Yeo Guat Kwang
Singapore
“Madam, a supplementary question. Many are concerned that with the rising manpower cost and manpower shortage, whether the standard of cleanliness and the hygiene level in the hawker centres will also be affected.”
“The Government should consider implementing new disposal standards like Taiwan and the cities in China, as well as roll out assistance schemes similar to the Innovation and Capability Voucher (ICV), to encourage the local F&B industry to bring in new technology and provide businesses with grants to purchase kitchen waste disposal machiner…”
“Madam, the Minister of State mentioned that instead of having a one-stop, he is suggesting to provide a better first-stop. So, I hope the Minister of State can elaborate further on how this first-stop can really help.”
“Mdm Speaker, I would like to seek a few clarifications from the Minister. The Minister mentioned that the Bill targets those dormitories that are housing 1,000 workers and above. But this Bill's name is "Foreign Employee Dormitories Bill". Why do we not call the Bill the "Purpose-Built Dormitory Bill"? That is, we call a spade a spade.”
“I would like to ask the Ministry: why does it not just group all these regulations together under this Bill and apply it to all? Madam, as the legislation is allowed time to take effect, I would also want to urge the Government to continue close consultation and engagement with the operators and migrant worker residents especially, as wel…”
“This is a Bill that touches everyone in one way or another: some of us are pet owners, others are potential pet buyers, business owners, and some of us may be neighbours to pet owners.”
The complete record
Every one of 770 lines we hold for Yeo Guat Kwang, in date order, each linked to its source. Free to read, in full, without an account. Page 11 of 16.
“Sir, the Ministry of Manpower has plans to monitor and help the construction industry as a major employer of foreign workers in Singapore to reduce reliance on foreign workers. I hope that the Ministry can do more in this direction, not just in the construction industry but also other industries where there is high foreign worker dependency. Let me share one experience I had in Australia. I was driving along a narrow two-lane two-way traffic road where one of the lanes was closed for road works. To control the two-way traffic, I saw a worker putting up two mobile traffic lights. He could control the direction single-handedly. But here in Singapore, we have two workers on each side holding a stop-and-go sign at each end. There is a third worker coordinating. So, altogether, there are three workers doing the job. This is a very simple example of how simple technology can actually improve productivity and how it shows that more can be done to reduce the dependence on low-skilled foreign workers in Singapore. Sir, let me now turn to the well-being of foreign workers. This House has debated previously the plight of foreign workers in Singapore. I have asked the Minister questions on housing for foreign workers and actions taken against errant employers who do not pay foreign workers. The Minister has assured the House that the Ministry will monitor the situation closely and it will take errant employers to task. I would like the Minister to give us an update. I also want to ask the Minister about the problem of maid abuse today. Although maid abuses get very widely reported in the media, often getting front-page news, I know that the vast majority of Singaporeans, however, are responsible ones and who do not ill treat their domestic maids.”
“Sir, while all workers face retrenchment and unemployment in an economic downturn, the older workers bear the heaviest brunt. The statistics clearly show that the older workers are likely to be retrenched during an economic downturn. At the same time, employers are also less willing to hire older workers. Why is it so? One key reason besides the seniority-based wage system is higher medical cost. Employers are not willing to incur higher medical costs associated with the older workers, particularly those who may have developed medical conditions as they change jobs. The way to address this problem is the portable medical benefit system (PMBS). Under the PMBS, a worker can get portable and continuous seamless medical coverage during his work life and even extend into his retirement. Under the scheme, the worker does not lose out when he changes jobs, even if he develops a medical condition. At the same time, it will also not unnecessarily add on to the cost to the employers as he gets older. Sir, for PMBS to firmly take root, I see a compulsory basic national insurance scheme as the clear way to go. The national scheme can be a multi-tiered one. It provides a compulsory basic level of coverage for all workers at the national level with affordable premiums. Then, it can allow optional enhancement coverage to be added on later. I would like to ask the Minister how many companies in the private sector have implemented PMBS. I would also ask the Ministry to step up its drive for more widespread implementation of PMBS in Singapore.”
“Sir, DPM, in his Budget Speech, announced that the Government had accepted the various ERC recommendations on CPF changes. Specifically, they are: deferment of CPF restoration for two years; progressive lowering of CPF ceiling for employer contribution; lower CPF contribution for workers aged 50-55; and increased contribution rates to Medisave and Special Accounts. These are major changes that impact workers. I know that much has already been debated on these CPF changes in public, the media and in Parliament. But I wonder what will the Government do to help Singaporeans adjust to the impact of these changes. Singaporeans understand that the CPF is fundamentally for old age, medical expenses and basic housing, and that the Government will continue the CPF system around these core objectives. But with these changes, Singaporeans' savings for old age will be eroded. We must ensure that our workers' CPF savings will have stable and reasonably good returns. Allowing individual CPF members to invest their savings seems not a preferred choice these days where the stock markets world-wide are underperforming. There have been on-going discussions that the Government is considering privately-managed pension funds as an alternative to CPF savings. I would like to ask the Minister whether he could provide the House greater details and insights.”
“Sir, I beg to move, That the total sum to be allocated for Head S of the Main Estimates be reduced by $100. Sir, undoubtedly, structural unemployment is the greatest manpower challenge today. Workers at all levels are hit, both blue-collar workers and executives. The way to address the problem is clearly workers' training. In this regard, I am glad that the DPM announced that the Government will establish a statutory board under the Ministry of Manpower to enhance the development and promotion of continuing education and training for adults. Sir, although our economy is down and unemployment is high, there is never a better time to encourage workers and Singaporeans to go for skills upgrading. In fact, there is a window of opportunity that we must explore. We must use this slack period to enhance our capability and employability of our workers. This way, we will be better prepared when the economy recovers. Since last year, the Ministry has stepped up its employment assistance programmes in various ways. Programmes such as the People-for-Jobs Traineeship Programme, Work Skills Training Programme and the Self-Employment Training Programme were implemented. I would like to ask the Minister what has the feedback been on these programmes. How many workers were helped? And what more the Ministry plans to do to help retrenched and unemployed workers, particularly for this round where both blue-collar workers and executives are affected?”
“Sir, there are two pieces of legislation that CASE has been advocating. First, the Fair Trading Act to protect consumers. Second, the competition law to level the playing field for all. The Fair Trading Act is making good progress and if we should see the law enacted this year, it is no surprise. Competition law is something that I hope to see enacted also. Competition law will protect small firms from unfair competition by big firms. It also ensures that all players will have an equal and fair chance. Competition law will also benefit consumers as well. If the playing field is level, companies will be free to compete and innovate, and this will be translated into better products and higher quality of services for consumers. I hope that the Minister can share his insights on the competition law, and whether we can expect the law to be enacted in the near future.”
“Review of the Hire Purchase Act. Currently, car loan providers apply a mathematical formula called the 'Rule of 78' to most car loans. While the name seems harmless, it actually hurts car buyers by penalising those who pay off their loans early. The Hire Purchase Act covers car purchases where the price of a car is under $55,000, excluding the price of COE. Under the Act, car financiers apply the Rule of 78 and stack a disproportionate amount of interest into the early period of the loan. The situation is even more onerous for those cars priced above $55,000, where the car loans are governed by common contractual law. If they pay off their loans early, they get back only a proportion of the interest rebate. Indeed, the United States concluded that the rule was so onerous for the consumers that they have already outlawed using this rule for loans which are longer than 61 months. Britain is also reviewing the practice. I urge the Government to do likewise here. At the same time, the Hire Purchase Act should be updated with the amount of the car value which the Act covers, to widen the requirement for full rebate, or better still, make the Act to cover all car loans. The US practice for car loans can also be studied and implemented here. In the US, car loans are transparent because details of the hire purchase agreements are readily available in all the banks' websites.”
“There should be, in the first instance, the contact point of some sort, for example, a call centre that will filter out complaints. In Australia, the percentage of phone calls that are resolved without being turned into a written complaint comes up to about 95%. After the written complaint stage, some form of conciliation and negotiation should also be put in place. Most of the people would turn up for mediation. In Australia, the rate of resolution at this stage is more than 50%. Sir, it is necessary to have mediation centres and call centre as a contact point. The percentage of cases that eventually end up in the formal legal process is therefore very small. In addition to the basic infrastructure, another key part of the fair trading regime is education, ie, education for consumers and traders. A website is also essential for both information dissemination, as well as gathering of complaints. I hope MTI will give support in such an educational drive initiated by CASE or any other business organisations. Some form of publicity should also be done to inform traders of unacceptable conduct. Our media can play an essential and significant role as such. Sir, allow me to go on to the next cut?”
“Sir, the introduction of the Fair Trading Act is a major step for consumerism in Singapore. Principally, we want to introduce legislation to protect consumers, but without adding onerous burden to businesses and costs. We are confident that we can find a balance between consumer protection and business concerns. Sir, since the proposed scope of legislation was published, CASE has noticed a new tactic by timeshare companies, for example, trying to beat the proposed law. I hope to see the Act enacted as soon as possible as the longer we wait the more of such cases we may see. In January this year, the MAS started industry consultations on a proposed extension of the scope of the Act to include all financial services regulated. The consumers welcome this move. I would like to know the Ministry's assessment on how soon the industry consultations with the financial sector can be completed, and when we can expect to see the Fair Trading Act becoming a reality in Singapore. I would also like to raise two related points on the Fair Trading Act. First, the $20,000 limit. The proposed Fair Trading Act defines the $20,000 limit on the value of the goods and services. CASE has studied this and feels that if a cap is necessary, the limit should be on the compensatory amount, instead of on the value of the goods and services. Second, the infrastructure support for the Fair Trading Act. We understand that there are those who feel that there is a need to set up a Fair Trading Office to police the Act. While CASE agrees that it is not necessary at this stage to set up a Fair Trading Office, the Ministry should give the assurance that basic infrastructure support will be put in place to help consumers.”
“Sir, although we understand that the purchase and sale of cars, whether passenger cars or commercial cars, is a transaction between the buyers and sellers, I feel that there should be proper regulation for this trade to ensure there is transparency in the transaction so as to protect the consumers, because every purchase involves tens of thousands of dollars, and these are hard-earned money of our citizens. We should ask all sellers to clearly spell out all the relevant information regarding the vehicle on sale, so that there will not be future conflicts and complaints. In the past few years, among the complaints received by CASE, some one-third of them relates to car purchases. I hope that the situation can be improved. For example, some purchasers have complained that there were inherent problems with the car the moment it came out of the showroom. There were also quite a lot of complaints concerning the car financing plans. Many dealers told their customers that they would have no problem obtaining financing from the finance company, and coaxed the customer to pay a deposit for the purchase. Subsequently, they found that the finance company turned down their loan application for some reason, and the deposit was then forfeited. I suspect some dealers have been using this trick to cheat the customers of their deposit which could amount to a few thousand dollars. There should be more transparency in all these transactions to protect the interest of the consumers. 1.15 pm”
“Madam, the 2002 Labour Market Report released on Friday showed that for the whole of 2002, overall unemployment rate in Singapore averaged 4.4%. Translated into numbers, almost 90,000 residents were unemployed. Yet, when we tried to match these unemployed workers to jobs, one of the most common reasons cited by them is "too far". So, are they fussy? Or do workers really face transportation problems getting to work? I know that companies in inaccessible industrial estates, such as Tuas, have difficulties finding workers. Madam, it takes almost one hour for a worker who stays in the nearest housing estate to Tuas, ie, Jurong East, to get to the Tuas Industrial Park. So, you will see how difficult it is. Another example is the shipyard. Hence, these companies have resorted to providing private buses for their workers. This adds to business costs. Even in the instances where the workers bear the costs, the private bus fares are generally higher than the public transport options. This will reduce the take-home pay for the workers. In view of this, I would like to make some suggestions for the Minister to consider: First, I hope the Ministry consider extending and expanding the MRT network into industrial estates such as Tuas. This will shorten the travelling time for workers, which will make them more willing to take up jobs in these areas. This will also give companies there a boost and help address the issue of our unemployment situation. Second, would the Ministry also consider building additional stations along the existing MRT network where it passes by industrial estates? This was proven to be doable with the Dover station added on to the East West Line or Singapore Polytechnic.”
“When we look back at this year's budget, several years down the road, what would we see? We would see this Budget as a turning point in the re-engineering of Singapore. It will not be just another dull Budget, as described by some cynics in the newspapers. In such a difficult and uncertain environment, it is important for the Government to clearly reassure Singaporeans. We can expect a budget deficit of $90 million for financial year 2002 and our projected budget deficit is $900 million for the next financial year. Yet, the Singapore Government is contributing $100 million to top up the Medifund. This is a change from the previous instance where the Medifund was topped up only when we had budget surpluses. This is a clear way of reassuring Singaporeans who are worried about their healthcare costs. Whether in sickness or in health, in boom or in recession, and whether we have budget surpluses or deficit, the Government will help them. This is like a marriage vow! We should constantly reaffirm that the Government has the best interest of Singaporeans at heart. We should assure the workers and those who are disadvantaged that we have a strong social safety net, including appropriate healthcare subsidies and measures that will help Singaporeans cope with their healthcare needs. Only with such firm reassurances and practical economic measures proposed by the ERC, then as a nation, we can brace ourselves for the changes and challenges ahead of us. I support the motion.”
“When they are jobless or retrenched, they will not be able to enjoy any medical benefits, especially with all the turnover in jobs and instability in their jobs. Therefore, the Government should widen the coverage and improve the scheme. Secondly, all CPF members should be allowed to use their savings in the Medisave accounts to pay for the premiums for all portable medical insurance. According to the ERC's recommendations, employers should contribute at least 1% of their CPF for this purpose. But members cannot make use of this amount to pay the premium for this kind of medical insurance. Thirdly, the Government should step up its education and publicity efforts both for the employees and the employers on the merits of portable medical benefits. As union leaders, we want to see a seamless and affordable medical benefits system that is relevant to their needs, and one that will provide coverage for the workers not only during their working life but even after their retirement. Healthcare financing has a long-term implication on our national budget. Besides phasing in higher contribution rates for Medisave, the Government has to consider measures that will facilitate greater pooling of risks, such as making MediShield a compulsory basic national medical insurance scheme. Mr Speaker, Sir, a greying population means an ageing workforce. We do not want to see Singaporeans finding themselves unable to cope with their healthcare needs in the future. We do not want our older workers to be disadvantaged if employers are reluctant to hire them because of higher healthcare cost. We feel that portability in medical benefits is a good system. But Government should supplement this with other schemes. Mr Speaker, Sir, history is the best judge of successes and failures.”
“To facilitate the implementation of policy, the Government should also consider reviewing the criteria for use of Medisave to be more responsive and appropriate to today's needs. For example, to allow the use of Medisave based on medical conditions instead of the number of days of hospitalisation. Right now, many of them still have to fork out cash to pay for their treatment at the clinics. Today, 90% of the working population are covered under MediShield or one of the Medisave-approved insurance schemes. Over the past few years, MOH has improved the benefits and features of MediShield. I believe that the Government can continue to enhance MediShield to make it more relevant and responsive. However, we know that MediShield is quite near to portable medical benefits. It can provide portable medical benefits as long as the premium is paid, whether the insured is still working or out of job. However, this system has been in existence for quite some time. It does not cover specialist treatment in outpatient clinics or hospitalisation. I wonder if the Government will review or revamp MediShield in this direction. I am also concerned that more than a quarter of a million of Singaporeans have opted out of MediShield, although 90% of the people are still being covered by MediShield. There are 270,000 people who are not covered by this scheme. As one of the fundamental healthcare financing programmes, it should be made a compulsory national medical insurance for all Singaporeans so that they can have a basic medical insurance coverage for their medical needs. I feel that every Singaporean should have at least a basic medical insurance coverage, and we should make it compulsory. As union leaders, we are in contact with workers every day. There are many problems.”
“Why not send another signal to investors by cutting down business costs for two years? We hope that they can expand their businesses here, and many jobs can then be preserved. Another concern of the workers is in the area of healthcare. If we want the workers to upgrade their skills, to enhance their competitiveness, they must be assured that when they are sick, they can have some form of protection against illnesses. DPM Lee said that our national healthcare expenditure is now 3.5% of GDP, which is lower than most of the developed countries. He also said that the low expenditure was not entirely because of our efficient healthcare system, but rather due to our younger population. What worries me is that if our population has the same age profile as, for example, the UK and Japan, then our national expenditure on healthcare, based on our present spending patterns, would be near to UK and Japan. Therefore, there is another set of statistics that we should also be aware of. Our healthcare expenditure in dollar terms has increased fourfold from $1.3 billion in 1990 to $5.6 billion in 2001. Are we heading towards the problem we currently see in healthcare systems in some developed countries? In the US, many workers are not covered by medical insurance. When they are in need of medical treatment, they are in a dilemma. We are all too familiar with the three fundamental pillars of healthcare financing in Singapore - the 3Ms (Medisave, MediShield and Medifund). In his Budget Speech, DPM Lee announced a $100 million special transfer to Medifund to help more Singaporeans. He also announced the phasing-in of higher contribution rates to Medisave. My question is: what about MediShield? Is the Government looking at how MediShield can also be enhanced and modified?”
“I do not agree with Mr Tan Soo Khoon that our expenditure should not be based on past experience. We should look at our past and present situations and make the necessary adjustment. We should give our workers confidence by job creation and employment assistance. Mr Speaker, Sir, the Government has accepted the ERC's recommendations. These measures will enhance our competitiveness, nurture entrepreneurship, grow local enterprises and strengthen our human capital. But whatever benefits they may bring about, the workers are still primarily concerned with job security and a steady income. Deputy Prime Minister Lee disclosed that the investments that Singapore has attracted are expected to create 21,000 jobs. However, if the economic situation does not improve, our unemployment rate will go up from 4.4% to 5.5% this year. I understand that there are certain external factors which are outside our control. For example, will there be a war in Iraq? How will the threat of terrorism unfold? Will the major economies of US, Japan and the European countries remain sluggish? All these factors add to our uncertainty. They are beyond our control. But our people are hoping that our Government would do more in the areas where we have control over. In fact, many of my parliamentary colleagues have elaborated on how to cut down the cost of doing business in Singapore. I know that Deputy Prime Minister Lee has announced the extension of various rebates and reductions in cost for businesses to the end of this year. Many people have asked: "Why not give a firm commitment to extend them further?" After all, the deferment of CPF restoration for two years has been accepted by the workers and it has sent a clear signal to investors.”
“Whether employers or employees, they are all human beings, they are not machines or merchandise. We do not want to see the employees being left to the mercy of their employers, just like a hunter going hunting with his dog, captures his prey, then kills his dog and eats it. People in personnel departments should be open-minded. More importantly, all the people in the company should feel that their contributions and efforts put in are rewarded accordingly. Therefore, I hope the management should be foresighted enough to warn their workers to prepare for the challenges they will meet ahead of them. They should be committed in looking after the welfare of their employees and give them due protection and a sense of belonging. Mr Speaker, Sir, the theme of DPM's Budget Speech was "Seizing Opportunity in Uncertainty". I want to take the message one step further. Not only should we seize opportunities in uncertainty, we must "turn adversity into strength". Let me elaborate. The economic downturn has hit Singaporeans hard. We must help Singaporeans to restore their confidence, so that they could be at ease when faced with adversity. As a union leader, I have experienced, first hand, the impact of the downturn on our workers. Many workers and people have lost their jobs. Those who are still holding on to their jobs face salary freeze or wage cut. I am happy that the Deputy Prime Minister has announced measures to help workers and Singaporeans. I applaud these measures, especially for the assistance in manpower training. $37 million has been set aside to enhance MOM's employment assistance and training programmes aimed at generating 20,000 additional training places under the Skills Redevelopment Programme.”
“Mr Speaker, Sir, having listened to Mdm Ho Geok Choo, let me share some of my thoughts on an effective way to meet the challenge, before I speak on the Budget. In an open economic environment, we should throw away all our historical baggage. Both the employers and employees should change their way of thinking, their mindset. It should not be confined to the employees alone. I think a collective agreement is still a very effective tool in managing the relationship between employers and employees in the open economy. The problem is not in its form, but rather in whether the employers have also raised the transparency of their operations and share all the information with the workers in an honest manner. In this way, the workers would understand the terms and conditions of their employment, and would not harbour the impression that the employer is exploiting them. A collective agreement is made after negotiations where the terms therein are mutually agreed upon. It is an assurance extended by the employers and employees to one another. I want to emphasise that the labour movement in Singapore is an enlightened one. I also hope that our employers would understand that, although the iron rice bowl concept in some countries is outdated, this concept has not been in existence in Singapore at all. No one can say in Singapore that his rice bowl is cast in steel and would not be broken. Everybody's ricebowl can be broken. However, in reality, we would not like to see any employee being looked upon as a disposable utensil - one that is used and discarded when his usefulness is no more. Be it employee or employer, their rice bowls are interconnected and cannot be separated. Both the employers and employees should share the fruit of success and the prosperity of their enterprises.”
“Sir, in view of this change, will the Ministry continue to reduce the Man Year Entitlement (MYE) as recommended by the Construction 21 Committee every year?”
“Mdm Deputy Speaker, please allow me to seek clarification from Mr Andy Gan. Is he aware that Comfort is a publicly-listed company and not a NTUC cooperative?”
“Sir, I understand that these foreign workers had to incur a very high cost to come over here for employment. If our employers are not sure that they can get jobs that can last long enough to fulfil the two-year employment period, then something has to be done, to be fair to these workers who have come all the way from their home country to work here and contribute to our economy. I think the figure of 730 employers being prosecuted is quite a big number. Would the Ministry consider enhancing the penalty so that the employers would not abuse the system?”
“Mr Speaker, Sir, may I ask the Minister what are the key reasons that these employers cited for redeploying these workers?”
“61% of the employers defaulted on payments, compared with 0.8% in January-March. Although the figure is low, what is worrying is that the rate had risen gradually over the last four quarters, and up to the second quarter of this year. I would like to ask the Minister of State what the CPF Board is doing to further reduce the default rate. The present CPF PAL-internet system enables employers to submit their monthly CPF contribution details to the Board via the Internet 24 hours a day, seven days a week. All employers need to do is to just register with the Board and have a GIRO bank account. I would like to ask the Board what is the employers' response rate so far to the e-submission system and what more can be done to get more employers on board, particularly the small and medium enterprises who generally employ less than 100 workers. I hope the Ministry would consider more measures to provide greater support and incentives to these smaller employers. I understand that by April next year, all employers with more than 100 employees have to go for the e-submission system. However, I would like to urge that more time should be given to the small businesses to make adjustments. In the interim, I hope the CPF Board could also consider providing the e-submission service at the head office and the branches for employers with less than 100 employees, so that the small businesses, particularly those who have difficulties and find it too costly to set up a system, will still be able to learn how to use the system, and eventually use e-submission, instead of the traditional way of submitting CPF contributions.”
“Mr Speaker, Sir, I rise in support of the Bill. The key amendment in the Bill is the creation of an automatic charge on the HDB flats in favour of the CPF Board when a CPF member withdraws CPF funds to finance or refinance the purchase of the HDB flat. These changes are part of the broader recommendation on the CPF which the ERC recommended, and they have already been debated in Parliament. I would thus not revisit the arguments again. However, I would like to raise two key points related to the amendment. First, consumption and investments in housing. A key thrust of the ERC recommendations on CPF is the safeguarding of the CPF funds for retirement. To do so, one of the strategies is to safeguard funds withdrawn for housing purposes by limiting CPF withdrawals. However, this point seems to have been lost amongst Singaporeans. With the lower 10% cash downpayment, we see Singaporeans snapping up private properties. They do not seem deterred by the fact that the banks now have the first charge on the mortgage loans that they give. I hope that beyond these amendments, the CPF Board and the Government can do more to educate Singaporeans on the impact of these changes on their CPF and their retirement savings. This will certainly help them better plan their finances, including consumption and investments in housing. My second point is on the CPF default rate and electronic submission. The CPF (Amendment) Bill seeks to enable the CPF Board to implement electronic submission and payment of CPF contributions. With e-submission, the CPF default rate by employers can be reduced further. Mr Speaker, Sir, on 6th September, the Business Times reported that the CPF default rate had declined in the second quarter of this year. In the April-June period, 0.”
“May I ask the Minister of State how would the Ministry of Health ensure that there will be greater transparency in the healthcare and hospital charges and adjustments so as to keep the general public better informed? Is it true that the miscellaneous component of hospital bills is getting bigger, the patients are not given full details of what they are paying for or what they are being charged for? Is it also the reason that the high miscellaneous component results in the patients having to use more cash to pay their health bills than to use Medisave? Dr Balaji Sadasivan: Every patient can find out the cost of any service that he is getting from the hospital. It is mandatory for the hospitals to tell the patients what it costs. With regard to the hospital bills, hospitals have to provide a bill explaining to the patient what the costs of the services were and how he has been charged, and every hospital provides that.”
“At the end of the day, CPF changes will introduce wage flexibility that will make companies more competitive. With the employers taking a more active role, this would mean more jobs for workers, together with all the changes recommended. Only in this way can we achieve a win-win outcome for both employers and employees.”
“Sir, I hope the Government can give a clearer indication of what the new target should be when it considers the CPF recommendations. Another question I would like to ask is whether we should also set regular adjustments to Medisave contributions, like the Minimum Sum, to be raised further in future. Many workers do worry that their Medisave is not enough. Let me share a feedback I received from a union leader. She told me: "It is timely to refocus CPF and bring the focus back to retirement savings and medical. My parents had very little in their Medisave and, when they were hospitalised in recent years, they had to draw on all the children's Medisave. Fortunately, there were four of us for them to draw on. A relative of mine had all his CPF Medisave savings wiped out over a few years when his dad suffered from cancer. The old man had minimum Medisave and he has only one child." Sir, I think we need to also ensure that people have enough savings for their medical needs in future. In conclusion, Sir, I support the changes, but I urge the Government to continue to explore more ways to help the older and lower income workers who will see reductions in their CPF accounts. How will they meet their retirement needs? What is the level of CPF Minimum Sum which is adequate for their retirement? Sir, employers too must do more. They cannot let the Government just carry the can. They can actually play a much more constructive role in helping their employees adjust to the changes, particularly for the older workers. To the employer, I would like to say: do not discriminate against older workers but continue to reward them fairly for their contributions. Redesign the jobs to increase productivity and employability of the older workers and attract part-timers.”
“For example, they do not get much medical or leave benefits. This should not be the case. Employers should seriously consider to pro-rate the benefits to further attract more people to take up part-time jobs with these CPF changes. Besides the ERC recommendations, I hope the Government can consider doing more to help the lower income workers, as they work hard to earn an honest living and more can be done to help them. When the Government implements CPF top-ups or distributes New Singapore Shares in future, the older and the lower income workers must take top priority. This will make up for the reductions in their CPF as a result of the ERC recommendations. Mr Speaker, Sir, I am encouraged that the ERC studied the issues thoroughly in its report. The key recommendations go some way in enhancing the CPF members' retirement savings, especially with the 1% increase to the Special Account. The cap on housing loans will also preserve more CPF savings for members, as otherwise they may be eroded through housing loan interest payments. However, while the ERC has recommended that the Minimum Sum be raised beyond $80,000, it did not say what the new target should be, when it should be achieved, or what provisions should be put in place to ensure that it is met. We all know that the Minimum Sum is not enough. But what exactly will be enough? We need to let Singaporeans know so that they can work towards it. The ERC could have been clearer in this respect. During the Committee of Supply debate, I asked the Minister for Manpower how was the Minimum Sum derived and whether it was enough. In reply, the Minister said that the Minimum Sum is literally the bare minimum.”
“I am happy that DPM has announced the People-for-Job Traineeship Programme launched by the Ministry of Manpower last year will be extended for one more year to help older workers and workers above 40 years old to make career transitions by providing wage support. I am also very happy that the Government is now also extending this support from six months to nine months for workers who are aged 50 and above. Sir, in some respects, we should look at the CPF changes as a catalyst as we restructure the Singapore economy. The key task of the ERC must not be lost in our debate. The CPF recommendations cannot be seen in isolation. In my view, the CPF changes will spur greater labour market reforms and increase wage flexibility. These will make Singapore more attractive for investment. Thus, more jobs can then be created. But I strongly urge employers not to treat the CPF changes as just a wage cut or cost-saving exercise. They cannot and must not implement the changes in a blanket manner. I am glad that the Government, as an employer, has decided to take the lead. For deserving workers above 50 years old who face the CPF cut, employers in the private sector can also plough back the CPF savings in monthly variable components (MVC) or bonus (AVC). I am glad that the ERC proposed that the monthly income floor range for employees' CPF contributions also be raised, from the current range of $200-$363 to $500-$750. This increases the take-home pay for workers earning below $750. This will help them better meet the current needs and encourage more to take up part-time jobs, and also encourage workers to enter the workforce again. Sir, part-time workers are a group that deserves more attention and help. We know that employers generally do not provide benefits for part-time workers.”
“Mr Speaker, Sir, the CPF changes by the ERC is arguably a set of recommendations that most significantly affect Singaporeans. This is evidently so as there are 2.9 million CPF members with balances of almost $94 billion with the Board. Changes to the CPF will fundamentally influence the way we save and the way we invest. As a labour MP, the most common reaction I have come across in the last one week is why did the Government cut the CPF for older workers. Will the lower CPF contribution for workers aged 50-55, amounting to a saving for employers, make much of a difference in making these workers employable? I can understand their views. The CPF is not a magic potion, or as in the Chinese saying, "wan ling dan" that "yao dao bing chu". Perhaps, this is a key problem of the image of the CPF system. It has been so successful in the past and it covers so many areas that people have come to regard it as something that can fix all problems straightaway. Not so in this case. Lowering the older workers' CPF contribution alone does not automatically make them employable. However, we believe it will certainly make it more attractive for employers to retain and hire them. We have to view this from a broader perspective. It is part of the many schemes that the Government is putting in place to help older workers stay employable. Besides the proposed CPF adjustments, there are many schemes to help enhance the employability of older workers. For example, older workers get higher levels of funding support under the Skills Redevelopment Programme.”
“Sir, I just want to seek a point of clarification from the Minister. The Minister mentioned that the 2.3% fare increase only allows the PTOs to offset part of the projected cost increases. I would like the Minister to clarify what are the key areas of the cost increases because I would like to find out whether it is true that these cost increases are mainly from statutory costs, as stated in the SBS' reply published in the newspapers.”
“Second, on the airconditioned bus interchange. SBS has clarified that the cost of building the airconditioned interchange at Toa Payoh was borne by the Government. I am concerned that operational and maintenance cost that operators have to bear in future can be very high, and it will become a key factor for future fare increase. My question is: what is the estimated operational cost of running an airconditioned interchange compared to a non-airconditioned one? The SBS also said that it does not get any rental income from tenants at the interchanges and neither do the tenants help pay for upkeep of common areas. I have several questions to the Government: did the Government allow SMRT to get rental income from the tenants at the MRT stations? If so, would this arrangement be extended to public bus operators to offset cost of maintaining the interchange? In its letter published in the newspapers on 24th June, the SBS said that "If we are able to work with the authorities to share some of the cost of maintaining the interchange for instance, it will also not be a factor when considering future fare increases." I was surprised by SBS' statement. If the Government can defray the costs of maintaining interchanges, SBS' operational costs will surely go down, and this must certainly be a factor for SBS to consider in future fare increase. I hope that the SBS, LTA and the Minister for Transport can address the various questions that we raised in this House and those raised by the members of the public.”
“Mr Tan Soo Khoon had made a comparison with the Hong Kong situation - why Hong Kong could do it while Singapore could not. More importantly, if we do not explain clearly to our people, then more people will fail to understand and they would feel more painful, more disappointed and more worried. Sir, overall, I endorse the principle that small increases from time to time are better than one large increase all of a sudden. But to most people, I think the adjustments here and there - a little bit here, a little bit there, a little bit everywhere - and if we add up all the little bits, it is one big deal. Many people find this hard to swallow. This is a very important issue that we must rectify and find a solution. Most importantly, I hope that the lessons learnt this round can be registered beyond this round of fare increase. They too are pertinent for other service providers, especially for those who are reported to be contemplating fee increases, such as school bus operators and SingTel. I hope that they can learn the lesson and increase their transparency, and they should explain clearly to the people the rationale for their intention. Before I conclude, I would like to ask the Government a few questions. First, on statutory costs. From the public debate and public transport operators' reply, it appears that statutory cost is one of the key factors that drives up fares. My question to SMRT and SBS is: what is the extent of statutory costs in operating their businesses? Further, I understand that the Government has allowed public buses to enjoy concessions in road taxes and exemption from COE, why can the Government not exempt public buses from ERP charges? Surely, this will further cut down statutory costs and give one less reason for bus operators to increase fares.”
“So from 11th June until now, the various views have been expressed and reflected very strongly in the media. But the PTC and their operators have been keeping quiet all this time. Until two weeks ago, suddenly, they issued a long reply. My residents commented, "Such a long reply, how to read?". So, nobody knows what is actually happening. This is a very disappointing situation. We often say, what goes up must come down. By the same logic, what goes down, must come up. However, people hope that this applies only on the share market. When we talk about bus fares and public service charges, it can only go up but never come down. People find this hard to accept. We must let our people understand why this is the case. I think some sort of clarification or explanation is necessary. Transparency is very important. As in the film, "I Not Stupid", we must not be treated as though we are all ignorant people. If necessary, the authority must explain to the people so that they can understand. Let me give Members another example. On 2nd of July, there was a report in Streats where one commuter was quoted as saying, "If our people want to enjoy a world-class transport system and not willing to pay more, then it is a joke. Because we all know that there is no free lunch." Sir, I believe that when prices are increased, if it is explained properly, our people will understand the situation better, and thereby be more amicable to such additional burden. We must not ignore the feelings of the people. We must explain to the people the circumstances why it is necessary to take certain action. The bus operators must also tell the people clearly, whether they have done their best to improve productivity to save cost.”
“Why can they not postpone the increase? Many people feel that the timing is wrong. Timing is everything, especially when we have many bad news. The Ministry of Manpower has also told us about the highest record of unemployment in the second half of the year. The unemployment rate will be raised from 5% to 5.5%. To Singapore, which has been enjoying full employment for many years, this is a hard reality to accept. At this time, the announcement of fare increases will give rise to more concern and worry on the part of the people. From another angle, I feel that PTC has not done very well to a certain extent this time round. In the past, whenever the fares were increased, some form of rebates for those who have to transfer from one service to another was given to compensate for the increased fares. But this time, they have not given any discount. I do not know why they cannot do it this time. To the ordinary workers, if they have to take a shuttle bus to the MRT and then hop on to another shuttle service to get to the final destination, the effect on them is not 3 cents, but 3 cents plus 4 cents plus 3 cents, ie, a total of 10 cents. So, to those who do not know how to use the ez-link card, such as the senior citizens, then it is 10 cents plus 10 cents plus 10 cents. So two ways, it is 60 cents. I do not understand why we cannot arrange for some rebates for commuters who have to transfer from one service to another. Lastly, CASE has always been advocating strongly and consistently that there must be transparency in our commercial organisations. The PTC announced the fare increases on 11th June. So far, we have not heard further from them. No explanation has been given.”
“I was particularly impressed that in 1999, the bus operators gave a 5% rebate to all commuters. Then, in 2000 and 2001, new fare stages were added, and commuters on feeder services had to pay 10 cents more respectively. Fortunately, with these moderated adjustments, the operators are still making money. The question is thus: why increase when they continue to make such high profits? I think this is one question that many people are asking. I believe that many people are not happy with the work of the PTC. But, of course, we must also calmly look at the contributions by the PTC over the past few years. We must look at the facts objectively. Look at these facts: - For those who use farecards, there has been no increase in fares for passengers travelling short distances below 14 fare stages, in airconditioned buses since 1990, the fares remained between 60 cents and $1.20. - Over the past decade, fares have gone up primarily for long distances, so as to better reflect costs and cut down the indirect subsidy of short distances over longer ones. - When fares go up in the past, those who use farecards continue to enjoy transfer rebates, thus minimising the impact of fare increases. - In this round of adjustments, senior citizens travelling longer distances in the MRT actually pay less, from 70 cents to 64 cents. In my view, the PTC has done a reasonable job drawing the line between profitability of transport operators and maintaining public interest, and allowing the operators to remain profitable without profiteering. But this begs a further question - last year, the PTC turned down the applications to increase fares due to the prevailing economic conditions then, why can it not do so again this year? After all, the economic situation has not really improved that much.”
“Therefore, there is no need to rush into fare increases at this time of recession. The article commented that the thing that hurt the commuters most was the Government's failure to see beyond rational argument and its inability or unwillingness to empathise with the people. These are strong words. In another newspaper, Streats, a similar view was also reflected. It was felt that in recent years, the public transport system seemed to have lost its original direction. The writer said that fare prices and services should not be entirely determined by cost and profits alone. Should public transport operators be entirely profit-oriented? The writer claimed that our public transport policy has lost its direction, and this is a question that many people have raised and, I think, it is necessary for us to study the issues closely. Undoubtedly, our public transport operators are listed companies. According to the public, they are making money, especially, recently, when the whole economic environment is bad, they are still profitable companies. Sir, let us look at the past records. There were no changes to the fares from 1982 to 1990. Between 1990 and 1996, the average fare went up by 1.3%. In 1996, however, it was reported that SBS and TIBS lost $9.6 million and $5.6 million respectively. Thus, in 1997, PTC agreed with the bus companies to increase the fares by 5 cents across the board. But in order to reduce the impact, the 1997 adjustment was only confined to the non-airconditioned buses only. For those who took airconditioned buses and paid with their fare-cards, they did not have to suffer the fare hike. As for MRT, only those who travelled with single journey ticket needed to pay 10 cents more. In the next three years, 1997-2000, the fare was not adjusted.”
“But the problem does not appear to be confined to senior citizens. Students are also waiting for their ez-link cards to be issued. Second, the teething problems of the ez-link card have not been fully resolved. Judging from various feedback, the problems with the ez-link cards faced by commuters are very real. My residents told me that adjusting the fares at this moment is unfair to the senior citizens, because many of them have yet to receive their ez-link cards they had applied for. This is to say that we are forcing the senior citizens to pay more when they use the public transport system. Last week, it was announced that provisional ez-link cards would be issued to the senior citizens. I am not sure whether this can effectively solve the problem of these senior citizens. Moreover, the students are still waiting for their ez-link cards. Under such circumstances, many citizens are not able to use the ez-link card, and when they continue to use the TransitLink card, they have to pay higher fares. To them, the increase is not 3 cents but 5 cents. To those who are not used to the automatic system, they have to pay cash and, hence, to them, the increase is 10 cents. If we can wait until the ez-link card is completely in place, then make the fare adjustments, the inconvenience to the people will be reduced. Secondly, we must balance between the transport companies' profits and public interest. People, in general, are unhappy with the fact that the public transport companies are asking for fare increase despite the fact that they are making huge profits and thus no urgency to increase fares. There is an article in the Straits Times suggesting that public transport should be a service to the people and not for profit.”
“Mr Speaker, Sir, in the face of globalisation of the economy and jobs are under threat, we are treated with waves of increases in prices and charges. Accordingly, this round of bus and MRT fare hikes gives rise to worries and concerns to the people. We should have no difficulty understanding why the people have so much grouses and unhappiness, despite the fact that the Consumer Price Index (CPI) has been dropping over the last six months. So, to a certain degree, the total cost of living has not been as bad as what many people have perceived it to be. But the more important thing is that the Government must assure the people that when times are bad, and when the people are pressurised with a rising cost of living, it remains pro-people and cares for the people. In this round of public transport fare increase, we can see that a lot of people are very unhappy. But the fare increases have already come into effect from 1st July. Any amount of argument and deliberation will not able to turn back the clock. It is a done deal. Or is it really so? In my view, there are four lessons that we should learn from this round of public transport fares increase. They are: (1) Implement only when all systems are ready. (2) Balance between profitability and public interest. (3) The timing is everything. (4) The need for greater transparency. Why do I say the systems are not in place? I say no because of two reasons. First, the implementation of the ez-link card is not fully on track. Senior citizens who have applied for the card have not yet received them. TransitLink only decided last week to issue interim cards to senior citizens. I am glad it has done so, as otherwise the senior citizens would have no choice but to pay higher fares using the existing magnetic farecards.”
“Sir, when was the scheme last reviewed? Would the Ministry not consider that $800 is actually too low particularly for families who have more children or ageing parents to support? Definitely, we should consider using per capita family income instead. And would the Ministry consider making available the list of those schools with additional Financial Assistance Scheme for all the MPs so that they can better serve and help their residents who need this scheme?”
“Granted that the film may not be seen by a wide audience here due to our censorship guidelines, my question is: can such films, however, be produced here for foreign audiences?”
“Sir, MITA's vision is to develop Singapore into a global city for information, communication and the arts, while enhancing our Singaporean identity and multicultural heritage. I read from the Straits Times Life! section on 10th May that the Ministry has an interesting approach, that is, arts plus business plus technology provide the catalyst through cultural capital to build a creative and connected Singapore. Sir, one of the key goals of the Ministry is to develop Singapore into a global media city. I must commend the Ministry for making significant progress in this area. Today, major media names, like BBC, Dow Jones and satellite broadcasters, like HBO, Walt Disney, ESPN and Discovery, all have facilities in Singapore. I would like to ask two questions. First, what is the Ministry's assessment of the progress of Singapore's development as a media city? Is the Ministry monitoring closely the developments in other countries? I am particularly impressed by the rapid growth of Dubai as a media hub in the Middle East. It launched a hi-tech, multimillion dollar Media City in January last year, as part of the plan to make Dubai the region's information and IT capital. Is there anything that the Ministry can learn from Dubai's rapid growth as a media hub? Second, the issue of censorship. Does our censorship policy hinder our growth as a media hub? Let me cite one example. We have been trying to develop Singapore's film industry. Over the years, we have had hits like "Money No Enough" and "I Not Stupid". We also had some other misses. Recently, there was a critically acclaimed film "Lan Yu" that was shown at the Singapore International Film Festival.”
“Mdm Chairman, I will file another question to get a full answer from the Ministry. I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $4,896,474,400 for Head K ordered to stand part of the Main Estimates. The sum of $1,895,299,100 for Head K ordered to stand part of the Development Estimates. Head L -”
“Is it not expensive to pay for an average of 60 cents for a cold drink, and if I heard it correctly, the Parliamentary Secretary said the survey was conducted in September 1998? Is there any survey conducted recently? Whichever system the school adopts, how are we going to ensure that they really charge reasonable pricing?”
“Mdm Chairman, I beg to move, That the sum to be allocated for Head K of the Main Estimates be reduced by $10 in respect of Code KC 1500. (In Mandarin): The Ministry of Education has a long-standing policy where stalls in school canteens are allocated to needy Singaporeans so that they can earn a decent living. This is a good policy that kills two birds with one stone as it serves to provide good and affordable food to the school children and, at the same time, help the poor and needy. However, this kind of arrangement seems to have stopped. Has the Ministry changed its policy? If so, why? As it is today, we are seeing more and more schools shifting to the tender system, and the successful bidders then subcontract the canteen stalls out to third party stallholders. The stalls are no longer being allocated to the poor and needy. With a large number of schools coming under the Programme for Rebuilding and Improving Existing Schools (PRIME) and the merger of schools, I am concerned about the plight of affected stallholders. What assistance does the Ministry extend to them? What arrangements have been made for those who have been dropped? Many parents have also an additional worry as school canteens are increasingly being run by contractors, or when new technology such as smart cards are introduced, would the level of food prices be maintained or increased? Does the Ministry monitor the prices regularly and try to prevent the prices from being inflated?”
“I beg leave to withdraw the amendment. Amendment, by leave, withdrawn.”
“Mdm Chairman, I beg to move, That the sum to be allocated for Head K of the Main Estimates be reduced by $10 in respect of Code KB 1500. Madam, on 26th April this year, the TIMES Higher Education Supplement, a UK publication, ran a report "A Hard Sell For Easy Money". According to the report, the root of the problem of commercial schools here is that Singapore's three universities provide places for no more than 15% of 18-year olds. The alternative of going overseas to be educated is expensive. The remaining option is thus to enrol at a commercial school offering an overseas degree backed by overseas institutions. The writer said, "All you need to open up a school in Singapore is approval from the Ministry of Education (although you can call yourself a "consultant" and get away without registering)." It seems so easy like "bo jeng hu" . I would like to ask what is the Ministry's criterion in approving the registration of commercial schools. Are these schools monitored after registration? Does the Ministry monitor the number of students taking lessons in these commercial schools? Madam, another issue I wish to raise is that there have been many suggestions that Singapore universities can collaborate with Chinese universities to provide joint degree or Chinese MBA programmes. These suggestions are sound, as it will not only help establish networking, it can also potentially help more Singaporeans understand China better and strengthen our ability to ride on the China growth train. However, I was told that the NUS has decided not to continue its Chinese MBA programme. I would like to ask whether the Ministry will review this. 6.00 pm”
“This is a big change as students of the department today are used to studying double majors, namely, Chinese Language (Hanyu) and Chinese Studies (Hanxue), which would give them a reasonably all-rounded exposure to Chinese language, culture, history and philosophy. Many people worry that, with such a big shift, graduates of the future would be sufficiently less proficient in Chinese to be Chinese language teachers and journalists. One practical suggestion is that there should be a scheme for undergraduates who intend to be Chinese Language professionals, such as teachers and journalists, etc, to be exempted from this generalist approach and opt for the present system. They should be allowed to study double majors, ie, Chinese Language and Chinese Studies (Hanyu and Hanxue) like the previous batches. At the same time, the Chinese Studies Department should continue to offer courses to others who would like to study it as a single subject.”
“Sir, there was a recent newspaper article in the Straits Times "NTU Grads: Is there a difference?" dated 8th April which reported that there is a difference between NUS and NTU graduates. According to the report, local companies surveyed found that NUS graduates write and speak better, but NTU graduates are more creative. Are these true or are they just perceptions? The more critical question is whether it is writing, speaking skills or creativity, have our universities sufficiently prepared our graduates for the new economy? Other than students, I share the concern of the other Members, with the transformation of the university, what has the impact been on the academic staff? Has the rapid changes in the universities, particularly the NUS, affected the staff morale? This is a critical issue because the morale of the staff may affect the A third issue I want to raise here, which is my main concern, is the role of the Chinese Studies Department of the NUS, guo da zhong wen xi. Here, in Singapore, the Chinese Studies Department plays a key role in nurturing Chinese language teachers and journalists. Would the Ministry want the NUS Chinese Studies Department to continue this traditional role in future? The new broad-based education system to be implemented in the NUS emphasises an all-rounded general education, that means, undergraduates are encouraged to study a broad range of subjects and would learn about each subject in lesser depth. In this case, my worry is that undergraduates in the Department of Chinese Studies would study only a single Chinese major plus other non-Chinese subjects.”
“We need innovative ideas for teaching and learning, but, more importantly, we also need them for testing and assessment. Innovation in learning and teaching of the Chinese Language will not be effective without innovation in the assessment methods.”
“Sir, some Singaporeans still perceive Chinese to be dull and difficult to study, and the Chinese teachers to be rigid, inflexible and their teaching methods outdated and uninteresting. In fact, this has improved as new teaching methods were introduced, but image problems appear to persist. Today, more and more Chinese Language teachers, as what we understand, employ creative and lively teaching methods to cater to today's students. My key concern, however, is that MOE has set too many restrictions on the assessment of the subjects in primary and secondary schools. Some examples of irrelevant and outdated contents, such as standard letter-writing format, unrealistic composition topics, were still enforced by MOE and the schools. Sir, to enhance the effectiveness of teaching and learning, there is a need to review the assessment methods. For example, in many secondary schools today, "ciyu jieshi" is still a key component of test and CA for Chinese Language, which request the students to write out word by word from memory the meaning of the specific vocabulary. The way we set the test makes learning of Chinese as if memorising by heart the book of vocabulary. This has not only demoralised and made the learning of the Chinese Language tiresome but also hindered the ability of the students to learn the Chinese Language in a more creative and interesting way. Many students end up really hating the Chinese Language. Sir, today, we also have many principals sitting in the public gallery. I really hope the MOE and the school principals will consider this seriously. The examination and testing formats should be closely linked to the desirable learning outcomes.”