our expertise and drive growth through innovation. New schemes were introduced to promote the use of automation and aim to help our SMEs "scale up". I cannot crystal ball and say what our next engine of growth will be. But if we look back at the four previous engines of growth – trade hub status, manufacturing centre of the world, regional finance centre and tourism – a common thread runs through them. Each of these has to do with Singapore opening itself to the rest of the world, and this we can never stop. Whether for companies or people, Singapore must continue to be a beacon for the best and brightest to set up their base here and to call Singapore home. We cannot afford to turn xenophobic or to be inward-looking because if we do, Singapore and Singaporeans will be the worse for it. Mr Deputy Speaker, on this note, I support the Budget.”
“Mr Deputy Speaker, I wish to commend the Finance Minister on his inaugural Budget speech, which I thought was comprehensive and balanced. Today, I wish to talk about Singapore's engines of growth. The Finance Minister began his speech by sharing some history of the first Budget speech by Mr Lim Kim San in 1965. Allow me then to share some history. Page: 99 From 1819, when Stamford Raffles first set foot on our shores until today, Singapore can be said to have four main engines of growth. For over 100 years before our Independence, Singapore has made use of its good location to act as a trade hub, connecting Southeast Asia to the rest of the world. This is our first engine of growth. After Independence, we developed manufacturing as our second engine of growth. We became a major ship building and oil refinery centre. We reclaimed swamp lands in Jurong to create the first industrial estate and attracted many MNCs to set up factories here, creating jobs for many of our citizens. Our third engine of growth was the development of Singapore as a regional financial and wealth management centre. We moved towards electronic trading of shares and removed estate duties. And we gave attractive incentives to foreign financial institutions to come to Singapore. The increase in the number of players pushed our local banks to also up their own game, providing better service to all. With the revitalisation of the Marina Bay area and the opening of our two integrated resorts, we gave a further boost to tourism, our fourth engine of growth. I am sure Marina Bay Sands, with its spaceship rooftop, is one of the most iconic in the world. People see a photograph of the Sands SkyPark and know this is in Singapore. Like many Singaporeans, I wonder what is next.”
“Currently, there is a situation where the company buys the VPC for a location in Changi but the driver stays in Jurong. Another company may have bought the VPC in Jurong but the driver stays in Changi. Can we not have a matching system where they can just swop the VPC? Because currently, on its own, the company would not have the resources and the network to realise that there is an opposite match.”
“SMEs by virtue of their smaller size are naturally less productive than bigger corporates and less likely to achieve productivity gains as they lack the economies of scale. But just like Singapore, small can be beautiful. On this note, Mdm Speaker, I reaffirm my support for the Motion. Page: 64”
“The labour force participation rate for women have increased from 56.5% in 2010 to 60.4% over the past five years, while the labour force participation rate of those aged 55 to 64 have increased even more from 61% to 69.5% over the past five years. Anecdotally, nowadays, we are more likely to see locals rather than foreigners working in a variety of jobs, such as petrol pump attendants or in food courts. Our SMEs are certainly facing tough times and it is essential we help to keep them afloat in this testing period. Levies were intended to equalise the wage levels between local hires and foreign workers, but under difficult conditions, can potentially jeopardise the very survival of these businesses. I recognise that we cannot maintain a low-skill, labour-intensive economy in our next chapter of growth for Singapore. However, if we do not help these SMEs weather the oncoming storm, they may no longer be around to tap on opportunities for growth when the economy recovers. Let us not forget that every successful business was once small and I believe we should have the business environment to let a thousand flowers bloom. As we face a slowing economy, I would also like to urge the Government to review the quantum of foreign worker levies and hope to see some room for reduction. This will certainly allow more breathing space financially for our SMEs. On the backdrop of such developments, I think it is timely that the Committee on the Future Economy has been set up to look into how we can continue to keep our economy competitive, so as to create good jobs and opportunities for our people. I hope the Committee can also consider the struggles faced by SMEs during their review.”
“While it is too early to determine if we are indeed facing a full blown recession, looking at the figures and also the sentiment on the ground, I think now is an appropriate time to make the necessary adjustments to help Singaporeans, especially our SMEs, tide over this uncertain and potentially difficult period. Mdm Speaker, in the course of my work, I have many opportunities to speak to owners of SMEs who share with me the difficulties they face. Many of them tell me about the rising cost of doing business over the past few years from rental costs to the cost of COEs for goods vehicles. Another common area of feedback I receive is the manpower shortage and that SME owners cannot find local employees to work for them. We have to recognise that some locals shun certain industries involving manual labour or shift duties outside normal office hours. One resident, who is a small business owner in the construction industry, came to seek help at my Meet-the-People Session (MPS) as he is facing cash flow problems. Business has become slower and his own customers are taking longer to pay him. As such, his monthly foreign worker levy contributions have become an increasing strain on his operating cash flow. Page: 63 To reduce Foreign Worker Dependency, we have been increasing foreign worker levies progressively over the past few years. In the construction industry, the foreign worker levy for a basic skilled worker can be as high as S$950 per month. These are rates typically paid by sub-contractors who do not have Man-Year Entitlement. Mdm Speaker, the current levies were set in better economic times when businesses were in a better position to absorb the increased costs. Indeed, businesses, especially in the service sector, have responded by hiring more locals.”
“Mdm Speaker, I rise in support of the Motion to thank the President for his Address. The President spelt out five key areas to be achieved in this term of Government. One of these is to renew the economy so that Singapore will always be a place where our children can chase rainbows and fulfil their aspirations. As a father of two, I too hope that my own children can fulfil their aspirations here in Singapore rather than abroad so that I can see them more often. The Committee on the Future Economy has been set up to develop strategies to ensure Singapore remains relevant and competitive and through SkillsFuture, we hope to prepare our workers for the jobs of tomorrow. Today, I will be focusing on the slowing economy and the challenges faced by Small and Medium Enterprises (SMEs). The General Election last September was the first since Independence which saw all seats being contested. The people of Singapore turned out to vote and have given this Government a strong mandate, and that shows the confidence they have in us to steer the country through thick and thin. Mdm Speaker, 2016 is unfortunately beginning to feel like a hangover after our SG50 celebrations last year. Recent data shows that on a year-on-year basis, our non-oil domestic exports fell 7.2% in December. The December reading of the Singapore Purchasing Managers' Index which measures the economic health of the manufacturing sector has also shown six consecutive months of contraction. Annual container volume handled at our ports for 2015 was 8.7% lower compared to the year before. These figures which I have quoted certainly post a gloomy outlook for Singapore in the year ahead.”