Yee Jenn Jong
Singapore
“So, can the Minister of State confirm whether the gates are considered as doors and whether they meet the BCA Code? Finally, the residents that I have communicated with in this DBSS, have complained that when they took up the design issues with the developers, they were told, and I quote, "Everything approved by HDB".”
“I thank the Minister of State for the reply. In view of the frequent occurrences of algal blooms in the past and it has become almost an annual affair, are there studies to also see if it is perhaps due to the reclamation works or other projects affecting the environment either by Singapore or by our immediate neighbours?”
“Thank you, Madam. I thank the Senior Minister of State for the answer. First of all, condolences to those who have lost their loved ones at the recent Lufthansa Germanwings incident. I would like to confirm if this multi-layered cockpit security applies to all Singapore-based airlines, including the budget airlines?”
“I thank the Minister for the reply. Just a supplementary question. I would like to check if our Government agencies have conducted studies on how Singapore's hedging product market compares to those in other countries and also, especially on the usage by our companies.”
“Thank you, Madam. I agree with the Minister that the pre-school sector is fragmented and I support the idea of consolidation. My question is, can an application for POP be from a group of operators banding together, rather than from a single operator? This may speed up the process of consolidation.”
“Is there a way for the landowner to be given an indicative value of the land before the request is made for the Government to acquire it? Is there any cost the landowner needs to pay if such a request for indicative value is allowed? And what will happen if the eventual price differs significantly from the indicative value?”
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Every one of 234 lines we hold for Yee Jenn Jong, in date order, each linked to its source. Free to read, in full, without an account. Page 4 of 5.
“I thank the Deputy Prime Minister for the answers. The Deputy Prime Minister said that there have been 81 reports since February 2011, of which 86% were investigated. I would like to get a sense of how this compares to the total number of cases that were investigated in the same period. What sort of awareness programmes have been put in place to let civil servants know that they can whistle-blow on wrong practices that they see in the Civil Service?”
“But the basic framework of the licence will not change. 5.00 pm”
“And there will definitely be consultations because that will be a major change, on how it is that we can license overseas sites which operate as online news sites. That is something which I think we need to consult because it is a complex issue and we will come back to Parliament for a thorough debate on whether or not we will have a framework to deal with overseas sites. But we must agree that we have to hold them to the same responsibilities as we do for foreign newspapers which operate in Singapore. We do not allow them to meddle in local politics. We have to recognise that the environment has changed. It is about news. If we expect high standards in the physical world of news reporting; why are we not expecting the same standards of those who are reporting news online? It must be. Secondly, in no way does it interrupt innovation or cause businesses to have great uncertainty about what they are doing in Singapore. As I have mentioned in my reply, continue to do what you are doing now. As Acting Minister Tan Chuan-Jin said, keep calm, continue posting, nothing has changed. We will monitor the situation because we want to make sure that this framework is well understood and people know what we are talking about. At the end of the day, it is really to protect Singaporeans and Singaporean consumers who read news online. It has been four to five months that we have now been in discussions with the 10 sites; it is also for us to understand the concerns of the industry. In fact, we consulted them before we implemented the new licensing framework and they had not raised any concerns. Now, with the implementation of the licence, Page: 83 we want to understand even better and we have been meeting them and we will do so until we can understand all their concerns.”
“I am getting to the question shortly. Some of the sites with more than 50,000 unique IP visits question why they are not being regulated. Companies do not like these ambiguities. My question to the Minister is: does the Government have plans to amend their rules to add in this clarity so that it can allay the concerns of the business community? And will MDA consider deferring these regulations until there have been proper consultations with all the key stakeholders before we come back to this issue again? Assoc Prof Dr Yaacob Ibrahim: For the last question, the answer is "no". We are moving ahead with the legislation. In terms of consultation, as I mentioned in my reply, this is not a major change. It is a tweaking of the Class Licence Scheme. And if the Internet community does not understand, I would be very worried. Look carefully – the content standards remain exactly the same. They still have the take-down requirement within the Class Licence Scheme. Page: 82 Now, there is a stipulation of 24 hours. As I have replied to two other Members, we are flexible about that. There is now a performance bond – again, as I have replied to other Members, we are flexible about that. Why? Because we must agree, news is important because it helps us to make informed decisions. If it is not done responsibly, it could have disastrous effects. We have to hold the online news sites to a slightly higher standard, higher responsibility compared to the Class Licence sites. It is a tweaking of the Class Licence Scheme. It is not a major change; it does not need powers of Parliament; we are not amending the Broadcasting Act. We will do it next year if we have changes, as I mentioned in my reply.”
“Yes, the second reason is that the powers given to MDA are too broad and ambiguous. There is nothing to say what constitutes news, for example, education news, finance news. Some sites are saying —”
“Thank you, Mdm Speaker. I would like to first declare my interest as an active participant in the infocomm industry. The local infocomm start-up as well as the global Internet giants have all aired their concerns regarding these regulations and on the impact of the new rules on innovation, setting back the Government plans to develop and attract investments in the infocomm industry. As an active participant in this industry, I believe the companies have valid concerns and perhaps I just want to share why and I will come to my supplementary question. Two reasons, for example, would be that the new regulations came about rather abruptly with apparently no consultation with the key industry players or even Parliament. So, this does erode some confidence, especially in the international community, about how the Government would implement new rules —”
“Thank you, Madam. In his replies to my two PQs last year on this same issue, the Minister had spoken on how we could use positive actions and commercial pressures on agricultural companies. The Minister spoke about asking companies here with operations in Indonesia to open up their operations to verify for sustainable and responsible way of doing business. I would like to ask: what is the progress? How many companies here have already been approached since last year, and what were their replies to the Minister? Page: 44 I would also like to know if we will soon be able to see independent verifications and labelling on agricultural products that are susceptible to the use of burning for land clearance. Lastly, I would like to ask if it is possible for us to mobilise this effort to extend to other ASEAN countries.”
“The first point was the Minister mentioned that the tenderers had three weeks to seek clarifications —”
“I have two questions for the Minister. One, the Minister said that the tender period was opened for three weeks and that the tenderers could seek clarifications. It was reported in The New Paper that one of the tenderers said that, "After paying more than $200, we simply got a thin stack of documents and the Town Councils were unable to provide us with more information." So, did MND interview the other four companies when they were doing the review? The other clarification I have is that the Minister said that AIM is not an ordinary $2 paid-up capital company and it has helped to develop the TCMS systems previously. Now, this does not gel with my own personal information. From 2000 to 2003, I happened to work with Horizon and I am pretty aware that they have a town management technology company that claimed that in November 1994, it built the town management systems entirely for the 19 PAP Town Councils. So, I would like to seek the Minister's clarification on this part of the Report which says that AIM had built the systems. What manpower did AIM have at that point in time? What was AIM's role in the first generation system? And, finally, just to make a point. As a person who has been in the IT industry for the last 20 years, I find the Minister's suggestions that we can just buy an off-the-shelf solution for the Town Councils' operations to be impossible.”
“Thank you, Mdm Speaker. Earlier in her reply, the Senior Minister of State mentioned that the community leaders are important to build the bond between the schools and the community. I would like to ask if the Ministry has done any survey to see how many community leaders have actively contributed to the schools that their children are enrolled in, and if it can be a criterion for community leaders to have first made specific contributions to the schools before they are being considered for priority.”
“Thank you, Madam. I would like to ask the Minister of State two supplementary questions. I noticed that there has been quite widespread use of medical officers from non-traditional sources (NTS MOs) in the medical institutions. My first supplementary question is whether there will likely be further significant increases in the use of NTS MOs to supplement shortages in the hospitals, Page: 33 especially to fill up these 20,000 places. And what would be the likely ratio to doctors from traditional sources. My second supplementary question is: what are the measures to ensure that these NTS MOs are sufficiently equipped, both in medical skills as well as the ability to converse in local dialects and languages with our patients, especially since our elderly patients may not speak English.”
“Thank you, Mr Chairman. Just a quick clarification from the Acting Minister. The Acting Minister has said in his speech that the foreign workers will not go significantly above one-third of the total workforce. But during the tea break, I took the Population White Paper and I did some quick calculations. I found that the foreign worker workforce could grow to around 45% by 2030 and it is not difficult to understand this if you look at chart 3.4 of the White Paper, where the foreign workforce growth is growing much faster than the local workforce for the next 17 years. So, my question is: how long can we keep foreign workers to one-third of the total workforce?”
“Madam, I have three clarifications for the Acting Minister. The Acting Minister has said that there are some childcare centres that have innovative practices and ought to be retained. The fact remains that operationally, it has become impossible to operate at fees offered by anchor operators because of the huge set-up grants and operating grants they get. For example, I met this operator who is trained in special needs and wants to set up a centre in a neighbourhood centre but paying $45,000 monthly rent it is impossible for her to be near to the anchor operators' prices. And today in the newspaper, the YWCA director was quoted about the competition for staff from anchor operators, and that is one of the challenges that she faced. Question two is that in considering new anchor operators, I would like to request the Ministry to look at keeping the system open so that you can be bidding for clusters of sites when these clusters are available rather than to fix to two to three anchor operators at this time. The third clarification is that the Acting Minister showed some charts earlier and said that he wanted more mass market options. Now, to solve this problem, one possibility is for the Ministry to define the fee range for these sites and open it up for bidding so that you are actually in direct control of these fees because site availability and the high cost of rental is a huge problem for operators today.”
“After the operating period, the sites can be reopened for bidding again by all. The key advantage of this over the existing AOP scheme is that it allows newer operators who have proven themselves in the market to join in continuously when sites are available. This provides greater diversity of choices. Competition spurs innovation. The current scheme kills competition and freezes AOP players to just a few on the time of selection. It limits choices for consumers requiring affordable fees. Ten centres per tender will allow sufficient economies of scale, and a good operator can win several clusters of sites over time. To speed up more new sites, I repeat my earlier suggestion that the Government can negotiate as main tenant with large landlords of malls and industrial sites with spaces suitable for childcare. It can then open these sites for bidding under this new scheme. It can also turn disused schools and old community centres into mega childcare sites with different operators under one roof. Madam, the Government is spending $3 billion in this sector. I believe this same amount can be used to achieve better outcomes in accessibility, quality and affordability and with greater diversity of choices if we organise childcare as a public good and allow regular open and fair competition by all. Childcare Anchor Operators”
“Madam, I declare my interest as a supplier of services to education institutions. I have previously stated my concerns over the way the childcare industry is organised. The Government has stated that Anchor Operators (AOPs) must be non-profit, non-religious and non-race based. I do not think these criteria are necessary as long as operators accept students of any race and religion and follow strict rules, which I will elaborate. MSF can dictate outcomes. It can define fees and expected quality of services instead of being concerned if operators are race or religion-based or are private entities. With appropriate rules, MOE and MOT have found it acceptable to work with such entities for schools and public transport respectively. The AOP scheme has caused serious imbalance in the industry by loading a few selected operators with huge operating advantages over others. I repeat the proposal I made last year for MSF to revamp the AOP scheme and to make childcare as a public good, with open contest by all. Page: 29 Firstly, available sites can be clustered as a package for open bidding. Each tender can be for around 10 centres, with rental cost tied to what non-profit operators currently pay. Bidders should prove their ability to operate centres well, such as having good track record and being SPARK-accredited. Operators can propose the style of programmes and fees to be charged, but fees should be within an acceptable guideline around existing price charged by AOPs. Once an operator is awarded, it cannot change fees without approval by MSF. To achieve investment payback, operating period can be for a period of say, 10 years, with interim review every three to four years. This is to ensure operators will continue to innovate and provide quality services.”
“Thank you, Madam. I have two clarifications for the Minister. I was watching very intently the lively video of Da Qiao Primary. It shows around eight students to one teacher. This is highly ideal for learning, but I would like to know how MOE is going to implement this in the operating environment of 30 to 40 students in the class. How does this gel with our operating environment today? Page: 162 The second question is that MOE is going to re-introduce 好公民 and other civics learning. How does MOE ensure 好公民 and other moral education and social studies lessons will be conducted by the schools, especially during high-stake examination years? My own experience with my own children shows that they actually did not use the book at all during the PSLE years.”
“Madam, student care services are now in 80 out of some 190 primary schools. It is commendable that MOE has stepped up efforts to have more student care facilities within schools. Student care had been a low priority in the past, and a poor cousin to childcare, which has more attention and funding support. With more dual-income working parents, the demand for student care will follow the rise we saw in childcare. Student care has the potential to be a social leveller by providing homework coaching and lessons, as well as much needed nutrition for children from disadvantaged families. Unlike childcare, there is no general fee subsidy for student care other than for the low income. Also, it is not mandatory for student care teachers to go for training. There is a Certificate in Student Care course but it is not widely promoted or mandatory for centres to have trained staff. Some schools are constrained by space. Student care facilities should be considered as essential school infrastructure and factored into the design of all schools. Schools waiting for such facilities can work with nearby student care centres. MOE and MSF can work together to help secure new facilities if there are no nearby operators. I hope MOE and MSF can work together, just as they are doing now for preschool, to provide better accessibility, affordability and quality in student care. Page: 138 Students with Disciplinary Problems”
“Madam, I declare that I am an Advisory Board member of a Junior College (JC). Observations in this cut are not from that JC. I am concerned with a trend I noted in JC Year 1 promotion examinations, or the promo. There is no universal standard. Some JCs fail more than 50% of students at the promo. There will be a re-test, of which I found that, in some JCs, the number of students retained or left JC after Year 1 is very high. The highest I found is around 200 students in a cohort of 800 Year 1's. Ironically, it is not the JCs that take in the weakest students that have the highest failing rate. Some are mid-tier JCs taking around the 10-pointers. The high failure rate seems not to be about the students' abilities but the standard imposed by each JC. MOE has left schools to decide their promos. Are standards too high in some? Is high examination failure rate consistent with MOE's vision of holistic development? Is there a need for MOE to moderate? I also find that there are many who favour the JC route because it seems more prestigious. I commend MOE for making the polytechnics into a viable and respectable path for the skills-inclined students to be able to enter university. Perhaps, this can be communicated more strongly to clear some biasness that polytechnic graduates will find it hard to enter university, and for secondary schools to engage in guidance and counselling to better explain the JC and polytechnic options to students. Edusave for University Education”
“Madam, while MOE wants every school to be a good school, there is great disparity in results between schools. The highest and lowest medium PSLE T-scores amongst schools last year are 247 and 160 respectively, a difference of 87. Mr Lee Kuan Yew had observed that admission to primary schools is based on the social class of parents. Six out of 10 pupils in six of the top primary schools live in private houses. But it is useful to review the Primary 1 admission system. It is a stressful process for some; shifting house and doing volunteer work to get their children into top schools. I agree that priority should be given to those with siblings already in the school for the sake of convenience. Beyond that, we can consider a system with higher balloting chances for alumni, school volunteers and those living near the school. But it need not guarantee their position over others like in the phase system today. I feel community leaders need not be given priority. Being a community leader for the purpose of getting into top primary schools does not gel with the spirit of community service. With the change, we can have a better mix of students of different social backgrounds in our schools, allowing better integration among pupils. I hope MOE can better spread resources across schools, reduce class size and review the need to centralise gifted students into top schools, then it may not be as much stress over which primary schools to enter. Edusave for All Singaporeans”
“Over the years, we have sorted students finally at various junctures of schooling and branded and banded Page: 90 schools to an extreme. I am for a system like Finland where students of all abilities progress through the same schools and all schools are about the same. However, this may take a while for our parents to accept. We can start with eight such schools, two for each zone. Meanwhile, we can destress PSLE by changing it into a signalling tool and spread students of different abilities across schools. Lastly, I hope MOE can review the DSA system, especially DSA of GEP students into top independent schools. Streaming in Secondary Schools”
“Madam, many see PSLE as a high-pressure sorting examination that determines the future of their children. Some will settle for nothing less than the very top secondary schools whilst others fear their children being placed into undesirable academic streams. The PSLE T-score is used for admission into secondary schools and academic streams notwithstanding the DSA (Direct School Admission) exceptions. I call this a sorting method using a single score to sort students into schools. MOE is currently reviewing the PSLE. There are two ways to view this. The first is to explore how to modify the examinations and results reporting and how secondary schools will use this for admission. Currently, PSLE is held over a few days. There is no consideration for how the child had performed throughout primary school. One can argue, for continuous assessment and add school scores to the T-score. But some will feel that schools would not be objective or results can be reported as grades only, so secondary schools will admit based on PSLE grades, school leaving testimonials, CCA achievements and other results. Instead of being a sorting test, PSLE then becomes a signalling tool. It signals the ability of the child in each subject and the secondary school has the discretion for other consideration. The second way is to do away with the need for PSLE. Last year, I propose for pilot schools with a 10-year integrated programme from Primary 1. This is to cater for parents like myself who do not think it is critical to send my children to top schools and that students of different abilities can mix together. I am happy to note that Mr Laurence Lien and Ms Denise Phua had made similar calls. I appreciate that this is an emotive issue.”
“Madam, most schools in Singapore have class sizes of around 40, while Primary 1 and Primary 2 classes have 30 students. This is large compared to the OECD's average of 21 per class. Page: 84 There are drawbacks of a large class. Each has to deal with more disciplinary and administrative issues. While weaker students risked being marginalised because teachers' time is divided amongst many students, MOE has previously said that "Empirical evidence on the benefits of a smaller class size remains inconclusive". The Brookings Institution notes that large class-size reductions can have significant long-term effects on students' achievement. These effects seem to be largest when introduced earlier, and for students from less advantaged backgrounds. The Tennessee STAR and the follow-up Wisconsin SAGE projects demonstrated the positive effects of smaller class sizes on students' cognitive and non-cognitive outcomes. These effects persisted throughout the school life of the students. Other studies also show smaller classes have benefited disadvantaged students. Class size reduction is not the magic bullet to better students' development. It has to be implemented together with other holistic policies. MOE saw it beneficial to have class size of 25 for gifted students. I hope such benefits can apply to all primary levels. I urge MOE to extend class size of 30 to Primary 3 and Primary 4 and, eventually, across all primary levels. Institutionalise Tuition”
“Thank you, Mdm Chair. I would like to seek further clarification from the Minister about the management of the new hawker centres. I would like to know the basis of which the first centre was awarded to NTUC Foodfare and the second one to the other social enterprise in Bedok. I would like to know what sort of rents these social enterprises are expected to pay to the Ministry and how are they in turn expected to select the hawkers and to pass the rent cost down to the hawkers, and how the prices will be kept affordable. 12.45 pm”
“Thank you, Madam. I would like to seek two clarifications from the Second Minister. First is that I do not think I got a reply to my query as to the update of how the clean energy industry is developing against the stated target of $1.7 billion in contribution to GDP and employment of 7,000 by 2015, which is just two years away. The second clarification is that the Second Minister reiterated that the Government does not subsidise energy use. The Government has, however, found it necessary sometimes to support some industries. For example, in the high-speed broadband industry, it subsidies infrastructure which, in a way, is bringing down the cost to consumers. Germany may have scaled down the FIT support, but it had used FIT to jump start the solar industry to become the leader in the world today in this industry. So, I urge the Government to look beyond R&D support to have schemes to kick-start large-scale pilot use of renewable energy in the private sector and not just focus on R&D.”
“To alleviate concern that the SME bank will crowd out private sector lenders, the SME bank can be a lender of last resort to the under-served small SMEs. Alternatively, the Government can form tighter partnerships with existing financial institutions to serve this market.”
“Madam, the service economy is increasingly important to Singapore. Excluding financial and insurance, the service sector had 135,000 enterprises and employed 1.35 million workers in 2010. The 2012 SME Development Survey highlighted that 50% more service sector SMEs found bank financing a challenge compared to the previous year. This is despite the availability of Government-backed loans through financial institutions. The survey also found more SMEs facing cash flow and liquidity problems. Page: 101 Service sector SMEs generally require working capital financing, such as supplier invoice financing, working capital term loans and factoring. They are generally asset light with little collaterals. Financial institutions are cautious and tend to make unsecured lending only to bigger mid-sized SMEs. With the Basel III minimum adequacy requirement, banks are likely to tighten loans to smaller and riskier SMEs. Government lending to SMEs has been implemented in countries such as USA, South Korea and Malaysia, to address market failure in working capital financing loans to SMEs. A Government-led SME bank will be useful for the following: (1) SMEs with track record of less than three years. SMEs have highlighted that banks generally offer financing to SMEs with more than three years of track record. (2) SMEs with small scale operations. Financial institutions tend to focus on mid-sized enterprises. (3) SMEs with intangible assets. Many knowledge or technology-based companies have intangible intellectual properties which banks are unable to assess. I understand there were previously Government-backed unsecured loans to start-ups through the now defunct Keppel-Tat Lee Bank called TechFinancing. Is the Government supporting more of such schemes?”
“One, fit in tariffs for solar energy producers, and sell the electricity back to the grid on long-term guaranteed contract at slightly marked-up prices. Two, rooftop leasing to encourage building owners to lease out their rooftops to solar energy companies to produce electricity. Three, solar leasing to encourage building owners to rent panels from solar energy companies. The Government has said that it is not fair to subsidise electricity generation producers. However, the Government provides funding and subsidies in many creative forms to develop promising industries. MTI should study the viability of these schemes and experiment with solar leasing, roof top leasing and FITs. 2.00 pm Tourism”
“Madam, it has been some years since the Government identified clean energy as a key economic growth area. Since 2007, the Government has invested $350 million to fund the development testing and export of clean energy solutions. By 2015, the Government expects clean energy to contribute $1.7 billion to Singapore's GDP and employ around 7,000 people. It is now 2013, how far are we from this target? We have a dozen tidal wind and solar energy MNCs, largely R&D facilities, here but how many sizeable Singapore enterprises have sprung up to export clean energy solutions? Solar power currently represents just 0.1% of energy generating capacity in Singapore. This is very low, and could be the reason why local enterprises have not taken off. We are too focused on development and testing. Germany is the global leader in solar energy production. The German solar energy industry was enabled not just by R&D but also lessons learnt in system adoption and use, because of the aggressive promotion of the alternative energy market. Solar energy capabilities are not just about producing and exporting panels. Clean energy solutions require hardware and software integration, with customisation and after-sales services. Without a sizeable local deployment, it will be very difficult for Singapore to export our clean energy solutions expertise. Currently, we only have two small-scale schemes for private companies. One to encourage test bedding in Government facilities, and the other is to offset the capital cost for installation. We need to scale up system adoption and use in the private sector to develop the industry and make the Page: 72 market. I propose that the Government look into three areas.”
“Madam, much has been said about infrastructure in the land use plan. Liveability is not just about buildable infrastructure. Sustainability of our natural habitat is also important. Apart from being a habitat for flora and fauna, the natural environment alleviates drainage issues by retaining water and slowing surface run-off and can moderate ambient temperatures. The 2012 Expert Panel on Drainage Design and Flood Protection Measures found that large-scale rapid urbanisation is a key contributor to the recent increase of flooding. A comprehensive Environment Impact Assessment (EIA) should precede major developments. Many countries already require EIAs before starting projects. By alerting us to the potential hazards that may arise, precautionary measures can be taken. An example is the urbanisation of a grassy knoll to house Ion Orchard. Preventive measures could have been taken if nearby complexes and the authorities were alerted to potential problems arising from the building. Another effect of urbanisation is the increase in ground temperatures due to the loss of trees. EIAs can help us better understand this issue and help planners plan the siting and even method of development. 11.30 am The Nature Society of Singapore has noted that Singapore has a higher carbon footprint than other developed countries. Naturally, wooded areas help absorb this carbon. If more wooded areas like Bukit Brown and Pasir Ris wetlands go away, our carbon footprints may become larger. I hope EIAs can be a pre-condition for all major developments, and their findings made available to the public.”
“I thank the Deputy Prime Minister for the answers. I am glad to know that 97% of the PSC scholars graduate with good Honours, which I take it to be Second Upper and above. I just want to know whether the PSC and MOE look at the comparison between the standards expected of PSC scholars and foreign scholars that are given scholarships. I understand from previous answers that the rate of international scholars who get good Honours is 65%, which is very low, compared to 97% for PSC scholars.”
“Mdm Speaker, just two supplementary questions. First, I need to declare that I am on the Advisory Board of a Junior College, although that PQ is not specific to any school in particular. The first question is that PRIME is into its 14th year. What are MOE's plans for the schools that are in the first phase of PRIME, which means that they are about 14 years old now? Are there any plans for the next cycle of PRIME, that is, PRIME 2, after all schools have finished and when? The next supplementary is: some of the older JCs have taken on the Integrated Programme but they have not gone for any upgrading. Is there any impact on the facilities or the lack of these on the operations of the schools?”
“I thank the Acting Minister for the answer. I just want a quick check as to whether MSF also monitors if there are any changes to the fees after the change of ownership in the immediate few months, and whether there is any trend in that respect.”
“A healthy level of competition is needed for operators to be innovative, to continue to offer high quality services at competitively affordable prices. I believe we can structure childcare as a public good, with regular competition by all operators for packages of sites at fees regulated by MSF. With the same level of investment that the Government has planned, I believe this will result in better outcomes for affordability, accessibility and quality. The higher number of working parents has seen fast rising demand for childcare. These same parents will also need good quality and affordable student care facilities. It can be another important area as a social leveller. I will touch on childcare and student care further in my COS cuts on MSF. 5.09 pm”
“There will be an additional 16,000 places by AOPs to add to the existing 17,000 places. I have spoken previously on this issue and I believe this will drastically alter Singapore's childcare landscape. It is currently being served by a diverse number of private and non-profit operators, with a good deal of variety and innovation. The AOP scheme was initiated in 2009. It provides AOPs with easy availability of new centres at typically under 10% of prevailing monthly rental cost of private operators, a generous combination of start-up grants which I worked out to be around $600,000 per new centre, and grants for teacher training and scholarships. Page: 109 In return, AOPs are expected to charge fees below the industry median. That is hardly any challenge at all, given that the enormous grants and low rents will easily allow them to achieve this without having to be innovative or cost conscious. The dearth of remaining new sites for non-AOPs have seen rents bided to unsustainably high levels. This Budget has increased salary grants to AOPs. This will accelerate the outflow of teachers from non-AOPs to AOPs. There are two important things necessary for operators to succeed in this industry: location and teachers. Non-AOPs will be choked off in these two key areas. While it is good that the Government is pumping a lot of money into this sector, the industry is wrongly structured and the huge grant will worsen the situation. There will be negative consequences arising from the current AOP scheme. It will wipe out many existing players, especially operators catering to the low to middle income families. The two current and two to three new AOPs will not have to compete hard to be innovative.”
“In a high energy demand scenario, Shell predicted a strong push for the development of solar power as Page: 108 an alternative source of energy. By 2070, photovoltaic panels could become the world's largest primary source of energy. Singapore is constrained by small land size. We have been told that even if all roof tops and building surfaces are covered with photovoltaic panels, we could only have up to 14% of our energy needs being met. I think this should not stop us from aggressively promoting and pursuing renewable energy installation expertise and technologies at a faster pace so that our companies can export their renewable energy products and services to fast developing countries in regions hungry for more energy. Our public projects can be more aggressive in using renewable energy. The Government can actively support local companies to build up their abilities to install such set-ups. Just as we had supported local companies to build up capabilities in water technologies to allow them to become global players in this field, we can do likewise now in renewable energy. Finally, preschools and student care. The Government has planned to more than double its spending to $3 billion for the preschool sector over the next five years. It is good that the Government is acknowledging the importance of early childhood education and is putting a significant investment into it. It is forming the Early Childhood Development Agency to combine the preschool functions of MSF and MOE. This is something that industry players, experts and observers had been calling for. The Government plans to bring more operators onto the Anchor Operator or AOP scheme. At last year's National Day Rally, the Prime Minister had said that there will be two to three more anchor operators.”
“The M&A scheme could be graduated to allow higher allowances for smaller SME consolidation and M&A activities. For example, allowances could be, say 30% for deal size of $500,000 or below, another scale at $1 million, and a further lower scale at, say $5 million. This would cover the typical deal size for acquisition of smaller SMEs. The current scheme allows only for outright purchase of shares. Some acquirers prefer to buy over operations and businesses of SMEs, but not the entire company as they prefer not to be entangled with liabilities that may be associated with the target company. We can loosen the definition of M&A to include such types of acquisitions. We can also incentivise the acquirers to automate the operations of their acquired businesses to achieve greater productivity and to change old business models. We already have the PIC scheme with its schedule of qualifying activities. We can look at allowing even higher than 400% tax allowances for investment in automation, and higher than the existing cap of $400,000 in tax allowances for merged business entities to get them to speed up investments in productivity improvements for the acquired companies. Next, new industries. I am glad the Government is constantly looking at new industries to develop as the economic landscape is rapidly changing due to globalisation and technological advancement. This is important as Singapore companies continue to seek areas to fill a niche in. One area I hope the Government can give more attention to is in renewable energy. Last Saturday, The Straits Times reported energy scenario projections by Shell. The report projected that total energy demand could double in the next 50 years as the world's population rises to 9.5 billion.”
“What is the Government's expectation of SME's share of the $3.6 billion payout? If in reality, WCS ends up not helping SMEs much, the Government will need to find more targeted ways to support them. PIC is given a new push with the new one-for-one top-up grant of $5,000 per year. It is a generous payout over and above the earlier PIC payouts. I think this should get more smaller companies to use PIC as they will get more cash than what they have invested. The PIC process is relatively easy to administer compared to most other Government grant schemes. While PIC is useful to provide some relief to companies, it is limited in effectiveness for some types of companies which really need a major transformation. And it is not always automation that will help companies restructure. Sometimes, it requires drastic changes to business processes, organisation structures and to business models. I would like the Government to consider additional ways to help companies restructure. One is in the area of M&A, or merger and acquisition. In fragmented Page: 107 industries where there are too many companies chasing the market, it makes sense to consolidate. Merger and acquisition, done strategically, could boost revenues or result in greater manpower efficiency. In Budget 2010, the Government implemented the mergers and acquisitions, or M&A scheme. The scheme is hardly attractive as it allows M&A allowance of 5% of the value of acquisition as tax allowance. Budget 2012 provided for 200% tax allowance on transaction costs. Transaction costs cover professional fees, legal fees and valuation fees. These two provisions benefit mostly large transactions. To encourage M&A activities amongst SMEs, we need the scheme to be more targeted.”
“The role of agencies, such as IE Singapore, becomes even more important. Singapore firms will need to create strong expertise and brands around products with high demand in new markets. We have some successes in areas such as oil rigs, food, and water technologies. The challenge is for the Government to help identify more industry clusters and Page: 106 match that with emerging new markets. The Government has implemented various schemes to help local companies. The Productivity and Innovation Credit (PIC) was introduced two years ago. This year, we have an interesting Wage Credit Scheme (WCS). While WCS' objective is to help companies share the fruits of productivity increases with workers, I believe it is intended to also provide companies with extra cash. Employers generally give increments to retain workers. WCS will run for the next three years. The 40% share by the Government will be given back to employers only after the end of the year, which will impact the company's cash flow. This means that employers will be careful not to give wage increases unless they have to and can afford to. Employers will likely be giving regular wage increases as they generally would have done so even without this scheme. Cash-strapped companies will still resist wage increases. Madam, I welcome any scheme that can help local companies cope with the current economic challenges. It will be interesting though to see which companies will benefit from WCS. MNCs, larger companies and more profitable companies have been and will be able to make wage increases. Smaller and struggling SMEs will still not do so. Perhaps the Deputy Prime Minister can share what type of companies will likely benefit most from WCS looking at wage data from the past two years of CPF records.”
“Output is commonly measured as revenue less cost of purchased goods and services. In the context of my restructuring experience, survivors changed business model to become lean. By reducing labour input while maintaining the same financial output, there will be productivity gains. But more critically, to make quantum leaps in productivity, financial output has to be significantly increased without a corresponding increase in workforce. This can be done either by expanding the current market or modifying business models to gain new revenue sources or by merger and acquisition. I believe these lessons can apply to other industries. For example, in the F&B industry, we have heard feedback about the lack of Singaporeans wanting to work in the industry. In his Budget Speech, Deputy Prime Minister Tharman said that over the past five years, the F&B workforce has increased by 31%, with Singaporeans actually making up half of the increase. So, Singaporeans do enter this industry. Yet we hear of a shortage of manpower. The boss of Jumbo restaurant was pictured in The Straits Times clearing dishes. Deputy Prime Minister Tharman cited F&B as an example of a fragmented industry structure. Could there be too many F&B outlets in this industry chasing the limited customer dollar? Is there too much mall and shop spaces allocated to F&B? When an industry consolidates, manpower that is not fully utilised will be redeployed to companies that most urgently need them to cope with the bustling business. Or some companies may have to reinvent their business model or product offerings to generate new revenue streams. Given Singapore's limited market size, for meaningful productivity to be sustained through revenue growth, there should also be increased efforts to secure new overseas markets.”
“Companies tried different ways to stay relevant to the market. We, too, experimented with different business models and products, and had to go through the painful process of chopping off unprofitable business segments and to let go of excess headcount in our darkest hour, just to stay afloat. Within seven years, the 50 companies had withered to around 10, and I reckon less than five had respectable growth and profitability. There are some lessons that I have learnt observing this brutal industry restructuring first-hand. The first lesson is that those that survived had adapted their business processes to merge certain job functions to stay lean. Faced with poor prospects for better revenue, companies had to look internally to keep costs down. Being in a human resource driven knowledge industry, the biggest cost was manpower. Companies had to re-examine business processes to see which job functions could be merged or re-invented to cut costs. Company structures were flattened and employees empowered to do more. A second and important lesson was that the surviving companies had to find new business models to try to create new revenue sources. There is a limit to how much cost one can cut down to be more productive. Revenue had to increase and companies had to find these revenue sources. Some companies merged or acquired other smaller players to achieve better economies of scale Page: 105 or used their combined strengths to create new business models. The Government is calling for companies to be more productive to overcome the immediate challenges. What is productivity? Productivity is output divided by input. Financial output divided by labour input is also known as labour productivity, or value added per worker.”
“Mdm Speaker, I wish to touch on three areas in this year's Budget: SMEs, new industries and preschools. I wish to declare that I own and operate private companies classified as SMEs. I have previously managed and owned childcare centres though I no longer do so now. Part of my current business supplies products and services to education institutions. SMEs. SMEs form 99% of business entities in Singapore, employ 70% of all Singaporean workers and contribute 50% to the GDP. SMEs are facing great challenges due to higher rents, higher cost of goods and services and a manpower crunch. Page: 104 Deputy Prime Minister Tharman spoke of the pain that companies, particularly SMEs, will go through as the economy restructures to one based on higher productivity. Some companies will not survive the restructuring. I would like to share about the pains of restructuring and some lessons we can learn when an industry restructures. I happened to have been in an industry segment that underwent very severe restructuring and experienced one of the highest rates of company closures. During Singapore's dotcom peak, I started a company developing e-learning solutions for education institutions. It could not have been at a worse time. From 1999-2000, there were suddenly some 50 companies in this same space, most of them new start-ups fuelled by dotcom investments. Funding very quickly dried up after the NASDAQ crash of April 2000. But the companies were already formed and operational. The industry demand was much smaller than what these companies had thought it was. These 50 companies fought tooth and nail over the meagre market for customers who were then not yet ready for the services being offered. I witnessed many companies shutting down, merging or being acquired.”
“Mdm Speaker, I thank the Senior Minister of State for the reply. My question is more relating to the process that was taken by the investigating officers rather than about the case itself. There have been quite troubling reports – at least to the members of the public – that the officers do not seem to be able to answer the film-maker about the basis of seizing her computers and mobile phones. When questioned about which part of the Criminal Procedure Code was being used, they did not seem to be able to answer. So, I was wondering if the officers are familiar with the procedures.”
“I would like to thank the Minister for the answer. I have two supplementary questions. But, first, I would like to declare that I live just next to the biggest hotspot area in East Coast Road. The first question is that, as an interested resident of the area, I would like to do my part to fight dengue. Other than making sure that there is no stagnant water at home, I would like to know what else can people do. I read that the Ministry had in the past given ovitraps to residents in some pilot schemes to trap the eggs that were being laid. I would like to know what has happened to that project and whether there is a plan to carry it on, and whether that has been effective. My second supplementary question is this: I have read that the Ministry has stopped fogging because it is said that it is not effective. I would like to know why is it not effective, based on what sort of data, and would it be a plan to fog Page: 33 if there is a need to?”
“Thank you, Madam. I would just like to check. I have been told by some people in the education field that the small pool of Literature students in schools means that there is smaller number of people taking Literature in the universities. Has the MOE experienced problems trying to get good Literature teachers given that small pool of Literature graduates to hire from? Page: 28”
“I would like to ask Mr Zaqy whether he believes that the outcome for the parents should be that they should have affordable fees, and that they should have good quality service. So, it does not matter whether it is provided by some non-profit operators with a social mission, or whether it is by private operators, as long as they can charge low fees, then is there anything wrong with that?”
“Since Mr Zaqy was not referring to my adjournment Motion, now that I have told that my adjournment Motion called for the same conditions and criteria to apply to private operators if they wish to be considered as Anchor Operators, does he think then if it is all right for them to be considered? And if they make profits, whether the Anchor Operators are also similarly making good profits?”
“The second question is that Mr Zaqy is in the private sector. Does he not believe that competition in the private sector drives innovation and competitive pricing? And why does he feel that the Anchor Operators should be protected from competition? If they are able to provide high quality and value, then they should not be afraid of competition.”
“Madam, I am clarifying the points he made about my speech.”
“Madam, I have two supplementary questions for Mr Zaqy. He referred to my speech about childcare and he said that we should increase the number of Anchor Operators instead of lining the profits of private shareholders. He also referred to my proposals. I hope Mr Zaqy has heard my proposals during my adjournment Motion where I had also asked for the same conditions and criteria to be given to private operators if you are to appoint them as Anchor Operators. Now, I would like to ask Mr Zaqy if the private operators can use the same conditions applied to Anchor Operators and make profits to line their own pockets, does Mr Zaqy then think that non-profit Anchor Operators are lining their own pockets with profits as well. That is my first question.”
“Mr Nair may like to know that the Workers' Party is interested to get policies right for the people of Singapore and not to run businesses, whether with foreign or local staff. In conclusion, PAP Members spoke of the pains to SMEs with our proposal. I should know. I have owned and run private businesses for the last 13 years. Yet, at the same time, I am reminded that I am also a father to three children. I think of what Singapore would be like for them 17 years from now. I think for Singaporeans, what Singapore would be like for them when we ramp up our population so fast, leaving just 4% of our land as reserved space. Would we reach the population cliff by 2030? Singaporeans are told there are trade-offs. We are told that a population of up to 6.9 million may be required because the Government believes we need 2% to 5% economic growth yearly. Unlike the Government, we present a model for sustainable growth, more consistent with fostering a strong Singapore Core. If there is a trade-off, are Singaporeans given any choice? Perhaps, there is an overwhelming majority of Singaporeans who do not wish to be the minority in their own country. Perhaps, Singaporeans would rather make do with a more manageable growth to keep their birth rights. Page: 80 We had already moved too fast in the past eight years. The decisions made today cannot be reversed. We will sooner or later face the constraint of our small land size. If this Government moves too fast again, what would be left in the future to sustain the future generations? I urge the Government to reconsider its plan and opt for a more manageable growth that will allow us to keep Singapore as the Singapore we know. Mdm Speaker, I oppose the Motion.”