Yeo Cheow Tong
Singapore
“Mdm Ho Geok Choo asked the Minister for Health in light of the recent report on fungal corneal infections (a) whether those who contracted the contact lens related fungal corneal infections will suffer permanent damage to their eyes; and (b) how long will his Ministry take to conclude its investigations into the causes of these contact le…”
“My Ministry performs a regulatory role and what we do is that we try to ensure that we have a conducive regulatory environment for the growth of this industry in Singapore. Let me tell him what we are doing in some areas.”
“Sir, on her two questions, whether we are satisfied that the school buses are collecting fares during the school holidays, as I mentioned just now, the school bus service is a contractual service between the parents and the service provider. It is therefore up to them to work out the terms and to abide by the terms.”
“Sir, on the first question, whether there is any abuse by owners of buses while using the 50% rebate, the answer is no, because LTA monitors very closely.”
“Sir, I have to repeat my answer. We are not responsible for regulating school buses and therefore will not be involved. SCHOOL BUSES (Installation of seat belts) 5. Assoc. Prof.”
“Ong Soh Khim asked the Minister for Community Development, Youth and Sports (a) if his Ministry will increase the cap of $10,000 per disabled person over their lifetime for the Assistive Technology Fund scheme; and (b) if not, whether there will be a flexibility to adjust the funding cap for this scheme based on the applicant's need, as j…”
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“So connectivity between lines, connectivity with regional shipping companies to tranship to the regional markets, all these are very important. In the case of Singapore, we have the added element that we are really very short of space. We need to optimise the available space that we have here. Therefore, PSA's common user terminal operation allows us to optimise the use of the limited land that we have, and yet, at the same time, achieve a very high productivity and a very high throughput. This gives us tremendous economies of scale, as well as the shipping connectivity, which is why the common user terminal approach has been a very effective competitive tool utilised by PSA. Mr Chay also commented on PSA's profit. I think his implication is that it is very high and that this would lead to even greater competition. Let me put this in perspective because I think it is very important. PSA handled a record of 17 million TEUs last year and even then, the revenue fell by 3.3%. As a group, PSA's after-tax profit increased by 11.7% to $838 million. I think Mr Chay mentioned the before-tax figure. This increase in profit can be attributed, amongst others, to improved productivity from PSA's port operations. The container port is a highly capital intensive one and PSA therefore needs to invest in costly infrastructure and highly sophisticated equipment in order to achieve the high service levels and the productivity expected by its many customers. PSA's fixed assets currently amount to some $6.8 billion and this investment is going to increase substantially in the years to come. I will give you an example. PSA now has about 36 berths.”
“PSA has been meeting the competition very successfully all these years and they have done it through a combination of well-developed facilities and the use of advanced technology. This allows both PSA and the shipping companies using PSA to utilise technology to optimise their operations and to improve their productivity. PSA's competitive edge is not just pricing. PSA's pricing is not the lowest. You would have read in the papers that many of the ports in the region do offer rates that are perhaps down to half the price of PSA. It is not pricing alone. It is, at the end of the day, the total value-added that PSA can bring to the business table and that includes the technology part and systems part that help the shipping companies derive value from the services that PSA is giving. In terms of Maersk's pull-out, Maersk made up about 10% of PSA's throughput. No doubt, the pull-out by Maersk would impact PSA somewhat. Over time, the growth of businesses from the other customers will help to offset the loss of business from Maersk, but PSA is not sitting still. Members would have read in the papers last week that PSA and Maersk had entered into a new agreement which would still see some of the major ships from Maersk calling in Singapore. I think this will help bring back part of the Maersk's business to PSA. On dedicated terminals, whether this is a factor in companies thinking about leaving Singapore and is this part of the supply chain factor, I would say that dedicated terminals are useful in cases where the port is a gateway port, ie, there is no need for connectivity. The ship just comes in, unloads, the containers and cargoes are then distributed by land to the hinterland. In the case of PSA, the bulk of the business involves transhipment.”
“In line with their strategy, we are expanding Changi Airport by adding the third terminal. Mr Chay has also asked for some updates. Sir, construction work on Terminal 3 has started in October last year. Tenders for the superstructure would be invited in the third quarter of this year and we expect Terminal 3 to be ready in the year 2006. When completed, Terminal 3 will have a handling capacity of 20 million passengers. This will bring Changi Airport's total handling capacity to 64 million passengers. This will allow us to meet very comfortably the needs of the aviation industry for many years to come. In terms of the long-distance planes and the impact on Changi Airport, the key is connectivity through Changi Airport. If we have the connectivity, then it makes good reason for the planes to land in Singapore in order to use Singapore to re-distribute their passengers throughout the region. And I think the passenger load in the entire region is still very significant. Even though we have the long-distance planes, I would still see Singapore and Changi Airport remaining as a key aviation hub in the region. Mr Chay asked about PSA. He asked about the state of competition versus PSA and the impact of the pull-out by Maersk on PSA. Sir, the competition for transhipment cargo has always been there, even before the building of Tanjung Pelapas. This is because the transhipment cargo does not really need to land in Singapore. They can be transhipped in many ports along the entire supply chain. It can be in Kaoshiung, and also as far away as Malta and Sri Lanka. It does not have to be transhipped just at our neighbouring ports.”
“Mr Chay asked for an update on the performance of Changi Airport and how does it rate versus the other airports, and whether the membership of the airline alliances has helped Changi Airport and the impact of the new long-distance planes that are appearing over the horizon. He has also asked for an update on Terminal 3. Sir, Changi Airport continues to do very well. Last year, the passenger movements at Changi Airport grew by 9.8%, to a total of 28.6 million passengers. Cargo also grew very strongly by 12.1%, to a total of 1.7 million tonnes. These were the highest numbers in terms of passengers and cargo movement ever handled by Changi Airport in a year. In addition, Changi Airport won 16 best airport awards from international travel and industry surveys in 2000, and this includes the UK Business Traveller Best Airport award for a record 13th time. Changi Airport continues to do well. In terms of competition, Changi Airport is facing tough competition because several new airports have opened up in the region. At the same time, we are continuing to see new airports being proposed. This means that Changi Airport would have no choice but to continue innovating and upgrading its wide range of services in order to remain competitive. In terms of ratings, Changi Airport continues to rate very well against new airports in the region. The fact that we have several alliances flying through Singapore has also helped Changi Airport to register very strong growth. We hope to continue anchoring those airline alliances in Singapore. Sir, one of Changi Airport's strengths is its ability to expand facilities ahead of demand and this allows the Airport to provide a high level of service to both the airlines and their passengers.”
“In terms of the control room, I am happy to tell Mr Chay that there will be human controllers in the control room and they would be all cross-trained and multi-skilled, including the train operation. They are going to be put through the various functions, they are going to be involved in the train operation and they are going to have the full experience necessary to run the control room. Sir, I am also happy to inform Mr Chay that the North-East line would be an integral part of the rapid transit network and it will have the same ticketing system. In this way, travellers would not have to leave the North-East line train system and go out and then come back to join the other parts of the system. It is going to be a seamless travel for travellers on the North-East line. I hope that answers all his questions.”
“The system uses the positive contact between the steel wheels and the rails of each train, and on each train, there are 24 axles, which means on each train, there are 24 systems for feeding back to the control room as to where the train is. It is unlikely that we are going to lose touch with the train. On top of that, there is another independent system that helps to locate the train, that is, on the rails, there are sensors. And as the train passes each of these sensors, there will be an automatic pick-up which would again be fed back to the control system through antennas. It is a dual channel feedback system, a dual sensor type of system. There are also several levels of redundancies to safeguard against failure. The train is also equipped with self-diagnostic system which allows the train to continually monitor the health status of the equipment and the functions on board the train. For example, if on any of the axles, there is a fault, that fault would be picked up and fed back to the control system, ie, we are not going to get to a stage where all the 24 have failed before we find out. So there are a lot of redundancies available in the system. In terms of implementation, LTA would put the entire North-East line system through several months of rigorous integrated system and operational testing before we put it into revenue service. This is to make sure that the design work has been carried out properly. We do construct it properly, and we audit it, but there is nothing like putting the system through a stress test. We are going to put the system through several months of stress testing.”
“Sir, I would rather call the North-East line not driver-less but an automated system. There is a difference between driver-less and automated. "Automated" means that there is still someone in control. Mr Chay has asked how safe would the system be and whether the control room would be manned by people or robots and how well they are going to be trained and, in terms of the fare system, how integrated would that be with the rest of the public transport system. Let me take them in turn. In terms of safety, I think that really was a fundamental concern of LTA and the Ministry when we were considering the North-East line because safety must be of paramount concern. The safety system for the North-East line has been designed to the highest international railway standards. That I can assure the Members here. LTA started on the design of the North-East line by adopting the best existing features of the established fully automated systems elsewhere in the world. Then they proceeded to further enhance the design by incorporating the latest technology that is available today. LTA has also established very strict criteria for hazard evaluation to ensure that the system is safe for commuters. Furthermore, they proceeded to bring in independent consultants to audit the design and the construction. They have gone through many steps to make sure that in the design and construction stages, safety is kept at the forefront of everybody's attention. Sir, the heart of the North-East line safety system is the automatic train protection system. What is this automatic train protection system? Essentially, this system develops an electronic envelope around each train, and it ensures safe speed and safe distance between each train.”
“The second part that LTA is doing, and would be doing more, is to post every month on its website full details of the car prices, and this would include the OMV, customs duty, ARF and COE payable, ie, car buyers can then go into the website and know exactly what he has paid for versus what it actually costs the car dealer. They can then make an informed choice as to what to buy and whether to buy with or without COE.”
“As Mr Ee has in fact recognised, the package pricing of the car with COE, in effect, results in a discount being given by the dealers. He used the term "subsidise". I would rather not use the term "subsidise" because I do not think car dealers are in the business of subsidising car buyers. But they do give a discount to make it more attractive for the car buyers to buy the car from them with the COE included. And I think that is to the benefit of the car buyer but there is a hidden cost to it. And again, that is something which Mr Ee has alluded to, and the hidden cost is that the buyer has no control over what the car dealer is going to bid for the COE, and over the timing of the delivery of the car that he has entered into an agreement to buy. So there is a hidden cost. Therefore, in a way, the buyer who buys his own COE is, in effect, forgoing the discount but, in return, he is getting the assured delivery of the car he wants, at the time he wants. Sir, I think what we need to do is to encourage the car market to be more competitive so that car buyers can shop around and know what they are actually buying. To this end, LTA has done two things. One is that it has made it easier for individuals, companies and car dealers to parallel import the cars that they want. I have asked LTA to review and further streamline the import procedures to further facilitate parallel car imports. Of course, the cars that are being parallel imported must still meet our safety and environmental standards and regulations.”
“This is in contrast to what Mr Gerard Ee has asked for, which is to merge everything into one category. This shows that, really, the issue of car ownership and usage is a very complex one, and we will have to try to balance all interests as much as possible. Sir, he has also asked that we make it possible for car owners who want to revalidate their COEs to do it on a five-year basis rather than on a 10-year basis. This issue was again discussed quite extensively previously, and the reason for having that 10-year COE is, again, an equity reason, because the new car buyers are buying COEs on a 10-year basis and, therefore, the lifetime of each COE is really for a 10-year period. And if a car owner feels that his car has been very well maintained and can last another 10 years, he is free to revalidate for a full 10 years. In fact, he can do it indefinitely, as long as the car is well maintained. But we do recognise that there will be other owners who do not feel that the car can last 10 years and therefore, we have made it possible for them to have a final revalidation of the COE for a 5-year period, ie, this 5-year period is not meant to be an instalment payment scheme. We should leave the instalment payment scheme to the financing agencies. 1.15 pm Mr Gerard Ee also touched on the point of package deals for COEs. He himself recognises that this package-deal system is actually a very convenient one and, in fact, it is one that the vast majority of car buyers use, and for all the reasons that Mr Ee has mentioned. The question is: should we now step in and disallow the packaging of the car prices with the price of a COE? This would be unnecessarily intervening in the free market mechanism.”
“That is why we have the open COE category: so that if there are more buyers bidding for small cars, for example, instead of all going for the small car category and bidding up the COE prices, they can still go into the open COE market and bid for the open COEs. So there is a balancing-tank effect there. Mr Noris Ong lamented about the high cost of car ownership in Singapore. Sir, I think it is useful for us to take a step back and see whether we should be comparing ourselves with countries which do not have space constraints. In Singapore, the reason why we need to have a very strong control on car population is that we are land-short. In fact, we should be comparing ourselves with the major cities of the world, like New York. Very few people who live and work in New York expect to own a car, and Singapore really is a major city. We do not have the open spaces where we can have a half-an-acre home and park 10 cars in the driveway. Unfortunately, in Singapore, there is no alternative to having controls over the car population because we have very limited land for roads and we have very limited land for parking cars. In fact, roads today already take up 12% of our total land space, and this is equivalent to the total land area used for residential housing. So we are already using whatever land we have for roads, and it is going to be very difficult to build a lot more roads. It is also going to be very difficult to build much more car parks in existing housing estates. If we look at the older housing estates like Toa Payoh, Queenstown, etc, the parking capacity is already very, very tight. So we must control both car ownership as well as car usage. In fact, I think Mr Noris Ong made an interesting point. He is asking us to reinstate the category for small cars.”
“It is fair to state that, from the public transport point of view, having one category of COEs does make for efficient allocation. Basically, what we are interested in is: how many vehicles are we going to have on the road, and whether the vehicle has a bigger engine or a smaller engine. In terms of road use, it does not really make much difference. In terms of efficiency, what Mr Gerard Ee has mentioned is correct. However, the feedback from the public was that some segmentation of the COE quota system would be useful for social equity reasons because of the concern that if we do not have separate categories, the potential buyers of small cars may be squeezed out by the buyers of the bigger and more expensive cars. As such, the Committee recommended that, as a first step, we proceed to only merge the car COE categories from four to two, which is what we have today. In terms of whether we should have a single pool, but still differentiate by having a multiplier, the complexity that is going to be introduced is not going to make anybody any happier. How do we allocate the multiplier? Whatever figure we pluck out from the air is not going to make anybody happy at all. So, I think the present system is working well. We only have the two categories for vehicles and, therefore, it is working. I think it is better that we stick to it. Let us have the open COE bidding first, see how that goes and, if the indications are that it makes sense later on to have a single category, I am sure the Government will be very happy to consider that. On his point that having the different categories, in effect, fit the relative size of each sector, based on historical figures, I think Mr Ee need not worry about that because we have thought about it.”
“What we will do is we would then divide that month's COE into two portions: one half for the open COE bidding and, a fortnight later, the other half, for the closed COE bidding system. As the two bidding systems will have different characteristics, it is quite possible that they will also have quite different outcomes. We will evaluate the outcomes from the two bidding systems during the trial period, and correct any shortcomings that may be observed with the new open bidding system. LTA will discontinue the closed bidding system once the open bidding system has stabilised, and the public is comfortable and familiar with the new system. We expect the trial period to last between six to twelve months. In terms of the new COE supply for the new quota year, Sir, Members will be happy to know that the Government will continue to allow for a 3% growth rate in our vehicle population for the new quota year. Based on LTA's computations, the COE quota for QY2001 will be 86,831. This is about 20% lower than for QY2000, but it is much higher than the quota for the previous years. As an example, the COE quota for QY2001 is 27% higher than the QY1999 quota. LTA will be releasing more details of the annual quota shortly. Mr Gerard Ee has proposed that we come up with a single pool of COEs, and he has given two options, if we have a single pool. One, let all the bidders pay the same price, or, two, let them bid but use a multiplier to differentiate between the different engine sizes. Sir, in fact, this issue of whether to have a single pool of COEs is not a new one. The GPC had very carefully considered this question when reviewing the Vehicle Quota System in 1999.”
“Mr Yeo Guat Kwang has asked about the coordination amongst LTA and other agencies. I understand that point would be brought up again later, and we will answer that together. Sir, we have four Members talking on COE. Let me reply to them one at a time. First, Mr Chay asked about open COE: why the delay, when will it be launched, and whether there will be sufficient trials because the public will not tolerate any glitches to the system. He has also asked for information on the new COEs for the next quota year (QY). I will go through his points. Why the delay to the open COE system? Sir, the online COE bidding system that is being worked on at the present moment is a very complex system. As such, the contractor has had to spend a little bit more time than originally envisaged to make sure that the different elements of the system are well designed, and the software is written up properly. Sir, the contractor has, in fact, completed the development of the various components of the system. What is happening now is that LTA and the contractor are carrying out a series of very comprehensive tests on the system. This is, as Mr Chay had pointed out, to ensure that the system is totally debugged before we launch it to the public. We expect to complete the tests by the second quarter of this year. If everything goes fine with the tests, we should be able to see the open COE system being launched around June or July this year. Once the system is launched, we will introduce it on a trial basis and, during the trial, as Mr Chay had pointed out, we are going to alternate between the open COE and the present closed COE bidding system. The bidding will be done every fortnightly.”
“This is much higher than the 225-lane-km targetted by the end of 2001, as set out in the White Paper. Sir, in terms of demand management measures, as you know, we have implemented ERP, as proposed in the White Paper. It is working very well and it is able to control congestion on the major roads. And because ERP is working very well, we do not need to expand the ERP system beyond the current gantries. However, if the congestion does worsen as the vehicle population grows, then ERP may have to be expanded to cover other areas and other parts of Singapore as well. Sir, the vehicle quota system (VQS) has indeed been helpful in keeping the car population down. Just now two MPs raised points about the VQS. I will reply to that later on. 1.00 pm Sir, the last pillar of the White Paper was the integrated transport and land use planning. Here, LTA is working very closely with URA and HDB on integrating land use in terms of town and transport planning. This will enable us to optimise the use of our land and to maximise the benefits of the integrated land transport system to consumers and to residents. As an example of the collaboration with URA and HDB, the hon. Member for Sengkang would realise that we are seeing there the integration, in terms of the use of the MRT and LRT stations together with the commercial operations, which will make the town a lot more attractive as well. The other example of the building-cum-station integrated development is the Dhoby Ghaut MRT station, which should be open very shortly. Sir, in conclusion, we can say that LTA has, indeed, made good progress in the five years since the White Paper was released, and we are on track to developing a world-class land transport system.”
“In the next few years, we will be opening the North-East line, the Sengkang LRT, the Dover MRT Station, the Changi Airport Extension, the Marina line, and the Punggol LRT line. Sir, the completion of all these projects by year 2005 will bring the RTS network to a total of 146 km, ie, we are about 90% to the long-term target by year 2005. Sir, in answer to Mr Yeo Guat Kwang, in effect, we are actually very far ahead of what was envisaged in the White Paper. As to the linkage to the other housing estates and whether we are going to expand the LRT to the other housing estates as well, I would like to inform Members that LTA is actively studying the other rail projects and we will announce the projects as and when they are finalised. In terms of the LRT for the other housing estates, now that we have one operational in Bukit Panjang and we are going to have the second operational very soon next year in Sengkang, what LRT would like to do is to step back and observe how well these two systems are performing and how do they compare versus the bus-based system for housing estates. The system is very expensive and it is prudent for us to make a review before deciding whether to further expand the system to the other housing estates in the future. Another good news for Members is that, over the long term, instead of the rail network of 160 km, we envisage that the long-term network will now stretch 540 km. So, in effect, we are going to make the rail network the basic infrastructure for public transport. In terms of developing a comprehensive road network, again, LTA has managed to proceed ahead of what was envisaged in the White Paper. By the end of last year, LTA had already added 415-lane-km of roads.”
“Sir, first, let me answer the two cuts from Mr Chay Wai Chuen and Mr Yeo Guat Kwang on world class transport. Sir, both Mr Chay and Mr Yeo have asked for an update on what has been achieved in the White Paper so far. Mr Yeo has also asked whether we can speed up the expansion of the rail system and in fact whether we can link up the different housing estates with the rail network and whether we are going to expand the LRT to the other housing estates, just as we have done for Bukit Panjang, Sengkang, and, later on, Punggol. Sir, let me first give an update on what we have achieved in the White Paper so far, as requested by both MPs. Sir, the White Paper sets out four initiatives. These are, namely, improving public transport, developing a comprehensive road network, demand management measures on car and integrated transport and land use planning. Let me go through them briefly. Sir, the land transport system, the cornerstone of that system, is really our public transport system. This is an area that we are focusing a lot of our resources on. Our aim is to have an expanded Rapid Transit System (RTS) such that it is comprehensive in network coverage and it is easily accessible. Members will recall that in the White Paper, we had envisaged a long-term rail network of 160 km, and when we say "long term", we are talking about 30 years. At the time when the White Paper was prepared in 1996, the rail network at that time was 67 km long. Today, I am happy to inform Members that the RTS network is now 92 km long, ie, we are more than halfway to the long-term target. On recent achievements, LTA completed the Bukit Panjang LRT system in November 1999 and the Expo Station in January this year.”
“Sir, I beg to report that the Committee of Supply has made progress on the Estimates of Expenditure for the financial year 2001/2002, and ask leave to sit again tomorrow.”
“Sir, with your indulgence, just now in my reply, I missed giving a reply to Mrs Lim Hwee Hua's remarks. I want to thank her for her support and for her suggestion that we should go beyond just all those events, in terms of creating awareness, but to also use the media - TV, radio, newspapers. Sir, I am happy to inform her that last year, in line with the inaugural e-celebrations event, IDA had also utilised TV commercials to widen the level of awareness amongst people. Five TV commercials were used, and they were telecast over Channels 5 and 8, and touched on the benefits of e-shopping, e-banking, e-communications, e-learning and e-entertainment. The post campaign survey showed that the level of awareness of the commercials was very high, and that there was a 72% penetration amongst our target groups. So, I totally agree with her that the use of the media is very important. And for this year's e-celebrations, we are doing the same thing. We are having a 5-week 6 TV commercial programme, and this time it will be broadcast in the English, Chinese, Malay and Tamil channels. This year, the outreach will be even greater. And we will definitely review the success of this programme and, if need be, we will have it more often.”
“The other members who will be driving this programme will be the People's Association, NTUC, the self-help groups like CDAC, SINDA and Mendaki. With all these multiple approaches, we should be able to further narrow the digital divide.”
“The IT coach is a coach that is equipped with Internet access facilities and PCs, and it visits the shopping malls or the CCs and the participants are given a very short training programme that lasts between half an hour to one hour on the use of the PC and access to the Internet. It is a very quick awareness building programme. So far, the IT coach has already serviced over 60,000 people. All these are part of what we call the "Many Helping Hands" approach. Where do we go forward from here? I agree with Members that we have to bring the programmes to the heartlanders and we are going to work very closely with the CDCs to identify centres that can be set up and for the funding support to be given. Because some of these programmes can be quite expensive, it will be difficult for the MPs on their own to drive the programmes. So, by working with the CDCs and the IDA, I think we can provide the support to bring those programmes down to the CCs and later on to the RC level. I will encourage those Members who are keen to encourage their CDCs to begin the dialogue with IDA. I can assure you that we will be giving you the full support. Sir, another programme that we are looking at, which is in line with what Mr Yeo Guat Kwang has mentioned, is a national IT training programme. Here, we are talking of a national IT literacy programme which would be a 10-hour programme, very well-structured and drawn-up, and we expect this programme to train 350,000 people over the next three years. The key drivers of this programme will be the National Library Board because the National Library has a very good network of community libraries and will be leveraging on their facilities and their locations.”
“I am happy to inform Members that so far, we have given out a total of 2,000 PCs free to the families concerned and we would be happy to work with Members here, through their CDCs, to further expand this programme in their constituencies. NTUC is also helping, as mentioned by Mr Yeo Guat Kwang, to bridge the digital divide by making ownership of PCs affordable. The NTUC EasyPC Scheme is a very commendable one. The union members can buy the PCs by paying only a dollar a day and the response so far has been quite encouraging. I hope NTUC will continue to push this Scheme. On the Government side, the Ministry of Manpower and IDA, together with the NTUC, are also spearheading certain training schemes and these schemes are all heavily subsidised by the Skills Development Fund, Skills Redevelopment Programme, and by the NTUC Education and Training Fund. As a result, on the part of NTUC alone, they have managed to train over 70,000 workers over the last three years. For homemakers and senior citizens, we have the One Learning Place in the Toa Payoh Community Library. This offers infocommunications training courses which are tailored to meet the individual needs and capabilities of the trainees. I think the homemakers and senior citizens have found that the training programmes are very useful because they can take those training programmes in the language that they are comfortable with. To-date, the One Learning Place has already trained 20,000 housewives and senior citizens. I am also happy to say that the People's Association, on its part, also conducts basic IT training programmes for the elderly as well. Sir, we also have quite a few other programmes. I do not know whether Members have heard of the IT coach. The IT coach goes around to the CCs, schools and shopping malls.”
“Sir, I would like to thank the four Members of Parliament who have spoken on the digital divide and the importance for the Government to act strongly to narrow the digital divide. Sir, the MPs have all identified the key groups that need to be addressed, ie, low-income earners, older workers, housewives and senior citizens, and that we need to bring the training programmes closer to them by bringing them into the HDB heartland in order to make it convenient for them to gain access to the training facilities. Sir, they have also pointed out that we should not just take single approaches or use single events like the e-Celebrations as a means of reaching out to them. I totally agree with the remarks made by the four MPs. What they have talked about reflects the complexities of the issue, and that is, this is a multi-faceted challenge and we cannot use a "one size fits all" approach. The challenge is how to design programmes that can enable us to reach out to the four groups that we are talking about. And here, I think the "Many Helping Hands'' approach is the correct one. Let me first give Members an idea of what is being done so far and what do we see for the future. One key programme for helping the low-income families is something which Mr Chng Hee Kok had also mentioned, and that is, giving free PCs to low-income families, PCs that are bundled together with free Internet access as well as free training. We have been working with the various self-help groups and the grassroots organisations like Mendaki, CDAC, SINDA and also with a few CDCs.”
“Therefore, we should make sure that we do not cripple them by having a high licence fee, and that is why we went through a very deliberate and careful process of trying to determine what the reserve price should be. As I have stated just now, we have reviewed it and recognising that the market has changed, we have now reduced the reserve price to $100 million. Mr Low has also asked whether we should not cooperate with the telecommunications companies to develop the 3G technology. Sir, indeed, that is what we are going to do. In my announcement on the decision to proceed with the 3G auction last year, I had also mentioned that we are going to set aside a development fund for IDA to work with companies, those telecommunications companies who are the 3G licensed holders, as well as the service providers, to help them develop services, technology application that will give our companies a good headstart in this very new technology. So we are definitely going along the line that Mr Low has mentioned.”
“Mr Low Thia Khiang has accused the Government of going by the auction route in order to rake in money and that we are envious of the high auction bids in Europe. Sir, this is far from what the Government's intention is. In fact, when I announced the decision to award 3G licences, I think that was done in probably September last year or so, I had stated very clearly that it is not the Government's intention to use the 3G licences and the auction process as a means of maximising revenue for the Government. What we are looking for is a mechanism that will allow us to award 3G licences to companies which value it most. If Mr Low can propose a better system than the auction system in order to award the licences, we would be very happy to hear about it. And I am sure consultants all over the world will be very happy too, because this is an exercise which has occupied the minds of many consultants and even professors. The consensus so far has been that the auction process is the most efficient mechanism for a few reasons. One is that the 3G technology is still unproven, no 3G system is operational yet, and therefore the true potential is not known to regulators. Even operators, I think, are not fully aware of what the 3G potential is going to be, because the technology is changing so fast, that what is possible next year may be obsolete the year after. Therefore, it is very difficult for the regulators to try to put a value on what a 3G licence should be, and therefore we should leave it to the market. Our intent is to make sure that we have viable and vibrant 3G operators in Singapore.”
“The reason is that when they pay totally upfront, I think operators are incentivised to roll out their systems as quickly as possible and to also roll out as many services as possible, in order to be able to recoup their upfront investments as quickly as possible. So there are pros and cons. These are elements which the other countries, which have auctioned out their 3G licences, have been considering. And I think in the end, most of the countries have opted for an upfront fee. In terms of whether we should stick to the announced reserve price of $150 million, IDA has definitely been making a review of this issue. We recognise that much of the global telecommunications environment, the international telecommunications environment, has changed over the last six to nine months. The market sentiment has definitely weakened and there is also a greater uncertainty over the business case for 3G. In Europe, because of the high 3G prices, I think the telecommunications companies have also suffered a downgrading of their investment ratings. As a result, they are also finding some difficulty in getting funding for their project. So we have taken all that into consideration and we have also consulted our economic consultants who have done another study for us as well, in order to confirm our own findings. Sir, the assessment is that the market value of 3G licences has dropped considerably. As a result, IDA has decided to lower the reserve price to bring it in line with the current international levels. The new reserve price is now going to be $100 million per licence, instead of $150 million. The auction will proceed as scheduled in late April this year.”
“It has accelerated the development of our national information infrastructure, and our regional and global connectivity. I will expect our economy and our people to continue benefiting from the opening up of our telecommunications sector in the years ahead. Sir, let me move on to the two cuts on the 3G auction. Mr Chay has asked for a preliminary evaluation as to why we are sticking to the old reserve price and whether we should instead lower the reserve price but include in it a royalty element, and that this will help to lower the risk for the investors, and in the process you may get also more bidders. Our assessment as to whether we should stick to a reserve price or go with a mix of a lower reserve price plus a royalty component is that whatever upfront charges you impose, plus royalty or without royalty, the operators will typically charge the consumers based on what the market can bear, because the competition in the 3G market is going to be very, very tense. And not only that, the 3G operators will also have to compete with the present 2G operators in terms of voice, in terms of some of the data traffic. As such, I think whether we charge only an upfront fee or a combination of both, it will not likely influence the charges to the consumers when the 3G service is launched. However, it is true that if we are able to lower the upfront charges, it will help to lower the risk element for the operators. But, on the other hand too, by lowering the risk element for the operators, it may also lead to a lesser outcome for the consumers. You may ask why.”
“5 million sq ft by the end of this year alone, compared to March 2000. Within a period of nine months, we are going to see a huge increase. With such rapid and vast developments, Singapore is definitely fast becoming a leading hub for telecommunications traffic. 5.30 pm How has this benefited us? All sectors of the economy in Singapore have benefited from our increased connectivity and enhanced telecommunications facilities. Companies now have a wide choice of telecommunications service providers to choose from in order to meet their global telecommunications needs. The competitive telecommunications environment has therefore made Singapore also a more competitive business hub. The very high voice and data traffic is helping us to become a strong and vibrant info-communications hub. As a result, we are now able to attract a vibrant cluster of infocomm players across the entire digital value chain and many of them are hubbing their operations in Singapore, to serve not just the Singapore market but also the regional market. These new companies include content creators, aggregators and hosters, portals, application services companies, systems integrators, e-business solution providers, web enablers, server farms and Internet data centres. At the consumer level too, the benefits are quite evident. IDD rates have fallen by 60% on average, and in some cases, as much as 80%. There is also a greater variety of IDD call services, including voice over Internet Protocol (VoIP), and IDD aggregators, who help consumers find the best price and quality plan at any particular point in time. Consequently, IDD calls have increased by over 20%, to over 100 million minutes every month. Sir, I will conclude by saying that our telecommunications liberalisation has clearly been effective.”
“Sir, Mr Chay Wai Chuen has asked about the process of telecommunications liberalisation, and has asked for an update on the new entrants who have entered into the market, what sort of investments and how have the consumers benefitted from the process. Sir, as Members will recall, we want to transform Singapore into a competitive telecommunications hub with a multi-player, multi-network environment that can offer innovative, high quality and cost effective telecommunication services. In the process, both business and individuals should benefit. In the one year since the liberalisation took place, I think we have realised much of the desired benefits. Let me give Members some update. We have awarded licences to over 200 telecommunication companies in the last one year. There are now a total of 16 new and existing Facilities Based Operators (FBOs) and 195 new Services Based Operators. The new companies include world-class players like MCI Worldcom, GlobalOne, UUNet and Asia Global Crossing. All these companies together will help to improve the variety and the richness of the telecommunications services and quality in Singapore. In terms of investment, I think the telecommunication liberalisation will definitely result in significant new investments and jobs for Singaporeans. We expect that the capital investment over the next 5-6 years will exceed S$3 billion, of which about S$2.2 billion will be realised within the next 2-3 years. The new licensees will create about 4,500 jobs by end of this year. So the results and the benefits are going to be quite immediate. Sir, the new telecommunication players will boost our international connectivity by 400 times by the end of this year, to over 20 Tb per second. Our Internet data centres are projected to increase by 750% to 1.”
“Sir, bidders would not necessarily push up to what is the proper economic value unless there are a number of bidders. So when we have very few bidders - in the case of Italy, they only had one bidder more than the number of licences - there is really no market for them to push up to what would be a reasonable market price. I am sure they all have established in their mind what they are prepared to pay. Where they can get away with paying much lower than that, why not. HDB WET MARKETS (Fire insurance cover for stallholders) 4. Dr Tan Boon Wan asked the Minister for National Development, in view of the recent spate of fires in Housing and Development Board (HDB) wet markets, whether he will ask the HDB to take up fire insurance to cover (i) the loss of the personal effects of the stallholders and (ii) the cost of putting up the temporary market. 5. Mr Noris Ong Chin Guan asked the Minister for National Development, in view of the recent fire incidents in wet markets, whether his Ministry has any plans to (i) make it a requirement for wet market stallholders to take up appropriate fire insurance policies, and (ii) provide fire-proof storage facilities inside or conveniently near the wet markets. The Senior Parliamentary Secretary to the Minister for National Development (Assoc. Prof. Koo Tsai Kee) (for the Minister for National Development): Mr Speaker, Sir, can I take Question Nos. 4 and 5 together.”
“Several countries had very low reserve price. The one that had a very low reserve price was Switzerland. Switzerland started with a reserve price of US$29 million and the Netherlands started with a reserve price of US$40 million. And the final price in Switzerland was only slightly higher than the reserve price.”
“Sir, for the reserve price, we hire a consultant firm that has experience in this sector to do a study for us on what would be a reasonable price. They gave us a range and we discounted the low-end of the range further and came up with $150 million. Members should note that the licence is for 20 years. The reserve price that we are establishing is only slightly higher than what we would be getting from a 2G licence. So for the 3G licence with a much broader spectrum that is available, we do not think we would have fetched a very high premium versus a 2G licence. What is your second question?”
“Sir, there is a need to have a reserve price to ensure that if there are too few bidders, we will still get a reasonable economic value for the limited spectrum that is available. The feedback from the countries that have proceeded with the auction without a reserve price or with a very low reserve price is that they regretted doing that and, on hindsight, they should have established a reserve price that reflects the economic value.”
“Sir, whilst some of the companies have expressed interest, we will only know for sure what the actual interest will be when the final invitation for bidders to come forward is given out.”
“Sir, the comments of British Telecom's CEO should be taken in the context of the extremely high bids made for the UK's 3G licences and I am sure, having bidded for such a high price, many of them would hope that the UK government would come up with a mechanism to return part of the licence fee to them.”
“Sir, staff from IDA and EDB have been going round to discuss with possible bidders on their interest in coming to the Singapore market. I think we are quite confident that there will be enough bidders to make the 3G market in Singapore a successful one. Assoc. Prof. Toh See Kiat: Sir, what is the Minister's comment to the remarks of British Telecom that the process actually should best be a beauty contest in view of the experience that they overpaid for the licence and therefore this would have to be passed to the consumer and ultimately the consumer is going to suffer and the development of 3G may not be well done?”
“Mr Speaker, Sir, Infocomm Development Authority (IDA) proposes to conduct a simultaneous multiple round ascending bid auction; ie, the four 3G licences will be put up for auction concurrently. If there is only one bidder for each of the four licences, IDA will allocate licences to the bidders at the reserve price, and there will be no auction. However, bidders may not assign identical values to the four licences because the spectrum band allocated to each licence has different technical and operational characteristics. It is possible that even if there are a total of four or fewer bidders, more than one of them may prefer a particular spectrum band. If so, the auction for that licence will proceed in order to determine the successful bidder. Assoc. Prof. Toh See Kiat (Aljunied): Sir, with the dampening of the 3G auction market and with the low prices that have been coming in, if not the failure of some of these auctions in other countries, and particularly in view of the very lukewarm response from the players in the field to IDA's draft auction rules, is the Government still optimistic that there will be a good response to the auction?”
“IDA will continue in its efforts to develop our local players and work with foreign content providers to provide useful and media-rich content to meet the growing demand for broadband content here in Singapore and the region. AMBULANCE ACCIDENTS 20. Dr Teo Ho Pin asked the Minister for Home Affairs (a) how many ambulances were involved in accidents over the last 3 years; (b) what were the causes of these accidents; (c) of these, how many persons were injured or killed; and (d) what measures can be taken to improve the safety of passengers in ambulances.”
“The number of broadband users in Singapore has reached 268,000 by the end of Year 2000, an increase of 150% over 1999. Today, Singapore's broadband user penetration of 6.6% is comparable to both Hong Kong's and South Korea's. As an example, South Korea's user penetration is 6.4%. We will continue to promote and facilitate the growth of broadband applications and services, both wired and wireless, in the coming years. To this end, we are putting in place a comprehensive, diverse and pervasive broadband infrastructure. One key measure was the mandating of open access in our ADSL network. This allows more than one service provider to use the same copper infrastructure. Open access has attracted new broadband ADSL service providers like StarHub and Pacific Internet to offer broadband services. To further open up new channels for broadband access, we will be issuing Fixed Wireless Broadband and 3G wireless licences in 2001. It will give Singaporeans better quality of services and more competitive prices in their choice of broadband access. In addition to providing comprehensive broadband infrastructure, we also intend to tackle the demand side of broadband usage. The availability of more and richer broadband content will also stimulate demand growth. It is therefore encouraging that the number of broadband content providers has increased to about 300, from 200 in 1999. To further stimulate growth of the broadband sector, IDA recently announced a $150 million package to stimulate the demand for and supply of Internet Broadband Multimedia content and services.”
“Sir, in answer to Dr Toh's first question whether the postponement indicates that IDA is not sure and that this indicates a tentative nature, Sir, let me explain first why IDA has had to delay the auction. Following the announcement of the 3G licences last year, IDA sent a team of officials to interested parties in Europe, USA and Asia. Arising from this trip, the team was asked by several interested telcos, firstly, that they would like to know a little bit more about the auction rules and, secondly, they would want to have the opportunity to comment on the auction rules before they are firmed up. As a result, the release of the auction rules, which has been scheduled for the middle of January, has been delayed. Instead of the firmed-up auction rules, it will now be auction rules meant for consultation with the interested parties. We expect that the interested telcos would take some time to study the auction rules before they give us their comments. And once we receive their comments, IDA would also need some time to study them before deciding whether or not to amend the auction rules. As such, IDA has factored in a 2-month period for this additional process which was originally not expected. As a result, instead of going for the auction in February, IDA expects to go for the auction in April. So the delay is not because of the tentative nature of the process but because we have had requests from interested companies to be involved in the consultation. Thirdly, Prof. Toh has asked whether this would not create uncertainty. Sir, IDA is in close touch with the telcos that have expressed interest and, therefore, there is no uncertainty at all, because they are fully aware of the time line and they are fully aware why the schedule has been changed from February to April.”
“Sir, Mr Chng has asked whether we would set a reserve price. Sir, indeed we have set reserve prices. The reserve price per licence has been set at $150 million per licence. Secondly, Mr Chng asked whether the experience elsewhere has retarded the development of 3G, and whether it will retard the development of 3G in Singapore. Sir, despite the high prices paid elsewhere, we believe that 3G is going to go on and that those telcos which have bidded in the European countries will be proceeding to roll out the system and they are now currently sourcing for funds to proceed with that. In terms of the development of 3G in Singapore, we believe that what has happened elsewhere should not have any impact in Singapore, because we are also going to be proceeding with the roll-out of 3G and, in fact, we will be putting in place programmes to help the development of 3G applications in Singapore through the "Wired for Wireless Programme". Mr Chng also asked whether we would proceed with the auction if there are fewer bidders than licences available. Sir, we are going to be offering four licences for auction and, if there are less than four bidders, we would still proceed to issue the licences to the interested parties and award the remaining licence or licences later when the demand is there. Fourthly, whether the "Wired for Wireless Programme" will continue if the response for the auction is not as originally expected, Sir, the "Wired for Wireless Programme" will continue. The amount of money available for this programme will of course depend on how much we manage to raise in the auction.”
“Dr Hu also announced that relief would be granted to a transfer of assets between associated companies. This relief was previously not available. To effect the above changes, the Bill repeals the current section 15 and introduces a new section 15 to allow ad valorem duty relief for: (a) a transfer of the undertaking or shares in respect of a scheme for the reconstruction or amalgamation of companies; and (b) the transfer, conveyance or assignment of any beneficial interest in any asset between associated companies. In order to prevent abuse and to limit the concession to deserving restructuring and merger schemes, we have imposed qualifying conditions. The conditions to be imposed have been announced via a circular issued by the Inland Revenue Authority of Singapore. The expanded relief scheme has been effected administratively since 1st July 2000. The response to the expanded relief scheme has been encouraging. We will continue to monitor industry trends and amend the conditions when necessary, to make sure that they remain relevant to the business community. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Lim Hng Kiang]. Bill considered in Committee; reported without amendment; read a Third time and passed. GOODS AND SERVICES TAX (AMENDMENT) BILL Order for Second Reading read.”
“I do not think there is anything embarrassing about buying non-Singapore products. BILLS INTRODUCED CONSTITUTION OF THE REPUBLIC OF SINGAPORE (AMENDMENT) BILL "to amend the Constitution of the Republic of Singapore (1999 Reprint)", presented by the Minister for Finance (Dr Richard Hu Tsu Tau); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. LIFELONG LEARNING ENDOWMENT FUND BILL "to provide for the establishment of a Lifelong Learning Endowment Fund and for purposes connected therewith", presented by the Minister for Manpower (Dr Lee Boon Yang); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. STAMP DUTIES (AMENDMENT) BILL Order for Second Reading read. The Second Minister for Finance (Mr Lim Hng Kiang): Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Introduction The Bill seeks to amend the Stamp Duties Act to give legislative authority to the tax changes announced in Budget 2000. Rationale The current section 15 of the Stamp Duties Act provides stamp duty relief for corporate restructuring and mergers. Relief from ad valorem duty is given based on the principle that there will be no substantial change in ownership of the transferred assets. As section 15 is a relieving section, several conditions have been set for the concession. In recognition that companies restructure and merge to obtain greater synergy, achieve cost competitiveness and deliver better products and services to increasingly sophisticated consumers, Dr Richard Hu announced in Budget 2000 that the conditions for section 15 relief will be relaxed so that more companies can enjoy the tax savings.”
“Sir, I do not think anybody forces Singaporeans to fly on either SIA or any other airline. In fact, many Singaporeans fly on non-SQ flights. I think the market is a very open one. As with every product and every service, if a product or service is of a higher quality, normally a premium will be applied, and we leave it to the market to determine whether a premium is applicable. In the case of airline tickets, the same mechanism applies.”
“Mr Deputy Speaker, Sir, SIA relies on the contact numbers provided by passengers at the point of booking their tickets if they have to contact the passenger or the next-of-kin. Currently, it is not the standard industry practice for airlines to take down the particulars of passengers' next-of-kin. Singapore Airlines would have to assess how to reconcile the need for essential passenger information without compromising its speed and efficiency. It would also have to take into account the sensitivity of some passengers who might not wish to provide personal information to the airline. Nonetheless, I can convey Mr Chiam's suggestion to SIA. As for the question on SIA's ticket pricing, the Civil Aviation Authority of Singapore does not intervene in the pricing policies of airlines operating in Singapore. Singapore is a major international aviation hub with over 60 airlines operating here. Airlines price their tickets based on commercial considerations and consumers are free to choose the airlines which best suit their requirements in terms of services, price, routing and flight frequencies, etc. The prices of airline tickets are therefore determined by market forces.”
“On behalf of the multi-agency task force, I would like to take this opportunity to thank the parents and members of the public, pre-school and kindergarten teachers, doctors at the Kandang Kerbau Women and Children Hospital, the National University Hospital, the Singapore General Hospital and doctors in private practice, affected employers, and various Government agencies for their understanding, support and cooperation. HFMD is spread through close contact among children. The most effective measure to prevent future outbreaks is to maintain a high standard of hygiene in pre-school centres and at home. Parents and teachers also need to remain vigilant, and keep infected children away from other children. The multi-agency task force will continue to strengthen guidelines relating to hygiene standards and sick bay operations to prevent future outbreaks as much as we can.”
“Sir, the Taiwanese authorities have stated that they would let the investigations continue before deciding what to do. HAND, FOOT AND MOUTH DISEASE (Update on outbreak) 3. Mr Inderjit Singh asked the Acting Minister for the Environment if he will (i) give an update on the outbreak of the hand, foot and mouth disease; (ii) state whether the disease is under control; and (iii) inform what precaution his Ministry will take to avoid similar situation in the future. The Senior Minister of State for the Environment (Encik Sidek bin Saniff) (for the Acting Minister for the Environment): Mr Speaker, Sir, hand, foot and mouth disease (HFMD) is a common mild childhood disease. Very rarely does it result in deaths. However, on the morning of 30th September, two siblings aged one and two died, within two hours of each other. Upon notification that morning, the Commissioner of Public Health immediately activated the Task Force that was formed two years ago following the outbreaks of HFMD in the region in 1998. The Task Force recommended the closure of all pre-schools effective from 2nd October. The objective was to isolate the children and protect them from contracting the disease. The Minister for the Environment accepted the recommendation. The directive went out immediately to all the pre-schools on the same day. The quick and decisive action by the Government, together with the concerted efforts of the public, pre-schools, media and employers proved to be effective. I am pleased to report to the House that the outbreak has been brought under control. The number of reported cases per day reached a peak of 258 on 4th October, and declined steadily to 9 on 31st October. All pre-schools have reopened since 16th October. The situation is now back to normal.”
“First, let me express on behalf of the Singapore Government, our deepest sympathies to the families and friends of those who were affected by the crash of flight SQ 006. The Government is indeed deeply saddened by this tragic accident. I will now update the House on the progress of the investigations. The Aviation Safety Council (ASC) of Taiwan is leading the investigations into the accident, with the support of experts from the USA, Singapore and Australia. The investigators will determine the cause of the accident and recommend measures to prevent future occurrences. As Members already know, preliminary findings revealed that the aircraft had taken off from the wrong runway, 05R, instead of the designated 05L. Investigators are trying to find out how and why this happened. To do this, the investigator-in-charge, Dr Yong Kay of the Aviation Safety Council of Taiwan, has indicated that the investigators would need to gather all factual data and do the necessary analysis. He has indicated that it would take about a year to complete the investigation.”
“Mr Speaker, Sir, may I have your permission to answer Question Nos. 1 and 2 together?”
“Sir, with regard to strong competition posed by PTP, PSA is used to competition, because there are already many well-established ports such as in Hong Kong and in the region which PSA has to compete against for transhipment business. Much of the business that PSA handles are transhipment containers, and they do not need to be transhipped in Singapore. They can be transhipped at any port along the route taken by the container lines. Therefore, PSA is quite used to competition and with the development of PTP and with the involvement of Maersk in PTP, I am sure PSA will now be even more attentive to competition. With regard to the date for the flotation of PSA, I think this is an issue which Temasek Holdings has to deal with, and that comes under the Ministry of Finance. OPPOSITION MEMBER OF PARLIAMENT (Disallowing of speech-making at constituency dinner) 17. Mr Chiam See Tong asked the Minister for Home Affairs why an opposition Member of Parliament is not allowed to make a speech at a dinner organised by his party, held at his constituency, when the Government is promoting freedom of speech by opening a Speakers' Corner. The Minister of State for Home Affairs (Assoc. Prof. Ho Peng Kee) (for the Minister for Home Affairs): Sir, the Police has reviewed its policy and has decided to allow Elected Members of Parliament to make speeches in the constituencies in which they were elected if their speech is part of a constituency event organised for the benefit of the constituents and where the intended participants are from that constituency.”