1 Dr Lim Wee Kiak asked the Minister for Trade and Industry (Industry) (a) whether any study has been done about Singaporeans' perception and awareness of local brands and products; and (b) how does the Ministry plan to instill greater pride for and awareness of local brands.
\tThe Senior Minister of State for Trade and Industry (Ms Sim Ann) (for the Minister for Trade and Industry (Industry)): Mr Deputy Speaker, Sir, the development of strong design and innovation capabilities which enable the growth of distinctive local brands are key components of the Industry Transformation Maps (ITMs) in the lifestyle cluster.
While there have been surveys, like the Singapore Management University's Customer Satisfaction Index of Singapore and various surveys by private sector organisations, on consumers’ perception and satisfaction with various brands, these are not specific to Singaporeans' perception and awareness of local brands and products. We will consider doing such surveys as part of the work in implementing the ITMs.
The Government has been working with our key partners, such as the trade associations and chambers to raise awareness of local brands among Singaporeans. For instance, the Standards, Productivity and Innovation Board (SPRING) Singapore supported the recent collaboration between the Singapore Food Manufacturers' Association and Focus Network Agencies to help local food manufacturing companies feature their products through the Singapore Food Gifts Initiative at Changi Airport and amplify brand awareness. Participating companies were able to tap on SPRING Singapore's suite of assistance schemes, such as the Capability Development Grant, to support the packaging innovation, design and small batch production needed to commercialise these food gifts.
This year, SPRING Singapore will also be collaborating with the National Trades Union Congress' FairPrice and Nanyang Polytechnic's (NYP's) School of Business Management to launch a Retail Incubator Programme. With NYP's School of Business Management’s expertise in e-commerce and retail, and FairPrice’s supermarket channels and capital support, participating companies can develop key skills in retail management and have exclusive access to bring their products to market. To date, more than 20 companies have expressed interest to list more than 40 items under this initiative. We look forward to more companies coming on board.
The DesignSingapore Council (DSG) also supported the Textile and Fashion Federation (Singapore)'s collaboration with Boutique Fairs to organise Boutiques Edit, a shopping fair featuring local designers. The November 2017 Boutiques Edit showed a 50% increase in the number of attendees from the March 2017 edition, and quadrupled its sales, a signal that there is a growing appetite for designed-in-Singapore fashion and design. To nurture homegrown brands and profile design talent, JTC, SPRING Singapore and the Singapore Tourism Board will launch the Design Orchard initiative, with more than 60 brands on board, along Orchard Road by the end of this year.
The Government will continue to work with industry partners to support our local brands and products as part of the implementation of the ITMs.
Mr Deputy Speaker: Dr Lim Wee Kiak.
\tDr Lim Wee Kiak (Sembawang): Mr Deputy Speaker, Sir, I thank the Senior Minister of State for her very comprehensive answer which included part of my intended supplementary question. I would just like to ask a further question. Current promotions of local brands are important in my opinion because if we want to encourage our local brands to go regional, they first have to achieve a strong foothold in our own market. This is a good testbed. My question is, apart from Changi Airport, Orchard Road and some of the localities the Senior Minister of State just mentioned, will there be plans to push out more to the heartlands, to the heartland malls and so on? These locations are key to the local domestic market. I also wish that Singaporeans can support our local brands and things made in Singapore more. It is not a step towards protectionism, but it is a step for us to encourage our small and medium enterprises. And hopefully, more new ideas and innovations can prevail.
\tMs Sim Ann: I thank the Member for the supplementary question. Indeed, we see the heartlands as a very good source of potentially strong brands that can do Singapore proud. I am also pleased to say that we are working very closely with the Federation of Merchants Association Singapore on how to rejuvenate retail in the heartlands and, we hope, in the process, continue to groom strong brands. I also hope that Dr Lim Wee Kiak can stay for the Ministry of Trade and Industry's Committee of Supply later today, where I will be speaking more on this particular initiative.
Mr Deputy Speaker: Order. End of Question Time. Introduction of Government Bills.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Legal Profession (Amendment) Bill","subTitle":null,"sectionType":"BI","content":"[(proc text) \"to amend the Legal Profession Act (Chapter 161 of the 2009 Revised Edition) and to make related amendments to the Supreme Court of Judicature Act (Chapter 322 of the 2007 Revised Edition)\", (proc text)]
[(proc text) presented by the Senior Minister of State for Law (Ms Indranee Rajah) on behalf of the Minister for Law; read the First time; to be read a Second time at a Sitting of Parliament on or after 19 March 2018, and to be printed. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Carbon Pricing Bill","subTitle":null,"sectionType":"BI","content":"[(proc text) \"to require the reporting of, and the payment of a tax in relation to, greenhouse gas emissions, and to make consequential and related amendments to the Energy Conservation Act (Chapter 92C of the 2014 Revised Edition)\", (proc text)]
[(proc text) recommendation of President signified; presented by the Minister for the Environment and Water Resources (Mr Masagos Zulkifli B M M); read the First time; to be read a Second time at a Sitting of Parliament on or after 19 March 2018, and to be printed. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Supplementary Estimates of Expenditure for the Financial Year 1 April 2017 to 31 March 2018","subTitle":"Committee of Supply – Paper Cmd 14 of 2018","sectionType":"OS","content":"[(proc text) Order read for consideration in Committee of Supply [2nd Allotted Day]. (proc text)]
[Deputy Speaker (Mr Lim Biow Chuan) in the Chair]
The Chairman: Supplementary Estimates of Expenditure for the financial year 1 April 2017 to 31 March 2018, contained in Paper Cmd 14 of 2018. As there are no amendments, I propose to take the Heads of Expenditure en bloc. I will first take Heads E, I, Q, S, V, W and X of the Supplementary Main Estimates.
[(proc text) Question, \"That the sums stated for the Heads of Expenditure as shown on page 5 of Paper Cmd 14 of 2018 stand part of the Supplementary Main Estimates,\" put and agreed to. (proc text)]
[(proc text) Question, \"That the sum of $339,311,600 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Main Estimates of Expenditure for the financial year 1 April 2017 to 31 March 2018 contained in Paper Cmd 14 of 2018,\" put and agreed to. (proc text)]
[(proc text) Resolution to be reported. (proc text)]
[(proc text) Question, \"That the sums stated for Heads I, P and S as shown on page 7 of Paper Cmd 14 of 2018 stand part of the Supplementary Development Estimates,\" put and agreed to. (proc text)]
[(proc text) Question, \"That the sum of $87,153,500 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Development Estimates of Expenditure for the financial year 1 April 2017 to 31 March 2018,\" put and agreed to. (proc text)]
[(proc text) Resolution to be reported. (proc text)]
[(proc text) Thereupon Mr Deputy Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]
Mr Deputy Speaker:\tSenior Minister of State Indranee Rajah.
The Senior Minister of State for Finance (Ms Indranee Rajah): Mr Deputy Speaker, I beg to report that the Committee of Supply has come to certain resolutions.
[(proc text) First resolution to be reported, (proc text)]
[(proc text) \"That the sum of $339,311,600 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Main Estimates of Expenditure for the financial year 1 April 2017 to 31 March 2018, contained in Paper Cmd 14 of 2018.\" (proc text)]
[(proc text) Second resolution to be reported, (proc text)]
[(proc text) \"That the sum of $87,153,500 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Development Estimates of Expenditure for the financial year 1 April 2017 to 31 March 2018, contained in Paper Cmd 14 of 2018.\" (proc text)]
Ms Indranee Rajah: Mr Deputy Speaker, I beg to move, \"That Parliament doth agree with the Committee on the said resolutions.\"
[(proc text) Question put, and agreed to. (proc text)]
[(proc text) Resolutions accordingly agreed to. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Estimates of Expenditure for the Financial Year 1 April 2018 to 31 March 2019","subTitle":"Committee of Supply – Paper Cmd 13 of 2018","sectionType":"OS","content":"[(proc text) Order read for consideration in Committee of Supply [2nd Allotted Day]. (proc text)]
[Deputy Speaker (Mr Lim Biow Chuan) in the Chair]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Committee of Supply – Head J (Ministry of Defence)","subTitle":null,"sectionType":"OS","content":"Mr Vikram Nair (Sembawang): Chairman, I beg to move, \"That the total sum to be allocated for Head J of the Estimates be reduced by $100\".
Singapore's need to develop its own defence capabilities came almost as suddenly as our Independence. Shortly after our Independence, the British forces who had been stationed here announced they would be pulling out ahead of schedule and Singapore would be responsible for its own defence thereafter.
This precipitated the start of National Service in 1967 and the focused development of Singapore’s armed forces. As a small country, security is always a challenge. If it comes to a war, it is generally assumed that a big, well-resourced country will prevail over a small one.
Unlike our neighbours who had larger populations, larger land mass and natural resources, when Singapore gained Independence, we were poor, had many pressing needs and competing challenges. But the Government of the day knew that from the day we started, we needed a strong defence force and that there would be no economic future, no security without one. Thus, they invested in defence even though it was difficult.
The building of a strong defence force was also coupled with the building of strong defence ties and the Five Power Defence Arrangements (FPDA) with Malaysia, Australia, New Zealand and the United Kingdom (UK) in 1971 was one of the earliest defence arrangements we entered into. This has been built on later with further important defence and training arrangements, including with other regional countries and big powers.
These alliances have been built in the mutual best interest of all involved and Singapore needs to be a strong and valued partner in order for other countries to want to form alliances with us.
Although our defence force remains strong and credible and our defence alliances strong, the security environment remains fraught with risks and uncertainties. As we had discussed in the earlier debate on foreign affairs, these threats are wide ranging and serious.
The threat of terrorism continues to spread with growing incidents of radicalised individuals and fighters returning from the Middle East to the region. Attacks have taken place in major European cities but, closer to home, in Indonesia as well.
The Korean Peninsula saw aggressive nuclear testing by North Korea barely a few months ago, and while ties remain warmer now, the nuclear risk remains. Matters in the South China Sea have also calmed down a little, but there is no clear resolution in sight for the differences here, though, hopefully, parties can agree upon a code of conduct.
And today, security threats are increasingly taking on new forms, including self-radicalised terrorism and cybersecurity. These are complex and unpredictable, and take place below the threshold of war, and we may have to invest adequately to deal with such emergent threats. While these threats linger, they take place against a backdrop of a risk that the US may reduce its role in the region. So, it is clear that we must continue to invest in defence.
Our Pioneer Generation had the foresight to invest in defence, and the \"peace dividend\" we have enjoyed over the last 50 years is the backdrop which has allowed Singapore to grow and thrive. Today, we are one of the wealthiest countries in the world.
Given our small size and the existential need for defence, defence spending has been a significant part of our Budget. Defence expenditure has also been rising in the region in the face of growing security concerns, meaning all our regional neighbours are also building up their armed forces.
As forecasted in the Budget Debate earlier, we will be moving into a period when our population will be ageing and our needs for social spending will be rising at the same time. Some have suggested, happily, not inside this House, cutting the defence Budget, a move that I would find worrying, given that security and defence are existential for us. What are Singapore's security plans in the face of the threats we face, and is our defence spending going to be adequate and sustainable in the face of these threats?
[(proc text) Question proposed. (proc text)]
Mr Teo Ser Luck (Pasir Ris-Punggol): Mr Chairman, as a responsible member of the international community, Singapore has long contributed to the international peacekeeping and humanitarian assistance missions around the world. And just last year, the Singapore Armed Forces (SAF) deployed Chinooks and personnel to aid in the Hurricane Harvey relief operations in the US, sent an additional medical team to the defeat-the Islamic State of Iraq and Syria (ISIS) coalition in the Middle East, and sent humanitarian aid to the Philippines and Bangladesh. Will SAF continue to support such global security and international peacekeeping efforts?
Assoc Prof Dr Muhammad Faishal Ibrahim (Nee Soon): Mr Chairman, terrorism has continued to pose a major threat to the peace and stability of our region. The scale of terror threats in our region has grown. Last year, about 900 ISIS-linked militants took over the southern Philippine city of Marawi and displaced over 400,000 Marawi residents. It took a concerted effort between the Philippine Armed Forces and the Philippine National Police to recapture Marawi following five months of fierce fighting involving airstrikes and artillery fire.
Terror groups today have also operated with increasing coordination and sophistication, with operational linkages spanning across national borders. The Maute group militants behind the Marawi siege had links with pro-ISIS cells and individuals in the region, and leveraged existing smuggling routes to move funds, people and arms through ungoverned spaces in the region.
The Marawi siege in the Philippines showed us how militants can effectively organise themselves and pose a credible threat to homeland security forces. This underscores the importance of improving synergies across the whole-of-Government to ensure that there is a coordinated response to terrorist threats.
As such, how is the SAF coordinating with other Government agencies to prevent and respond to the threat of regional terrorism today?
Assoc Prof Fatimah Lateef (Marine Parade): The Ministry of Defence (MINDEF) has stated that some 18,000 National Servicemen (NSmen) will be put through counterterrorism training annually. There will also be other initiatives to help Singapore negotiate the current climate that we live in, which includes the Special Ops taskforce; the Army Deployment Force and, of course, the setup of the Island Defence Training Institute.
They are, indeed, major changes and they come with strategic investments and commitment as well. What kind of scale of hardware and technological acquisition are we looking at? How are our plans able to cover our land and sea borders as well as our air space in terms of attacks and threats?
We need to be ever ready to handle these extremely volatile situations, and how do we ensure that our men are all psychologically ready, knowing that they can be called upon anytime to protect Singapore?
MINDEF also has broad goals for the ASEAN Defence Ministers’ Meeting (ADMM) chairmanship. Can the Minister also share with us some of these, which include collaboration with ASEAN counterparts, including SAF and other Armed Forces that have got experience in dealing with a siege like the one in Marawi?
Dr Lim Wee Kiak (Sembawang): Sir, with the world so interconnected and our lives completely changed with the Internet and digitalisation, almost all electronic items can be remotely accessed and controlled, such as our transport, financial and security systems, our power plants and many more.
It is a perfect cyber storm brewing. Imagine all our traffic light controls go haywire, with multiple accidents on the roads, our roads will become a logjam. Airplanes above our heads can become weapons of mass destruction, like the 9-11 scenario. Our stock market and financial systems can be brought to a complete halt and all electronic financial transactions going astray. Our communication devices could be hacked and paralysing the entire country, making any rescue and recovery services impossible. This is a doomsday scenario that we frequently see in a Hollywood movie. Can this reality be real one day?
We read about many incidents of cyberattacks and breaches of security and cyber espionage around the world. How prevalent are such attacks against Singapore, and how vulnerable are we? What are we doing to protect Singapore from cyberattacks?
In recent years, cyberattacks have grown to be a major security concern. In 2015, it was reported that the hackers had successfully compromised the information system of energy companies, leading to the temporary crippling of Ukraine's power grid. Ukraine was again targeted in June 2017 with ransomware disrupting Ukraine's financial, energy and government sectors.
At home, our Government education institutions are known to be hit by cyberattacks. Last year, our businesses, including several shopping malls, were affected by the \"WannaCry\" worm. Fortunately, Singapore was less affected by the \"WannaCry\" worm, compared to some other countries.
From these examples, it is clear that cyber-related threats can severely affect and disrupt Singaporeans' way of life. My question to the Minister is how prevalent are such attacks, how vulnerable are we and what is MINDEF doing to protect Singapore from cyberattacks?
Mr Zainal Sapari (Pasir Ris-Punggol): Sir, the changing security environment has birthed a more diverse range of dangerous and non-conventional threats to Singapore, especially within the cyber domain. For example, the growing availability of sophisticated tools on the Dark Web, designed to thwart secure systems, has greatly heightened the impetus to test and strengthen the security of our existing digital systems. At the same time, in our current fiscal climate of prudence, there is also a strong motivation to exercise good fiscal judgement.
Last year, MINDEF started its Bug Bounty Programme where they invited a select group of white-hat hackers with the required skills and tools to attack their systems. This, I agree, is a sensible move to test its systems as it will be far cheaper than hiring a dedicated commercial cybersecurity vulnerability assessment team and potentially reveal weaknesses that may not be surfaced, given the very individual nature of white-hat hacking. Furthermore, efforts into strengthening our cybersecurity are always welcome if it means a greater defence of our borders within the space of cyber technology.
These hackers were allowed to test eight MINDEF Internet-facing systems to identify any code bugs and vulnerabilities. Could the Minister of Defence provide an update on the Bug Bounty Programme? Is the Bug Bounty Programme a one-off exercise or an ongoing engagement? How does MINDEF's efforts fit into our national cybersecurity ecosystem?
Mr Teo Ser Luck: The Finance Minister has announced the Budget growth cap cut to 0.3 times GDP growth in this year's Budget, following on from the 2% downward adjustment to the budget caps of Ministries and Organs of State. This highlights the current fiscal climate prudence as we face the \"new normal\" of slower growth rates.
At the same time, we have witnessed an increase in the variety and danger of non-conventional threats to Singapore's security, in particular, in the cyber domain and by terrorists.
MINDEF and SAF have invested resources to build our capabilities in these fields in the last few years. Given the increasingly tight fiscal climate and the widening spectrum of threats that MINDEF and SAF now has to defend against, some worry that we may spread our defence dollars too thin. To fund the development of capabilities in emerging fields, MINDEF would likely have to exercise more prudence and possibly undertake some cost-cutting measures.
Could MINDEF elaborate on the specific prudence and cost-cutting measures that it is undertaking?
Dr Teo Ho Pin (Bukit Panjang): Sir, the main mission of SAF is to defend Singapore. Today, Singapore faces new threats, such as terrorism and cyberattacks, in addition to the conventional threats. Therefore, it is crucial that we transform and build new capabilities in our defence force to deter any potential aggressors and overcome any aggressors with a swift and potent defence force.
Sir, technology and intelligence play an important part in strengthening our defence and enhancing our SAF's capabilities. In 2017, MINDEF announced that it will set up a Cyber Defence Organisation and train 18,000 soldiers per year in land, sea and air operations to counter terrorism. These are good initiatives but do we have the manpower to do so in the future, especially when we are faced with a low birth rate?
Sir, furthermore, with an ageing population, many of our Operationally Ready NSmen (ORNS) will be over 60 years old in 10 years' time. This will significantly grey the profile of our defence force. Many of these older ORNS may not be so tech savvy and will face difficulty in catching up with new technologies adopted by SAF. Thus, upgrading of these older ORNS to integrate into the defence force will be challenging.
Sir, last year, the Minister for Defence spoke about the \"Next Generation (Gen) SAF\" that will be positioned for the future, and able to deal with threats in the 21st Century. In this regard, I wish to seek clarifications from the Minister on the following: first, how SAF has leveraged technology to better equip our defence force; and second, update on the operational readiness of SAF for future threats.
The Chairman: Mr Lee Yi Shyan. Not here. Ms Jessica Tan.
Ms Jessica Tan Soon Neo (East Coast): Mr Chairman, with Singapore's geographic location and size, we face several undisputable strategic realities, including our lack of strategic depth and weight, lack of natural resources and small population. We are critically dependent on the free flow of external trade, even as the open nature of our economy leaves us vulnerable to shifts and turbulence in the external environment.
Given our vulnerabilities, we need to rely on both a strong SAF, as well as astute diplomacy, to protect our interests. In particular, our involvement in regional security architecture is critical to fostering trust and cooperation and is essential to shaping a benign security environment within the region where Singapore can continue to grow and prosper.
The ASEAN Defence Ministers' Meeting (ADMM) is the highest defence consultative and cooperative mechanism in ASEAN aimed at promoting regional peace and stability through dialogue and cooperation in defence and security within ASEAN and between ASEAN and dialogue partners.
Amidst the growing threats from extremists and the volatile geopolitical environment in the region, Singapore, as Chair of ADMM this year, is well-placed to advance the security interests of the region and Singapore. In this regard, what are some of the initiatives that MINDEF is undertaking as ADMM Chair to achieve this?
Mr Pritam Singh (Aljunied): Chairman, Sir, good progress is being made through the ADMM and ADMM-Plus frameworks to increase confidence among member countries and which lower but not eliminate the possibility and prospect of outright hostilities in the region, particularly over flashpoints, such as the South China Sea.
The upcoming ASEAN-China maritime exercise is a good example of the work that goes on to build confidence amongst each of the partner nations. In particular, the adoption of the Code for Unplanned Encounters at Sea (CUES) has raised hopes of its implementation even if an agreement amongst all the ADMM-Plus partners may prove to be harder to secure than the agreement of the ASEAN nations.
Is there any realistic prospect for a CUES framework for unplanned encounters in the air, as intimated by the Defence Minister last month, in view of fatal incidents in the past?
As ADMM Chair, it was reported that Singapore plans to strengthen cooperation and build resilience among the ASEAN member states and eight ADMM-Plus countries. These include plans to increase counterterrorism collaboration and raising capabilities to combat chemical, biological and radiological threats.
Separately, under the \"Our Eyes\" initiative, senior officials from Indonesia, Malaysia, the Philippines, Singapore, Thailand and Brunei will meet every two weeks to swap information on militant groups and develop a common database of violent extremists. Can the Minister clarify if there is any scope for such cooperation to create economies of scale for SAF and achieve some savings for MINDEF?
Finally, Minister, in view of the importance of the ADMM-Plus frameworks and the reality of a more multipolar world, is there any prospect for making the ADMM-Plus a yearly meeting instead of once every two years, as it is currently? What has been the reception to this proposal by the ADMM and ADMM-Plus partners?
Mr Low Thia Khiang (Aljunied): Chairman, Sir, the Minister for Finance mentioned that tensions in the South China Sea could affect investor confidence and, therefore, stability and growth in the region. It is, therefore, strategic for Singapore to minimise the tensions and prevent incidents and accidents from escalating into a serious event in the South China Sea.
Singapore is the ASEAN Chair this year and thus leading ADMM and ADMM-Plus, which involves another eight other powers, including China and the United States (US). We have a timely opportunity here to establish the framework to minimise the tensions. It is timely because Singapore is a non-claimant stakeholder in the settlement of the South China Sea disputes and has strong bilateral ties with many of the other stakeholders, including ASEAN countries, China and the US.
It is also timely because the South China Sea disputes seem to be entering into a more rational phase of negotiation and balance of power, after the initial emotive phase occasioned by the jostling for territory.
In 2013, China and the US took part in a joint training exercise off Hawaii. In 2014, both countries, along with other South China Sea stakeholders, signed the agreement on CUES. CUES is an excellent platform to work with to avoid the escalation of any incident and to maintain peace and stability in the South China Sea. On 6 February this year, MINDEF issued a press release outlining the ADMM's three areas of focus for 2018 after the ADMM retreat in Singapore. One area is to affirm the importance of CUES on the sea and in the air. This is a worthy goal but, unfortunately, the press release was short on details about this area. Would the Minister elaborate on how the ADMM-Plus would be used to reaffirm the importance of CUES?
It was also announced that ASEAN will be conducting an inaugural maritime exercise with China at the end of the year. This is excellent, as the US-China maritime exercise in 2013 fostered trust that led to the CUES agreement in 2014. I would like to ask the Minister whether the ASEAN-China maritime exercise will involve the testing and practice of CUES in the South China Sea and whether a similar exercise can be conducted under the aegis of ADMM-Plus. I am asking the latter question because 2018 is the beginning of the third ADMM-Plus three-year cycle and there were already four live exercises held in the last cycle which were useful for deepening regional security cooperation.
The Chairman: Minister for Defence.
The Minister for Defence (Dr Ng Eng Hen): Mr Chairman, let me thank the Members for their continued support to build up a strong defence for Singapore by voting for the financial policy of the Government yesterday.
This debate and the next on the Presidential Address after Parliament reopens are crucial. For this debate, as expected, any proposed tax increase will attract attention. If it did not, we would be in a different world, a surreal one. But astute Members of Parliament (MPs) have pointed out that the financial Budget is but a means to an end.
Indeed, apart from the financial scrutiny of Government spending and revenue, the debates will set strategic directions for Singapore over the next 10, 20 years and beyond. And these core issues are addressed at a crucial juncture, as we transit to a 4th Generation (4G) leadership that must forge support from a generation of Singaporeans with perspectives and memories significantly different from the Pioneer Generation, and even that of their parents, because they were born when Singapore was First-World and they did not experience the Third-World Singapore. As we deliberate on these key issues, we have to decide what we must never let go, lest we weaken the foundations of our growth, and what we must change to keep relevant with the times. Those decisions from these two debates will affect every Singaporean, young or old, right or wrong.
Every Ministry, therefore, including and, especially defence, which takes up a large share of Government spending, must deal with these core issues. That is the core debate. Mr Vikram Nair captured the essence when he asked of my Ministry what are our security plans in the face of wide-ranging threats and risks, and if our defence spending is adequate and sustainable. He used the word “existential” twice. And he is correct.
Should we continue to put defence spending as a priority? Because, after all, we have had peace for 50 years and more now. Our relations with our neighbours are good on all sides. We have formed strong partnerships, as Members have pointed out, with major powers. How much should we invest in building a strong SAF and how much can we afford?
The answer to these questions by previous generations was plain, as it was unwavering – defence was a top priority and they would invest heavily into building a strong defence, a strong SAF, no ifs or buts.
But let me make one fact clear. Past generations did so even when there were many competing needs. We talked about our rising needs but, past generations, as a Third-World country, in Singapore, our needs then were dire and everywhere – houses, schools, hospitals, roads, public facilities, jobs – all in short supply. Because our military capabilities at Independence were next to nothing, the Government of the day had to make hard decisions – every dollar spent on building up the military was a dollar taken from other needs. And yet, they paid the price to build up a strong SAF.
Why? Mr Lee Kuan Yew and the Pioneer Generation, who lived through Singapore as a British colony, under Japanese occupation and as part of Malaysia, held a deep conviction on self-determination through a strong defence.
At the National Day Parade (NDP) which Members here attend, we replay a particular clip of Mr Lee Kuan Yew. It is a very stern admonition and, in this coming NDP, I invite you to listen to it again. It was uttered in 1967 when NS was introduced, \"If you, who are growing up, do not understand that you have got to defend this, then I say, in the end, we will lose. Other people will come, smack you down, take it over.\" I cannot say it as harshly as Mr Lee because that generation lived through difficult times. It is just unnatural for us, but when he says it, and when the Pioneer Generation says it, it is so authentic. Harsh words for harsh times, but ever so necessary. Not only for that generation, but I think for every generation. So, listen to that clip again this year.
With that deep conviction and sacrificial commitment, we, today, have a modern and professional SAF. From two infantry battalions – which, if you read Mr Lee's memoirs, were still under Malaysian command even after we separated – we now have an Army, combined arms divisions, fully manned and able to move at short notice.
Earlier this year, you may or may not have noticed, we activated a mass mobilisation exercise (MOBEX). There was not much fanfare. In fact, it may have gone unnoticed. But in a few hours, we were able to rapidly assemble and equip 8,000 men, moved munitions to them, we used new ways of doing it. Many Members here are NSmen and had gone through MOBEX. As they went to the counters, these were automated counters, where a camera takes a picture of you, recognises you, issues you a slip to say which company and platoon you go to, and what your role is, and what weapons you need to draw. But you actually do not have to draw the weapons because, at the same time, when it is activated, we did not cheat, we activated both sides, from our ammunition storage facilities, they are activated. And they pushed weapons, platforms, to meet up with the men. Within a few hours, 8,000 men. No mean feat anywhere. That should give a lot of confidence to Members in this House and Singaporeans outside.
The Republic of Singapore (RSAF) commemorates its Golden Jubilee this year. But when it started, we had two Cessnas. We did not really own them. We leased them from the Singapore Flying Club. Today, we have a comprehensive fleet of fighter, transport, surveillance aircraft and ground-based air defence systems that protect our skies 24/7. And when I say that, it means that we have pilots on standby. Because after 9-11, we took that threat seriously. If there are planes that come to us unplanned, our fighter planes are mobilised. It takes a while to get mobilised, so our chaps are there. From time to time, we gently guide errant, sometimes, lost pilots, down to the field. But you never know when there might be a real attack, just like 9-11.
Our Navy started with two wooden hull boats, probably sinkable if attacked. We now have a modern Navy of Littoral Mission Vessels (LMVs), frigates and submarines that protect our waters and maritime hub.
The commitment of previous generations to build up a strong SAF was not merely through words or aspirations. It required substantial financial resources from the Government and the people. But that was not the only and, in fact, not the most precious resource they had to give. They gave of themselves, as every Singaporean male, as every male MP in this House who has done NS, has done so, through NS, with the full support from family and employers.
The results of that unequivocal commitment are plain for everyone to see – to Singaporeans, to our neighbours and, indeed, globally – an SAF today that is able to defend Singapore, but beyond that, an SAF that has contributed to global security. As Mr Vikram Nair said, how do we show that we are a valued partner?
It went beyond our wildest imagination that SAF troops and assets, as Mr Teo Ser Luck pointed out, were helping in Hurricane Harvey in Texas and, before that, Hurricane Katrina; or could be deployed as peacekeepers in Timor-Leste or against terrorism in Afghanistan and Iraq; against pirates in the Gulf of Aden; and in humanitarian efforts in Aceh and Nepal. Who would have thought of it when SAF was started more than 50 years ago?
Yes, we will continue to do this because the partnerships forged from playing our role internationally are important in dealing with transnational threats that affect our own security. We are not playing \"good guy\", to be honest. It raises our stakes, our value to others who want then to help us as we deal with transnational security threats.
It has been the steady investments in defence spending that enabled these achievements by a strong SAF, both locally and internationally. This is a Committee of Supply (COS) debate. So, I think some details of actual financing are appropriate. We have handed out, with your permission, Mr Chairman, charts and these are also shown on the screens.
The first figure shows our defence spending for the last 30 years. First off, in blue, is the percentage of Government expenditure – how much MINDEF spends as a part of Government expenditure. At our height, you will notice that we spent almost a third of every dollar the Government spends. But with the SAF modernised and doing more with people and technology, defence spending, as a proportion, dropped substantially, starting around a decade ago. It is now about 19% of Government spending.
So much for Singapore's spending, but defence must always be seen in perspective. What you spend is never as important as what everyone else spends. So, let us see the next slide – what is the defence spending by countries around us? I have chosen just to focus on ASEAN but I think probably the same can be said of Asia, ex ASEAN and Singapore, and even more.
Figure 2 shows that we had kept pace with ASEAN spending until about 2006. In the last decade, our ASEAN neighbours have been spending more. These are nominal absolute spending. In the last decade, our ASEAN neighbours have been spending more to modernise their defence capabilities even as their economies grew. The gap between Singapore's spending compared to the rest of ASEAN has increased, but Singapore need not increase its defence spending radically now to play catch-up. Do not worry. We do not have to do it.
As I have said in this House previously, we can maintain the SAF's capabilities with a defence spending that roughly keeps pace with inflation of around 3%-4% increase each year. And even for the next decade, MINDEF does not foresee any spike in defence spending. Obviously, this will not apply if there are exigencies or unexpected scenarios. For instance, if there is a terrorist attack or if the security environment deteriorates, our agencies will have to spend more to protect Singaporeans.
And after the next decade, I think it would be prudent for the Government of that day and this House to reassess the security threats and the military spending, and the capabilities of other countries and plan ahead. So, if Members can remember and are still in this House 10 years hence in 2028 and beyond, please remember this gentle admonition, sound out warnings if you think necessary, for those of you privileged to be in this House.
Two crucial lessons learnt from our experiences as well as that from negative examples from other countries who went the other way, and they are: first, the best time to prepare for trouble is during peace; second, in the long run, steady investments into military capabilities maintain peace through deterrence and result in more effective outcomes. It is actually the most efficient yield for defence investments. In other words, even if you spent the same dollar amount over a defined period and one was gentle and smooth, and the other went up and down, the most effective yield is continuous steady investments, and I will tell Members why, by examples, which many European countries have learnt in bitter ways.
I recently spoke of how Lithuania did away with NS after the Cold War, but has now to reintroduce it following the annexation of Crimea. But it may not be possible. Just think – one Defence Minister decides, \"alright, National Service is no longer necessary\". The same one, or a few years later, another one decides, \"let us reintroduce it\". Is it possible? Certainly not in time to deal with an imminent crisis.
Denmark announced in October last year that it would now increase defence spending by 20% over the next five years. You can quickly appreciate the pain it will cause their population that the Finance Minister of Denmark would say, \"I have to raise Goods and Services Tax (GST) by 2% just to pay for my defence.\" Painful.
France, even a bigger problem. It unveiled a bill last month that would increase its spending on its armed forces by more than 40% by 2025 because Europe has now got threats. People are asking France and Germany, who are the two largest powers, to do more. They are going to up it. President Macron, to his credit, believes it should be done, but they have to up their defence spending by 40%. I have not calculated how much it affects their defence spending. I think France now spends €34 billion. It would have to go up to €50 billion, an increase of €16 billion in seven years. Not only a 2% increase in GST would help; probably a 3%, 4% or 5% hike in GST just to pay for the increase in defence spending.
Germany, even with its troubled past, is now asked by the European Union (EU) states to do more militarily. That debate is over. I have attended the Munich Security Dialogue, as Defence Ministers in Singapore have, for the past decade or more. And, at that time, there was almost a schizophrenia. \"We think we want Germany to do more but with your troubled past, maybe you should not do more.\" That debate is done. Germany, you must do more. But after 25 years of cuts to the German defence budget, the German military – the Bundeswehr – is underfunded, with entire weapons systems unusable, because they either lack spare parts or have been poorly maintained. By the German government's own assessment, less than half of Germany's submarines and planes are operationally ready. The platforms are there but only half can be activated.
When the Aceh tsunami occurred, we activated three of our four Landing Ship Tanks (LSTs). It happened on Boxing Day – no way you could have had prior warning. On activation, all moved – 75% of the assets of that particular platform. The fourth was in the Gulf, as Deputy Prime Minister Teo has reminded me. So, all four were out. If we had to send another one, we would have to borrow it.
The Bundeswehr will need many years to modernise its platforms and make up for lost time.
When I share these lessons, I say these are salutary lessons that we must voraciously imbibe, because someone else has paid to learn them. That is the cheapest cost to any country.
We intend to keep our defence spending steady despite countries around us spending more and against wide-ranging security threats. But we have to prioritise and focus and optimise our resources.
Some Members have asked about counterterrorism – Assoc Prof Dr Muhd Faishal, Assoc Prof Fatimah Lateef. SAF takes terrorism very seriously, so much so that we have to reorganise, train and equip differently. Members have pointed out, including Dr Teo Ho Pin, how we now train. We have the capacity to train 18,000 SAF NSmen for homeland security.
We learned very valuable lessons from Marawi, another painful lesson that someone else learnt. So, we went there. We absorbed the lessons. I made a trip, Deputy Prime Minister Teo made a trip recently, where they found out and they admitted that they underestimated the problem, both the number of fighters and how well they were equipped.
The terrorist fighters there were equipped. Snipers had good weapons, heavy machine guns, and they even had anti-tank weapons. The terrorists conducted urban warfare against soldiers and policemen of the Philippine authorities who were not trained for that kind of fight. That is why it took five months for the Philippine armed forces and homeland security to dislodge the militants from that city. And this, after many lives lost and the city devastated. I think the bill they have recently estimated will cost about US$2 billion. This is just one small city. The experiences there confirm that SAF is on the right track in building up our counterterrorism capabilities. In the span of a year, we have trained some 18,000 servicemen for homeland security and we started the new institute called the Island Defence Training Institute. I have talked about Singapore Armed Forces Training Institute (SAFTI) City last year. When completed, it will allow our soldiers to train more realistically for homeland security and counterterrorism because it will be a different Pasir Laba that you and I were used to. Buildings, I do not know how high you can build it, but at least higher than what we have now, and to teach them how to fight in that kind of scenario.
Members rightly pointed out that we have to do more with other Government agencies to respond to these terror threats. We are working together with the Police's Frontline Policing Training Centre. We will conduct joint training and equip NSmen with the skills to perform these homeland security operations. At sea, various agencies are coordinated, whether it is the Navy, Police Coast Guard, Maritime and Port Authority (MPA) or Immigration and Checkpoints Authority (ICA), so that we keep our waters safe.
But as much as we prepare at home, Singapore needs to be part of the international effort to deal with terrorism at its source. That is a sound strategy because, if you do not do that, you are just dealing with the problem too late and you allow the problem to mushroom.
We did that against Al-Qaeda, from 2007, in Afghanistan, after which the threat has dissipated for now. Our SAF troops have been deployed in Iraq since 2014 against ISIS and with considerable progress. The coalition effort, led by the US, has taken Iraq back from ISIS control. US Secretary of Defense James Mattis wrote to me recently to ask Singapore to commit more resources for the next phase of consolidation after our hard-won victories. Cabinet has approved for Singapore to maintain our commitment to counterterrorism globally, for our own interests. I am announcing today that the SAF will further deploy troops to Iraq later this year. We will send SAF troops to help train Iraqi Security Forces to counter improvised explosive devices, as well as in tactical weapons and combat tactics.
As Assoc Prof Fatimah Lateef suggested, we need to work with ASEAN on counterterrorism, and some others have pointed that out too, including Mr Pritam Singh and Mr Low Thia Khiang, especially because the risk of foreign fighters leaving Iraq and Syria has gone up. So, paradoxically, as the problem there diminishes, they run away; and they come back, whether it is Malaysia, Indonesia, the Philippines or even Singapore.
The Philippine Special Operations Command came to Singapore last December for a two-week professional exchange and our offer to the Philippines Armed Force to use our unmanned aerial vehicles (UAVs) for surveillance remains open. Deputy Prime Minister Teo, when he visited Philippine leaders, reiterated that offer, too, recently. SAF stands ready to join the Sulu Seas patrol when invited. As ADMM Chair, we recently proposed a counterterrorism framework – there were many programmes but we felt we needed a comprehensive framework and we devised the 3Rs – the equivalent to reading, writing, arithmetic. Rather, it is \"Resilience, Response, Recovery\", to coordinate our responses to prevent, deal with and recover from attacks.
Dr Lim Wee Kiak asked about the growing cyber threat, indeed, a transnational threat with effects that could be devastating as physical attacks, whether it is power grids, whether it is financial grids, whether it is hospitals, and so on and so forth.
At the whole-of-Government level, Deputy Prime Minister Teo chairs our Coordinating Inter-Ministerial Committee, the Security Policy Committee. But at the Ministry level, we are responsible for our own Ministries as well as the ecosystem in which that Ministry is in charge of.
Members have asked who the attacks come from, how often and whom they are targeted at. I think Members can guess at the answer. The attacks are conducted by freelancers, as well as organised state and non-state actors. Senior MINDEF and SAF leaders, as well as departments handling sensitive information have been deliberately targeted, for example, by \"spear-phishing\". Those of you in information technology (IT) will know what this is.
In other words, you get innocent-looking emails addressed to you, but it contains malicious software. If you click on the attachment, or sometimes even when you click on the email – I do not think they have reached a stage where you look at it and the malicious software might come. They have not succeeded, but they will keep trying.
As we do in the physical arena, MINDEF adopts a multi-layered approach to cyber defence, including the ultimate step of physically separating sensitive systems from the Internet. Internally, there is a system – we do not want to talk to you, please do not come in. Sensors monitor internal networks 24/7. We have \"red teams” which are testing for vulnerabilities.
Mr Zainal Sapari asked about our Bug Bounty programme. Thank you for affirming it. I thought it was a good idea. It attracted 260 white-hat hackers, all bona fide, and improved our systems at relatively low cost. We have shared lessons with other agencies, like the Government Technology Agency (GovTech) and the Cyber Security Agency (CSA), and the results are encouraging. I do not think it is a one-off. It may not be an exact mould, but we will think of these ways to crowdsource. For the Internet, we can do it; we can crowdsource and actually leverage off that connectivity.
As Members have pointed out, we will build up a cyber force with more SAF regulars and full-time staff. We will also use NSmen. This year, we will take in the pilot batch of full-time National Servicemen (NSFs) under the Cyber NSF Scheme. For those of you who have friends, children or children of friends who are interested and suitable, tell them about this. For those interested and suitable, we will offer them regular contracts of varying durations. If they accept, we will also invest more on training them. We will also set up a cyber defence training and exercise infrastructure to train them. So, this is long term, needs a long-term plan, and we have begun.
Mr Teo Ser Luck asked how we can be prudent in spending, and he is spot on. We know our resources are limited. We have to be prudent, but we will not compromise. SAF will not compromise our defence capabilities but we have found ways to optimise resources. We want to stretch every dollar, where we can.
We have used innovation and better work processes. SAF saved $200 million last year, the highest in the last four years. I think we can do more. For instance, our new LMVs will cost around $65 million less for the whole fleet to maintain across their lifetime. They replaced the Patrol Vessels. LMVs are much more capable than the Petrol Vessels but will cost less. Why? Because they have less crew, they are more efficient to maintain.
The RSAF’s aerostat, our big balloon – yesterday, there were some discussions about floating balloons – let me just say that when SAF floats balloons, it is there to stay, and it is meant to be up. Our aerostat achieves continuous aerial surveillance, just like a plane with radar, but saves about $29 million a year. It is a jolly good idea.
SAF upgrades existing equipment, where possible, to avoid buying new platforms. Our first instinct is not to buy, but to upgrade. And that is what we did for our whole fleet of Leopard Tanks and Chinooks.
We must harness new technologies, as Dr Teo Ho Pin pointed out. Because even if you chose to give us more money in exchange for manpower, we cannot do it. We just do not have the manpower. We recognise that as an inherent constraint, and we started to deal with it, I think, probably one or even two decades ago, in terms of redesigning our systems, in terms of maintaining our systems. Let me give Members some examples.
Dr Teo Ho Pin mentioned that the older ORNS, those in their 60s, would not be so adept. We are not planning to induct them into our Armed Forces, because their liability ends at 40 to 50. Thank you for the idea, Dr Teo. We will consider it.
Of those who are in our Order of Battle (ORBAT), there are some examples. Instead of soldiers conducting surveillance from observation towers, the Army will build unmanned towers to watch over Jurong Island and the surrounding waters. Those towers will watch 24/7 in all-weather conditions, and it will reduce the total number of soldiers required by a third – a significant number.
RSAF is moving towards a Smart Airbase. What is a Smart Airbase? For example, it will use drones to perform runway damage assessment. Members will notice, for instance, at the recent Air Show, it is beautiful to watch, and people clap in glee, but after the fighter planes take off or land, we have to do visual checks to make sure that the commercial planes can come in, too. Same thing for each take-off; you have to do visual checks because even small debris make a difference.
We can use drones to perform runway damage assessment and respond to other intruding drones. We want to make it more efficient by leveraging automation for aircraft maintenance and using sensors for pre- and post-flight aircraft checks. I think it is achievable and we are doing trials to achieve that kind of Smart Airbase.
The Navy is integrating data from all agencies. The maritime environment is a different environment from the air. There are lots of moving parts and different agencies. We want to gather data from all sources, construct better algorithms to detect anomalies and then pre-empt, say, possible terrorist threats from the sea.
For surveillance, we want to use cameras with smart sensors with automated surveillance. We do not need a man in the loop, or a man in every loop, to say, “this vessel is behaving in a different way from other vessels”. So, just alert you, so that when the man in the loop makes a decision, you respond. We do not need manned vessels for some scenarios. Unmanned vessels will soon be used for patrols and underwater surveys. All these give us hope that we are moving towards an SAF that is just as, or even more effective, but can use less manpower.
We agree wholeheartedly with Members here who pointed out that we cannot do this alone. We have to join other partners or other countries. Mr Jessica Tan, Mr Low Thia Khiang, Mr Pritam Singh, thank you for affirming that what we decided as ADMM Chair this year is important. We said that there will be three areas: first, counterterrorism; second, confidence-building measures and code for unplanned encounters at sea and in the air; and third, chemical, biological and radiological threats. That was really precipitated because of the Korean Peninsula instability, and most countries are not prepared for those kinds of threats.
As Members pointed out rightly, CUES has been accepted. What is the possibility of a CUES for air being accepted, is a tough one, I agree. But if we can do it across 18 nations, I think that will send a very strong signal. So, we will try. We will at least start the ball rolling and see whether we can get consensus from the 10 ASEAN countries and the Plus-eight. I think we can achieve that. I think among some of them, they will be more willing. And if we can talk to them and say, \"This works for you\", I think we would have done a significant contribution.
Some asked about the exercise, Mr Low and Mr Pritam Singh as well, whether we are practising CUES. Indeed, we are. We do not even have to wait for the China-ASEAN Maritime Exercise. We are going to do it with all 18 ADMM-Plus countries – practise CUES, because they have agreed collectively to adopt CUES and practise it in our exercise in 2019. And in 2018, I suspect, this year, with China, it may be in undisputed waters, so there would not be a chance to practise it. The Member asked whether the meetings of the ADMM-Plus will be yearly. Indeed, it will, from this year onwards. They have agreed and Singapore will be the first to host these annual meetings.
With the US, we have achieved new milestones. Both the Republic of Singapore Navy (RSN) and RSAF conducted bilateral exercises in Guam for the first time last year, flying with US Pacific Air Forces (PACAF) and exercising across the full spectrum of anti-submarine, anti-surface and anti-air warfare with the US Navy.
With China, we will build on the positive momentum from the visit of Chinese Defence Minister Chang Wanquan early this year and we have deepened ties with the People's Liberation Army (PLA). With India, we concluded a Navy Bilateral Agreement and we will increase maritime security cooperation between our countries, especially around the Andaman Seas. For Australia, we will construct SAF training facilities in Queensland, due to begin in 2019.
We will build strong partnerships, but all of us here know that, ultimately, we, Singaporeans, must be accountable for our own defence. When we are dependent on others, we have failed. Our NSmen will be better trained through new facilities in the SAFTI City and in Australia. With continued investments steady, year after year, which Members of this House approve, SAF will continue its transformation onwards.
The next-Gen SAF will use game-changing technologies and new fighting concepts. On the ground, they will operate unmanned, autonomous systems, to multiply their forces. Our skies will be better protected with advanced weapons systems. We recently added our Aérospatiale Terminale (ASTER)-30, which are here. Our territorial waters and sea lines of communications will be better secured with manned and unmanned vessels alike. That is the vision. That is what we are investing in, and we will be equipped to deal with ever-evolving cyber threats.
Mr Chairman, let me conclude. That Members of this House voted for Budget 2018 yesterday, sends a strong signal to our own people and to the world. In doing so, we have kept faith with what we were entrusted with by previous generations – a strong SAF able to ensure our independence and protect Singaporeans. But that a strong SAF was not built or maintained by happenstance or even good intentions. For each generation, it will require a conscious, deliberate decision. It will require sacrifices to commit resources and of themselves.
Previous generations took that hard decision. As Mr Lee Kuan Yew said to SAF officers at a Temasek Society dinner in 2012, “From the day we started, I knew that we needed a strong SAF and I believe that still remains today. Without a strong SAF, there is no economic future, there is no security.”
The Members of this House who voted for the Budget yesterday united themselves with this belief and the resolve of the Pioneer Generation. If each generation reaffirms and renews its commitment, then a strong SAF will continue to keep Singapore safe and sovereign with a secure future for another generation. [Applause.]
Assoc Prof Dr Muhammad Faishal Ibrahim: Mr Chairman, since its introduction in 1967, NS had served as the backbone of the SAF and has been instrumental in deterring potential adversaries and establishing the bedrock of peace for Singapore over the last 50 years. Potential adversaries know that when they want to attack Singapore, it is a fight against all of us.
The political atmospherics in the region have waxed and waned over the years. As we now enjoy warm and friendly relations with all our ASEAN partners, some segments of our society have questioned if NS remains relevant in this context. After all, the probability of conventional conflict is perceived to be remote.
Recognising that NS is premised on the need for national defence, can MINDEF elaborate on the role that NS plays in Singapore today and its importance, given prevailing geopolitical conditions?
Mr Zainal Sapari: Sir, across the years, SAF has drawn heavily on Singapore’s human capital in its pursuit of a strong military force capable of protecting Singapore. However, several trends in recent years have threatened the size of the SAF's enlistment pool, chief among them, the trend of our falling birth rate and the ageing population.
As Members of this House will recall, the Minister for Defence noted last year that SAF will see a one-third reduction in manpower supply by 2030. In view of these impending manpower constraints, what are the manpower challenges faced by SAF? What measures are being taken to ensure that these manpower challenges will not compromise our overall military capability?
Mr Teo Ser Luck: Like many of my male colleagues in this House, we have fond memories of NS, and NS is the rite of passage for all Singaporean males, regardless of background, and only in NS we get to mix around with peers of different backgrounds, different status and come together and work together. So, besides preparing our young people, our young men, for operations, it also has an important role in enhancing social cohesion. NS, in that sense, is an integral part of our society. And what is SAF doing to build more common experiences and improve cohesion between NSFs from different walks of life during their service?
Mr Ong Teng Koon (Marsiling-Yew Tee): Mr Chairman, despite our best efforts, our attempts to increase the birth rate have a limited impact so far. This has serious implications for our economy and also our security. As we look to the future, manpower challenges will mean that each individual that serves NS becomes increasingly precious, both during service and after. During service, each individual will now have a bigger role to play as the total number of servicemen and women decline due to smaller cohorts.
After service, we need to ensure that all Singaporeans are equipped to thrive in the new world of work. We will struggle as a nation if all our males are two years behind their counterparts in the acquisition of skills they need in order to survive in the workplace of the future. I would like to ask the Minister how is MINDEF embracing new technologies to maximise the potential of each NSman, both during and after service.
Mr Baey Yam Keng (Tampines): The Vocational Interest Initiative allows enlistees’ interests to be taken into consideration when determining the NS vocation that they are suitable to be deployed to. This aims to offer a more positive, fulfilling and meaningful NS experience for our servicemen. At the same time, it encourages our NSmen to take greater ownership of their roles, responsibilities and contributions in ensuring Singapore's safety and security.
I checked out the Central Manpower Base (CMPB) website and found that the videos and handbook on the 33 NS vocations in SAF, the Singapore Police Force (SPF) and the Singapore Civil Defence Force (SCDF) very useful. This will provide greater insights for our young pre-enlistees to make more informed choices. I note that the final posting results will look at factors, such as physical fitness, suitability to perform tasks and operational requirements, besides the interests of the new enlistees. This is rightfully so.
I would like to ask MINDEF to elaborate on the rationale for this initiative, and if there are other changes to how SAF deploys its NSmen.
Since the launch of the initiative last November, I believe there have been two or three cohorts being enlisted, and one having completed their Basic Military Training (BMT). Can MINDEF share any early findings of this initiative? How have the interests been matched, and the response of the enlistees?
Ms Low Yen Ling (Chua Chu Kang): Mr Chairman, according to CSA, there had been a spate of cyberattacks in Singapore over the past year. Investigations revealed that some attackers employed sophisticated anti-detection and infection techniques to access information through cyber backdoors. Some of these advanced persistent threats (APTs) had malware signatures that are unknown, even to the anti-malware databases.
We have all heard from Defence Minister Ng Eng Hen just earlier. He spoke about the threats that are posed by malware emails. So, these developments demonstrate that cyber threats to Singapore are becoming more sophisticated, making detection and forensic investigation more difficult. Notably, some of these sophisticated cyberattacks appeared to be targeted at public organisations in an effort to gain access to critical information and data. Not surprisingly, MINDEF was targeted by deliberate hacking attempts on its Internet-facing system early last year.
Given our small population and geographical size, SAF relies heavily on digitisation and networking in our capabilities to achieve a military edge against our potential adversaries. However, these military networks and systems and the sensitive information they contain make them an attractive target of cyberattacks. As part of the ongoing efforts to strengthen its cyber defence capabilities, MINDEF recently announced the launch of a Cyber NSF Scheme to tap on cyber talent with the requisite aptitude and skills of the NSF pool. Can MINDEF provide and update on the recently announced Cyber NSF Scheme? How sustainable will the scheme be, given the much talked about reduction in the population size, thus a smaller number of NSFs available?
Mr Ong Teng Koon: Mr Chairman, technology is evolving at an accelerating pace and has the potential to make our lives better in ways that would have been unimaginable just a few years ago. We can now effortlessly try how much physical activities we do, where we go and whom we interact with. The data that we capture can be mined to provide insights into almost every aspect of human life.
This technology can be used to improve the effectiveness and safety of NS training or, at the same time, helping individual serviceman to develop useful skills. For example, advances in virtual reality and related fields enable us to create new types of training. Individual troops can practise critical skills in a safe environment and commanders can try out different strategies to see which one will work best. The potential to apply technology to NS is limited only by our imagination and our willingness to take the lead. We can improve training outcomes whilst reducing risks to our servicemen.
I would like to ask the Minister how SAF is leveraging technology to enhance the NS experience.
Ms Joan Pereira (Tanjong Pagar): Mr Chairman, since its introduction in 1967, NS has remained the cornerstone of Singapore's defence, providing the security and stability which underpin our shared prosperity. To date, more than a million have served NS and NS has become deeply entrenched as a national institution.
Going forward, it is important that this institution continues to enjoy the strong support of every Singaporean in every household and in every community. Over the past four years, the family and community council within the Advisory Council on Community Relations in Defence (ACCORD) had developed initiatives to strengthen community support for total defence and NS. Some of these initiatives include (a) the engagement of new citizens and Permanent Residents (PRs) to understand the need for defence and support the NS institution; and (b) the partnership with the Singapore Armed Forces Reservists Association (SAFRA) and the People's Association (PA) to encourage retailers to offer discounts to NSmen in recognition of their service to the nation. We can do more.
Military service is tough and the sacrifices are real for our NSmen who spent time away from their careers and loved ones in defence of our nation. What else can MINDEF and ACCORD do to educate the public on the sacrifices of our NSmen and galvanise community support for these men serving our country?
Mr Cedric Foo Chee Keng (Pioneer): Mr Chairman, my cut is on MINDEF’s efforts to recognise the contributions of our NSmen and the initiatives undertaken by ACCORD to increase the public’s awareness of NS.
SAF underwrites Singapore’s sovereignty upon which all Singaporeans can live in peace, and secure in the knowledge that Singapore is well-protected. NS is a duty for all male Singaporeans and second-generation PRs. It is the cornerstone of Singapore’s defence and security. For many Singaporean males, NS is a rite of passage at about 18 years of age, where he leaves the comforts of home and takes on the commitment of defending his country, his family and friends. After the initial two years of full-time commitment in NS, the NSF transitions to ORNS duties as NSmen, and this is about 10 years in length. During this time, our NSmen will have to juggle career and family commitments as well as their national defence duties. Therefore, it would be right and necessary for us to recognise the contributions of our NSmen.
Just last year, we celebrated NS50, where the whole nation came together to thank successive generations of NSmen for their contributions to our nation’s defence over the years. Singaporeans from all walks of life took the opportunity to recommit themselves to play their part to protect our Independence, values and way of life. I am sure that many of our NSmen, past and present, benefited from the various NS50 promotions and offers, generously supported by the private sector as well, who understood the importance of national defence.
Yet, this widespread show of support across the public and private spheres should not be a one-off or should not be limited to milestone years alone. Our NSmen must continue to know that their sacrifices to serve NS are appreciated and not taken for granted. Hence, I would like to ask the Minister how has MINDEF continued in its efforts to recognise the contributions of our NSmen.
ACCORD was established by MINDEF in 1984 as a channel for the community to provide feedback on issues concerning Singapore’s defence. In 2014, it was restructured to comprise the ACCORD main council and three sub-councils covering Employer and Business Council, Family and Community, and Educational Institutions. I would like to ask the Minister to provide an update on the initiatives implemented by ACCORD.
Dr Teo Ho Pin: Sir, NSFs undergo various types of military and skills training while serving their NS. Many of these knowledge and skills, such as leadership, planning, command and control or safety measures, are applicable when the NSmen join the workforce.
Sir, can I ask the Minister to provide an update as to what is MINDEF doing to enable skills and knowledge acquired by our NSmen during NS to be recognised beyond NS?
Assoc Prof Randolph Tan (Nominated Member): Sir, the importance of defence in Singapore has become more critical rather than less over the years. Defence spending must keep up with Singapore's partnerships and match the growing sophisticated needs of our advanced economy. Like all areas of Government, defence spending will be put under pressure in years to come. In anticipation of this, defence spending must keep up with the state of the economy. This includes the area of manpower use and productivity.
Sir, in our defence, one of the five pillars of total defence calls for having a strong and resilient economy. Strength and resilience of an economy are based on, among other things, a workforce which embraces productive and efficient work practices and habits. The natural starting point for promoting and understanding how individual contribution to workforce performance is part of economic defence, is full-time NS.
Full-time NS is a major milestone in our young people's lives, often the most significant initial encounter with a regulated work environment. Even for those who deferred entry into the labour force after NS because of studies or other pursuits, the concentrated immersion in full-time NS work cultures so early in their adulthood exerts a major influence over the attitudes of young people. Intensity and pervasiveness of the experience present a valuable opportunity for inculcating a productivity-driven work ethic in NSFs.
In addition to ensuring that the skills picked up in NS are relevant to the needs of the economy, what can be done to take advantage of opportunities to assess and improve the individual productivity performance of NSFs? It will help to ensure the sacrifice of time and effort made by young people in full-time NS have a continuing relevance to their working lives.
I have three questions for the Minister: what is the role of full-time NS in shaping the work ethic of young Singaporeans? What does NS contribute to promoting an awareness of the importance of productivity performance and efficiency at both the individual and organisational levels? And, finally, what are the possibilities for coordinating regimentation in the Armed Forces with productivity and efficiency?
Ms Low Yen Ling: Chairman, Total Defence was launched in 1984 to galvanise every Singaporean to play our part in building a strong, secure and cohesive nation that is resilient against any crises. Singaporeans are familiar with the five pillars as we commemorate Total Defence Day on 15 February every year.
Today, we are confronted with emerging threats, such as disinformation campaigns, that can be more insidious because they target the hearts and minds of our people over the long run and are harder to detect. These are aimed at breaking societies from within by exploiting our social fault lines to weaken national unity, erode trust in Government and diminish confidence in the nation's future.
At the same time, Singapore society is also evolving. Over the years, we have seen more inter-ethnic and transnational marriages. This growing diversity may give rise to new potential fault lines and make it more difficult for us to maintain social harmony.
Compounding the challenge, our population is also increasingly reliant on social media to get news and information on current affairs, making them more susceptible to misinformation online. Against this backdrop, Singapore's approach of Total Defence has proven to be a remarkable presence and also provided a bulwark against such insidious threats.
Can MINDEF provide an update on its 2018 Total Defence campaign and how we intend to address these threats, going forward?
Mr Ong Teng Koon: Chairman, on most objective measures, we are living in the best of times in history. With declining poverty and hunger and falling rates of death due to disease and war, yet countries are also faced with growing threats to their economies and their ways of life. These threats can take many forms. The most obvious and high profile are, of course, terrorist attacks, such as 9-11 or the London bombings. But just as dangerous to the long-term health of the nation are most subtle forms of threats, such as the ramping up of social and societal tensions through propaganda and fake news.
We have seen that even mature western democracies are not immune to this form of cyber-psycho terrorism with foreign activists leveraging social media to provoke both sides on issues that divide society, such as racism, inequality or gun rights. These threats are not easy to define or detect and even more difficult to fight.
I would like to ask the Minister: how is MINDEF working with all the relevant agencies to ensure that we continue to enhance our social cohesion and psychological resilience?
Mr Amrin Amin (Sembawang): We are proud of our multiracial, multi-religious global society here in Singapore. We may worship different gods and practise different cultures and traditions, but we live in peace and harmony in this compact Little Red Dot.
Our status as a global hub has helped grow our economy and added to the vibrancy of our nation. However, we are also aware that we cannot take all these for granted.
If we look overseas, we can see how race, religion and immigration issues can affect not only society and politics but also result in terrorism and violence. In Southeast Asia, the return of ISIS foreign fighters to their homeland has resulted in the persistent threat of radicalisation in our region. These terrorists will use race and religion as a “socio-weapon” to tear people apart.
In Singapore, we are not immune to the threat of terrorism, and we know that there are people in recent years that have been self-radicalised. In Europe and the US, we have witnessed the manifestations of globalisation backlash in US politics, Brexit and the rise of anti-immigration parties in Europe.
As these threats exploit the fault lines in our increasingly diverse society to divide our people, what can we, as Singaporeans, do as part of Total Defence to strengthen social cohesiveness and affirm multiculturalism to fortify our defences against the scourge of terrorism and in the face of other external pressures?
Mr Vikram Nair: Chairman, the world today is increasingly interconnected. The Business Times reported that 70% of Singaporeans are active social media users on the go, more than double the global average. This means that Singaporeans are also more easily exposed to false news and pressures found online, which could tear our social fabric.
The threat of fake news is pervasive and insidious. On social media, articles and stories usually go viral and get circulated because they are sensational or they corroborate one's own beliefs and views. However, it is not always possible to verify the truth of stories being circulated. This makes it fertile grounds for the spreading of fake news.
To make matters worse, fake news is also usually profitable. Revenues generated online are usually correlated to eyeballs and circulation, not the truth or quality of the stories involved. One just needs to share sensational stories without having to pay journalists to actually investigate and report the truth. Thus, in an environment where purveyors can make profits by keeping costs low and getting wide circulation, traditional media companies that do real investigation and report real news, which is usually less sensational, are suffering, with readerships dropping for traditional news providers.
This is a double whammy because it means that fake news ends up circulating, while real news requires paid subscriptions, is suffering and struggles to counteract the fake news.
An even more worrying development is the allegation that state actors may also be involved in using fake news to influence the politics of other countries. Our Foreign Minister had very kindly confirmed that this was the case in Singapore as well, but he was probably too diplomatic to name the state actors involved.
The most shocking of the recent allegations, in fact, occurred in the greatest power, the US, where allegations are being made in some quarters in the US that there was Russian interference in their elections. It is already common ground that there was a great deal of fake news being circulated in the last US elections, with candidates on both sides being victims of fake news stories.
Is MINDEF concerned about this threat of fake news for our defence, particularly where it comes from state actors? If so, what steps does MINDEF intend to take to combat threats from fake news?
Dr Teo Ho Pin: Sir, the SAF Volunteer Corps (SAFVC) allows Singaporeans from diverse backgrounds who are not eligible for NS to also make contributions to Singapore's defence. Its main mission is to serve in assigned roles alongside SAF NSFs, NSmen and regulars to enhance the security of Singapore. SAFVC is also a great opportunity for citizens from diverse backgrounds to meet, train and bond together. This contributes to a more resilient Singapore.
Sir, can MINDEF provide an update on the SAFVC recruitment status and also share with us the types of voluntary work assigned to SAFVC members?
Mr Baey Yam Keng: Mr Chairman, the world today is characterised by the rise of the Internet and globalisation. Our youths will grow up and mature in an environment that will grant them access to an immense variety of views and experiences.
While this opens up many opportunities for education and a deeper appreciation for diversity, it will also likely reshape their sense of identity in new ways. In particular, their understanding of what it means to be “Singaporean” will no longer be strongly defined only by an understanding of Singapore’s history, culture and our vulnerabilities.
However, Singaporeans’ commitment towards defending our country rests on whether we possess a good understanding of our vulnerabilities and an ingrained conviction of the importance of what we are defending. While it is important to instill this understanding in our youths from a young age, growing global interconnectivity and the ensuing potential dilution of the “Singapore Identity” will continue to pose a strong challenge to our efforts.
I note that MINDEF has used many innovative and interesting ways to engage the public of different age groups on Total Defence, for example, N.E.mation! video competition, \"Guardians of the City\" strategy card game, Total Defence (TD) Badge Programme, TD Puzzle, colouring activity and documentary-drama series \"It Will Never Happen Here\".
How has MINDEF’s experience been these years and how could MINDEF reach out better to youths today to deepen their understanding of Total Defence and encourage them to play their part?
Assoc Prof Fatimah Lateef: Sir, our SAF has come a long way. It has moved on from just being a defence imperative to being a cultural institution, which is a part of Singapore's national identity.
Moving ahead, our falling birth rate will pose a significant challenge. Our NS enrolment will decrease by 30% by 2030. This may mark a timing for decision to utilise more technology, unmanned systems and so on.
The future of warfare may be in the cyber domain. The technological disruption will not spare the area of defence. Data analytics will become extremely crucial. Do we have personnel who are highly trained in these areas and can they train others? How are we preparing our young recruits for this? What about psychological preparedness and resilience development? These are also important.
Finally, can the Minister also share with us on the Centre of Excellence for Soldier Performance (CESP) – what it does and how the curriculum is adapted to meet our needs?
Ms Joan Pereira: Chairman, besides the community at large, families also play a very important role in supporting our NSmen. At the individual level, families are the primary source of moral, emotional and social support for our NSmen. Strong families will be able to pick up signs of emotional or psychological stress in our NSmen and seek assistance before such pressure escalates.
At the national level, families sustain NS as a national institution as they continue to encourage successive generations of Singaporean sons to undergo the rite of passage that is NS. Thus, families are an important group of people that we can engage to ensure the well-being of our NSmen and NS as an institution.
Thus far, ACCORD has partnered the Singapore Council of Women's Organisations (SCWO), the Women's Integration Network of the People's Association and the Young Women's Leadership connection to engage the mothers, wives and girlfriends of our NSmen through information sharing sessions. ACCORD has also collaborated with the Families for Life Council to engage NSmen and their families, and Families for Life events, such as the Families for Life NS 50 Picnic, held at the Singapore Discovery Centre in August 2017.
Looking ahead, how can the Ministry step up its engagement of families so that they are better able to support our NSmen in their NS journey?
The Chairman: Minister Ong Ye Kung.
The Second Minister for Defence (Mr Ong Ye Kung): Mr Chairman, Sir, I thank the members for all their questions. Dr Maliki Osman and I will try to answer all of them.
Last year, we commemorated 50 years of NS in Singapore. Assoc Prof Muhammad Faishal Ibrahim asked about the continued importance of NS. It remains the bedrock of the strong and credible SAF that we have today.
Since 1967, more than one million Singaporeans have invested their time and their blood, sweat and tears in faithfully performing their NS duties. Their and their families’ sacrifices keep our country safe and secure and, as Singaporeans, we can decide our future.
One of our greatest defence assets is that Singaporeans are strongly behind NS. Mr Cedric Foo asked about this, and that this cannot be one-off, just a one-time good feeling during NS50, but sustained support for NS for the long term.
Some countries, in fact, struggle to maintain public support for their conscription systems. Minister Ng Eng Hen mentioned Lithuania; another example is Sweden, which got rid of NS a decade ago, only to have to reinstate it as they re-evaluate their security environment.
Our key challenge today is twofold. The first challenge, which is a question by Mr Zainal Sapari, is demographic, leading to falling cohort sizes and a shrinking enlistment pool. I think Assoc Prof Fatimah Lateef asked about that, too. The second challenge is the evolving new unconventional security threats, such as terrorism, cyberattacks and also disinformation campaigns or fake news. I think Mr Amrin Amin asked about this.
So, the imperative is to do more with less, to work with fewer but more capable servicemen. The future capability and effectiveness of SAF will not be based on the number and quantity of people we have. Instead, it will be based on their quality and ability. We will achieve this by enhancing three things. One, individual ability; two, strengthening system efficiency; and three, leveraging technology. Let me explain.
First, enhancing individual ability. The foundation for operational readiness is, first and foremost, physical fitness. Fitness is also very personal, unique to the individual, with its impact on the individual’s health extending well beyond their time with SAF.
We will leverage technology to deliver targeted and effective training for every serviceman. The new CESP ‒ Assoc Prof Fatimah Lateef asked about it ‒ is adopting a scientific, data-driven approach to optimise the performance of every soldier. That is the key purpose of the Centre. It uses wearables and data to better understand each individual soldier’s physiological condition, and then prescribe more effective and progressive training, while minimising the risk of acute injury. The training can, in fact, be customised to what the soldier is supposed to do and what their vocation and task are. So, it is the granularity that we can now administer training to fit a soldier's physiological condition as well as his responsibility.
We will also provide servicemen with better tools to keep fit and increase the choices and accessibility of fitness training. We are partnering SportSG and the Health Promotion Board (HPB) to introduce the Quick High Intensity Interval Training (HIIT) Programme. NSmen will be able to attend the Quick HIIT programme at community spaces and sports facilities.
Starting this week, we are also piloting the use of wearable technology at SAF Fitness Conditioning Centres and SAFRA gyms. So, rather than adhering strictly to the SAF-conducted Individual Physical Proficiency Test (IPPT) Preparatory Training (IPT) regime, NSmen will now be able to choose the type of exercise they prefer or need. They can cycle, run, do weights or interval training and then clock in their fitness progress via wearable devices. And as long as they achieve the required calories and intensity ‒ we measure only the output but we do not measure the input ‒ we will consider it a valid IPT session. This is a significant shift, giving NSmen choice, convenience and empowerment in improving their fitness. After all, fitness is an individual, not an SAF, responsibility.
Individuals can only be effective if units are cohesive and servicemen have a strong sense of camaraderie forged through common experiences, which Mr Teo Ser Luck asked about. BMT is a large part of this shared NS experience. Since the establishment of the Basic Military Training Centre (BMTC) in 1987, it has become ‒ as Mr Teo Ser Luck put it ‒ a rite of passage for many male Singaporeans to complete basic training \"overseas\" – on Pulau Tekong.
However, many NSFs do not go through BMTC. They are enlisted directly into combat units, in what is commonly known as mono-intake units. From this year, we will fully implement the One BMT programme, where practically all combat-fit NSFs will undergo the Pulau Tekong experience.
Hence, mono-intake units will now be enlisted to BMTC on Pulau Tekong for a common nine-week BMT and stay together as a unit from the start of their NS journey. These NSFs will benefit from BMTC’s dedicated training experience, infrastructure and use of technology. Most importantly, they will share a common experience, within the unit, as well as within the larger SAF tribe.
A second major thrust is to strengthen system efficiency. This means improving the way the system deploys the right serviceman to the right job, to maximise his contribution and potential. The most important initiative under this thrust is the review of vocation requirements. Mr Ong Teng Koon asked about using technology to maximise the potential of servicemen. Indeed, it is because of technology that we are now in a position to review vocation requirements.
With technology, you can no longer draw a firm line between combat-fit and non-combat fit. Take, for example, the personnel operating autonomous systems in the control room. They are in combat, even though they are not physically exerting. So, many more servicemen can now perform what could have only been done by servicemen who used to have to meet the most stringent physical requirements. For example, physical requirements and demands for vocations, such as combat engineers and security troopers, are now much less as we leverage technology.
This has opened up opportunities for us to more meaningfully deploy NSmen according to their fitness and abilities. Since last year, SAF has deployed more than 600 servicemen to vocations that they were previously ineligible for. And the number will rise.
Mr Baey Yam Keng asked about the Vocation Interest initiative, where pre-enlistees will indicate their interest in 33 NS vocations across the SAF, SCDF and SPF. There is no guarantee that servicemen will get the vocations they indicated interest in, because the primary consideration is still our defence operational requirements. But we will take their interests into consideration during the deployment process and try our best to match them.
Mr Baey Yam Keng mentioned that one group has passed their BMT and asked for an update. Actually they have not. They have been enlisted. They have indicated their interest. Next week, they will have their Passing Out Parade, out of BMT.
Servicemen have found the initiative helpful. More than 80% of those surveyed felt that the initiative encouraged them to take greater ownership of their NS roles and responsibilities. Many asked for tough vocations, like Infantry and Guards. The inaugural intake of about 4,000 NSFs who indicated their vocation interest will be deployed to their respective vocations later this month. We will continue to refine and improve the system as we go along.
We are also leveraging NSFs' talent in niche areas, such as cybersecurity, through the Cyber NSF Scheme, which Ms Low Yen Ling asked for an update. This was announced two weeks ago. There has been an overwhelmingly positive response since I announced the scheme, with numerous pre-enlistees writing in to express interest. So, we will be putting the applicants through a rigorous selection test on their skills and aptitudes. We will not look at their academic grades so much. The scheme has been launched as a pilot trial for those enlisting in the latter half of this year.
Finally, throughout SAF, we will deploy technologies that can reduce the demand on manpower and yet maintain or enhance operational effectiveness. In recent years, we have taken many leaps forward. Minister Ng Eng Hen has given a few examples. Another example will be our Smart naval bases. It uses a next generation screening system, using technologies, such as biometric authentication, facial recognition and automated threat analysis systems. These improvements will reduce the number of security personnel required in the naval bases by 70%, while maintaining the same or an even better level of security.
Mr Ong Teng Koon asked about leveraging technology to enhance the NS experience. Indeed, besides enabling manpower savings, such technologies can also create wonders on the ground, make NS a better experience, and raise morale.
Last year, we introduced an e-fitting system at CMPB. Pre-enlistees no longer have to go through the tedious process of measuring all their body dimensions manually. This will now be done by infrared body and foot scanners to quickly and accurately fit pre-enlistees to their uniforms and sports shoes. The e-fitting system has also successfully reduced kit exchanges at BMTC from 20% to 6%.
We are embarking on a trial to further enhance the experience at CMPB during pre-enlistment screening. By using facial recognition and real-time queue management technology, we will optimise visitor flow and shorten waiting times.
Another innovation, which is quite cute, is an AI-enabled chatbot called \"NS Buddy\". I never had this when I was an NSman. At any time of the day, the serviceman could pose a question to the NS Buddy. For example, he can ask \"What is BTP?\" The Buddy will then explain that it stands for Basic Train-fire Package. Then it will present the facts, and then also give advice to say “aim properly. Don’t be a bobo shooter. Safety First!” We will be enhancing the NS Buddy in the next phase of the trial, expanding its content base, and adding more SAF lexicons.
Mr Chairman, Sir, for NS to continue to be the cornerstone of Singapore's defence, we need Singaporeans' support. Ms Joan Pereira and Mr Cedric Foo asked about the community's support for NS and recognition for NSmen. Many of us must be heartened to witness the high level of public participation in NS50. Members of the public, retailers, employers, Government agencies, the arts community and more, poured forward to contribute to the NS50 commemorations.
I recently took over the chairmanship of ACCORD from Dr Mohamad Maliki and was so inspired by the enthusiasm and passion of its members. It is one of those Government committees where members, after serving many years, still say, \"Can I please continue serving?\", and they do not want to step down!
We will continue to ride on the NS50 momentum to rally the community to support NS and recognise our servicemen. We have launched the “We Support YOU in NS” initiative to do so. Switzer Alliance is one of the participating merchants of this initiative. The owners felt that they had greatly benefited from their NS experience and wanted to pay it forward – by offering special discounts to NSmen on SAF Day and organising free seminars on topics of interest to NSmen.
We will continue to encourage employers like them to do so and also encourage employers to have NS-friendly human resource (HR) policies. We have made good progress since the launch of the NS Mark Accreditation Scheme in 2016. About 2,000 companies and organisations came on board to pledge their support for NS. More than 35% of these companies have also attained NS Mark (Gold).
Dr Teo Ho Pin and Assoc Prof Randolph Tan asked about preparing our NSFs for life after NS. Earlier, I talked about improving individuals’ performance in terms of fitness and operational skills. These are already very basic, useful life skills.
But further, in the process of developing these skills, our NSFs also learn valuable competencies, such as leadership, discipline, resilience and teamwork. And these are useful qualities that will help our NSFs perform well in their careers after full-time NS. In fact, I always advise male students, of all the leadership programmes that are out there in the market, the best one is the one SAF conducts and that you acquire during NS.
In January this year, we enhanced the Certificate of Service to recognise these qualities, as well as skills, through a statement of attainment for our Workforce Skills Qualifications (WSQ) accreditation.
Today, about 96% of our NSFs will go through NS training that will be WSQ-accredited, especially those in areas, such as Signals, Supply, Logistics, Maintenance, and even Commanders' training as well.
[Mr Speaker in the Chair]
ACCORD will continue to drive this, will continue to work with the industry partners to expand accreditation of NS skills and help employers recognise the value of NS.
But having said that, we should be mindful not to lose sight of the fact that, ultimately, NS is about ensuring the operational effectiveness of SAF, it is a service to the nation, and it cannot become transactional.
Mr Chairman, Sir, in conclusion, we must cherish our current level of support for NS and do whatever we can to maintain or raise it even further. This is psychological defence at its finest, where the entire population lines up behind a national cause. When our enemies see our resolve and unity, they will think twice.
The Chairman: Senior Minister of State Mohamad Maliki.
The Senior Minister of State for Defence (Dr Mohamad Maliki Bin Osman): Mr Chairman, as Minister Ng Eng Hen has explained, Singapore is faced with changing geopolitical and threat environments. With it, the role of SAF is also expanding to respond to these threats. But what do these developments mean for the average Singaporean, for them to appreciate their role in Singapore’s defence?
In today’s open world of porous boundaries and the Internet of Things, aggressors can put pressure on a target nation in many ways, and they have increasingly sought to direct this pressure at ordinary citizens, misleading them into resenting their fellow citizens of a different background, or unsettling their confidence in the Government. Essentially, a crisis of trust ensues and a society works towards its own unravelling. As such tactics become more commonplace, our people must be willing and ready to resist and respond and build up personal and social resilience to overcome these threats.
Singapore’s Total Defence strategy encapsulates what everyone playing their part to safeguard Singapore looks like. It was introduced in 1984 against the backdrop of the prevailing threat of armed military conflict that can affect many different aspects of our society. Beyond Military Defence, our leaders recognised that our ability to face and overcome any eventual conflict also depends on our people and their resolve. Indeed, with emerging concerns that target our people’s hearts and minds, individuals play an increasingly critical role as our first defenders.
Recognising this, MINDEF has both expanded and enriched our outreach over the years. In the past, our efforts were centred on the annual commemoration of Total Defence Day. Today, we have, in addition to that, a wide array of activities year-round, aimed at helping Singaporeans appreciate our threats and challenges and what they can do in response. This would not have been possible without our growing pool of partners from the public, private and people sectors that have come on board to work with us.
To cite a recent example, MINDEF and the Ministry of Home Affairs (MHA) worked with Mediacorp to develop a national security documentary-drama, \"It Will Never Happen Here\", which aired on Channel 5 in January. One of the viewers, 58-year-old housewife Mrs Vemala Gurunathan was struck by the episode on cyberattacks. She shared, and I quote, \"I was quite surprised that attacks on cyberspace can actually cause chaos in our society and everyday life… I like how the programme even showed us how we can overcome this by being more careful online and not blindly believing everything we read\".
I am heartened that, today, Total Defence resonates with Singaporeans, and many are stepping up to contribute. A public survey conducted by MINDEF in 2017 showed that a majority of respondents appreciated the value of Total Defence in dealing with threats, both conventional and unconventional.
We have also seen how some participants of MINDEF's various engagement programmes have gone on to encourage others to play their part in Total Defence. One of them is 26-year-old Chong Yu Lun. Yu Lun has participated in every run of MINDEF’s short film competition \"ciNE65\", creating multiple winning, but more importantly, inspiring entries. These range from those that encourage NSmen to defend our home, to those that portray the resilience of Singaporeans.
Yu Lun went on to set up his own video production company and YouTube channel \"Butterworks\" – the people behind films like \"The First Book Out from Tekong\" and \"With Pride, We Lead\", that have a combined reach of over 700,000 views. When asked recently about what drives him to make these videos, he said, \"I'm very motivated to create films that hopefully Singaporeans would be proud to call their own...we challenge ourselves to create inspiring stories that blend in a subtle element of that little patriotism in us\".
Ms Low Yen Ling asked for an update on the 2018 Total Defence Campaign and how it will address new threats. As we move forward, just as we are building up the Next-Gen SAF, we will gear Total Defence towards the new security environment, according greater attention to social and psychological defence.
Mr Ong Teng Koon highlighted the need to do so in the face of terrorism. Other threats like fake news and cyberattacks compound this need. While the military and civil domains are most intuitively associated with defence, it is increasingly important today that we broaden our definition of what it means to safeguard Singapore.
For one, our social cohesion could be compromised if Singaporeans allow themselves to be swayed by divisive falsehoods or stigmatise particular social groups in the wake of a violent attack. Religion today has been misused by terror groups like ISIS and misrepresented by preachers who espouse extreme views. Religion has also begun to enter the realm of politics as seen in the region, resulting in built up tensions in community relations.
As a society, we can and will continue to be tested. With your permission, Mr Chairman, may I display a visual on the screen?
The Chairman: Yes. [A visual was shown to hon Members.]
Dr Mohamad Maliki Bin Osman: Just last year, two propaganda videos featuring a Singaporean ISIS fighter in Syria surfaced – the first video was of him rallying others to join him, while the other video was more graphic, showing him shooting three men at close range.
Upon hearing the news and watching such clips, how would or should Singaporeans react? The immediate reaction could include worry, disbelief, fear, anger and possibly distrust. However, these reactions could be mitigated, depending on how strong we are psychologically as individuals, and socially as a community.
With strong social cohesion and psychological resilience, the Muslims amongst us would reject attempts to sway them to adopt extremist ideas, denouncing those images and assuring their non-Muslim friends and neighbours that the images they saw neither reflect Islam nor Muslims in Singapore.
Again, with strong social cohesion and psychological resilience, we would also see our non-Muslims who have confidence in their Muslim friends expressing support and giving assurances that what they saw neither represent Islam nor Muslims in Singapore.
At the same time, those who might be affected by the images would feel comfortable enough to clarify their doubts and reservations with their Muslim friends. With deepened trust, all Singaporeans would stand united to safeguard the harmony we hold dear. This is the essence of our Social and Psychological Defence. Mr Chairman, may I say a few words in Malay, please.
(In Malay): [Please refer to Vernacular Speech.] Just as we move forward to build up the Next-Gen SAF, we will gear Total Defence towards the new security environment, according greater attention to Social and Psychological Defence. While the military and civil domains are most intuitively associated with defence, it is increasingly important today that we broaden our definition of what it means to safeguard Singapore.
Our social cohesion could be compromised or affected if Singaporeans allow themselves to be swayed by divisive falsehoods, or stigmatise particular social groups in the wake of a violent attack.
Religion today has been misused by terror groups like ISIS and misrepresented by preachers who espouse extreme views. Religion has also begun to enter the realm of politics, as seen in the region, resulting in built-up tensions in community relations.
We need only turn to our own history to remind ourselves that trust and goodwill among communities are not a given and must be worked at unceasingly to sustain. As a society, we can and will continue to be tested. Just last year, two propaganda videos featuring an ISIS fighter from Singapore in Syria surfaced – the first was of him rallying others to join him, while the other was more graphic ‒ showing him shooting three men at close range.
Upon hearing such news and watching such clips, how would or should Singaporeans react? The immediate reaction could include worry, disbelief, fear, anger and, possibly, suspicion and distrust. This is a grave concern.
However, these reactions could be mitigated, depending on how strong we are psychologically as individuals and socially as a community. With strong social cohesion and psychological resilience, the Muslims amongst us would reject attempts to sway them to adopt extremist ideas, denouncing those images and assuring their non-Muslim friends and neighbours that the images they saw neither reflect Islam nor Muslims in Singapore. If we possess strong social cohesion and psychological resilience, we would also see our non-Muslims, who have a lot of confidence in their Muslim friends, expressing support and giving assurances that what they saw neither represent Islam nor Muslims in Singapore.
At the same time, those who might be affected by the images would feel comfortable enough to clarify their doubts and reservations with their Muslim friends. With deepened trust, all Singaporeans would stand united to safeguard the harmony we hold dear. As the Malay saying goes – \"United we stand, divided we fall\". This is the essence of our Social and Psychological Defence.
(In English): As Mr Amrin Amin noted, there are also new potential fault lines in our social fabric beyond race and religion which could be used against us if we are not careful. With globalisation and significant mobility amongst Singaporeans, we cannot assume that all Singaporean children will continue to experience the culture of our local schools and neighbourhoods as they grow up.
There are also others who come from transnational families. These are not concerns in and of themselves, but they do signal that the experiences and perspectives of our people are more varied than before. If we do not continue to forge common understanding, our differences could be played up to divide us, making it difficult for us to band together in a crisis.
We need strong Social Defence. This means growing our common space by interacting with people of different backgrounds, speaking up against attempts to sow discord and helping those in need. One important element of this is to fortify trust and understanding among people of different religious backgrounds to guard against radical ideas that may divide us.
Just last month, the five Community Development Councils (CDCs) launched the \"Common Senses for Common Spaces\" interfaith dialogue programme nationwide. This provides members of the community with a safe space to ask questions and learn more about the different faiths in Singapore, thus deepening their understanding and appreciation.
It is also heartening to see that our youths understand the importance of Social Defence, and are initiating ground-up projects to expand our common space, too. The Interfaith Youth Circle, for example, was started by a group of youths who wanted to bridge gaps in understanding about the different religions in Singapore, especially given the negative sentiment and online chatter following terror attacks around the world. They organise activities, such as scriptural reasoning sessions, where people come together to read and reflect on scriptures from different faiths. Such efforts foster deeper trust and a stronger will to stand firm against attempts to turn us against one another.
Mr Vikram Nair asked about the impact of fake news on security, and how MINDEF is combating this threat. In an interconnected world, Singaporeans are more easily exposed to pressures that could unsettle their willingness to uphold our national interests, including racial and religious harmony. These influences could come in the form of falsehoods deliberately spread online.
In 2007, for example, an insensitive prank photo of pork sold at National Trades Union Congress (NTUC) Fairprice with a halal sticker on the packaging was circulated via e-mail. NTUC Fairprice had called it out as false back then. Still, it resurfaced again in 2014. Social media had become a lot more prevalent in the span of just seven years, and the photo made its rounds on Facebook, where posts are easily shared with a wider audience. While the incident was resolved, similar cases could tear at our interfaith unity.
Likewise, falsehoods could be spread to weaken our trust in public institutions and confidence in a shared future or incite fear. Some Members may recall a video that was shared on social media early last year, purportedly showing an explosion in Tuas. While a fire did break out, this said footage of the incident was fake. The video had, in fact, been uploaded on YouTube multiple times from 2015 onwards and have on separate occasions been labelled as blasts in China, India and France – that same footage. If it had not been debunked, the video could have sparked panic and anxiety amongst Singaporeans. Fake news has the potential to undermine us from within and is a key challenge that has led MINDEF to focus more on Psychological Defence.
Moreover, the growing number of Singaporeans who pursue work and educational opportunities abroad may have to wrestle with dissenting views more squarely. Foreign business partners, schoolmates or friends may at times express fundamental disagreements with Singapore's decisions, policies or actions. They could even persuade you to adopt their viewpoint at the expense of supporting our national interests. Psychological resilience on the part of each individual is being decisive in withstanding such pressures.
I read an opinion piece on Total Defence earlier this year, where Channel NewsAsia editor Jaime Ho rightly pointed out how defence today entails Singaporeans \"thinking for ourselves\" and \"standing up for ourselves\". This is Psychological Defence – appreciating our vulnerabilities and challenges, advancing our values and interests; being able to spot mistruths; and standing up for Singapore.
Just as our threats extend beyond the military realm, so must our deterrence. In addition to a credible military force, we need a psychologically resilient people, able to withstand crises or viral attacks, and not be rattled. If someone comments negatively about Singapore and our immediate response is not to verify the facts but to instead condemn Singapore and, worse, spread the untruths, we are creating for ourselves a hole in our defence that our adversaries would not hesitate to jump at and widen the divide. I am glad to see that Singaporeans, such as those behind the online site \"Confirm?\" which runs quizzes on issues relating to Singapore, have taken the initiative to try and help those around them understand our principles, positions and policies better, preventing them from falling prey to fake news and untruths.
I have elaborated on Social and Psychological Defence because threats in these domains are very real, but often unapparent. They have a creeping yet significant impact on our ability to defend Singapore. In the other pillars of our Total Defence, Singaporeans are our first defenders, too. Take Military Defence, for example. Enlisting in SAFVC is one way many women, new citizens and first-generation Permanent Residents have stepped up to serve. To address Dr Teo Ho Pin's query, since SAFVC was launched in 2014, we have trained over 600 volunteers and deployed them to various roles. In 2018, volunteers will be able to serve in 15 additional roles across SAF.
Many are also contributing to Civil Defence. To prevent a terror attack, for example, Mr Charnjit Singh, Chairman of the Community Emergency and Engagement Committee (C2E) in Telok Blangah, worked with other volunteers to conduct regular patrols on our trains. In MINDEF and SAF, we are equipping our personnel to respond to crises in their personal capacity, too. Most of our servicemen who undergo BMT learn some first aid and cardiopulmonary resuscitation (CPR)-automated external defibrillator (AED) skills, as do our SAFVC.
Mr Rajendran Mathan Prasath is a commendable example of someone who has not only stepped up to do more for Military Defence by joining SAFVC, but used the skills acquired during his training to contribute to Civil Defence while off duty. In April last year, he performed CPR on an elderly lady suffering a cardiac arrest. In the face of terrorism, we have developed a Community Response Module to supplement the skills that our personnel like Mr Rajendran possess. It has been rolled out in the BMT curriculum, and in the next two years, all MINDEF and SAF personnel will be required to go through the module. It complements the SG Secure effort and better prepares our servicemen to be active community responders.
MINDEF, alongside our partners, will continue to encourage different groups of Singaporeans to contribute in concrete ways to Total Defence.
We are constantly exploring innovative ways to engage our youths. Mr Baey Yam Keng asked how we are doing so. The \"Guardians of the City\" (GOTC) card game launched in 2017 is one way through which we are helping our youths understand the terror threat facing Singapore, and how they can respond. This year, we have given out over 38,000 decks of the game to all Secondary 2 students, and schools have organised GOTC cohort experiences. Mr Mohamed Shahmir Anwar, a secondary school teacher who facilitated the game and conducted reflection sessions for his students, shared that the students both enjoyed it and learnt valuable lessons on Total Defence. To quote him, \"This game is something different, something exciting...the students want to try it because it is interactive…Because the games are so relatable to them, it is a good platform to teach them about Total Defence\".
Other interactive tools to bring Total Defence to life for our youths include a Total Defence puzzle that was developed in collaboration with agencies across the Government and creatives at Singapore Press Holdings (SPH) THINK. It has been distributed to schools, SAF camps and community centres (CCs). Various organisations, especially schools, have found the puzzle to be a useful learning resource.
MINDEF also has more specific programmes for our young recruits. I fully agree with Assoc Prof Fatimah Lateef that besides physical training, it is important to prepare our recruits psychologically in a changing security environment.
Beyond engaging future recruits as part of our outreach to students, there is a comprehensive plan to strengthen their physical and psychological resilience when they enlist. This is infused in various aspects of the full-time NS experience. One part of this is National Education activities and milestone events that help them understand what our security challenges are, what we are defending and why and what we must do to continue keeping Singapore safe and secure.
These include experiential visits to defence-related heritage sites, the weapon presentation ceremony and the 24-kilometre route march from Changi to Marina Bay. As they march past iconic landmarks in Singapore, they are reminded of what they are training to protect. The route march also symbolically reverses the Prisoners-of-War route of defeat from the city to Changi after Singapore fell to our invaders during World War Two. The soldiers march to their graduation parade at Marina Bay today. It represents their resolve to never again let Singapore fall.
Besides these events and activities, it is the overall full-time NS experience – building strong bonds with their mates and commanders and experiencing values in action demonstrated by their commanders – that strengthens our recruits psychologically. With understanding and conviction come the resilience to protect our home even in the face of new threats and challenges.
Families are key pillars of support for our NSmen. Ms Joan Pereira had asked what MINDEF is doing to engage families. SAF has been engaging families of NSmen through events, such as milestone parades, unit family days and open houses, and also provides them with information on NS. Through ACCORD, we also partner organisations, such as Families for Life and the Centre for Fathering, to engage families on NS and Total Defence.
Mr Chairman, may I have your indulgence to continue a little bit longer?
The Chairman: As we do still have some time before the guillotine time for MINDEF, please wrap up in the next few minutes.
Dr Mohamad Maliki Bin Osman: Thank you. Activities we have had include the \"Celebrating NS50\" picnic and Dads for Life Camp last year. ACCORD has also conducted focus group discussions with women to gather feedback on how we can better support our servicemen and their families. In this way, families can not only support NSmen in their NS journey but appreciate the role they themselves play in Total Defence, too.
In conclusion, Mr Chairman, Sir, if each one of us understands what Singapore stands for and is committed to protecting our way of life, we will be able to deter and overcome sinister attempts to shake our unity and confidence. Besides the individuals that I have highlighted today, there are many others who are putting Total Defence into action in their everyday lives, by giving their best during NS training, securing their personal devices, learning first aid, donating blood, and taking up new skills. MINDEF will continually work towards strengthening this whole-of-society effort. With a strong Total Defence, we have every reason to be hopeful and confident in Singapore's future.
The Chairman: Mr Pritam Singh.
Mr Pritam Singh: My question is directed to the Minister for Defence. I understand, Sir, there was an announcement made of the deployment of SAF troops to Iraq. I have four questions in that regard.
Firstly, what is MINDEF's assessment of the threat to our troops there? Secondly, in view of the inherent instability in Iraq and of particular concern being sectarian conflict between Sunnis and Shiites, in addition to the presence of ISIS and its other various incarnations, what is being done to prepare our servicemen and their families for the deployment? Thirdly, how long does the Ministry envisage the deployment to last and what is the SAF's mission and objectives with respect to this deployment, and is MINDEF concerned about the prospect of mission creep?
Fourthly, and this is the final question, Singapore deployed about 470 servicemen to Afghanistan from 2007 to 2013. They assisted the Afghan National Army Artillery training, improvised explosive device (IED) detection, construction and imagery analysis. Can the Minister share more details on the size and nature of our deployment to Iraq, what tasks our troops would undertake, and what and whose resources they can call upon to assure their security there?
Dr Ng Eng Hen: Mr Chairman, those were good questions and very relevant ones. What is our threat assessment when we send SAF troops to missions? We must never prepare to send people if you think there are no risks, because there are always risks. We only send them when the risks are necessary to protect Singaporeans and Singapore. So, whether we send them to Afghanistan, whether we send them to Iraq, whether we send them to the Gulf of Aden, even when we send them to Timor-Leste − peacekeeping operations − we have casualties in peacekeeping operations.
We do this because, at the core, you are protecting Singapore's interests. So, for Afghanistan, we understood that if we did not deal with terrorism at its source where Al Qaeda influence was the greatest, you would basically just be responding to waves and waves of terrorists that are being radicalised – they are being trained, they are being exported from ground zero as it were. And it worked. We were in Afghanistan for 10 years, Mr Pritam Singh recollected accurately. Whether it is imagery analysts, or weapons locating radar, we made a contribution. We identified even hotspots for the coalition and the terrorist threat disappeared for now. I say \"for now\" because we are keeping a watch on Al Qaeda cells and there is every possibility that there can be a resurgence.
Against ISIS, we made significant progress. I think just two or even three years ago, if you just look at the geographical map, the areas in which ISIS strongholds controlled, were a majority of Iraq and Syria. But now, it has shrunk. So, there are a few last strongholds, if any. But the numbers are much smaller. So, we have made progress.
How do we prepare servicemen for these threats? Our SAF personnel who go there recognise that these are threats but we, systemically, identify the threats. So, for each mission, we would have a needs-and-threats assessment team that goes down to the ground, that speaks to the commanders, that maps the terrain, that maps the risks and the team will come up with an assessment. Then, not only the elements that are required to fulfil the operations – we will talk about that because the Member asked about it – but the protection is necessary. You can minimise it but you will never completely eliminate it.
How long will it last? For Afghanistan, our deployment lasted 10 years. Against ISIS, it has been relatively shorter, I think since 2014. But for us to not continue to contribute when the more significant gains have been actually taking back Iraq, I think it is not within our character and not within our mission imperative. There is no mission creep. The central mission is so that ground zero for the export of terrorists must be eliminated as we did in Afghanistan. Just imagine if we said, \"Well, the rest of the world can go about it but we don't worry about Afghanistan.\" If the problems there gain momentum, we will suffer.
For Iraq, for ISIS, we have a much more vested interest because there were foreign fighters from Malaysia, Indonesia, Singapore who were there. So, there is no mission creep. It is very clear. It is to help now. It shifted to another phase. The first phase was actually the most difficult − to recover territory, to rid ISIS of their resources, of their ability to increase their resources to export terrorism. While our chaps were there, we were very useful. Our imagery analyst teams − the Member asked what they were deployed there for – to identify financial strongholds that ISIS troops had been using and help the coalition eliminate these, if you like, financial warehouses.
We are now deployed with other troops, the Australians and some other troops, for which there is joint protection and we can call on them. But there is camp security. I visited our troops last year and was satisfied that, to the extent possible, there is perimeter protection. In the event of an incident, there will be measures to respond to that. In fact, when I was there, it just so happened that they were responding in a simulated scenario to an attack. The Americans were there, the Australians were there, our chaps were there, and they mobilised the hospitals and then, for how to guard the vicinity. I think that is about as much as I can say for all the questions but let me just summarise.
We understand what this mission is about. We have to keep terrorism at bay. We have to keep at it. This is a long battle. We dealt with the threat after 9-11, Bali bomb blast and joined other forces in Afghanistan. With ISIS, we are now in Iraq. When will it end? When can we pull back? I do not know. Somebody said \"Communism without divine intervention, without God, took 50 years.\"
The Chairman: Assoc Prof Fatimah Lateef.
Assoc Prof Fatimah Lateef: I would like to ask the Minister on civil-military cooperation and this is not pertaining to the community involvement or the lay persons who are trained to respond to crisis like under C2E and all that. This is more about Singaporeans who form part of international humanitarian teams or respond to international humanitarian activities around the world, whether it is war-related or natural disaster-related. These are people who are disaster, medically and also tactically trained; they can actually value add to the response of a crisis that we have. How is MINDEF engaging and working together with them?
Dr Ng Eng Hen: That is the kernel of the idea behind the Changi Regional Humanitarian Centre. It came about because we recognised that after Cyclone Nargis, after Nepal, the first two to three days after an incident occurs are where you have the least coordinated response, even if all the resources are there. So, for instance, if you remember the typhoon in the Philippines, we sent a C-130. The reason they were under-utilised was that there were no air command and control facilities. Only the Americans could because I think they had their aircraft carrier and they were able to control the airspace. So, even though our C-130s were sent there, they could not be deployed optimally.
We set up this to coordinate military responses. But as Prof Fatimah Lateef rightly points out, humanitarian agencies include the whole ecosystem of civil groups, of UN groups. So, we have expanded it and linked up with the UN. We have linked up with other humanitarian organisations and I think we had one or two equivalents of table-top exercises to, say, if something happens, whom do I contact? We offered for these civil groups, these volunteer groups, to be physically based in Changi, if they can spare. This is an ongoing effort. We just have to keep increasing our contacts, increasing our efficiency and when the next crisis strikes, I think Singapore can play a more definitive role and contribute more.
The Chairman: Mr Vikram Nair.
Mr Vikram Nair: This clarification is in relation to the unconventional threats. I think Senior Minister of State Mohamad Maliki painted quite a graphic picture of the threats these provide. My concern was whether we should be doing more. First of all, in relation to the video on terrorism, for 99% of people, they will be disgusted by that video. But there might be a very tiny percentage, 0.001%, and perhaps a lone wolf who would be inspired by it to commit acts of violence.
Notwithstanding how strong our psychological defence is, all it takes is one person to get influenced by it to carry out the terror attack. The countervailing risk, of course, is that other people may generalise and say, \"This is what Muslims do\" which, I think in Singapore, that is not a big issue. But it could be, if our psychological defence is not strong. There is actually very strong reason to identify and take steps to weed out such videos either by, first of all, finding out the source; and secondly, potentially, to take legal action against the people who put up and circulate this.
Secondly, in relation to fake news, I think the example of halal pork was also again very compelling. It surfaced in 2007. Obviously, it is divisive because it suggests NTUC trying to sell pork to Muslims. It was untrue. NTUC clarified. But then it surfaced again six or seven years later. But this shows the power of fake news. Fake news is sensational, therefore, it gets circulated. The truth is rather boring. It does not get circulated. So, the truth is almost always triumphed by fake news. Could we take further steps to identify the creators of these fake news and take other actions against them?
Psychological defence is resistance. But if we can eliminate the virus, that is even better.
Dr Mohamad Maliki Bin Osman: I thank Mr Vikram Nair for those remarks. We totally agree with what we need to do to ensure that there is a comprehensive response to all these unconventional threats, whether it is images or otherwise. I just wanted to highlight one example. Just one image may create reactions in different groups of people and it is important for us to be aware of the reaction that different groups of Singaporeans may have and, therefore, what we need to do to strengthen our resolve first.
So, the different groups of people and different players of stakeholders that are relevant in this context: one, at an individual level, we need to be consistent, we need to be aware of our own reactions and how much do we take forward steps to learn more about such issues as well as build trust and relationship with all the other communities so that if something like that happens, we are not easily rattled. We ask questions, we ask and look for the facts rather than react negatively.
Secondly, it is the whole-of-Government effort and whole-of-society effort that is needed. If you see various legislation, various discussions in this House, you can see many things are happening. The development of the cyber defence agencies is one effort that looks at some of the areas that we need to do in the cyber domain. We also need to start looking at how Singaporeans respond to such fake news on social media. And this is one of the biggest challenges − the skillsets required by individuals to respond to such social media platforms. Once you see something on your Facebook feed or once you get something from your WhatsApp group, what do you do? Do you verify the facts? Where do you verify the facts? That is where we need to help Singaporeans to understand the different ecosystems that exist, the environment that exists. It is a very complex environment. It is an environment that is evolving, as we speak.
So, today, it is critical for us to educate Singaporeans in every age group, not just adults, but young children. Because they are the ones who are very comfortable with social media. They are the ones who get feeds from social media. If we do not educate them early enough, equip them with the skillsets required to determine what is right, what is wrong, and how these would impact on themselves and their relationship with others if they were to forward these unverified facts, as well as the concerns that they may have.
We also need to look at support systems available for communities who may have difficulties reacting or responding to such unconventional threats. The fundamental understanding today is that these are evolving unconventional threats and we need to find new creative ways to respond to them. Different agencies in Government are looking at that and various domains, and we continue to work with them.
The Chairman: Would the Member wish to withdraw the amendment?
Mr Vikram Nair: I would like to thank Minister Ng Eng Hen for sharing a compelling view on our defence and the importance of it remaining sustainable, and comforting us that it will be sustainable for the upcoming years, Minister Ong for sharing with us on NS and the important evolutions taking place, and Senior Minister of State Mohamad Maliki for sharing with us on psychological defence. And, of course, to all the people in MINDEF, SAF and all our servicemen. Thank you very much. I seek leave to withdraw my amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $14,238,100,500 for Head J ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $761,000,000 for Head J ordered to stand part of the Development Estimates. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Committee of Supply – Head P (Ministry of Home Affairs)","subTitle":null,"sectionType":"OS","content":"The Chairman: Head P, Ministry of Home Affairs. Mr Christopher de Souza, you can take your two cuts, please.
Mr Christopher de Souza (Holland-Bukit Timah): Mr Chairman, I beg to move, \"That the total sum to be allocated for Head P of the Estimates be reduced by $100\".
Sir, Christmas passed; New Year's Day passed. No terror attack. No bomb. Thankfully, we have effective, professional and responsive uniformed teams working to keep us safe – the Singapore Police Force (SPF), the Singapore Civil Defence Force (SCDF), the Singapore Armed Forces (SAF) and the Internal Security Department (ISD). But terrorism is not a fight they are to battle against alone. Every Singaporean has a role to play.
Singapore is a prized jewel because of what Singaporeans stand for – meritocracy, diligence, multiracialism, unity. Because of these attributes, many evil doers seek to do us harm. But should a terrorist threat ever vest on our shores, it is those very attributes that will enable us to overcome the disunity terrorism seeks to sow.
Each Singaporean has a social role to provide a united multiracial response in the aftermath of a terror attack. That duty cannot be left to the Home Team alone. Every Singaporean has a role to play. That way, our precious Singaporean unity, so unique to the world, will be preserved.
There are two reasons why the role of each Singaporean is particularly important. Firstly, the Singaporeans would probably be the first ones near the scene and how they respond is important. How Singaporeans react in the midst of a terror attack is very important. Secondly, to provide a multiracial response to the disunity that terrorism seeks to sow, the whole of the community needs to be involved in the response. Relationships and mutual trust and understanding which undergird multiracialism are not something that can be manufactured or imposed top-down. While the Government can play a facilitating role, ultimately, every Singaporean needs to play a part.
This community, holistic approach to counter terrorism is supported by a recent study that showed that Malaysia's previous terrorist rehabilitation programme was perhaps not all that effective as it was a top-down and only focused on the religious aspect of violent extremism, with the majority of rehabilitated, or so-called rehabilitated terrorists, still holding on to their original beliefs and continuing financial support to violent groups.
In contrast, Indonesia's variety of rehabilitation programmes run by the government, civil society groups and the local community was more comprehensive in addressing the variety of factors, taking into account the person's feelings of dissatisfaction with life, weak ties with family members, poverty and ideology.
Another example is a community-based women's group in Bangladesh which equips women to promote social cohesion and battle violent extremism in their roles as mothers, wives, sisters and daughters who shape the values of those in their family and community.
Last year, the Ministry of Home Affairs (MHA) announced that by 2019, every one of the 89 constituencies will have undergone at least one crisis response exercise. Even as such exercises are being rolled out to prepare Singaporeans for a terror attack, it is important for every Singaporean to participate and play their important role in keeping Singapore safe when a terror attack vest on our shores.
How can MHA foster such a relationship with Singaporeans to achieve that goal of a strong Singapore in the face of a terror attack?
Sir, last year, it was reported that the length of time needed to radicalise an individual had decreased from two years to as little as one or two months. Self-radicalisation through the Internet is also a threat. A Straits Times' article in July last year reported that the Internet was a common link in all 15 cases of Singaporeans who were radicalised and dealt with under the Internal Security Act (ISA) since 2014.
In Indonesia, in the past, a method of recruitment was through online games. Recently, recruitment attempts have also intensified. For instance, the terrorist recruitment video in September 2017 featuring the Singaporean Abu Iqayl was analysed as a stepped-up attempt to reach out to a younger and better-educated audience in a predominately Malay/Muslim region.
Our unique social fabric in Singapore, especially our multiracial way of life, is harmed by plans for, thoughts of, and actions towards violent extremism.
Terrorism is an affront to all our communities in Singapore. This is an affront to the Chinese community; it is an affront to the Malay community; it is an affront to the Indian community; it is an affront to the Eurasian community. Therefore, how can we bolster our laws to prevent the spread of radicalised teachings that promote violent extremism?
[(proc text) Question proposed. (proc text)]
Mr Chong Kee Hiong (Bishan-Toa Payoh): Mr Chairman, in the last few years, we have observed a trend of increased religiosity in countries around us. Accompanying this is also a sense that certain religious practices and identities have become more exclusivist over time.
Members would recall the incident where a launderette owner in Johor offered \"Muslim-only\" services to their customers. The business owner, in his business calculations, had expected a healthy demand for such services. This exclusivist arrangement could lead to reduced contact with other communities. This is of concern to us because it is happening right next door across the Causeway.
Here in Singapore, we champion racial and religious harmony. We want to focus on the commonalities, not the differences amongst us. Wherever possible, we want to enlarge the common spaces shared among different communities. This is how we manifest our shared values, build our shared experiences and achieve our collective goals as a united nation.
Yet, we have to acknowledge that, as an open society, we are not immune to external influences. If we are not vigilant, what has happened elsewhere in the world could well happen to us. Exclusivist and discriminatory practices along religious lines would splinter our society as we are one of the most religiously diverse countries in the world.
Would the Ministry share with us an update on the measures to counter the threat of radicalisation? How do we counter threats of segregationist teachings on the Internet, particularly social media? How is the Home Team progressing in its work with different religious and community groups to combat segregationist teachings in order to help preserve the religious harmony we all cherish today?
Ms Rahayu Mahzam (Jurong): It is unsettling to see acts of terror still happening all over the world. Although the incidents have happened in other countries, Singaporeans are acutely aware that the same tragedy can happen on our soil. It is worrying when we also hear reports of the arrests and detention of radicalised Singaporeans who could have potentially caused harm at home. In this regard, I would like to ask the Ministry to give an update on the current level of threat. What is the current level of threat of terrorism on the international, regional and domestic fronts?
I trust the Ministry and the Home Team are taking all efforts to ensure that our country is prepared to deflect and respond to any potential attacks. I believe it would be good to assure Singaporeans of the counterterrorism efforts in place to protect Singaporeans. Could the Ministry provide an update on what has been done to build the Home Team's capabilities?
Aside from the Home Team, it is important that the community stays vigilant and is also equipped with the necessary preparedness. To this end, SGSecure has been an excellent effort in creating awareness and building the skills of members of the community in response to a terror attack. I would like to seek an update on the efforts of implementing SGSecure on the ground. Are there means to measure the level of awareness and preparedness of the community? What more can be done to equip our community with the necessary skills and protect them against any attacks?
Assoc Prof Daniel Goh Pei Siong (Non-Constituency Member): Chairman, loan sharks have been turning to online harassment of debtors. The aim of online harassment is the same as the offline mode, to shame the debtor in his community and harass the debtor's associates until he pays up. There is one difference – the loan sharks are innovating to avoid detection and identification, for example, by stealing the debtor's identity and posting it, to utterly destroy his reputation.
The widespread use of Police closed-circuit television (CCTV) surveillance in public housing estates and tough enforcement have led to the steady decline of loan shark harassment cases since 2010. But there is a spike in cases last year for the first time, with electronic harassment contributing to the spike. Can the Minister clarify whether this spike also represents a spike in Singaporeans borrowing from loan sharks? Can the Minister also elaborate how the Police is combatting online forms of loan shark harassment so as to assure the public?
Mr Pritam Singh (Aljunied): Mr Chairman, as a country that extends Singapore citizenship to an average 20,000 foreigners each year and partly relies extensively on immigration to replace and increase the overall population, it remains an anomaly that there are no official statistics detailing the country of origin of new citizens who live among us and who have to integrate together with us as one people.
The Government's long-standing position has been that it does not officially reveal the countries from where these new citizens originate on the grounds of sensitivity of the country of origin of our new citizens and the implications and sensitivities for specific groups of persons.
Previously, it was revealed that about 50% of new citizens originate from Southeast Asian countries, with another 40% from other Asian countries. However, in a similar reply to a Parliamentary Question (PQ) in 2016, the Government did not give any percentages but to say that the majority came from Southeast Asian countries.
Can the Ministry please elaborate on what sensitivities the Government is concerned about, particularly since Singapore's need for immigration is publicly well-known, along with the Government's stated position of keeping the racial percentages as close to their current levels as far as possible?
Secondly, the Government has stated that it would be a plus factor when it assesses whether the spouses of foreigners married to Singapore Citizens who apply for Permanent Residence have children. However, in my discussion with some residents in my Meet-the-People sessions (MPS), there is some residual concern amongst such residents that their monthly household income explains why they are having trouble securing Permanent Resident status. I understand from previous PQs that for foreign spouses who were granted PR from 2009 to 2015, around 45% had a monthly income of less than $4,000.
Can the Ministry provide specific details on the number of successful applications for the same period for applicants who had a monthly income of less than $3,500, $3,000 and $2,500 and confirm if there has been any change to the Immigration and Checkpoints Authority's (ICA's) evaluation criteria from 2016? The details would provide some degree of certainty for foreign spouses married to Singaporeans when they apply for PR.
Thirdly, can the Government share how many foreigners who are married to Singapore Citizens do not meet the Long-Term Visit Pass (LTVP) or LTVP-Plus (LTVP+) criteria but are granted short-term visit passes instead? What are the main reasons for the rejection of their LTVP or LTVP+ applications, and what criteria does the Government use to reassess or review such applications?
Mr Ang Wei Neng (Jurong): Mr Chairman, in 2017, there appeared to be a number of vulnerable Singaporeans who were victims of abuse and the culprits managed to escape with relatively light sentences. Notable instances include the intellectually disabled Annie Ee who was tortured to death; and martial art instructor Joshua Robinson who was only jailed for four years after committing the offence of statutory rape.
The abuse of vulnerable adults, including the elderly, disabled and infirm, are a growing phenomenon. A unit set up by the Ministry of Social and Family Development (MSF) in May 2015 dealt with over 100 such cases in its first year. There was an announcement in 2014 to introduce a Vulnerable Adults Act, but there has been not much news thereafter.
The Annie Ee and Robinson cases have caused much public outrage, and rightly so. Thus, I would like to ask the Minister on the progress of the Vulnerable Adults Act. Does MHA intend to enhance our current laws to better protect the vulnerable groups in the society?
In some other countries, these groups are protected by specific laws. In New Zealand, for example, the Protection of Personal and Property Rights (3PR) Act allows vulnerable people, defined as those who are old, sick or mentally-impaired, to appoint one or more people to be their enduring power of attorney, if they feel that they will be at risk of ill-treatment.
In New York, the state Senate in 2015 passed a sweeping package of 10 Bills to protect vulnerable senior citizens from predatory financial schemes, physical and emotional abuse. It is time to enhance the protection for the vulnerable groups, to better protect those who cannot speak and to fend for those who are weak.
Mr Louis Ng Kok Kwang (Nee Soon): Sir, the criminal justice system should support survivors of domestic, sexual and other forms of gender-based violence who step forward for help. However, some feel that their experiences are not well-understood and encounter insensitivities as they seek justice. This retraumatises and discourages them from coming forward.
Can the Ministry provide mandatory and recurrent capacity-building for members at all levels of the criminal justice system, including lawyers, law enforcement officers and healthcare staff, so that they can better deal with survivors in a gender-sensitive way?
For the ongoing review on marital rape, is the Ministry looking at a complete removal of immunity or considering other positions? If so, what are they?
Mr Christopher de Souza: The number of child abuse cases has been increasing over the last four years. The attacker in 90% of the criminal cases involving sexual assault on a minor in 2014 was someone who was supposed to protect the child.
It is a harrowing experience to have to recount the abuse one has suffered at the hands of a superior. The pain is felt even more acutely when the victim is a minor, a child. This may be exacerbated when the victim feels uncertain about whether he or she will need to see the perpetrator again.
Therefore, within the judicial process, as well as at the stage of investigations, how can the victim be made to feel less distraught when having to provide evidence against the alleged perpetrator?
Mr Murali Pillai (Bukit Batok): Sir, over the years, great strides have been taken by MHA, the Home Team and the Ministry of Law (MinLaw) in improving the framework for dealing with offenders with mental conditions.
I have said before in this House that the 2010 Criminal Procedure Code (CPC) amendments introducing community-based sentencing for these offenders are a milestone. Through these amendments, mentally-challenged offenders may be imposed a mandatory treatment order in lieu of the usual sentences, such as an imprisonment. This enables us to directly address the root cause of their offending behaviour.
We just saw the introduction of the Criminal Justice Reform Bill where it is proposed to expand the spectrum of offences for which a community sentence may be imposed. I am particularly happy to note that the Government has kept an open mind on a point I raised in my PQ in May 2017 and now intends to allow community sentencing to be imposed on offences punishable by specified minimum sentences. Inpatient treatment will be recognised as being part of the mandatory treatment order regime, if the Bill is passed.
These are laudable steps in the right direction and deserve our support. This evidences, indeed, what our Government has always been saying about a just and inclusive society. It would have been easier to just segregate the mentally-challenged offenders and put them away. Instead, a lot more effort and resources are being put in to help rehabilitate them and bring them back to society.
One area which I would like to suggest that MHA consider further strengthening is the framework involving the administration of a conditional warning in lieu of prosecution for mentally-challenged offenders, especially youthful offenders.
As Members would note, the community-based sentencing regime would not apply to these offenders as they have not been charged in Court. The warning in lieu of prosecution route may be employed for offenders with mental issues who have committed offences not assessed to be on the serious end of the spectrum. Hence, they are not charged in Court.
For first-time offenders, they may be given an outright warning in lieu of prosecution if they are first offenders. For repeat offenders, in light of their mental conditions, it is not unusual for them to be imposed conditional warnings, meaning so long as they do not reoffend for a specified period of time, they would not be prosecuted for the offence.
I would respectfully suggest that there is an opportunity here to introduce a system that would allow them to subscribe to a treatment and rehabilitation regime, akin to a mandatory treatment order (MTO), so that the chances of them reoffending is kept low.
As each case is different, there could be flexibility in devising a bespoke system for each offender based on his or her background and the specifics of the case.
Let me provide an example. I am currently dealing with one case in Bukit Batok where the offender is a 15-year-old boy who has autism and attention deficit hyperactivity disorder (ADHD). He comes from a broken family. He decided not to attend school and instead, frequents the gaming arcades to feed his gaming addiction. He was previously given a stern warning for the offence of possessing an offensive weapon. A few months later, he committed another offence of trespass into a school.
Without intervention, the chances of him reoffending and being charged in Court is high. There are at least six stakeholders dealing with his case: his parents, the Police, his school teachers, a social worker from a Family Service Centre, psychiatrist and psychologist, and the Social Service Office (SSO).
Instead of issuing the traditional conditional warning telling the boy not to reoffend, failing which he would be charged in Court for the offence of trespass, it may be useful to work in further conditions and require him to subscribe to a regime, with the support of his parents, so that we can provide him with the best chance for rehabilitation. This would require the Police to be assisted by the professionals who will have to recommend the appropriate treatment for the boy.
The framework may require the boy to report frequently to the Police, so that his activities can be checked. It may require the boy to go to school regularly. It may require him not to frequent gaming arcades. It may require him to take his medication in accordance with what has been prescribed. It may also require the parents of the boys to furnish a bond, if it is assessed that the parents are not likely to provide sufficient support for the programme.
Such a regime, in my respectful opinion, will provide him with the best chance of not reoffending. This would mean that the Police have to be given resources or access to resources within the community.
There is also a need to coordinate with different stakeholders. There may be a need to identify a proper liaison body, such as the SSO. Otherwise, it would not work. This is not easy to implement, but it is important not just for the sake of the mentally-challenged offender, but his family and the community.
Mr Christopher de Souza: Sir, there has been a slight decrease in total number of drug abusers, but there is still cause for concern. Statistics show that the contamination rate is still high, with the proportion of new drug abusers remaining high at about 40%. The proportion of new drug abusers under 30 years of age also remains high, at about two-thirds.
In the past four years, the age group of those between 20 and 29 has made up about 45% to 50% of new abusers each year. This has important implications for our next generation.
Even though there may be shifting attitudes towards drugs, we must not cave in to what I call the defeatist narrative of the West, which promotes legalisation for recreational drugs. There is nothing recreational about seeing whole families suffer physical, economic and mental harm across generations.
Our Misuse of Drugs Act (MDA) must continue to criminalise both the demand and supply elements of the drug transaction, that is, trafficking the drug, the supply, and the consumption of it, being the demand. This allows Singapore to retain all tools and levers to reduce the flow of drugs into Singapore and the abuse of drugs on our shores.
In light of this, will MDA be further bolstered to meet the morphing drug threat, for example, the new advertising of sale of drugs through the Internet, new psychoactive substances that enter the market every now and then, and more users making up new abusers?
As regards promotion and the principle of rehabilitation, would MHA consider quashing the drug consumption convictions or record for a former drug abuser who has kept away from drugs for several years, for example, two, three or five years? This can be tracked from his regulated urine test. Such a quashing of his record will seriously incentivise him to stay clean for those number of years.
The result is a win for himself, a win for his family, and a win for current drug inmates who have a real role model to follow. So, it is a win-win-win. It is worth a serious try. So, would MHA kindly consider it?
Mr Baey Yam Keng (Tampines): Chairman, I visited the Community Rehabilitation Centre (CRC) recently. It is a community-based drug rehabilitation centre run by Trybe, a youth sector organisation. It houses male first-time drug abusers between the ages of 16 and 21. During the visit, I also learnt of the changing profile of drug abusers and drugs used in Singapore over the years.
At CRC, the approach taken is to immerse residents in a relationship-driven, transformational environment to lead a purposeful and drug-free life. I am glad to know that we are taking a differentiated approach to help different drug abusers. Rehabilitation is one of the three key components in tackling the drug problems here, the other two being education and deterrence.
Other countries are increasingly taking a soft stance towards drugs, and liberal attitudes are seeping into our youths through social media and other channels. One of the residents at CRC shared that he was first introduced to drugs by the beach while on holiday.
It is becoming more important that we set out our own narrative to counter inaccurate perceptions, to explain our approach and to show its effectiveness. I would like to ask MHA for an update on its response to drug challenges and how to maintain public support for our tough stance on drugs.
Mr Edwin Tong Chun Fai (Marine Parade): Mr Chairman, as my colleague Mr Christopher de Souza has outlined earlier, the two most concerning statistics from the Central Narcotics Bureau (CNB) report in 2017 are: firstly, that the proportion of new drug abusers, even if the absolute numbers may have dropped slightly by proportion, as Mr de Souza said, 40% of drug abusers arrested are new abusers.
Secondly, they are young, because two-thirds of those arrested are under 30 years old. Third, the common type of drug abuse, the methamphetamine, continues, by far, to be No 1 by about some distance. For new abusers, methamphetamine abusers also account for the highest proportion, being 80% of all new abusers.
These numbers tell us that there is an increasing number of new abusers who are young, with a choice of drug being methamphetamine, which is fast gaining popularity. It is a drug which is synthetically manufactured, which makes it easier to produce, and it is no coincidence that of worldwide seizures of drugs, methamphetamine constitutes the highest proportion, out of which the greatest volume seized come from East and Southeast Asia.
Drug production facilities are known to be located near to Singapore, which places our country at a greater risk of having those drugs come onto our shores. In fact, just last week, Indonesian authorities seized 1.6 tonnes of crystal meth, hidden on a Singapore-flagged ship, plying the waters between Sumatra and Singapore.
Sir, the drug problem is, indeed, a tragedy, not only to the individual drug abuser who suffers from the addiction and how much it affects his health, his well-being and his position in life, the society at large also suffers as a consequence of the addiction. There is a serious social cost arising from the breakup of families of addicts, the drop or lack of productivity, the cost of rehabilitation and reintegration into society.
There is also the problem caused by drug-related crimes, commonly stealing, housebreaking, robbery, all of which go towards supporting the habit, and they lend themselves to a less safe Singapore. It is clear that we must continue the vigilance and the absolute zero-tolerance policy against drug abuse.
To that end, can I ask the Minister to outline the steps taken to continue the fight against drug abuse? In particular, what additional steps can be taken to particularly focus on and educate potential new young abusers? What further strategies can be employed to make preventive drug education more effective not only to educate, but to proactively encourage and promote a drug-free lifestyle amongst the young?
Miss Cheng Li Hui (Tampines): Chairman, given the drug situation worsening regionally and worldwide, Singapore remains largely drug-free. Our drug abuse rate is very low, compared to other countries. Based on the statistics released by CNB in February, the total number of drug abusers arrested in 2017 decreased by about 5% from the previous year. CNB has been effective in their enforcement efforts and their fight against drugs. Nevertheless, there are still worrying trends. One of them is the use of drugs among the young.
About two-thirds of the new drug offenders arrested last year were below the age of 30, similar to that of 2016. This is a worrying trend. New drug abusers formed 40% of all drug abusers arrested in 2017. There is also a rise in online drug pedalling, with the number of people arrested for buying drugs online increasing over the last few years. The figure was 13 in 2015 and 201 in 2016. Most of those who engaged in online drug pedalling were between the ages of 20 and 39.
The change in mindset among the young, and the convenience offered by cyberspace, are perhaps important factors contributing to the rise in youth drug abuse. My worry is that if such trends hold up, new young abusers may form the next generation of drug addicts. Once a youth is enslaved by drugs, it potentially means many years of hidden suffering for him and his loved ones.
I would, therefore, like to ask how MHA intends to better engage youths who are on drugs and tackle the high proportion of new young drug abusers. Given the preference and habits of our youths, does the Ministry intend to make use of the new and relevant engagement platforms, for example, social media, as part of its outreach?
Ms Rahayu Mahzam: I have a soft spot for the families of those who are incarcerated for drug offences. The family members may have not been the ones who have been the addict, but they also have to pay a price for the crime. I note that the Malay community is over-represented amongst the drug-offenders. I have close relatives who were incarcerated for drug-related offences and were in and out of prison for many years. I saw how their families were affected by this. Fortunately, the families overcame their challenges and the children are now all grown up, working and meaningfully contributing to the economy. Not all families are as fortunate, as we have seen many cases where children of the drug offenders becoming addicts themselves.
It is, therefore, important to continue to create awareness about the dangers and impact of drug abuse. It is also important to support the families and ensure that there are proper rehabilitation and support upon release of the drug offenders from prison so that they can continue living their lives and participate in the future economy like everyone else. Difficulties in getting a job or inability to have a stable income in a challenging economy can contribute towards these ex-offenders succumbing to temptations and reoffending.
The effort put in by the Ministry in the \"Dadah itu Haram\" campaign to tackle offending, reoffending and the drug abuse issue within the Malay/Muslim community is, therefore, commendable. I note that there is outreach to the Malay/Muslim organisations to help support this campaign. And this is an important effort. I would like to seek some updates from the Ministry on this campaign. What has been the community’s response to the campaign? What is the status of the current efforts and further plans to work with the Malay/Muslim organisations in this regard?
The Chairman: Mr Louis Ng, you can take the three cuts together.
Mr Louis Ng Kok Kwang: Sir, current rehabilitation programmes target the needs of ex-offenders in criminal thinking, employment and family support. While the public’s support is important during reintegration, the ex-offender himself must be motivated to change. Inmates are the most disoriented, vulnerable and susceptible to influences at the initial incarceration phase.
This would be the opportune time to render positive and aspirational elements, such as talks or programmes by successful ex-offenders, who can be role models for inmates during this initial phase.
This would be a more powerful source of influence, compared to the counsel of case workers who may seem clinical and unrelatable. This would counter negative influences from fellow inmates discussing past escapades.
Can the Ministry consider including more programmes featuring ex-offenders and imparting life-changing strategies at this initial stage, especially during the initial two to three months, when inmates are most motivated to change and commitments are more sustainable?
I recently had coffee with ex-offenders and the stories they shared with me were heartening and inspiring. They made mistakes but they are trying hard to rebuild their lives and we need to help them. If there is one word they used most frequently in their stories, it is \"family\".
As I shared in my cuts last year, I strongly believe we should strengthen family ties to improve the rehabilitation process for inmates. I am grateful that the Singapore Prison Service (SPS) is working with Focus on the Family Singapore on running programmes to strengthen family bonds.
The Children’s Day event at Tanah Merah Prison last year, where 24 inmates were allowed an open visit where they could hug and hold their loved ones instead of being separated by a glass panel, was an excellent event. They were also not in their prison uniform. Can the Ministry extend this programme to more inmates and conduct more of such visits more often?
In the words of Focus on the Family Singapore \"Humans thrive when we know we are loved. When inmates connect and are reconciled with their families, there is a lower chance of them reoffending.\"
Next, current in-care programmes for inmates feature psychological and cognitive-based curriculum and counselling, targeting the thinking and behavioural aspects of inmates. Programmes can come across as overly clinical, diagnostic, prescriptive, featuring lecture-style methods.
I hope the Ministry will consider featuring more inspirational, experiential and reflective learning approaches. For example, through mentoring, where community partners or representatives can come in regularly through group or one-on-one mentoring for a period of time. This could complement the \"through-care\" strategy of SPS, where the mentoring relationship could carry on into the Aftercare stages of the inmate, making societal reintegration more seamless.
This also provides a more humanistic approach targeting the heart of inmates, creating an authentic and positive relationship of trust.
Mr Gan Thiam Poh (Ang Mo Kio): Chairman, one of the best ways to help an ex-offender reintegrate into society is to help him secure and hold down a good job. Not only will the job sustain him financially, it will also provide meaning to his life, enabling him to be a valued member of our community as he contributes his skills and expertise at work.
However, matching jobs with ex-offenders is easier said than done. On one hand, the prisoners’ aptitude, attitude and interests have to be taken into account. On the other hand, due to social stigma, employers have to overcome the psychological hurdle and take a leap of faith before giving an ex-offender an employment opportunity.
The speed of change at our workplaces has become so rapid that even many of the gainfully employed are at risk of being left behind. This is why we have to constantly send our employees for training to upgrade their skills. So, imagine the knowledge and skills gap faced by ex-offenders after they are released from prison. If we cannot help them to bridge that gap, it would be difficult to bring down the rate of recidivism. Ex-offenders, facing difficulties finding work or at work, will be tempted or even compelled to return to familiar old, bad habits.
Hence, I would like to seek an update on the Ministry's plans to enhance employment assistance and skills-training for ex-offenders. During incarceration, prisoners must have access to relevant education and skills training as part of their rehabilitation. What types of learning programmes are available to prisoners and how does the Ministry encourage them to take up these courses? What are the main challenges and obstacles faced by the prisoners and trainers?
Mr Edwin Tong Chun Fai: Our legislation seeks to help offenders find a path back into mainstream life in order to be active, contributing members of society, after they have spent their time in prison. For instance, the Registration of Criminals Act was amended in 2005 to allow those convicted of less serious crimes to have their record considered spent if they did not re-offend for a period of five years. This helps because, upon reaching the five-year period, such offenders will be able to probably say that they do not have a further criminal conviction record.
Rehabilitation and, particularly, reintegration of ex-offenders as responsible citizens have become one of the core tenets of our criminal justice system. If the ex-offender is not able to find his place back in society, the prospect of his re-offending becomes much higher. Reintegration, however, is a prolonged process, not one-off. Hence, the various networks set up to link up the various organisations, including voluntary welfare organisations (VWOs), the groups affiliated with the National Council of Social Services (NCSS), MSF, Statutory Boards like the Singapore Corporation of Rehabilitative Enterprises (SCORE), or the Yellow Ribbon Project, which is most well-known, are all useful.
But I would suggest that much more is needed to change the attitude and perception the society has towards ex-offenders, in order that the prejudice and stigma of reintegration into society does not become as much of a bar in society as it was in prison for the ex-offender.
In that context, can I ask the Minister what further steps can be taken to enhance an ex-offender's reintegration back into society? Would some of these steps include developing a strong after-care support network for the inmate and his or her family which, in fact, can be set up even during the period of incarceration in order to improve the prospects of successful reintegration?
Mr Desmond Choo (Tampines): Chairman, our Home Team has done an impeccable job in keeping us safe. Yet, it has its work cut out going ahead. Because of technology, crimes and social issues are fast-evolving, complex and multifaceted. Coupled with a leaner workforce, MHA must evolve new ways of staying ahead of the criminals. The Home Team is undergoing an important transformation.
Could the Minister provide further updates on the Home Team’s transformation process, especially in improving coordination and interoperability across different agencies? How has it resulted in more effective enforcement? How have the community partnerships evolved to help in Home Team’s work? And what will be the focus of the Home Team's outreach efforts in the coming year?
In MHA’s ongoing transformation, I hope that we can make an even greater shift towards tapping upon and empowering the individual and community entities in crime prevention. The fast-evolving, extraterritorial and multifaceted nature of crimes make purely Home Team-led actions more challenging over time. I would like to propose four ideas and approaches.
First, we need to enhance capabilities to develop and test new ideas quickly. The fast-evolving nature of crimes and community issues meant no entity has the monopoly of good solutions. MHA needs to develop platforms that will increase the academic and community participation in analysing and developing local solutions to our Home Team issues. This might involve building up a national databank, such as Iceland’s Registers Iceland (ISCRA), where partners can use the data for analysis. This is much like building on open-source codes where coders write and test new codes to build ever more robust systems quickly.
Second, we can leverage even greater use of behavioural insights to tackle our youth drug addiction problems. According to the CNB, the proportion of new drug abusers arrested in 2017 remained high and close to two-thirds of new abusers were under 30. The thrill for such young abusers is usually boredom and not getting caught. They are not always from traditionally defined broken homes. So, broken windows explanations are inadequate. This means that while we cannot go soft on our tough stance against drugs, we must develop new ways of finding new solutions. Programmes, such as “Natural Highs” in Iceland, succeeded because of strong behavioural insights. Could MHA similarly develop stronger behavioural insights in informing our future programmes?
The number of online scams has been increasing and becoming more pervasive, especially amongst the older users. We have worked hard at roadshows and awareness campaigns. Perhaps, it is timely to make cyber health checks as commonplace as our basic health checks. It is a mindset shift that cyber issues similarly require routine and pervasive intervention as do chronic health problems, especially for older residents. Community partners can work with the Home Team to develop easy to use diagnostic kits and help our elderly users stay healthier, cyberwise.
Fourth, we can make greater use of integrated data analytics for predictive enforcement. While crime-mapping is not new, the availability of artificial intelligence (AI) opens up new horizons in more effective manpower-lean policing. Yet, this is not about going down the route of the movie “Minority Report”. This is about better understanding our key threats and developing targeted effective solutions.
Effective transformation also requires that our officers can take on the new jobs. Could the Minister provide further updates on the job redesign efforts for the Home Team? How many jobs or functions have been redesigned? How has the Ministry also tapped on the expertise of retired officers? Could these officers be converted into civilian officers and deployed to take on other security-related responsibilities in the public or private space? These officers may also be able to raise the capabilities and support the needs of the private security sector under the Industry Transformation Map (ITM) that was launched just this month.
Dr Tan Wu Meng (Jurong): Mr Chairman, the terrorism threat remains at its highest level in recent years. So, it is important that we continue upskilling our private security workforce with better knowledge, better skills. But on my house visits, I have also met some older rank-and-file workers who want to join the security sector but find the courses unnecessarily complicated. They have found that some training materials are very wordy and not written in simple English.
One Clementi resident I met on my house visits was very discouraged. He is still physically fit. He speaks well, communicates easily and has lots of energy. But because he only went to primary school 50 years ago, his reading and writing in English are not so strong. He showed me a page from the training handbook. I saw the page and I ran the text through Microsoft Word which can calculate how hard it is to read the text. Microsoft Word said that the reading difficulty is like an American senior high-school or university level grade. As comparison, one American President's State of the Union speech from the 1980s had an easier reading level than that page from the training handbook!
Mr Chairman, my residents and people like him – they are good men and women – they did not choose to be born in a time when primary school education was the best opportunity that they had. Many of my older residents still have much to contribute. They are able-bodied, can communicate with the public without difficulty, keen to learn, but for people like my residents, they are finding it difficult to get into the private security industry, even though an opportunity there can provide much-needed income.
Mr Chairman, I ask whether MHA can help guide the organisers of such courses, so that security skills can be taught in a way that is more accessible to Singaporeans of different educational and language backgrounds.
More broadly, I also ask what plans there are to transform the private security industry so that we can continue having better working conditions, career prospects and wages for our workers.
Mr Edwin Tong Chun Fai: Security threats to common installations and public spaces in Singapore are very real concerns. At the same time, the security industry is facing a serious manpower crunch. Whilst technology and new advances in security devices, drones and the like can help plug the gap, there remains a need for well-qualified and experienced security consultants.
The Infrastructure Protection Act (IPA) was enacted last year to enhance the protection of certain infrastructure in Singapore against security risk. The IPA requires the submission of security plans for approval to the commissioner and, subsequently, the implementation of the measures in the plan after approval. The plan is the foundation of an enhanced protection of special developments and infrastructure under IPA. It is, therefore, critical that there are sufficient, well-qualified and recognised professionals who can come up with and implement robust and well-considered security plans.
At the launch of the security ITM, Second Minister Josephine Teo, who also launched a new Workforce Skills Qualifications (WSQ) pathway for security consultancy leading to a new specialist diploma in security consultancy. May I ask if there are plans to enhance and broaden the qualification criteria for this? Taking a leaf out of my colleague Dr Tan Wu Meng who spoke earlier, could there be more options for persons who are otherwise interested in this industry but find that the bar to entry to the industry is too high, for reasons Dr Tan cited?
Could the Minister also consider other types of qualifications, aside from having just the specialist diploma, including certifications from professional bodies, university degrees in security and other qualifications, which are very much practical in nature on the ground, and from people who have vast experience, because security is one industry where leaving aside the books, leaving aside the difficulty in language, experience counts for a lot more than what one might read from the textbooks?
The Chairman: Minister for Home Affairs.
The Minister for Home Affairs (Mr K Shanmugam): Mr Chairman, I thank the hon Members for their comments.
Singapore continues to be safe, secure. We were ranked No 1 in the Gallup Global Law and Order Report 2017. The Economist Intelligence Unit's Safe Cities Index 2017 ranked us second, behind Tokyo.
Public trust and confidence in the Home Team continue to be high. Ninety-seven percent of our residents feel safe walking home alone at night. The overall crime and drug situation remains under control. Crimes, such as robbery, housebreakings and snatch thefts, registered an all-time low in 2017. And the number of drug abusers arrested decreased in 2017, compared to 2016.
Fire incidents are at their lowest in 40 years. Recidivism rates have improved, as have the road safety and immigration offending situation. So, the overall situation in 2017 on the security front was, I would say, better than previous years. And compared to the rest of the world, many other similar cities, we are in a good situation. Achieving those results, securing a safer Singapore requires efforts from many different people.
We look at the growing terrorism threat, we have to deal with it on multiple fronts. It also means building up our capabilities to protect our people. MHA's budget has increased by more than 10% this year. A large part of that increase is going into enhancing our counterterrorism capabilities and efforts. It is because the threat of the Islamic State of Iraq and Syria (ISIS) remains high and, in fact, will continue to grow, as fighters from the Middle East come back to this region.
MHA must and will do all it can to protect our people. It is our responsibility and accountability to deal with terrorist threats within Singapore. As Members may know, under our system, legal framework and constitutional structure, MHA is responsible for home-front and internal security, including counterterrorism, crisis and consequence management.
When a terrorist attack happens, MHA is, therefore, overall responsible, will be in charge and lead the national response. Police will manage the incidents on the ground and will be the first and main responders. If the scale of the attack is very large, MHA may also ask SAF to provide support to the Police as an auxiliary force.
Likewise, MHA may also ask other Ministries, agencies, like the Ministry of Health (MOH) to support the operations. To this end, the Police and SAF have developed joint plans and conducted joint exercises. We are, of course, very appreciative for the SAF's commitment and the commitment of other agencies to support the Home Team in such situations.
This modus operandi has been discussed and agreed on for some time and, as I have said, it follows the constitutional structure and practice that we have adopted over many decades and I made this clear in 2016, when I stated that all operations within Singapore, the Police will take command. And depending on the nature and the scale of the attack, Home Team may rely on other agencies which will provide support for us.
These agencies could include, depending on the nature and scale of the incident, SAF, the Ministry of Communications and Information (MCI) and MOH. For example, if there is a large-scale attack, if Police need additional forces beyond the Emergency Response Teams (ERT) and the Special Operations Command (SOC), SPF may call upon SAF for specialised forces like the Special Operations Task Force.
They will also support and reinforce the ERTs and SOC. Exercises have been conducted to make sure that these plans are sharpened and we will continue to include other partner agencies in such exercises. Second Minister Josephine Teo will share more on how the Home Team is countering the terrorist threat.
I will now speak on three areas. First, ensuring the criminal justice system stays relevant and effective; second, preventing religious extremism and segregationist thinking; and third, maintaining our tough stance against drugs. The other officeholders will deal with the other points.
First, on the criminal justice system. We seek to amend the CPC, the Bill that is in Parliament – the Evidence Act – and later this year, we will amend the Penal Code. The detailed proposals on the amendments to CPC will be covered in my Second Reading speech.
I told the House in January that we have embarked on a comprehensive review of the Penal Code. We set up a committee in July 2016 to this end to undertake a fundamental review to look at the principles which underlie our laws, what offences could be covered, what the punishments should be, and whether the current punishments are appropriate. It is quite a broad review. The Committee aims to complete its work in a few months' time, and we will invite feedback from the public.
Significant focus of the Penal Code Review would be on enhancing protections for vulnerable persons – children, people with mental disabilities and domestic workers. Mr Ang Wei Neng spoke about this. We have seen cases where such persons are violently treated, hurt, exploited or even killed by the very people who ought to be protecting them.
Many Members will know of the case of Annie Ee, as do many Singaporeans. We can understand the anger that many people felt. There are other cases like this. Recently, the case of a mother who abused her two-year-old son. And after two years, he died from head injuries, assaulted for not being able to recite numbers.
Our punishments for these sorts of offences are generally stiff. We will, nevertheless, review the punishments and what is the level of proof that is needed for these cases.
Mr Ang Wei Neng spoke about the Vulnerable Adults Bill. Our MSF colleagues have been working hard on this. And I understand the Bill will be tabled in Parliament soon. Mr Louis Ng asked about marital rape, and that is also under review. Let us be clear. Violence against women is wrong – no ifs and no buts on that. So, removal of immunity against marital rape is being studied.
Second, I want to talk about process reviews and changes, the steps we are taking to improve our processes. When you look at investigations, our investigative processes, will aim to take better care of the victims' well-being. In particular, we are looking at the investigations and Court processes for sexual crimes, to better protect victims of such offences.
Mr Christopher de Souza and Mr Louis Ng asked about this. I first announced in August 2016 that we were reviewing this. We have listened to the victims to understand their concerns. We have worked with several organisations – MSF, hospitals, Courts and non-government organisations (NGOs) – to improve our processes and the way our officers interact with the victims. Some examples of the changes that have been made, we have selected and started training a group of officers. We call them Sexual Crime Duty Officers. They will conduct interviews with victims.
We have introduced the One-Stop Abuse Forensic Examination (OneSAFE) Centre. Victims can be examined by a doctor onsite at the Criminal Investigation Department (CID), without the need to shuttle between CID and hospital and having to recount what happened to them once at the hospital and once to the Police Officers. Everything could be done in one place, at the OneSAFE Centre.
We have developed a training video for our officers on how to question the victims in an empathetic way. The Association of Women for Action and Research (AWARE) helped us with that. They will then understand and have greater empathy for the trauma faced by victims. In June this year, the Police, together with KK Women’s and Children’s Hospital (KKH) and other partners, will pilot a Multi-Disciplinary Interview (MDI) model. This would be focused on children who have been sexually abused by family members.
It is necessary to gather the facts from these children. But, again, one can imagine or understand the stress that such children may undergo if they have to be interviewed separately by the Police, doctors and child protection officers. It adds to the stress. And so, we will seek to integrate these interviews so that the children need not repeatedly recount their traumatic experience.
In addition, Court processes will aim to better protect the victims of sexual assault cases, including automatic protection of identity, closed-door hearings and the questions about the victim's sexual history and unrelated behaviour. There will be restrictions on what sort of cross-examination will be allowed, subject to the overall jurisdiction of the Courts. That will be set out when we deal with the legislation. We will define the precise scope, what we are intending to do, and how the process can be taken forward.
Another process is the Appropriate Adults (AAs) Scheme. We started this in 2013 for persons with intellectual disabilities and mental health problems. This was extended in 2017 to support young suspects. Independent volunteers are the AAs. They are trained to provide emotional support to the interviewees.
In 2017, AAs provided support for about 700 interviews during the course of investigations, and the feedback has been positive, both from the volunteers who are AAs, as well as the Investigation Officers (IOs).
In April this year, we will roll out the AA scheme to more Police and CNB units so that they can support more young suspects. And it will also include Customs and the Corrupt Practices Investigation Bureau (CPIB).
Separately, we are also looking to identify and deal with the basic issues that lead people to crime.
Mr Murali Pillai spoke about involving the community and VWOs, and how to deal with offenders with mental health conditions. This is something new, in the sense of what I am going to say. We will introduce a new initiative. It will be called the Home Team Community Assistance and Referral Scheme (HT CARES).
When our officers deal with individuals who have committed offences, often, they become aware of other problems and the complex circumstances surrounding these offenders. As Mr Murali Pillai pointed out, some have medical issues, too. Some are struggling to make ends meet. Others have problems with the family.
So, we will have these CARES officers stationed at every Police Division. The investigators will deal with the \"crime-solving\". The CARES officers will assess whether social interventions are needed to address the underlying issues. The interventions could be in the form of counselling; it could be in the form of mental health assistance; it could be in the form of financial assistance. The CARES officers will then refer the offenders to a suitable agency for help and continue to follow-up. We are studying this in detail with MSF, and we will try to pilot this at a Police Division this year.
Another important area is how we deal with the young offenders. Our approach, if you take today, 80% of the youths who are arrested are not charged – four out of five are not charged. The Police will give them a warning and refer them to counselling and other programmes. We want to give them a chance to sober up, stay on the right side of the law after that.
But there will be cases, as the statistics showed – 20% – where we have no choice. We have to take stern action. Some are repeat offenders; some could be serious offences, like drug trafficking. Such cases, they will be detained. And for punishment, deterrence and, equally important, their own rehabilitation.
Reformative Training (RT) is an essential, necessary regime for such young people. Within the RT population, we try to group them by risk profile and needs. This helps to provide a more targeted set of interventions. The trainees will go through programmes that will help them take charge of their rehabilitation. They can then reflect on their offences ‒ how to stay crime-free and how to strengthen their relationships with their family.
Prisons will also continue with their education and skills training for the reformative trainees. Those who can, will continue to take their GCE \"N\", \"O\" and \"A\" levels. There are also vocational training opportunities, such as Workforce Development Agency (WDA)-accredited courses.
We intend to further enhance the RT regime. One of these changes is to reduce the minimum detention period from the current 18 months to either six months or 12 months. This is in line with the more targeted approach we want to take because different individuals may require different intensities of intervention and different lengths of rehabilitation. I will speak further about the RT regime during the Second Reading of the CPC (Amendment) Bill later this month.
My third point, let me deal with religious extremism and segregationist thinking. Mr Christopher de Souza spoke about this. The older generation, who are getting increasingly older, will remember the turmoil of the 1950s and 1960s. We do not want to go back to those days. For many countries, that is their current reality.
What we have today is the racial and religious harmony which has been achieved through decades of deliberate and sustained intervention and the Government working hand-in-hand with various stakeholders. It is a constant work-in-progress. We never say you have arrived, and you can slide back quite quickly.
So, how do we prevent segregationist teachings from taking root? We have a number of approaches – social intervention, regulatory framework and a constant working with community organisations, grassroots, getting the message across.
For example, in terms of social intervention, our Ethnic Integration Policy in our public housing. Our schools are integrated. National Service (NS) puts our young men together. These deliberate interventions mean that we grow up together, build collective memories together and we come together as Singaporeans, instead of forming ethnic or religious enclaves. And this shows in the way we live our daily lives, such as eating together at the same table, working together in the same offices.
One example of the approach or the result of that approach, the Straits Times recently featured Masjid Khalid, a mosque in Joo Chiat, which distributes oranges and greeting cards to business owners and residents in the area during the Lunar New Year. This is just one of the many examples we see on the ground.
We have to preserve the harmony and, to do this, we cannot let extremist or segregationist teachings infiltrate our communities. Even a small number of persons propagating radical, segregationist beliefs can be dangerous. As Mr Chong Kee Hiong pointed out, the inflammatory and viral potential of such beliefs is increased with social media.
It is challenging. But we work closely with community groups and religious organisations, we want to try and better inoculate our community from such influences. And the efforts extend to online as well. For example, the Religious Rehabilitation Group (RRG) has produced online videos to explain why ISIS' ideology goes against Islamic teachings. Offline, in the physical world, when we have foreign preachers who want to come into Singapore, and if we know that they have advocated violence or spread ill-will towards other religions, whether in Singapore or elsewhere, they will not be allowed to speak here. This applies to all religions.
In September last year, we banned two foreign preachers: Christian. They wanted to speak in Singapore. One of them had described Allah as \"a false god\". He had asked for prayers for those \"held captive in the darkness of Islam\". He insinuated that Buddhists were \"lost\" people who could be saved by converting to Christianity. The other preacher had variously referred to \"the malevolent nature of Islam and Mohammed\", saying Islam was \"not a religion of peace\". This is all unacceptable. And we said no, they cannot come in to preach.
That was September 2017. A month later, in October 2017, we said no to two foreign Muslim preachers. One was Mufti Ismail Menk, and the other is Haslin bin Baharim. They wanted to come into Singapore to preach on a religious-themed cruise.
Some have said that the Government over-reacted. What is wrong with Mufti Menk telling Muslims that wishing non-Muslims \"Merry Christmas\" or \"Happy Deepavali\" is the biggest sin and crime that a Muslim can commit? What is wrong with him preaching that? Our decisions are carefully considered. Mufti Menk is a preacher who has been systematically putting out messages like there are people who are very big enemies of Islam, and if you attend their functions, you will be seen as rubbing shoulders with them. There are thousands of reasons why Islam is more authentic and valuable; that Christianity is just a bubble that is blown such that you feel emotionally high. If you look at all his teachings, the main message that comes out is quite clear and the divisiveness is not acceptable.
At the same time, we are also not immune to Islamophobia. In June last year, after the news of the detention of Syaikhah Izzah Zahrah Al Ansari was reported, we had an Indian man scolding a Muslim lady who wore a tudung on a bus, saying that Muslims \"should stay in Iraq as they did not know the value [of] staying in Singapore\".
So far, these incidents are few and far between. They are contained. Most Singaporeans do not behave like this. And there is a good reason why. It is because of the approach of the Government and the people of Singapore. But we need to keep a close watch on this. We must not allow the threat of terrorism to, on the other side, create fear, suspicion and distrust of one another.
Mr Chong Kee Hiong spoke about the role of the community. Our community leaders have done much to foster respect and understanding among the communities. The Inter-Racial and Religious Confidence Circles (IRCCs) are one example. The Inter-Religious Organisation (IRO) is another.
Our religious leaders play a big role in leading by example. A wonderful example is the Mufti of Singapore, Dr Mohamed Fatris Bakaram, who shares in other communities' celebrations like Deepavali and Christmas, and regularly offers festive greetings in private and public, including during the Chinese New Year last month.
Another example is the Anglican Bishop Rennis Ponniah who hosted an annual Christmas tea at his official residence, with not just Anglicans attending, but also Catholics, Lutherans, Muslims, Buddhists and Taoists. They were invited to join in and they joined it.
The Singapore Buddhist Lodge donates rice and funds to mosques during Ramadan every year for the breaking of fast, to be distributed to needy families. This was initiated by their late President Mr Lee Bock Guan, both to help the needy and to promote inter-religious harmony.
There are numerous examples. I have just identified a few. It is the respect of different faiths, the willingness to share in one another's lives, that it is not just a harmonious common living space.
Let me now move to our stance on drugs.
Mr Christopher de Souza, Mr Baey Yam Keng, Mr Desmond Choo and Mr Edwin Tong spoke about the global challenge. The results from a 2016 National Council Against Drug Abuse survey shows a slightly worrying trend. Our young people are adopting a slightly more open attitude towards drugs, compared with a similar survey done three years earlier in 2013, especially towards cannabis. I think the Internet, social media, the pro-legalisation lobby in the US are telling them it is cool and safe to take cannabis. But if you look at the well-supported research, it tells us that cannabis is harmful, especially to teenagers, because it can cause irreversible brain damage.
We have to stay firm in this fight against drugs. We are also studying how we can enhance the Misuse of Drugs Act (MDA) to deal with new threats. Over the past year, the drug situation in the world has continued to worsen. The US declared the opioid crisis they face is a \"public health emergency\". The US National Centre for Health Statistics estimated almost 64,000 people died from drug overdose in 2016. Sixty-four thousand people – that number is more than the number of US soldiers who died in the Vietnam, Afghanistan and Iraq wars combined. It is more than the number of people who have died through breast cancer in the US. It is more than the number of people who have died of human immunodeficiency virus (HIV) and acquired immunodeficiency syndrome (AIDS)-related deaths in the US at the peak of the epidemic.
The media has covered extensively on how the big pharmaceutical (pharma) companies, poor regulation and irresponsible proliferation of poor-quality research often funded by the pharma companies have all combined to create this crisis. In May 2017, the US federal court found top executives from Purdue Pharma guilty of misleading regulators, doctors, patients about the risks of OxyContin, which is a powerful and addictive opioid. They earned billions from their deception. Patients graduated from snorting or injecting the crushed pills, then turning to heroin and other drugs to feed their addictions.
Despite the harms caused by drugs, some countries have been softening their stance. Countries, such as Portugal, have decriminalised drug use and they have received international attention for this approach. And there are some people here who tell us Portugal is a great example to follow and show why our approach is wrong and Portugal's approach is right. But do the facts bear that out? And what are the lessons for us from the Portugal situation?
First, Portugal started with a serious public health problem on its hands. It had many heroin abusers. They were sharing contaminated needles and they were spreading diseases like Hepatitis B, Hepatitis C and HIV. More than half of the HIV infections were drug-related, which was the highest rate in the European Union (EU). Portugal then decided to decriminalise drugs. It increased funding for treatment facilities, provided for needle exchange and opioid substitution therapy, ran campaigns \"say no to a second-hand syringe\". These measures have helped Portugal to reduce HIV and Hepatitis infections. But when you start with serious HIV-related problems, Hepatitis infection-related problems arising through drug use, contaminated needles, then I suppose you ask yourself which is the lesser evil and you go for decriminalisation and then you try and reduce the problem somewhat.
But we are not in that situation, thankfully. And there are tradeoffs from Portugal's approach. The lifetime prevalence of drug use in Portugal has increased since decriminalisation. Surveys indicate that more Portuguese students are trying drugs and the number of drug-related deaths has also gone up since 2011. So, you will not find all these facts from the people who advocate that we go down the route of Portugal. Portugal decided to decriminalise drugs in a situation where perhaps it concluded that it was not possible or unrealistic for it to control the drug situation.
The situation we have in Singapore is different. Our approach has been effective and has worked well for us. We are one of the few countries where the drug situation has been under control and perhaps the country that has been most effective in dealing with the problem.
Mr Chairman, with your permission, can I display a slide on the screen, please?
The Chairman: Yes. [A slide was shown to hon Members.]
Mr K Shanmugam: We have many slides, but this sort of shows you what the trends have been over a period of time in terms of drug use. Anyway, in all the downward blip for the period when people abused Subutex, when you see that, it is probably a fairly smooth curve. There was not a real dip in certain years because people were using Subutex. And then we outlawed that and they went back to other drugs.
The number of drug abusers we have in Singapore is relatively low, compared with some of the other jurisdictions. For example, the number of opiate abusers in Singapore is less than 30 per 100,000 people. In Portugal, the number is almost 500. In the US, the number is 600, that is, 20 times our number. In Portugal, it is just under 20 times. And the numbers will grow further in the US because of the move towards legalisation in many states.
Intravenous drug use is not a significant mode of HIV transmission in Singapore. So, if you think of the lives that have been saved, the misery, deprivation, the loss – we have saved a lot of people from that, if you just look at that slide ‒ from something near 7,000 people being arrested per year, to something in the region of 3,000-plus being arrested now. If you take that as 3,000 to 4,000 lives per year over a 20-year period, it is a lot of lives, a lot of people who have been saved from drugs. This result has been possible because we have been tough on drugs.
And we should not ease up. You look at the cases anecdotally. Just this Monday, CNB arrested a trafficker in a drug bust. During the investigations, officers discovered that ‒ and it was a lady ‒ she was caregiver to a toddler. She had left him with two other suspected drug traffickers. Concerned about the toddler's safety, CNB and Police then moved quickly with operations the very next day to take down two suspects. The young child was rescued and is now with Child Protective Services. How old is the child? One year old. In that one year, the young child had already been abandoned by his mother, who is on the run for drug offences, and being passed around between drug traffickers. These are not isolated cases. In many other countries, these are par for the course. We do not want to get there.
In another case, a drug addict father abused his baby daughter ‒ very cruel, regularly biting her. One day, he was furious because he had no money to buy drugs. The baby cried ‒ as babies do ‒ and he shoved her against the wall so hard, her skull fractured. She was 10 months old ‒ not old enough to defend herself. These are the victims of drugs.
The activists light candles for traffickers outside Changi Prison. They write emotive stories. They dream up about their lives. But who cares for these very real victims? How many young lives have we saved with our policies? Would you hear a squeak from the activists about these people ‒ the actual victims of burglaries, housebreakings, families torn apart through drugs, the physical violence, the mental abuse, and, by a process of estimation, the number of people who have been saved from that, the shootings and the killings that take place in other countries where drug abuse is prevalent? The 60,000 people who died through opioid abuse do not capture all the deaths in the US. There are many more gangland violence with drugs as the underlying cause ‒ the shootings, guns, weapons.
We have another case in Singapore – a 9-year-old boy living with his abusive aunt. He saw her doing drugs. He ran away because he was scared of being beaten again when she was under the influence of drugs. But she found him, hit him, burned him with a lighter, picked him up and dangled him out of a third-storey window.
Our CNB officers recently came across another abuser – seven months pregnant, still smoking \"ice\". She already had a previous miscarriage because of her \"ice\" habit, but her addiction was so strong. She persisted anyway, at the expense of her unborn, innocent child. And, again, from foreign jurisdictions, you see cases where children are born with addiction in-built and they need and crave for heroin from the time they are born.
Who speaks for these defenceless victims? As I have said earlier, the self-styled activists refused to talk about how the addiction of hundreds of abusers is fed with each shipment that these traffickers bring in. How many families suffer as a result of drugs?
Our penalties are severe because we want to deter such offences, not because we take any joy in enforcing them. No one can take any joy in enforcing them.
Our regional drug situation remains challenging. The region is home to the Golden Triangle, which is the largest methamphetamine market in the world. Trafficking of heroin and methamphetamine in this region alone is estimated to generate over US$32 billion annually. It is a very lucrative business. It is not going to go away. So, let us not kid ourselves.
International criminal syndicates operate in this region, attracted by the profits. Being a major transport and commercial hub makes us susceptible, both as a transit point and as an import market because of the wealth factor.
It is beyond our ability to change factors outside of Singapore. What we can do is to try and deter criminals from attempting to bring drugs into Singapore. And we have to be firm in resisting those who try to force their ideologies on us.
Parliamentary Secretary Amrin Amin will elaborate on how we are working with various stakeholders on this.
The Chairman: Minister Josephine Teo.
The Second Minister for Home Affairs (Mrs Josephine Teo): Chairman, there were some 20 minutes of savings from the Ministry of Defence (MINDEF) Committee of Supply (COS). In order for Parliamentary Secretary Amrin and I to address the remaining cuts, may we have your kind consent to take that extra time?
The Chairman: You may. You may also thank your security colleagues.
Mrs Josephine Teo: Thank you, Sir. Members spoke about the different challenges that the Home Team faces. I will expand on MHA's responses in three areas. First, counterterrorism; second, Home Team transformation, and that is not just in technology but also in manpower; and third, on the private security industry.
Let me deal, first, with terrorism. Mr Christopher de Souza and Ms Rahayu Mahzam spoke about this. The threat to Singapore is at its highest level in recent years. It has not abated; it has probably intensified. And how do we deal with it? Essentially, there are three strategies.
First, to guard against social fault lines, and segregationist tendencies are of the biggest concern. The Minister has already explained how we go about it.
Second, to make it harder for the terrorists to carry out attacks. Make them think twice, thrice if possible, before they target us.
Third, be well-prepared to respond. When it happens, we will be shocked, but we must not be immobilised.
I will expand on the latter two strategies.
We have made significant moves to enhance preparedness and deter attacks. Our laws are being updated. Last year, we amended the Public Order Act. We introduced the Infrastructure Protection Act. Later this month, Parliament will debate the Public Order and Safety (Special Powers) Bill. We are coming to Parliament to seek Members' support because the Police may need the additional powers to protect public safety for serious incidents like a terror attack. This does not mean that the Police is not, at the same time, doing other things, such as enhancing operational response capabilities.
In December last year, we put in place In-Situ Reaction Teams. These are officers who patrol the areas of high human traffic, for example, Orchard Road and Marina Bay. We started them because it was the festive season. They are armed with submachine guns. If something happens, they can intervene more swiftly and effectively until the other forces arrive.
Mr Christopher de Souza, Ms Rahayu Mahzam and Mr Desmond Choo rightly pointed out that the preparedness must go beyond the Home Team. Every Singaporean has a role to play, and that is why community partnership is a key part of the Home Team's work, and also why we launched the SGSecure movement.
We are now moving into the next phase of SGSecure. What that means is that from awareness, we now focus on preparedness. One focal point is workplaces because everyone goes to work every single day. They are very much a part of our lives. We spend quite a lot of time at the workplace. So, we launched the SGSecure Guide for Workplaces and this was in September last year. It provides tips and resources for employers. There are advisories that the employers can distribute to their staff. And what it does is to guide people on what they can do in an attack – where to hide safely, how to perform improvised first-aid because you will not have all the essential materials that usually are associated with first-aid, you have to improvise.
Overall, we are making good progress in enhancing deterrence and preparedness. But we cannot let our guard down and we must continue to press on.
Let me turn to Home Team Transformation. Mr Desmond Choo has asked for a progress update. The Home Team Transformation has to be a multi-year effort but with a clear and consistent purpose and, that is, to renew and strengthen our capabilities, so that we can remain a prepared, effective and trusted force.
Technology is a big part of that transformation journey. We are using technology in two areas. One, to counter emerging threats and, two, to improve our effectiveness.
Let me say a little bit more about emerging threats, in particular, biological attacks. Terrorist groups are seeking to develop such capabilities. What they plan to do is to use viruses or infectious diseases as weapons. How do we know that this is happening? The Al-Qaeda has an encyclopedia of Jihad, and in the 11th volume of this encyclopedia of Jihad, it is entirely devoted to chemical and biological weapons. And, of course, when terrorists are captured, the reports also show that they admit to such plots.
The question is why are biological weapons attractive to terrorists? The reasons are because they are hard to detect, it is not immediately observable that a biological attack has taken place and, by the time it is known, there will already be many victims. It can cause widespread panic and the public could be gripped by fear. They could either self-quarantine themselves or they want to avoid contact. That poses a major risk for a place like Singapore where many people pass through our borders. We are a global and regional hub for business, finance, aviation and maritime matters. It can mean a total shutdown for Singapore and we had some experience of that, like during the period of severe acute respiratory syndrome (SARS).
How can we deal with this threat? MHA has implemented a Bio-surveillance Programme. This is taking place at our borders. We have laboratories and we have equipped them with state-of-the-art Lab-on-Chip systems. Mr Desmond Choo will be happy to know that this Lab-on-Chip system that is in use at our borders is developed by a local company Veredus Laboratories.
This system is superior in two ways. First, it can test for multiple biological threats, not just one. Secondly, the speed of detection is much quicker. You can get results within three hours. Compared to traditional screening methods, you need four times as long, 12 hours. It has also been tested elsewhere in Singapore, at large-scale public events, and when epidemic outbreaks elsewhere are at risk of reaching our shores.
But thankfully, no incident of bio-terrorism agents has been detected so far. But we have developed the capability and, in case it happens, we can take preventive or mitigation measures more quickly, so as to reduce the spread of viruses and diseases.
Technology is also being used to improve our operational effectiveness. It is cutting down time spent on routine tasks. It is helping our officers to do more with less, and it is helping to reduce the exposure of our officers to dangerous situations.
We take SCDF, for example. Since 2014, they have been using something called an unmanned firefighting machine (UFM). What this UFM does is that it can shoot giant jets of water to extinguish fires, and it is remotely controlled. Therefore, it can go deep into dangerous areas and it is much less risky than deploying our officers to do so. It has proven its usefulness in fighting major fires at Sungei Kadut, Jurong Island and Tuas.
SCDF is also developing Exo-skeletons. It can help SCDF officers lift heavier loads, so that they can sustain operations for a longer period of time.
Another game-changer in Home Team Transformation is something we are all, as Members of Parliament, quite familiar with, and that is the Police Camera (PolCam) initiative. This was launched in 2012. It is welcomed by many residents. The footage has helped to solve more than 900 cases of unlicensed moneylending.
Unlicensed moneylending cases involve damage to property and these cases have fallen by more than 80%, from more than 7,600 cases in 2012 to just about 1,000 cases in 2017, an 80% drop.
The Police have been coming down very hard on unlicensed moneylenders and they have successfully curtailed all of these cases that I have mentioned, especially those that involved physical harassment or confrontation because they caused damage to property. The Police have been relentless and, as a result, the unlicensed moneylending syndicates have been forced to change their modus operandi and find other methods of harassment.
Assoc Prof Daniel Goh spoke about the spike in moneylending harassment in 2013. These were mostly cases that did not involve damage to property. They involved non-physical forms of harassment, such as through text messages and social media.
They are not necessarily a sign of heightened loan shark activity. It could simply be due to the proliferation of online messaging services, and also the easily available technological tools to mask the identities of the senders. But naturally, the victims are distressed and the harassment by text messages and online means are much harder to prevent and to crack. We deal with them in a few ways.
First, people should know that unlicensed moneylending is illegal and, if they borrow from unlicensed moneylenders, they risk becoming the victims of harassment.
Second, if the borrowers are harassed by unlicensed moneylenders, they get protection from the Harassment Act. This provides a means for victims to seek protection. If harassment involves threats, hurt and property damage, the victims should report the cases to the Police and the Police will investigate. If it is found to have been grievous, they will take action against the perpetrators.
But the resources we have are limited and the public should also play its part – do not borrow from unlicensed moneylenders in the first place and to advise family and friends against doing so, and also to seek help through other means.
These are just some of the examples that the Home Team is using technology to counter emerging threats and enhance our effectiveness. As a result of these efforts, technology investments will increase significantly. Our annual investment in technology infrastructure alone – and, by that, I am referring to sensors and sense-making, for example, the Command, Control and Communication systems – is projected to triple over the next two years. It demonstrates our resolve to remain effective, even with rising terror threats and manpower constraints.
But technology alone is not enough. The value of technology lies in how it is used. The man-machine mix must be effective. Mr Desmond Choo alluded to this. Job redesign will, therefore, be a big part of this effort. It will help to ensure that Home Team jobs remain relevant and challenging and will allow our officers to maximise their value-add.
One example is the ICA's Buss Scanning Project. You can find it at the Tuas Checkpoint where two radiographic imaging scanners are being installed. What these two scanners do is to scan all the arriving buses to detect anomalies, such as hidden compartments. How does it help the officers and the Home Team? Well, their time and attention are freed up. They can use the scanning results to perform targeted checks instead of performing checks on all the buses. What this means is that it gives the real criminals a harder time.
Of course, the officers need training to reskill and reorientate and they are getting that retraining. They learn X-ray image analysis and also how to do security profiling using analytics. About 40 officers have been trained so far.
Mr Desmond Choo asked how retiring officers are being supported in job placement. To remind the House, the retirement age was raised from 50 to 55 in 2013. The Career Transition Office for Home Team officers was set up in 2016. It is helping retiring officers to find employment within the Home Team or public sector agencies as civilian officers, or with private sector companies, for example, security firms. It organises networking sessions with prospective employers. It also recognises that, for the officers, adjustments are needed. So, the officers can try out potential job opportunities, whether at public agencies or private sector companies. For up to three months prior to their retirement, they will continue to receive salaries from the Home Team, even as they try out these new jobs. Mr Desmond Choo also suggested further ideas for transforming the Home Team. They are all good ideas and we will seriously consider them.
Dr Tan Wu Meng asked about plans to transform the private security industry. The Security ITM was recently launched and it is a tripartite effort among the Government, security service providers as well as the buyers and the union. The core idea is this: that we want to transform service delivery through four things: intensify the use of technology and innovation; promote smart buying, and for the Government to take the lead in doing so; align regulations as well as upgrade skills and career advancement of opportunities. The benefits are real. Productivity gains for security service providers, cost savings or better value for service buyers, better employment outcomes for security personnel and a more secure Singapore.
Dr Tan Wu Meng hopes that older workers can continue to contribute and I fully agree with him. I have seen how it can be done. Of the 47,000 active security officers, more than half are above the age of 50; and of this group, another half are above the age of 60. So, the security industry is not a profession that shuts out seniors. On the contrary, even with the use of technology, we will see them playing an active role.
Technology can help to take over labour-intensive tasks, for example, ground patrols, and it will make work easier for the older security officers who can still have a meaningful role, tap their experience, make judgements when security alerts through video analytics, for example, are presented to them and advise their younger colleagues on the best response. Government support is available for job redesign and WDA offers customised guidance and funding support.
Dr Tan Wu Meng highlighted his concern that security training materials are not written in simple English. The security courses are generally accessible to most learners and the passing rate in 2017 was about 90%. The training standards are set by SkillsFuture Singapore (SSG) in consultation with the Police and other industry stakeholders. The course providers have flexibility. For example, they can use videos for instruction and, instead of written tests, they can take oral assessments. Experienced security officers also do not have to attend classroom training or take written tests. They can obtain a Statement of Attainment through an assessment-only pathway, which means face-to-face interviews and role play.
Mr Edwin Tong spoke about having sufficient qualified security consultants for purposes of the Infrastructure Protection Act. Several initiatives are in place. Skills Security Framework offers a career pathway in security consultancy. There is a specialist diploma also in security consultancy that would start next year. He asked if there are other qualifications that can be considered, and the answer is yes.
The tripartite partners have a joint stake in the Security ITM and we are confident we will achieve the vision of a security industry that is vibrant, technologically-advanced and competitive.
Mr Chairman, if you will allow me, I would like to conclude in Mandarin.
(In Mandarin): [Please refer to Vernacular Speech.] In the coming years, we will continue to review and enhance our laws, upgrade our procedures, and focus on the transformation of the Home Team.
We will invest significantly in technology to counter emerging threats and improve the effectiveness of the Home Team. Let me share an example. As laptops and smartphones have become common, the number of criminal cases involving digital media has gone up manifold. To investigate these crimes, information and evidence need to be extracted from digital devices, such as handphones and thumb drives.
It is not sustainable to maintain the status quo in the way we approach the investigation and handling of evidence for such crimes. Instead, SPF will be introducing a Digital Forensic Kiosk, which allows IOs to directly and more efficiently retrieve, organise and analyse information from digital devices. This kiosk will also be able to scan for possible evidence based on the type of case being investigated. Overall, this will allow our IOs to quickly access evidence and carry out their investigations more effectively.
Even as we invest in technologies and systems, we will also ensure that our officers are given the necessary training and retraining so that they can continue to contribute effectively in their roles. Beyond our transformation efforts, ultimately, it is the professionalism and dedication of each and every Home Team officer that matters the most. They put in a lot of hard work to keep us safe and secure, even when the rest of Singapore is enjoying our public holidays or asleep at home, and, oftentimes, they go beyond their call of duty to serve our people.
The public’s trust and confidence in the Home Team continues to be high. We do not take it for granted, however, and will strive to continue to deserve this.
The Chairman: Parliamentary Secretary Amrin Amin.
The Parliamentary Secretary to the Minister for Home Affairs (Mr Amrin Amin): Mr Chairman, I will focus on two areas: first, keeping Singapore drug-free; and second, supporting the rehabilitation and reintegration of offenders.
Members spoke about the fight against drugs. Mr Christopher de Souza spoke about stemming the supply and demand of drugs. Keeping Singapore drug-free is a key priority for MHA. This requires a combination of tough laws, effective enforcement and preventive education.
CNB has kept up enforcement efforts. Last year, CNB dismantled 23 drug syndicates, and conducted 19 islandwide operations targeting drug traffickers and abusers. CNB also conducted 12 joint operations with our foreign counterparts to cut out drug supplies from overseas. Just last week, CNB had a joint operation with their Malaysian counterparts to smash a regional drug syndicate.
Mr Christopher de Souza and Mr Baey Yam Keng spoke about emerging drug threats, such as the purchase of drugs online and new psychoactive substances. These are, indeed, areas of concern. There are people in Singapore who have tried to buy drugs online. They thought they could get away with it. They were wrong. Last year, CNB worked with courier companies to detect more than 350 parcels with drugs or drug-related products. CNB’s follow-up investigations led to the arrest of 177 individuals. We will continue to clamp down on the online drug trade.
New psychoactive substances (NPS) are a global challenge that many countries are grappling with. So far, the NPS situation in Singapore is contained. This is because we keep a close watch for any new substances, and list them in MDA. Regular reviews of our legislative and operational strategies are conducted to combat NPS abuse. Enforcement alone is not enough. To keep Singapore drug-free, all Singaporeans must know that drugs are harmful and stay away from them.
Mr Edwin Tong and Miss Cheng Li Hui asked how we can better engage youths and tackle the high proportion of new and young drug abusers. In 2017, two out of five abusers arrested were new abusers. Close to two-thirds, or 64%, of new abusers arrested were under 30 years old. This is very worrying and there are foreign celebrities who glamourise drug use and they falsely advocate drugs as harmless and \"cool\". Our youths must not be fooled.
The Minister earlier mentioned about the Portuguese campaign \"Say no to second-hand syringes\". In Singapore, we have a different campaign. We promote a drug-free life. We advocate a life free from addiction and we encourage our youths to enjoy life to the fullest and make the best of life's opportunities. Be yourself. Hashtag. Be drug-free – these are taglines that are trending here in Singapore. This is the narrative: we reject drugs and we reject the notion that drugs are harmless or \"cool\". They destroy life, health and family; and drug abuse is not a victimless crime.
We have ramped up our preventive drug education efforts in the last year, both on the ground and on social media. Besides school programmes and roadshows, CNB collaborated with education institutions and young local filmmakers to produce a series of videos showing the destructive effect of drugs. Eighteen short films were posted on CNB's Instagram and Facebook with the handle #FilmFriday, racking up close to two million views in total.
To reach out to more youths, CNB also set up a makeshift club called “GURD Club” outside Cathay Cineplex. “GURD Club” featured lights and sounds which simulated the disorientating and distressing effects of drugs. More than 4,300 anti-drug pledges were collected.
Our community is with us in this fight against drugs. Our United Against Drugs Coalition partners include Pastamania and Singapore Post, just to name a few, and they have helped to distribute 50,000 \"DrugFreeSG\" keychains to the public during our Anti-Drug Abuse Campaign last year. Online retailer Reebonz distributed 5,000 anti-drug message cards in their parcels during Christmas last year.
Ms Rahayu Mahzam spoke about engaging the community, especially the Malay Muslim community. Mr Chairman, please allow me to speak in Malay on this.
(In Malay): [Please refer to Vernacular Speech.] The good news is that we received strong support from the Malay/Muslim community in various efforts to combat the drug menace. Last April, six Malay/Muslim organisations led by the Singapore Islamic Scholars and Religious Teachers Association (PERGAS) launched a campaign called Drugs are Forbidden in Islam. This was an initiative by the community leaders in order to increase awareness about Islam’s prohibition on drugs.
Over 250 shops supported this effort. These include 50 barber shops that have a reach of 10,000 customers per week. These \"big brother barbers\" and \"barber uncles\" are helping to spread the anti-drug message by displaying stickers stating \"Drugs are Forbidden in Islam\" at their shops’ entrances and mirrors.
The results are encouraging. Last month, I had a haircut in Woodlands North Plaza. The barber, in fact, asked for more stickers from the Drugs Are Forbidden in Islam campaign. So, I asked him, why? He replied, many of his customers saw the sticker and asked if they can have the sticker for themselves. This is an encouraging development.
About 200 motorcycle enthusiasts also helped to mobilise their network to spread the message of “Drugs Are Forbidden in Islam” to places frequented by youths and hawker-centres around Singapore. I joined their public outreach efforts from Bedok to Arab Street, then we stopped by Bukit Batok, then to Jurong and onwards to Woodlands and many other places to spread awareness about the drug menace. This is certainly a true community effort – an effort by youths for youths – a truly noble effort. I salute their willingness to help out.
The riders include Mr Ramle Ismail and also Mr Azri Zulfarhan Kamsin, a 30-year-old Institute of Technical Education (ITE) lecturer. They deployed the motorcycle group networks to reach out to youths every month, by going to youth hangouts and eating establishments.
Apart from them, a group of Malay/Muslim undergraduates led by the Malay Language Society from the National University of Singapore (NUS) also chipped in to help out in anti-drug efforts. All these are wonderful developments.
This is our pledge: we will continue to strongly support the community’s efforts in the \"Drugs Are Forbidden in Islam\" campaign. We will continue to work closely with Malay/Muslim organisations, like Jamiyah, Pertapis, the Association of Muslim Professionals (AMP), Muhammadiyah, and the Singapore Muslim Women’s Association, in order to enhance efforts to free our community from prohibited drugs.
We are truly determined to ensure that our children, whom we love, are protected from the drug menace. We dream of a community that is free from prohibited drugs that destroy our youths. I am confident that, when we keep working hand in hand, we will surely achieve this dream.
(In English): Let me now turn to the second area of focus: supporting the rehabilitation and reintegration of offenders.
Mr Christopher de Souza asked if MHA can consider quashing criminal records of drug offenders who stay free from drugs for three to four years to facilitate their reintegration into society. Today, drug offenders who are placed on programmes, such as community rehabilitation centre and drug rehabilitation centre, will not receive criminal records. We will consider how else we can support the reintegration of drug offenders.
Mr Louis Ng spoke about the importance of programmes in prison, and family and social support. He asked if SPS will be extending family programmes to more inmates. SPS works with community partners, like Focus on the Family, The Salvation Army and Singapore Children's Society, to conduct bonding programmes for inmates and their families. We have structured family programmes run by agencies, such as Fei Yue Community Services and Lakeside Family Services, to strengthen family relationships. More than 4,000 inmates benefited from this last year. SPS aims to extend family programmes to more inmates.
Another factor that can reduce re-offending is social support. SPS has established a Befriending Programme for trained volunteers to befriend inmates and support them upon release. Since 2010, over 900 inmates have benefited from this.
Mr Louis Ng asked if SPS would consider having more programmes featuring ex-offenders. We agree that sharing by ex-offenders can be very impactful. SPS collaborates with community partners to engage ex-offenders to give monthly motivational talks. In addition to face-to-face talks, the talks are also uploaded on shared tablets which are being piloted for inmates to engage in self-learning.
Employment is another key in breaking the offending cycle. Mr Gan Thiam Poh and Mr Edwin Tong asked for an update on plans to enhance the employability of ex-offenders. SCORE provides skills training, job placement, job coaching and job retention support to help ex-offenders reintegrate into the workforce. Over 5,500 employers have supported SCORE. With their support, 97% of inmates who were referred to SCORE last year secured a job before their release. This year, SCORE will be launching several initiatives to enhance the employability of inmates.
Firstly, SCORE will introduce a job profiling tool to assess and coach inmates more effectively. Secondly, SCORE will extend job retention support from six to 12 months. In other words, inmates can have a job coach for a year after their release. Thirdly, SCORE will offer WSQ Advanced Training under the WSQ Culinary Skills framework. This will equip inmates with vocational skills in demand by potential food and beverage (F&B) employers. And we will explore having WSQ Advanced Training in other sectors.
Mr Chairman, supporting offenders in their rehabilitation journey is not easy. For some, it takes more than one attempt. We are with them each step of the way. I first met Lina after her release from prison in 2016. She had found a new job through SCORE and I thought she was coping well. But months later, I met her again when I visited our Prison School for a National Youth Achievement Award Ceremony. Lina had gone back to drugs. She saw me and she said, \"I am sorry, I have let you down.\" I said to her, “We have not given up on you.”
And that, Mr Chairman, is also what our officers do. We do not give up. We are tough on drugs and crime. But we also believe very strongly in rehabilitating and reintegrating inmates. Our Prison School has, at its entrance, a lighthouse mural. This symbolises our efforts to shine light towards a bright path, a path that leads the way from the darkness of drugs, a path that guides those who have strayed, to a fulfilling life towards a brighter future.
Keeping Singapore safe and secure is a whole-of-Singapore effort. From our Home Team officers to our community partners, volunteers and citizens, each of us plays an important part in making Singapore our Safe and Secure Home.
The Chairman: Dr Tan Wu Meng.
Dr Tan Wu Meng: Chairman, I have a clarification to ask of the Second Minister who spoke about Home Team transformation. We have a manpower-lean environment and an ageing population which means that the SCDF emergency call numbers are going to continue to rise. So, I was wondering how will MHA and the Home Team work to address this, please.
Mrs Josephine Teo: Chairman, in terms of emergency calls, SCDF now handles about 183,000 calls a year. That translates to 500 calls a day and about one every three minutes. And based on SCDF's projections, the number of emergency services calls will double by around 2030. We will have to find ways to cope.
It is actually two things. One, we will have to grow our fleet of emergency ambulances, but we also have to make better use of our limited resources. What that means is that we will have to introduce the tiering of our responses, according to the severity of the cases. The severe cases that are life-threatening, like you have a cardiac arrest or a loss of consciousness, those are of the highest priority. Because in a cardiac arrest – Dr Tan Wu Meng would know this – another minute of delay and you would have about 7% to 10% reduction in probability of survival. So, we need to give it the highest priority.
But not every 995 call is a life-threatening emergency. In fact, about 10% are false alarms. As incredible as it may sound, we have had people called us for constipation. If that translates to an average of two non-emergency calls every hour, and someone calls in and you have a cardiac arrest but the SCDF resources are tied up, then we will be in serious trouble.
So, we have to prioritise and the target time to respond to different types of calls will not be the same. But unless we do so, no amount of resources will be enough to make sure that the critical cases are always attended to first.
The Chairman: Ms Rahayu Mahzam.
Ms Rahayu Mahzam: Chairman, I have two questions. One is for the Second Minister. I just want to clarify on the effectiveness of SGSecure. Has SGSecure been effective in increasing awareness and also preparedness of Singaporeans?
My second clarification is to the Parliamentary Secretary. I just want to check. It has to do with the drug issue, not a new issue. We surely have experience and some data. I am just wondering if the Ministry conducts studies and also perhaps use behavioural insights to inform it and to help it in its preventive drug outreach.
Mrs Josephine Teo: Mr Chairman, the National Security Awareness survey that was conducted in 2017 may provide some answers that are useful to Ms Rahayu Mahzam. When they were asked if they believed that Singapore is a target for terrorist attacks, 59% agreed or strongly agreed. When asked \"Which are the top three potential situations they thought the Government should focus emergency preparedness training on?\" 77% said terrorist attacks. But when they were asked if they believed they were well-prepared to handle a terrorist attack if it were to occur in Singapore, only 30% said yes.
The Police have also been receiving reports from members of the public on suspicious sightings, and these came through 999 calls as well as the SGSecure app which has a million downloads. And what do all these tell us? I think they tell us that the awareness level is high, but it can be even higher. As for preparedness, it is still a long way to go. That is why we have to press on with the programmes at the community level and also at the workplaces.
Mr Amrin Amin: On the question by the Member on behavioural insights, the answer is yes. Our efforts to combat drug abuse are shaped by insights gleaned from in-depth studies of youth perception of drug-related issues.
The Minister mentioned about the Youth Perception Survey conducted by the National Council Against Drug Abuse (NCADA). In this survey, it was found that youths displayed a more liberal attitude towards drugs, compared to two years ago, with the majority citing social media as their source of information on drugs. And, hence, we have ramped up our social media presence against drugs.
The survey also found that parental influence was key in deterring drug abuse. Over 92% of secondary school and junior college respondents whom we spoke with, said that their parents played a very important part and they spoke to their parents when they have questions about drugs.
As a result, we have introduced an information handbook for parents and we are constantly reviewing or pursuing research efforts to see how else we can better reach out to our youths.
The Chairman: Assoc Prof Daniel Goh.
Assoc Prof Daniel Goh Pei Siong: Chairman, this clarification is for the Second Minister. It is regarding physical and online harassment. In physical harassment, a lot of times it is the family members who report the harassment, and the Police investigate because the harassment will affect the property of the family directly. The borrower will be on the run and he is unable to report the harassment himself.
For social media, can the family members do the reporting and would the Police therefore investigate based on their reporting? At the same time, it will be too much to ask the Police to do the clean up. The family members in the physical harassment case would ask the Town Council to clean up the damage to the common property. But in the case of the social media kind of harassment, do the Police have the power to step in and ask the social media business to take down fake identities and fake sites, for example, basically to classify these as cybercrimes to stop the debasement?
Mrs Josephine Teo: A short answer to the Member's question is that as the criminals' tactics evolve so, too, must the Police's repertoire of tools. What I can share with the Member is that the Police are working on it and it will investigate all valid cases of reports, whether they come from the victims themselves or the families of the victims.
The Chairman: Mr Louis Ng.
Mr Louis Ng Kok Kwang: Sir, the Parliamentary Secretary mentioned that SPS will be extending family bonding programmes. Can I check specifically if it will be extending the programme where they can have visits when they are not separated by glass panels from their families?
Secondly, for the mentorship session with ex-offenders, can I check how regular is this and whether it is open to all inmates? And for the initial incarceration phase, can I just confirm that programmes are offered to inmates during this first to three months when they are incarcerated?
Lastly, I just want to share that public servants I have spoken to are very appreciative of the Parliamentary Secretary's efforts and how hands on he is at the Prisons.
Mr Amrin Amin: I thank the Member for the question. On the first point about family programmes, not all family programmes are unsupervised or free in the sense that they do not have barriers. It varies. We have had some programmes recently, there was a Children's Day event, where the families can get together and meet and talk. But not all programmes are like that and we work with various family centres to provide the family structured programmes.
On the second question on whether the talks by ex-offenders are offered during the initial phases, the initial phases have got a different set of programmes. SPS focuses on getting the inmates used to prison life. And so, during that stage of orientation, a different set of programme is being offered to them. SPS collaborates with various community partners to engage ex-offenders and we will endeavour to make it a monthly motivational talk. And we will have more programmes that are available for inmates across the different incarceration periods.
The Chairman: Would the Member wish to withdraw the amendment?
Mr Christopher de Souza: Sir, many unsung heroes wear blue. Thank you to the Home Team led by Minister K Shanmugam, Second Minister Mrs Josephine Teo and Parliamentary Secretary Mr Amrin Amin for keeping us safe. And, of course, Deputy Prime Minister Teo Chee Hean. Sir, I beg to withdraw my amendment for Head P.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $5,341,251,900 for Head P ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $1,134,320,700 for Head P ordered to stand part of the Development Estimates. (proc text)]
The Chairman: It is probably appropriate to take a break now.
The Chairman: Order. I propose to take a break now.
[(proc text) Thereupon Mr Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]
Mr Speaker: Order. I suspend the Sitting and will take the Chair at 3.25 pm.
Sitting accordingly suspended
at 3.02 pm until 3.25 pm.
Sitting resumed at 3.25 pm
[Mr Speaker in the Chair]
[(proc text) Debate in Committee of Supply resumed. (proc text)]
[Mr Speaker in the Chair]
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The Chairman: Head R, Ministry of Law. Mr Christopher de Souza, could you take your two cuts together, please?
Mr Christopher de Souza (Holland-Bukit Timah): Mr Chairman, Sir, I beg to move, \"That the total sum to be allocated for Head R of the Estimates be reduced by $100.\"
The Ministry of Law (MinLaw) has strategically positioned Singapore to be a legal hub, building on the foundation of the rule of law.
At this time, ASEAN presents good opportunities to provide an array of legal services. Legal services in the Asia Pacific region are projected to grow at 5.5% per year between 2014 and 2019, outpacing the annual global rate of 3.3%. China's One Belt One Road Initiative, Thailand's East Economic Corridor and other infrastructure projects also pose great opportunity in the region. The new initiative called \"Lawyers Go Global\" seeks to support positioning Singapore lawyers with the competitive edge through overseas trips, training, branding and marketing. This is especially important for small and medium-sized enterprises (SMEs) which have valuable niche expertise to contribute but may lack the resources to do so.
Additionally, \"many multinational corporations (MNCs) are based in Singapore and use Singapore lawyers for their regional transactions.\" In fact, Singapore is the top Asian location for MNCs to set up regional headquarters, with about 46%, compared to 37% in Hong Kong. This disparity, when it comes to technology MNCs, is even more pronounced, with Singapore accounting for 59% and only 18% for Hong Kong.
One aspect of being a legal hub is being a dispute resolution hub through offering of the whole suite of dispute resolution mechanisms. The reputation the Singapore International Arbitration Centre (SIAC) has as an efficient and impartial dispute resolution platform has strengthened Singapore's reputation as a dispute resolution hub, servicing the region and even beyond the region. I should now declare, Mr Chairman, that I am a partner in a firm that practises arbitration.
SIAC has also been monitoring and spearheading developments in the area of arbitration. For example, in January last year, in recognition of the different interests that may arise in international arbitration disputes, Singapore was the first major arbitration centre to offer specialised rules for international arbitration, on top of the more general rules for commercial arbitration.
The Singapore International Commercial Court (SICC), as Bloomberg described it, \"gives global investors in South and Southeast Asia a judicial forum with international legal sophistication that can rival any in the world.\" Its unique procedure is also specially adapted for complex commercial cases.
So that Singapore may continue to expand as a legal hub, what further measures will MinLaw roll out to make the Singapore firms and Singapore-based lawyers relevant to the growing opportunities in ASEAN, Asia and the world?
Sir, Budget 2018 announced that an Infrastructure Office will be set up to draw together local and international firms to develop, finance and execute infrastructure projects in the region. Also involved are the Monetary Authority of Singapore (MAS) and Enterprise Singapore (ESG). Would MinLaw please elaborate on the purpose, rationale and thinking behind the Office and how Singapore could benefit from this initiative?
[(proc text) Question proposed. (proc text)]
Mr Patrick Tay Teck Guan (West Coast): Following from the recommendations of the Committee on the Future Economy (CFE) as well as the Industry Transformation Map (ITM) for the professional services sector, what are MinLaw's plans to drive the implementation of the plans and how are we steering ourselves to position Singapore's legal services sector for the future?
I have three suggestions on areas for MinLaw to strengthen. First, strengthen Singapore as a hub for growth practice areas through targeted strategic marketing and communications. Second, strengthen support to both law firms and legal practitioners in their journey to embrace digital disruption, harness technology and regionalise. In particular, extra support should be given to small practices, including sole proprietorships, and their staff in their bid to transform. Third, strengthen the inhouse counsel community as they are a growing group wanting to further build and enhance their professionalism, competencies and standards, continuing education and career progression. They will, therefore, require further support from MinLaw in their drive towards this end.
I am aware that Singapore Corporate Counsel Association representing the inhouse counsel in Singapore has embarked on and launched their competencies and standards. I urge MinLaw to support and endorse these standards, to carry this forward and across the entire community.
Ms Rahayu Mahzam (Jurong): Sir, I am a practising lawyer. I was happy to note that the legal sector has been involved in the industry transformation exercise and the CFE Legal and Accounting Working Group was set up to look into the future growth of the legal and accounting sectors. It has been almost a year since the Working Group made its recommendations. What have been the developments and achievements following the recommendations?
In particular, I noted many meaningful initiatives have been launched, including TechStart by the Law Society of Singapore and the Future of Law Innovation Programme (FLIP). How many small and medium-sized law practices have been engaged through these initiatives? What has been the impact on the small and medium-sized law practices so far?
There was news in the United States (US) about how artificial intelligence (AI) has beaten some top lawyers in reviewing contracts more accurately. Their contract reviewing algorithm was created by a legal AI platform LawGeex with teams based in New York and Tel Aviv. Researchers found that the AI was 10% more accurate than humans in spotting key legal issues with business contracts – an everyday task for most lawyers.
I think lawyers should be worried. Technology is clearly disrupting the legal sector. At the same time, the Singapore Bar is steadily growing with more than 5,000 qualified lawyers currently in practice and with the Courts and the Ministry enhancing various services to the public, including enhancement of pro bono schemes and reforms in the Family Justice system as well as placing Singapore as an international legal hub.
Against this backdrop, how will the Ministry support Singapore lawyers and Singapore law practices, especially the small and medium-sized law practices, to be ready for the future?
The Chairman: Mr Christopher de Souza, please take your four cuts together.
Mr Christopher de Souza: Sir, the Smart Nation drive is Singapore's vision to be an economically competitive global city and a liveable home. There is much economic and social advantage to garner from it, including individuals' convenience, accessibility, enterprise, efficiency through innovation, resource utilisation and allocation.
Society benefits, too, through creating opportunities and finding new ways to generate value. To this end, how is MinLaw supporting this effort through the enacting of a supportive legal regulatory framework, or through the day-to-day operations of the various agencies or bodies under its purview?
Innovation, if harnessed and promoted, can be a key driver of future economic growth. This is especially so as Singapore transitions into an innovation-led economy. As MinLaw seeks to develop Singapore as an intellectual property (IP) hub, how does it support businesses to develop strategies and expertise to realise the full value of IP? Importantly, how do MinLaw and the Intellectual Property Office of Singapore (IPOS) continue to ensure that IP is well protected in Singapore, and that Singapore retains its reputation as a jurisdiction with good IP protection? I should also declare that I am a legal practitioner who also practice IP law.
The rule of law has been called the \"bedrock on which our society was founded and on which it has thrived.\" An accessible court of law is one of the eight non-exhaustive principles which jurist Joseph Raz set out as flowing from the basic concept of the rule of law. He says, \"Given the central position of the courts in ensuring the rule of law… it is obvious that their accessibility is of paramount importance. Long delays, excessive costs may effectively turn the most enlightened law to a dead letter and frustrate one's ability effectively to guide oneself by the law.\" Access to justice is important for the justice in a rule of law society. Justice cannot be exclusive to the well-educated who can understand and navigate their way through our legal system or the rich who are able to hire lawyers.
Therefore, what reforms does MinLaw envision to improve our criminal, civil and family justice systems, so as to ensure the rule of law and access to justice remain in Singapore?
There is a need, Sir, to enforce tough laws to deter highly harmful crimes, such as drug trafficking. Historically, capital offences were the last category of cases in Singapore to be tried by jury and, later, by two trial judges. They were required to arrive at a unanimous decision, otherwise the accused would be convicted for a lesser offence. As triers of fact, trial judges have an important role in deciding questions of fact, which the appellate Court seldom disturbs.
In conclusion, therefore, would MinLaw be open to studying whether it would be beneficial for the criminal justice system as a whole – that is, the Defence, Prosecution, as well as the accused person facing capital punishment – to have three High Court Judges sit in trials involving a capital charge?
Mr Patrick Tay Teck Guan: I have spoken on this before and I am raising this again to MinLaw. I hope MinLaw will seriously look into reviewing the jurisdiction of the Small Claims Tribunal (SCT) so that more people can have economical and expedient orders in judgment for their contractual claims.
In particular, I know that many professional freelancers who are on a contract for service use the SCT when they are not paid for their work. Raising of the claim limits will be a boon for claimants and freelance workers alike.
Ms Sylvia Lim (Aljunied): Sir, the rationale for extradition arrangements is long-standing. Offenders who manage to leave the countries where the offences were committed should not escape justice. At the same time, countries that do not have extradition arrangements with others risk becoming magnets for fugitives, which will affect their own security and reputation.
Understandably, one cannot rush into concluding extradition agreements. According to the Government, besides the need for a mutual desire for extradition arrangements, the compatibility of the two legal systems is another consideration.
In September 2016, Senior Minister of State Ms Indranee Rajah told the House that as far as the Association of Southeast Asian Nations (ASEAN) was concerned, there was a model ASEAN Extradition Treaty being worked on, which would function as a sort of template to enable ASEAN members to enter bilateral arrangements. While I can understand that ASEAN member states overall have very different legal systems, does this mean that there is no plan or desire for an ASEAN-wide mutual recognition of arrest warrants?
One only needs to look at the case involving David Roach to illustrate the ASEAN challenge. Roach was suspected of committing a bank robbery in Singapore in July 2016, one-and-a-half years ago. He escaped to our ASEAN neighbour, Thailand, was arrested and convicted of other offences under Thai law and is only now being extradited from London to Singapore because he was being deported from Thailand to his home country, Canada, via London. With the move towards greater ASEAN integration, the fact that such suspects can go to a fellow ASEAN country to escape justice does not seem acceptable.
On a more general level, does the Government plan to increase the number of countries which Singapore has extradition agreements with? Currently, Singapore has arrangements with 40 declared Commonwealth countries, as well as bilateral agreements with the US, Germany and Hong Kong, which makes only 43 out of nearly 200 countries. Does the Government find it an acceptable coverage?
Asst Prof Mahdev Mohan (Nominated Member): Mr Chairman, international law has been described as a shield for Singapore as a small island-state as well as the occasional sword as well. Could the Ministry update us on our current interstate international law disputes and if public international law remains exclusively important for Singapore?
We called in the Permanent Court of Arbitration that administered the land dispute resolution as it is the amicable enforcement of this award that helped to pave the way for us to work with our immediate neighbour on the Kuala Lumpur (KL)-Singapore High Speed Rail Network as well.
In addition to interstate disputes, could we know the Government's position on investor-state dispute settlement, and if the Ministry and the Attorney-General's Chambers (AGC) have taken steps to safeguard our sovereign regulatory space against investors' claims?
How does international trade law, on the other hand, help the Government to respond to announcements of fresh tariffs by the US Government that have been recently announced, but in consultation with the US, and also on negotiations of the next-generation mega regional agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP)?
Do developments with private international law as well present new opportunities for Singapore lawyers or that arise from clients in India or other ASEAN countries, as an example?
Finally, Mr Chairman, are steps being taken by the Ministry and the Singapore Academy of Law to harness the potential of law and technology? Specifically, what may be the role of lawyers and how are lawyers encouraged to play a role in emerging areas of the regional technology space as well as Smart Nation, as we could see from the cuts that were filed yesterday?
Mr Edwin Tong Chun Fai (Marine Parade): Mr Chairman, land is not only a finite but extremely scarce resource in Singapore, as this House has been hearing last week. There are many competing uses of land in Singapore, for industrial, residential, sports, recreation, community, social spaces, each one fulfilling a different but necessary objective. Judicious and thoughtful land use planning is thus required to strike the right balance and optimise our land resources.
With this in mind, could I ask the Minister for an update on the following?
First, what considerations are taken into account when allocating land resources and how are the competing interests properly balanced?
Second, can there be more dual-use facilities, for example, at sports facilities in schools, which can be used on weekends as a dual purpose?
Third, when is the concept plan next expected to be reconsidered and reviewed, particularly in light of the population objectives and other infrastructural needs that we have?
Finally, Mr Chairman, may I ask the Minister to consider a question of local consideration for me where, at Joo Chiat, there are four old blocks of Housing and Development Board (HDB) flats at the junction of East Coast Road and Siglap? The Minister knows very well. They are very quaint, very nice, short low-rise five-storey buildings. They were built in the 1960s and they are standing till today although the residents have been moved out for the Selective En Bloc Redevelopment Scheme (SERS).
May I ask if it is possible to at least retain a part of this old precinct instead of turning it into another commercial and retail space which will just add to the congestion and also the traffic woes that I already face at Siglap? It would help a lot if we could have it turned into community spaces.
Mr Murali Pillai (Bukit Batok): Sir, the estate administration process for a person dying intestate, meaning without a will, has been the same for a long time.
The process starts with an application to the Court by persons who are willing to administer the estate. This is commonly done by lawyers as it is not easy for a lay person to draft such applications. The Court would then consider the application and appoint these persons as administrators. Thereafter, the administrators would have to distribute the estate in accordance with the order set out in the Intestate Succession Act. The distribution would generally be to surviving spouses, the deceased's children, the deceased's parents and other family members.
The main focus of the Court in such cases is to appoint suitable persons as administrators and identify the beneficiaries of the estate of the deceased.
Presently, the Public Trustee may directly administer the estate of deceased persons where the value of the estate does not exceed $50,000, without going to Court. This is a big relief as, otherwise, the family members of the deceased would be saddled with costs.
I believe there is a case for further simplifying the procedure, especially for straightforward cases involving deceased persons dying intestate and leaving behind spouses and/or children.
Through access to data and data analytics, the Government should be in a position to verify and ascertain the identity of the survivors and their relationship with the deceased without the need for the survivors to go to Court and prove this fact. There is, therefore, an opportunity to considerably shorten the administration process without invoking the Court route, which involves time and money.
This is done in Japan through the family registration system known as Koseki, which I referred to in last year’s COS debates. In Japan, estate administration does not involve the courts and is done expeditiously.
Mr Lim Biow Chuan (Mountbatten): Sir, over the past year, I received a few complaints from residents who face difficulties with their neighbours. The issue is not just a simple dispute between two neighbours or about an unreasonable neighbour. The problem seems to centre on the mental state of a difficult neighbour who behaves irrationally.
In one of the complaints which I received, the neighbour asked for help regarding a neighbour who rants and uses vulgar language or abusive language on every other resident on the same floor. In another case, it was about a neighbour who used a broom stick and banged incessantly on the door of yet another person. In a third case, it was a neighbour who hoards rubbish, not just filling up her entire flat, but also in the common corridor. This creates a hazard to other neighbours.
The recent case about a neighbour at Block 55 Toa Payoh Lorong 5, reported in the news, who threw corrosive liquid or faeces on the walls is a classic case of one person on that floor terrorising the other neighbours around her.
There are other media reports which describe other extreme cases of HDB neighbours who make HDB living a nightmare, for example, in Hougang, the neighbour who flung faeces or dung. In Yishun, a women kept throwing things like toilet paper, sanitary pads, urine outside the door of another neighbour.
The question is: what can the authorities do to help the innocent citizens who are adversely affected by the conduct of a mentally unstable person?
The Community Disputes Resolution Tribunal was set up in March 2015 to hear cases involving intractable disputes between neighbours after all efforts, including community mediation, have been exhausted. According to the Ministry of Culture, Community and Youth (MCCY) website, about 79 cases have been heard by the Tribunal as of July 2016.
However, this Tribunal is only able to deal with disputes involving neighbours living within the same building or within 100 metres of each other, and where there has been some form of unreasonable interference by the neighbour.
How effective is this Tribunal in dealing with people who have mental issues and who are not rational? In my opinion, residents who have mental issues require professional treatment, and not just a Tribunal Order. They may not have mental capacity as to whether they are behaving unreasonably. Would these people not simply ignore any order made by the Tribunal?
I am sympathetic to families who have to deal with relatives with mental disorder. I accept that it is challenging to have such a relative with mental issues. However, I am even more sympathetic to the other residents who have to live daily with a neighbour who has a mental issue and is abusive. What is the recourse available to these residents? Or do they have to live with the antics of a mentally deranged person?
May I ask the Minister whether the Community Disputes Resolution Tribunal is equipped to deal with people with mental issues? If it is within their jurisdiction, can the Tribunal be empowered to issue mandatory treatment orders against any person found to be mentally unstable?
This will ensure that any person in need of medical help would be able to find such help for their mental issue and be given regular medication to manage their symptoms. This will also provide some form of relief to the other citizens who have to live with a neighbour who is irrational.
Of all the cases dealt with by the Tribunal, does the Ministry track the outcome after the Order is made? How does the Tribunal ensure that quarrelling parties really keep the peace?
Mr Chen Show Mao (Aljunied): Sir, the Legal Aid Bureau (LAB) currently provides legal aid to needy Singaporeans, roughly 10,000 cases a year since I have been a Member of Parliament (MP), if you include legal advice, legal assistance to draft documents, and legal aid in representation in civil proceedings.
In order to qualify for legal aid, Singaporeans will need to pass two tests: the means test to show that they are needy; and the merits test to show that they have a good claim. It is not easy to meet both requirements, and we have all met Singaporeans who applied for, but were found ineligible for legal aid. However, even needy Singaporeans with good claims, who qualify for legal aid from LAB, may not be able to press their claims with LAB's assistance in the following circumstances.
In many standard form contracts that Singaporeans enter into, such as insurance policies, there are contractual requirements that the parties go to arbitration in the event of a dispute. They must go to arbitration. No legal proceedings. There are many good reasons why an insurance company that drafts the policy would want such an arbitration clause, but one effect of such a clause is that it may keep a needy Singaporean from pressing a meritorious claim in the event of a dispute, since legal aid currently does not cover the cost of arbitration proceedings.
I would like to ask that the Minister look into extending aid to eligible recipients, namely, Singaporeans who have passed the means test and the merits test for legal aid, to help them cover the cost of arbitration proceedings, to which they have been mandatorily directed by arbitration clauses in standardised contracts used in large volume.
Dr Tan Wu Meng (Jurong): Chairman, in a fair and just society, justice must be accessible to all, including Singaporeans who have less. Some have less resources. Some are less well-informed or less able to put their case across, or even to realise there is a case that could be put across. Some are less aware of how to seek help. Some are unaware of the difference between civil and criminal proceedings. Some are not aware at all.
I have met Clementi residents at my Meet-the-People Sessions (MPS) and on home visits. Some were worried about the means test for legal aid. Some were also worried about finding their way around the system, finding out how to seek help.
Does the Ministry have any plans to revise the means test threshold for legal aid, so as to cover a similar proportion of Singaporeans, even though average incomes are rising over time?
Separately, can the Ministry help enhance education of the public so that people are more aware of the different ways to find help in different circumstances? Has there been any study by MinLaw on how existing processes can be simplified further so that the complexity of finding help does not become an additional barrier for people who want to navigate their way to assistance?
Sir, when the search for help becomes complicated, it has a regressive effect – a regressive on the less literate, on the less mobile, on those less able to Google or search for help online. We have to ensure that justice is always equally accessible, including to fellow Singaporeans with less.
Mr Louis Ng Kok Kwang (Nee Soon): Sir, last year, I asked whether some form of discretion can be given to the Director of Legal Aid when granting legal aid. Senior Minister of State Indranee Rajah replied that they will review and update the means test and qualifying criteria to ensure access to justice for those of limited means.
In 2017, 92% of applications passed the means test, while 87% passed the merits test. While it is heartening to note that a large majority is granted legal aid, there may, nevertheless, be cases that fall through the gaps. It was stated that the review would include considering granting discretion to the Director of Legal Aid for exceptional cases that do not pass the means and merits test. Can MinLaw provide an update on this review?
Further, how will MinLaw ensure that persons of limited means continue to have access to civil and criminal legal aid?
The Chairman: Minister Shanmugam.
The Minister for Law (Mr K Shanmugam): Mr Chairman, I thank the Members who spoke. I will start with an overview of the legal reforms in our civil, family and criminal justice systems, which Mr Christopher de Souza spoke about.
In the area of civil justice, my Ministry has been working closely with the Judiciary, legal practitioners. The aim is to keep legal costs affordable and to reduce the complexity of civil proceedings. We are also studying measures to strengthen the enforcement of civil judgments. Public consultation is likely to take place later this year.
Mr Patrick Tay asked if we will be raising claims limits in SCT. The answer is, yes, we will be. Amendments will be introduced this year. It will allow claims of a higher value, and we hope it will allow claims to be resolved quickly and cost-effectively at SCT.
On family justice, Members know that in 2014, we made changes. The reforms brought about several positive developments, including providing a child- and family-friendly approach, where the Courts look at what is in the interest of the children: how best to deal with it, and how to try and move on with as little acrimony as possible.
To build on these positive reforms, my Ministry has set up a committee with the Ministry of Social and Family Development (MSF) as well as Family Justice Courts. We have asked them to review and further enhance the family justice system. The report will be out later this year, and we will act on it.
On criminal justice, I have said earlier during the MHA COS debate that we want a progressive, balanced and modern criminal justice system.
If Members look at it over the years, there have been a series of reforms, each building on the other: (a) the pre-trial disclosure regime in 2010; (b) the community-based sentences (CBS) which were also introduced in 2010; (c) the changes to the Evidence Act in 2012; and (d) in 2015 – a fairly significant move for the Government – the Government funding legal representation of accused persons through the Criminal Legal Aid Scheme.
And now, comprehensive amendments to the Criminal Procedure Code (CPC) and the Evidence Act have been introduced in Parliament earlier this week.
Mr Christopher de Souza asked whether we should have three High Court Judges to sit in trials for capital cases. We have not seen a need to review this, but it does not mean no. Members will know that since 2012, if a person is sentenced to death and chooses not to appeal, a confirmation hearing must still be held by the Court of Appeal. That ensures that the imposition of the capital punishment is always reviewed by the apex Court of at least three judges. So, there is already a two-level process with at least three Judges of Appeal looking at the matter. But we will review the point made by Mr Christopher de Souza.
I will now speak on our commitments towards advancing the international rule of law. Asst Prof Mohan spoke about it. We see ourselves as a responsible and effective member of the international community, and a firm believer in an international rules-based legal order. Adherence to the international rule of law is integral to our security and survival. To that end, we have done a number of things, which I think the Ministry of Foreign Affairs (MFA) has spoken about, and which I have spoken about previously. So, we do not need to repeat that.
But we have to continue our engagement with the international community, other states, and our development of international law expertise in relevant emerging issues. We should support think-tanks which are doing research in these areas. Examples are the Asian Business Law Institute and the Centre for International Law, which are supported by us.
We have to actively participate in international law-making at regional and multilateral forums and bring our interests and values to the table. We have done that. People know our crucial role in the United Nations Convention on the Law of the Sea (UNCLOS). We have led multilateral negotiations on online dispute resolution and dispute settlement. Right now, we are playing a very important and key role in the United Nations Commission on International Trade Law (UNCITRAL) Working Group II on Dispute Settlement. Under the chairmanship of a MinLaw Director, we have completed work on both a draft Convention and amended Model Law that will provide for the cross-border enforcement of international commercial settlement agreements resulting from mediation. The Singapore delegation is well-regarded in the international discussions on insolvency, electronic commerce and recognition and enforcement of judgments.
We are committed to peaceful international dispute resolution mechanisms. These are important for a small country like Singapore. We serve as a neutral venue for state-related disputes, which is also enabled through the partnerships we have forged, for example, through the Permanent Court of Arbitration and the International Centre for Settlement of Investment Disputes (ICSID), amongst others. We also actively participate in discussions on possible reform of investor-state dispute settlement mechanisms, so that any future disputes on trade agreements can be fairly and effectively resolved.
Asst Prof Mahdev Mohan asked if international trade law will help the Government respond to announcements of fresh tariffs in consultation with the US, and also in our negotiations of the next-generation regional Free Trade Agreements (FTAs), large FTAs.
Well, primarily, how we handle these issues will have to be guided by: (a) what is in our primary, economic as well as strategic interests; and (b) what is the framework of international law, including any applicable treaties. That will guide us in taking what we consider to be principled approaches when dealing and negotiating with our trading partners. And, of course, in these things, size matters as well.
The second query that Asst Prof Mahdev Mohan had was, \"Do developments in private international law present new opportunities for our lawyers vis-à-vis clients in India and the ASEAN countries?\" The short answer is yes, they do. That is why we participate actively in international efforts to harmonise private international law and to promote the adoption of Singapore legal principles. Standards, but also any sort of civilised set of standards, in this area, would be welcomed, and it will help us. So, that will give our lawyers more opportunities because our commercial law principles are consistent and consonant with international law standards in most advanced jurisdictions.
I will now deal with Mr Christopher de Souza's question on ensuring Singapore law firms and Singapore-based lawyers remain relevant in the region.
Developing Singapore as a dispute resolution hub is, in fact, one of our key strategies in growing our legal industry. I have said that that is a role for the Government but there is also a very critical role for our lawyers. The Government can provide the infrastructure, the framework, the training through the law schools. But ultimately, the lawyers must also take part in it. And now the Government is even putting money on the table for law firms to go regional.
Senior Minister of State Indranee Rajah will touch on some of the other strategies, but I will touch on our dispute resolution services.
We aim to provide a full suite of such services that will create more work for Singapore law practices and Singapore-based lawyers within Singapore. We have seen, in fact, a tremendous growth in caseload numbers across all our main dispute resolution institutions, such as: (a) SIAC, (b) SIMC, and (c) SICC.
SIAC, for example, saw within 2008 and 2016, in those eight years, a three-fold increase in cases, from 99 to 343. The total sum in disputes for new cases filed in 2016 hit S$17 billion, and 80% of those cases were international in nature. That is a record – S$17 billion.
SIMC had a much later start. It had 22 cases filed in 2017, it now has 42 cases so far, and it was only established three years ago. To promote international commercial mediation, SIMC has also partnered other institutions. For example, in 2017, last year, SIMC signed memorandums of understanding (MOUs) with the Mediation Center of the China Council for the Promotion of International Trade/China Chamber of International Commerce, and the Hangzhou Arbitration Commission. This is to help businesses resolve disputes that may arise in cross-border transactions under China's Belt and Road Initiative. SIMC also signed an MOU with the Japan Association of Arbitrators to help Japan build expertise in international commercial mediation.
So, how do we ensure that we remain a destination of choice for dispute resolution? The starting point is that people must believe and know that there is going to be top-quality legal expertise available here if they come. What the Government can do is to make sure our dispute resolution legislation framework is modern and friendly.
We will continue to make necessary legislative enhancements to make sure that it is at the cutting edge. For example, we recently amended the Supreme Court of Judicature Act. It clarifies that SICC can hear matters relating to international commercial arbitration under the International Arbitration Act. So, it gives the parties who choose Singapore as the seat of arbitration the certainty that they can benefit from the expertise of both local and international judges, who have a wide breadth of knowledge and experience, expertise, and judicial knowledge. All of that can be available from the Singapore Courts. The work itself can only be handled by Singapore-qualified lawyers from Singapore law practices. So, they get an international panel of judges.
We also enacted the Mediation Act in 2017 which strengthens the framework for the enforcement of mediated settlements conducted in Singapore. It codifies certain matters which were previously dealt with under Common Law, such as confidentiality of communications in the context of mediation. It provides for greater certainty and clarity for commercial parties who opt to conduct their mediation in Singapore.
We will continue to strengthen our international dispute resolution facilities and infrastructure. Last year, we announced that we will be expanding Maxwell Chambers. Refurbishment works have started. They are on track to be completed by next year and that will add 120,000 square feet of floor space and it will triple Maxwell Chambers' current size. So, obviously it will allow more cases to be heard. My Ministry will continue to support the development and expansion of our international law capabilities.
Mr Edwin Tong asked about our plans to optimise our limited land resources. Mr Christopher de Souza asked about our support of the Smart Nation drive. The Singapore Land Authority (SLA) has been allowing old state properties with no immediate plans for redevelopment to be innovatively reused. So, that gives the buildings a new lease of life. It unlocks the value for businesses and individuals. A good example is Tanglin Village. It was a former army camp but is now home to a wide range of businesses.
SLA will continue to find opportunities to convert state properties for different uses, in particular, social and community uses. SLA has also opened up previously un-utilised spaces for recreational community use. One example is the Jalan Bukit Merah Viaduct. Under the Viaduct, they have opened it up.
Mr Edwin Tong had a specific question on Joo Chiat's \"iconic\" buildings. I will ask SLA to discuss the matter with the relevant agencies because the policy on this matter is with the Ministry of National Development (MND), so they will have to decide what land use they have planned for and we will see what can be done.
As regards the Smart Nation agenda, SLA is also building up Singapore's geospatial capabilities through what we call GeoWorks. GeoWorks is a collaborative platform. SLA provides the platform for geospatial startups and industry partners. Many of them are SMEs or individuals, and they create business opportunities through the use of location-based technologies. So, we provide the platform, we make it freely available, people jump on into it and create the business value out of it. So, our approach is to enable and support private sector innovation, as part of our Smart Nation efforts.
Mr Chairman, I have covered many different aspects of MinLaw's work. The common framework for this is, of course, advancing the rule of law and making better use of what resources we have, ultimately, to improve the well-being of the people.
The Senior Minister of State will now take the remaining cuts.
The Senior Minister of State for Law (Ms Indranee Rajah): Mr Chairman, I thank the Members who spoke. I will cover three main areas. First, enhancing access to justice. Second, building the legal services sector. Third, extradition.
Advancing access to justice is one of my Ministry's core missions. We regularly monitor the civil and criminal legal aid schemes and will enhance them where necessary to ensure access to justice for those less able to fend for themselves. Singapore was the first in Southeast Asia to enact a legal aid scheme in 1958. Over the past 60 years, LAB had assisted many low-income Singaporeans in civil legal proceedings.
Many improvements have been made over the years. First, we have enhanced LAB’s systems and processes to better serve applicants. LAB has gone completely paperless with a new case management system, increasing efficiency by allowing different officers to work on a single file simultaneously. The new system also saves applicants' time, by allowing them to correspond with LAB and submit relevant documents online. Those who are less IT-savvy, such as the elderly, can continue to correspond with LAB by post or in person. Staff at the MinLaw Services Centre also assist the applicants to complete, submit and print online documents and forms if they require help.
Second, LAB has established a referral protocol to refer applicants who require non-legal assistance to social agencies and Promoting Alternatives to Violence (PAVE), a family violence specialist agency. Likewise, these agencies will refer their clients to LAB for legal assistance where necessary. Such cross-referrals provide better support to the vulnerable and also increases awareness of the aid channels.
In one case, a young lady who had been sexually abused by her father sought help from PAVE. PAVE helped her to find shelter and then referred her to LAB to seek a personal protection order (PPO) against her father. While LAB handled the legal matters, PAVE provided counselling and emotional support. The young lady succeeded in obtaining the PPO with the help of PAVE and LAB.
Dr Tan Wu Meng and Mr Louis Ng asked if we would review our means test, so that more Singaporeans can be helped. We are doing so and will announce details when ready later this year. Even as we seek to help more, our guiding principle is that our system should assist those with meritorious cases but who really cannot afford a lawyer.
Mr Chen Show Mao asked if legal aid can be provided for arbitration. Legal aid is provided in respect of matters which may be litigated in Court, including related alternative dispute resolution (ADR) proceedings. However, we do not provide legal aid for arbitration, as it is a private, consensual dispute resolution process. Typically, arbitration is used for high value commercial dispute resolution, and involves much higher costs, compared to Court litigation.
We must, therefore, be careful about extending legal aid to such cases. Nevertheless, there are various existing avenues for individuals to seek assistance and redress.
(a) LAB can provide legal advice to an applicant on an arbitration clause in his contract and, if there are merits to do so, represent the applicant to challenge the arbitration clause or the arbitration award in the Courts.
(b) Additionally, parties who wish to resolve their dispute by arbitration in a quick and cost-effective manner can consider the Law Society’s arbitration schemes, including its Pro Bono Arbitration Scheme, which adopts streamlined procedures and waives the fees of the sole arbitrator.
I thank Mr Murali Pillai for his suggestions to simplify the process for estate administration. In 2017 and this year, we have been working on reforms to the civil justice system. When completed, we will be able to review the estate administration system in the context of the civil justice reforms.
Mr Lim Biow Chuan asked about neighbourly disputes involving parties with mental disorders. As a starting point, neighbourly disputes are best resolved amicably between parties, or via community mediation. As a last resort, affected residents may consider filing a claim at the Community Disputes Resolution Tribunals. The Tribunals provide a simplified and low-cost avenue for resolving all types of neighbourly disputes. They are equipped to handle cases involving parties with suspected mental health issues. Where appropriate, inhouse psychologists and Court counsellors will, first, conduct a preliminary assessment on the individual, and may, with the person’s consent, refer him to the onsite psychiatrist for a preliminary diagnosis and follow-up plan.
In the usual case, a successful applicant will, in the first instance, obtain an Order from the Tribunal. In the event of non-compliance with the Tribunal’s order, the affected party can apply for a “special direction\" directing the respondent to comply with the disobeyed order. During the application for a special direction, the Tribunal may order any person, for example, a family member of the respondent, to enter into a bond. In making this order, the Tribunal may impose conditions or give directions to that person. One such direction or condition could be to order a person suspected of mental illness for assessment and/or treatment. If this special direction is further breached without reasonable excuse, the respondent is guilty of an offence, and the criminal Court convicting the respondent may make a community order against him. A community order includes a Mandatory Treatment Order.
Not all mental health cases need be dealt with through the Courts. Persons with concerns about neighbours with mental health issues who may require assistance can contact the Agency for Integrated Care (AIC) and its community partners for assistance. If the person is a danger to himself or others by reason of his or her mental disorder, the Police can bring the person to the Institute of Mental Health (IMH) for mental health treatment. The person will be warded if assessed to require management in an in-patient setting.
I will now touch on criminal legal aid. The Criminal Legal Aid Scheme (CLAS) is administered by the Law Society, with support from the Government. CLAS assigns a lawyer to accused persons who have been charged with a crime and who cannot afford to hire a lawyer. Since 2015, the Government has provided close to $6 million to the Law Society Pro Bono Services (LSPBS), enabling CLAS to help almost four times as many applicants in 2017, compared to pre-2015.
CLAS has also worked to improve its processes. The application processing time has been significantly shortened after a direct phone-link between CLAS and Prisons was installed in March 2017. Further improvements include the installation of a direct video-link between the CLAS office in State Courts and Prisons. My Ministry will continue to support and work with the Law Society to improve CLAS, just as we have done with LAB.
The continued success of CLAS is only possible with the strong support from the legal fraternity. The CLAS Fellowship, which is generously sponsored by five law firms since 2015, has enabled lawyers to join LSPBS to exclusively handle criminal legal aid cases. In the past three years, over 20 firms have signed MOUs and taken on over 600 CLAS cases in total. I would like to thank the legal fraternity for their pro bono spirit and strong support for CLAS.
Let me now touch on another important area of MinLaw's work: getting the legal services sector ready for the future economy. The Working Group on Legal and Accounting Services under CFE made several recommendations in this area, which we are in the process of implementing.
Minister Shanmugam has addressed dispute resolution. I will outline our plans to capture opportunities in: (a) restructuring; (b) corporations; (c) IP; and (d) projects and infrastructure.
First: restructuring. We have moved to strengthen Singapore’s position as an international debt restructuring centre for Asia. We amended the Companies Act to provide more flexibility and options for corporate restructuring. Since May 2017, more than 15 restructuring cases have been filed with the Singapore Courts. We hope to encourage greater use of our legal frameworks and professional services, to facilitate more successful local and international restructurings.
Second: corporations. The Ministry of Finance (MOF) and the Accounting and Corporate Regulatory Authority (ACRA), together with my Ministry, have been working on enhancing the legal regime for corporations. In 2017, MOF introduced a new re-domiciliation framework to allow foreign companies to transfer their registration to Singapore. This enables them to pursue substantive economic activities here as Singapore companies, while retaining their corporate history. ACRA has also set up the Institute of Corporate Law Panel, with industry stakeholders, to provide feedback on corporate law reforms. With such feedback, ACRA publishes interpretations of specific legislative provisions, which reduce commercial ambiguity.
Third: IP. We have built a robust infrastructure and a good reputation in IP protection, as Mr Christopher de Souza noted. Our patent office is one of only 20-odd offices in the world that can examine international patent applications under the Patent Cooperation Treaty. We have also established partnerships with more than 30 foreign IP offices to accelerate patent applications filed in their jurisdictions. Last year, we amended the Registered Designs Act and Patents Act, to keep pace with technology changes, and improve IP protection.
IPOS has also taken steps to help businesses realise the full value of their IP. IPOS, with its partners, have designed programmes to train professionals for high value roles in IP management, strategy and valuation. These include the Masters of IP and Innovation Management at the Singapore University of Social Sciences (SUSS), and the Professional Conversion Programme (PCP) for IP Professionals. IPOS' IP Academy has also trained more than 4,000 individuals in areas, such as IP management and commercialisation. In January, IPOS launched the SkillsFuture Study Award for candidates of IP courses.
IPOS also helps businesses develop their IP commercialisation know-how. IPOS’s IP ValueLab provides consultancy services on IP audit, due diligence and strategy, to help businesses secure investments for growth. To date, IP ValueLab has engaged more than 300 local businesses.
Fourth: projects and infrastructure. The Finance Minister announced the setting up of an Infrastructure Office during the Budget Statement. Let me explain the purpose and the thinking behind the Infrastructure Office.
Projections estimate that US$26 trillion may be spent over the next 15 years on infrastructure projects in Asia. Many of such projects are looking for financing, and financers are looking for projects to fund. But the projects are unable to obtain financing due to lack of bankability, usually occasioned by the lack of proper project preparation, project structuring and technical issues.
Singapore is uniquely placed to address these problems. We are a leading financial centre, and Singapore-based banks have provided loans or financial advisory services for an estimated 60% of infrastructure projects in ASEAN.
Commercial banks with project finance teams and project structuring expertise are located in Singapore. Multilateral development banks, such as the World Bank and its sister agencies, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), have also a significant presence in Singapore and offer a critical source of infrastructure finance and project structuring expertise.
We also have accountancy firms with project advisory teams, engineering consultancies, local and international law firms with project financing and infrastructure dispute resolution expertise, and other professional services companies in architecture, engineering and project management.
The Infrastructure Office is intended to be a platform to connect infrastructure stakeholders, enable information exchange on infrastructure opportunities in Asia, facilitate infrastructure investments and financing, and help infrastructure players, including professional services providers, access these opportunities.
My Ministry, through the Professional Services Programme Office (PSPO), will be working with the Infrastructure Office and other agencies, such as ESG, MAS and Economic Development Board (EDB), in this endeavour.
To access these new opportunities, Singapore lawyers and law firms must also embrace the disruptive changes, reinvent themselves and move up the value chain. During a CFE engagement session, I was asked by a Singapore practitioner whether we could protect the wills practice for lawyers. I suggested in reply that rather than focusing purely on wills preparation, which is an area that can be easily templated and commoditised, he could instead expand his practice and offer a comprehensive suite of services related to wealth management to clients, such as estate planning, and trust and asset management − the legal aspects of it. Going into high value-added services would gain him access to a bigger market and higher fees. Of course, he could still continue to do wills as well, as that is part of wealth management.
My Ministry has been implementing the various strategies from the Professional Services ITM, including (a) technology adoption; (b) internationalisation; and (c) capability development.
On technology adoption, raised by Mr Patrick Tay and Ms Rahayu Mahzam, we launched \"Tech Start for Law\" last year to help small and medium-sized Singapore law practices adopt basic technology to increase productivity. The programme covers technology products for practice management, online legal research and online marketing. About 100 Singapore law practices have benefited and adopted over 100 technology solutions.
The \"Lawyers Go Global\" programme was launched in February, together with the Law Society and International Enterprise (IE) Singapore. This will help Singapore law practices internationalise through overseas mission trips to fast-growing regional countries and workshops. The Law Society will also initiate a marketing campaign later this year to raise the profile of Singapore lawyers abroad. The programme will be especially useful for the small and medium-sized law practices.
Last but not least, we are supporting Singaporean lawyers in deepening skills and qualifications, through the SkillsFuture Study Awards. To date, 44 Singaporean lawyers have received the award. PSPO will continue to work with Singapore law practices on training and secondment opportunities.
In relation to the inhouse counsel community, which Mr Patrick Tay spoke about, my Ministry continues to work with EDB to promote Singapore as a location for companies’ regional and global headquarters, including inhouse counsel teams. We encourage the inhouse counsel community to continue raising their standards of practice and are heartened by the Singapore Corporate Counsel Association’s recent ground-up efforts in this regard.
Ultimately, the continued success and relevance of Singapore lawyers and Singapore law practices will also depend on how widely Singapore laws and standards are used in commerce and dispute resolution.
My Ministry is working on the promotion of the international use of Singapore law, standards and frameworks in line with the Working Group recommendations. We strive to incorporate Singapore legal principles and standards at the negotiating table of international platforms, such as ASEAN, the Hague Conference of Private International Law and the UN Commission on International Trade Law. We also work with international organisations to promote greater understanding and use of the Singapore legal system. We will also continue to develop uniquely Singaporean legal solutions to serve the international market. One example is our restructuring regime mentioned earlier.
These initiatives will strengthen Singapore’s global market position, build Singapore’s thought leadership, and prepare our legal sector for the future. However, the private sector, too, must do its part and get their firms and people ready to compete in this fast-changing landscape.
Mr Chairman, may I beg your indulgence to have a few minutes to complete my response, otherwise, I would not be able to respond to Ms Sylvia Lim’s cut on extradition.
The Chairman: You have a few minutes. Please proceed.
Ms Indranee Rajah: Thank you. Let me now address Ms Sylvia Lim's queries. My Ministry is committed to facilitating greater international cooperation to combat transnational crime, in accordance with our domestic laws and international obligations. We are, therefore, open to concluding extradition treaties and arrangements.
Within ASEAN, there is no ASEAN-wide initiative for the mutual recognition of arrest warrants. However, Singapore has special extradition arrangements with Malaysia and Brunei, given our shared common law tradition and close relationship, which allow for the swift surrender of fugitives based on the recognition of arrest warrants. All ASEAN member states, including Singapore, are also members of the International Criminal Police Organization (INTERPOL), which provides a platform for international law enforcement cooperation. At present, Singapore is actively engaged in negotiations for a Model ASEAN extradition treaty, as Ms Sylvia Lim noted. We have achieved significant progress and, like many other ASEAN partners, are hopeful that work on this instrument will be concluded as soon as possible.
As Ms Sylvia Lim acknowledges, our existing extradition network extends to 43 jurisdictions across the globe, including major jurisdictions, such as the US. We have also signed an extradition treaty with Indonesia, which is pending ratification by Indonesia. With regard to expanding our network, it is not just a matter of numbers alone. Negotiating an extradition treaty is not without complexities. As Ms Lim has noted, relevant considerations include whether such an arrangement would be mutually beneficial for Singapore and the other country, and whether any divergence in legal systems and procedures can be rationalised.
Furthermore, extradition is a resource-intensive process. The volume of requests can place a significant burden on our Government agencies and judicial system. More importantly, an extradition arrangement, without adequate protection, carries risks to people in Singapore, including our citizens.
In summary, we are open to more extradition treaties and arrangements but would take a careful and considered approach.
The Chairman: Clarifications, if any? Mr Patrick Tay.
Mr Patrick Tay Teck Guan: I thank Minister Shanmugam for agreeing to my suggestion of raising the SCT claim limits. Can the Minister advise on what the new limits will be, because we know the current limits are $10,000 and $20,000 with mutual consent? Has the Ministry decided on how much the new limits will be?
Mr K Shanmugam: In good time.
The Chairman: Mr Louis Ng.
Mr Louis Ng Kok Kwang: Can I just check with the Senior Minister of State whether discretion can be granted to the Director of Legal Aid when granting legal aid?
Ms Indranee Rajah: That is one of the things that we will consider in our review.
The Chairman: Would the Member wish to withdraw the amendment?
Mr Christopher de Souza: Sir, may I record our thanks to the many diligent officers in MinLaw and in various agencies under MinLaw's purview. I would also like to thank Minister K Shanmugam and Senior Minister of State Indranee Rajah for their insightful replies. With that, Sir, I beg leave to withdraw my amendment for Head R.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $233,470,100 for Head R ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $218,061,100 for Head R ordered to stand part of the Development Estimates. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Committee of Supply – Head V (Ministry of Trade and Industry)","subTitle":null,"sectionType":"OS","content":"Mr Liang Eng Hwa (Holland-Bukit Timah): Mr Chairman, I beg to move, \"That the total sum to be allocated for Head V of the Estimates be reduced by $100\".
During the Budget Debate, Members in the House have reminded us that growing the economy is not an end in itself, but a means for us to build better lives and better opportunities for Singaporeans. I could not agree more. But we also know that ensuring that we always have that means that is continuously growing and yet inclusive is certainly no mean feat.
As the Minister for Finance has said in his Statement, our path ahead will not be easy, especially in light of the major shifts happening around us, such as a changing global economic landscape, the emergence of new technologies and our own demographic.
In a way, we saw it coming, which is why since the start of this decade, we embarked on the road to restructure and transform our economy. In the early phase of restructuring, the Government tightened foreign labour inflow and nudged wages higher for our local workforce and pushed for productivity improvements. It has inevitably caused pain to some businesses although there were also various assistance schemes introduced, such as the Productivity and Innovation Credit (PIC) scheme, and support for skills upgrading to help mitigate the impact and to improve productivity.
If the 2017 small and medium enterprises (SME) Development Survey is any indication, we may have passed the most painful phase of economic restructuring. In the survey finding which was released in November last year, the proportion of SMEs experiencing difficulties with manpower costs fell from its peak of 85% to pre-2012 level of below 72%. Twenty-twelve is the year when foreign labour tightening was introduced. Indeed, many businesses bit the bullet, made the difficult adjustments and changed their business model in response to the tightened labour market environment. The outcomes are encouraging. Wages have risen and we have also seen credible improvement in overall productivity.
Notwithstanding, there will be companies which are still struggling and adjusting, some of which are cyclical in nature. I am glad that this year's Budget continues to extend help to businesses facing near-term challenges with the continuation of assistances like the Wage Credit Scheme (WCS), the Corporate Income Tax (CIT) rebate and the deferment of the increase of foreign workers' levy (FWL) rates for two sectors.
Workers, too, went through the difficult transitions as companies restructured. The continual need to upgrade and convert to new skills has become part and parcel of working life. Last year, the Professional Conversion Programme (PCP) helped more than 3,700 mid-career individuals take up new jobs. We need to do more to help workers facing career transitions and this Budget also strengthened support for workers under the Adapt and Grow Initiative.
Mr Chairman, the next phase of the economic transformation efforts now zero in on fostering pervasive innovation, building deeper capabilities and forging strong partnerships riding on the already launched Industry Transformation Map (ITM) platforms.
Innovation is the way to go for businesses to stay competitive in the future. Singapore is starting from a position of strength as we already have a critical mass of high-tech sectors, a vibrant startup and financing ecosystem, world-renowned universities and research institutions and a strong global pool of research scientists and engineers.
To foster pervasive innovation, especially for the SMEs, the Budget enhanced various schemes supporting companies to innovate across the entire value chain. Among others, existing grants that support the adoption of pre-scoped, off-the-shelf technologies will be streamlined into a single Productivity Solution Grant (PSG) where the Government will provide funding for up to 70% of the qualifying costs. I look forward to hearing more details about the PSG from the Minister later and how this streamlining would improve support for businesses seeking new solutions.
Another new idea from the Budget is the Open Innovation Platform (OIP). To be piloted this year, it is an online crowdsourcing platform set up to help businesses find partners to co-create solutions. Many smaller companies may not have the resources to seek partnerships to co-develop solutions. This platform can facilitate easier collaborative work among SMEs on joint innovation initiatives.
To provide equity funding for cutting-edge tech startups that draw on intellectual property (IP) generated from publicly funded research, this year's Budget announced the setting up of the $100 million National Research Foundation (NRF)-Temasek IP Commercialisation Vehicle. I hope this can help plug the missing link with regard to translating research outcomes into viable commercial opportunities and thereby produce a new breed of innovative global companies in Singapore following the commercialisation of the IPs. I look forward to hearing more details from the Minister as well.
On building deeper capabilities, the Budget signalled the shift away from broad-based measures, such as PIC, to a more targeted and innovation-focused approach. I do agree that in this next phase where we deepen transformation, a more customised and slightly more flexible approach will yield better results.
With the impending merger of Standards, Productivity and Innovation Board (SPRING) Singapore and IE Singapore into Enterprise Singapore, it makes logical sense to streamline the Capability Development Grant (CDG) and Global Company Partnership (GCP) into the new workhorse now known as Enterprise Development Grant (EDG). Can the Minister share how the new integrated EDG can better support companies to deepen capabilities?
Digital capabilities will be the new competitive advantage for businesses. The adoption of digital technologies can transform business processes, improve productivity, and help SMEs export products and services more easily. With digital technology, even the smallest SME can have the opportunity to export its products and services globally, hence, expanding their growth frontiers.
There are good opportunities in the digital space in the region. For example, besides China, the Association of Southeast Asian Nations (ASEAN) can also be a strong potential growth market in e-commerce for companies to explore.
There are already various support schemes for SMEs to adopt digital technologies. The SME Go Digital Programme was launched in 2017 and the Tech Skills Accelerator (TeSA) launched in 2016 are both flagship programmes assisting businesses and individuals to develop digital capabilities.
Clearly, there is significant room for more SMEs to move forward and to use digital technologies to enhance competitiveness and to grow their businesses. Of course, developing digital capabilities does come with investment costs and risks, but not going digital may well be an unviable position soon. It is better to take some risks now, learn the right lessons. If it does not work out, do recognise that this is a continuous journey of upgrading.
With the aim to forge stronger partnerships, this year's Budget also spring cleaned the existing schemes, such as EDB's Partnerships for Capability Transformation (PACT) and SPRING Singapore's PACT, into a single PACT scheme. I would like to ask the Minister how has PACT performed thus far under each of the agencies and how will the integration into a single PACT benefit companies?
Finally, the much talked about ITMs are now the key execution platform to transform the sectors which are identified either as growth clusters or in need of significant productivity upgrades. While we hope that more SMEs can be involved in the ITMs, we should be realistic that in sectors where there is a very large base of SMEs, it is not possible to have everyone on board from Day 1. Here, the companies can also be proactive to come forward, with the trade associations and chambers (TACs) playing the key role of raising awareness and facilitating the deeper involvement of ITMs.
Nevertheless, I would like to seek an update from the Minister on the progress of some of the ITMs that were launched over a year ago, such as the lifestyle cluster ITMs which encompass food services, food manufacturing, retail and hotels. I would like to ask the Minister how is the traction so far.
My last point is about skills and jobs. As the business landscape changes, we need to ensure that skills of our workers remain relevant and our skills training can respond quickly to emerging skills and tech disruptions.
Can I ask how the Government is working with industry and employers to ensure training remains relevant? Also, how is the Government helping the professionals, managers, executives and technicians (PMETs) who have been displaced or who wish to move into growth sectors the Government has identified? Finally, how are we helping our people to acquire deeper knowledge of the regional markets even as we seek opportunities in the region?
[(proc text) Question proposed. (proc text)]
Mr Yee Chia Hsing (Chua Chu Kang): Mr Chairman, the global economy and Singapore economy posted better than expected gross domestic product (GDP) growth rates in 2017, while in 2018, economic growth is expected to be moderate. I would like to ask the Ministry to go into more details on this year's outlook.
Sir, although our GDP expanded by 3.6% last year, the growth seems to be concentrated in some sectors while the rest of the economy lagged behind. As Prime Minister Lee mentioned during Chinese New Year, productivity and economic growth are still mainly concentrated in manufacturing and export-driven sectors. Because of this, the general sentiment on the ground is that many SMEs which are not related to these two sectors are less optimistic and feel as though they are still in a recession, even as we mention that our economy is expanding.
Mr Chairman, I would also like to ask the Ministry on how it can help make our economic growth more broad-based.
The Chairman: Mr Henry Kwek, you can take both cuts, please.
Mr Kwek Hian Chuan Henry (Nee Soon): Thank you, Mr Chairman. My first cut is on riding on rising Asia. Despite the global uncertainties, Asia is cited as a region of high growth. What are the Government's plans to help Singapore companies take advantage of a rising Asia?
Can the Government elaborate on the specific measures that we are doing for key growth markets within Asia, as well as for the various growth sectors?
Can the Government also share about the broad-based measures that we are doing to encourage Singapore companies to internationalise, and for our people to take on international careers within growing Asia? Are there any pressing gaps that our industries and workforce face that must be addressed?
Lastly, can the Government share on the progress made to strengthen our Asia-specific market research firms mentioned in previous Budgets?
Much has been said about ASEAN's potential – youthful demographics, large population, and sizeable headroom for growth. But those can only be achieved if ASEAN member states work together to unlock the potential. At the same time, given ASEAN's dynamism, we have also seen rapid economic improvements in many bright spots within ASEAN, so Singapore cannot take for granted our economic hub status within ASEAN.
As such, Singapore must always work hard to shape the economic architecture of ASEAN, so as to benefit ASEAN and Singapore. And this is especially so, given our responsibility as ASEAN Chair this year. Can the Government share on our efforts to unlock this potential to benefit Singapore and Singaporeans?
Besides positive economic conditions, Singapore companies and citizens must also be ready to seize opportunities within ASEAN. What more is the Government doing to ensure that we have prepared to capture the opportunities created?
Lastly, in my Budget speech, I talked about getting Singaporeans to think ASEAN. I provided five recommendations. I hope the various Government agencies can look into that.
Mr Low Thia Khiang (Aljunied): Chairman, Sir, we have been a keen proponent of the ASEAN Economic Community (AEC). It was during the 13th ASEAN Summit in 2007 when Singapore was last the ASEAN Chair that the blueprint to establish AEC was adopted.
If integrated as a single market and production base, the AEC will become the fourth largest economic bloc in the world, just behind the United States (US), China and the European Union (EU). For Singapore, AEC is not just an aspiration, but also a strategic necessity, to mitigate the geopolitical risks of the region being mired in economic under-development and political instability, and the region becoming divided and caught among the great economies of China, India and the US.
AEC was to be established by end of 2015, but ASEAN failed to achieve one-fifth of the 506 measures and had deferred them for 10 years to 2025.
Singapore is now ASEAN Chair again and we are in a good position to facilitate the economic integration. In January this year, Minister Lim Hng Kiang said Singapore will focus on the digital economy and trade facilitation. This seems to be rather low key, compared to the work that is needed to push forward the already-delayed AEC.
Does the Ministry of Trade and Industry (MTI) have a more concerted plan to develop the AEC while Singapore is ASEAN Chair? What can Singapore do to better integrate the most important sectors in the region, for example, the electronics sector, especially in the context of the other major shifts in the disruption caused by new technologies?
The Chairman: Ms Sun Xueling, you can take your two cuts together.
Ms Sun Xueling (Pasir Ris-Punggol): Mr Chairman, growth in Asian emerging markets as a whole is projected to average 6% from 2015 to 2020. Even though the 6% growth rate may not be high by historical standards, Asia is expected to continue outperforming the rest of the world by a significant margin.
In India, Prime Minister Modi's administration is pressing ahead with reforms aimed at enhancing the business environment. China’s 13th Five-Year Plan demonstrates its leaders’ commitment to rebalance demand and revive productivity growth through a more competitive market-based allocation of resources. In ASEAN, there has been a ramping-up of public investments through various infrastructure projects. The region around us is gearing up to provide its citizens greater prosperity and greater opportunities for foreign direct investments.
Since decades ago, Singapore’s fortune has been closely tied to the region. Our local business community is active in the region and many family businesses have networks across Asia.
With Technology and rising consumerism, the population in the region is seeking new products and services. Their young population’s rising incomes and skills also mean that they are participating in the region’s supply chain in a new way.
Mr Chairman, with these changes happening in Asia, how does Singapore and our companies leverage new opportunities and what are the Government’s plans to help Singapore companies take advantage of a rising Asia?
ASEAN is a major hub for manufacturing and trade, as well as one of the fastest growing consumer markets in the world. It is one of the largest economic zones, with growth being rapid and relatively stable for the past two decades. Although Asean is becoming more integrated, investors have shared about local preferences and cultural sensitivities. A one-size-fits-all corporate strategy can, therefore, not be applied across widely varying markets.
With Singapore helming ASEAN's chairmanship for 2018, we have a chance at positioning ASEAN for a more seamless economic region, as well as strengthening a focus on innovation and the digital economy.
What is MTI's reading of ASEAN's potential? And how are we working with ASEAN member states to unlock this potential to benefit Singapore and Singaporeans?
Miss Cheryl Chan Wei Ling (Fengshan): Mr Chairman, since 1993, the ASEAN countries have grown their total trade from US$400 billion to US$2.5 trillion. Looking at the figures, this economic growth is impressive and the poverty rate amongst our neighbouring countries has been declining.
When ASEAN Vision 2020 was established, one of the key objectives was to enhance economic growth and deepen intra-regional trade ties with the free movement of people, goods, services and investment capital in ASEAN. As it stands, the ASEAN intra-regional trade is still weak. While Singapore is one of the most open economies in ASEAN, our trade with other ASEAN states is just about a quarter of our total trade.
[Deputy Speaker (Mr Lim Biow Chuan) in the Chair]
In a world that is becoming more protectionist and mercantilist, there is all the more reason for ASEAN to accelerate economic integration. Can the Minister share what are some of the challenges to this integration?
Based on conventional wisdom, it is likely that having an open, competitive and integrated ASEAN implies better chances of new industries to establish in our part of the world. If this outcome is within reach, how then can our workers tap upon this opportunity to expand their working scope and skills?
Assoc Prof Randolph Tan (Nominated Member): Sir, trade is the lifeblood of the Singapore economy. Events of recent years showed that we cannot take for granted the expansion of free trade because the world would not see a reversal. MTI's continued vigilance to remove barriers as Singapore businesses have to access overseas markets is worth lauding. In particular, recent efforts on this Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a major achievement. I have three questions.
First, I strongly support the achievement of CPTPP. I think it is a significant development to add to the current positive momentum seen in Singapore's trade prospects. Set against the setback posed earlier by the decision of the US to withdraw from the Trans-Pacific Partnership (TPP), this is a remarkable turnaround that will further strengthen Singapore's reputation as a progressive partner in the movement to promote global free trade. Modified agreement is also significant because it demonstrated progress which should not have been possible without a deep engagement throughout the original TPP process. I would like to ask the Minister what the prospects are for promoting such an approach in other areas of multilateral trade negotiations.
Second, the deep engagement by our trade negotiators will now have to be translated into tangible footholds by our businesses looking for internationalisation opportunities. In particular, SMEs still faced significant challenges when competing beyond Singapore, especially if they were not set up with such potential strategies in mind in the first place. How different would the prospects of CPTPP be for SMEs? And has the engagement process that enabled the transition from the failed TPP agreement to the revised CPTPP throw up specific opportunities which we can prepare SMEs for?
Finally, my third question is about linking the CPTPP prospects early to the direction of industry transformation set out in the ITM. For companies looking to take advantage of opportunities to internationalise, it is important for them to develop capacity along the trajectory to match the broader direction of changes occurring under the ITMs. Is this potential for making such a linkage between free trade agreement (FTA) negotiations in general and the CPTPP, in particular, actively pursued as part of the ITM strategy?
The Chairman: Dr Tan Wu Meng, you have two cuts. You can take both cuts together.
Dr Tan Wu Meng (Jurong): Mr Chairman, the global consensus on free trade is not quite what it used to be. In some Western economies, FTAs are being viewed negatively. We have seen the recent political mood in the US regarding TPP. Some politicians in the US have even proposed that existing long-standing FTAs like the North American Free Trade Agreement (NAFTA) should be renegotiated.
Given this shifting environment, can the Minister share the Government’s perspective on FTAs in this emerging new normal of global politics? What are Singapore's options, and what are Singapore’s trade priorities? For example, what balance of bilateral FTAs and regional FTAs should we be aspiring for? Likewise, what are the prospects for further World Trade Organization (WTO) deals in this new environment?
And even as we hope for the best of outcomes around the world, what fallback strategies are we building into our trade links to maximise Singapore's manoeuvring room in the event of an unfortunate trade war between any of the major economies?
Mr Chairman, some of my Clementi residents have worked in regional markets in ASEAN, or they have counterparts from other ASEAN countries whom they meet through the course of work.
My young residents speak of the growing economic buzz in ASEAN, the energy and dynamism, especially in the major cities. Also, a certain hunger and will to succeed among young people in the youthful populations of our neighbouring countries.
This growth and buzz pose opportunities for Singaporeans to forge partnerships, find new business partners and new business opportunities. But some Singaporean friends are also worried about whether our businesses can keep up. They worry about business overheads and the cost structure in our domestic Singapore economy. For example, some have mentioned land costs and rental overheads. These are issues that I have spoken about during the Budget Debate and I mentioned a few possible alternative models for approaching land rental and land cost allocation.
More broadly, what is MTI's strategy to help Singapore and Singapore companies remain competitive to support economic growth sustainably in the years ahead to create opportunities for Singapore and Singaporeans from all walks of life?
Mr Leon Perera (Non-Constituency Member): Mr Chairman, Sir, developing a vibrant manufacturing sector is important for our economy. In addition to multinational corporations (MNCs), we need to ensure the success of local startups and Singapore SMEs in manufacturing, as these may, with supportive policies, be more likely to keep Singapore as a centre of gravity.
Senior Minister of State Mr Koh Poh Koon recently shared data on rental costs in reply to my Parliamentary Question (PQ). The percentage of rental out of total costs may not be high now, but it may rise if technology replaces manpower in the future, as may happen with the advent of artificial intelligence (AI) and robotics. Industrial rentals have also seen volatility in the past. And Singapore does not have low land cost zones on the outskirts as other global cities may have.
Will MTI consider setting a target for industrial rental inflation to stay in line with the consumer price index (CPI) and adjust policies accordingly? Will MTI also thoroughly benchmark industrial rentals in other cities with big manufacturing startup sectors and manufacturing SME sectors and publish the findings?
The Chairman: Mr Henry Kwek, you can take both cuts together.
Mr Kwek Hian Chuan Henry: The recently released Annual Economic Survey showed improved economic performance in 2017. However, there was variation among sectors in performance and outlook.
Can the Government provide a broad overview of how the various industries are doing in terms of performance and outlook? Which sectors have high growth potential, and which are the ones that require significant transformation and restructuring? It is important that we set the appropriate aspirations for various sectors. Also, how is the Government supporting the different industries to deal with their unique circumstances? In our ITMs, have we been able to bespoke our policies for various industries?
Moving forward, will we be able to have greater policy differentiation, for example, in terms of manpower policy, than what we have today? If so, can the Government provide examples?
The ITMs are the cornerstone of our restructuring efforts. Since 2015, we have rolled out most ITMs. Can the Government provide a comprehensive update on our restructuring efforts? Can the Government also share some of the early successes of restructuring? Which sector has achieved rapid restructuring and which sectors have been lagging? And what is the main reason for the differing restructuring speed? Specifically, I would like to ask the Government for an update on the Lifestyle ITM.
Having said that, I would caution everybody against measuring our restructuring success using solely output economic indicators, such as value-add productivity change. This is because it will take a few years, sometimes three to four years, for outcomes of new strategies to show up in output statistics. So, using solely output statistics now to gauge the success is not wise.
As such, can the Government also share more on specific initiatives, which are more input indicators rather than economic output indicators, that are designed to aid restructuring?
The Chairman: Mr Teo Ser Luck, you also have two cuts, can you take them together?
Mr Teo Ser Luck (Pasir Ris-Punggol): I have three cuts. So, I can take them together?
The Chairman: Oh, three cuts. Yes.
Mr Teo Ser Luck: Yes. Mr Chairman, forming ESG has been good news for the business sector, and many TACs and businesses have called for a single agency to focus on supporting local businesses. We have nearly 200,000 SMEs and they are at different stages of growth, ranging from startups to micro-enterprises, medium- to large-sized companies. It will not be easy and impossible to assist all of them.
The first principle of business is to be self-reliant and build a business that is commercially viable that there is demand for your products or services. Companies should actually manage your expectations when it comes to grants and schemes and expectation of a single agency like ESG. Competitiveness is as important as self-sufficiency and both form the essence of what we call the first principles. We have to find a position of not too little and not too much, and that should form the approach; a middle way for economic planners and companies.
This middle way between extravagance and want implies a view of the balance sheet that looks for long-term profitability rather than short-term success. And it should be closely linked to the idea of self-sufficiency. ESG should then play a facilitating role to help kickstart ventures, support international growth as a focus, and develop capabilities for the companies and strengthen them to compete. It should be less about grants than the need to change for the enterprise to scale and grow. These are what will really help the companies.
Could the Minister share what ESG would do for enterprises at different growth stages and also ideas on internationalising Singapore's SMEs?
The Government has been assisting companies, especially SMEs, at their different stages of development through grants and schemes. And with ESG, many of these grants and schemes will be integrated into one single grant. However, this has also caused uncertainty as to whether the different types of grants that cover different gaps will actually be covered by a single grant. For example, there are different grants that are available today, such as the automation grant under CDG. The aim is to automate processes but there are issues as well.
The data has shown that equipment manufacturers made up the majority of the payments. So, could the Minister share how SMEs have actually benefited from this grant and how SMEs from other areas have also benefited from this grant, and whether productivity in these respective companies has actually increased?
There is also a grey area where equipment manufacturers could potentially push for more sales and use the grant to upsell their equipment. So, these are the processes that should be tightened. Hopefully, with the setting up of EDG, and integrating it with the different grants of CDG and GCP is a step in the right direction to be more stringent in the process of tightening this.
Submission of claims has also been an issue for some. Submission of claim for a grant can only be made after a project is completed. We would like to request that it will be helpful to some of the SMEs that once the grant is approved, that there will be an initial advance payment to the SMEs to help them. However, if the project cannot be seen through to completion by the SMEs, a penalty could be considered to be in place, if they fail to meet the required milestones.
So, integrating all the grants into a single grant for ease of access and application is the step in the right direction. We believe that this will develop the capabilities of the companies better and more effectively. Along with the grant portal, and ESG as the administrator, we believe that this will help streamline many of the processes. Could the Minister elaborate how such integration could benefit companies and review examples of how it could help?
Many large companies or MNCs, both foreign and local, have set up their base in Singapore. And this not only provides jobs but opportunities to grow our local SMEs through partnership with the large companies. And since the setup of PACT, there have been examples of such partnerships in the areas of innovation, capability, upgrading and knowledge transfer. Most importantly, the scheme provides long-term business opportunities for the SMEs with the larger companies.
I believe that the programme can still expand and be enhanced to support more partnerships across different sectors. But these sectors have to be selective. Not all sectors you could actually enhance and some partnerships cannot be forced. Some of these large companies can also help the SMEs, not just by providing volume of business but consultancy, for example, in digital marketing or branding. And such public relations branding and digital marketing are somehow knowledge that is lacking in many of our SMEs. It is not in the area of just volumes of business, but it is in the area of services, too. It is good to know that the different partnership schemes will now be streamlined and integrated into one.
Could the Minister share with us how PACT has been performing so far and how would the integration benefit the companies in future?
Mr Leon Perera: Mr Chairman, Sir, one consequence of an ageing society is that many family businesses face the challenge of business succession planning. And it is a challenge, since some entrepreneurs do not have children or professional employees who would want to take over, or they may have successors in mind but those successors are not yet able enough to take over.
In reply to a previous PQ, MTI confirmed that a number of schemes exist that can be used to support consulting to facilitate the business succession planning process. I would like to suggest that MTI's economic agencies make it a condition, or an advantage, in applying for the grant, for the award of all grants for strategy development initiatives, like the CDG, Market Readiness Assistance (MRA) and Innovation and Capability Voucher (ICV), for example, to the effect that the SME should involve \"next-tier\" managers within their company, not only the senior management team, in working on the consulting project, so that those next tier leaders can get exposure and training.
This will nudge SMEs to pay more attention to grooming the next tier in their companies. Finally, I declare that I am the Chief Executive Officer (CEO) of a research consultancy that does work in this and other fields.
Mr Thomas Chua Kee Seng (Nominated Member): Mr Chairman, in Mandarin, please.
(In Mandarin): [Please refer to Vernacular Speech.] This year’s Budget affirms the important role of TACs in driving industry transformation and upgrading. Besides initiating the establishment of the Trade Association Hub, the Singapore Chinese Chamber of Commerce and Industry (SCCCI) also set up the Trade Association Committee (TACOM) led by the business community.
The business community welcomes the many assistance schemes rolled out in this year’s Budget to help in uplifting the capability of enterprises. Last year, our productivity growth was 4.5%, the highest figure achieved since 2010. However, businesses are concerned, compared to large enterprises, how much have SMEs contributed to productivity growth. Just how effective have local SMEs been in upgrading themselves?
In this year's Budget, the Government has introduced a new assistance scheme, the PSG. This is very different from the PIC and ICV schemes that businesses were familiar with. Basically, after approval, PSG will support 70% of the company’s productivity investment and expenses, while the company will only need to bear 30% of the total costs. What is good about PSG is that when companies have identified a suitable productivity upgrading project, they could apply immediately. This is different from PIC’s tax deduction option at year-end. Moreover, from 1 April this year, businesses could apply directly for PSG through the Business Grants Portal set up last year. This is extremely convenient.
The Budget also announced that IE Singapore’s GCP grant and SPRING Singapore’s CDG would be combined under an all-new EDG. This is a good move! Moving forward, one integrated scheme could help enterprises to improve internal capabilities as well as to internationalise. At the same time, enterprises look forward with great anticipation to the newly set up ESG, hoping that it could achieve an outcome of 1+1 equals more than two. Besides helping enterprises to improve their competitiveness and internationalise, services provided by ESG should include coordinating manpower resources and improving technology adoption.
In addition, to further support firms to internationalise, with effect from year of assessment (YA) 2019, the Double Tax Deduction for Internationalisation (DTDI) will be enhanced, with the amount of expenses that can qualify for the DTDI without prior approval being raised from $100,000 to $150,000. This would make it easier and faster for firms to apply. Businesses also welcome the launch of the ASEAN Leadership Programme. ASEAN countries have always been the key overseas markets for local businesses. This programme would be very helpful in enabling local entrepreneurs and senior management to better understand market trends.
The Budget has also included the PACT scheme, the aim being to encourage partnership or collaboration among companies. One way is to let big companies help smaller enterprises improve their capability. Hopefully, local enterprises could tap on this scheme to nurture a mutually cooperative business culture and develop regional ventures together.
However, some businesses have expressed concern about certain new measures. For instance, with effect from next year, the Government will implement a new carbon tax to encourage reducing carbon emissions. Although businesses realise that Singapore aims to become an even more liveable and sustainable city, and that we need to protect the environment, they are concerned about the impact on their costs. Moreover, as their industry counterparts abroad do not need to be taxed in this way, local enterprises could become less competitive. We are, nevertheless, glad to know that the Government has also committed that, in the first five years of introducing the carbon tax, revenue collected would go towards giving more grants and support to companies to enhance energy efficiency and reduce emissions.
I have also received feedback from some startup companies. They hope that even if profits were to be generated in the first five years of setting up the company, corporate income tax should be waived, enabling them to plough back the revenue into operations and carry out the initial phase of development without a hitch.
Over the past few years, the role of industry associations in industry transformation has received sound affirmation from everyone. The Government has already announced the ITMs. Moving forward, trade associations will continue to strive hard towards the implementation! As an example, under the enhanced Local Enterprise and Association Development (LEAD) programme, the Singapore Food Manufacturers' Association (SFMA) has already set in motion a series of industry development projects for the benefit of its members. May I ask the Minister how the enhanced LEAD programme has been faring? Will other industry associations also benefit from LEAD?
I noticed that this year’s Budget did not give specific mention to the SME Centres. I wonder what role the SME Centres, previously set up by SPRING Singapore, are expected to perform as we move ahead.
Finally, I would like to stress that although many micro-enterprises and SMEs operate mainly in the domestic market, they do possess a very strong resolve to upgrade themselves. Even if they do not expand overseas, they have a strong social function in creating employment opportunities, and I hope the Government would not ignore them.
The Government can do even more to create a more favourable business environment for micro-enterprises and SMEs. Notwithstanding their small size, this could enable them to become small but exquisite, small but nimble, small but beautiful, and small yet highly competitive. Eventually, SMEs must continue to learn ceaselessly and develop capabilities. Only then can they benefit from the Government assistance schemes. I sincerely believe that if businesses pursue excellence and strive for perfection, marshal our resources and talent, they can then find the niche for survival and development within this ever-changing marketplace!
Mr Low Thia Khiang: Chairman, Sir, the PACT scheme has been operating since 2010. It has been enhanced and extended a number of times to cover more sectors and co-innovation activities. The scheme seeks to support collaboration between large corporations and local SMEs. This is a worthy aim. The question is how successful has the PACT scheme been? What should be defined as success? How do we measure the success?
In my view, as this scheme is oriented towards a win-win partnership between large corporations and SMEs, with the aim of transforming the capabilities of SMEs, the crux of the success lies in whether the SMEs gained in a transformative manner. In answer to past PQs, some figures have been given by the Minister. By mid-2016, over 700 SMEs and 130 projects had benefited from PACT since 2010. But how many of these SMEs saw their capability transformed? What metrics does the Ministry use to measure the transformation?
In a 2014 article published on SPRING Singapore's website, the article looked at how Keppel Shipyard joined PACT to improve the capabilities of its SME vendors and contractors. Keppel Shipyard gave the example of using PACT to develop a semi-automated system to reduce the operating costs of blasting, cutting wastage by 20% and manpower by 15%. This fell short of the target for cutting manpower by 30%, and Keppel Shipyard said continuous funding from PACT was needed to achieve success. But this so-called success was defined in terms of productivity gains from the view of a large corporation and nothing was said about the capabilities of the SMEs and whether these were transformed.
Capability transformation of SMEs should be directed towards their empowerment to seize regional and international opportunities, rather than to be limited to serve the needs of large corporations based in Singapore. To this end, it would be good to know the profile of the large corporations benefiting from PACT to date, whether these are largely Government-Linked Companies (GLCs) or MNCs, and whether more could be done to link up local SMEs to international supply chains through PACT.
Mr Chairman, Sir, next, the setting up of the Infrastructure Office to seize the opportunities being opened up by the One Belt One Road Initiative is timely. I would like to know what are the plan and scope of the Infrastructure Office and whether the office will bring together local and international companies across the supply chain to seize the opportunities being opened up by the One Belt One Road Initiative.
Er Dr Lee Bee Wah (Nee Soon): Sir, before I proceed, I would like to declare that I am a professional engineer. During the Budget, the Minister announced that an Infrastructure Office will be set up. This is to help Singapore firms to tap on infrastructure opportunities in Asia, including China's Belt and Road Initiative (BRI). I would like to ask the Minister: who will this Infrastructure Office serve? Government-linked companies? Temasek-linked companies like Surbana-Jurong? Or private sector? How will local consultants and contractors benefit?
I strongly believe that the Government should do more to develop local companies in the construction sector so that we can benefit from the booming infrastructure projects in the region. One of the ways to do this is to help our local companies to build track records. If there are no track records, how to go overseas? Give them a helping hand, groom local consultants and contractors and give them opportunities to participate in large Government-led projects in Singapore.
In this aspect, it is very disappointing. Contractors tell me that some of the prequalifications called for Government projects are so onerous that none of the local contractors or consultants can qualify. In cases like that, has the Government thought of how to involve the local companies instead of just having them as smaller players down the value chain? This puts local contractors at a disadvantage. They may possess the skills, capabilities and willingness to invest, but due to their lack of a track record, they have difficulties in venturing abroad. Some had done better and become subcontractors of MNCs and doing work overseas.
If the Government is serious about helping the local companies, I am sure you can find out more information from members of the Singapore Contractors Association. I had an earful when I met up with them recently.
I am pleased to note that the Government plans to strengthen its funding support through the PACT scheme. This is to encourage firms to forge regional collaborations and internationalisation. I hope that through this scheme and the Infrastructure Office, there can be greater encouragement and fostering of deeper partnerships between Government agencies, major companies in Singapore's construction industry, and contractors from the smaller companies, so that everyone gets a share of the pie. Ultimately, this will result in an overall increase in quality and reputation in our construction sector.
Furthermore, to encourage more construction companies to internationalise, there are a number of possible solutions to make this option more accessible and appealing. One way is to help our companies to understand the tax regime of foreign countries that they are interested in. Taxation in foreign countries can be quite complicated. As we know, most Singaporeans are law-abiding. They are very afraid of running into problems in foreign countries. And many companies also do not have deep pockets and cannot afford to go through the steep learning curve.
May I also suggest to our Ministries to actively negotiate with their counterparts to streamline and make the application of work permits less onerous, so more Singaporean PMETs can work overseas?
Mr Sitoh Yih Pin (Potong Pasir): Sir, I declare that I am a practising accountant and I have clients that include SMEs. Mr Chairman, Singapore has a comparatively small domestic market that is extremely competitive. As such, for our local companies and businesses, especially our SMEs, to be able to achieve sustainable growth, they need to take advantage of external opportunities.
There has been a great push by the Government on internationalisation and the opportunities abroad that Singapore companies can take advantage of. However, many SMEs in Singapore face financial and manpower constraints to do so. This is understandable. If an SME is to venture abroad, there is a lot of groundwork or \"homework\" that needs to be done first. For example, before breaking into a new market, they will need to undertake market research, navigate the business and regulatory environment and make the necessary investments in order to put themselves in the best possible position to succeed. These are the challenges our SMEs face even when an opportunity to venture abroad arises.
In the premises, I invite the Minister to share with us on the following: (a) the specific efforts and measures our Government and its economic agencies have taken to help Singapore companies tap on opportunities to break into new markets overseas; (b) an update on the progress of these efforts and measures; and (c) how Singapore companies have benefited from these.
The Chairman: Mr Sakitiandi, you can take both cuts together.
Mr Saktiandi Supaat (Bishan-Toa Payoh): Mr Chairman, going overseas will mean facing many challenges for the SMEs. Because of their size, they are more sensitive to the uncertainties and the risks of going international. Many of these companies were initially set up without plans to go abroad. So, from paid capital, manpower, marketing and branding and perhaps even the operations and logistics were principally set with focus on the local market. They are thus not prepared for the task overseas. It is just one thing when they get the grants and the guidance from the Government agencies to go international. It is another challenge to get them mentally prepared and build up their confidence to branch out overseas.
To venture into a different market where the language, cultural and religious preferences are different, not to mention taxes are different, not to mention the work ethos, the social and political infrastructure and legal systems, invariably, it takes a much, much longer time for something to develop, especially when you have to put applications through to the Government Ministries.
Yet, internationalisation is necessary if an SME wants to grow. But apart from all the support from the Government, there needs to be a mindset shift among our SME entrepreneurs. Can I ask if the Minister can give some outline of the assistance in the pipeline to help our SMEs in this area? Maybe one suggestion is to set up a dedicated sectoral-based mentorship platform, either online-based or otherwise, for successful SME owners who have ventured abroad to share processes and motivate other SMEs beyond the existing PIC efforts. The more efforts or channels we have, the better.
Chairman, we have often heard of various Government schemes to help our SMEs. And these range from various grants to other assistance schemes. Yet, not all SMEs are ready to internationalise. Some of their key concerns include the size of their business capital and their stomach to take risks when going abroad. Their logistics and manpower may also not be up to speed to go international. Others are still grappling with issues, such as productivity and technological disruption.
With the merger of SPRING Singapore and IE Singapore, can the Minister share how these domestically oriented companies will be helped? Will such companies still receive support for essential upgrading efforts? For instance, maybe more help can be targeted for heartland SMEs and help for merchant associations to disseminate the wide range of complex programmes that are already available to help them overcome future challenges or maybe something akin to the Pioneer Generation Ambassador (PGA) programme on the ground but for businesses.
The Chairman: Mr Lee Yi Shyan, not present. Ms Chia Yong Yong.
Ms Chia Yong Yong (Nominated Member): Sir, we thank the Government for the measures in pushing research and development (R&D) in Singapore. We all recognise the importance. And as in any investment, there should be proper returns. I have previously spoken on the need for us to track our R&D outcomes, monitor the impact, as well as to think of better ways in which we can improve. So, this cut, Sir, will focus on a few issues.
Firstly, the need to better track R&D outcomes. Governments around the world have found ways to do so. For example, the US maintains the Interagency Edison (iEdison), which is a unified electronic data system used by more than 30 US federal funding agencies. iEdison receives, stores, tracks, sorts, monitors and generates reports of inventions and patents that have resulted from awards, extramural grant or contract funding.
Germany applies an internal rule that innovation programmes with a total budget exceeding €50 million have to be evaluated shortly after the end of a programme or, at latest, every five years, and that will be ex-post evaluation. For newly designed programmes, or in the case of a prolongation of an existing programme, an ex-ante evaluation will assess the rationale of public intervention, formulate a range of objectives and suitable instruments, and assess the impact of Government-owned intervention. Evaluations are carried out solely by external organisations that are selected through a call for tenders. And elsewhere in other places like the United Kingdom (UK), Hong Kong and so on, third parties have been commissioned to undertake evaluation of R&D investments.
In addition, we need to have more upstream measures to better R&D decisions and downstream measures to facilitate tech transfer and IP commercialisation. Some of the useful practices in other countries include the use of patent analytics and landscaping which are aimed at informing policy discussions, strategic research planning and technology transfer.
For example, if you take a look at what Taiwan has done, they have the Industrial Technology Research Institute (ITRI) and it actively developed strategic mapping of IP and patent analytics. It institutionalised IP mapping along its R&D process where researchers are required to do IP mapping or landscape mapping before they embark on an R&D project. The benefits of that are obvious. We need to know what is already there and do not reinvent the wheel. Also, the institute conforms new inventions to the industry's needs through IP mapping, along with patent review procedures to strengthen quality and practicability.
ITRI has won awards at R&D 100 Award each year since 2005 and they have built a sizeable portfolio of more than 20,000 patents, the quality of which could be evidenced in their successful patent lawsuits against Samsung in 2009 and out-licensing deals to major companies like Mitsui. I believe that, in Singapore, the Intellectual Property Office of Singapore (IPOS) is also building up its capability for patent landscaping and investigations.
In China, researchers are able to work for companies that buy their research for up to three years while maintaining their positions at the institute where they did the research. This is to incentivise researchers to conduct R&D with a view to commercial application instead of merely academic application. Hopefully, this will also, if we adopt it here, allow us to have a more market-driven and more market-sensitive research.
The Korean government has also been working directly with 30 universities and public research institutes to assess commercial applications of their patents and there are more than 3,000 in all. This has resulted in approximately 50 inventions that are transferred to relevant industries, generating a total of US$3.8 million in royalties.
There is much that Singapore can do in learning from different countries. There are many proactive efforts going on, so I would like to ask for clarification from the Government in a few areas.
How does the Government categorise the different areas of R&D and what are these categories? In respect of each category, what are the indicators used to track our returns on R&D investments? What are the commercialisation rates of our technology transfer offices? What is the total spending on R&D in the last decade? What are the productivity improvement rates in relevant industries benefiting from such R&D over the last decade?
Excluding researchers, what are the employment numbers that have been generated in Singapore, for Singapore industries, as a result of R&D outcomes over the last decade for what we have spent? How has Singaporean researchers progressed and benefited from collaborations with external researchers, again, over the last decade? What is the social economic impact that has been achieved by R&D investments and, specifically, in which industries, sectors and for which groups of persons? What are the practices in place to ensure better economic outcomes from our R&D investments?
From my questions, I am sure it is clear that I am driving at not just economic but also socioeconomic impact. I hope that when the Government sets out key performance indicators (KPIs) as well as measurables, we would take those into consideration. In addition, there should be also greater duties on the part of institutions receiving grants to cooperate with the Government by furnishing information and by giving data, so that we are able to build the necessary landscaping.
Ms Foo Mee Har (West Coast): The development of Singapore's R&D and innovation capabilities has been a key economic strategy for Singapore. A series of plans had been implemented over the last three decades to position Singapore as an innovation-driven, knowledge-based economy. Investments in R&D have been significant and sustained, increasing steadily from S$2 billion under the 1991 five-year National Technology Plan to S$19 billion under the Research, Innovation and Enterprise (RIE) 2020 Plan. Singapore continues to maintain public sector R&D spending at 1% of GDP annually.
With Singapore's investments in R&D rooted in the need to upgrade and strengthen the competitiveness and growth of the economy, it is critical that such investments translate into tangible economic outcomes and impact.
Although public-sector research at our universities and the Agency for Science, Technology and Research (A*STAR) institutes has grown in intensity and excellence, it is less clear how these national research capabilities have translated into business innovation that will yield economic competitiveness. There have been various measures, including this Budget, aimed at translating our public sector research efforts into commercially viable applications. I would like to ask the Minister to provide an update on the impact of such measures to catalyse growth and innovation, and the strategy going forward.
MNCs seem to dominate many R&D-intensive industry clusters, such as electronics, pharmaceuticals and biomedical sciences. It is critical that we institute a framework for the transfer of capabilities and expertise from MNCs to the local ecosystem, while creating good jobs in the local economy. Furthermore, MNCs, large local companies (LLCs), SMEs as well as startups have different needs and capacities for engaging in R&D and research output. We, therefore, must foster a flexible partnership ecosystem that caters to companies’ diverse circumstances such that all types of enterprises in Singapore may benefit from R&D.
With innovation at the centre of Singapore’s next phase of economic development, the urgency of investments in R&D to deliver value and support industry transformation efforts is more critical than ever. There should be clear KPIs set for research projects to measure how they contribute to value creation in terms of economic and societal outcomes for Singaporeans. I would like to ask the Minister what mechanisms have been put in place to measure value creation and how we have fared so far.
Mr Charles Chong (Punggol East): Mr Chairman, it was announced in October last year that the Government will be launching the Open Electricity Market (OEM) this April. This is a positive move as it will allow households and businesses the ability to buy electricity from a retailer which has price plans which best meet their demand.
While OEM will initially operate in Jurong during the soft launch phase, it was also announced that this would be extended to the rest of Singapore in the second half of 2018. While I support the opening up of the electricity market, I am concerned that consumers may be faced with numerous price plans and permutations, and this may get very confusing for them. We need to put in safeguards to ensure that Singaporeans are no worse-off with the OEM than they were when there was no choice.
I would like to ask the Minister what steps the Government is intending to take to educate Singaporeans on the choices of how best they can choose a price plan for their electricity needs. The OEM is something which will be very new to the vast majority of Singaporeans and we need to be able to give Singaporeans the confidence that this is a move that will benefit them.
More generally, would the Minister be able to provide any updates on the soft launch of the OEM in Jurong, and also let us know what consumers can expect when the OEM eventually rolls out?
Mr Chen Show Mao (Aljunied): Sir, we learn from the Ministry that rental costs generally make up a small share of total business costs for SMEs in Singapore, accounting for 8% or less in most services sectors. In some sectors, it is higher, substantially higher. Retail rentals make up 30% of total business costs for SMEs in the retail sector in Singapore. Presumably, in the food and beverage (F&B) services sector, rentals also account for a substantial portion of business costs for SMEs.
Commercial rentals have decreased over the last few years. As the Ministry said, on the back of a decline in rentals, only 13% of some 2,500 SME respondents in a survey cited high rental costs as one of the top business concerns in 2017. Looked at conversely, for these particular SMEs, high rental costs remain a challenge even in an environment of falling rentals. It would not be far-fetched to think that in this minority of SMEs that remain most concerned about high rentals, many are in the retail and F&B services sectors.
Sir, retail and food are among the most important services we find in our heartlands. These businesses have a special importance in shaping our living environment and contributing to our quality of life. Innovation in their service offerings and business processes bring benefits that are felt immediately by the community. Can we encourage that? Could the Ministry consider targeted assistance, for example, rental rebates directed at qualifying startups and SMEs in retail and food services, so as to bring added diversity and vibrancy to our heartlands?
Ms Foo Mee Har: Chairman, even as I often speak up to champion more support for SMEs, I would like to acknowledge the significant efforts on the part of the Government and call on SMEs to seize the support provided to transform their businesses.
A slew of programmes has been launched over successive Budgets in the last few years to help SMEs. Some are very generous indeed, such as PIC and WCS. This year, we continue to see more Budget measures targeted at SMEs. A long list – Corporate Income Tax Rebate (CITR), EDG, DTDI, OIP, PSG, SME Digital Tech Hub, tax reduction for IP registration and the list goes on.
So, I am making the point that the Government is really making an effort. The Government is also making the effort to make structural change in its lead agencies, to merge SPRING Singapore and IE Singapore to form a dedicated agency for enterprise development – ESG. This is with the aim of providing better support to industries and enterprises in their new phase of growth to build capabilities, innovate and go international.
The Government efforts have born fruits. I am heartened to see many traditional businesses transform as they tap on Government schemes and embrace new technology, automate, innovate and internationalise.
Let me share an example of one food company which did it. Despite being a 40-year-old business, the transformation journey started about five years ago when the attractive PIC provided great incentives for them to upgrade their kitchen equipment. The company received support from SPRING Singapore to automate their kitchen processes, while JTC provided the much-needed central kitchen space to consolidate eight sub-scale kitchens operating across Singapore. With a more efficient operation, the company has reinvented itself and seen unprecedented growth. With automation, they are now better able to keep long service senior staff as manual work is kept to a minimal. The modernisation of their business has also enabled them to attract an amazing team of younger leaders passionate about inventing new food products, opening new retail outlets and striking new partnerships to capture more market share.
I would like to call on more SMEs to join the journey of this food company. The Government schemes can always be better, but there are many programmes already out there that can make a difference to your business.
Mr Ang Hin Kee (Ang Mo Kio): Mr Chairman, amid the major shifts spelt out during the Budget Statement, the Minister for Finance announced a slew of initiatives to support our SMEs overcome near-term challenges and to ride on future opportunities. Grant applications are also streamlined so that SMEs can better tap on Government assistance.
Some employees, especially those in the SMEs, are worried that they will be replaced with automation or when the company goes through transformation, and they may no longer be needed at the workplace. From our experience in the Labour Movement, there are some encouraging stories and some learnings.
For example, SMEs in the retail industry were encouraged to adopt technology and make use of Government funding. Through the facilitation help of our team in U SME in the Labour Movement, some of the retailers in the SME sectors have adopted radio-frequency identification (RFID) in their retail outlets. Previously, staff need to manually do stocktaking but, with RFID, they could just use the scanner to find out the stock numbers easily. So, Mr Chairman, it is with \"right\" technology rather than \"high\" technology that helped ease our SMEs and their workers into adopting transformation at the workplace.
Through such interactions and others that we had, it is clear that some of the SMEs and workers are still tentative in adopting more automation. The Labour Movement is thus concerned with the readiness of our workers in the SME side to adopt and adapt to the new technology that is forthcoming.
To this end, we are committed to partner the Ministry to be one of the ground enablers to extend assistance to SMEs on available schemes and to strengthen the readiness of our workforce, especially those on the SME side. Our familiarity with the workers has also proven to be invaluable when it comes to helping them adapt to the transformation that is occurring.
Support is already readily available to help businesses which wish to innovate and adopt technology. For example, SMEs can address their manpower and hiring needs through various programmes, such as the Earn and Learn programme, Professional Conversion Programmes and the new Career Trial programme.
One key challenge that remains for SMEs is how to make sense of the coming ITMs in the various sectors that have been announced. How do they navigate through all the new initiatives and identify what is relevant to plug their current gaps? How do they, as bosses, help their workers to be digitally ready, especially among the older workers?
I would like to seek the Ministry's assessment of the readiness of our SMEs to take part in the various ITMs. Have we been effective in ensuring that workers in SMEs are geared up to uplift their employability and readiness to adopt technology? Finally, what strategies will be in place to ensure that pervasive transformations will take place among our SMEs and their workers?
Mr Teo Ser Luck: The LEAD programme has provided resources for many TACs to upgrade their secretariat services and general services, as well as implementing several different schemes for the Government and the Ministry.
TACs are an integral part of transforming the different sectors. To me, they are actually the catalysts for things, like the ITMs, to effect the change in the sector itself. Although the membership base of many of these TACs is not representative of the entire sector, most of the major companies, I believe, are members of these sectoral or general trade associations. But we need to make sure that whatever schemes that the trade associations implement and the LEAD grants that are given to trade associations are effectively used and allocated. We have to make sure that the KPIs set for them are at the level where the impact is felt at the sector level and also at the enterprise level. However, they will need greater support as well from the Ministry, especially when we have the ITMs coming on board for so many different sectors.
With the ESG coming into place, with the integration of SPRING Singapore and IE Singapore, could I ask the Minister to share how successful LEAD has been and, under ESG as the administrator, how they can continue to work effectively for the trade associations as well as the chambers?
Mr Sitoh Yih Pin: Mr Speaker, technological disruptions in our economy are one of the hottest topics in the forefront of everyone's mind.
In the manufacturing sector, the advent of new technology is challenging traditional manufacturing processes. Manufacturing companies, especially the SMEs, sometimes struggle to stay competitive and relevant in the face of technological advances in their processes. However, instead of fearing change, we should encourage our SMEs to take advantage of the opportunity to grow by embarking on innovation and the adoption of technology.
The question, however, is how can we help them to do so? We are all aware that the Government has many schemes in place to help SMEs in this area. These include broad-based technology adoption to the granting of financial support. However, in the face of a wide array of options in Government support, on top of the overwhelming breadth of technology options available, many companies just simply do not know where to start.
Many SMEs also do not have a good sense of where their internal processes stand in terms of readiness and suitability to adopt smart technologies and processes to begin this transformation process. As a result, some can get disillusioned and disappointed. They need help.
In the premises, I invite the Minister to share with us (a) on any plans to assist companies to navigate the large set of options in support schemes and technology offerings; and (b) on any plans to help companies better understand what they lack in terms of technological capacity and the steps they can take to remedy this.
Miss Cheryl Chan Wei Ling: Mr Chairman, according to the January 2018 figures released by EDB, Singapore's overall manufacturing output in 2017 rose by 10.1% and posted its best performance since 2010. This was largely driven by the chemicals, electronics and precision engineering cluster sectors. While having a rosy manufacturing performance is something we can cheer about, the concern will always be how long this cycle will last.
I note that the electronics sector is likely to continue performing, given the strong external demand for semi-conductors and computer peripherals, but there are other sectors that we would have to review, like the transport, engineering and biomedical clusters, that continue to be on the decline for several quarters.
In the early 2000s, the Government made a big push for biomedical and life sciences in Singapore. Soon after, we expanded and attracted companies to begin their manufacturing activities here. As with every industry and business segment, the landscape evolves with time. Look at the biomedical cluster today. The current decline in the cluster is not because the biomedical sector is becoming a sunset industry. Rather, the drag was from pharmaceutical manufacturing, which is volatile, while biomedical devices manufacturing is thriving and remains attractive.
The question is how does MTI review the diversity of business segments within each cluster and ensure an optimal balance in business portfolio within the cluster to support local employment over time? This is fundamental to our long-term strategy and, possibly, the lever that is most impactful to our ITMs. Does MTI continue to review these businesses after they are established or have insights as to how the businesses are managing to meet future new challenges, say, within each five-year period?
Why is such a review necessary? The impact on business continuity these days is no longer confined to business readiness but their ability to respond and foresee potential threats.
Given shorter business cycles, the rise of technology disruptions and potential political sanctions, the possibility of businesses being displaced is higher. As a result, it will be difficult to have an executable ITM framework if the fundamentals are not firmly plugged in. I know the ITM needs to be a living document, one that allows elements within the industry to be added, changed and adapted to new landscapes. On the other hand, it will be difficult to scale up and have effective transformation throughout each industry cluster should there be a need for the base framework to be adjusted constantly.
The Committee on the Future Economy (CFE) recommended that Singapore continue to build a globally competitive manufacturing sector and retain manufacturing at around 20% of GDP over the medium term. In today’s context, most industry cycles are cyclical in nature, including the emerging technologies, which themselves are volatile. Can the Minister share on how the Government plans to support this recommendation?
On the same note that I have made earlier, the need to understand the industries better also has a bearing on how well-prepared our workers are for future industry evolvement. Unless we have more clarity on the longer strategic plan about the type of industry sectors in Singapore that we plan to pursue, we may end up in frequent pursuit of roles playing catching up.
While we can entice companies to set up shop in Singapore, our workforce needs to be ready with the necessary capabilities in good time. Further, how can our workers effectively transform and switch from one industry to another over a short period? Given the changes to multiple industries, how is the Government ensuring that workers can continue to possess the right skills in order to keep doing their jobs or take up new jobs that will be created?
I hope MTI will consider the points raised and share the strategic plans for Singapore’s industries.
The Chairman: Mr Lee Yi Shyan, not present. Mr Charles Chong.
Mr Charles Chong: Mr Chairman, we have been building up our startup landscape in Singapore for some time now, and our drive to attract the best startup talent to Singapore is slowly paying off.
At last year's Committee of Supply (COS), MTI announced initiatives to enhance the startup scene, including the unification of Government support schemes for startups under the Startup SG umbrella, as well as the streamlining of the EntrePass Scheme to allow us to attract more talent. In August, it was announced that SPRING Singapore and Workforce Singapore (WSG) would set aside $2.8 million to groom the next generation of startups in supply chain and logistics and develop related talent and capabilities in SMEs. Then, in November, the Monetary Authority of Singapore (MAS) announced the establishment of a financial technology (fintech) innovative hub in the heart of the Central Business District (CBD) known as 80 Robinson Road (80RR)Fintechhubsg. This is intended to cater for the increasing number of startups in the fintech scene, and MAS reported that we now have more than 400 fintech startups in Singapore.
So, there has been observable progress in what we are doing for startups. Tech startups operate in a wide range of industries and generally look at how technology can help us work smarter and more quickly. The pace in startups is normally very quick and it is well-known that the majority of startups will fail. Yet, many still enter the startup world with grand plans on how they can change people's lives for the better.
What is probably a sad truth of this ecosystem is that there are likely to be failed startups which actually have very good ideas. And if they had done things slightly differently, they really could have made a difference to the people's lives with their products.
It is undoubtedly a tall order, but is there any way that we can help to identify and support these sorts of startups with good ideas but which have failed for reasons other than having a poor product? For Singapore to thrive in the startup space and for us to attract the best startups, we need to continually keep our pencils sharp and be relentless in seeking new ways to keep Singapore front of the minds of startup founders when they are looking for places to establish their businesses.
We have made progress in these endeavours and I would like to ask the Minister if there is more in the works which will make us even more competitive and which will help us support and attract startups. Has there been any feedback on the initiatives which were announced and rolled out last year and what is the Government's assessment on the success of these initiatives to date?
The Chairman: Mr Azmoon Ahmad, not here. Mr Yee Chia Hsing. You have two cuts, please take both cuts together.
Mr Yee Chia Hsing: Chairman, I would like to ask how the Government is helping PMETs who have been displaced or wish to move into growth sectors identified by the Government. Many displaced PMETs were previously working in mid-level management, which is particularly susceptible to cost cutting as advances in technology have allowed for easier coordination of work tasks. For example, previously, a company might need more mid-level managers to disseminate information and coordinate work tasks. But now, with platforms, such as Whatsapp, a single manager is able to instantaneously disseminate the information to the rest of the workers.
Many PMETs who find themselves displaced became drivers for Grab or Uber. While our unemployment figures remain relatively low, with the resident unemployment rate of 3.1%, the figure masks under-employment where a PMET with many years of work experience ends up as a Grab or Uber driver.
Sir, I am also concerned that many such displaced PMETs are sole breadwinners in the households and they cannot afford to be out of work to attend full-time skills upgrading courses. Would the Ministry elaborate what are the schemes available to help such PMETs?
[Deputy Speaker (Mr Charles Chong) in the Chair]
The ITMs emphasise the importance of our companies seeking out opportunities in the region. Last year, many of our ASEAN neighbours have GDP growth rates which are higher than the 3.6% reported in Singapore. The Philippines, Vietnam and Myanmar reported 6.7%, 6.3% and 7.7% GDP growth rates respectively. Closer to home, Malaysia and Indonesia reported 6% and 5.1% respectively.
Sir, with a small population, plus a small market size, Singapore companies must move abroad if they want to grow bigger to reap economies of scale. However, going regional is not without risks. Very often, we hear of Singapore companies, which have done well at home, only to lose money when they venture out. To take advantage of the growth in regional economies, our Singapore companies will need to acquire a deeper knowledge of regional markets, not just of foreign rules and regulations, but also industry-specific knowledge, as well as important information, such as the reputation of potential business partners.
As such, I would like to ask how MTI is equipping our Singapore companies with the relevant market knowledge.
Mr Lim Biow Chuan (Mountbatten): Mr Chairman, Sir, I declare my interest in speaking on this topic as the President of the Consumers' Association of Singapore.
Two years ago, during the COS debate on consumer protection, I spoke on the need to ensure that consumers are protected when making purchase transactions online. Our research shows that there are several companies, like Amazon, Microsoft and Shoppee, which provide for an arbitration clause in their online standard terms and conditions. This means that consumers who buy online would have to agree to the arbitration clause when transacting with these companies. These consumers will have no negotiating power to ask for the arbitration clause to be removed.
For many of these consumers, their transaction values are usually of a quantum well within the limit of $10,000. If they have a dispute with the online vendor of the products which cannot be resolved through mediation, their usual recourse is to apply to SCT to adjudicate their dispute.
However, when we checked with SCT, we were told that SCT would not hear the claim by consumers because of the arbitration clause, unless both parties agree. Thus, consumers with small claims below $10,000 and who have disputes with the online companies, are unable to seek redress through SCT because of the arbitration clause.
For example, if a consumer buys a surface laptop through the Microsoft website and for some reason they have a dispute, they would not be able to seek recourse through SCT because of their arbitration clause. Likewise, if they were to shop at Shoppee and buy a Nintendo set or earpiece or another laptop, they also will not be able to seek redress through SCT because of the arbitration clause.
In the Second Reading of the SCT Bill in 1984, the then Second Minister for Law and Home Affairs Prof S Jayakumar said: \"The primary purpose of this Bill is to provide for a speedy and inexpensive machinery to handle small claims arising from disputes between consumers and suppliers.\"
I humbly submit that the rationale for SCT still holds true today and is valid. Since the Minister for Law has said that the SCT Act will be amended, I would urge MTI to work with MinLaw to ensure that this jurisdiction of the SCT cannot be ousted by arbitration clause if the value of the dispute is less than $10,000 or within the jurisdiction of SCT. Otherwise, this will make a mockery of the rationale for the SCT if the jurisdiction of SCT can be easily ousted simply by inserting an arbitration clause.
It is also timely for MTI to review the entire framework and to consider more legislation to provide protection for consumers in respect of online transactions. There would have been several media reports which suggest that more and more consumers are buying online. However, in the online transactions, consumers are all disadvantaged because of the lack of bargaining power in negotiating the standard terms and conditions of trade. For example, we understand that it is common for low-cost carriers operating out of Singapore to use pre-ticked boxes when transacting with consumers. A recent case in mind involving a premium carrier is that of Singapore Airlines (SIA) which had a pre-ticked box for auto inclusion of travel insurance.
In the EU, companies cannot infer consumer’s consent for additional payments by using such pre-ticked boxes and must obtain the express consent of consumers. So, I urge MTI to consider similar subsidiary legislation to the same effect.
The Chairman: Minister Lim Hng Kiang.
The Minister for Trade and Industry (Trade) (Mr Lim Hng Kiang): Mr Chairman, I thank Members for their comments and suggestions.
Mr Yee Chia Hsing asked about the outlook for the global economy in 2018 and the implications for the Singapore economy. The global economy ended on a firm note in 2017, posting the broadest growth since 2010, according to the International Monetary Fund (IMF). We expect global economic growth to pick up slightly in 2018, partly on the back of improved growth prospects in the US due to the recently approved tax reforms. However, as compared to 2017, growth in most of Singapore’s key final demand markets, such as the Eurozone, China, the Newly Industrialising Economies and ASEAN-5, is projected to moderate or remain unchanged. At the same time, while global macroeconomic risks have receded to some extent since the end of 2017, there remain some downside risks to global growth.
First, there remain concerns over protectionist actions, which could disrupt global trade and economic growth if they translate into trade barriers.
Second, the US' economic recovery is in a relatively mature stage of the cycle. An upside surprise in inflation could lead to a faster-than-expected normalisation of US monetary policy, with consequent impact on the US and the global economy.
Against this backdrop, Singapore’s economic growth is likely to moderate in 2018, but still remain firm. Specifically, MTI expects the Singapore economy to grow by 1.5% to 3.5% in 2018, with growth likely to come in slightly above the middle of the forecast range.
We expect the performance of our sectors to vary. The manufacturing sector, alongside externally-oriented services sectors, such as finance and insurance, transportation and storage, and wholesale trade, are likely to sustain growth due to firm external demand. Growth is also expected to broaden to domestically-oriented services sectors like retail and food services as consumer sentiments improve in tandem with the ongoing recovery in the labour market. However, the performance of the construction sector and the marine and offshore engineering industry is likely to remain lacklustre due to weak operating conditions. We are experiencing three major global shifts.
First, rapid technological change. Innovation cycles have shortened, and new technologies are disrupting many sectors.
Second, global value chains are changing, as major trading partners promote in-sourcing and move up the manufacturing value chain. In the US, the Trump administration has highlighted its plans to boost its manufacturing sector. China has embarked on a \"Made in China 2025\" initiative, and India has its \"Make in India\" initiative, too.
Third, there is a shift in global economic weight towards Asia. We are witnessing the rise of China, India and Southeast Asia with a growing middle class, increased urbanisation, and infrastructure development efforts, such as the BRI.
To strengthen our competitive edge, we must, therefore, continue to strengthen our linkages, innovate and deepen our capabilities to prevent being displaced by the global shifts that I mentioned just now. Looking ahead, we recognise two major drivers of economic success – internationalisation and innovation.
Dr Tan Wu Meng asked about our trade priorities and whether our pursuit of FTAs is still relevant in the current global economic climate. As a small country with an open economy, connectivity is core to Singapore’s survival and prosperity. Having free and open markets is critical for Singapore’s development. It is by staying open to trade, people and ideas that we can participate in global growth and build the deep capabilities needed for our people and companies to access new markets, on-board cutting-edge technologies and create good jobs. Singapore, therefore, remains committed to the multilateral and rules-based trading system.
Over the years, we have built depth and breadth in our international linkages. We have an extensive network of 22 implemented FTAs and Economic Partnership Agreements with 33 trading partners. Our FTAs have helped our companies benefit from tariff savings of over S$1.1 billion in 2016. To illustrate with an example, plastics product manufacturer Singa Plastics Ltd has taken advantage of several of our FTAs, such as the ASEAN Trade in Goods Agreement, the ASEAN-Korea FTA, as well as the Singapore-Australia FTA, to grow its business and maintain competitive pricing for its exports into these countries. The company’s exports have increased by close to 30% since it began using these FTAs. As Singa Plastics also exports to France, Germany and Greece, it is keenly awaiting the ratification of the EU-Singapore FTA (EUSFTA).
We will continue to enhance our connectivity by strengthening connections with existing trading partners as well as forging new connections with emerging markets. We will continue to work with the European Commission to expedite the ratification of the EUSFTA.
We review our FTAs from time to time, and upgrade them to ensure that they remain relevant and useful to our businesses. There is, for example, the ongoing negotiations with China to review and upgrade the China-Singapore FTA. The upgrade looks to deepen bilateral benefits by enhancing areas, such as investment provisions, trade facilitation, rules of origin, and improved market access for Singapore businesses, especially in the services sectors.
We are expanding Singapore's connectivity by joining regional FTAs, such as CPTPP, which will be signed next week, and the ongoing Regional Comprehensive Economic Partnership (RCEP). Singapore is also negotiating FTAs with major regional blocs, such as the Eurasian Economic Union and the Pacific Alliance.
Assoc Prof Randolph Tan observed that more should be done to promote the opportunities of CPTPP to our SMEs. Our pursuit of FTAs is for the benefit of our companies and their workers. We will continue to work with the Singapore Business Federation (SBF) and TACs on outreach efforts to help our companies, in particular, our SMEs. These efforts include company outreach sessions, FTA training courses, and even one-on-one sessions to follow up on specific concerns or opportunities which companies are keen on.
Mr Henry Kwek and Ms Sun Xueling asked about the Government’s plans to help Singapore companies take advantage of the shift in global economic focus towards Asia. Indeed, Asia's growth brings about many opportunities, with rising consumption as well as demand for infrastructure in Asia offering significant export and investment opportunities for Singapore-based companies.
We are working with China on commercially meaningful areas in its BRI. BRI has the potential to foster regional cooperation, enhance connectivity and accelerate infrastructure development across Asia. Singapore companies are well-placed to tap on BRI opportunities. For instance, Singapore and China have recognised our strong complementarities and are jointly developing the China-Singapore (Chongqing) Connectivity Initiative Southern Transport Corridor (CCI-STC), which aims to improve connectivity between western China and Southeast Asia. Three Singapore companies – Pacific International Lines (PIL), PSA International and YCH Group – have entered into two joint ventures with Chongqing companies to steer the development of the STC projects.
We are also collaborating with the Government of Andhra Pradesh in India to develop the state’s new capital city of Amaravati, as well as to promote greater economic collaboration with Andhra Pradesh. In 2017, Ascendas-Singbridge and SembCorp Development formed a Singapore Consortium to master-develop the commercial core of Amaravati, together with its government. Since then, our companies have been actively exploring smart city urban solution opportunities in Amaravati.
Closer to home, ASEAN has strong potential as a market. We are strengthening our engagements with ASEAN through both regional economic integration as well as bilateral initiatives with the ASEAN countries.
Miss Cheryl Chan, Mr Henry Kwek, Mr Low Thia Khiang and Ms Sun Xueling asked about our plans to work with other ASEAN member states to unlock ASEAN's potential to benefit Singapore and Singaporeans.
As a region, ASEAN is making good progress in deepening economic integration under AEC. The prospects are good. ASEAN is currently the sixth largest economy in the world and enjoy a steady growth rate of 5%. By 2030, ASEAN has the potential to become the fourth largest single market in the world after China, the US and the EU.
Despite the rising nationalistic tendencies and anti-trade sentiments elsewhere in the world, ASEAN has stayed on course in its trajectory of regional economic integration. ASEAN is also navigating the rapid pace of technological change and digital disruption.
For businesses seeking to enter or expand their presence in ASEAN markets and beyond, AEC, since its realisation in 2015, has lowered entry barriers, reduced transaction costs, widened choices for consumers and generated job opportunities in the region. Take, for instance, Trends Home Electrical. The company started out as a single home appliance shop in 1998. Today, their products are carried by over 450 retailers in Singapore, Malaysia, Indonesia and Thailand. It has been using the ASEAN Trade in Goods Agreement since 2015 for its products to enjoy tariff savings and has experienced a close to 15% increase in exports since then. Trends Home Electrical plans to continue innovating, upgrading its capabilities and further expand into Southeast Asia to capture the growth opportunities there.
At this juncture, Mr Chairman, I would like to clarify on Mr Low Thia Khiang's comment that while AEC was established by the end of 2015, but ASEAN failed to achieve one-fifth of the 506 measures and had deferred them for 10 years to 2025. It is true that ASEAN did not quite achieve all 506 measures in 2015. We achieved about 80% of them. But we have not neglected the rest. We continue to track, monitor and work on the rest of the measures, and I am happy to report that, to date, 88% of the AEC measures have been implemented. So, we are not deferring them to 2025. And, this year, as part of Singapore's ASEAN Chairmanship, we are pursuing an ASEAN agreement on e-commerce to help our businesses expand and leverage the e-commerce market potential in Southeast Asia.
The ASEAN e-commerce scene is still at its infancy, with some companies finding it confusing to navigate the varying e-commerce regulations in various ASEAN countries. This agreement that we are aiming to sign this year will streamline some of these regulations so that aspiring entrepreneurs and SMEs can market their products and services regionally with greater ease and make it safer to send and receive electronic payments. With this agreement, companies like Coldwear, a local winter wear and travel accessories retailer, can expect to use e-commerce solutions to expand into the ASEAN region more easily. Coldwear has successfully entered the Indonesian market and plans to venture into the wider ASEAN markets, including the Philippines, Thailand and Vietnam.
Mr Chairman, our strategy of engaging ASEAN will also take place at the bilateral level. We will press on with our suite of bilateral initiatives to deepen our economic linkages and help our companies take advantage of the opportunities in our neighbouring ASEAN countries. We will intensify our engagements with our long-term partners, such as Malaysia and Indonesia. New collaborations, such as the High Speed Rail and the Rapid Transit System will enhance bilateral connectivity, business links and people-to-people exchanges between Singapore and Malaysia. ESG will continue to explore areas of synergies in Indonesia. The Kendal Industrial Park in Central Java, a joint venture between SembCorp Development and an Indonesian company, is one example. We hope to be able to facilitate more of such partnerships in future. We will also continue to extend our reach into other ASEAN countries, such as Myanmar and Vietnam, where our companies have strong and sustained interests.
Mr Chairman, the second major driver of our economic success is innovation. With shifting factors of production now favouring technology-intensive economies, Singapore’s focus on innovation and technology puts us in a position of strength to transform our installed base, capture new investments and create new solutions for the market.
Our strengths in innovation and technology have been developed through consistent R&D efforts over the years, which have raised Singapore’s global competitiveness and enabled many of our sectors to move up the value chain. Beyond R&D, we are also making a strong, committed push towards building innovation networks and partnerships to link up companies across major innovation hubs. This is a reflection of the nature of innovation in a digital age, and the importance of cross-market perspectives for businesses to reap new opportunities.
The Global Innovation Alliance (GIA) was launched last year and seeks to strengthen Singapore’s connections to major innovation hubs around the world. It creates more opportunities for our students, entrepreneurs and businesses to gain overseas experience, connect and collaborate with their overseas counterparts.
The connections facilitated under GIA will allow ideas and talents to cross-fertilise across different innovation hubs and provide access to interact with and identify local partners for collaboration. This injects vibrancy into our local innovation ecosystem and bolsters our value proposition as a springboard for foreign companies to come and testbed new ideas here before expanding into the region.
A key component of GIA is to create a network of Innovation Launchpads around the world. We recognise that our Institutes of Higher Learning (IHLs), companies and agencies have already established their own networks abroad. GIA seeks to integrate them into a single network that companies can readily tap on to launch their innovations into the relevant markets. My colleagues will share further on the progress of our R&D efforts and GIA initiative later on.
We will also take advantage of our ASEAN Chairmanship to work on an ASEAN Innovation Network (AIN). The intent is to strengthen the networks among the innovation ecosystems in ASEAN. This will further enable our companies to expand abroad and help them to better respond to demands from the increasingly sophisticated and growing consumer base in our region.
Mr Chairman, this focus on internationalisation and innovation is part of our larger industry transformation efforts. We announced the S$4.5 billion Industry Transformation Programme in Budget 2016, recognising that each sector is different and that transformation, coordinated at the sector level, can deliver more targeted results. In this vein, we introduced the ITMs. The ITMs are designed to keep our industries competitive and generate growth for Singapore. Each ITM takes into account the unique circumstances of the sector and customises efforts through the four key pillars of innovation, productivity, jobs and skills, and internationalisation.
We have launched 22 ITMs to date, and I am happy to inform Mr Liang Eng Hwa that we would have rolled out all 23 ITMs by end of this month. Moving forward, we will continue to refine the ITMs, together with our partners, working closely with all stakeholders, including companies, TACs, unions and workers. My colleagues will also elaborate further on the progress of our ITMs and our restructuring efforts.
Dr Tan Wu Meng asked about our strategy to help our companies remain competitive and support sustained growth, especially given our overheads and cost structure. Along the same vein, Mr Leon Perera asked about the Government's approach to keeping industrial land costs competitive. The Government monitors business costs closely to ensure that we remain competitive.
In 2017, the overall Unit Labour Cost (ULC) for the economy fell by 0.3%, moderating from the 2% increase in 2016. However, there were differences across the different sectors. While manufacturing ULC declined by 8% on the back of strong productivity gains, ULC for some services sectors, such as the accommodation and food services sector, rose by 2% as wage growth outpaced productivity growth.
The overall ULC is likely to see a modest increase this year. Wages are expected to rise amidst a gradual recovery in the labour market. The key, therefore, for companies to manage their labour costs and have sustainable wage growth for Singaporeans, is to have continued productivity growth.
For companies in the manufacturing sector, rental costs constitute a relatively small proportion of business costs, and are usually less than 2% on average. We have, nonetheless, taken measures to ensure that industrial land costs remain competitive.
First of all, JTC Corporation benchmarks its land prices internationally to ensure that they are competitive.
Second, the Government releases land for private-sector industrial developments through a half-yearly Industrial Government Land Sales Programme to ensure that there is sufficient land and industrial space to meet demand and to support our economic growth, as well as to maintain the stability of the industrial property market. With an increase in the supply of land and industrial space, the industrial price index has decreased by 16.6% from its peak in 2014, while the industrial rental index has declined by 13.4% from its peak in 2014.
Third, we have also made public the statistics on industrial space prices, rents, as well as occupancy rates to improve transparency and help companies make informed decisions.
We must continue to take bold strides to seize opportunities to innovate and not let our domestic constraints of a tightening labour market and scarcity of land to hold us back.
Mr Chairman, we have put in place initiatives to ensure that our companies remain competitive and are well-poised to tap into growth areas and take up future challenges posed by the global economy. Coupled with the positive growth forecast in the year ahead, I would like to encourage our companies to take advantage of the firm global economic prospects to persevere on their transformation and growth journey.
We welcome companies to be actively engaged in our efforts as we work to expand Singapore's economic space through building and deepening linkages, and establishing innovation networks to foster relationships and create opportunities. Over the next decade, our collective efforts should enable us to grow by 2% to 3% per year on average. This is how we can work together to create an economy that can offer sustainable wage growth and good jobs for all Singaporeans.
The Chairman: Minister Iswaran.
The Minister for Trade and Industry (Industry) (Mr S Iswaran): Mr Chairman, I thank the Chairman of the Government Parliamentary Committee (GPC) for Finance and Trade and Industry, Mr Liang Eng Hwa, and all Members for their comments and suggestions on our economic transformation.
Singapore’s economy grew by 3.6% in real terms last year, higher than the 2.4% growth in 2016. This can be attributed in large part to the global economic recovery. However, our tripartite partners’ transformation efforts have also made a valuable contribution by enabling our enterprises and workers to benefit from new economic trends.
Aggregate data, like GDP growth, give us a feel for the overall economy and its direction, but they do not tell us the whole story, especially the unevenness in the economic terrain. The pace and success of transformation vary according to the context of a particular sector or enterprise. And this variation is due to different capabilities, external demand conditions and even different levels of aspiration.
Our efforts to transform the economy must recognise this diversity of circumstances and needs. And our strategies must also be nimble and adapt with the times. That is why we are making changes to Government policies and programmes, and even to the way that we are organised. Let me elaborate.
As Mr Henry Kwek has noted, although our overall economic performance has improved, the outcome varies across sectors. There are several reasons for this. Mr Chairman, may I have your permission to display some slides?
The Chairman: Yes. [Some slides were shown to hon Members.]
Mr S Iswaran: Thank you. First, our sectors face a spectrum of external demand conditions. Within the manufacturing sector, on the one hand, the electronics cluster saw strong an annualised real value-added (VA) growth of 24.4% per annum (pa) between 2015 and 2017, boosted by robust demand for semiconductors to be used in smartphones and vehicles. On the other hand, the real VA of the Transport Engineering cluster contracted by 12.2% pa over the same period, due to the fall in demand for the marine and offshore segment.
Secondly, we see more success in sectors which are better able to tap on external growth opportunities. For example, between 2015 and 2017, the real VA of externally-oriented sectors grew by 3.6% pa, compared to 0.7% pa for domestically-oriented sectors.
Third, even among the domestically-oriented sectors, their ability to reduce manpower-intensity and raise productivity has varied. The real VA of retail trade and food services have grown over the past two years by 2.7% pa and 1.2% pa respectively. However, retail trade’s growth has been much more productivity-driven, with VA per worker rising at 3.3% pa, unlike the decline of 1.9% pa in food services. Using VA per actual hour worked shows better productivity performance for both sectors, but an even wider gap between the two.
Given this variation, the ITMs aim to address each sector’s particular combination of challenges and circumstances. For example, the ITMs' support our externally-oriented sectors’ growth and aspirations for market leadership, through the development of high-value capabilities.
A case in point is the Logistics ITM which is led by EDB, which envisages strong growth with a Compound Annual Growth Rate (CAGR) of 5% between 2015 and 2020, leading to a nominal VA of $8.3 billion in 2020, and the creation of 2,000 new PMET jobs between 2015 and 2020. To achieve this, the ITM advocates the development of specialised logistics handling capabilities.
If I can illustrate, Tee Hai Chem provides specialised logistics services for chemical and pharmaceutical products. Over the years, it has become a market leader, even supporting MNCs in their overseas operations. SPRING Singapore's programmes have helped the company develop these specialised capabilities, enhance its information technology (IT) and human resource (HR) systems, and upgrade its workers' skills. As a result, the company has grown by nearly 13% pa between 2012 and 2016 and created more than 60 good jobs.
For other sectors, the focus is on improving productivity and becoming less manpower-intensive. One example is the accommodation sector, which has achieved notable success over the last two years. The sector has seen strong real VA growth of 4.2% pa and even stronger productivity growth of 5.2% in terms of real VA per actual hour worked.
Recently, the Singapore Tourism Board (STB) reported record international visitor arrivals and tourism receipts for a second straight year in 2017. Our hotels, which are a significant part of the accommodation sector, can continue to benefit from Asia’s growing outbound travel only if they can boost productivity and lessen their manpower reliance, while maintaining service quality.
Grand Park City Hall is an example of how this can be done. I recently visited the hotel which has tapped on STB’s support to adopt manpower-saving technologies. It is also part of a new regulatory sandbox with the Ministry of Home Affairs (MHA) and STB that will pilot the use of facial recognition technologies for a seamless check-in process. Staff can thus be cross deployed to better meet guests' needs in other areas and also learn new skills in the process. Altogether, the hotel is targeting a reduction in manning ratio of about 17% while enabling its employees to do more value-added jobs.
We are also working on opportunities that cut across multiple sectors and ITMs. For example, the growing demand for infrastructure in ASEAN and developing Asia offers significant opportunities that span several industries, including financial services, professional services, precision engineering and construction.
Last year, we introduced the Internationalisation Finance Scheme for Non-Recourse (IFS Non-Recourse) financing scheme. The aim was to help more SMEs participate in regional infrastructure projects, with risk-sharing between the Government and banks for loans that are secured on the project’s cash flow rather than the SME’s assets. This was based on feedback from the industry and an effort to help our SMEs participate in this larger opportunity.
The Infrastructure Office, which Mr Low Thia Kiang and Er Dr Lee Bee Wah referred to, is a continuation of this effort. Identifying and structuring infrastructure projects and finding the right partners to finance and execute them remain a challenge both in ASEAN and developing Asia. Hence, the Infrastructure Office aims to: (a) build a deeper understanding of the pipeline of infrastructure projects in the region; (b) promote collaboration between foreign and local enterprises from the entire infrastructure value chain; and (c) facilitate the structuring, financing and execution of Asian infrastructure projects.
The Infrastructure Office will work closely with private sector players – which is the point that Er Dr Lee Bee Wah raised – in the infrastructure ecosystem, supported by Government agencies like ESG, EDB, MAS and the Professional Services Programme Office. In short, the aim is really to bring together the different players in the infrastructure ecosystem that we have in Singapore – from the public sector, private sector, from the large companies to the small companies, those who do professional services, those who do financial services and those who can execute projects, so that we can bring our capabilities together to address this opportunity as a group.
Er Dr Lee Bee Wah also had some comments on Government contracts, and I hope she has filed cuts in the MND COS because MND will be better placed to answer that point on construction contracts.
As a whole, our ITMs are inclusive in their design. Not quite bespoke in the way that Mr Henry Kwek talked about it, but the ITMs aim to address the diverse needs of industries and enterprises.
But there is a limit to how many of the over 200,000 enterprises that Government agencies can directly engage. That is why we have stressed the importance of partnerships with TACs, unions and other stakeholders, because they can play an important role to propagate the transformation message and broaden the reach of the ITMs.
While competition is the natural instinct of companies, enterprises can also support one another to succeed in transformation. Currently, EDB and SPRING Singapore support collaborations between large organisations and local SMEs through the PACT programmes. The aim is to allow for knowledge transfer from the bigger companies to the SMEs to support them, for capability development targeted at the SMEs and the test-bedding of innovative solutions.
On Mr Low Thia Kiang and Mr Teo Ser Luck’s query, to date, EDB and SPRING Singapore have supported about 180 projects, which have resulted in about 1,000 partnerships. But the important point that Mr Low Thia Khiang makes is that it is also about how it has made a difference for SMEs. It is hard to quantify this because some of the impact is qualitative, in terms of capability, but let me use an example.
That is the partnership between Onn Wah Precision Engineering, a local precision machining supplier, and Schlumberger’s Singapore Well Testing Centre. That partnership was to develop high precision machining for oil and gas production instrumentation. This has created a new business opportunity for the company that now accounts for a substantial portion of Onn Wah's total revenue.
If you take the retail space, the Dairy Farm Group worked with more than 320 SME suppliers to streamline their inventory and supply chain management. The SME suppliers were better able to track product movements and respond to changes in demand and enjoyed productivity improvements of up to six times in terms of the number of deliveries.
So, in short, the overarching emphasis is to deliver benefits to our SMEs in terms of productivity improvement, new capabilities that might, in turn, lead to greater opportunities, the deeper links with their principals and, ultimately, leverage on all of these to go international.
In view of these good outcomes, we have allocated $100 million over the next three years for an integrated PACT Programme, in other words, we are bringing the EDB and SPRING Singapore programmes together to support these and more forms of collaboration among enterprises to work and grow together in capability and business development. So, what sort of programmes will they support?
First, in addition to what I have described between the big companies and the SMEs, it is projects amongst SMEs and startups, which will now also qualify for support under the integrated PACT Programme.
Second, the scope of PACT will be expanded to include sourcing for services providers, as well as to promote the early adoption of new technologies among local enterprises.
And third, based on feedback from many SMEs on the value of collective branding, resource pooling and venturing overseas together, PACT will also support such strategic alliances to move into new business areas in both domestic and overseas markets.
So, in other words, it aims to help SMEs complement one another as a group as they venture into new areas, whether it is in Singapore or internationally. Mr Thomas Chua acknowledged that the PACT programme has, indeed, benefited SMEs and that there is a good track record in terms of the outcomes.
Like our clusters or sectors, our enterprise landscape is also quite variegated. Micro and small enterprises account for a significant majority, with medium and large enterprises comprising 4% and 1% respectively of the total enterprise base. Yet, if you look at their share of value add, that has quite the inverse pattern, which is not surprising but it tells us that, on the one hand, we are playing a large numbers game, but with a relatively modest value-add impact and, on the other end of the spectrum, the numbers are few but the value-add impact is significant. The resources and capabilities also vary considerably across this broad enterprise spectrum.
Therefore, ESG will tailor its programmes to the needs of the different types of enterprises, bringing together the capability building and internationalisation functions of SPRING Singapore and IE Singapore.
Mr Teo Ser Luck asked how ESG will support companies at different growth stages. First, ESG will create a more conducive environment for startups by combining SPRING Singapore's Startup SG initiatives and IE Singapore’s international networks. Beyond mentorship and funding, startups increasingly need to internationalise a lot earlier in their development in order to gain access to new markets and also acquire complementary capabilities.
Evercomm is a startup that provides end-to-end energy management solutions to help its clients optimise their energy consumption. SPRING Singapore provided the company with the Startup SG competitive grant to commercialise its technology, and it also facilitated R&D collaborations with MNCs and foreign players. Evercomm also tapped on IE Singapore’s networks to navigate overseas markets. Today, the company operates in both Singapore and Taiwan. Looking ahead, ESG will help Evercomm explore new technology collaborations with partners in Israel, Germany and the US, whilst helping the company expand into the Asia Pacific region. Senior Minister of State Koh Poh Koon will be able to elaborate further on the broader developments that we have in the startup space in Singapore.
Secondly, for companies that are scaling up, ESG will provide support in key areas of capability development. As pointed out by Mr Saktiandi Supaat, many SMEs still require assistance for essential upgrading before they venture overseas. ESG will work through TACs and industry partners to support them. This includes the SME Centres, which Mr Thomas Chua referred to, which will continue to be a very important channel for ESG’s SME engagement.
ESG will also use the new Productivity Solutions Grant (PSG) to support the adoption of pre-scoped solutions so that the broad base of SMEs can use them to improve their operational efficiency and productivity. Senior Minister of State Sim Ann will be elaborating on these points.
Access to financing is also critical for long-term growth. ESG will continue SPRING Singapore and IE Singapore’s partnership with our financial institutions to meet the working capital and growth financing needs of viable SMEs, and to facilitate access to credit lines and insurance cover for trade and projects in overseas markets.
In addition, I am pleased to announce that ESG will extend the pilot Venture Debt Programme (VDP) by three years till March 2021. The VDP enables local high-growth enterprises to finance their expansion plans with less equity dilution. Seventeen companies from quite diverse sectors have benefited from the programme since its launch in October 2015.
Thirdly, ESG will support companies to seize overseas opportunities to grow through several internationalisation initiatives. The importance of internationalisation is borne out by a survey of Singapore's investments abroad by the Department of Statistics from 2006 to 2016, which shows that income from our companies’ direct investment abroad grew by 6.1% pa, higher than the 5.1% pa growth in profits from their operations in Singapore. Looking ahead, one must expect that this differential growth will continue, given the nature and pace of opportunities in the region around us.
ESG will also enhance IE Singapore’s network of Overseas Centres to help Singapore companies navigate the business and regulatory environment in overseas markets, gain market insights and access to networks with local partners.
The Market Readiness Assistance (MRA) scheme helps companies defray the costs of foraying into new markets. We raised the grant support from 50% of qualifying expenses to 70% from 1 April 2015 to 31 March 2018. Mr Saktiandi Supaat and Mr Sitoh Yih Pin would be pleased to note that we will extend this higher grant quantum for a further two years till 31 March 2020.
As Mr Saktiandi Supaat has observed, to be successful, our SMEs must have the people to navigate different languages and cultures, as well as social, political and legal systems which are quite divergent. The ASEAN Leadership Programme will help equip Singapore business leaders with a deeper understanding of Southeast Asian markets, and the skillsets to lead business expansions in the region. Senior Parliamentary Secretary Low Yen Ling will elaborate on this and other related programmes to develop manpower capabilities.
Ultimately, for our companies to scale up to the next level of growth, capability development, innovation and internationalisation are deeply intertwined. We see this with companies like Jing King Technology Pte Ltd (JK Tech), that has established itself in chip cards and subscriber identity module (SIM) cards globally. To expand their business, the company has been exploring R&D in biometrics, electronic payments and data security. They have built a dedicated R&D team in Singapore, while seeking new opportunities in Vietnam, the Philippines, Indonesia and Thailand. Throughout this journey, they have tapped on Government support, including SPRING Singapore’s CDG as well as IE Singapore’s GCP scheme.
To better support companies like JK Tech scale up, we will consolidate the CDG and GCP into the EDG in the fourth quarter of this year. Mr Liang Eng Hwa and Mr Teo Ser Luck have asked how this will benefit companies. I think Mr Teo Ser Luck already knows the answers because he was navigating this terrain when he was in MTI. Nevertheless, EDG will give companies the flexibility to bundle internal upgrading activities, domestic projects and international expansion plans in one application. In other words, you are able to, in a more flexible and integrated way, plan and seek out Government help for your business strategy.
Even as we pursue these internationalisation and growth strategies, I agree with Mr Leon Perera that succession planning is an important issue for SMEs, especially the family-owned businesses. In this regard, as Mr Perera has already highlighted, there are several resources that SMEs can tap on. This includes information on succession planning and key issues to look out for on SPRING Singapore's SME Portal. They can also use the new EDG to engage consultants to help develop the succession plans and address strategic priorities and leadership gaps. They can also strengthen their leadership pipeline through leadership and management courses which are available under SkillsFuture Singapore.
But I do want to stress because I think Mr Leon Perera made the point about whether succession planning can be a condition for some of the Government schemes. I think that may tilt the balance because whilst we can encourage it, we can urge companies to think about this seriously, ultimately, the business owners have to take ownership. They have to decide and prioritise that succession planning is something that is of high priority and then undertake specific steps to put that in place. So, we have the tool kit, we have the general messaging and the entire gamut of stakeholders, whether it is our trade associations, consultants or Government department officers, they will impart the message. But we have to leave it to the business owners to ultimately make the choices and execute and act on it.
Let me turn to R&D because Ms Chia Yong Yong and Ms Foo Mee Har have asked about our R&D strategies and progress. R&D is integral to Singapore’s development and competitiveness. As Ms Chia Yong Yong has emphasised, this is a long-term endeavour that requires not just thoughtful planning but also perseverance through cycles, because the outcomes may not always be apparent. But we need to stay the course.
Under the RIE2020 Plan, we have made several shifts to harness technology and innovation to meet our national needs and to drive the next phase of economic growth. We invest about 1% of our GDP in RIE, which is comparable to the public spending of other small research-intensive economies. We focus on four domains: (a) advanced manufacturing and engineering; (b) health and biomedical sciences; (c) urban solutions and sustainability and (d) services and digital economy.
In all of these domains, there is both a national or broader social benefit possibility as well as an economic benefit possibility. I do not think the two work at cross purposes. In many cases, in fact, they converge.
The Government's investment in R&D has catalysed Business Expenditure on R&D (BERD) of $50.6 billion from 2006 to 2016. It is a growth rate of 6%. Both foreign and, increasingly, local companies have recognised Singapore's R&D value proposition and taken steps to deepen their R&D capabilities. This has also led to the creation of good jobs, with the number of Research Scientists and Engineers (RSEs) increasing from 22,000 in 2006 to more than 35,000 in 2016.
The point that Ms Chia Yong Yong raised was beyond RSEs, what sort of jobs are being created. When I describe some of the ecosystem outcomes that we have achieved, it might give you a sense of it although it is difficult to have a direct correlation measurement of the exact outcomes beyond the direct job creation an R&D project may result in.
Singapore's research efforts and outcomes are also acknowledged internationally and by global innovation reports. The Bloomberg Innovation Index has ranked Singapore as the third most innovative economy in the world. It takes into account outcome indicators, such as patent activity, high-tech density, productivity and manufacturing value-add.
We are also nurturing public-private R&D partnerships to yield both social and economic benefits. Let me use our work in skin research to illustrate. The Skin Research Institute of Singapore (SRIS) is a collaboration between A*STAR, the National Skin Centre and Nanyang Technological University (NTU) to build R&D capabilities that can address common medical conditions like eczema, diabetic skin ulcers and tumours. Such R&D capabilities can also yield economic benefits.
For example, the Ikeda Group, a local SME, has developed novel skincare products using A*STAR’s patented polymeric carrier technology. The technology allows active ingredients in the skincare serum to be loaded in individual carriers for greater effectiveness. Ikeda launched its new range of serums under the Irén brand in Singapore in December last year and plans to also export it.
More broadly, R&D boosts the innovation capacity and competitiveness of sectors. Singapore's excellence in skin research has been instrumental in anchoring global industry leaders like P&G, L’Oreal and Amore Pacific. These MNCs have established skin and hair research labs in Biopolis, which has contributed to the growth of innovation partners, such as ingredients suppliers and contract research organisations (CROs), including university spinoffs, driving the robust and organic expansion of the Consumer Care sector.
More broadly, A*STAR offers different avenues of support for enterprises with differing needs. Ms Chia Yong Yong cited several overseas examples of the modalities. I think this slide helps to illustrate the way we are going about it. This includes, firstly, direct engagement with companies through operations and technology road-mapping or project-specific collaboration agreements.
Second, it can include platforms, like Tech Depot, that offer plug-and-play solutions which address substantially the needs of SMEs which may not have the capacity to undertake bespoke R&D but they are able to adopt broader R&D and technology outcomes.
Third, the secondment of researchers to companies under T-Up to conduct R&D and also to develop new products and processes. This is a very successful programme by A*STAR where our researchers are actually seconded out to companies to work in these companies. In a not insignificant number of cases, the companies end up hiring them, taking them on full-time. That is a flow of talent that we are quite happy to encourage and support.
And finally, licensing arrangements under the Headstart programme where collaborating companies can tap on royalty-free, exclusive IP from A*STAR for the first 36 months. We are always happy to learn and adapt practices from other jurisdictions in terms of best practices. Indeed, A*STAR and NRF continue to do this on an active basis.
To punch above our weight and position Singapore as the Global-Asia node of technology, innovation and enterprise, we must have our finger on the pulse of global trends and ensure that our institutions are ready to respond to emerging opportunities. That is why A*STAR is proactively transforming itself to stay at the forefront of science and technology trends, help enterprises capture opportunities and attain higher levels of R&D outcomes and aspirations over the long term.
Over the past two decades, A*STAR has nurtured a strong base of capabilities to support the innovation capacity of our industries. Between 2011 and 2016, A*STAR worked on more than 12,000 industry projects, attracting more than $2 billion in research investments from companies through joint collaborations and other open innovation platforms.
In addition, with favourable licensing terms for local enterprises and the introduction of simplified licensing processes in 2013, the cumulative adoption of A*STAR licences has more than doubled from 191 in 2014 to 422 in 2016.
In general, I think we are going in the right direction. But more can be done and today's research and innovation landscape in Singapore and around the world is vastly different from that a decade ago. We must expect that it will continue to evolve. So, we are encouraging our firms to be more innovative and transform. Equally, we want our public sector agencies to also become nimbler and be better partners to enterprises on their innovation and transformation journey.
A*STAR aims to be more agile and flexible in the way it is able to harness research talent and funds to develop capabilities and skills at the leading edge and then transfer these technologies to industries in an even more efficacious manner than in the past.
A*STAR will do so primarily through a mechanism they call programmes that will bring together multidisciplinary teams from various institutions in Singapore in order to solve complex problems. Increasingly, many of the problems are of a multidisciplinary nature. You need not just someone from an engineering domain. You may need mathematicians, biologists and so on. This sort of structure is flexible and is able to draw on the talent that is needed in order to start addressing the more complex problems.
An example of this is A*STAR's AI Initiative. They call it A*STAR AI. It was launched recently in collaboration with the universities and industry. One of the solutions developed by the cross-disciplinary team under A*STAR AI is an automated real-time fault detection tool for predictive maintenance. This system has already been adopted by a few companies in the engineering and transportation sectors. A*STAR will elaborate further on its transformation process in due course.
Our universities are also undertaking more industry relevant research, the importance of which Ms Foo Mee Har emphasised. Beyond the examples I have shared of the linkages between A*STAR and industry, the Ministry of Education's (MOE's) framework for the allocation of research funding to autonomous universities also takes into account industry collaboration, such as the number of industry projects and the amount of industry co-funding for R&D. As a result of this industry alignment, we have seen an increase in the number of licence agreements between the universities and industry, from about 20 in 2010 to 95 in 2016. It is on the uptick and we are seeing more of this happening. Funding models that are being used by NRF and the broader Research, Innovation and Enterprise Council (RIEC) system encourage more of these interagency collaborations together with the private sector.
International collaborations also help us to stay abreast of global research and industry developments. The Campus for Research Excellence and Technological Enterprise (CREATE) brings together local and international researchers from diverse backgrounds to work on areas of strategic interest. This helps with knowledge transfer, capability-building and cross-fertilisation of ideas.
One other initiative that is taking us closer to the vision of becoming a Global-Asia node of technology, innovation and enterprise is GIA, something that the Finance Minister talked about, and many Members would already have heard about. The aim is to create linkages with global startup hubs, to help entrepreneurs and students gain access to the global innovation network and work with like-minded companies. GIA is now present in San Francisco, Jakarta, Bangkok and Beijing. Members would notice that several or the majority of these are Asian cities. That is not by accident. It is actually a deliberate effort on our part to develop a deeper innovation network in Asia and also within ASEAN.
The aim at the end of the day is to serve as an in-market entry point for Singapore entities to connect with the business and innovation community in these cities. Over the next four years, GIA will expand its reach across ASEAN and to other startup hubs around the world.
Let me now turn to the topic of energy. Around the world, we know that countries are taking active steps to reduce their reliance on fossil fuels and meet their climate change targets. Against this backdrop, it is also in the interest of our companies to become more energy-efficient and reduce their carbon footprint. Mr Thomas Chua's understandable concerns about the impact of the carbon tax on businesses should be mitigated to some extent by the fact that we are starting with a lower uniform rate of $5 per tonne of emissions from 2019 to 2023, and we are focusing on the large emitters. This will help all businesses adjust to the new system and encourage them to reduce emissions. We will closely monitor our economic competitiveness, international climate change developments, and the progress in meeting our emissions abatement goals, and factor these into any future reviews of the carbon tax.
Meanwhile, we will also set aside funds from 2019 to enhance support for companies, including SMEs and power generation companies, to improve their energy efficiency. As the Minister for Finance has stated, we are prepared to spend more than the expected carbon tax revenue of nearly $1 billion in the initial five years to support worthwhile projects that deliver the required emissions abatement.
Besides promoting energy efficiency on the demand side, we are also adapting policies on the supply side to better serve the needs of businesses and households. For example, the Energy Market Authority (EMA) has progressively liberalised the retail electricity market to allow more consumers the flexibility of choosing an electricity retailer and price plan that best meet their needs. We have steadily lowered the threshold for contestability to the present average monthly electricity consumption of at least 2,000 kWh. To date, about 50%, or about 49,000 accounts, of businesses that are eligible for contestability have switched to buying electricity from a retailer of their choice.
Mr Charles Chong has asked what consumers can expect from market liberalisation. The OEM will allow the remaining small businesses and households the same flexibility that I have just described. OEM will commence in Jurong on 1 April, with about 120,000 households and small businesses. These consumers will receive a notification letter and information booklet from EMA in the next few weeks, which will explain how they can benefit from greater choice and flexibility in their electricity purchases. Retailers are also expected to start marketing to Jurong consumers towards the end of March.
Mr Charles Chong is correct in expressing some concerns about whether consumers will be inundated with marketing materials. EMA has been working closely with the retailers to have a Code of Conduct, if you will, in terms of how they can market their products and to minimise the kind of confusion or stress that may be caused at the consumer end. There will be an online platform which can help consumers to easily compare the standard price plans offered by different retailers. That is another aid for consumer decision-making. And those who prefer to stay with Singapore Power (SP) on the regulated tariff can continue to do so and they will be no worse-off. So, in other words, you also have a \"do-nothing\" option and things will just carry on as per normal.
This soft launch in Jurong will allow EMA, SP Group and retailers to gather feedback and finetune processes, before we continue extending the OEM to the remaining 1.3 million accounts, mostly households, in the second half of 2018.
So, Chairman, if I can summarise, the new economic opportunities and challenges that I have outlined also call for new approaches. Everyone needs to transform, but no two transformation journeys are the same. Each company and sector must find its own path, based on its unique circumstances. The Government will provide resources and support for companies to develop their capabilities, to innovate and to internationalise, no matter what their starting point is.
The need to transform applies not just to individuals, enterprises and industries, but equally to Government agencies. We have not shied away from reinventing ourselves, both in terms of organisational structures and processes, for example, in the formation of ESG and some of the work that A*STAR is undertaking, and also in relation to our policies and programmes. We are changing, consolidating or adapting our programmes to new requirements in the market.
We believe, ultimately, it will take the collective effort of all stakeholders for this transformation to succeed. We also believe that if all of us come together, with all hands on deck, we can position ourselves well to achieve sustainable growth and opportunities for all.
The Chairman: Senior Minister of State Sim Ann.
The Senior Minister of State for Trade and Industry (Ms Sim Ann): Mr Chairman, over the past year, I have had the opportunity to meet and listen to many SME business leaders. They see the world changing around them and know the urgency of transformation. Many have pointed out that opportunities abound. First, consumer markets in the region are growing, and there is much goodwill towards Singaporean brands and products. Second, technology has enabled new business models to flourish and sharpen businesses' competitive edges.
I believe SMEs want to know what concrete steps they can take to seize these opportunities and remain relevant and competitive. The Government knows that it can be daunting to try new business strategies. This is why we, and our many partners, have committed to working with our SMEs throughout their transformation journeys.
The formation of ESG is a natural progression, born of the recognition that capability-building, innovation and internationalisation are increasingly intertwined. Minister for Industry Iswaran has already spoken on how ESG will combine the expertise, resources and networks of SPRING Singapore and IE Singapore to build on their good work.
Mr Teo Ser Luck raised the question many SMEs have on their minds: how exactly will ESG and EDG affect the Government's support for their businesses? The new EDG will support companies of all sizes in their growth journeys. We will extend the enhanced grant support of up to 70% for SMEs for another two years, instead of reverting to 50%. EDG is one grant, with a single application process, combining SPRING Singapore's CDG and IE Singapore's GCP scheme. It will give more holistic assistance to companies who can make use of the same grant to upgrade, innovate or venture overseas, or any combination of these strategies. This, in turn, encourages companies to think holistically about their own growth strategies.
I thank Ms Foo Mee Har for illustrating how a business can work with multiple agencies to modernise itself. Let me share one more example. Castlery has worked together with both SPRING Singapore and IE Singapore for capability building and internationalisation. At home, Castlery built up its internal capabilities by developing a warehouse management system with the help of SPRING Singapore. This system optimised Castlery’s warehouse space and inventory management, resulting in a significant increase in inventory capacity and sales per worker. This allowed Castlery to scale its operations quickly as it expanded overseas. In venturing abroad, Castlery tapped on IE Singapore's support and network of business contacts to quickly penetrate the market in Australia. The two agencies’ support and grants have helped Castlery achieve faster growing sales and the launch of its flagship store in Sydney in July last year, its first overseas. And there are many other companies that have benefited in a similar manner from SPRING Singapore and IE Singapore’s support.
With the establishment of ESG in April 2018, enterprises like Castlery will have a single key point of contact at ESG rather than working with SPRING Singapore and IE Singapore separately. Enterprises will be able to discuss their growth strategies with ESG to determine the best grants and programmes for their stage of growth.
EDG can support solutions of a very complex nature. For businesses that want simpler solutions for improving productivity, pre-scoped productivity solutions are a tried and tested way to achieve quick results.
Over the past few years, our businesses have benefited from various grants supporting basic productivity upgrading, such as SPRING Singapore’s ICV. Now, as businesses enter the next phase of transformation, they may require more substantial investments. PSG, announced by the Minster for Finance, will offer pre-scoped solutions developed in conjunction with industries’ lead agencies. Mr Liang Eng Hwa asked how it will improve support. PSG will support the adoption of IT solutions and equipment aligned to the ITM strategies.
One example of an industry-specific solution that will be supported under PSG is the Digital Ordering and Payment System. ENBU, a Japanese restaurant in Suntec City, adopted a version of this system with support from SPRING Singapore. The solution combines both Tabsquare’s e-menu solution with PayPal's payment solution. Customers have the freedom to order and pay without delay. There is no need to wait for staff to serve them. If customers have concerns about entering their payment details on an unfamiliar device, they can also complete the payment on their own phones. For ENBU, the system has reduced cash handling, and increased productivity and efficiency. The solution has also freed ENBU’s staff to better serve customers’ needs.
We hope to see more companies adopt similar solutions to enhance their productivity. To enable them to do so, we will continue to simplify the overall grant landscape. PSG will start with a simplified application process and by streamlining at least three pre-scoped grants: SPRING Singapore's ICV, the National Parks Board’s Landscape Productivity Grant (LPG), and the Infocomm and Media Development Authority’s (IMDA's) support for pre-scoped solutions under the SMEs Go Digital Programme.
The Government will provide up to 70% funding support for PSG to help companies committed to transformation. To better support businesses with heavier investments for longer time commitments, the grant caps have also been raised and customised for each industry.
PSG will be one of the grants on the Business Grants Portal (BGP). Ms Foo Mee Har and Mr Teo Ser Luck asked how we can continue making it simpler for business to learn about assistance schemes and transact with the Government. BGP represents one way that the Government has been responding to these calls.
Rather than approaching multiple agencies on their grants, a company only needs to fill in its project information on BGP's shorter, simpler online forms, and the relevant agency will process the application. Because the BGP stores and pre-populates basic information like a company’s details, forms can be filled more quickly. As a result, BGP has been very well-received by companies since its launch in January 2017, and nine out of 10 indicated that they were satisfied with the portal.
Another way the Government has been making Government transactions more business-friendly is LicenceOne. Launched in 2016, LicenceOne is an online portal that helps businesses comply with regulations through simplified licence application processes. LicenceOne's e-Advisor feature will shortlist relevant licences based on applicants' business needs and intent. I am encouraged by the feedback from businesses. Nine out of 10 surveyed indicated that the portal is easy to use, and that they would recommend LicenceOne as the go-to place for licensing-related matters.
We hope that these initiatives will simplify transaction processes for businesses with the Government, an especially pertinent point in the business environment, where time is money. Presently, BGP hosts six grants across five agencies, and LicenceOne has 118 licences from 20 agencies. More grants and licences will be added to BGP and LicenceOne respectively over time. The Government will continue to look out for ways to make these processes more business-friendly.
I thank Mr Ang Hin Kee for covering the many initiatives to help our SMEs and signalling the Labour Movement's willingness to partner the Government as a ground enabler for the manpower initiatives that Senior Parliamentary Secretary Low Yen Ling will be elaborating on later.
When it comes to supporting our enterprises, the Government does not act alone. Our TACs are also key partners of our business community in industry transformation. TACs have deep knowledge of their industry and are well-placed to address key issues facing the industry. They help their members adapt to changes in the business environment, stay ahead of the curve, and make inroads into overseas markets. They also act as a bridge between the Government and businesses, enhancing collaborations and expanding reach.
We have seen TACs within and across industries step up and work together to support our enterprises. The Minister for Finance has mentioned the Logistics Alliance and SCCCI's Trade Association Hub (TA Hub). These initiatives facilitate the cross-pollination of ideas and help advance common interests.
In particular, the physical infrastructure of the TA Hub creates chances for TACs to interact informally, building a stronger TAC community based on mutual support and collaboration. That six more TACs have decided to join the 25 already in the TA Hub since its launch in November 2017 is testament that our TACs believe in the value of co-location, cooperation and collaboration.
As Mr Teo Ser Luck and Mr Thomas Chua have observed, our TACs are excellent multipliers and catalysts for industry transformation. The Government will continue to support our TACs to do so. The LEAD Programme is SPRING Singapore and IE Singapore’s flagship grant for TACs to drive industry initiatives, focusing on areas, such as internationalisation, technology and infrastructure, and business collaborations. In the past two years alone, LEAD has supported some 50 TAC-led projects, impacting more than 8,500 companies. LEAD was launched in 2005, and we have continually reviewed the scheme to improve our support to TACs. Last year, LEAD was not only expanded to support a larger base of TACs, but the maximum support level was also increased from 70% to 90% to support multi-TAC high-impact projects, both within and across sectors.
There are other programmes administered by various agencies that have similar objectives and funding support to TACs. TACs may be confused by the parallel programmes with some overlaps in areas, such as eligibility criteria, supportable activities scope, and funding support levels.
We are, therefore, introducing a consolidated LEAD programme which will be enhanced to support a wider range of TAC-led projects. Grants to TACs, such as SPRING Singapore's LEAD+ and TAC-led Collaborative Industry Projects, as well as STB’s Association Development Fund, will come under the consolidated LEAD. In addition, LEAD will support place management initiatives, by funding TAC-led projects under the Urban Redevelopment Authority's (URA's) pilot Business Improvement District (BID) scheme.
With consolidated LEAD support, TACs can spearhead holistic upgrading strategies that combine capability development with place management. ESG will work closely with URA and STB to ensure TACs can more easily understand and access the support to enable them in their industry transformation efforts.
The Government and TACs have strengthened the support system in place for SMEs to transform and grow. The time is ripe for SMEs to step up in the journey of transformation. There are SMEs which have taken the initiative to transform themselves, to laudable results. As Mr Liang Eng Hwa has noted, it has been a year since the launch of the Lifestyle cluster ITMs and there has been good traction for their strategies. Let me elaborate.
Mr Henry Kwek has asked for examples on specific initiatives to help industries in transformation and restructuring. To grow the top line, the Government and its key partners implement ITM strategies to help companies innovate and access new market segments.
Our SMEs have, from time to time, asked how they can access the benefits of our investments in technology and scientific research. Minister Iswaran mentioned that the Centres of Innovation are key multipliers for our ITMs. The Centres of Innovation set up by SPRING Singapore in partnership with selected polytechnics and research institutes, harness their laboratory facilities, skilled manpower and considerable networks to develop innovative technological solutions for SMEs.
One of our Centres of Innovation, the Food Innovation and Resource Centre (FIRC) at Singapore Polytechnic, supports food manufacturers in developing innovative new products. NuHoney is a local company that first started working with FIRC on product development in 2011. After four years of R&D, it successfully launched its product, a carbonated honey beverage made with no added sugar. The product won the Singapore Institute of Food Science and Technology’s Food Product Award for Innovation in 2015. I am happy to hear that NuHoney can also be found on shop shelves in the Philippines, Brunei and the Republic of Korea. NuHoney is already back to working with FIRC to develop new variants, with the export potential in mind.
ITM strategies are also tailored to address industry pain points. For the Lifestyle cluster, manpower initiatives are developed in close consultation with the industries.
We hear feedback from the food services, retail and hotel industries that the human touch is indispensable. To them, good service is a point of pride. We agree. This is why the Skills Frameworks for each of these feature delivery of good service and improvement of customer experience as key skills in customer-serving roles.
Some Lifestyle cluster companies may equate being productive and manpower-lean with poorer service. This need not be the case. By applying good design, it is possible to make processes more efficient while making customers happier. For example, Shangri-La Hotel embarked on an optimisation exercise supported by STB. It found that there were several inefficiencies in the operations of its Horizon Club lounge on the Executive Floor. Staff had to walk to opposite ends of the building or go up and down floors to get to the kitchen and storage rooms, leading to unnecessary delays. In the retrofit, Shangri-La sited the kitchen and storage areas next to the lounge and introduced self-service options that were designed to enhance guests' experiences. At the self-service bar, featuring a wide range of wines and spirits, guests can try their hand at mixing their own cocktails according to the provided recipes, or even invent one of their own. The lounge, once heavily-reliant on staff, achieved manhour savings of up to 45%, and its staff have welcomed the convenience of centralisation. With the self-service options, and faster service from staff who can be more attentive to guests' needs, the retrofitted Horizon Club has been very well-received.
Productive technologies also mean that staff spend less time on routine or tedious tasks, and more time providing better service to customers. For example, Tourego is a homegrown company that developed the world's first mobile tourist tax refund solution. With the Tourego app, visitors can have their tax refund tickets issued and stored in-app and no longer need to keep paper tickets. For retailers, staff do not have to manually take down tourists' personal details, saving time and manpower. To make Tourego possible, STB worked with Tourego and the Inland Revenue Authority of Singapore (IRAS) to ensure it obtained the necessary licences, and MTI's Pro-Enterprise Panel facilitated cooperation with Government agencies to ensure Tourego's solution complemented existing systems. To date, over 150 retail outlets benefit from the use of Tourego.
Innovation and design will continue to be vital tools for companies and remain a cornerstone in the development of brands in the Lifestyle industries. It is our hope that more of our brands will become household names and fly our flag overseas. There is no lack of energy, ideas or passion among existing or aspiring Singapore brand owners.
In food, we have established names like BreadTalk, Old Chang Kee, Jumbo Group and Peach Garden. Companies are diversifying and creating new products and offerings. Foodgnostic, through its retail brand Old Seng Choong, sells traditional festive treats with a twist.
In fashion, which faces intense competition from both global and local brands, we do not just have Charles & Keith. With your permission, Sir, may I ask the Clerks to distribute the Singapore Fashion Black Book. Members can find it on their seats. Produced by the DesignSingapore Council in collaboration with Singaporean tastemaker Daniel Boey, the book showcases the diversity and depth of Singapore design. There are brands like In Good Company with its women's wear and accessories, Carrie K's premium artisan-crafted jewellery, and Ling Wu’s exotic skin bags and accessories. Design is everywhere. The Singapore Fashion Black Book was also created in partnership with Commune, a homegrown furniture design and lifestyle company that sells sophisticated pieces for the modern home.
We must continue creating opportunities for our local companies and talent. We are building the platforms to support Singapore’s growing ecosystem of lifestyle brands and our wellspring of design talent. Design Orchard, jointly developed by STB, SPRING Singapore and JTC, will open by the end of this year. As a retail showcase featuring local brands, it will increase the presence of local designers along Orchard Road. As an incubation space, it will provide holistic support to local designers in capability development and internationalisation. Sixty local brands will be housed at the retail showcase, which will host monthly events for Design Orchard's visitors to get to know our local brands and designers.
Design Orchard will complement the ground-up efforts of our community, such as Carolyn Kan’s KEEPERS. Currently housed in the National Design Centre, KEEPERS curates homegrown lifestyle brands and tells the story of Singapore talent. Sir, in Mandarin, please.
(In Mandarin): [Please refer to Vernacular Speech.] Economic transformation is a long-haul journey which requires the participation of all our enterprises. While it is important to ensure the successful transformation of large enterprises, we must not overlook the other smaller enterprises. Such SMEs may be of smaller scale, but they have a significant presence due to their large numbers. After all, many of these SMEs and micro-enterprises provide essential services for our citizens' daily life, such as those in the food and retail industry. The most direct way to enable our citizens on the ground to feel the impact of economic transformation is to support these SMEs and micro-enterprises to transform and upgrade, so that they can provide new and better consumer experiences for the public.
Heartland shops are probably the most representative form of micro-enterprises. There are more than 14,000 Housing and Development Board (HDB) shops in Singapore’s 15 town centres and 110 neighbourhood centres. These heartland enterprises can be said to be unique to Singapore and are deeply linked to our HDB culture.
The rise of the digital economy continues to disrupt many businesses’ operating environments, including those of the micro-enterprises. Though many heartland shops still maintain a loyal base of customers who prefer the traditional way that heartland enterprises operate, younger customers have a different set of expectations in terms of the goods and services, and even the mode of communication and payment. They are also experts at online shopping and enjoy the convenience of items delivered right to their doorsteps. How our heartland enterprises can, with their small footprints, transform to attract younger customers while serving their more traditional customers will be key to their continued success.
Mr Chen Show Mao brought up the importance of diversity and vibrancy in our heartlands and suggested rental rebates as a potential approach. The Government closely monitors the property markets to ensure the stability and sustainability of rentals for businesses over the medium to long term.
To ensure that our HDB Neighbourhood Centres and precincts remain vibrant places for residents and businesses alike, HDB has adopted the following measures. When planning commercial spaces, HDB would take into consideration the number of residents and future development plans. In addition, when assessing bids for HDB shops, HDB would not only consider the rent which the bidder is willing to pay, but also the quality of the bidder's business concept. Furthermore, HDB’s Revitalisation of Shops Scheme provides funding for merchant associations to upgrade their shopping environment and carry out promotional events to attract crowds.
Many of the micro-enterprises have banded together to form various trade associations. The Federation of Merchants' Associations, Singapore (FMAS) is a collection of these associations and currently represents 41 merchants' and hawkers' associations. I am happy to see FMAS taking the lead in efforts to inject more vibrancy and drive productivity upgrading in our heartlands. One example is working with various Government agencies to develop pilot precinct development plans for Bedok and Ang Mo Kio to revitalise the area.
Its efforts are supported by SPRING Singapore through a LEAD project, which includes funding for a consultancy study and secondment of a public officer to FMAS. This example shows the Government's commitment in supporting TACs which have the resolve to transform, and working hand-in-hand with them to help enterprises to improve productivity, innovate, internationalise and upgrade skills. After all, there are over 200,000 enterprises in Singapore and the majority is made up of SMEs and micro-enterprises. It is not sufficient to solely depend on the Government’s one-on-one efforts to send the message of transformation to every single enterprise. TACs can amplify the reach of the Government's transformation efforts, and working closely with the TACs is a key component to successful industry transformation. The Government welcomes more TACs to work with us and get more enterprises to join us on this transformation journey.
(In English): Transformation does not have to be daunting. The Government has transformed itself and made it easier for our SMEs to take charge of their own upgrading and internationalisation. Together with our partners, we have created an environment for SMEs to seize the opportunities that the future economy presents.
To my fellow Members, if you are approached for help about how enterprises can benefit from the Government schemes, I want to reassure you that, at every step of an SME's journey, there is support. For SMEs seeking easy-to-digest solutions, they can check the SME Portal, access the BGP, or approach any of the 12 SME Centres island-wide for free business advice. For SMEs looking for more complex support, they can look to grants like the EDG or start a discussion with ESG. Throughout this, TACs will continue to spearhead initiatives that enhance the competitiveness and relevance of their industries. For those enterprises that have benefited from the Government’s and TACs' support, I urge you to share your experience with your business community and help spread the culture of mutual help.
For enterprises that are not already a member of a TAC, I encourage you to join one. If you are, I encourage you to consider stepping up to take a leadership role. And if you are already a TAC leader, I would like to thank you for your service and encourage you to continue working with partners to bring transformation to your industry.
Together, we can build a strong business ecosystem that will benefit all workers and enterprises in Singapore and allow us to remain relevant and competitive in the future economy.
The Chairman: Senior Minister of State Koh Poh Koon.
The Senior Minister of State for Trade and Industry (Dr Koh Poh Koon): Technological advancements have had a profound impact on our industries and businesses. Although change can be disruptive, it presents many opportunities. Some companies have already moved to transform their businesses and are today enjoying the fruits of transformation.
We want to help more companies seize these opportunities. The Government is ready to support them with initiatives customised to each sector. Some sectors I would like to highlight are the manufacturing and wholesale trade sectors. Mr Chairman, may I have your permission to display some slides on the LED screens later on in my speech, please.
The Chairman: Yes, please. [Some slides were shown to hon Members.]
Dr Koh Poh Koon: Thank you, Sir. Let me address the questions from Mr Sitoh Yih Pin and Miss Cheryl Chan on what the Government is doing to build a globally-competitive manufacturing sector.
Manufacturing remains an important pillar of Singapore’s economy. The sector accounts for around 20% of our GDP and around 14% of our total employment. Today, we have a diversified portfolio of high value-added manufacturing industries. Our products are exported to many markets globally. In 2017, Singapore’s manufacturing sector saw strong growth, and the sector continued to expand at a robust pace in January 2018.
However, the global manufacturing landscape is evolving. We are witnessing rapid technological developments in areas, such as robotics and the industrial Internet-of-Things (IoT). This presents two opportunities.
One, it is to establish Singapore as a globally-competitive advanced manufacturing hub. This will help attract strategic investments and anchor our position in global value chains.
Two, it is for our companies to gain a competitive advantage by prioritising three areas: (a) undertaking innovation; (b) adopting technologies, and (c) preparing their workers to thrive in tomorrow’s workforce.
I would like to explain the rest of these three points in greater detail in Mandarin. Sir, may I now speak in Mandarin, please.
(In Mandarin): [Please refer to Vernacular Speech.] In my English speech, I said that we must prioritise three things to achieve a competitive advantage. One, undertaking innovation; two, adopting technologies; and three, preparing workers to thrive in tomorrow's workplace.
First, innovation. Innovation is key to differentiating oneself from the competition. This can take the form of creating new products, finding business opportunities, and developing efficient means to optimise resources. Some manufacturing subsectors, such as precision engineering (PE), are already seeing the need for innovation. In 2016, PE companies invested 50% more in R&D, compared to the previous year. This is commendable.
One of the ways that SMEs can improve their innovation capacity is by tapping on A*STAR's Growing Enterprises through Technology Upgrade (GET-Up) initiative, which offers Operation and Technology Roadmapping (OTR).
Through OTR, SMEs can get A*STAR's guidance to customise a long-term growth strategy to realise new product or service offerings. The OTR provides SMEs with business strategies to assess consumer demand, challenges and potential markets. As of November 2017, A*STAR has engaged over 300 companies through OTR.
Plasmotech is one of these companies. It originally focused on manufacturing connectors and capacitors for the electronics industry. Through OTR, it has discovered opportunities in the automotive market. It invested around $1.7 million in equipment and infrastructure, hired a team of engineers to develop automotive components and entered new markets in 2016. Its sales have increased 20% year-on-year. We hope that more companies will see the value of innovation and enjoy similar benefits.
To extend the reach of OTR, A*STAR will work through lead Government agencies and TACs to launch consortium-style OTRs. This will bring together companies within the same sub-sector to chart out technology roadmaps for shared problem statements. Participating companies can then build on these shared roadmaps as base templates to further customise solutions for their needs. This arrangement allows more companies to leverage shared resources, such as industry experts and technology developers.
The first consortium-style OTR will bring together 16 food manufacturing companies, including Kee Song Group and Phoon Huat Pte Ltd, to identify common technology areas to improve productivity. These include shopfloor control systems and shelf-life monitoring solutions to reduce food waste.
Second, adoption of technologies. Besides improving innovation capacity, SMEs can adopt manufacturing technologies to optimise their processes and resources. This ensures that companies remain competitive and can benefit from upturns in external demand, as demonstrated by the strong productivity growth in the electronics and precision engineering clusters in 2017. In those clusters, real value-added per worker grew by 35% and 15% respectively.
To facilitate the adoption of technologies, we have put in place various support schemes. For companies considering the deployment of large-scale automation to improve productivity, SPRING Singapore offers the Automation Support Package (ASP) comprising grant, tax and loan incentives to offset costs.
One local company which has tapped on the ASP is Lingjack, a manufacturer of firefighting equipment. Lingjack previously depended on manual labour for almost 90% of its manufacturing processes. Through ASP, the company introduced new equipment to automate functions, such as polishing, welding and leak testing. As a result, Lingjack improved its manufacturing efficiency by almost 40% and is looking to expand its production capacity. It is also looking to manufacture higher value-added goods and is targeting an increase in revenue by up to 20% this year.
Companies which are looking for ready technology solutions can access the Tech Depot, jointly created by A*STAR, IMDA and SPRING Singapore. This is an online repository of plug-and-play productivity solutions which can be found on SPRING Singapore's SME Portal. The solutions cover areas, such as inventory and asset tracking and supply chain management. Since its launch in April last year, 45 solutions have been made available and more than 1,000 companies have adopted solutions from Tech Depot.
Third, prepare the workers. Even as companies review their strategies and plans, they should transform with their workers in mind. We strongly encourage companies to proactively prepare their workers for the changes ahead.
Univac, a precision engineering large local enterprise (LLE) that manufactures medical devices and life science consumables, is one such company. Univac not only embarked on transforming its business, but is also equipping its employees for the changes. Mr Yim Kong Ming, 59, is a Senior Quality Engineer with the company. His job used to be very manual, requiring significant time and effort for data collection.
Today, as Univac incorporates software applications in its processes, data collection is increasingly automated and seamless. These ongoing changes allow its workers to be redeployed to higher value-added tasks, such as data analysis. To prepare its employees for the changes, Univac assembled a team to provide training in the new software and technologies. The team also provides on-the-job support during the implementation phase to ensure that the engineers and technicians are competent and confident in operating the software.
Kong Ming appreciates how the digital transformation has made his job less laborious. Instead of having to manually collect the data, he has easy access to it on his digital devices. He can focus more on data analysis and problem resolution.
(In English): Over time, as our companies continue to improve their innovation capacity, adopt technologies and prepare their workforce, we will build up a strong local manufacturing base to support our vision of being an advanced manufacturing hub.
While I have spoken about the many schemes available to support companies, I understand that some companies are unsure how and where to begin their transformation journey. And this is a point Mr Sitoh Yih Pin raised earlier. As a first step, companies can use EDB's Singapore Smart Industry Readiness Index (SSIRI). This tool will help companies to self-diagnose the future-readiness of their organisational processes, technology usage and workforce skills. It is designed to be used by companies of all sizes in all sectors to determine how they may implement \"smart\" manufacturing operations. I encourage companies to sign up for the SSIRI workshops conducted by EDB to find out more. I will also speak more about the SSIRI later this month at the IoT Asia Conference 2018.
I would now like to speak about the Government’s efforts to maintain Singapore’s competitiveness as a global trade hub. Today, wholesale trade is a key contributor to Singapore’s economy, accounting for about 16% of GDP. However, the wholesale trade sector is lesser known to many Singaporeans. Most have the misperception that it involves working in warehouses. Actually, it is far from that. It is one of our economy’s largest and most diverse sectors, comprising more than 35,000 firms engaging in Business-to-Business (B2B) transactions for a wide range of goods, ranging from household goods and consumer electronics to food items and commodities. The sector is also external-facing, with over 80% of sales derived from international trade. This international aspect puts the wholesale trade sector in a prime position for growth over the next decade.
Across Asia, rapid population growth and rising consumerism are expected to fuel regional demand for goods like food, fuel and smart devices. To help local enterprises unlock these opportunities, the Government has worked to deepen our trade connections with ASEAN.
In September 2017, the Singapore Logistics Association (SLA) and Global eTrade Services (GeTS) launched \"hive\", a regional B2B trade facilitation platform. \"Hive\" supports companies in meeting cross-border trade compliance requirements for over 50 customs authorities in ASEAN and around the world. This allows companies to enjoy greater process efficiencies and seamless clearance, since \"hive\" will be linked to Singapore Customs. Preliminary response has been encouraging. In a mere five months, over 2,300 companies have joined the platform, with close to 4,000 transactions completed.
Yet, we must be prepared for how technological advancements, such as blockchain technology and data analytics, could revolutionise the way global trade is conducted in the coming years.
To help strengthen our trade ecosystem, we will establish the Trade Infrastructure Development Fund (TIDF) this year. This new fund, TIDF, will be offered as a grant to support companies which are looking to develop B2B e-marketplaces and innovative trade solutions. TIDF will also support initiatives to create a wider spectrum of financial value-added service offerings. These efforts will help support our wholesale trade companies to scale up and become more productive and innovative.
Sir, even as our industries and companies transform and seize the opportunities, we want our people to benefit from the good jobs that will be created. Senior Parliamentary Secretary Low Yen Ling will speak in greater detail about how our people can thrive in this new environment.
Much of my speech has focused on transforming and rejuvenating existing industries to future-proof Singapore’s economy. I would now like to address another part of the equation and, that is, how the Government is working to nurture startups as catalysts of growth.
The Chairman: Order. May I move the extension, please.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Extension of a Sitting","subTitle":"Motion","sectionType":"OS","content":"The Chairman: Pursuant to Standing Order No 2(5)(d), I propose to extend the time of this day's Committee Sitting to a period of up to 30 minutes. Dr Koh, please proceed.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Committee of Supply – Head V (Ministry of Trade and Industry)","subTitle":null,"sectionType":"OS","content":"[(proc text) Debate in Committee of Supply resumed. (proc text)]
The Chairman: Senior Minister of State Koh Poh Koon.
Dr Koh Poh Koon: Sir, Mr Charles Chong asked about the Government’s efforts to build up our startup landscape. Startups play an important role in our economy. They help to boost Singapore’s economic competitiveness through innovative ideas and disruption of existing industries, thus contributing to sector development and transformation.
In recent years, we have seen good growth in the number, contribution and quality of our startups. The total number of startups in Singapore grew from 22,000 in 2003 to 43,000 in 2016. They contributed $7.7 billion, or 1.9% of GDP in 2016. In particular, the number of tech startups increased from 2,800 to 4,300 in the same period, employing about 24,000 workers in 2016.
Startups in Singapore are also attracting a good level of investor interest and funding. In January 2018, local logistics startup Ninja Van raised over US$87 million in its Series C funding round, while late last year, homegrown gaming company Razer raised US$528 million in its initial public offering in Hong Kong.
These success stories are certainly not one-off. In Singapore, the venture funding activity and deal flows have multiplied significantly from 80 deals worth US$136.4 million in 2012, to 174 deals worth US$1.37 billion in 2017.
These developments reflect the growing quality and potential of startups here. This shows that our moves to distinguish Singapore’s startup scene through establishing a strong brand identity, strengthening our talent attraction efforts, and enhancing funding support are bearing fruit.
\"Startup SG\" was launched in March 2017 as a single brand identity to showcase Singapore’s startup ecosystem to the world. It also unified the Government's startup support schemes, making it easier for entrepreneurs to apply for support.
SPRING Singapore leveraged the Startup SG brand to organise the inaugural Startup SG competition, SLINGSHOT@SWITCH, in September 2017. The competition attracted more than 900 teams from over 30 countries. Media coverage of the competition and the Startup SG brand was extensive and helped to increase global mindshare of Singapore as a startup hub.
Second, to improve Singapore's attractiveness to global entrepreneurial talent, we enhanced the EntrePass scheme’s entry and renewal criteria in August 2017. Since then, the number of applications has more than doubled. This is an encouraging development. Given Singapore’s small size, we need to remain open to promising global entrepreneurial talent who can contribute to the vibrancy of our startup scene. This will help to seed future growth and good local jobs. In 2016, foreign startups generated a total of 9,800 local jobs. As a percentage share of the total employment generated by foreign startups, local jobs took up 54%, which constitutes an increase from 50% in 2012.
In one example, after Dr Bert Grobben's application for the EntrePass was supported in 2015, he incorporated a startup here called Budding Innovations. His company specialises in commercialisation of technology by working with companies to develop go-to-market strategies. Budding Innovations has since created five local jobs, of which three are PMETs.
Third, to strengthen funding support, we raised the cap and proportion of the Government’s co-investment funding share under Startup SG Equity last year. This aims to catalyse private sector investment into promising Singapore-based technology startups with IP and global market potential.
Building on this, SPRING Singapore appointed nine co-investment partners last month with the goal of further catalysing over $200 million into more deep tech startups in the growth sectors of Advanced Manufacturing and Engineering, Health and Biomedical Sciences, and Urban Solutions and Sustainability.
Beyond funding, the deep tech startups will stand to benefit from the resources and know-how provided by those various co-investment partners, which had been chosen for their expertise in the respective sectors. This includes help with technology translation, prototyping and manufacturing facilities, and strategic networks for development and commercialisation, thus working to shorten the startups’ learning curves and improving their chances of success.
To scale up, startups should seek out-growth opportunities, both locally and abroad. Startups can tap on partner networks which we have put into place. Last year, the Government worked closely with partners like the Action Community for Entrepreneurship (ACE) to strengthen startups’ access to smart financing and global networks. This included supporting the launch of ACE International Centre, which provides a landing pad for global startups and helps local startups to scale up and internationalise.
JTC has also developed LaunchPads at one-north and Jurong Innovation District (JID), which offer a range of spaces for startups to operate in and testbed their ideas. More importantly, LaunchPads serve as hubs to connect entrepreneurs with accelerators, incubators, venture capitalists and fellow entrepreneurs in related fields. This creates opportunities for knowledge sharing, collaboration and growth. At JTC LaunchPad@JID, JTC will work with partners to provide a one-stop prototyping centre where deep tech startups can leverage shared equipment for small batch production.
SPRING Singapore will also be launching the Startup SG (SSG) Network later this year. The SSG Network will be a one-stop database of information, as well as an e-community of startups and ecosystem players. This will support networking and facilitate business matching for startups.
With the establishment of ESG in April this year, startups will be able to leverage ESG’s international network of offices and in-market partners to scale up and expand into new overseas markets. ESG will advise startups on capability development and internationalisation, while providing them with integrated support through the schemes that were previously under SPRING Singapore and IE Singapore.
As the Minister for Industry, Mr S Iswaran, had earlier highlighted that the Government is adapting to better serve the needs of industry in Singapore’s new economic environment. As part of this, the Government will restructure the Competition Commission of Singapore (CCS) in April 2018 to take over SPRING Singapore's current role as the administering agency for the Consumer Protection (Fair Trading) Act (CPFTA). Besides the CPFTA, CCS will continue its current mandate of administering the Competition Act. To reflect its new role, CCS will be renamed the Competition and Consumer Commission of Singapore (CCCS).
I would now like to address Mr Lim Biow Chuan's question about consumer protection for online transactions, specifically his suggestions to restrict the use of mandatory arbitration clauses in standard terms and conditions and pre-ticked boxes for additional goods and services.
The CPFTA protects consumers against errant retailers who engage in unfair trading practices, regardless of whether these transactions take place online or offline. The Act provides for civil actions to be taken by consumers and by specified bodies against retailers that persist in unfair trading practices.
The Government adopts a balanced approach of supporting a pro-enterprise environment, while at the same time protecting consumers. In line with the principle of the freedom of contract, businesses are free to enter into consumer contracts, as long as it is mutually agreed to by the contracting parties.
Businesses and consumers should be alert to the clauses and conditions of any contract they enter into, including the fine print. Consumers should also take steps to protect themselves before making their purchases. This could include checking reviews on the reputation of retailers as well as their refund policies and mechanisms. Practices, such as using small print to conceal or mislead consumers on a material fact in relation to the transaction, can be considered as unfair practices under CPFTA.
We note Mr Lim Biow Chuan's suggestions on arbitration clauses and pre-ticked boxes. The Government will study them and take them into account when we next review the relevant consumer protection legislations. We will continue to monitor the situation and take appropriate actions, if necessary.
As I have elaborated in my speech, the Government has in place extensive support structures and initiatives to support our SMEs and startups on their transformation journey. What remains is for companies to step up and make the right investments today to seize new growth opportunities not just for themselves, but also for a better future for all of us.
The Chairman: Senior Parliamentary Secretary.
The Senior Parliamentary Secretary to the Ministers for Trade and Industry (Ms Low Yen Ling): Chairman, Minister Lim Hng Kiang, Minister Iswaran, Senior Minister of State Sim Ann and Senior Minister of State Koh Poh Koon have spoken about how our economy has to transform.
We face global trends, such as the shift in economic weight towards Asia and the emergence of new technologies. What does this mean for our people, Singaporeans? With these changes come opportunities. All of us, whether as students, employees and business owners, need to constantly learn, constantly adapt, and constantly embrace new skills and knowledge all the time. As the Government, we will strive to enable our people for the future, especially through (a) the deepening of relevant skills; and (b) the nurturing of global market expertise.
Mr Liang Eng Hwa, Mr Yee Chia Hsing and Miss Cheryl Chan talked about the importance of continuous skills upgrading in today’s evolving economic landscape. I agree that our people need to be enabled with the relevant skills for jobs today and in the future.
That is why it is absolutely crucial for every Singaporean to make lifelong learning a way of life. We are fostering this cultural change through initiatives, such as the national SkillsFuture movement as well as the Adapt and Grow programme. While we recognise that continuing education and training may not be easy due to many competing demands on our time, it is a necessary investment so that we can stay ahead for the future.
The changing economic landscape means that for some people, mid-career switches have become necessary. The types of jobs available may be different as some sectors undergo restructuring. For those looking to make a career switch into a different sector, the Government has developed a suite of Professional Conversion Programmes (PCPs) under the Adapt and Grow initiative. The PCPs are career conversion programmes which help mid-career jobseekers, including PMETs, to reskill and move into new occupations and sectors.
In July 2017, the Ministry of Manpower (MOM) identified five priority sectors with strong potential for PMET job creation. They are Healthcare, Infocomm and Media, Wholesale Trade, Professional Services and Financial Services. In partnership with Workforce Singapore (WSG), our economic agencies are working closely with companies as well as TACs to train and place local PMETs in these sectors.
Members have just heard from Senior Minister of State Koh Poh Koon talk about the Wholesale Trade sector. I will also use this sector as an example. In the Wholesale Trade sector, IE Singapore, Singapore Management University, International Chamber of Commerce Academy and WSG jointly developed a PCP called International Trading PCP. This provides training for the fundamental skills and knowledge of international trade, such as digital marketing, procurement, supply chain management and logistics. In the past one year, the programme has successfully placed close to 70 PMETs with trading companies since the launch of this programme in July 2017. So, it has been about seven to eight months.
Mr Kenny Ang is amongst those who has benefited from the International Trading PCP. After having worked in the Food Services sector for about seven years, Mr Ang was keen to make a career switch. Despite his lack of experience in Wholesale Trade, he was able, through the PCP, to pick up the relevant skills and knowledge that are needed. Mr Ang has since found employment with Raduga Pte Ltd, a distributor of mobility solutions and mobile phones. He manages the company's marketing campaigns and branding projects with regional partners.
The International Trading PCP is but only one of the many PCPs available. MOM will be giving further updates on the Adapt and Grow initiative. Chairman, please allow me to continue in Mandarin, please.
(In Mandarin): [Please refer to Vernacular Speech.] Just a while ago, I talked about the PCP and how it has helped more mature workers to make a mid-career switch by learning new skills to handle new jobs.
As we develop more training programmes, it is crucial to ensure that these programmes meet industry needs. Therefore, during the process of developing the ITMs, the Government has worked closely with employers, TACs, as well as trade unions, to identify the skills required in the relevant industries, and incorporate these skills into the skills framework of various industries. When an individual and company develops a training programme, everything becomes clear once they refer to the skills framework. To date, the skills frameworks for 16 industries have been launched. We have also launched the Workforce Skills Qualifications (WSQ) framework for 31 technical skills and competencies, and nine generic skills and competencies.
As we push for industry transformation and skills upgrading, employers are our most critical partners. One example is Hewlett Packard (HP) Singapore, which has actively groomed local talent through programmes, such as the learning platform \"Brain Candy\" and other graduate programmes. These training initiatives in new fields, like 3D printing and data analytics, enable their employees to keep up with changes in the industry and cope with new jobs and new demands. In response to the SkillsFuture Programme, HP recently introduced 20 employees as Growth Mindset Ambassadors under an inhouse initiative. These ambassadors will be tasked with promoting lifelong learning throughout the organisation.
The Government urges more employers to promote training for their workers and encourage workers to upgrade their skills, just like HP Singapore. With the rapid development of new technologies, every company has to keep pace with the changes in disruptive technologies, and ensure their employees continue to grow, so that their company continues to grow as well. It is often said that a hardworking employee is a good employee. Similarly, employers who encourage employees to work hard and learn are also good employers. Companies that take training seriously and reward employees accordingly will also be able to attract and retain good workers.
Ultimately, if employees are equipped with industry-relevant skills that enhance their productivity and support the growth of the company, employers also stand to benefit. Hence, promoting skills upgrading amongst employees is the ultimate key to maintaining the long-term competitiveness of businesses.
(In English): My colleagues have highlighted the need for companies to venture beyond our shores, especially to the rest of Asia. A lack of familiarity with overseas markets is often cited by companies as the biggest obstacle to internationalisation. I agree with Mr Yee Chia Hsing that our enterprises and our people need to develop greater global market expertise to capture Asia's potential.
The Government is committed to helping Singaporeans build up international networks and cross-cultural awareness through market immersion and overseas training programmes. These programmes are targeted at individuals across a range of ages and levels of experience, from our young students to our current and future business leaders.
For our students, we have the SkillsFuture Young Talent Programme (YTP). YTP provides our students with opportunities for overseas internships and work-study programmes in the fast-growing Asian markets, including Southeast Asia. YTP is open to students in universities, polytechnics and the Institute of Technical Education (ITE). I am pleased to report that over 5,000 students have benefited from YTP to date. And over the next three years, another 3,000 students can look forward to being sent out under this initiative.
On behalf of MTI, I would like to thank our industry partners and our post-secondary educational institutions (PSEIs) that have grown the YTP to this scale since its launch in 2012. Many students speak of their enriching experiences. With your permission, Mr Chairman, may I display a photo.
The Chairman: Yes. [A photo was shown to hon Members.]
Ms Low Yen Ling: This is ITE College Central's Ms Lim Siying. Last December, Siying spent a stint working at Big C Supercenter in Lamphun, Thailand. During her stint with the hypermart operator, Siying led a group of 18 trainees and managed the inventory, labelling and a promotional campaign for the cosmetics section. Siying shared with us that this exposure has sparked her interest in the different Southeast Asian markets. She observed that the different Southeast Asian markets have diverse leadership and business styles.
She shared that the stint has also broadened her horizons and led her to make many friends overseas. And she is quite sure that whether she works for a company or if she becomes a business owner, these friendships with many different nationalities will serve her very well throughout her lifetime. And that is the impact we hope to make via YTP. Thus, YTP not only offers students valuable opportunities for cross-cultural learning, they also learn to venture out of their comfort zones and build networks in today's increasingly interconnected world. So, that is for students.
How about our current and future business leaders? Our current and future business leaders are able to tap on SkillsFuture Leadership Development Initiative (LDI) to enhance their growth and international exposure to key overseas markets.
In his Budget Statement, the Minister for Finance announced the launch of the new ASEAN Leadership Programme under the LDI. Earlier, Minister Iswaran also spoke about the LDI ASEAN Leadership Programme. The ASEAN Leadership Programme offers opportunities for business leaders, current and future, to gain overseas market immersion and training that are vital for the development of their global market expertise.
As our Singapore companies expand throughout ASEAN and beyond, it is crucial that we have a pipeline of talent ready to lead and support these efforts. The ASEAN Leadership Programme will focus on creating a vibrant pool of business leaders who understand the unique business environments and cultures of Southeast Asian markets. These countries offer significant growth opportunities for our companies, especially as ASEAN continues to integrate.
The ASEAN region is an important one. ASEAN’s GDP is expected to grow 5.2% annually from 2018 to 2020. By 2030, ASEAN could become the fourth largest single market in the world, after China, the US and the EU. With more than 600 million people, and a middle class that is expected to increase from 38 million households in 2015 to 161 million middle-class households in 2030, ASEAN has lots of promise and untapped potential.
In the second half of this year, the ASEAN Leadership Programme will be launched by ESG and its partner, the Human Capital Leadership Institute. Besides the knowledge of business cultures and leadership styles in key Southeast Asian markets, the ASEAN Leadership Programme will also arm participants with the chance to go in-market to learn from as well as to network with both private and public sector leaders.
This not only helps our business leaders better navigate the region and capture the emerging trends, it extends the connections and growth into new markets. The ASEAN Leadership Programme is expected to support more than 100 Singaporean participants over the next three years.
In conclusion, the Government is deeply committed to enabling Singaporeans with the skills and knowledge to stay relevant. However, we cannot do this alone. We need employers, TACs, unions, PSEIs and training providers to all work closely together to empower our people.
On the individual level, we each has to take responsibility for our future by embracing lifelong learning. Only then, can we capture new potential; only then, can we grow in step with the changes; and only then, can we rise to overcome the new demands of tomorrow. Thank you and, on behalf of the MTI team, I want to wish everyone a happy Chap Go Meh, the 15th day of the Chinese New Year.
The Chairman: Mr Liang Eng Hwa, would you like to withdraw the amendment?
Mr Liang Eng Hwa: Thank you, Mr Chairman, it looks like the more than two hours of download have cleared all our doubts and there are no clarifications from us. It leaves me to thank Minister Lim Hng Kiang and let us congratulate him on the successful conclusion of the CPTPP or the TPP-11. I also thank Minister Iswaran, Senior Minister of State Sim Ann, Senior Minister of State Koh Poh Koon and Senior Parliamentary Secretary Low Yen Ling for their very comprehensive replies to our cuts. I also want to thank all the Members who stayed till the end of the session, really testing the adjournment time limit. With that, I beg leave to withdraw my amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $977,755,000 for Head V ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $5,181,486,800 for Head V ordered to stand part of the Development Estimates. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Committee of Supply Reporting Progress","subTitle":null,"sectionType":"OS","content":"The Government Whip (Mr Chan Chun Sing): Chairman, may I seek your consent to move that progress be reported now and leave be asked to sit again on Monday, 5 March 2018?
The Chairman: I give my consent.
[(proc text) Resolved, \"That progress be reported now and leave be asked to sit again on Monday, 5 March.\" (proc text)]
[(proc text) Thereupon Mr Deputy Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]
Mr Chan Chun Sing: Mr Deputy Speaker, I beg to report that the Committee of Supply has made further progress on the Estimates of Expenditure for the financial year 2018/2019, and ask leave to sit again on Monday, 5 March 2018.
Mr Deputy Speaker: So be it.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Adjournment","subTitle":null,"sectionType":"OS","content":"[(proc text) Resolved, \"That Parliament do now adjourn to Monday, 5 March 2018.\" – [Mr Chan Chun Sing.] (proc text)]
Adjourned accordingly at 8.22 pm.
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