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 12 of 16.
“Sir, the Jack Neo movie "I Not Stupid" was a big hit. On the surface, "I Not Stupid" is a light-hearted story about three boys from different social backgrounds who find themselves branded stupid and lazy all because they are EM3 students. But, through their interactions with their friends and family, we come to see the pressures children and adults face everyday. Many parents who saw the movie identified with the pressures that their own children face in schools. For me, one of the most emotional scenes of the movie was when Kok Pin, the under-performing student, wanted to commit suicide because he could not cope with academic pressures. It may be an isolated and extreme example, but it has happened in real life. Are these pressures real? Sir, the Far Eastern Economic Review of 9th August 2001 reported that in the year 2000, our number of new cases of young people visiting psychiatrists at Government clinics was 2,491, and half were of primary school age. The number has doubled compared to 1990. What can be done to help ease the pressure on students in schools? There are no easy answers. But the Ministry of Education must monitor the situation very closely. We must not wait for any more actual and tragic cases to happen before we spring into action.”
“Sir, in the February issue of Readers' Digest, there was a report that cigarette companies are targetting young Asian women and teenage girls in a campaign to persuade them to take up smoking. I was troubled by the report. Nowadays, when we look around, we see more smokers among our Singapore youths, particularly young females. Most female smokers smoke with friends and they perceive smoking as socially desirable. In Singapore, tobacco taxation has been used to discourage smoking. The tax has been adjusted to increase from $180 to $210 per kg of cigarettes. The tax increase, perhaps, of course, will further deter smokers, but more needs to be done. 6.30 pm I urge the Ministry to step up its efforts to tackle the problem of youth smoking. In the United States, 90% of all adult smokers report that they began smoking before the age of 18. Most researchers agree that prevention should begin early and continued intervention should be provided for young people. If tobacco companies focus their advertising to encourage young women to take up smoking, we too, the Ministry of Health, must also step up our drive.”
“Sir, as reported in the Business Week, 27th May issue, the American National Mental Health Association estimates that 19 million or one in every ten adults suffers some form of depression in a given year. The total retail sales of the anti-depressant medicine in year 2001 alone was US$12.5 billion. Why I mentioned this is because, Sir, we are not much better. Our Annual State of Health Year 2000 Report, for example, cited a study on depression, that found a prevailing rate of 8.6%. The number of new cases of young people under 18 visiting psychiatrists in our Government clinics also doubled from 1,126 in 1990 to 2,491 cases in the year 2000. Sir, we have done quite a bit for the promotion of physical health. I think now we need to do more in preventive mental healthcare. I would like to ask the Ministry, whether it has plans to do more in mental health promotion.”
“No doubt, there are many people, particularly the elderly ones, who are not computer savvy. They cannot make full use of this service. I urge the Ministry of Health to do more to reach out to these elderly people and their families and educate them on such health-related issues.”
“Sir, in March this year, the Ministry expanded its Primary Care Partnership Scheme (PCPS) to provide subsidised dental and primary care to low-income elderly Singaporeans, and extended the scheme nationwide. It was a significant step to bring affordable healthcare closer to low-income elderly Singaporeans. The implementation was unfortunately not given enough publicity. Not many people know about it. As other MPs have mentioned, the general impression among the people, particularly the old folks, is that primary healthcare is very expensive and not easily accessible. Some are even afraid to seek treatment when they are sick. It is therefore necessary to allay their fears so that they do not have to worry so much about having to pay exorbitant medical fees that deters them from going to the doctor when they are sick. Let me cite two examples. The ElderShield scheme will be launched later this year. It is an affordable disability insurance scheme that provides insurance coverage to Singaporeans aged 40 years and above who require long-term care. It is a significant step in looking after the medical needs of elderly Singaporeans. However, after the initial coverage over the media when the scheme was announced, we have not heard anything about it thereafter. The vast majority of our elderly people in Singapore do not know about the scheme. Secondly, the Ministry of Health and the Health Promotion Board's websites have a wealth of useful health-related information. For example, I found useful materials such as "Ten Tips to Stretch Your Health Dollar", and a section dedicated to elderly health issues. This information must not just sit in the websites. There must be some ways to bring them to the elderly Singaporeans and, more importantly, to their families.”
“Apart from MediShield, would the Ministry consider more Medisave-approved medical insurance schemes offered by private insurers to make the proposed portable medical benefits scheme more responsive to their needs?”
“Sir, our healthcare system is based on Medisave, MediShield and Medifund. They reflect the principles of individual responsibility through Medisave savings, shared risk-pooling through MediShield, with the Government providing a universal layer of safety net through Medifund. These three schemes ensure that Singaporeans will have access to quality medical care. Sir, in a way, the MediShield scheme is a portable scheme that has a wide coverage. Although it has been continuously fine-tuned and improved after it was implemented in July 1990, I would like to find out if the Ministry plans to enhance the scheme further. I have four specific suggestions. First, bring more Singaporeans under MediShield coverage. The scheme is voluntary and Singaporeans can opt out of it. I understand that quite a big number of people have actually opted out. Should we make it compulsory? What is the number of Singaporeans who are not covered by MediShield or any of the approved CPF medical insurance schemes? What more can be done to bring more Singaporeans under such coverage? Second, include enhanced coverage of non-working spouse and children. This will allow a CPF account holder to cover his wife and the whole family under the insurance scheme. Third, under the present system, the older members have to pay a higher premium. Would the Ministry consider pre-funding features for the MediShield scheme? Fourth, enlarging the pool of approved medical insurance schemes, so that more insurers can build portable features into the basic schemes. This will facilitate the implementation of portable medical benefits.”
“Does the hon. Member suggest that MNCs like Carrefour should take over?”
“Sir, I would like to thank the Minister and the Minister of State for their comprehensive answers and their reassurance. I beg leave to withdraw the amendment. Amendment, by leave, withdrawn.”
“Sir, last year, the number of fatal industrial accidents in Singapore was 52 cases, ie, an average of one per week. The total number of accidents has also gone up to 3,790 cases last year. I think we have to work harder to bring this figure down. On the basis of our tripartite cooperation, we have already raised safety consciousness among our workers in the work sites and much improvement has been achieved in our occupational health and safety standards. But I think there is still room for further improvement. MOM should have more comprehensive plans to prevent industrial accidents from happening. Recently, we read in the newspapers that there are a number of workers falling to their death from a height, and there seems to be a rising trend in this type of cases. MOM should also do something to find remedies to prevent such incidents from happening again. Today, the work environment is so different from the past. Work site is not confined to factories, and many union leaders have pleaded with us to raise the issue with MOM to change the definition under the relevant legislation, to extend the coverage of occupational health and safety beyond the confines of the factories to cover all workplaces.”
“Under the system, the employers and employees put aside a certain amount of money, say, from the performance bonuses when the company is still doing well and in good health. The money is vested in their employees' names over a period of time. It could be in the form of unit trust. Over the years, it will be gradually built up. Then, when the worker is retrenched, the fund can help the worker to tide over financially until he finds a new job. Such an arrangement does not add to the financial burden of a company during retrenchment, and it is portable. The fund can be built up as the worker moves from job to job. In the current system, service with a previous employer does not count for retrenchment benefits. I - and I am sure many workers - would like to know the Ministry's thinking with regard to our current retrenchment benefits system, and the practices. Does the Ministry acknowledge these weaknesses? What is the Ministry's thinking on how we are going to improve the system?”
“Sir, workers are badly affected when they are retrenched. To help them tide over a difficult situation, it is necessary to give the affected workers some form of retrenchment benefits. Recently, our retrenchment benefit system has come under scrutiny. Are there any weaknesses with the present system? I think the answer is yes, there are. While the law states that those with more than three years of service can claim retrenchment compensation, the payment of such compensation is not mandatory, neither is the sum. Indeed, we know of cases where workers are retrenched without compensation in non-unionised companies. 1.45 pm The present system is unfunded, which means no funds are set aside for retrenchment. When the time comes, the company looks for money to pay for these retrenchment benefits. This causes a drain on the company's financial resources, and even endangers the jobs of the remaining workers. For example, it is possible that a company is able to pay all the retrenchment benefits to the workers who are laid off first, but yet still finds that it is not viable and ceases operation. The workers who remain after the first round of retrenchment, who may be the better lot, end up with nothing at all. Further, as business cycles become shorter, if we stick to the approach that workers with less than three years of service are not entitled to claim any retrenchment benefits at all, we will have problems because there will be more such workers who are under this category, as the job market will get more volatile. One possible suggestion put forward by some of the union leaders is an enhanced bonus system.”
“If we look at the survey done by the Ministry of Manpower about two years ago, it says that 40% of those women who wanted to go back to work could not go back to work because they said that there was just not enough part-time work. That means that if there is more part-time work available, then, obviously, they would want to come out to work. And it is not just a question of them coming out to work in order that they can buy more ---”
“On the second point of image, this is a serious problem because, if we were to look at jobs in the marine sector, it is usually categorised as jobs that attract the three Ds - demanding, dangerous and also dirty. Sir, I do not know whether any Member in this House has gone to a shipyard. But if you have gone to a shipyard, you will really understand what working in a shipyard means in the marine sector. Can we imagine a worker coming for a job interview in a shipyard and, for the first time, looking at the work in the shipyard? Most definitely, the worker will get very frightened and worried. So there is clearly a need for us to try and improve the image of jobs in these sectors which workers do not find attractive at all. For instance, we can say that the safety record in the marine sector has improved considerably, so there is no fear for people to work in the shipyards. Safety is taken care of. There could also be an orientation programme, etc, to get them acclimatised to work in a shipyard. We really have to do a lot more in order to enhance the image of jobs in these sectors. My third point is about flexibility - flexibility to take into account the needs of people in different lifecycles. We have heard what the Deputy Prime Minister said a few days ago. He said that we are very much a patriarchal society. Women have to perform certain tasks and we see a lot of women staying at home. But there are still many women who want to come out to work. As the jobs become more intermittent and there is less job security, we will find that a lot more women will have to come out to work in order to supplement the family income.”
“6 years in 1991 to 37.8 in 2001. The pool of workers aged 40 years and above has also increased by 90%, from 31% in 1991 to 43% in 2001. Clearly, if jobs are still being structured and designed in a way that only take care of the needs of a younger workforce, the older workers will find it very difficult to do the job. Let me give an example of a resident who came to see me. She is in her 50s and she is working in a hospital. She told me that her job involves having to take care of 7-8 patients in a day, cleaning them up and bathing them. She feels that, very soon, she will not be able to do that job and she will be sacked, because she will not be able to perform up to standard, as it is a very physically demanding job. In the course of my work, I also came to know of another worker who works in a factory producing TV mainframes. Her job requires her to move the mainframe from one workbench to another workbench for a minimum period of eight hours. She had worked for 10 years, and she said that she does not think she can continue working in that way anymore, because it requires her to stand and to carry these heavy mainframes from one workbench to another. She is really looking forward to the day when she gets retrenched and gets her retrenchment benefits, and she can take a break and look for a lighter job more suited for her age. Sir, I do not believe that such jobs cannot be redesigned to make it easier for people to work. If we do not look at this issue, and then we make it very difficult for Singaporeans to work and allow employers to tap into an everlasting pool of young foreign workers, there will be no incentives for them to redesign jobs to meet the needs of older Singaporean workers.”
“Does the Ministry have any plan to amend the legislation to facilitate greater workforce flexibility? I urge the Ministry of Manpower to do more to encourage companies to adopt flexible work patterns and flexible working hour arrangements that will strengthen their competitiveness and enhance their employees' employability and welfare. The labour movement will support flexi-work arrangements, provided certain fundamental principles are adhered to. For example, it should not solely be a cost-cutting measure. Rather, it should make the company more productive and the gains must be shared with the workers. We do not want to see a significant swing in the workers' income. Clear guidelines must also be given. I urge the Ministry of Manpower to do more to encourage companies to adopt flexible work patterns and flexible working hours that will strengthen their competitiveness. Mdm Halimah Yacob (Jurong): Sir, over the last few days, we have heard quite a number of points made about workers being fussy about jobs. Yesterday, the Minister said that there are jobs in the marine and hotel sectors, for instance, but there are no takers because workers are fussy. That may be one perspective. On the other hand, I want to offer another perspective, ie, basically, it is the way the jobs are designed that makes it very difficult for workers to work in these sectors. We seriously need to look at this area of how to redesign jobs for three reasons: one, is the aging workforce; second, the negative image of some sectors; and, third, the need for flexibility to accommodate different life cycle needs. Let me just elaborate on the first point, ie, the problem of an aging workforce. If we were to look at the median age of workers, we will notice that it has increased from 33.”
“Sir, there are many advantages of flexible work arrangements. Through flexible work arrangements and flexible working hours, other than pro-family and enhancing the employees' welfare, more importantly, such arrangements can actually strengthen the company's competitiveness and workers' employability. On the part of employers, however, it seems that they are pushing for flexibility more on the basis of cost savings. As a labour MP, my view is that, while there may be cost savings, they need not necessarily come from wage cost. One good example is ST Aerospace. ST Aerospace had, with the endorsement of the MOM, implemented a scheme of compensatory time-off. The exercise involved the union very early in the development. It also incorporated safeguards to check against abuse, eg, half yearly reviews to see if the scheme could be improved further. At the same time, there was ample communication to ensure that all workers understood the implications of the changes. Under the scheme, the company releases employees on full pay when they are not needed at work. These employees make up the credited hours and time off from their future overtime. The workers continue to receive regular pay while having flexibility in their time schedules and enjoy more leisure time. The company is now able to improve its competitiveness, with a manpower deployment plan that was more aligned with the job schedule. This enabled it to free up its resources so that it could garner more jobs. The gains in profits arising from this new arrangement were also shared amongst the staff. I am aware that KK Hospital is another good example that also has good flexible work arrangements. However, todate, the examples I have cited are the exceptions rather than the norm.”
“Since employability and skills are inter-related, I would like to suggest that we allow our workers to accumulate and bring forward the unused portion of their 4% employer-based annual training budget, like the way we bring forward our unused annual leave entitlement. I would propose that MOM look at other countries' best practices. We could tie up with our polytechnics and Institutes of Technical Training, to work out some training possibilities. Many countries are constantly searching for new ways to do things better, and some of them have already gone ahead of us. For example, in the case of Sweden, the government sets up an Individual Training Account (ILA) for each of their workers. The individual worker can decide how much he wants to put into this account and how much to draw from this account and for what purpose. Employers are encouraged to contribute to their employees' ILAs. Such contributions are tax-deductible, and amount to 10 percentage points of their payroll tax. It may be useful for us to consider adopting other countries' measures if they are applicable to our local situation. We need to find ways and means to enhance our global competitiveness.”
“I am glad that Government expenditure in the Economic Development sector will continue to emphasise worker training and upgrading. This year alone, there will be 100,000 training places provided under the Skills Redevelopment Programme. The workers who are most vulnerable to retrenchments during an economic downturn are the older ones. They are most at risk of remaining unemployed even when the economy recovers, because some industries which they were working in may be relocated to other countries where the business cost, particularly labour cost, is much lower. Fortunately, over the past few years, quite a lot of older workers have started to accept the concept of retraining, and have actually put in efforts to upgrade or re-skill themselves. The increase in training allowances for older workers could have helped to a certain extent. However, the important consideration is not so much on how many workers have undergone retraining, but more on how many have gained re-employment or have escaped retrenchment because of their retraining. This is what matters. Has MOM any plan to encourage our employers to identify the new skills or the fields of work that would be required in the future, so that we could match the workers' training with the relevant skills and know-how to ensure that the retrained workers would not be wasting their time and our resources on acquiring skills which are irrelevant or obsolete? While we urge our workers to adapt to change, we must not forget also to get the employers to change their mindset and be more positive towards the older workers. In what way can we strengthen our efforts to help our workers to enhance their employability?”
“How will the Ministry further strengthen our efforts to help the retrenched workers and the older workers?”
“Sir, in August 1999, the Manpower Ministry launched Manpower 21, a blueprint to transform our workforce to meet our future manpower needs, enhance our competitiveness and minimise structural unemployment. Many developments have happened in these three years. We see record numbers of workers losing their jobs. However, a close study of the Manpower 21 blueprint again shows that its objectives are as valid today as when the blueprint was launched. For example, the vision of Singapore as a talent capital is still relevant. An area that I wish the Government to strive to do better is the accurate projections of future manpower needs in the various sectors. This is crucial, as otherwise, workers may not choose the right skills to be trained in. I would like to ask the Ministry of Manpower for its assessment of the implementation of the Manpower 21 blueprint. How has the economic recession affected the implementation of the plan? Is the Ministry satisfied with the progress of lifelong learning? What more can be done? The latest preliminary estimates by the Ministry show that total employment contracted by 16,100 in the first quarter of 2002. It was the third consecutive quarterly decline in employment. The seasonally adjusted overall unemployment rate was 4.5% in March 2002. The Ministry has stepped up its employment assistance programmes such as People-for-Jobs Traineeship Programme, Work Skills Training Programme and the Self-Employment Training Programme. All these will help, but I think we need to do more. Such efforts should also continue even as the economy recovers in the near future, as the jobs that were lost might not come back. In the Manpower Minister's own words, it could be a "jobless recovery".”
“However, the response from employers is not forthcoming. One reason is that employers perceive that such a system would be more costly. I would like to remind the employers to treat workers as stakeholders. Companies have an obligation to stakeholders and should not reduce its corporate responsibility to enhance the welfare of their employees. I would like to ask the Ministry of Manpower what more can be done to push for a more widespread implementation of a portable medical benefit system in Singapore.”
“Sir, the problems faced by older workers have come under much spotlight and discussion lately. Employers, it seems, are less willing to hire older workers. Why is it so? One key reason is because of the higher medical costs. Employers are not willing to incur higher medical costs associated with the older workers. One possible solution that has been suggested is that of the medical benefit system. The system can provide a worker with portable and continuous coverage during his working years, and extending into even his retirement. It can complement and build on existing schemes such as Medisave and MediShield. It helps workers to save for future medical needs. Most importantly, under the scheme, the worker does not lose out when he changes jobs, even if he develops medical conditions. At the same time, there will not be unnecessary cost burdens to his employers as he ages. The scheme can be multi-tiered to provide a compulsory basic level of coverage at the national level with affordable premiums. The NWC has advocated that Singapore move towards a portable medical benefit system. As a labour MP, I can clearly see that such a portable scheme will benefit workers, as it provides all workers with continuous medical coverage without affecting their employability. In fact, with the economic downturn, many older workers realise the hard reality of the existing employer-based medical benefits that they have. It is more like a cheque that, when they need to cash it, the supporting account could have been terminated. It is something that is unreal. Therefore, "a bird in hand is worth two in the bush". Thus, more and more union leaders have accepted that portability is a more effective way to retain the workers' medical benefits.”
“Does the present system lead to an over-consumption or over-investment in property? If this is the case, then should the Government review our housing policy and consider granting Singaporeans with other housing options, such as rental flats? Another idea hotly debated, in public and the media, is to have a lower CPF contribution rate for older workers so that they remain competitive. I would like to ask the Ministry of Manpower for its assessment of the situation. Should the CPF contribution rate be cut for older workers, what will be the impact? Can the Ministry share with the House the different extent of impact should the CPF contribution rate be lowered at various rates for workers of different age groups, for example, 40, 45 and 50? For example, should CPF contribution rate be reduced for workers above 40, 45 or 50 years old, how many of them will have difficulties servicing their housing mortgages? Would they be able to save enough CPF for their old age and medical needs? Sir, CPF is fundamentally for old age, medical expenses and basic housing. We have to continue this system around these core objectives. We have to be extremely careful in suggesting changes to such a system.”
“Sir, I beg to move, That the sum to be allocated for Head S of the Main Estimates be reduced by $100. Sir, in his Budget Speech, DPM Lee gave the assurance that any changes we make will be done very carefully, after full consultation, and without causing disruption, either to CPF members or to the property market. This assurance was timely because there have been many discussions on the possible changes to the CPF system and such discussions can be easily misunderstood, if not seen in the full context of the discussions and consultations. I would like to raise the following concerns based on feedback I have received from discussions with union members and leaders. First, the CPF Minimum Sum. The Minimum Sum helps CPF members set aside sufficient savings to support a modest standard of living after retirement and enables them to remain self-reliant. I would like to know how, and on what basis, does the CPF Board determine the adequacy of the Minimum Sum. Based on the current CPF Minimum Sum of $70,000, a CPF member would have $537 monthly from age 62. Is this sum adequate? One concern is that the sum will be much lower if a member pledges part of the Minimum Sum in property. Second, because of the CPF system, we have one of the highest saving rates in the world. Yet many are still worried that they do not have enough cash for retirement. Recently, many have raised the concern that one of the possible causes of this is because CPF members invest too heavily in property. They become asset rich, but cash poor. However, there was also recently an analyst's report in Business Times on 1st of May that there is no over-investment in housing. I would like to ask the Ministry of Manpower for its assessment.”
“The Government introduced a rebate on green vehicles in January 2001 for a period of three years to encourage the use of electric and hybrid cars in Singapore. Is this measure effective? Some 67,000 cars were registered in Singapore last year, out of which only 13, or less than 0.2%, were green cars. There seems to be no attraction in this. From the pricing point of view, after the rebate, a 1.5 litre Toyota hybrid car costs $134,488. That is about 60% more than a Toyota Corolla of the same engine capacity, even after the rebate. Another example is that a 995 cc Honda hybrid car costs about $141,000. For less than that price, a motorist can buy a 2.3 litre Honda Accord, which is much bigger. There is a huge difference in prices. How do we expect people to switch to green vehicles? I would urge the Ministry to look at the rebates again to make the green cars more attractive to buyers and to extend the 3-year rebate period. In Sweden and Britain, they have already provided bold incentives to encourage people to switch to green cars. I think we should go in the same direction. We can further lower the cost differential between petrol-propelled vehicles and the green vehicles, so that, car for car, motorists can be drawn towards the greener choice. Last month, we saw the launch of Compressed Natural Gas (CNG) buses and taxis in Singapore. I would like to know whether the Ministry of Transport has any plan to introduce the CNG vehicles in Singapore. We should have more green cars in Singapore, for the sake of a green and clean environment.”
“With the plans to increase car population and with the fact that most of our people today have to spend more than one hour taking public transport from home to the workplace, it is critical that the RTS network be expanded more expeditiously, so as to make the public transport an attractive alternative to the private transport. When can we expect the RTS to link up all our housing estates? If the Ministry is unable to put in place the RTS network quickly, it should consider alternatives, such as maybe, the mini-bus scheme in Hong Kong to make the public transport in Singapore more attractive.”
“Sir, it has been more than six years since the LTA published its White Paper on World Class Land Transport System. Have we achieved what we spelt out in the paper? Let us take a brief close look. We have expanded our MRT network to serve the heavy transit corridors. We have built the LRT system in Bukit Panjang. We have improved our road network system, linking the major parts of the island with expressways. It seems, however, as the Chinese say, "lei sheng da, yu dian xiao" - much said and little done. Those projects completed are also not perfect. There were breaches and breakdowns. Some examples were: the many breakdowns of the LRT system, the problems with the MRT trains, cutting down the frequency of the MRT service to Changi Airport, etc. I am glad that the authorities and agencies took immediate steps to address the problems when they surfaced. But could they have been prevented in the first place? The Government has made changes to the vehicle registration and tax system. We can expect to see that car ownership will rise and more vehicles will be on the roads in the future. What are LTA's plans to absorb this increase in the number of vehicles? The transport infrastructure is like the blood circulation system in our body. It connects our residents' homes, workplaces and places of recreation. It must remain healthy and free flowing so that our nation can grow. What are the Ministry's plans for the future development of our roads and transportation infrastructure? Sir, although the Ministry has announced its intention to put in place a comprehensive Rail Transit System (RTS) network, there has not been a firm commitment on the date when the network will be in place.”
“If we really want to make Singapore a shoppers' paradise, if we really want to give a good image of Singapore as a clean country where trading is fair, I do support the suggestions made by Dr Teo just now that we should have legislation to make the shoppers' paradise a reality in Singapore.”
“Chin Tet Yung: Sir, Singapore is projecting itself as a shoppers' paradise. But often, we have stories about it being a nightmarish experience shopping in Singapore. Tourists and other consumers claim to be cheated in terms of quality of products and of huge price increases which they paid for the goods. Some claim even to be put under duress to buy goods after negotiating a price. CASE itself remains an association without any real teeth. Many tourists from first-world countries have often mentioned that they find it surprising that with Singapore's sophisticated legal system, with Singapore's reputation for being a clean country, they do not find consumer protection to be well-established in a country like ours. Sir, I find this unacceptable and I hope the Minister will consider to set up a statutory body, such as a Consumer Protection Board, which should have statutory powers and duties to do the following things: (1) Investigate consumer complaints; (2) Take action against those who misrepresent or who cheat customers, or who put customers under duress, or who attempt to sell goods to customers even though such goods are unsolicited; (3) Provide a simple dispute resolution system, backed up with the genuine powers to sanction errant shopkeepers if that is found to be the case; (4) Provide good conduct codes, both for shoppers, as well as for storekeepers, so that they can bargain or trade in a congenial atmosphere rather than in an atmosphere of hostility; and (5) To provide a public forum for discussion of consumer issues.”
“If business practices are transparent, customers' confidence will increase and there can, in turn, be more business. Again, coming back to the example of the petrol stations, we see clear displays of prices at the petrol stations in US, Australia and even in Bangkok. Such a practice is long overdue in Singapore. In Australia, consumers see more information from the oil companies' website, including changes in the international traded product price. Again, this is not the case in Singapore. While we understand that the Government cannot interfere in the commercial decisions of the private enterprises, we are confident that consumer interests can continue to be protected. Goods and service providers should be requested to provide detail information of the product and pricing, as consumers have the right to know. Dr Teo Ho Pin (Holland-Bukit Panjang): Mr Chairman, Sir, each year, CASE receives about 15,000 complaints on consumers concerning unscrupulous and unfair business practices in the marketplace. Despite the presence of about 70 consumer related legislations, consumers of all age groups and educational background are still being conned or given unsatisfactory products or services. In today's complex marketplace, it is sometimes difficult to exercise caveat emptor. Thus, consumers need more protection. Sir, I wish to seek the following clarifications from the Minister: (1) Are there plans to review or integrate all existing consumer-related legislations to enhance consumer protection? (2) Will the Ministry consider legislating a Consumer Protection Act to protect consumers of "unconscionable conduct" of businesses? (3) Will an enforcement agency be appointed to ensure fair trading practices in the marketplace? Assoc. Prof.”
“Mr Chairman, Sir, even as we wait for the Fair Trading Act to be made into law, many things can be done concurrently to enhance the protection of consumer interests. I will touch on three specific issues. First, consumer education. We are occasionally surprised by the consumer's level and degree of knowledge in products and business practices. An example is the grade of petrol, another is that of interest rates and late charges of credit card companies. In addition, the plight of the elderly consumer is another key area of concern. CASE hopes to work with business bodies to step up consumer education in all these areas. Would the Ministry consider granting more support towards consumer education programmes? Second, protection of customer deposits. These past couple of months, we learnt about car buyers who have paid deposits for Skoda cars but were not able to take delivery of their cars. In February, many of us were shocked when we heard of the closure of Ken-Air and, in that instance too, many customers have placed deposits for tour packages. Last year, another furniture store closed down. Many who have paid for their furniture were not able to take delivery, even though there was still furniture stored in the warehouse. These are high profile cases, and there must certainly be many other cases which were not reported in the media. Should these cases not remind us that existing laws should be amended or reviewed so as to give more protection to consumers? Perhaps, the Fair Trading Act can tackle this, but should we also not consider that the customers' deposit be placed under a trust account? 6.30 pm As a consumer body, CASE wants to work with businesses to enhance the transparency of business practices. We believe that there can be a win-win situation.”
“Sir, Singapore needs a business-friendly environment with minimum red tape to foster creativity, attract foreign investments and encourage the growth of enterprises. However, we also need to make our environment consumer-friendly. Today, many consumers may not have the expertise or bargaining power to negotiate a fair transaction or contract. Although certain aspects of unfair trading are dealt with under existing laws, they do not, in most cases, deal explicitly with the issues of consumer protection. Even where they do, our consumers lack the knowledge and awareness of these Acts, and may not also have the resources or may find it too costly to exercise their legal rights. Second, consumers may have less information of the products and services than the traders. So the information gap inhibits the accurate and rational decision-making. Third, there are limited legal remedies readily available to consumers who wish to take action against unfair trade practices. Although some particularly offensive practices, like cheating, may be covered under our criminal law, many errant trading practices, such as "switch and bait" tactics, are not clearly covered by our existing law. There is a need for the Government to intervene to promote a fairer and more equitable marketplace. From the consumer's perspective, a Fair Trading Act will enhance consumer protection and make the playing field more level. It will protect both traders and consumers' interests. I would like to know the Ministry's assessment of the proposed Fair Trading Act, and how soon can we expect to see the Fair Trading Act become a reality in Singapore. I urge the Ministry to speed up the legislative process.”
“Should we not request the banks to clearly state the interest rates and the late charges in the monthly statements to remind the cardholders of the consequences? What more can be done to educate bank customers on the use and risks of such credit card facilities or other credit facilities? I urge the Ministry of Finance to monitor and study the situation closely and do more to put a cap on the easy availability of credit.”
“Mr Chairman, Sir, credit-card billings in the year 2001 totalled $11 billion, up 5% from $10.6 billion in the year 2000 and exceeding total billings of around $8.9 billion in 1999. In 2001, financial institutions wrote off $79.5 million of bad debts, up 28% from the year 2000. Over the past year, credit cards and charge cards approval rate has risen by 14.4%. In short, although we were in an economic downturn last year, more people are getting credit cards, using them and chalking up bad debts. I want to highlight four cases across four media reports in the Straits Times which should give us something to think about. First, more young Australian women are declaring bankruptcy after running up debts on credit cards to finance their expensive lifestyles; second, many young Hong Kong adults are deep in credit card debts; third, young Americans are the fastest growing group filing for bankruptcy in the US; fourth, a young Hong Kong woman was reported to own 80 credit cards. In my meet-the-people sessions, I have come across cases where young residents chalked up big credit card bills and sought their MPs for help. In these cases, they hold multiple cards and were crippled by mounting roll-over debts. I am sure many hon. Members of this House have also come across similar cases. I would like to know whether the Ministry of Finance monitors the credit card situation in Singapore. Are younger Singaporeans chalking up more credit card bad debts and are being declared bankrupt? Should more be done to control the easy availability of personal credit facilities? How do the banks determine their interest rates and why have the rates not been reviewed for years and why are all the banks imposing the same rate, except for one or two?”
“So, will the Government consider postponing the rise in car park charges till a later date when the economy is in a more robust condition? In conclusion, Sir, I have to confess that I withdrew my wish list after listening to the one proposed by the hon. Member for Ang Mo Kio, Mr Inderjit Singh. My wishes pale by comparison, and I do not think that I can come up with the bold ones that he had proposed. But in listening to the female colleagues of this House, I cannot but find myself compelled to support the call to review medical benefits for female civil servants. And I hope they will not think it presumptuous of me to do so and would welcome support, I am sure, from their male counterparts as well. With that in mind, Sir, may I say that although this Budget presented so well by the DPM and Minister for Finance should also perhaps pay attention to those individuals and businessmen that remain mired in the throes of the recession. Let us hope that these concerns will be addressed at the earliest opportunity should the need arise. I support the Budget, Sir.”
“Further, they face increasing competition with neighbouring countries and if costs in Singapore rise all the time, the degree of competitiveness must correspondingly reduce. One example I have been told about is that freight costs, for instance, have already risen by 10% recently, and GST has not been increased yet. As for those in the retail business, we have also been telling Singaporeans to shop in Singapore and support them. But, in reality, can we blame Singaporeans from going across the Causeway if the Singapore dollar stretches much further than it does here? So, all in all, small businesses, particularly those in the retail trade, see that the Budget does not really help them that much. Finally, from the consumers' point of view and from the HDB residents' point of view, many have made the comment that this Budget is a give-and-take budget. What is given by one hand is taken away by the other. And the illustration that we have of this is the way in which we have been adjusting taxes on cars. True, of course, there are reductions in the ARF, road taxes and other direct taxes, but these reductions are unlikely to be felt, with the increase in petrol prices, COE, ERP and HDB car park fees. As we know, car owners are already paying substantial taxes to buy a car and maintain them. And the taxes that are collected amount to billions of dollars. Also, if we just look at the additional 5,000 COEs to be issued, and if each COE is worth about $30,000, it would generate about $150 million. One suggestion is that Government should use this revenue to offset some of these increases in the building and maintenance of car parks until such time as the economy picks up.”
“I am also disappointed that while we recognise that in Singapore, we have an increasing number of older workers, we seem not to have provided sufficient incentives to encourage companies to retain or re-employ them. Even small industries, such as the garment industry, are outsourcing their work to neighbouring countries where labour is much cheaper. There is no incentive for them to employ workers here even when such workers are available, ready and willing. Many of them have come to tell us, "give us some work and we will prove ourselves". Should we not consider some fiscal incentives to encourage companies to employ Singaporean workers even in those non high-tech industries so as to absorb this growing group of workers who are in their mid-40s or 50s? We need fiscal measures to encourage companies to employ these older workers, preferably without adverse consequences to their CPF. I believe that the over-40s still need their CPF, even though they may not have as much to pay off as the younger ones, but they would still need to provide for their retirement. Next, is the Budget helpful to small businesses? Another growing perception is that this Budget did not provide much good news for the small businessmen who have been facing the twin mishaps of poor business and increasing cost. There is every probability that with fuel prices going up, business cost will increase. The small businesses in the sectors, such as manufacturing, retailing or non-financial services, see no great tangible benefits from this Budget. Many of the companies are striving to stay afloat, so a cut in corporate taxation, as many of my colleagues had earlier mentioned, is irrelevant because they have no profits to pay tax on.”
“Must the changes therefore come at a time when almost everyone is facing economic problems such as unemployment, retrenchment, pay reduction or pay freezes? Secondly, following from that, has the Budget adequately addressed the high cost for individuals and businesses? For the individual, the tax burden will increase with the increase of GST next year. The increase in GST will definitely bring higher bills for essentials, such as food, utilities and transport. We can only hope that the increase in GST will not result also in a reduction in consumption, which will always affect our economic recovery. I am particularly worried for those who are still unemployed. As it is, I believe all in this House have seen the hardship faced by many jobless. Even at today's prices - mountains of bills to pay - many have had their power supply cut off at one time or another, many could not afford to pay for even the basic necessities, and there seems to be no end in sight. Many families have been affected. So the question is: will the offset package be enough? All in all, is the Minister confident that the offset for GST has taken into account, for example, the potential increases that are likely to be brought about by increases in fuel cost? Can we expect more off-Budget measures to tackle the problems that the increase in consumption taxes would bring? The Minister has mentioned that where the offsets are not enough to cover the increase in GST, such families could appeal to the CCCs. Sir, I am afraid that if the current trend in unemployment continues, the CCCs will be snowed under with this burden and I hope that sufficient resources for this purpose will come from the Government.”
“This answer alone is a reassurance of love for your better half, and I am sure that it is something that many wives would want to hear. Although our Government does not have any liver to donate, I am sure it has a big caring heart. The Government should reaffirm and say to its citizens that "we have the interest of all Singaporeans at heart and we will continue to enhance the social safety net". Such a statement and commitment would be a reassurance that Government cares and no matter how many times it has been said, no matter how difficult our circumstances, we will make sure that our heart is always warm, and the people will not be tired of hearing it. I hope that the Government will make such assurance of love, especially when we have to face the challenges ahead, we must have a government with the people's benefits at heart. Assoc. Prof. Chin Tet Yung (Sembawang): Mr Deputy Speaker, Sir, to restructure the economy, Singapore obviously needs to have a more equitable direct and indirect taxation system. This Budget goes someway to address this issue and the DPM and Minister for Finance has been, and should be applauded for providing a comprehensive analysis of how the tax structure should be revised. I generally agree with the Budget. I only have a few points to make, mainly from feedback received, I realise that Members before me have raised some of the points already, so I shall attempt to be brief. Firstly, the comment is that: is this the right time to introduce the restructuring? Some see the restructuring of course as leading to a more equitable system. However, for the majority of Singaporeans who do not pay income tax, they only see the increase in indirect taxes as making them even poorer and the reduction in direct taxes as benefiting only the better off.”
“If more specific industries and numbers can be provided, we will have clearer objectives to move towards. Mr Deputy Speaker, Sir, the world has changed and changed rapidly. International competition is getting more intense. The future challenges are getting more severe and the current times are unsettling. What are the main causes of uncertainty? I can identify three sources of discomfort. The first source is employment-related issues. There are discussions on employability of older workers and changes in the CPF can be disenchanting. The second source of worry is the uncertain external environment, particularly the competition we face from our neighbours and the unresolved issues we have with them. The third source is the likelihood of lifestyle changes that we may have to make. Can we continue to maintain our high standard of living as we used to enjoy? In such an uncertain environment, it is important for the Government to give our people a clear reassurance, just like what DPM Lee has done when he gave the assurances that the Government's top priority is to create jobs and the low-income families will not be worse off after the GST increase. We have to continue to reassure them. Mr Deputy Speaker, Sir, after MediaCorp actor, Pierre Png gave part of his liver to Andrea De Cruz, I was told that many wives and girlfriends had been asking their partners whether they would do the same thing if the same tragedy happens to them. The New Paper reported yesterday that it asked 50 single Singaporeans whether they would donate their organs to their partners and 33 said, "Yes!". Unmarried partners may be able to say no, but for husbands, there is only one correct answer to your wives - "Yes!".”
“I hope that the Government can do more to dispel common misconceptions such as: (a) GST is compounded and the end-customer pays more than 5%. (b) Increased GST will discourage consumers from spending and the retail sector will be hurt. More Singaporeans will shop in neighbouring countries and our neighbours will benefit. On our part, as a labour movement, the NTUC News published an article last week using the example of a shirt to illustrate that GST is not compounded and would not lead to price increase. The Government can consider doing likewise. Thirdly, are there any particular group of people who are not adequately covered by the GST offset package? All along, the Government has been using examples of typical families to illustrate the extent of GST package. How about those single-parent families or retirees who are living alone? Could we do more to help them? Mr Deputy Speaker, Sir, in the Budget speech, DPM Lee said that Government expenditure in the economic development sector would continue to emphasise on workers' training and upgrading. He stressed that the Government would not stint in its support for workers to upgrade themselves. This is very important. Our efforts to train workers must keep pace with economic restructuring. It is time for our training drive to go into turbo charge. We have all along relied on incentives and subsidies. But if these incentives cannot achieve the desired result, should we not push workers and employers harder? Workers are increasingly seeing the importance of training but can we do more to get employers to come on board? Can Government identify certain specific industries and areas to channel our training efforts? We know generally where the growth areas are, such as biomedical and ship building.”
“I have been involved with CASE for two years and I have personally come across many cases of business malpractice. A common complaint is a lack of transparency. Consumers are often not well-informed of price change or they are caught by the fine print. I believe that the business approach can be a win-win situation. There can be improvements to their earnings without compromising the interest of their customers. In today's newspapers, it is reported that the DBS Bank is making their credit card terms reader-friendly. That is a good example. Other companies should do likewise. Thirdly, responsibility towards the community. A company cannot be completely isolated from the public and the community at large. Perhaps, companies that are performing well can channel part of their improved earnings to community and charitable projects. Such an act of charity will send a strong signal that it is sharing its successes with the community and that it is a good corporate citizen. Mr Deputy Speaker, Sir, the Government has introduced a comprehensive package to offset the impact of the proposed GST increase. In particular, I am glad that DPM Lee has given a strong reassurance that low-income households will not be worse off. I want to highlight three GST-related issues. First, I urge the Government to monitor the impact of the GST when it is implemented next year to make sure that it will not lead to inflation. Secondly, I commend the Government for making much efforts to explain the reasons of the tax changes. I am impressed by three things: the brochures in different languages to reach out to all Singaporeans, the use of cartoons to convey the key messages and the on-line calculator which Singaporeans can use to compute how much benefit they can get from the offset package.”
“We hope the Government can give us more good news. Can the Government give us some projections? We know that projections are projections. They are tentative. But, with more accurate projections we will able to guide and encourage people to upgrade their skills in the relevant fields, and have better chances of getting better jobs in the new economy. Reducing corporate tax does not mean reducing corporate responsibility. Mr Deputy Speaker, Sir, the reduction in corporate tax will certainly be welcomed by the business community. It will alleviate the tax burden on the companies and improve their bottom-line. As a labour MP I urge the companies to take advantage of the tax changes by taking more risks and seeking new markets so that their business can grow and more jobs can be created for workers. They should also realise that reduction in corporate tax does not mean reduction in corporate responsibility. What are these responsibilities? Let me broadly highlight three messages to the business. First, treat workers as stakeholders. From time to time we hear of horror stories - employers retrenching workers without compensation, retrenchments disguised as dismissals or terminations to save on retrenchment benefits. Such cases, if proven to be true, must be deplored. Companies have an obligation to their shareholders to improve on their returns. But they must acknowledge that there are other stakeholders too, and these include the workers too. With improved earnings resulting from lower corporate tax, I urge companies to invest more on workers' training and spend more to enhance their welfare. Do not forget that all members of the staff are entitled to a share in the fruit of the company's success. Secondly, responsibility towards customers.”
“Mr Deputy Speaker, Sir, since the delivery of the Budget Speech by the Deputy Prime Minister and Finance Minister Lee Hsien Loong, many discussion sessions have been conducted, and I have participated in a number of them. From these discussions, a few issues kept popping up. Let me reflect five of these issues concerned. In the Budget Statement, DPM Lee said our highest priority is to create good jobs for Singaporeans. To do this we must continue to attract companies and talent to come to Singapore and help our economy to grow. This statement is very reassuring to the workers. Many workers and union leaders have asked how the ordinary workers will benefit from the tax changes. The link between tax cuts and job creation cannot be seen immediately, but we all know that the link is there. Tax cuts attract investments and investments create jobs. This is the message that union leaders shall continue to convey to our workers. Some people are sceptical about how the tax cuts work. Let us look at a concrete example. Within two weeks of the announcement by the Economic Review Committee recommending cuts in corporate tax and personal income tax, the Economist Intelligence Unit (EIU) published a survey that Singapore had overtaken Hong Kong as the economy offering the best business environment in Asia. The EIU said that the proposal to cut taxes was the key reason why Singapore had topped the survey. We are on the right track. The newspaper reported last week that our biomedical hub will generate at least 4,000 jobs. That is certainly encouraging news but there are some questions asked by our workers. Apart from this, with the new tax regime, how many jobs can we create down the road? What jobs are these and in what sectors? How soon can we expect these jobs to come?”
“If you draw a snake and put legs on it, then it is no longer a snake.”
“I do not agree with Dr Tan Cheng Bock that, as a labour MP or union leader, I had to feel bad when Nominated MPs are invited to come into this House as representatives of the labour movement. Does it mean that I am not doing my job? I do not think so. Having other union leaders here as Nominated MPs, will only make our good work here even better. As Dr Tan Cheng Bock has said, we need to have people from different educational and family backgrounds coming here. All these union grassroots leaders who were promoted from the rank and file are in a better position to reflect the opinions of the workers. If you look at the previous batches of NMPs from the labour movement, we can see very clearly that they have brought in alternative views and constructive suggestions from the workers. I think it is value added to our whole parliamentary system. Their contribution is definitely not like adding legs to the snake. However, since the Nominated MPs come in by a sedan chair, we have to be very careful when we are carrying them. They are different from us because they do not have to go through the General Elections and win the mandate of the voters to come in. So, I agree with Dr Tan Cheng Bock that we have to be more stringent in our selection system, so that there will not be any black sheep slipping in from the crevices.”
“To put it frankly, just as Dr Tan Cheng Bock has said, we, the elected MPs, have come in from the main door. We have gone through very vigorous battles and had to fight off the Opposition candidates to win our rights to represent our constituents here. Put it in a more dramatic way, we were like what the Chinese classics would describe, guo wu guan, zhan liu jiang - crossing five strategic passes and slaughtering six generals. On the other hand, our Nominated MPs were carried in on sedan chairs. They need not go through the battles. Honestly, seeing them coming in in such a glamourous and easy manner, if you say you are not envious and feel like banging your chest, I think you are probably not telling the truth. However, we have to think very seriously about it. What contributions have Nominated MPs made to Parliament? Are they hua she tian zu (draw a snake and add feet to it) or jin shang tian hua (add flowers to the brocade)? If it is to add something to the existing system like adding feet to the snake, it is like what the Hokkien will say: "kay kiang" - pretending to be smart. Having drawn a snake, why would you want to add some legs to it? You are doing something superfluous. But, if it is jin shang tian hua, that you are adding flowers to a beautiful piece of brocade, we are making it even more beautiful with 3-D effect. The Nominated MPs and the elected MP have raised different voices, coming from different backgrounds. To me, elected MPs and Nominated MPs are like people holding pink ICs and blue ICs respectively, that is, citizens and permanent residents. The NMPs are contributing to our parliamentary system like the permanent residents contributed to our nation building and both are adding value to us.”
“Since the policy is to ensure a smooth traffic flow and on Saturday mornings, most of the areas in the CBD are already experiencing smooth traffic, should the Ministry not have a periodic review on this? In fact, the ERP in the CBD area on Saturdays has been lifted which suggests that the flow of traffic is very smooth and there is no need for another policy to restrict it.”
“It is likely that we will, but the details are very important and we are making sure that before we present a Bill to this House, we have consulted widely with the industries.”