1 Mr Zhulkarnain Abdul Rahim asked the Minister for Education what is the education programme on child abuse and domestic violence awareness and the channels available for Primary school students to alert teachers or the authorities should they or any of their family members are in an abusive or violent relationship.
\tThe Minister of State for Education (Ms Sun Xueling) (for the Minister for Education): Mr Speaker, Sir, the safety and well-being of every child is of utmost importance in our schools. In Primary schools, students are taught personal safety and how to safeguard themselves against abuse in an age-appropriate manner. Students are also equipped with skills to seek help. This includes listing the trusted adults whom they can turn to for help. They are also encouraged to look out for their peers and seek help for those who display any signs of distress.
There are also system-wide efforts to support children who are victims of abuse and domestic violence. Students who face such situations can report them to their Teachers, School Counsellors or Student Welfare Officers. Teachers also monitor the well-being of the students and look out for students who are at risk of such abuses. All School Counsellors and Student Welfare Officers are trained to use the Child Abuse Reporting Guide which was jointly developed by MSF and the Ministries with frontline staff working with children, for MOE, MOH, the Singapore Police Force. In turn, the School Counsellors train the teachers in their school to pick up signs of child abuse using the Sector Specific Screening Guide (Education).
Principals report suspected child abuse cases, including exposure to family violence, immediately to the Child Protective Service, and work closely with the Child Protection Officers and/or Approved Welfare Officers to ensure that timely intervention is provided for the children involved.
\tMr Speaker: Mr Zhulkarnain.
\tMr Zhulkarnain Abdul Rahim (Chua Chu Kang): Mr Speaker, Sir, I thank the Minister of State for the clarification and answer. I understand that there is a guideline and a framework for the reporting and identifying of child abuse cases amongst Primary school students. What I am concerned with would be the voiceless amongst the vulnerables. That is, the Primary school students who will not be able to voice out in terms of abuse or any trauma that they are facing.
I would like to ask the Minister of State whether the Ministry can consider any art therapy or other indirect counselling sessions to identify these signs of trauma or child abuse. For instance, perhaps, we can equip students with some form of indirect messaging to signal that they are facing such problems.
For instance, in Poland and in certain countries, they have \"Signalling for Help\" – you put your thumb between these two fingers and show it as a sign that there is some form of violence happening in the home. This can be happening during a Zoom call or session.
These are the kinds of things that perhaps Primary school students can be more aware of, that they should not be rendered voiceless and helpless.
\tMs Sun Xueling: I thank the Member for his supplementary question. Indeed, we are always concerned about young children. In Primary schools, students are taught in Primary 1, as young as from Primary 1, about their personal rights to safety and how to safeguard themselves. This takes place during the Form Teacher Guidance Period. These are lessons which are part of the Character and Citizenship Education. These lessons are mandatory for all schools to deliver. They help students recognise that they can seek help from trusted adults when they are hurt or perhaps in a variety of ways.
For instance, if someone has caused them physical pain, if someone has touched them in a way that made them feel confused, uncomfortable, sad, or if someone has touched them in their private areas without good reasons, or if someone has forced him or her to touch the adult, or someone has told them not to tell anyone that he or she had been touched.
Teachers go through these scenarios with students. But we recognise that young children may or may not have the verbal skills to be able to communicate effectively.
I thank the Member for suggesting signalling communication methods. He had mentioned art therapy. Schools do use different methods. They could perhaps use journalling, for instance. Teachers are also trained to pick up these non-verbal cues. If young children should, through their drawings, suggest that there are things happening at home that they are not comfortable with, that perhaps suggest family violence or abuse, teachers are trained to pick this up.
But we can all imagine that different children express themselves differently. What is most important is that our teachers are sensitised and have trusting relationships with the children. The children know that they can go to the teachers if they feel uncomfortable, if they had been hurt in any way.
There are potentially different ways and methods that teachers can develop, for the children to be able to reflect and communicate their emotions. I would not rule any of them out. And I thank the Member for his suggestions.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Long-Term Visit Pass and LTVP Plus Holders in Workforce","subTitle":null,"sectionType":"OA","content":"2 Mr Leon Perera asked the Minister for Manpower (a) what is the current number of Long-Term Visit Pass and Long-Term Visit Pass Plus holders who are part of the workforce; and (b) how many of such pass holders are self-employed.
\tThe Minister of State for Manpower (Ms Gan Siow Huang) (for the Minister for Manpower): Mr Speaker, Long-Term Visit Pass (LTVP) or Long-Term Visit Pass Plus (LTVP+) holders are the ones who are foreigners who are here in Singapore and we facilitate their stay here.
Foreign spouses or unmarried children under 21 years old of Singapore Citizens (SC) or Permanent Residents (PR) who have LTVP or LTVP+ can work in Singapore if they are also issued with Letters of Consent (LOC) or Pre-approved Letters of Consent (PLOC). Other LTVP holders, such as parents of citizens and Permanent Residents can work in Singapore if they are also issued with a regular work pass.
As at December 2020, there are 17,890 LTVP and LTVP+ holders who are part of our workforce. Of this, 190 or about 1% are self-employed. Collectively, the employed LTVP and LTVP+ constitute about 0.5% of our workforce.
\tMr Leon Perera (Aljunied): I thank the Minister of State for a very comprehensive answer. I just have one small point of confirmation, which is to confirm that there is no legal or regulatory impediment for LTVP holders to be self-employed. And I think the Minister of State did say 1% of them are self-employed. So, I just wanted to confirm that.
The context for that is that self-employment could also be quite useful for them to support themselves and their Singaporean children in these difficult times. So, I just wanted to confirm that there is no impediment or there is no difficulty or confusing procedure for them to go through to obtain the ability to be self-employed.
\tMs Gan Siow Huang: I thank Mr Leon Perera for the supplementary question. We do allow self-employment amongst our LTVP and LTVP+ holders. However, to be classified as self-employed, they would need a valid LOC/PLOC and be hired by the same firm for which they are listed as director, partner, limited partner or sole proprietor in the Accounting and Corporate Regulatory Authority's records.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"HDB Flats Sold Under Open Booking Scheme","subTitle":null,"sectionType":"OA","content":"3 Mr Gan Thiam Poh asked the Minister for National Development (a) how many HDB flats have been sold under the Open Booking scheme since it was launched in June 2019, broken down by room types; and (b) whether HDB will consider (i) injecting fresh supplies of flats more frequently and (ii) increasing the number of flats available under open booking for interested buyers.
\tThe Minister of State for National Development (Mr Tan Kiat How) (for the Minister for National Development): Mr Speaker, the Housing Development Board (HDB) launched the open booking of flats in June 2019. This allows home seekers to apply for a flat online and get their flat selection appointment on a first-come-first-served basis, which can be as early as the next working day.
As of 22 February 2021, a total of 1,521 flats, comprising 46 2-room Flexi flats, 273 3-room flats, 601 4-room flats, 597 5-room/3Gen flats, and four Executive flats, have been booked under open booking.
At present, HDB suspends open booking twice a year to inject a fresh supply of flats. The majority of flats offered under open booking comes from the pool of flats that remain unselected after the twice-yearly Sale of Balance Flats (SBF) exercises.
HDB has been exploring ways to offer more flats through open booking. For example, since February 2020, HDB has ceased the Re-Offer of Balance Flats exercises, so that more of the unselected flats from the SBF exercises can be offered directly for open booking. HDB will continue to refine its sales processes to better meet the needs of home seekers.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"HDB Flats Resold to HDB in Past Five Years","subTitle":null,"sectionType":"OA","content":"4 Mr Gan Thiam Poh asked the Minister for National Development (a) in the past five years, how many HDB flats have been resold to HDB, broken down by room type; (b) what is the reason that these flats are resold to HDB instead of in the open market; and (c) whether HDB will consider assisting these sellers by offering their flats in HDB's open booking system for interested buyers to consider.
\tThe Senior Minister of State for National Development (Ms Sim Ann) (for the Minister for National Development): In the past five years, about 1,700 flats were surrendered to the Housing and Development Board (HDB). Of these flats, about half were 2-room flats, one-sixth were 3-room flats and one-third were 4-room or larger flats.
About 1,000 of the surrendered flats were short-lease flats, comprising Studio Apartments, 2-room Flexi flats bought on a short lease, and flats whose owners had opted for the Lease Buyback Scheme. Owners of short-lease flats who no longer wished to retain their flats or who had become ineligible to do so, are required to surrender their flats to HDB. They are not allowed to sell them on the open market.
The remaining 700 flats were surrendered to HDB mostly due to changes in the owners’ circumstances within their Minimum Occupation Period, which rendered them ineligible to own an HDB flat. As these owners had not fulfilled their Minimum Occupation Period, they were not allowed to sell their flats on the open market. The most common reasons for surrender of flats were divorce, break-up of fiancé-fiancée relationship and annulment of marriage.
HDB compensates flat owners for the surrendered flats, and offers them for sale through the Sale of Balance Flats (SBF) exercises. If the flats remain unselected after the SBF exercise, they may then be made available under open booking.
\tMr Speaker: Mr Lim Biow Chuan.
\tMr Lim Biow Chuan (Mountbatten): Thank you, Mr Speaker. I just wanted to ask the Senior Minister State this: I understand that for flats that are returned to HDB, HDB imposes a penalty of 5% on the value of the flat. Alternatively, they only compensate only 95% of the value of the flat. Considering that most of these flats can be sold back into the open market at a similar price, would HDB consider lowering the penalty imposed such that the owners who have to return the flats, for whatever reasons, will not suffer such a big loss?
\t
Ultimately, I think the question is, because HDB is not going to make a loss on the resale of the flat, why should the loss be passed down to the applicant who had to surrender the flat?
\tMs Sim Ann: Mr Speaker, may I clarify with the Member that he is referring to flats that have not yet met the minimum occupation period (MOP)?
\tMr Lim Biow Chuan: I refer to flats that have either been surrendered because they have not met the MOP or flat bookings that were cancelled because parties were not able to proceed with the flat purchase due to either the marriage breaking down or the parties not being able to go ahead with the marriage.
So, in either instances, they would suffer. If you cancel the sale and purchase agreement, there is a penalty of 5%. If you have taken over the flat and then you have to surrender the flat due to divorce or whatever reason, the HDB will only compensate you 95% of the purchase price.
Again, the question really is: if the flat can be sold back at either the same price in the open market or a better price, why should the loss be taken by the applicant who had the misfortune of not meeting the MOP or had to surrender the flat?
\tMs Sim Ann: Mr Speaker, as the Member is aware, the reason why we have subsidised housing is to help our Singaporeans have a roof over their heads. The subsidies for housing is something that is very important and which we would allocate to Singaporeans based on eligibility conditions.
For the minimum occupation period, it is there to also deter speculative purchase so that we can be fair to all Singaporeans who aspire to be HDB homeowners. Therefore, the reasons for the conditions that govern the surrender of flats are not so much determined by whether or not there is resale value to be had from those flats, but really to ensure that when flat owners enter into the commitment to purchase an HDB flat, they understand the eligibility conditions and that they will abide by them. We do this in order to be fair to everyone.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Increasing Number of Patients and Subsidy for Pre-implantation Genetic Screening","subTitle":null,"sectionType":"OA","content":"5 Mr Louis Ng Kok Kwang asked the Minister for Health whether the Ministry can allow any patient regardless of prognosis to participate in the pilot for Pre-implantation Genetic Screening (PGS) so as to increase the number of patients enrolled under the pilot study.
6 Mr Louis Ng Kok Kwang asked the Minister for Health (a) what is the average cost for participating in the pilot for Pre-implantation Genetic Screening (PGS); and (b) whether the Ministry can consider completely subsidising these costs so as to increase the number of patients enrolled under the pilot study.
\tThe Parliamentary Secretary to the Minister for Health (Ms Rahayu Mahzam) (for the Minister for Health): Mr Speaker, may I take Question Nos 5 and 6 together?
\tMr Speaker: Yes, please.
\tMs Rahayu Mahzam: Under the Ministry of Health's (MOH's) pilot for Pre-implantation Genetic Screening (PGS), the intended objective is to improve in-vitro fertilisation (IVF) success rates leading to live births for specific groups of women who have an increased risk for embryos with chromosomal abnormalities. Any woman who fulfills one of the following clinical criteria is eligible for PGS: (a) 35 years and above, regardless of prognosis; (b) suffered two or more recurrent implantation failures; or (c) experienced two or more pregnancy losses.
These eligibility criteria are not set arbitrarily but developed with reference to available international evidence and aligned with clinical practices in overseas assisted reproduction centres.
PGS is a technically complex procedure which carries potential risks, including damage to the embryos during the biopsy, with impact on their subsequent development, and should be reserved for women who fulfil the eligibility criteria to undergo the procedure.
MOH provides substantial funding for the PGS pilot programme. It has extended $1.7 million in funding to support the manpower and operations of the PGS laboratory, and half of the PGS consumables costs. As a result, participating patients are charged only the remaining costs of the PGS consumables which average about $1,100 per test, as well as the cost of the embryo biopsy to remove cells for PGS testing which ranges from $2,500 to $4,500.
PGS is performed together with in vitro fertilisation (IVF). For IVF, patients can receive Government support through the Assisted Reproduction Technology co-funding scheme as well as tap on their MediSave.
A total of 367 patients were recruited for the PGS study, more than the targeted 300 patients. MOH will continue to assess the clinical effectiveness of PGS, including looking at overseas data and collecting more data from cases here in Singapore. MOH will also explore options for co-sharing of costs of PGS for patients who are keen to be part of the study, but have affordability concerns. If PGS is included as a mainstream healthcare service, it will then be assessed for means-tested subsidies.
\tMr Louis Ng Kok Kwang (Nee Soon): I thank the Parliamentary Secretary for the reply. I understand, as the Parliamentary Secretary mentioned, over 300 people enrolled for PGS but only about a hundred actually did PGS. So, could I ask MOH what are the main reasons why people did not proceed with PGS. And, two, what steps MOH is taking to increase the enrolment of PGS and decrease the the drop-out rate. And third, the feedback on the ground is that there is a cost issue. So, I hope MOH can look into this and fully subsidise this so that more people can participate in this trial and, hopefully, we can then nationalise it to benefit more people.
\tMs Rahayu Mahzam: I thank the Member for the question. The high attrition rate of about 71.7% of enroled subjects before reaching the stage of embryo biopsy and PGS testing, indeed, remains a challenge. Prior to the start of the pilot, the evaluation team had determined that the target of 300 patients with PGS testing would be needed to achieve statistical significance.
As of 30 September 2020, as mentioned earlier, 367 patients were enroled but only 104 had enrolled biopsies performed. Almost half of the patients changed their minds after the ovarian stimulation and fertilisation stage, and proceeded with embryo transfer directly without performing PGS or decided to freeze their embryos instead. Other patients did not proceed with a biopsy due to medical reasons, such as poor quality of the blastocyst or embryo arrest. And of these 69 patients with euploid embryos, 60 underwent embryo transfers. This led to 31 pregnancies with 15 livebirths, eight miscarriages and eight on-going pregnancies.
As the Member rightly pointed out, we do need a bit more data to fully study this to understand its clinical effectiveness. MOH is doing its best to try and assist and support as many patients as possible to go through this process and this remains something that we will continue to review.
And as far as the cost is concerned, this is something that we understand is a challenge. For the patients who really need support for this, we will look into this matter. But as it is at the moment, there is limited and inconclusive evidence on the clinical effectiveness. We do need to proceed carefully with this process because there is also an impact on the embryo. There is a low risk, but there is still risk to the embryo and we do need to make sure that the right people proceed for this procedure.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Update on Singapore Community Wakaf","subTitle":null,"sectionType":"OA","content":"7 Mr Zhulkarnain Abdul Rahim asked the Minister for Social and Family Development and Minister-in-charge for Muslim Affairs whether he can provide an update on the Singapore Community Wakaf (SCW) and plans to support the establishment of the SCW including any legislative or regulatory changes and public awareness campaign.
\tThe Minister-in-charge of Muslim Affairs (Mr Masagos Zulkifli B M M): Mr Speaker, the Singapore Community Wakaf, also known as “Wakaf Masyarakat Singapura” or WMS, was announced in June 2020 to support the long-term needs of the Muslim community. This endowment project is intended to create a sustainable income to support our religious institutions, asatizah development and community programmes.
Since then, an Advisory Panel chaired by Mr Abu Bakar Mohd Nor, a MUIS Council Member and also Deputy President of the Singapore Malay Chamber of Commerce and Industry, or SMCCI, has been set up to recommend how to galvanise community involvement and operationalise the WMS. The panel is supported by the Expert Advisory Panel and Community Advisory Panel, comprising professionals and leaders from the investment, legal, property and religious sectors.
The advisory panel has conducted a series of targeted engagements with key stakeholders to better understand the community’s sentiments and identify the critical factors for WMS to succeed. Following the engagement sessions, the panel has submitted a report on the proposed key thrusts and workstreams for the development of WMS. I am reviewing the panel’s recommendations and details will be shared in the next few months.
I would like to thank the members of the Expert and Community Advisory Panels for their effort and recommendations.
\tMr Zhulkarnain Abdul Rahim (Chua Chu Kang): Thank you, Speaker. I thank the Minister for the clarifications and update. We look forward to the recommendations and report from the council on that. On this front, because it is a community wakaf, and we need to make sure the barriers to entry will be as low as possible to get big, massive support and to encourage this legacy of altruism amongst our community, I hope that the council will also review and consider a more comprehensive dispute resolution framework for which any dispute arising out of a community wakaf can be dealt with either via mediation or arbitration within the framework of AMLA and under the purview of the Syariah Court, if possible.
\tMr Masagos Zulkifli B M M: Indeed, when the legal experts and the experts on estates met, there were many issues that needed to be studied and resolved. Even laws may need to be changed to ensure that moving forward, the WMS will prevent such disputes from arising in the first place. And also, for existing wakafs, what can we do with them? This is another area that we need to study, outside what the recommendations are for the WMS.
I would also note that the last wakaf that we received from our community was in 1978. That is a long time ago! This culture of endowing properties that are given to the community by those who have passed away, is a very good culture that our forefathers started and have benefited the community today. We would like our community today who has now gained more wealth and prospered, to do the same and benefit our community and then, hopefully, the community at large.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Follow-up Actions After NParks-funded Study on Feral Pigeons","subTitle":null,"sectionType":"OA","content":"8 Mr Louis Ng Kok Kwang asked the Minister for National Development (a) whether NParks will be taking any follow-up actions following an NParks-funded study titled “Restricted human activities shift the foraging strategies of feral pigeons (Columba livia) and three other commensal bird species”; and (b) if so, what are these actions.
\tThe Minister of State for National Development (Mr Tan Kiat How) (for the Minister for National Development): Mr Speaker, the National Parks Board's (NParks’) study has affirmed that food made available by humans is a key driver of wild bird population growth. These findings have highlighted the importance of food source reduction, which are part of NParks’ population management measures for wild birds. This is multi-pronged, including habitat modification and population control.
To reduce the availability of food sources, NParks has been working closely with the Singapore Food Agency, National Environment Agency and Town Councils to encourage proper food waste management at food establishments and to enforce against littering and illegal bird-feeding. NParks also partners agencies and Town Councils to educate the community on proper refuse management. As part of its outreach and education efforts, NParks launched the islandwide “Say No to Feeding Wildlife” campaign in January 2021 to raise awareness on the negative impact of feeding wildlife, including birds.
We would like to remind the public to be socially responsible by not feeding wild birds, and by keeping public areas clean and free of food waste, to help manage wildlife population.
Mr Speaker: Order. End of Question Time. The Clerk will now proceed to read the order of the day.
","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 2021 to 31 March 2022","subTitle":"Committee of Supply - Paper Cmd 5 of 2021","sectionType":"OS","content":"[(proc text) Order read for consideration in Committee of Supply [3rd Allotted Day]. (proc text)]
[Mr Speaker 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 R (Ministry of Law)","subTitle":"Securing our place in the world","sectionType":"OS","content":"Head R (cont) –
[(proc text) Resumption of Debate on Question [1 March 2021], (proc text)]
[(proc text) \"That the total sum to be allocated for Head R of the Estimates be reduced by $100.\" – [Mr Murali Pillai]. (proc text)]
[(proc text) Question again proposed. (proc text)]
The Second Minister for Law (Mr Edwin Tong Chun Fai): Mr Chairman, good morning. I thank the Members for their speeches.
Sir, as we emerge from COVID-19, we face both challenges, but also extraordinary opportunities. In terms of challenges, we look at how our legal framework can continue to achieve fairness, remain accessible to all, achieve justice in a changing world and ensure that these legal services remain accessible, available, including to the most vulnerable.
But we also face opportunities, on how we can reposition, re-envision and strengthen our legal industry – to ride on opportunities arising from technology, to contribute to new areas of industrial growth, and ultimately, to contribute to Singapore's strong and vibrant economic growth.
Our response will determine whether we will be able to preserve the trust and international reputation, that we have worked so hard to gain. I will share some details on how we intend to achieve this.
Let me first outline our efforts to strengthen some areas of our legal framework, that Members have spoken about. Mr Lim Biow Chuan, Mr Gerald Giam and Mr Patrick Tay asked about community disputes. This is an issue that is very much on our minds, and I think on the minds of many Members in this House. Particularly perhaps, in the past year, where people have been working from home; staying at home a lot more during the circuit breaker period, where there has been a reported rise in neighbourly nuisance.
By and large, CDRT proceedings are designed to be quick and straightforward. It is effectively an adjudicatory process. However, the management of disputes between neighbours is not as straightforward. It is a delicate and often a challenging area. And while we endeavour to resolve disputes amicably between the disputing parties, neighbours can sometimes refuse to communicate, or sometimes, refuse to come together, or to compromise, and this can then lead to a breakdown in relationships. And as Mr Lim points out, which we agree, an adjudication of rights in this context may solve that legal problem, but it does not solve the longer lasting dispute between the parties. As Members have pointed out, we have put in place several avenues for parties to work through their disputes.
Community mediation is one – it is affordable, and we have seen that it is effective when both parties approach it in the right spirit. Members may know that 80% of cases that are mediated at the Community Mediation Centre (CMC) have reached an amicable settlement. So, 80%. Sir, this is a strong endorsement of mediation as a tool to resolve community disputes.
All 147 of CMC's mediators have completed mediation training and assessment, before being appointed. Since 2018, all new mediators must be accredited by the Singapore International Mediation Institute (SIMI). And they must complete 12 hours of additional training during their three-year term to be re-appointed.
So, we would like to assure Mr Giam that CMC's mediators are trained, they are accredited and they are fully equipped with a specific skillset to handle community disputes. And as the numbers have shown, they have been successful. The challenge, however, is getting parties to mediation, because mediation is largely voluntary. There are also many parties who refuse to turn up for mediation, and that can arise from any number of different reasons peculiar to the case.
This is not healthy for the neighbourly relationship in the longer term and my Ministry acknowledges that we can look at how we can improve the take-up rate of mediation, perhaps, make it compulsory, and these are areas we are studying seriously. And I will explain some details in a moment.
As Mr Lim points out in his speech, for parties to commence CDRT proceedings – that is another option that is available. But there are also limits to what courts in the adjudicatory process can do. The courts are ultimately the arbiters of who is legally right and legally wrong, and this is a binary zero-sum game. They are not structured to help parties mend their relationships nor can they supervise or monitor how parties behave after the specific proceedings end.
So, we are mindful of the above limitations and of the need to address these community disputes. These disputes often sit somewhere between being an annoyance and an offence, and the resolution of these disputes often require a multi-faceted approach. So, an inter-agency committee involving the Ministry of Law, MCCY, MND and MHA has commenced a comprehensive review of the community dispute management framework to address these challenges. It is going to be a complex study that involves several Ministries, but I would just quickly, broadly outline in this House the three areas that the committee is looking at.
First, it will look at how neighbourly disputes can be better managed and resolved up front. When disagreements arise, we need to quickly identify and address the root cause of the issues. This helps to preserve the goodwill before it festers and progressively tapers down. And also, in this context, community leaders can play a big role. We are also looking to measures to increase the take-up of community mediation, as I have mentioned, including increasing the awareness of the benefits of mediation.
We will consider Mr Tay, Mr Giam and Mr Lim's suggestion on compulsory mediation and counselling; and Mr Giam might know that the product of a successful mediation is often a mediated agreement, which we have the legal framework to enforce as a binding arrangement. We will also explore Mr Lim's suggestion to continue tracking a case even after it has been disposed of by the CDRT.
Finally, we are also looking into enhancing the CDRT process. The CDRT should continue to be the avenue of last resort, but as Members know it is often still necessary. So, we are considering several refinements to better address these disputes. For example, we are considering if CDRT can make interim orders, especially in cases of severe and continuing nuisance.
We are also aware that some claimants can find it difficult to gather evidence to support their claims, and this is even though the CDRT is not bound strictly by the rules of evidence and the proceedings are judge-led. We will look at whether clarifications are needed in the legislation to ensure that parties do not find CDRT proceedings unreasonably and unnecessarily onerous.
In some cases, respondents have, however, wilfully refused to comply with the CDRT's orders. In one egregious case, the respondent started to create a different type of nuisance not covered by the CDRT order, presumably to spite the claimant. We will look at how these gaps can be closed. If a party does not comply with the CDRT order, the CDRT may issue a special direction. Non-compliance with a Special Direction is a criminal offence, and can result in a court order that excludes the offending party from his or her place of residence.
A total of 24 Special Directions have been issued as at 31 December 2020, for these egregious cases, and to date, two Exclusion Orders have been made. We will also look at whether the current measures are sufficient to protect our communities from anti-social and nuisance behaviour.
Mr Tay asked about the CDRT's caseload. Since the CDRT was operationalised on 1 October 2015, 591 claims have been filed as of the end of last year, 31 December 2020. Of these, 135, or more than one in five, were ordered to undergo mediation. On average, since 2018, the CDRT has disposed of slightly over 100 cases annually. The majority of cases are resolved within six months. The remainder, within 12 months, with a small handful outside of 12 months.
We are studying the three areas above that I have outlined, carefully, and will introduce reforms to strengthen our management of community disputes. These will be announced when the study is concluded.
Notwithstanding what I have said, whilst we can introduce more regulations and enhanced measures, ultimately, at the end of the day, it is fundamental for neighbours to maintain a culture of open communication, mutual respect and understanding. And to the extent possible, may I also ask that Members refer and encourage parties them to attend mediation, given that the mediators are well-trained and the numbers show that CMC has proven successful in resolving these disputes. By and large, mediation has a far more sustainable, longer term, long lasting impact in maintaining the relationship between two neighbours.
Mr Tay and Mr Lim asked about the Protection from Harassment Act (POHA). Mr Derrick Goh also touched on harmful online speech, in his cut filed with the MHA. Let me address them. First, dealing with the number of cases filed with POHA to date. Since POHA came into force on 15 November 2014, 853 Protection Orders (POs) have been filed as of end of last year. This includes application by victims of sexual and workplace harassment, online harassment, as well as harassment by neighbours.
Data based on types of harassment are currently not available, but the State Courts are looking into enhancing the case management system to capture and track such data. Of the 853 PO applications filed, 135 were sent for mediation 366 expedited POs were granted this means that the court granted interim relief in roughly about four out of 10 applications. Three hundred and forty-eight POs were granted, of which more than half were granted with the consent of both parties.
This suggests that a good number of cases were, after the process had started, were resolved amicably. The few remaining applications were either withdrawn, dismissed or struck off or remain pending resolution.
Sir, we have over the years strengthened the protections available under POHA. In 2019, Members may recall that we amended POHA, created new offences such as doxxing. As of 31 December 2020, there were 29 cases of doxxing filed in the State Courts. We have also enhanced the suite of tools available, for example, having new remedies for victims of online falsehoods.
This year, the dedicated Protection from Harassment Courts will begin operation. It was designed with the end-user in mind. Volunteers will also be on hand to help victims navigate the process, and judges will be specially trained to deal with harassment matters. The POHA Court will adopt simplified procedures and expedited timelines for certain types of applications. And we will continue to monitor the effectiveness of the 2019 amendments. I will provide a more holistic assessment after the POHA Court has been in operation for some time. These should also address Mr Derrick Goh's earlier questions to MHA.
Next, let me turn to Mr Pillai's suggestions to modernise and simplify the probate processes. I think Ms Nadia Samdin also raised similar questions.
The Courts are working on an online application for straightforward probate matters for individuals to use directly. So, something that individuals can use on their own as lay persons. It will be linked to Government agencies' database so that relevant information can be retrieved, without users having to provide additional information or fill up any more documents than might be necessary.
Safeguards, however, will have to continue to be placed because for probate matters, we do have to ensure the integrity of the process, as well as look after the interests of the beneficiaries.
Mr Vikram Nair has filed cuts about our efforts to manage the moneylending sector. We monitor the borrowing trends and developments very closely. We have previously adjusted our regulatory framework to ensure safe access to credit for vulnerable borrowers and will continue to do so as may be necessary.
Members will recall that in July 2019, we introduced a comprehensive suite of measures to stem the increase in moneylending activities targeting foreigners, in particular, foreign domestic workers. As a result of these measures, lending to foreigners, especially the more vulnerable ones has reduced significantly and indebtedness has been kept under control.
To help borrowers affected by the COVID-19 pandemic, we worked with Credit Association of Singapore (CAS) to encourage licensed moneylenders to adopt various measures to assist borrowers including debt restructuring and also debt consolidation. We have received feedback from affected borrowers that these efforts by CAS and licensees have been helpful and we are grateful to CAS' cooperation with us on this front.
We continue to look for ways to better protect borrowers such as through business-led improvements. So, for example in 2019, we granted moneylending licences to six firms to pilot new business models with features such as more comprehensive use of data, to enhance credit worthiness assessment and also digitalised processes. This pilot programme will end in 2022, following which, we will assess its impact on the industry and it will inform our efforts to enhance the moneylending regulatory regime.
Next, let me turn to effective access to justice which a number of Members – Mr de Souza, Dr Tan Wu Meng, Mr Joshua Thomas, Mr Zhulkarnain and Mr Leong Mun Wai – have spoken about enhancing legal assistance for the vulnerable.
There have been observations that the COVID-19 pandemic has worsened what some might term the \"justice gap\". The disruptions caused by the pandemic has raised demand for legal resolutions and also has affected the industry unequally. At the same time, those disruptions may impact the vulnerable, as I have said, disproportionately – and they are the same ones who often find it difficult to access legal services.
This backdrop and the recent experience has deepened my Ministry's resolve to enhance access to justice for all Singaporeans. We are doing so, on three fronts. Let me quickly outline them for Members.
First, on civil legal aid. The Legal Aid Bureau, or LAB, launched iLAB in February 2020. This is a free legal chatbot that provides customised legal information on key topics such as divorce, personal protection orders, custody and guardianship, and maintenance. These are issues that most lay persons commonly seek assistance on. During the height of the pandemic, the chatbot was enhanced to provide answers to commonly asked legal queries that arose from the COVID-19 situation.
LAB revamped its Applicant Portal in February 2020, allowing applicants to make their applications, to do their means testing, and to give their instructions, all online. Through this process enhancements, processing time was also shortened by at about two weeks. We will push ahead with our efforts to make legal information and advice more accessible in 2021.
LAB will add more topics to the iLAB chatbot. It will also expand its partnerships with social agencies to offer legal advice via video-conferencing and at various community touchpoints. So, to put it out in the community, on the ground through partners such as including Our Tampines Hub, Family Service Centres, essentially to make services more accessible directly to vulnerable applicants, as Ms Samdin has suggested.
MinLaw is also working with the Law Society Pro Bono Services, or LSPBS, to develop a one-stop legal information portal – which Ms Hany Soh asked about. This online portal will provide members of the public with clear and easily understandable information on common legal topics. This will also provide information as to the various sources of legal assistance available.
Dr Tan Wu Meng spoke about increasing flexibility in means testing to assist legal aid applicants with exceptional circumstances. Sir, we are mindful of the need to be flexible in means testing particularly for applicants with exceptional circumstances and we have designed our means test framework to cater to this. First, we have built in a set of rules, so that officers can, within these rules, exercise discretion in assessing an application. For example, if an applicant has severe disability and/or illness, and/or is 60 years old or above, the means test assessment can exclude some of the applicant's savings in computing their eligibility.
Beyond this, we have established an independent Means Test Panel, which reviews cases that do not satisfy the means criteria but are unable otherwise to afford basic legal services due to exceptional circumstances. Let me assure Dr Tan that this Panel has the full flexibility to decide if an applicant who may not have passed the means test should still, nonetheless, qualify for legal aid.
The Panel has done so for a few cases and will continue to exercise this discretion, judiciously, where the case merits. In Dr Tan's case, I would invite him to let us have the details of that specific case for our review and see how we can assist.
Sir, we believe that these efforts have led to tangible impact on the ground. In a survey conducted by my Ministry in late 2020, three in four respondents agreed that legal aid is accessible to those in need.
Second, let me speak about enhancements to criminal legal aid which Mr de Souza and Mr Leong spoke about.
The Government has been co-funding the Criminal Legal Aid Scheme, or CLAS, what we call \"Enhanced CLAS\" since 2015, to serve more accused persons who merit legal assistance but cannot afford it. The Government funds on average $2 million per year, that is about 75% of CLAS' total operating costs.
Enhanced CLAS receives an average of 2,400 applications annually – all of whom receive some basic legal advice. More than half, or 1,400 applicants per year on average are supported under CLAS and received full legal representation. This is more than three times the number of applicants who had benefited from full legal representation prior to Enhanced CLAS in 2015.
CLAS currently covers 17 Acts – these account for about 70% of non-capital criminal charges filed in the State Courts.
Sir, we are mindful of the need to and will continually and proactively review how we can enhance access to justice for accused persons of limited means. As stated in the Ministerial Statement on Parti Liyani v Public Prosecutor last November, we started reviewing our criminal legal aid model in 2019, five years since the start of the Enhanced CLAS. This year, we will conclude our study on how we can enhance the provision of criminal legal aid, including the coverage in terms of means criteria and offences, and the possibility of setting up a Public Defender's Office.
We are carefully studying the experiences of other countries to avoid the problems they have encountered, such as abuses of legal aid by wealthy defendants and its corresponding impact on the legal fraternity. We will consider both the coverage and the measures we should adopt to ensure that we have a sustainable criminal legal aid model.
In the meantime, we will continue to make improvements to legal assistance for accused persons under CLAS. We introduced new means test criteria for civil legal aid in October 2019, as I mentioned, aligned with those commonly used in social support schemes, namely: per capita household income; annual value; and the applicant's savings and non-CPF investments.
This year, we will extend the new means test criteria for CLAS as well. There will be no material impact on the overall number of households eligible, we will maintain it at 25%, there will be no drop. But the changes will simplify the application process and also reduce the paperwork for applicants, compared to the current process.
In addition, LSPBS introduced and launched a new online application process for criminal legal aid which provides applicants with detailed, step-by-step guidance on how to apply online, should they seek to do that. So, from the own portals and in person.
LSPBS has also established a referral protocol with the Courts. The Courts can refer accused persons who need legal assistance but who are unable themselves to apply online, directly to LSPBS, to ensure that help is available even for those who are less digitally savvy.
Sir, even as we study the Public Defender's Office, which needs to be looked at carefully, as I mentioned, the experience with other countries, we have nonetheless continued to push on with enhancements to ensure that the justice system remains accessible and this will remain a key cornerstone of our legal system.
Third, we will introduce a framework for Conditional Fee Agreements, or CFAs, to provide an additional litigation funding option for international arbitration, for domestic arbitration, and certain prescribed proceedings in the Singapore International Commercial Courts, or SICC.
Sir, CFAs are agreements where a lawyer, representing a client in a claim, receives payment of some or all of the legal fees only if the claim is successful. We are studying how CFAs may be adopted for certain categories of domestic proceedings. The intent is that the CFAs will allow for litigants, including businesses facing risks of insolvency or cash flow issues, to pursue meritorious claims which they may not otherwise have been able to pursue.
Next, Sir, let me touch on some areas of family and civil justice which Members have spoken about.
Mr Zhulkarnain asked about protections for certain vulnerable groups against family violence. We have amended POHA, the CPC and the Penal Code to introduce a number of measures over the past few years, to tackle family violence.
These include introducing new offences and enhanced penalties to deter the abuse of:
(a) persons with whom the offender was in an intimate or close relationship, such as members of the same household;
(b) children under 14 years old;
(c) persons who are substantially unable to protect themselves from such abuse, neglect, or self-neglect, by reason of mental or physical infirmity, disability or incapacity; and
(d) foreign domestic workers – where the offender is the employer, member of the employer's household or the employment agent.
We have made offences committed against vulnerable victims arrestable; and we have simplified the application process for Personal Protection Orders (PPOs) and the Expedited Orders (EOs), in the form that I have mentioned earlier.
An Inter-Agency Task Force on Family Violence, led by MSF and MHA, was also set up in February 2020 to look into further strengthening protections. That Task Force will submit its recommendations on how we can better prevent and deal with incidents of family violence in due course.
Mr Zhulkarnian had asked if we were considering replacing the definition of \"family violence\" under the Women's Charter to cover groups such as \"intimate partners\" and those in \"close relationships\". We should highlight that non-family members who suffer abuse are protected under the Penal Code and POHA.
Mr Patrick Tay raised some questions in relation to the Employment Claims Tribunal, or ECT. Let me assure Mr Tay that if any claimant encounters any issue with enforcing an ECT order, the Tripartite Alliance for Dispute Management, or TADM, will provide assistance to help the claimant by advising him or her on the process of enforcing the ECT order including the types of Court documents which need to be submitted. For low-wage workers, TADM will help to bear the costs of enforcing the ECT orders.
Mr Tay has suggested that for insolvent companies, MOM can advance money first to the worker and thereafter stand in his place as a preferred creditor. I understand that MOM has looked at this proposal before. It recognises that advancing money in such situations may provide relief to the worker in the immediate short term. But, at the same time, it also distorts the market and may also inadvertently create a larger problem of a viable company defaulting or owing the salaries, when knowing that workers might then obtain such payments from Government funds. This may lead to a bigger systemic problem in the longer term.
Workers who are unable to recover unpaid salaries may also tap into the Short-term Relief Fund, or STRF and the Migrant Workers' Assistance Fund, or MWAF. Those details, I will not go into, but, if Members have questions on them, either myself or MOM officers can assist.
Mr Tay also mentioned the need to publish ECT judgments. Currently, the judgments or grounds of decision may be made available to the public upon request. In assessing requests, the ECT will consider factors such as whether these judgments when published will assist in future cases. This practice is consistent with applications for judgments and grounds of decisions in the State Courts, including other tribunals such as the Small Claims Tribunals.
MOM will make applications to the ECT to publish grounds of decision, when these would help to clarify common misunderstandings about common employment laws or increase awareness of employment obligations and rights. These would then become useful references and precedents to the employers, employees and to mediators of subsequent cases.
I should add that the State Courts would also, on top of this, consider publishing selected ECT grounds of decision on an anonymised basis.
Sir, this sums up two areas that we are pushing this year in community justice and access to justice. Let me now turn to our other efforts to support a vibrant economy.
There are two key planks to this. First, our response to COVID-19. And second, the steps that we take to continue to enhance and strengthen Singapore as a leading international legal and dispute resolution hub.
First, our response to COVID-19. As Mr Pillai mentioned, we rolled out a series of urgent measures in 2020 to support citizens and businesses in a very difficult time. These initiatives illustrate how my Ministry has helped Singaporeans ride out the impact of the COVID-19 storm, and emerge stronger together.
The temporary relief from contractual obligations, and rental relief framework provided much needed breathing space to businesses and individuals alike and promoted a fair sharing of obligations.
As of 23 February this year, more than 8,600 notifications for relief have been served through MinLaw's electronic system. About 117,000 notices of cash grant have been issued under the rental relief framework. The Simplified Insolvency Programme, or SIP, and the Re-Align Framework, the two most recent ones in the measures, both aim to help the economy as a whole, pivot and emerge stronger from the crisis.
The SIP – which had commenced on 29 January this year – provides financially distressed micro and small companies, or MSCs, with a low-cost, faster and more efficient way of either exiting the business by way of liquidation, or finding a way to restructure their debts so that they can then proceed with the business, which remains viable.
The Re-Align Framework allows eligible MSCs to renegotiate selected types of contracts with their counterparties. To date, more than 490 Notices of Negotiation were lodged and served via the online electronic system. We have also received feedback that the introduction of the Framework in itself has promoted dialogues and discussions between parties to discuss constructive ways that they can themselves, without the help of assessors, forged forward with. Many have successfully renegotiated their agreements without needing to even serve a notice under the Framework.
Sir, all four of these urgent responses showcase the trust and the strong relationships between stakeholders and experts across Government and the private sector, they worked together to roll out and implement the legislation in record time. It really would not have been possible, without such a strong partnerships between the different sectors of the legal industry working hand-in-hand with many other agencies in Government and also with the private sector, especially the commercial businesses and chambers, all of whom have come together with suggestions or thoughts to make the legislation as wide-ranging and as efficient as possible in its implementation.
Mr Christopher de Souza asked about smaller landlords – especially retirees – who do face genuine hardship in meeting their obligations under the framework.
Sir, the framework provides additional relief to eligible tenants who have suffered at least a 35% drop in monthly revenue. It is not for every tenant, it is only for tenants who have themselves seen such a drop in their revenue. Nonetheless, to recognise the need to balance the interests of landlords as well, the framework allows landlords to make an application for assessment on the grounds of hardship, to reduce their share of rental waivers by half.
MAS has also worked with the banks and finance companies to allow affected individual and SME landlords to defer their property loan repayments last year. SMEs could defer their principal repayments, while individual landlords could defer both interest and principal. Eligible landlords who continue to experience cashflow difficulties this year can apply to their lenders for temporary reduced instalment plans, or work out alternative arrangements.
Mr Murali Pillai asked if we intend to introduce any new measures. Sir, we will continue to monitor the implementation of these various frameworks, its initiatives and its impact on the ground closely. We will make adjustments as may be necessary, and we will not shy away from introducing further measures should there be a need to.
Mr Pillai also suggested having a framework legislation that can be deployed quickly at the next crisis. We understand Mr Pillai's suggestion and I think the intent behind it is good to make it quick, flexible and easy to understand and implement.
But at the same time, each crisis is different and its impact on aspects of business, which parts of the economy, how it might be felt, might be different with each crisis. COVID-19 hit many businesses and sectors especially hard, particularly travel and conference sectors. It may be different in other crises.
The measures, I should emphasise, that we have put in place over the course of last year have been extraordinary, designed to meet an extraordinary crisis. The next one may well differ in its scope and scale. We did not intervene in previous crises, for example, in SARS in 2003. So, we must be careful and circumspect before intervening in private arrangements.
A framework legislation, whilst well-intentioned, might not be sufficiently nuanced itself and targeted to meet the unique challenges of the next crisis. Our experience in responding swiftly to COVID-19 will nevertheless help to shape and sharpen our responses, moving forward. At the same time, our system of governance allows us to move fast, be nimble and act quickly, for the benefit of Singaporeans, as we have demonstrated in the course of last year.
We do have every confidence that should there be a need to in subsequent years – touch wood, that there will be no other such crisis – we will be able to respond in similar fashion. That said, there are some areas that we are looking at introducing more lasting changes which will take into account the lessons that we have learnt from the pandemic, drawing a leaf out of Mr Pillai's suggestion.
My Ministry has been working with the Courts to drive the digital transformation of the litigation process. COVID-19 has accelerated the shift towards non-traditional modes of hearing, where both litigants and counsel may not be present before the judge in the same physical location at the same time. These may include conducting hearings through video-link and also based on documents filed by parties. The temporary measures under the COVID-19 Act have been positively received by court users and also, I understand, members of the Bar.
We will build on these successes and facilitate the technological transformation of our court system and expand the existing scope of non-traditional modes of hearing. This will, of course, also be subject – as Mr Pillai will understand – to appropriate safeguards to ensure that the propriety of the hearing, integrity and fairness, which are ultimately of paramount considerations, will be upheld. These changes will help the Courts to improve the efficiency and accessibility of court processes, and also lower the cost of dispute-resolution for litigants.
Second, Sir, strengthening Singapore as a leading international legal and dispute resolution hub remains high on the priority. My Ministry has been investing heavily in this, over the past decade. We will to continue to push hard to enhance our value proposition, so that parties will find it attractive to procure legal services from Singapore-based firms, and to use Singapore as a trusted venue to resolve their disputes, even if the underlying transaction might have nothing to do with Singapore. This creates economic value and good work for Singapore and Singaporeans.
Let me, Sir, outline a few aspects on this.
First, we continue to take our standing on the international stage and international cooperation very seriously, to burnish our reputation as a reliable and trustworthy jurisdiction, that is a responsible actor on the global stage.
In June 2020, we adopted a Model Agreement with the International Tribunal for the Law of the Sea (ITLOS) to host ITLOS proceedings in Singapore. Singapore is the first and only other country to have such an arrangement with ITLOS. The Model Agreement reaffirms Singapore’s commitment to the international rule of law, on the peaceful settlement of disputes, and it is itself an endorsement of Singapore as a neutral venue for the effective settlement of international disputes.
We are pursuing a number of other efforts in the area of international civil cooperation. One example, as Mr Pillai is well aware of, is the Apostille Convention, which Mr Pillai has brought up on several occasions. This facilitates cross-border recognition and use of public documents. With the passing of the Apostille Bill in November 2020, we became a party to the Apostille Convention in January 2021.
Mr Pillai also asked for my Ministry’s position on the Hague Service Convention, which is a major international treaty that facilitates and also streamlines the transmission of judicial and extrajudicial documents for service abroad in civil and commercial matters. We are currently studying the possibility of acceding to the Convention. We have begun consultations with stakeholders, including on the practicalities, the actual practical steps in implementing the Convention. We will update Mr Pillai when we have reached a landing on this.
Second, we continue to position Singapore as a thought leader on international rule of law matters. The key effort in this regard relates to the Singapore Convention on Mediation, as Mr Sitoh Yih Pin has highlighted. As Members would recall, this is the first UN Convention bearing Singapore’s name. It continues to be a mark of pride for us. We have since introduced the Singapore Convention on Mediation Act and its Rules to implement the domestic legal framework for the Convention.
To commemorate the entry into force of the Convention on 12 September 2020, we jointly organised a digital event with the UN Commission on International Trade Law (UNCITRAL) involving the six countries, including Singapore, that had deposited their respective instruments of ratification or approval. Moving forward, we will continue to offer technical assistance on the Convention to other countries and promote its ratification, and maintain our position as a thought leader in this area.
Third, we continue to strengthen our status as a leading international dispute resolution hub. Mr Sitoh asked how we can continue to promote Singapore despite the restrictions because of COVID-19. The pandemic has certainly affected the normal operations of our dispute resolution institutions. But they have responded swiftly, adapted and also enhanced their own technology offerings to better adapt to the evolving situation. Let me just give some examples.
The Singapore International Arbitration Centre (SIAC) and Singapore International Mediation Centre (SIMC) have made provisions for online arbitrations and mediations for parties almost immediately. Maxwell Chambers pivoted from providing physical hearing spaces and facilities to offering parties integrated and seamless virtual and hybrid alternative dispute resolution (ADR) hearing services. It also collaborated with other hearing centres in the region to facilitate ADR hearings for international parties who may be located in different parts of the region, different venues physically.
We will continue to strengthen partnerships with key stakeholders and support these dispute resolution institutions in building up their international networks. At the same time, these institutions have continued to expand their global presence and partnerships, in some ways taking advantage of the COVID-19 period to build their future resources and to look at expanding their footprints.
SIAC opened its fifth international representative office in New York in December 2020. It entered into collaboration with partner dispute resolution institutions and universities in key markets such as China, Japan and Thailand.
SIMC was also active in extending its international footprint, and forging closer collaborations with partners overseas, including with Japan and China.
MinLaw has also signed an MOU with the China Council for the Promotion of International Trade at the sidelines of last year's Singapore-China Joint Council for Bilateral Cooperation or JCBC meeting. This is to establish a working group to study the feasibility of co-developing a dispute resolution mechanism between Singapore and China, and to see how Singapore can play a role in resolving disputes involving China and the countries along the Belt and Road initiatives.
Other than strengthening our international partnerships, we also amended the International Arbitration Act to further enhance our legal framework for international arbitration. This has borne fruit with both SIAC and SIMC, achieving record caseloads in 2020. As of 30 October 2020, SIAC received 1,005 cases, including two sets of related cases, surpassing the 1,000 mark for the first time. SIMC, a much younger institution, also received a record 43 cases in 2020.
Going forward, we will continue to build on our strengths, what we have achieved so far, expand our international partnerships for global presence, and implement other legislative changes to keep our dispute resolution services and offerings vibrant, competitive and moving with the times. We are currently working on extending the existing third-party funding framework to domestic arbitration and also certain prescribed proceedings before the Singapore International Commercial Court (SICC).
As I mentioned earlier, we are also working on introducing a framework for CFAs for the same categories of proceedings covered by the third-party funding framework. These changes will serve to meet the demand for alternative funding arrangements by commercial litigants. We envisage that it will also bring in more work for our lawyers, and level the playing field for them vis-à-vis foreign lawyers, who have already been able to offer such arrangements.
Sir, let me turn to our Intellectual Property strategy. We have been continuing to develop Singapore’s intellectual property (IP) eco-system, to maintain our top ranked IP regime and establish Singapore as a global hub for IP and intangible assets (IA).
First, we launched the SG IP Fast programme in 2020, to fast track the registration of patents, and related trademarks and registered designs in Singapore, to cut the processing time for businesses. As Member will appreciate, time is efficiency and is profitability. So, our IP efforts have been focused on cutting down the amount of time needed for these processes. For instance, under this programme, patent protection can be secured within six months.
Second, to support enterprise growth through IP and IA, we have partnered SGX to launch the Intangible Disclosure Evaluation and Audit Scheme or IDEAS to encourage companies to undergo IA evaluations and promote a more robust IA disclosure regime.
Third, to build up IP jobs and skills, we launched the Workforce for IP Savvy Enterprises or WISE programme, in partnership with SBF, to help Singapore enterprises acquire new capabilities and skillsets through IP.
We are also working closely with our stakeholders and partners on the Singapore IP Strategy 2030, looking into the next bound, the next decade, which aims to strengthen and reinforce Singapore's position on the world stage as a global hub for innovation. More details will be announced on World IP Day, which will take place in April, next month.
Mr Christopher de Souza asked about enhancing Singapore’s reputation as a jurisdiction for companies to protect and defend their IP when disputes arise. This, in fact, is one of our key focus areas.
In 2019, we amended the Arbitration Act and the International Arbitration Act to clarify that IP disputes are arbitrable in Singapore, and that such arbitral awards bind only the parties to the arbitration proceedings.
Last year, IPOS launched the Young IP Mediator initiative, in partnership with our local Universities, to build up IP mediation experience amongst law students, socialise IP mediation to them at an early stage of their career and to build awareness amongst law students and fresh graduates alike.
We will continue to build our capabilities in handling IP dispute resolution, to make Singapore a \"go to\" place when companies have IP disputes to resolve.
Moving on to efforts on our technological transformation, topics which Mr Joshua Thomas and Ms Rahayu had spoken about.
Many participants in our Emerging Stronger Conversation on Legal Industry Transformation, and this includes legal professionals, those in practice, academics and law students, I think all have been practically unanimous in highlighting the need for the legal sector to embrace technology and to build on existing platforms and capabilities. We have taken on board this feedback and our efforts on this front are multi-faceted.
We have partnered Law Society to implement a series of workshops, roadshows and technology demos to basically build awareness, raise awareness, and to socialise lawyers with devices and platforms that they might otherwise not be familiar with.
We extended the period of support for the funding scheme Tech-celerate for Law and enhanced support rates from 70% to 80% in 2020. As of 14 September 2020, a total of 233 law practices have benefited under the scheme and its predecessor – Tech Start for Law – to adopt technology in its practices.
Finally, a few months ago, we launched the Technology and Innovation Roadmap in October 2020. The roadmap was co-developed with more than 95 stakeholders from the industry. It charts our vision and our plans to promote innovation, and technology adoption and development for Singapore’s legal industry up to 2030. Moving forward, we will enhance our efforts to uplift the entire legal sector through technology.
We understand the challenges faced by law practices, especially smaller firms. Technology platforms can have impact on its overheads. It has to invest time and effort to identify and curate and also integrate technology into their existing workflows.
As such, my Ministry is planning to develop an integrated Legal Tech Platform that unifies law firms’ existing technology tools as far as possible. The platform will be designed specifically to facilitate legal workflows from end-to-end. This sets the platform apart from generic software that caters to workflows of businesses in general or to specific segments or sectors of the business workflow.
We envisage that the platform will enable law practices and lawyers to work anytime, anywhere and it will have a single unified user interface for lawyers to access the functionalities – such as case and document management – as part of their existing tools. It will also allow lawyers and their clients to collaborate easily on legal matters via a one-stop-shop platform as far as technically feasible. They will be able to share documents and jointly work on such documents on this platform and it will also aggregate client communications from various platforms such as MS teams, Slack and so forth, but with the caveat that it obviously has to be something that is integratable and not something that is too archaic.
The platform will aim to supplement and support existing legal technology adopted by firms. As far as possible, we do not want to have the firms reinvent the wheel and will see the extent which we can integrate the existing system or software that they already have with the platform that we have in mind.
We aim to make lawyers ultimately comfortable with using the existing tools and, at the same time, going onto the platform and adopting these new legal solutions, which we believe will give them a significant boost as they continue to compete on a regional and global stage.
We will work with other agencies to explore complementary schemes as well to support small-and-medium firms and avail them to assistance by technology consultants and also job redesign services.
MinLaw is also working with IMDA and industry partners to develop an Industry Digital Plan which will – provide a step-by-step guide for lawyers to assess their digital readiness and to identify suitable technology solutions to adopt at each stage of their growth. Because the firms are on different ends of the spectrum and different parts of this spectrum in terms of readiness for technology adoption.
Sir, beyond technology adoption, innovation is also important for law practices to continue to thrive. For that we have the Singapore Academy of Law’s Future Law Innovation Programme or FLIP, which Mr Zhulkarnain spoke about.
While COVID-19 has disrupted some of FLIP’s planned activities such as workshops and networking events, FLIP continued to provide support to the legal community, in particular smaller law firms, through its \"Lighten-Up\" business process improvement programme.
This \"Lighten-Up\" programme seeks to help law firms increase productivity through technology and its own business process improvements. Till date, 20 firms have completed or are going through the programme.
Mr Zhulkarnain and Ms Rahayu also asked about equipping our lawyers and students for the future, including enhancing their exposure to new and developing fields of work. This is, indeed, an important area as we look at growing future lawyers for the future economy.
MinLaw has been supporting our lawyers to strengthen their expertise in key practice areas and markets. For example, MinLaw administers the SkillsFuture Study Awards to support practitioners in obtaining new qualifications in growth areas such as projects and infrastructure, insolvency; and practising law in leading overseas jurisdictions. As of 19 February 2021, 134 lawyers and in-house counsel have benefited from the scheme.
Second, MinLaw runs a number of capability development programmes for lawyers to gain domain expertise and market exposure and knowledge. One example is the China Ready Programme – the first run was completed in 2020. This helps lawyers to better understand not just laws but also business culture and environment in China, enabling them to work more effectively with Chinese clients and partners. We are aiming to launch the next run later this year. This programme complements the Lawyers Go Global programme which provides lawyers with a deeper appreciation of regional demand for legal services, and also connects them with local businesses and legal communities in those jurisdictions on their mission trips. Of course, we have not been able to do that recently but we will continue to do so once we have the opportunity to. We will continue to work closely with our stakeholders to support relevant training programmes for legal professionals.
As for law students and fresh graduates: we will continue to work with the institutions to finetune the curriculum to ensure that law students are well-equipped to meet the changing demands of the legal practice which I think Members will appreciate, especially the lawyers amongst us, which are changing very quickly. And this will also include changes to the practice training regime, which MinLaw has accepted in principle, and will be working with stakeholders to implement in 2023.
Mr Joshua Thomas asked about how we can support law firms to internationalise. Apart from the initiatives I have outlined above, we also have been building networks and strengthening collaboration with key stakeholders and marketing our legal services in key markets in ASEAN, in India, in China and we also look at how we can improve access for Singapore law practices and lawyers in these markets.
Apart from initiatives outlined above, one other area to leverage on is the Singapore Jiangsu Cooperation Council (SJCC) to develop an Internationalisation Corridor. It aims to drive collaborations between Chinese enterprises and professional services firms, with a focus on legal and accounting firms. This represents a next phase in our efforts to help law firms internationalise through cross-sector collaboration. So, not just cross-border but also cross-sector collaboration.
Sir, the final section of my speech will relate to the work of the Singapore Land Authority (SLA).
As Mr Christopher de Souza mentioned, SLA has contributed to the wider whole-of-Government effort to combat COVID-19 during this pandemic. SLA has had to retrofit and manage vacant state properties, and also contract to manage hotels and other facilities, to provide interim accommodations, such as for persons serving Stay-Home Notices and for Government Quarantine Facilities, the GQF. I would like to thank the many officers and volunteers within SLA, who have worked so hard in seeing to this national effort.
SLA will continue to work closely with the community and its stakeholders to co-create solutions to optimise the use of state properties so as to derive better value for the state and the community. For example, SLA, working with URA, will engage the public on ideas for the adaptive reuse of State properties at Changi Point, as part of its efforts to enhance the rustic charm of the area. SLA will also continue to convert under-utilised State land into community spaces such as Yarrow Gardens, which will be used as a 3-G Park.
Mr Derrick Goh asked about SLA’s steps towards digitalisation. SLA has indeed been moving ahead to digitalise, across multiple domains and services. Let me just outline a few.
SLA has digitalised its Temporary Occupation Licences (TOLs) processes from front-to-end. All TOLs are now issued in electronic format, as well as digitally signed. This saves time and reduces the possibility of a misplaced TOL.
Another area SLA is looking into, and which the Member has pointed out, is conveyancing. Conveyancing has remained a largely manual and paper-based process over the years. Since 2016, SLA has embarked on the digitisation of about a million HDB leases – most of which have now been digitised. Building on that, SLA has been engaging various stakeholders on the development of a Digital Conveyancing Portal that will provide a fully-integrated, secure, efficient and also a transparent end-to-end conveyancing process.
Finally, SLA is continuing to advance its geospatial capabilities. It will build up the Geospatial Trusted Centre through the continued provision of data concierge services to even more agencies, and also expand our centralised geospatial training and project services to more agencies.
The full OneMap 3D platform – with its rich and integrated layers of geospatial data – will be made available to businesses and individuals in 2021, this year, with new services that aim to help users in making better decisions, such as drone flight planning and simulation for logistics; immersive property-viewing experiences for real estate; and also barrier-free access navigation and wayfinding for citizens.
Sir, let me now conclude. One of the most fundamental purposes of the state – any state today – is to hold the fabric of a diverse society – bound up, close it together – to uphold justice and the rule of law. Without justice and the rule of law, there will only be force and violence, and the fabric of that society will fray. Our founding fathers saw this with the utmost clarity, and today it continues to be a fundamental tenet of the way we govern.
Everything that we do in my Ministry is guided by these principles. We have done well so far – levels of trust amongst citizens remains high. Many in the international community continue to see the commitment to the rule of law as one of Singapore’s key distinctions when deciding whether or not to invest in Singapore, whether or not to bring their businesses into Singapore.
But this is a mission that we cannot succeed at alone. We can only do so, in partnership with all our stakeholders and, indeed, with all Singaporeans.
It is on this note that I end my speech by extending our heartfelt thanks to the Members of the Bar, the Judiciary, the wider legal fraternity, as well as the many Singaporean individuals and organisations who have come along side us in pursuing this mission and I look forward to the year ahead, optimistic that with shared resolve we can continue to safeguard this legacy that has been left to us by our founding fathers. Thank you, Sir. [Applause.]
The Chairman: Ms Sylvia Lim.
Ms Sylvia Lim (Aljunied): Thank you, Chairman. One clarification for Minister. On community outreach efforts, earlier he mentioned iLAB and the chatbot that are available for the public to use remotely to find out about legal processes and so on. I like to ask him whether that chatbot is able to handle members of the public who need to use other languages such as Chinese, Malay and Tamil.
Mr Edwin Tong Chun Fai: As I understand it, currently, you are not able to currently navigate iLAB in different languages. Nonetheless, if a litigant in person or a litigant who is looking at commencing a claim needs to find resources in other languages, there are other facilities available such as the concierge, the front staff counter, all of whom will be able to address other languages.
We will look at the possibility of enhancing iLAB to deal with other languages. But as Ms Lim might appreciate, it is not often as easy to deal with matters on iLAB which looks at giving legal advice and outline of the laws and is not easily translatable into different languages all the time.
The Chairman: Mr Christopher de Souza.
Mr Christopher de Souza (Holland-Bukit Timah): Chairman, I first thank the Minister for his elucidation on many aspects that his and Minister Shanmugam's Ministry run. I have three clarifications.
The first is the framework of the legislation. I would say that, as I had said previously, excellent moves, timely, needed. I want to pick up on the point that I made about small landlords because I do feel that some are kept in the lurch and are vulnerable because the depreciation in profit of that tenant is actually felt even more so by the small landlord in the rebate that the small landlord gives to the tenant. So, I think there needs to be a level of deftness and nimbleness with which an Assessor assesses whether a small landlord needing this income for rental retirement merits giving a rebate or not. That is the first point that I would like to make in clarification.
The second point – I thank the Minister for his explanation on the IP regime. My points were really about how we need to be able to protect IP regime in Singapore and how we must have a dispute resolution mechanism in Singapore for IP. I should declare that I am a practitioner in IP law. But the third point really is how we can monetise that intellectual property, how we can monetise that invention in Singapore, in the overall scheme of IP protection.
My third and last clarification, Sir, is about the caution with which we should approach the funding or over funding of criminal legal aid. In 1997, the Law Chancellor, Lord Irvine, in England characterised legal aid as a leviathan with a ferocious appetite, that is, it was sucking up so much money, so much of the government's budget and it lent itself to abuse. So, while I support access to justice for the vulnerable, indeed, I support it greatly, I think we should move towards this gingerly and ensure that there is no abuse of the system, both for the sake of the litigant as well as the overall judicial system. These are my three clarifications.
Mr Edwin Tong Chun Fai: I thank Mr de Souza. On his first point on small landlords, I would like to assure Mr de Souza that it is precisely with deftness in mind that the framework was designed; to use Assessors and not to use a strict legalistic adjudicatory process. And in the context of looking at a dispute between a landlord and a tenant, or two parties who have filed a notification, the Assessor can take into account factors which a court or a judge sitting in an adjudicatory process might not otherwise be able to do. And this includes looking at the tenant's performance, looking at the ability of the tenant's business to pick up thereafter, and take all this into account when looking at the relevant compensation.
On IP, I agree with Mr de Souza. To monetise it and to take advantage of it, I think there are two broad aspects. The first is to have a system that is strong, clean, transparent, robust, and as I mentioned earlier, quick. Second, it is to develop a framework to look at how we can monetise or value intangible assets, which make up the majority of assets on a given company's balance sheet. To look at how that can be assessed, it can be quantified and how that can then be used as leverage.
Third, on the access to justice points. I think Mr de Souza's points are well taken, and it is precisely for that reason that I have said my Ministry continues to study it, its impact in other jurisdictions, the experiences there, and to be careful to scope it to walk a fine line between the balance of looking at how we can help the indigenous and making sure that the state's resources are best deployed, and that it is not being taken advantage of unfairly.
The Chairman: Ms Hany Soh.
Ms Hany Soh (Marsiling-Yew Tee): Thank you, Chairman. In relation to the iLAB point that was raised by Member Ms Sylvia Lim, I just wanted to share in my perspective as the Co-chairperson of the Community Legal Clinic. What I also understand is that there is already a pilot project that is a collaboration between the Legal Aid Bureau in relation to the iLAB where it collaborates with our community legal clinics. The volunteer lawyers are able to use this system to provide the necessary preliminary legal advice to residents in need. And needless to say, we take into account that there is a need for residents who do not understand English, and the volunteer lawyers are there to assist them in the various languages.
I have one point of clarification for the Minister. One is in relation to opening more opportunities for our law students and our law graduates, whether the Ministry can explore widening the scope of the places where law graduates can serve their training contract. In this regard, I think it will be helpful if we can consider adding places such as the Law Society Pro Bono Services as one of them. Currently, I understand that they are also lacking in terms of manpower, there is a constraint there, but at the same time if we are able to open up the scope, that would encourage more people to embrace volunteering in their professions.
Mr Edwin Tong Chun Fai: We certainly encourage lawyers to take part in pro bono services and offer their services. Anything we can do to promote that area, we will consider. Having said that, the training contract is for the purposes of ensuring that the trainee lawyer comes through to the market and is able to serve and practice in the market. So, it may not be feasible to just serve a training contract in the Law Society's Pro Bono Office. But that can be certainly one factor and one aspect of practice that they can look into.
The Chairman: Mr Murali Pillai, would you like to withdraw your amendment, please?
Mr Murali Pillai (Bukit Batok): Mr Chairman, I would like to thank the hon Second Minister for Law for his characteristic considered and full responses to the speeches made by the hon Members of Parliament for this Committee of Supply debate for MinLaw.
I would also like to express my appreciation to the officers of the Ministry of Law as well as its Statutory Boards for their devotion to duty and executing MinLaw's mission. I had the privilege of meeting some MinLaw officers recently. They all expressed the hope that they do not have to be involved in so many Bills under Certificates of Urgency. I also hope so too, but I am confident that if the situation demands it, they will rise to the challenge. With that, I beg leave to withdraw the amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $297,224,700 for Head R ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $220,364,400 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 E (Judicature)","subTitle":"Securing our place in the world","sectionType":"OS","content":"Ms Sylvia Lim (Aljunied): Chairman, I beg to move. \"That the total sum to be allocated for Head E of the Estimates be reduced by $100\".
Our Constitution provides at Article 12 that all persons are equal before the law and entitled to the equal protection of the law. Today, I wish to focus on the challenges of litigants who do not have lawyers. I will highlight cases from the ground to illustrate difficulties they face in normal times and in COVID-19 times.
At the onset, I wish to acknowledge the attention that the Courts have been paying to the litigants in person. There are training programmes at the Singapore Judicial College to sensitise judges on how to handle such litigants in Court. Lawyers also see judges going the extra mile to explain to unrepresented persons, the requirements of the law and legal procedure. There are also inquiry counters at the Courts and education brochures in the four official languages.
My purpose is not to criticise current efforts but to highlight some observations from the ground for the Courts' consideration for possible further enhancements.
There are three main challenges I wish to highlight. First non-English-speaking litigants. Second, the need for public buy in of Court procedures. And third, particular challenges caused by COVID-19.
First, non-English-speaking litigants. It is common at my Meet-the-People sessions to encounter Chinese-speaking residents showing me court documents and saying that they are unable to read them and do not know what they should do next. Indeed, according to the General Household Survey 2015, there remains nearly 20% of the population above 15 years old who are not literate in English.
I am aware that court interpreters can be applied for in advance of court hearings, and are available for Mandarin, Malay and Tamil, and other specific languages and dialects. However, this has to be applied for through e-litigation in advance, otherwise, deployment will be subject to availability. I wonder if many litigants in person have used e-litigation to apply for such interpretation services.
As for court documents, they are issued in English. Residents sometimes tell me that they do not understand the contents of Orders made by the courts. As the national language policy recognises Chinese, Malay and Tamil as official languages, I wonder if the courts could consider providing translations of court issued documents to litigants in these languages, either for free or for a nominal fee. If this is not possible for all documents, then is it possible at least for court orders, so that litigants are clear what is required of them?
My second point is the need for public buy in of Court procedures. To illustrate the point, I note some unhappiness from residents who had their neighbour disputes adjudicated by the CDRT which was discussed in the earlier Committee of Supply debate. The unhappiness was both about the hearing and the outcome.
To this end, I would hope that CDRT judges are specially selected with empathy and patience as key traits, and also have the ability to explain issues to litigants in simple and vernacular language. As for the Orders made by the CDRT, some residents are shocked to be ordered to stay out of their homes for a few weeks. After all, this is a most drastic order that undermines their property rights.
Finally, additional difficulties caused during the COVID-19 pandemic. The courts had to close for several weeks during the circuit breaker and continues to restrict physical hearings and counter services. There must now be a significant backlog of cases due to COVID-19. While some hearings took place via remote means such as Zoom, I wonder how many litigants in person had the resources and the wherewithal to avail themselves of that option.
I would like to illustrate the point using an elderly resident's case. He was conducting a civil claim for damages after a road accident which left him partially disabled. After obtaining interlocutory judgment, his next step to quantify his damages was delayed due to court closures. An application by him was dismissed by the court remotely and he did not understand why. In the meantime, he suffered a stroke and is much weaker now. Time is of the essence to him.
So, my final point is, how have litigants in person been supported during COVID-19, and how can urgent cases be flagged out for expedited handling?
[(proc text) Question proposed. (proc text)]
The Chairman: Mr Edwin Tong.
The Second Minister for Law (Mr Edwin Tong Chun Fai): Sir, we share Ms Lim's concerns to the extent that we would, of course, want to support a litigant-in-person's access to our justice system. And I am grateful to Ms Lim for recognising some of the efforts to handle litigants-in-persons in court.
Both my Ministry and the Judiciary remain committed to ensuring access to justice for all. And indeed, one of the guiding principles of the Civil Justice Reform Committee established by MinLaw was to advance access to justice for all persons, including litigants-in-person and SMEs.
Let me highlight some of the on-going efforts.
First, we are simplifying and streamlining legal processes and designing them with the ultimate end-users in mind. The new Rules of Court, which is scheduled to come into operation later this year, will be written in modern, layman language, easy to understand and to apply. Forms and processes will also be simplified. Cases can take a judge-led approach where appropriate.
Second, we are leveraging on technology to make legal processes more accessible and convenient, and to channel timely and useful information to those facing legal issues, especially litigants-in-person.
For example, the Community Justice Centre (CJC)’s Automated Court Document Assembly System (ACDA). This is a free online service that provides step-by-step guidance to generate and file certain court forms, such as applying for deputyship, which a lay person can do on his own. If necessary, court staff will also be available on hand to assist.
Third, we have taken steps to enhance awareness and also support structures to help litigants-in-person. I spoke earlier about the improvements that we are making to legal aid for civil and criminal matters, to support litigants of limited means who are unable to afford their own lawyers. The Community Justice Centre (CJC) also runs a one-stop HELP (Helping to Empower Litigants-in-Person) Centre. These provide support services such as free on-site legal advice, and also emotional and psychological support through the Friends of Litigants-in-Person (FLIP) scheme.
Elderly or less well-educated persons ought not feel intimidated or apprehensive in participating in legal proceedings. Ample support is available to help them navigate the court process. If the litigant struggles with English, the Community Justice Centre will endeavour to source for volunteers who are conversant in other languages.
For litigants-in-person who require a court interpreter, they can make a written request, and the reason to have to make the written request in advance is obviously the number of intepreters might be limited. If all go for a Mandarin speaker or a dialect speaker on the same day, there needs to be an allocation. So, something in advance would be necessary. But to the extent possible, the courts will allocate the appropriate interpreter to ensure that the process can take place. And that the individuals who do not understand English can still continue to take part in the proceedings. Certainly, the Judge will not proceed with a hearing, if one party is unable to follow the proceedings due to language difficulties.
Ms Lim asked about the translation of court documents. For cases before the Community Courts and Tribunals, or cases involving simple court Orders, litigants-in-persons who need assistance understanding court correspondence may call the court's hotline. They will be assisted by staff who can explain the content of documents to them either over the phone, or on occasion, in person when they meet.
For other cases, if a translation is required, litigants can be referred to third parties who provide translation services. We are in the midst of exploring with the CDCs and with LSPBS, a range of options to assist litigants who need assistance who have English court documents, and the avenues being considered are platforms to explain the documents verbally in a language that the litigant is comfortable with, providing advice where needed, as you heard Ms Hany Soh explain earlier, or in certain cases, assisting with the cost of engaging translation services, where needed.
Ms Lim raised some questions on the impact of COVID-19 on the Courts and litigants-in-person.
Some amount of disruption in the past year has been unavoidable due to the need to combat the spread of COVID-19 to save lives and the pandemic has had an immense impact not only on court processes but really on all aspects of our daily lives.
There has been some backlog and the State Courts have lost a number of hearing days due to the vacation of hearings because of the circuit breaker period – likewise, the Family Justice Courts as well as the High Courts. Nonetheless, as of present-date, the vast majority of the cases which have been backlogged have been re-fixed for hearing and many have already been disposed of.
As far as remote hearings, and more generally, the increased usage of technology in the Courts are concerned, MinLaw and the Courts are keenly sensitive to the needs of court users who are not represented and less technologically inclined.
Ms Lim asked whether litigants-in-person have the resources to use Zoom. They can do so on their own if necessary. Alternatively, those who require assistance can receive assistance through telephone or over the counter, on online live-chat or through email communications.
Remote hearings serve to make it more convenient for the user, ultimately, but those who are unable to do so can ask for their matters to be heard physically if they are unable to attend remotely. Alternatively, the Courts have also set up dedicated video-conferencing facilities in the Courts to cater to litigants who themselves lack the means or knowledge to connect via video-conferencing facilities.
Ms Lim raised the case of her resident who was looking at quantification of damages. This resident can avail himself of any of the above measures that I have mentioned. In addition, the litigant can also write to the Court Registry to explain the situation, ask for an earlier hearing date and they can do so through any of the various modes I have mentioned.
I spoke earlier about how MinLaw is working with agencies to review the Community Dispute Management Framework (CDMF). Let me address the specific concerns that Ms Lim has raised in her speech here.
Community Disputes Resolution Tribunal (CDRT) cases are heard by District Judges who are designated as Tribunal Judges. They are empowered to handle cases in a less adversarial way and to ensure that proceedings are simple for litigants to navigate. The CDRT is not bound by the rules of evidence and proceedings are designed to be judge-led. These judges are trained in mediation and they continue to assist in every case, assess each case and assess the parties for suitability in mediation even as the case proceeds on an adversarial basis.
If, despite all these measures, after exhausting all attempts at an amicable solution, there is still a dispute, then the CDRT will have to make a decision and issue an order. These orders then have to be complied with.
Ms Lim spoke about the residents' concern, that they can ordered to stay out of their homes. Let me explain.
What Ms Lim refers to are Exclusion Orders (EO), which require the respondent to temporarily move out from his place of residence. Such an order is intended to deal with the most egregious of cases. There have only been two Exclusion Orders since October 2015. The CDRT can only make an Exclusion Order if the respondent has failed to comply with the initial CDRT order as well as the subsequent Special Direction; two times.
The timeline in both cases for the EO roughly have been about 17 to 18 months, between the initial CDRT order and the Exclusion Order. So, for a period of more than one year, almost one and half years, this individual defendant has been disregarding the initial order, have been heard by the Courts and yet chose not to comply with the initial court order.
Hence, where the Court is shown evidence that the respondent is recalcitrant and continues to cause nuisance to his neighbour in contravention of the court order and remains in continuous default, it is only right that firm measures be taken to stop the offending conduct and deter the continuation of the nuisance.
Even then, there are statutory safeguards. For instance, the CDRT must consider the impact of the order on the contravening party and any other individual who may be reasonably affected by the order.
Access to justice, Sir, remains a key cornerstone of the Ministry and we will continue to advance our efforts in this regard. We thank Ms Lim for her feedback and suggestions.
The Chairman: Ms Lim.
Ms Sylvia Lim: Thank you, Sir. One clarification for the Minister concerning my suggestion on the translation of court orders into other languages.
In his response, he mentioned that there were avenues available through staff or perhaps through the CDC network to explain verbally to the resident the contents of the orders. But I wonder if he will agree with me that having a written translation is certainly something that is a better and stronger reference point for the resident, because sometimes when people talk to you, you cannot retain the information or you remember inaccurately, whereas if you have a translated document, you can refer to it and it is, in a sense, a more reliable source.
I would like to ask again that the Courts, through the CDC network or through themselves, do consider this avenue of providing a translation of court orders if such is sought by the resident and at a nominal fee, or if not, free.
Mr Edwin Tong Chun Fai: As I outlined earlier, this is something that is being looked into by the CDCs working with LSPBS. In the appropriate cases, we can consider a full translation of the court document.
But I think Ms Lim would also appreciate that it is not in every case that a full translation automatically means that the person who is receiving this document, even in its translated language, can readily understand it. That is why the suggestion earlier that I made, which I think Ms Hany Soh also weighed in on, is for pro bono lawyers to assist in this process, not just in the translation but also in the elucidation and explanation of the impact of the document and what it means to the litigant-in-person.
That said, I think, through various means, we want to ensure that the litigants-in-person are able to understand the process, understand what the judge is saying, what the other party is seeking to achieve. This, I think, upholds the integrity of the process. We will take these necessary steps to ensure that litigants-in-person will be able to understand the process through a variety of means.
The Chairman: Ms Lim, would you like to withdraw the amendment?
Ms Sylvia Lim: Mr Chairman, it is good to hear the Courts' continuing commitment to justice for all, especially litigants-in-person, and I would highly urge that the Courts continue in this direction to address any gaps. With that, I beg leave to withdraw my amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $308,728,600 for Head E ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $92,444,700 for Head E 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":"Creating a future-ready economy and workforce","sectionType":"OS","content":"The Chairman: Head V, Ministry of Trade and Industry. Mr Liang Eng Hwa.
Mr Liang Eng Hwa (Bukit Panjang): Mr Chairman, I beg to move, \"That the total sum to be allocated for Head V of the Estimates be reduced by $100\".
Our economic agencies have risen up to the occasion during this pandemic crisis. Besides the daunting healthcare challenges, we were also faced with multiple stresses on the economic front and also to ensure that supplies continue to flow into Singapore, especially essential items and necessities.
For a small country with limited local resources, it is no small feat that we can continue to secure the adequate supplies needed, especially during the intense months when borders were closed and many countries restricted exports.
The economy went into a nose dive with the steepest contraction recorded in the second quarter of 2020 at -12.6% and an overall contraction of -5.4% for the whole of 2020.
Armed with strong fiscal support and moratorium measures, the economic agencies went into overdrive mode to swiftly get these measures out to the businesses. It was timely enough to save many businesses and jobs and, importantly, prevent economic scarring.
Sir, here, I would like to commend the great work by the officers from Enterprise Singapore (ESG)—much of what they have done may not be visible to the public. I remember sending many emails to them, appeals and requests for assistance from our residents who were deeply impacted by the crisis. The ESG officers were always sympathetic and helpful to each of these requests and would duly close the loop with the residents and businesses with support, help and advice.
I would like to mention a few names, actually, of some of the ESG officers who have helped me: Joyce Khoo, Ms Ong Wee Yang, Lynette Liu, Johnny Teo, to name a few, and of course, the hardworking Assistant CE, Ms Chew Mok Lee, among others.
During the most turbulent period of the crisis, I know that the ESG and MTI teams have gone out of the way to tap on their global networks to secure food items and other essential supplies. These are real operations and I can imagine the responsibilities and pressure on the shoulders of the MTI and ESG officers during that period of time.
This pandemic underscores the importance of resilience and diversification for our sources of essential supplies and the need for a robust stockpile policy.
COVID-19 also reminded us that we will still need to maintain a small but substantial part of manufacturing capabilities locally, which can be quickly scaled up in times of need. These may well be low value-add production during peacetime but can suddenly become important critical resources in an unexpected crisis.
Of course, all these resilience-related contingent provisions would add further costs to Government. It will also have structural implications to the overall economy and the cost of doing businesses here. I hope that MTI can monitor this closely and look at how we can holistically optimise the overall costs.
Sir, the other economic agency that has risen up to the occasion is EDB. In 2020, despite being the year of the global pandemic, EDB was able to attract investment commitments of $17.2 billion, which, when these projects are fully implemented, will create 19,000 new jobs. This is against a backdrop of falling global foreign direct investment (FDI) flows.
A case in point is Singapore's continued ability to attract foreign tech giants to set up here in 2020—such as the likes of ByteDance, Amazon, Twitter, Zoom, Tencent, among others. Other exciting and value-creating investments brought in last year include the Hyundai Motor Group Innovation Center, Siemens' Advance Manufacturing Transformation Center, Tata's Digital Acceleration Centre, and others.
EBD was able to sell Singapore as an open, trusted and connected hub that comes with a skilled talent pool, well-endowed capital, and a vibrant and innovative enterprise eco-system.
Together with our vibrant local enterprises and Singapore being a premiere financial centre, these new investments all add up to strengthening our position as a global-Asia node.
We must build non-substitutable or sticky connectivity so as to maintain our competitive edge as a critical node. So, beside best-in-class physical connectivity, we also need to develop and enhance other centres-of-excellence such as digital connectivity, trade connectivity—even regulatory connectivity.
Can I ask the Minister for an update as to how we are enhancing Singapore's connectivity to the world.
Sir, while attracting FDIs and enhancing our position as a global-Asia node helps generate growth, the other important engine of growth is in the development of our enterprises.
In almost every Budget, there will be focuses and sizeable allocations targeted at helping businesses to transform, to build capabilities and to innovate. In more recent Budgets, we have also seen increased support in areas such as digitalisation and in developing sustainability as a competitive advantage.
We need to grow our local large enterprises (LLEs) into industry champions and also help promising medium-size companies grow to become LLEs.
Catalysing a wide range of capital to help businesses transform and to scale is also one of the key enablers laid out in Budget 2021.
Some of the risk-sharing arrangements with market providers of capital includes the Venture Debt Programme for high-growth enterprises, co-funding the transformation of mature enterprises under the Emerging Technology Programme or the Local Enterprises Funding Platform where the Government and Temasek Holdings will co-invest $500 million each.
Can I ask for an update from the Minister as to how are we growing our local champions and how are we revving up the pace of transformation to achieve size and scale?
Also, has COVID-19 set us back on our internationalisation momentum?
Given the various structural shifts as described in the Budget Statement, how will Singapore operate in the new global and regional landscape and stay competitive and relevant?
One particular structural shift is in the reconfigured global supply chain. How can Singapore companies seize these opportunities in the reordering and reorganisation of the global supply chain and be plugged into the critical parts of the global networks?
Sir, our economic response to this crisis has to go beyond just counter-cyclical measures. We need to take bold steps to seize new opportunities, invest in new capabilities and be well positioned for the next bound of growth.
[(proc text) Question proposed. (proc text)]
Ms Foo Mee Har (West Coast): Chairman, COVID-19 has accelerated the bifurcation of global trade and exposed the vulnerabilities in inter-connected supply chains. As countries and companies rebuild business networks, relocate value chains and continue to de-couple, Singapore must work to stay relevant and position itself for the shifting economic landscape. How has Singapore performed as an investment destination in the midst of the pandemic and what strategies is the Government pursuing to distinguish ourselves as a business hub?
Singapore must redefine our competitive edge by pivoting towards innovation as a driver of growth and a vibrant digital economy. So, I would like to ask: what progress have we made to nurture a strong start-up eco-system and how does Singapore compare to other start-up eco-systems in Asia and across the world? Singapore is recognised globally for its leadership in the field of intellectual property protection and scientific research. So, are we attracting our fair share of deep-tech start-ups in search of robust IP protection?
To support the development of the digital economy, it is critical to offer corporations access to top-tech talent. How is Singapore doing in our efforts to develop tech talent from our Institutes of Higher Learning as well as programmes, such as TechSkills Accelerator? How successful has the Tech.Pass been in attracting established tech entrepreneurs, leaders or technical experts from around the world to come to Singapore, where they can nurture disruptive innovation?
Singapore’s handling of the COVID-19 pandemic has also shown the world once again what we are capable of as a people and as a nation. In a fragmented world where trust is in short supply, this is the time that Singapore is well-positioned to capitalise on the premium for quality, resilience and neutrality, all of which play to Singapore’s strengths. This is an opportune time for Singapore to capitalise on our brand.
Sir, I would like to ask what initiatives have EDB and other agencies undertaken to step up the marketing of Singapore as a leading global business hub, recognised for its quality infrastructure, safety, stability, connectedness and accessibility? Can we work towards a Singapore certification framework that provides Singapore companies, especially our SMEs, a quality certification for their products and services, similar to the Swiss Label and the Brand K initiatives in Switzerland and Korea respectively? Second cut.
Chairman, whilst it is understandable that existing broad-based fiscal support cannot be sustained indefinitely, we should be cognisant that companies need time to recover. Any premature withdrawal of support may undo the good work already invested to keep them afloat during the pandemic.
According to an SBF National Business Survey, only 38% of total transactions were paid on time, and almost 50% of late payments were above 30 days past due, on top of the credit terms already offered. Therefore, it is critical to time the withdrawal of loan schemes carefully, including the Temporary Bridging Loan Programme (TBLP) and SME Working Capital Loan, in order to ensure the much-needed relief in cash flows does not vanish suddenly.
The Government has sent a strong signal that it will back firms, support firms, that are ready to transform in this Budget. I especially welcome the Local Enterprises Funding Platform to support large local enterprises from the more traditional sectors with $1 billion in Government and Temasek funding. Companies should seize this additional funding to embark on transformation to reinvent and rejuvenate their business model.
In addition to Temasek, the Government should also consider the participation of other established private equity firms for more parties to contribute to the development of these local corporates. Besides funding, we should support large local firms to access R&D in their pivot to new growth areas as well as higher value-added services and offerings. They can also benefit from support in forging new partnerships locally as well as internationally.
Sir, as Singapore embarks on the next phase of expansion of the manufacturing sector by attracting market-leading manufacturing firms to anchor their operations in Singapore – the hon Liang Eng Hwa mentioned a few – I call on the Government to ensure that this ambition achieves a wider impact so that these high-value or advanced manufacturing firms catalyse an entire generation of supporting local industries, all of whom may grow in tandem. How can the Government spur partnerships with local corporations and the development of an integrated value chain that includes sub-contractors and service providers in Singapore, as well as opportunities to venture overseas together?
Mr Desmond Choo (Tampines): Mr Chairman, the most vexing story of the COVID-19 pandemic has been that economies have to deal with damaging cyclical forces from the virus and accelerated structural changes. Ironically, while the blueprint to manage the virus-related fall-out is perhaps seemingly clearer, that of the large structural forces are less understood. It has also questioned Singapore’s trade hub status.
COVID-19 precipitated protectionism as countries critically re-examine the resiliency of their supply chains. Many vulnerabilities from long supply chains were unraveled. Companies would now need to rebalance their supply chains to manage their risks. As a node for global supply chains, Singapore will now need to re-examine how it can stay competitive.
There is an added layer of complexity from the US-China tensions. Decisions on how and where to source for products and services are now mired in a web of trade tensions.
Air travel and, consequently, aviation and hospitality sectors will change fundamentally. The ease of online collaboration would significantly alter our MICE activities. This has disrupted the eco-system of commercial activities that we had built up over time. Our hub strategy would need to adapt to the new trade climate. I would like to ask the Minister: how will Singapore operate amidst the cyclical challenges and ensure our competitive edge in the longer term? What are the global re-opening opportunities that we must seize now?
Larger companies with more resources are better prepared to deal with such changes. Things are much less rosy for the SMEs. The changes will unduly affect them as they have less cash to manage disruptions. The Jobs Support Scheme (JSS) was a key support for these companies. But with JSS winding down except for the hard-hit sectors, SMEs will need added relief support through grants and loans. As they are preoccupied with surviving the crisis, investment in capex is likely to take a backseat. This makes longer term survivability ominous. I suggest that we can enhance our enterprise development grant to help SMEs with their capex investment.
SMEs must now cope with loan moratoriums and COVID-19-related measures coming to an end. There will be SMEs that have yet to see a material rebound in fortunes. I would like to ask the Ministry if it can continue to provide support for them through extension of loan payments or grant support. Amongst these SMEs could be good young start-ups. Losing such innovative SMEs could mean setting back our entrepreneurship scene.
Late last year, Facebook announced a small businesses programme that supported companies with cash and ad credits. The latter help companies to drive business. There is value for us to pursue more of such programmes with our companies to help them drive better revenue growth.
Prof Hoon Hian Teck (Nominated Member): Chairman, Singapore's economic transformation since independence has relied on integration into the global economy. That reliance came at a time when trade barriers that were set up during the Great Depression in the 1930s – a period of prolonged slump – were being dismantled. Hence, Singapore’s economic growth from the 1960s onwards rode on growing world trade. Now, COVID-19, which has adversely affected both the advanced and emerging economies, can tend to cause countries to adopt inward-looking protectionist policies. The question: how do we navigate a world of potentially more fractured globalisation? MTI, no doubt, must have devoted much time and energy to think about how the Singapore economy can still take advantage of economic openness to generate good jobs for our residents.
Nevertheless, let me share some thoughts. The answer, to answer this question, I believe, is that we should create dynamic comparative advantage as a small open innovation-driven economy. Despite the challenges we face, this is the way to achieve the required productivity growth to support an economy that creates good jobs with good pay. There are three, to my mind, potential sources of comparative advantage in the current circumstances.
First, this comparative advantage could come through a so-called “home market” effect. Let me explain. The demand for Singapore’s goods comes from both domestic sources as well as external sources. A feature of the COVID-19 shock is that, broadly speaking, it affects two sectors unevenly – an affected sector, which includes aviation, aerospace and tourism, and a non-contact-intensive sector. There is a decline in demand for goods produced by the affected sector. How do we boost domestic demand for goods produced by the non-contact-intensive sector? A key factor here is the degree of substitution between the goods produced by the affected sector and the goods produced by the non-contact-intensive sector. Because of COVID-19, Singapore residents are unable to travel overseas for holidays. In normal times, our local businesses would find it difficult to capture a large portion of the spending of Singapore residents because they would prefer to travel overseas for their holidays. Now that it is difficult to travel overseas.
There is, therefore, a natural advantage presented to our local entrepreneurs. This potentially means a larger domestic demand for the goods and services of our local businesses. If the trade association and chambers representing these local businesses can facilitate the organisation and marketing to reach these residents, we can lower the average cost of supplying the goods from the non-contact-intensive sector. These businesses can then charge a lower price as the whole industry enjoys economies of scale. Even when COVID-19 is over, the experience of offering products to suit local customers’ tastes could well enable our innovators running these local firms to reach foreign customers as well.
Second, our large human capital base and investment in digital infrastructure can enable our entrepreneurs to reach overseas markets. Although there are fewer tourists walking down the streets to purchase from local firms, digitalisation might enable them to find an online platform to reach overseas customers who would have taken their holidays in Singapore in the absence of the pandemic. An example is to create a virtual experience for these foreign customers. Local firms can also build upon the digital platform to establish a business presence as part of the global value chain to supply intermediate products to foreign customers. In this regard, let me acknowledge the advantages that Digital Economy Agreements, already established with Australia, New Zealand and Chile, confer to our local firms an advantage in their internationalisation efforts.
Third, our investment in urban design to make Singapore environmentally-friendly with a low carbon footprint can facilitate research and development (R&D) in clean technology. Innovative firms engaged in R&D in clean technology will find it more profitable to undertake risky investments if it can find a sufficiently large market for its products. As Singapore makes a commitment to adopt a whole-of-society approach to create an environmentally sustainable place to live, work and play in, this creates a larger demand for capital goods that embody this clean technology. Having tested their products in the local Singapore market, these innovative firms can then potentially export such capital goods to the rest of the world. In sum, there are still potential opportunities, despite the circumstances, to ride on global opportunities to grow.
In conclusion, despite fractured globalisation, spurring innovative activities to ultimately reach overseas markets can enable the Singapore economy to achieve the required productivity growth to support good jobs with good pay.
Mr Leon Perera (Aljunied): Mr Chairman, Singapore provides amongst other things tax incentives for MNCs to set up regional headquarters and other investments because they contribute towards our economy. SMEs, which are the backbone of our economy, making up 72% of employment and 44% of added nominal value in 2019, also received support. But the pandemic has given us a sobering reminder that SMEs play on an unequal footing because of their smaller balance sheets and brand value. MNC investment is often attracted by incentive packages that include tax incentives and other forms of incentivisation. These are tied to economic targets like total business spending, fixed asset investment and headcount.
As I argued in my Budget speech, can incentive packages for MNCs include an additional tier of incentive if the MNCs work with local SMEs in executing the investment project. This additional tier can be offered very selectively where there are good local SMEs that can be partners to MNCs and it should be meant as a nudge and encouragement, not mandate or dicta.
There are schemes like PACT which reward MNC and SME collaboration, just like there were schemes like LIUP in the past. But, however, SMEs really grown into regional and global players helped by these schemes.
In other countries in the region, MNCs are sometimes required to have a certain percentage of local equity. I am not advocating that at this point as it may make us too uncompetitive to attract MNCs.
Last but not least, do our economic agencies regularly audit these schemes to weigh the cost in terms of cash outlay and so on, versus the benefit in terms of job creation and economic multipliers?
The Chairman: Ms Jessica Tan.
Ms Jessica Tan Soon Neo (East Coast): Mr Chairman, can I take my four cuts together?
The Chairman: Yes, please.
Ms Jessica Tan Soon Neo: Mr Chairman, the manufacturing sector contributes 21% of Singapore’s GDP and employs over 450,000 people. With the growing importance of and the economic shift to Asia, Singapore is well positioned to be a more resilient and advanced manufacturing base in Asia for the world.
Many leading global companies have located their operations in Singapore. Singapore’s Smart Industry Readiness Index (SIRI) catalysed the transformation of companies in the manufacturing sector around the three pillars of Industry 4.0 – around process, technology and organisation. The Assessment Matrix has helped companies start, scale and sustain their Industry 4.0 transformation. How is Singapore continuing to promote Industry 4.0 adoption?
Against the backdrop of the current COVID-10 pandemic, how will Singapore continue to be an attractive manufacturing base and move up the value chain for these companies? And how will Singapore continue to instill confidence for companies to build on their investments in production, headquarters, R&D and supply chain manufacturing functions in Singapore and to make Singapore the Asian node for their operations in the region?
What is the future of our manufacturing sector? And how can Singapore ensure that our supply chain remains resilient in a post COVID-19 world?
The world is becoming more complex and there is greater inter-relationship across sectors and adjacent opportunities.
We are seeing the growing importance of Asia as an engine for growth. Digitalisation is accelerating and the growth of the digital economy has gained greater momentum with the COVID-19 pandemic. The disruptions have also highlighted the importance of resilience in our supply chain. With climate change and the drive for sustainability, there is increased emphasis on sustainable products and services.
With these trends, what are the growth and/or emerging sectors for Singapore? How are we developing these sectors? How can we enable active participation of our local businesses in these sectors?
Mr Chairman, accessing new markets can be challenging for any company, large or small. With a small domestic market, increasing digitalisation and competition, Singapore companies cannot ignore the need to look beyond Singapore to grow.
Budget 2021 has introduced the new Local Enterprises Funding Platform to support large local enterprises and enhanced the Venture Debt Programme to help SMEs access necessary capital to expand overseas and to seize opportunities.
Can Minister share how more local businesses can be supported to internationalise, grow and build capabilities to compete globally? Apart from capital and funding support, these companies need to develop their talent. And beyond talent, what support is available for our Singapore companies to access systems and platforms, know-how and networks to enter new markets. Similar to how Alibaba’s Tmall has enabled global startups access the China e-commerce market. How can Trade Associations and Chambers of Commerce or other bodies be encouraged to play a stronger role in helping businesses overcome internationalisation challenges?
Mr Chairman, with digitalisation and the structural changes in industries, can Minister provide an update on the progress of businesses transformation of companies especially SMEs in the adoption of digital solutions to improve productivity in the face of manpower and cashflow challenges? How can we encourage more SMEs to transform and adopt digital solutions to improve productivity in the face of manpower and cashflow challenges? What support will the Government provide to SMEs intending to digitalise?
With the many different schemes to support businesses, understandably, there is also a myriad of support schemes. So, how can Government support schemes be streamlined and made more accessible for businesses, especially our SMEs?
A key part of enterprise development is access to talent. How is Singapore developing our pipeline of local tech talent? What resources are being directed towards improving the training and upskilling of local SME workers for technology-related roles and innovation?
Mr Leong Mun Wai (Non-Constituency Member): Mr Chairman, we are fortunate that Singapore has adequate financial resources and is willing to think ahead by investing in RIE or Research, Innovation and Enterprise to future-proof our society and economy. Between 2005 and 2020, we have spent a total of $55 billion on RIE, an amount larger than the drawdown of reserves to fight the COVID-19 pandemic. The next RIE budget for 2021 to 2025 calls for another $25 billion of spending.
The budget also calls for $2.2 billion to be spent on \"talent development\", including postgraduate scholarships, but the majority of the postgraduate students, researchers and faculty members are foreigners.
At the NUS' Centre for Quantum Technologies established in 2007, 74% of its researchers and postgraduate students are foreigners in 2019, a decade after its establishment. What does that say about our progress in building up our domestic research talent pool over the last two decades?
In our opinion, it is premature to increase research expenditure significantly when we still lack a sizeable domestic pool of research talent.
Also, besides looking at the research component of the RIE budget, the Government should also conduct a review of the allocation of resources used to promote innovation and enterprise.
From my humble experience as a venture capitalist, new ventures cannot be effectively promoted by the Government using co-funding. This is because the limited number of public servants would not be able to assess the potential of thousands of venture ideas emerging at any one time. It is better to let the private sector do the job.
A better alternative is to provide tax credit to activate access capital in our system to fund the ventures and increase taxes on passive capital that do not. In this way the capital can be channeled into proper use to help us to become a regional venture capital hub for both Singaporean and foreign ventures.
The Government should confine and expand its role as a facilitator by helping local ventures through its procurement policies, which my colleague Hazel Poa has brought up in her speech, through buying local products to boost their credibility and through providing facilities for testing and commercialisation for many more companies apart from the selective few presently.
Hence we urge the Government to relook at the allocation of resources to Research, Innovation and Enterprise in order to achieve better outcomes for Singaporeans and for our the economy.
Assoc Prof Jamus Jerome Lim (Sengkang): Chairman, I wish to declare that I work at a research-oriented Institution of Higher Learning.
In 2017, our national expenditure on research and expenditure, as a share of national output, amounted to a low shy of 2%. This amount is actually below the global average of 2.3% and, perhaps, more tellingly, for a nation that seeks to be a knowledge-based economy is also significantly below the amounts that other technology-seeking economies have devoted. The United States, for example, spends 2.8%, Japan 3.2%, Korea 4.6% and Israel 4.8%.
Our companies are also decidedly old economy. Singapore has few firms for which intangible assets make up the majority of the balance sheet. Even one of the top Singapore-based Internet and E-commerce firms, SEA Limited, reports that only about 1% of its assets are intangible.
There is solid evidence that R&D investments can improve and be a boost to productivity via catalytic effects on innovation. The need to boost productivity is especially poignant in light of Singapore's poor productivity performance and in effect that has been collaborated study after study. It can also pay for itself since heightened productivity would itself grow out our GDP pie.
Increases in national expenditure appropriately directed for R&D is, therefore, an evidently attractive avenue for not just boosting productivity and, therefore, growth but also helping companies and our people stay at the forefront of advances in the digital economy and other artificial intelligence revolution, green technologies, modern manufacturing and biotech innovations.
Civil servants responsible for disbursing grant support for firms confidentially share that they often face difficulty in identifying and allocating grant financing. They add that local businesses remain reluctant to fully embrace R&D, even where financial support is available. It is critical that we convince as many local firms as possible, especially those in the SME sector, that their continued success hinges on cultivating and embedding an innovative mindset.
Just as pertinent, we have to be sensitive to the transition process and channel R&D funds away from certain industries that our economy has traditionally relied on such as petrochemicals, wholesale trading or back-office finance that we deem to be inconsistent with our 21st century economic model. Instead, we can re-direct R&D grants and subsidies toward the sunrise industries that the Government has already identified.
Finally, I would caution this House that our notion of sectors deemed worthy R&D financing for innovation need not be wedded to solely high tech industries such as innovation and communications technology or biopharmaceuticals, but also much more traditional goods and services.
The vast majority of our government grants via A*STAR or IMDA, even when not explicitly earmarked for technology start-ups, are still heavily directed towards supporting business digitalisation. While important, innovation may occur in unexpected ways. For example, we can look at the continued refinement of modern Singapore cuisine, developing new techniques for sustainable landscaping and energy efficient building design, pioneering new elderly care methodologies, or identifying new tools to support advanced manufacturing, as Minister Heng has already emphasised.
More generally, candidate projects with the highest probability of success are seldom best identified via tightly defined conditions, which speaks to the need for us to be more accommodating in our assessment methods and more liberal in our qualification criteria for Government R&D grants. Under what conditions will MTI be willing to target and increase an R&D expenditure to bring us closer to the spending for technology driven economies? This amount, to be funded from public and private sources, will ostensibly be directed toward a broad range of innovative activity across the economy and especially in existing SMEs with innovative activity.
Mr Abdul Samad (Nominated Member): Chairman, in a Straits Times article on 21 Jan 2021, MTI declared that Singapore managed to attract about $17.2 billion in fixed asset investments in 2020, despite weathering its worst recession since Independence as a result of the COVID-19 pandemic. Such achievements must have come through great efforts by the working staff of luring and convincing investors to invest in Singapore. Well done to the staff in MTI!
We were also made known that such investments, when completed, would lead to the creation of more than 19,000 new high quality jobs over the next five years. We note that close to a quarter of the new jobs would be digital roles, such as cloud developers, software engineers and cybersecurity specialists.
Chairman, this news brings hope – hope of a Singaporean worker who looks forward to seizing opportunities for such high value-added jobs. In fact, union leaders are curious to know how our locals can seize such job opportunities. Such good jobs, we hope, will be able to lure the younger generation of ITE and Polytechnic graduates into the workforce early or even narrow the unemployment of our locals over the years ahead.
From the good news requires actions to get ready the workforce for type of skills and knowledge required. On this point, I would like to ask how the Labour Movement and our training associations like NTUC Learning Hub can collaborate with Government agencies like EDB and other key partners, to bridge the skillset gaps to ensure that we prepare our workers to seize the job opportunities and allow Singaporeans to form the core of the company workforce.
Information and knowledge actions will certainly give us more lead way to identify workers and training institutions to help prepare our workers. On behalf of fellow leaders from NTUC, we look forward to working closely with MTI and EDB to prepare our Singaporean workers to seize such high value-added jobs when the companies come on board. We want every worker to aspire for such jobs, as every worker should aspire to for better job, better work prospects, for a better life for themselves and their families.
The Chairman: Ms Janet Ang.
Ms Janet Ang (Nominated Member): Mr Chairman, Sir, I would like to take both cuts together.
The Chairman: Yes, please.
Ms Janet Ang: Mr Chairman, let me start by recollecting a meeting I had organised for a IBM Senior Vice President to call on the then Singapore EDB MD, Mr Lim Swee Say. During the meeting, Mr Lim asked a question which stuck in my head for good, and it goes something like this: “How can Singapore stay relevant to IBM’s growth ambitions and global strategies?”
After the meeting, the IBM SVP shared with me that no country has ever framed a question like that before! IBM was surely impressed, to say the least. That year, IBM established its first disk drive manufacturing facility in ASEAN, right here in Singapore. Was that a coincidence? And this track record persists even in COVID-19 year, as hon Member Liang Eng Hwa has shared earlier.
The Singapore EDB is an amazing marketing machinery in selling the advantages of Singapore and “bidding” for jobs for Singaporeans. Attracting the MNCs to our shores amidst competitive landscape is a feat in itself but what makes Singapore stand out is that Singapore delivers on our promise; a) with the Singaporean workers who are skilled, hardworking and principled; b) with Singapore companies that have the capabilities to be plugged into the MNC’s global eco-system; c) with our efficient government systems and non-corrupt business practices; and d) with Singapore being the open and global city that is attractive to the best of global expertise and diversity of brain power.
This has been what makes Singapore, a small economy, break out from the rest.
In recent times, there have been rumblings of “foreigners taking our jobs”. I believe that now is the time for stakeholders to work on a renewed social compact. And as I said in my Budget debate speech, I have highlighted two points: 29 TACs including SBF have signed a joint statement in support of fair hiring and employment practices. Businesses must play their part to have fair practice in the workplace, and develop local talent and leadership. For MTI and EDB, in their engagement with the MNCs to lean-in on the value of the Singapore talent as the foundation of their business success.
According to a McKinsey Study, post-COVID-19, we will see “remote work” on the rise. In other words, companies do not need to bring the foreign talents on-shore as they can distribute the work off-shore. Can the Minister share the Government’s strategy to maintain or even enhance our hub status? Or do we have an alternative strategy?
For me, I believe that a new social compact in the workplace is one of the critical factors.
For my fellow Singaporean PMETS, we need to acknowledge that foreign talents do complement Singapore talents. Asking “who has moved my cheese?” will not help. Having the skills to do the job is but minimum expectation.
According to a February 2021 Singapore Human Resource Institute study, employers increasingly look for critical attributes such as a growth mindset, a risk-taking attitude and a drive to excel. Our Singapore workforce and us as parents to the next generation workforce, must “wake up” from our unrealistic expectations, seize the day and bounce back with our classic Singaporean “Can Do” attitude. Appreciate the Minister's response.
Budget 2021 has the critical elements of Tech + Skills + Capital + Vision for Singapore to emerge stronger. I would like to focus on the Capital part of the equation in particular, Temasek and the Singapore Government’s co-investment to set up a new $1 billion \"Local Enterprises Funding Platform\". This Fund will invest in LLEs and support their growth. I am sure that the selected LLEs will benefit not only from the additional capital injected by this fund but will also benefit from Temasek’s leadership development, mentoring, and access to networks and tools, which will further enable the LLEs to accelerate their becoming potential local champions.
I have a few questions and one idea for the Minister with regards this purposeful proposition.
One, that criteria must the LLE fulfil for the company to be eligible to be a “target” investment for this Fund?
Two, assuming that there will be an over-whelming response from the LLEs, how will Temasek and MTI decide which LLEs to fund? For example, sector specific, green future and so on.
Three, will this \"Local Enterprises Funding Platform\" initiative be extended to support SMEs as well?
In Singapore, we have many SMEs which may be \"stuck\" due to lack of capital, lack of access to tools and networks especially for going beyond Singapore, and lack of leadership and expert capabilities needed to breakout and stand out. SMEs do hire more than 70% of our workforce. If we can lift our SMEs, it will be a lift for the Singapore workforce. I would like to make a plug for SMEs who are not quite your start-up, or your LLEs by size, to be given an opportunity to be a part of this initiative.
And, finally, I would like to offer an idea – perhaps, there is an opportunity for the LLEs to play \"Queen Bee\", to bring along the SMEs in their value-chain, and be funded as a portfolio of companies in a value-chain, under this initiative. This could empower the players to hunt in a pack, and thereby strengthening overall competitiveness.
Mr Gerald Giam Yean Song (Aljunied): Mr Chairman, I declare that I am a director of a local SME providing technology consulting services. SMEs face many challenges in attracting and retaining local talent. There is sometimes a bias against working for SMEs in favour of MNCs, GLCs or the Civil Service. Many SMEs try their best to attract local talent, for example, by offering competitive salaries, but with mixed results.
We need to help our SMEs attract more local talent if we are to nurture globally competitive, homegrown firms. I propose three ways to help them achieve this.
First, in both the classroom and at home, teachers and parents could encourage our young people to broaden their career aspirations and widen their definition of success. Not every child needs to aspire to be a doctor, lawyer, banker or government scholar. Many SMEs provide incredible opportunities to learn different skills and take on multiple roles.
Second, there needs to be a rebranding of SMEs as employers of choice. We have many local enterprises made good. We could do more to profile SMEs both in the media, and also as business case studies within classrooms.
Third, Enterprise Singapore could assist more SME managers to adopt modern management practices. They could be provided easier access to certified executive coaches who can provide one-to-one guidance on improving their management approaches. I believe all these could help our local SMEs become more attractive workplaces for Singaporeans to work and enlarge the SMEs' talent pool.
Mr Shawn Huang Wei Zhong (Jurong): Mr Chairman, SMEs have the potential to significantly boost economic growth. It is known that the productivity gap between large companies and SMEs can vary in several multitudes depending on the industry.
As such, helping to raise the productivity of SMEs can be a worthwhile endeavour given the potential upside and the ability to drive economic growth within the country. SMEs are better positioned to integrate proven practices and technologies. And they also have more agility and are at less risk in testing and adopting new technologies, especially technologies and processes of large companies. At the same time, SMEs can be more innovative. As SMEs are usually unencumbered by large systems and outdated strategies, they are often able to rethink established practices and cut through traditional industry boundaries.
However, the lack of resources and access to talent continues to pose implementation challenges for SMEs. Limited awareness of digital solutions, limited access to digital talent, and limited capital to invest in digital technologies can hinder the uptake of these technologies by SMEs.
Governments have started expanding their productivity programmes toward digital adoption and started dedicated programs to help SMEs deploy more productive digital processes.
One good example we could learn from is the Mittelstand 4.0 centres of excellence in Germany. An example would be the first 26 AI competence centers, staffed with 20 AI coaches to train 1,000 SMEs each year.
As shared in a McKinsey report, in Finland, the Ministry of Economic Affairs and Employment and several technology industries have launched an accelerator dedicated to helping firms deploy digital solutions. The accelerator offers six-month programmes for companies that have already piloted AI application on products and services. About 15 Finnish companies provide funding and technical support to the accelerator. Then, these organisations would work with service providers, start-ups, academia in short sprints to help deploy the AI applications or the deliverables. The first batch of companies from accelerator, for example, would work together to then deploy speech recognition technologies.
Some companies progress by fusing physical and cyber realms. One such local company come to my mind. Leon, the founder of a local watch company, BOLDR, has a global franchise. They are amongst the first to build a mechanical watch with digital functions. With two full-time employees, Yong Hong and Jaspo, they design, build and supply watches using Sellita and ETA movements. Watch enthusiasts would know that these are very high quality movements.
As the name of the company represents – BOLDR – we too can help SMEs tackle challenges and develop their capability to expand further.
To secure Singapore's future we must be able to build an innovative eco-system that has the ability to grow and compete globally.
As such, I would like to seek the Minister for Trade and Industry's update on how the Government is supporting enterprises to commercialise and capture value from innovative ideas generated from R&D; how we can help our enterprises grow innovation capabilities; how local enterprises can be supported to grow and build capabilities to compete globally; and finally, how to support and transform and seize opportunities to emerge stronger.
Mr Edward Chia Bing Hui (Holland-Bukit Timah): Mr Chairman, Sir, as no one single economic entity can be self sufficient and survive in a silo – just as humans require some form of interaction with one another – every business needs to collaborate and coexist. I hence would like to ask the Ministry on the existing take-up rate of Partnership for Capability Transformation (PACT) grants and how many of the applicants involve companies collaborating across industry verticals.
PACT should be the first port of call grant for all enterprises to encourage companies to collaborate and achieve greater economies of scale. Government funding will also be maximised as it impacts two or more businesses and their employees.
Due to our small domestic economy base, it is crucial that we foster a collaborative and partnership mindset amongst companies. Such joint venture projects and collaborations can be preludes to deeper partnerships such as actual mergers and acquisitions as company founders, directors and employees develop trust and relationships with each other.
This is crucial in our efforts to scale up SMEs. This complements the Deputy Prime Minister's announcement of a joint Government investment with Temasek Holdings to invest in our LLEs as it provides a pipeline of SMEs that could grow to become LLEs or be combined with LLEs via mergers and acquisitions.
Mr Saktiandi Supaat (Bishan-Toa Payoh): Mr Chairman, in the past year, industry players in the tourism sector have made many changes to survive in this challenging climate. But the hard truth remains that we are a small market and we need to be realistic about the current lower appetite for international leisure travel.
Nonetheless, we should use the crisis as an opportunity to drive innovation and improve productivity and boost Singapore's profile as a safe, secure, efficient and exciting destination. Can we continue to enhance infrastructural and product development in the industry to ensure that Singaporeans want to holiday at home and that we can compete in international markets? We can also plan to run more safe and secure major events designed to assist in the global recovery from COVID-19.
With that in mind, what are the short to long-term plans for the tourism sector? How can we help the financing structures for tourism SMEs and hotels and to integrate new digital capabilities? How can we invest efficiently in the sector to keep it afloat while keeping losses minimal? Are there plans to partner with other regional tourism boards in other companies and corporates to give the sector a much-needed boost in the post-COVID-19 environment?
Mr Derrick Goh (Nee Soon): Mr Chairman, may I take cuts (u) and (v) together?
The Chairman: Yes, please.
Mr Derrick Goh: Sir, SMEs have given feedback that they have been very grateful for the relief measures such as the Jobs Support Scheme (JSS). One SME restaurant chain owner mentioned to me about how JSS helped her business stay afloat and survive the most difficult period last year, allowing the SME to retain over 50 staff to reach the stage now where the business is seeing some improvement.
As the economic recovery will take longer, some business segments will experience a flatter K-shape recovery. The key measures of help from the Resilience Package such as the JSS and Government loan schemes such as the Temporary Bridging Loan Programme, will end by 30 September 2021. What are other non-financial support will be provided to help boost SME services to help them ride out this pandemic situation?
SMEs are doing what they can to do more business, so in place of subsidies, will the Government be planning to bring forward contracts to support the demand for SME services?
As border controls and travel restrictions will take a lot longer to normalise, given the pandemic situation outside of Singapore, this means that the tourism industry will have to bear longer the low demand for their services. Given this, what other plans does the Government have in place for the tourism sector beyond the Resilience Package?
Many of our residents will not have the opportunity to travel and have been keen to explore more of Singapore, as observed from the experience of the last December holidays. Will the Minister consider accelerating domestic tourism for our citizens to further explore Singapore's nature and arts and culture scene to help our local businesses?
Mr Chairman, on item (v). We have been striving to help strengthen our SME businesses. It is a known fact that they are often faced by challenges, such as the lack of business size and scale, and as a result, face challenges in adopting technology solutions that could generally be costly on a standalone basis, but could perhaps be a lot more affordable if adopted across a segment of the industry.
Taking an example from SMEs in the restaurant business, we are seeing an increased use of e-menus. However, the use of e-ordering solutions and analytics is way lower even though it helps productivity and can even help supplement the lack of manpower and wait staff.
SME entrepreneurs want to focus on their business and many are not tech savvy. They want to see more help – from an economic standpoint of technology service as a platform. So, for one, they will not see the incurrence of capital cost, since grants generally do not cover 100% of the initiative; and secondly, they want to minimise risk since they do not know if the benefits of the technology solution will pay off.
Given situations like this, what will the Government do more of and differently beyond providing grants to better encourage and guide our enterprises to adopt technology and digital solutions to improve productivity?
From a trade associations and chambers of commerce (TACs) standpoint, they also have a role to play, given their influence through their long-standing relationships with their members. Can the Minister explain what the progress has been in this space so far, and if TACs can play a part to help aggregate the demand for such information and communications technology (ICT) needs to further complement the efforts of the Government to deliver more economical solutions for the respective segments in their industries?
The Chairman: Minister Chan.
The Minister for Trade and Industry (Mr Chan Chun Sing): Mr Chairman, let me first thank all the Members for their questions and many useful suggestions. I would also like to thank the many Members who have spoken kind words on the work that MTI has done over the last one year.
Mr Chairman, over the past week, much has been discussed about how we should or should not use our reserves, and how we can and we should – and we want to – do many more things for various groups in our society.
However, we must not lose sight that first and foremost, we need to earn our keep – for this and future generations – under the shadow of the COVID-19 pandemic. We are still trying to get out of the most serious recession since Independence.
We are not returning to a pre-COVID-19 world. Even if our gross domestic product (GDP) returns to a pre-COVID-19 level, quantitatively, we will have a qualitatively different economy then.
The share of sectors and industries will be different. The types of products and services that we produce and trade with the world will be different. The skillsets of our people required to make a living will be different. We must start now to build this new economy.
I will be frank. There are many challenges and downside risks. Geopolitical tensions remain a concern. Technological disruptions are accelerating. The COVID-19 virus is mutating. The rollout of vaccines across the world is uneven and this will complicate countries' recovery from the pandemic.
All countries have spent an extraordinary amount of fiscal resources to stabilise their economy. Many, if not all of them, will contest for fiscal revenue, possibly leading to tax policies that will distort investment, production and trade. The rules-based global trading order, underpinned by the proper functioning of the World Trade Organization (WTO), is straining. Global supply chains are being re-ordered and re-configured, not always for economic reasons.
Mr Liang Eng Hwa and Mr Desmond Choo asked how we can remain competitive and relevant amidst these disruptions.
The short answer? We need to turn these challenges into opportunities. We must be a safe harbour for capital, talent and ideas in an uncertain world. We must be connected, trusted and resilient, as a node, both physically and virtually, in order to serve different markets in a bifurcating and fragmenting world.
We need to embrace technology, especially digital technology – to be the disruptor and not be the disrupted.
We need to master digitalisation to transcend the constraints of our size and geographical location, where mastery of data can lead to increasing returns to scale. And we need to leverage on our small size to pivot faster and to respond more nimbly than our competitors.
Over the last six months, MTI has visited our companies every week to see how we can work with them to overcome the immediate challenges but more importantly, to seize the opportunities going forward. These plans have been widely reported in the media and I will not repeat all of them today. Instead, I will draw together three broad strategies that we must execute well, consistently and coherently.
First, strengthen our position as a global hub for business and technology. Second, entrench ourselves as a critical node in global value chains to make us hard to displace. Third, build real and unique capabilities in our enterprises and workers so they can compete in a more globalised world.
Mr Liang Eng Hwa and Ms Foo Mee Har asked how Singapore has performed as a business hub amidst COVID-19.
We have done credibly so far. We have attracted in 2020, $17.2 billion worth of Fixed Asset Investments and $6.8 billion in Total Business Expenditure. These are votes of confidence and faith in Singapore. We should be proud of how we have responded, but we must press on. The ease of digital connection, collaboration, supervision and even execution will redefine the role of hubs for businesses.
Lower value-added activities will increasingly be off-shored to remote working sites, as they are no longer constrained by geographical boundaries. Work from home means work from anywhere around the world. Competition will never be local but always global.
However, the world will still need high quality business hubs for high value-add transactions and trusted collaborations that must be executed via physical interactions. For Singapore to be in this global class of the few high-quality, high-trust business hubs, we will need to create an environment where we distinguish ourselves.
And this is how we are going to do it.
First, with clear, transparent, consistent and coherent legal and policy frameworks to allow businesses to mobilise capital, aggregate talent and protect intellectual property.
Second, with progressive rules to enable new business models to thrive.
Third, with superior networks that give us denser and more secured connections with the world, allowing global businesses to operate out from Singapore.
Next, with a mix of global and local talent to serve diverse markets across the entire globe.
And finally, to entrench critical parts of the R&D value chains, so that businesses will include us in their innovation networks, even in the depth of any crisis.
These are the reasons why we are investing heavily in the development of our local talent, the attraction of global talent to complement and reinforce our local talent pool. This is also why we are aggressively strengthening our physical trade and digital connectivity including expanding our network of Free Trade Agreements and the new generation of digital agreements and partnerships.
This is also why we have spent and will continue to spend on our R&D – from basic research to translational research for commercialisation, and this also why – as we have heard from MinLaw – we will continue to strengthen our IP regime, from valuation to arbitration and assessment so that we provide a complete eco-system for businesses wanting to put their IP in Singapore.
We must get all these enablers right, to strengthen our position as a global business hub. With all these enablers in place, we are confident that our reputation as a trusted and efficient place to do business will distinguish us from the competition.
But, we are not complacent and we must never be complacent. We are always very aware of the stiff competition that we are up against.
Let me now touch on our second strategy to entrench ourselves in the global value chains
Indeed, the nature of competition has changed. While quality and cost competitiveness will continue to remain as important factors, other more important factors have arisen: the speed to evolve new products, the speed to penetrate new markets, the resilience of supply chains and the quality of new ideas, as intellectual capital will increasingly overtake physical and financial capital as the defining competitive yardstick.
Ms Jessica Tan and Mr Liang Eng Hwa asked about growth sectors, and how we can seize opportunities in the re-organisation of the global supply chains. We are looking out for emerging sectors such as agri-tech, urban mobility and sustainable urban solutions, as Prof Hoon Hian Tech has mentioned. Minister of State Alvin Tan will elaborate on how we will help local businesses venture into the agri-tech sector.
But, instead of just pursuing new \"sunrise\" industries, we also need to pursue critical capabilities needed to anchor ourselves in every industry that we choose to compete in – be they \"sunrise\" or otherwise. That is why our second strategy is to entrench ourselves in the critical niches of the global value chains.
Take the semiconductor industry, for example. How much we produce and how much global market share we command now may not be the most important question over the long term.
Over the long term, what is important is whether we have access to the intellectual property to produce the chips and the intellectual property to build those machines that produce the chips.
Moving further upstream, do we have the talent and talent networks to continuously innovate, to improve our processes and quality control, so that global companies will want to site their operations in Singapore and create better jobs for our people? These questions apply to high-tech industries like semiconductors, biomedical, and info-communications; as much as they apply to precision engineering and even to the manufacturing of the humble surgical masks.
Recently, I visited various enterprises and research institutes to better understand the new world of manufacturing to see how they incorporate Industry 4.0 technologies from data analytics to additive manufacturing.
A product that used to require many parts to assemble, can now be produced as one simple part, with additive manufacturing enabling, with much less wastage and much greater precision.
A product that used to take years to evolve can now be designed and redesigned in days.
A production system that used to be put together only after the product design has been finalised, is now being put together while the product design is being conceptualised.
The speed of evolution of products and production system is amazing. And we need to understand all these changes. The ability to set standards for adoption in a fast-paced market has become critical to a product's success. The \"good enough\" and fastest, will beat the better but slower. There is much that we need to learn and change our mindset in this new, competitive environment.
Doing what others do at a cheaper price, is \"Red Ocean Strategy\". In other words these are shark-infested waters, best avoided.
Producing things that others cannot, is \"Blue Ocean Strategy\". Here, the opportunities abound. Here, is where we want to be.
Similarly, we can no longer be a place of arbitrage. In a globalised world, we will be easily disintermediated and displaced by cheaper competitors or digital platforms, unless we can add something unique and of value to others. We must become the exchange that adds value.
The value-add can be the provision of complementary services or adjacent services, from financing, to legal to business syndication. It can also be in terms of verification and traceability in a world that is increasingly conscious about sustainability.
Mr Liang Eng Hwa and Prof Hoon Hian Teck spoke about enhancing connectivity and taking advantage of our economic openness. Indeed, our superior connectivity will be a value-add factor in a world seeking greater resilience and diversity in their supply chains.
We have here a deep and wide collection of global and local companies. This allows the companies located here to compete as an eco-system. And I want to emphasise this: we compete as an eco-system. In turn, our ecosystem attracts more companies to situate themselves here to take advantage of this superior network and the dense eco-system.
This is now a virtuous cycle that was hard-fought and hard-won. We must not lose this. If we do the wrong things and damage this reputation and ecosystem, we can quickly lose it all. \"Wrong things\" include inconsistent policies on business, taxation, manpower and talent. \"Wrong things\" include sending the world the wrong signals that detract from our intent to enable our companies to form globally competitive talent teams to compete with the world. We should be mindful.
Let me now touch on the third strategy: to deepen our corporate capabilities and workers’ skills. The IMF already ranks us a one of the world's most competitive economy. Our workers are amongst the world's best. But, this is a journey without end and we must continue to invest in their capabilities and skills.
This is why, I agree with Ms Janet Ang about about creating a new compact among businesses, employees and the Government. We will spare no effort to help our enterprises and workers acquire new capabilities to compete in a more globalised world.
We cannot shield ourselves from global competition, but we can and must equip ourselves to compete globally. Businesses can play a role in this, together with Government and the unions.
We must all play our part to develop the local talent and grow Singaporeans to take on leadership positions. Singaporeans must also be prepared to venture overseas to seize new growth opportunities. These are the correct ways forward for a small economy like ours.
To deepen our corporate capabilities requires an eco-system approach. We must leverage on our existing strengths in tradition industries such as aerospace and manufacturing, even as we invest in emerging technologies like digital services.
We must continue to attract global companies and MNCs with cutting edge business concepts and technologies to be planted here while we nurture our SMEs to be future global champions. I always tell our SMEs, \"Stop calling yourselves 'small, medium enterprises'. Aspire to be Singapore MNCs Emerging SMEs.\"
Mr Leon Perera asked about the grants given to MNCs versus SMEs and suggested to tie a conditional incentive for MNCs to work with local SMEs. I am glad Mr Leon Perera shares our philosophy.
In the last five years, we gave around $13 billion to MNCs and $21 billion to SMEs. But looking merely at relative grant amounts versus returns and value-adds overly simplifies the situation. First, the relationship between MNCs and local companies is often symbiotic. When MNCs here do well, they are more likely to work with local companies, source from them and have them as part of the value-chain and supply chains.
We also encourage MNCs to work with SMEs through the PACT programme, which supports knowledge transfer between larger companies and local SMEs or start-ups. And we will do more where it makes sense to.
Second, our support for MNCs and SMEs serve to enhance their symbiotic relationship in various ways. MNCs are already best-in-class in their industry. Our support helps them to bring in new business lines and technology that will uplift our entire eco-system and create high value-added jobs here.
For SMEs, we provide support for more fundamental purposes: digitalising, entering into new markets and streamlining work processes. As smaller businesses level up, they will also grow to become an integral part of the local supplier eco-system for MNCs and beyond.
Ms Jessica Tan asked how we can enable the active participation of local businesses in emerging sectors. We have different schemes to help companies big and small – because their needs are different. For large enterprises, our goal is to help them compete globally by providing access to superior trade networks, R&D and talent networks. We will help them become regional or global champions, by providing growth capital and support for the commercialisation of R&D.
For medium-sized enterprises, our goal is to have more of them and bulk them up to compete in niche areas, beyond Singapore. This why we embarked on the Scale-up SG and Enterprise Leadership Transformation programmes to build deep capabilities for them to compete on a global scale.
We also aim to help them internationalise by bringing them together to compete overseas with programmes such as GlobalConnect@SBF, and the Southeast Asia Manufacturing Alliance. Schemes like the Market Readiness Assistance grants help them to penetrate overseas markets.
Second Minister Tan See Leng will share more on the support available for different enterprises.
For small and micro-enterprises, our goal is to provide them with shared and digital platforms to improve their productivity and efficiencies by accessing shared capabilities, from design to sales to management. Minister of State Low Yen Ling and Minister of State Alvin Tan will share more.
I would like to say something. Our schemes are constantly evolving. We are never shy to do away with old schemes that are no longer relevant, no longer needed, or are less relevant. We will constantly re-invest our finite resources into the schemes that do the best, the most, for our enterprises.
Mr Chairman and Members of this House, let now me reiterate where I left off at the beginning.
We are not returning to a pre-COVID-19 world. How we make a living will change even faster in the days ahead.
Let us and let us help our people, focus our minds on the new forms of competition ahead, for it will be tougher, it will be more global. Let us not focus on the wrong issues or try to resist inevitable change, or try to protect what will be made irrelevant and displaced in time to come.
Ultimately, our ability to do many of the good things that we have said in this House rests on our ability to earn our keep and make a living in this more globalised, more competitive world and we must never forget that.
Let us face up to the competition, do the right things, help our enterprises and people acquire a competitive advantage to distinguish ourselves from the competition.
COVID-19 is said to be the crisis of our generation. This can also be the opportunity of our generation to distinguish ourselves, to lay the foundation for the next generation, by winning new investments and creating better jobs for this generation and the next. I have every confidence that if anyone in the world can do this, Singapore and Singaporeans must be amongst them, and we will emerge stronger together from this crisis. [Applause.]
The Second Minister for Trade and Industry (Dr Tan See Leng): Mr Chairman, I shall speak about two ways through which we will help our enterprises emerge stronger from the crisis.
First, by anchoring strong local enterprises; and, second, by helping our enterprises go global.
Mr Liang Eng Hwa, Ms Foo Mee Har and Mr Shawn Huang asked how we intend to support businesses and nurture them into local champions. We will do so by pressing on with industry transformation at both the sector level and, contemporaneously, at the eco-system level.
Our overriding priority over the past one year has been to weather the COVID-19 storm. However, we cannot hunker down forever. We must keep our eyes focused on the future and press on with industry transformation to emerge stronger.
Fortunately, we are not starting from scratch. We had earlier embarked on transformation through our 23 Industry Transformation Maps (ITMs) and we are refreshing them to make sure that they are still relevant in light of COVID-19, and that we are able to unlock new opportunities that have arisen globally over the last 12 months or so.
Mr Liang Eng Hwa also asked how we will turn up the pace of transformation and we will do this by strengthening our industrial ecosystem and accelerating Industry 4.0 or the I4.0 adoption. One example of this is the manufacturing industry. This is fundamentally changing with digitalisation, robotics and new technologies like additive manufacturing. The industry needs to transform to achieve our manufacturing 2030 vision and we are taking decisive steps to do so.
The Smart Industry Readiness Index or SIRI launched in 2017 helps manufacturing firms take specific, measurable steps towards transformation. We are working with the World Economic Forum (WEF) to make SIRI a global benchmark to facilitate our SIRI assessed firms to be able to compete globally.
The JTC-SBF Industry Transformation Initiative, which was launched last year, will further help local manufacturing companies in their I4.0 transformation, by providing access to resources like curated training workshops and capability building initiatives. We will also create new peaks of manufacturing excellence by bringing together related companies to collaborate, to experiment and to succeed together.
Just as Jurong Island and the Seletar Aerospace Park catalyse our chemicals and aerospace industries respectively in the not-too-distant past, so too will the new Jurong Innovation District or JID be the catalyst for I4.0 ambitions.
The JID will house the Advanced Remanufacturing and Technology Centre (ARTC) and factories of the future, and it will serve as the focal point to develop and testbed new technologies like 5G and autonomous vehicles to serve global markets.
I4.0 is most commonly associated with the manufacturing sector but, actually, the spirit behind it – one of being forward-looking and making the most of technology, finding ways to do things more efficiently and smartly – must be a pervasive culture for all of us. It has to apply aggressively across all industries. And I am happy today that many of our companies have imbibed this spirit.
Besides sector-level transformation, as I have alluded to earlier on, we will also do more at the eco-system level to nurture all businesses, regardless of size and sector, to pursue the next bound of growth.
In 2020, we enhanced co-funding schemes such as the Enterprise Development Grant (EDG) and Productivity Solutions Grant (PSG) to help companies transform their capabilities. Over 15,000 companies embarked on transformation projects with ESG’s support in 2020. In spite of the crisis, this is 50% higher than even in 2019.
We will also continue strengthening enterprise leadership capabilities through schemes like the Enterprise Leadership for Transformation (ELT) and Scale-up SG programmes. In particular, through Scale-up SG, we aim to groom another 50 future local champions over the next two years.
Mr Chairman, we will continue with this suite of support to strengthen enterprise capabilities. The Deputy Prime Minister has spoken about the various scheme enhancements we will make to encourage more companies to come onboard.
Let me emphasise three key areas that will form the next bound of growth for our businesses to be able to compete globally. One, a Team Singapore approach; two, access to financing; and, three, innovation.
First, a Team Singapore approach to capture opportunities.
Ms Foo Mee Har and Mr Edward Chia asked about how our companies can adopt a collaborative mindset such that the entire value chain is uplifted, and everyone benefits. Indeed, we must embrace this Team Singapore approach. Because our competition is not with one another here, it is with the world. So, individually, even our largest companies are modest by international standards. But, collectively, we can win as Team Singapore.
We are doing much more to develop our winning game plan. The Government is partnering the private sector on the AfAs; these are Alliances for Action. They bring together a diverse range of industry and public sector stakeholders to quickly seize opportunities in sectors, such as tourism, logistics and others. For example, the AfA on Smart Commerce has brought together industry players to pioneer new operating models, to digitalise and to diversify revenue streams. The AfA had launched an online-offline 11 November campaign, 11-11, incorporating gamification elements to provide retailers with more marketing opportunities and deliver consumers a whole new experience.
Another example is how various industry stakeholders collaborated to create opportunities in the pandemic for the Meetings, Incentives, Conventions and Exhibitions (MICE) sector. The Safe and Innovative Visitor Experience AfA developed a prototype for hosting exhibitions safely amidst last year's pandemic and tested it in November last year at the TravelRevive tradeshow. This has attracted close to 1,000 attendees, comprising 65 foreign visitors from 14 different countries. It showed that Singapore remained open for business – successfully and safely.
A big part of our ecosystem strategy is strengthening the partnerships between large and small companies. Hence, I agree with Ms Janet Ang that LLEs can play an important role in uplifting our SMEs. ESG’s PACT programme encourages such mutually beneficial partnership programmes between companies. PACT has supported more than 280 partnerships and benefited more than 1,500 Singapore-based firms since 2010.
The National Innovation Challenges, launched in 2020, also helps to catalyse cross-company partnerships to address sector-wide challenges. The NIC also helps smaller companies to build up their track record in the process. In addition, our trade associations and chambers of commerce or TACs, they will also play an important part in fostering industry partnerships. Minister of State Ms Low Yen Ling will speak more about this in her speech later.
Second, enabling greater access to financing and capital. Whether our businesses are planning to develop new products or expand overseas, having access to financing and capital is crucial for the enterprises' growth ambitions. This could be in the areas of product development or just for international expansion.
The Government carefully monitors our financing ecosystem to ensure that all companies – from start-ups to SMEs to LLEs – can access the capital that they need. We have extended the Enterprise Financing Scheme-Venture Debt Programme (EFS-VDP) and raise the maximum supportable loan quantum from $5 million to $8 million. This will give high-growth enterprises greater access to financing.
Ms Foo Mee Har and Ms Janet Ang asked about how the new Local Enterprises Funding Platform (LEFP) can support our local companies. This is indeed a very major initiative. The Government provides financing support to grow local enterprises, particularly when there is a dearth of private capital. Most of these are in the form of grants or loans.
Equity financing, equity initiatives are typically targeted at start-ups and SMEs. This is where the risk can be higher or you need a longer runway for more patient capital. This is done through existing co-investment programmes, such as those managed by Heliconia and EDBI or EDB Investments. However, there is an increasing need to support our larger companies with the ambition of becoming regional or even future global champions. This is where the LEFP comes in to precisely address and meet this need.
So, drawing on the network and expertise of Temasek, the LEFP will actively seek out promising LLEs to invest in, focusing on sectors that are aligned with the engines of growth in our economy. This complements existing efforts by EDB and ESG to help our most promising firms to scale up, to soar and to reach their full potential.
Third, supporting our enterprises to innovate. We will spare no effort to support our enterprises to innovate. But we hope our enterprises must also do their part to support us to invest in innovation. Businesses that leverage innovation are better placed to compete globally and capture value for our economy.
As the Deputy Prime Minister and Minister Lawrence Wong have mentioned in their speeches, RIE is a cornerstone of Singapore's national strategy to develop as an innovation-led economy.
Assoc Prof Jamus Lim spoke about increasing R&D spending. The Government is committed to investing about 1% of our GDP in research, innovation and enterprise over the next five years. And this is similar to our commitment for RIE2020 and our earlier research plans.
Our investments in RIE is at a comparable level to other small advanced economies. Unlike what Assoc Prof Jamus Lim alluded to earlier, we are by no means far behind. Compared to the more mature advanced economies, our RIE eco-system is still at a relatively early stage of development. Notwithstanding that, in absolute terms, we have increased our investments in RIE significantly since our first National Technology Plan in 1991.
In fact, if you look at, just for reference sake, Singapore's public expenditure on R&D, it was about 0.7% of GDP in 2018, compared to 1.1% for Denmark, 1% for Sweden and Switzerland. So, I think we need to compare on the like for like.
This kind of investments are significant for a small country like us. It is not just about increasing public investments into R&D, but it is about making very judicious investment. About spending the money wisely. About continuing to develop the capabilities that are needed for us to meet our national strategic needs and to create new growth opportunities for ourselves. And in the past 20 to 30 years, we have made collectively as a country, significant strides. But my exhortation is to everyone who is in this House: we cannot rush this.
Mr Leong Mun Wai also asked about the returns to our RIE investments and commented about the foreign talent in our RIE landscape.
Our investments in RIE have benefited Singapore in several ways. First, business expenditure on R&D has increased by more than two-and-a-half times, from $1.5 billion in 1998 to approximately $5.6 billion in 2018. We hope to continue to see continued growth of private R&D spending. All of our Government financing schemes, including the LEFP, the Venture Debt Programme and all the rest, help to crowd in private capital.
To his point about foreign talent in our RIE landscape, let me reassure Members of the House, that we have developed a strong core of research scientists and engineering talent and we will continue to grow our pipeline. In fact, the number of Research Scientists and Engineers (RSEs) has almost tripled from about 12,700 to over 36,000 in the last 20 years, from 1998 to 2018. And 70% of this group of 36,000 are either Singapore Citizens or Permanent Residents. Of this, the industry RSEs, both industry and private sector RSEs, grew at a slightly faster rate, from about 6,500 to over 19,000 in the same period.
For the RIE 2025, we will continue to push these initiatives and build up our scientific talent pipeline. We are increasing the A*STAR scholarships by almost 25% to encourage local undergraduates interested in taking up PhDs through the Singapore Teaching and Academic Research Talent scheme and the Returning Singapore Scientist scheme. We are strengthening the pool of Singaporean academic talent in our universities.
All of these returns extend beyond hard data. More and more companies are investing in Singapore because of the nexus to our R&D eco-system. Whether to create durable aircraft engines or skincare tailored to the Asian skin, they want to create intellectual property as a sustainable, competitive edge in an economy that is trusted, and in Singapore that fits the bill.
Our R&D investments also delivered benefits in a disruptive environment. During the pandemic, when the world was short of COVID-19 test kits, our biomedical science R&D capabilities built up over the past 20 years have enabled us to develop and manufacture Fortitude COVID-19 diagnostic tests, which have since sold more than five million units in over 45 countries.
Prof Hoon Hian Teck said that spurring innovation and activities will enable Singapore companies to capture opportunities, and Mr Shawn Huang has asked about how we are helping our enterprises grow innovation capabilities. As I have said earlier on, we will continue to support our enterprise, including SMEs, to benefit from R&D and innovation, particularly in areas that have delivered outsized returns. We will do so by providing financing for innovative start-ups.
ESG administers the Startup SG Equity programme to catalyse private sector investment into innovative Singapore-based tech start-ups in key emerging sectors. Besides equity co-investment, Section 13H and Fund Management Incentive tax schemes also encourage fund managers to direct their capital toward Singapore-based businesses and start-ups, and these schemes were enhanced in Budget 2020.
One of the challenge that start-ups face is the relative lack of talent who can bridge research and business. The newly established Innovation and Enterprise Fellowship programme will expand the local pool of deep-tech technical talent with experience in R&D translation, by connecting researchers with accelerators, start-ups, or investors for product development and technology commercialisation work.
Beyond start-ups, we are also doing more to help SMEs with innovation and commercialisation of R&D. First, talent and knowhow are critical.
We will continue to support SMEs that lack access to research talent through the Technology for Enterprise Capability Upgrading (T-Up) programme. With this T-Up programme, A*STAR seconds research talent to SMEs to enhance their innovation capabilities. Since its inception in 2003, more than 900 A*STAR researchers have been seconded to over 800 SMEs.
Our Innovation Advisors programme also facilitates the know-how by appointing experts from various fields to SMEs to impart relevant advice and networks.
Mr Chairman, I have described our strategies to anchor strong local enterprises to emerge stronger from the crisis. But the ultimate ambition is to help our enterprises spread their wings and internationalise.
Mr Liang Eng Hwa asked whether the pandemic has put a dent on our internationalisation momentum and Ms Jessica Tan asked how our businesses can be supported to internationalise. Indeed, the travel restrictions have definitely made it harder for our businessmen to travel to foreign markets and the conditions in several of our major export markets remain challenging. However, I am encouraged by our businesses’ continued willingness to pursue alternative means of accessing foreign markets. We will do more to support our companies to internationalise and seize opportunities globally.
We will expand the Global Innovation Alliance (GIA) network from 15 to 25 cities over the next five years to support enterprises’ ambitions to expand their global market outreach and seek innovation partnerships. Cross-border innovation platforms such as the Co-Innovation Programme (CIP), under the GIA, will support our enterprises in collaborating with overseas partners on innovation projects.
We will also support to offset businesses’ internationalisation costs, in addition to the six-month extension of support levels for the Market Readiness Assistance (MRA) grant, we will also fold in Trade Credit Insurance support to help defray costs of such insurance. In addition, we have also expanded the scope of qualifying expenses in the Double Tax Deduction for Internationalisation (DTDi) scheme to include Virtual Trade Fairs to account for new modes of internationalisation due to COVID-19.
Third, a key ingredient of international success is a strong talent pool. Through the Global Ready Talent (GRT) programme, our students and young professionals can gain greater exposure and deeper in-market knowledge, and thereafter, become strong contributors to their employers’ global expansion efforts. And since the launch in 2019, GRT has supported more than a thousand Singapore enterprises in creating such opportunities for close to 6,000 students.
Ms Jessica Tan also spoke about the importance of our trade associations and chambers of commerce (TACs) in supporting businesses to compete globally.
This brings me to my last point on how TACs are supporting internationalisation. One example is how the Singapore Business Federation (SBF) has partnered ESG to launch its GlobalConnect@SBF initiative. This initiative, through their team of market advisors, providing targeted advisory services, has since supported more than 2,500 Singapore businesses in spite of the challenging conditions in 2020.
Supported by all these efforts, our common vision of success is to have an eco-system of resilient enterprises that are highly capable, that are open to collaboration, and that are equipped to compete globally. They will be nimble, and innovative, and able to withstand external disruptive shocks and black swan events such as COVID-19.
In conclusion, Mr Chairman, opportunities favour the prepared and the bold. For budding entrepreneurs, I encourage you to take the first step. Put your dreams into a business plan, develop a minimum, viable product or solution, present them to us. And we will review and where it is feasible, we will do our best to help you, to uplift and to soar.
For existing enterprises, I urge you to seize the opportunities available and to dream big. If you have the gumption to take the next step, the Government will ride this journey with you. To strengthen you, to enable you to spread your wings. We will be the wind beneath your wings.
The Chairman: Mr Alvin Tan.
The Minister of State for Trade and Industry (Mr Alvin Tan): Mr Chairman, Minister Chan Chun Sing spoke about digital acceleration and how it is affecting businesses, workers and consumers. With COVID-19, tech adoption is no longer an option, but an imperative. Indeed, we have observed two major transformation trends.
First, the global tech landscape has transformed. It has become quicker, more dynamic, more competitive. Before COVID-19 hit, 80 of the world’s top 100 tech companies were already operating in Singapore. Despite the pandemic, we have attracted even more tech-driven companies to Singapore due to our sustained leadership in the digital field, strong intellectual property regime, digital connectivity and support for innovation.
For example, we announced in October that the Hyundai Motor company is constructing an innovation centre here to pilot new advanced manufacturing models using artificial intelligence, big data and other technologies.
Such investments will boost Singapore’s mobility eco-system and grow adjacent industries. But such investments are by no means guaranteed, and we must secure our position in this highly competitive environment. We simply must, as Mr Lee Kuan Yew reminded us, stay relevant to the world.
The second transformation is that more local companies have used tech to transform. Businesses that are thriving in this new world, have transformed by using digital solutions to access new markets even without a physical presence.
In the spirit of SG Together, our Government is supporting businesses digitally transform. Initiatives such as Grow Digital, as part of ESG’s and IMDA’s SMEs Go Digital programme, help businesses reach global audiences through e-commerce platforms.
I hope to see even more businesses tap on such initiatives to transform themselves.
Tech can transform firms, but it can also catalyse sector transformation. It can help struggling industries, like our tourism sector, pivot and prepare for recovery, but also uplift high growth industries, like agri-food tech. This is because sectors such as agriculture and retail have successfully used tech to grow and create new opportunities. With agri-food tech, we can now produce food more efficiently and strengthen our food supply resilience. This helps us overcome our challenges as a resource-constrained country where land and environmental factors make it challenging for an agriculture sector to thrive.
Sophie's Bionutrients which is a Singapore-based company is the first agri-food tech start-up to grow alternative protein from microalgae in a matter of days, using just a fraction of space. It won the 2019 Liveability Challenge and will launch its first urban protein production facility here and scale up in Asia. Companies such as Sophie’s Bionutrients highlight the vast opportunities that businesses can seize using tech.
Mr Don Wee asked about our plans to help SMEs venture into the agri-food business. Enterprise Singapore (ESG) and the Singapore Food Agency (SFA) have schemes to support agri-food tech businesses and catalyse private sector financing from set-up to scale up. These include ESG’s Enterprise Financing Scheme and SFA's Agri-Food Cluster Transformation Fund.
To encourage early-stage equity investments into Singapore-based agri-food tech start-ups, ESG collaborated with SEEDS Capital to appoint seven co-investment partners. We expect this to translate into more than $90 million of investments. Shiok Meats, a local alternative protein start-up, which raised $17.3 million in Series A funding, is an example of companies that could benefit.
And as we grow this industry, new exciting jobs will be created for Singaporeans. When I visited the Marine Aquaculture Centre in St John’s Island, I met with Ong Jingyi from Republic Polytechnic. She is an Aquaculture Specialist at Allegro Aqua. Young and passionate Singaporeans like Jingyi can look forward to exciting careers in our fast-growing agri-food tech industry.
So, tech is a useful tool to help businesses grow, secure new opportunities and survive during COVID-19. This is especially so for our tourism sector which is struggling.
With on-going travel restrictions, our tourism sector continues to face difficulties. Mr Saktiandi Supaat and Mr Derrick Goh asked about how we are helping our tourism sector recover.
In 2020, we supported over 7,000 tourism businesses to retain locals through our Jobs Support Scheme (JSS). We will extend the JSS by six months to support our tourism sector, as Deputy Prime Minister Heng has suggested. Tourism firms will receive 30% support for wages paid from April to June 2021, and 10% support for wages paid from July to September 2021.
We will also extend the waiver of licence fees for hotels, travel agents and tourist guides to December 2021.
As international visitor arrivals will likely remain weak this year, domestic demand is critical to support our tourism businesses which is a point that Prof Hoon Hian Teck made earlier. So, one such measure to catalyse domestic demand is our SingapoRediscovers (SRV) campaign and vouchers scheme which will continue to encourage Singaporeans to explore our diverse offerings and support our local tourism businesses. We are closely monitoring feedback about the SRV scheme and are exploring ways to further improve it.
COVID-19 has changed the tourism landscape and travel norms. Beyond current challenges and looking ahead, how can we help our tourism sector transform and build resilience against future disruptions? Here is what we are doing.
Last February, we set up the Tourism Recovery Action Task Force, comprising tourism leaders from Government and industry, to identify opportunities and to co-create solutions to ensure that our tourism sector is well-placed when borders reopen.
To support our MICE industry and MICE sector, we set up the Alliance for Action on Enabling Safe and Innovative Visitor Experiences which worked closely with Government and industry to develop a prototype for safe tradeshows and exhibitions.
The Singapore FinTech Festival x SWITCH event is an example of how the sector has adjusted to seize opportunities amidst COVID-19. When I visited, I saw first-hand how its organisers, SingEx and Singapore Association of Convention and Exhibition Suppliers (SACEOS) pivoted into a unique hybrid event. Instead of setting up chairs and screens at Singapore Expo like they used to, they had to set up digital networks, large scale ZOOM conferences and real-time dashboarding. I met with Si Choon Hoe, a 65-year-old senior executive at SingEx who picked up these skills and is sharing his wealth of experience with younger colleagues. The event was a success, attracting participants from over 160 countries.
Through STB’s \"SingapoReimagine\" initiative, we are working with tourism sector to spark ideas and shape the future of tourism – positioning Singapore as an attractive and safe destination.
We will also open Tcube this year which is a platform for tourism stakeholders to meet and test new solutions.
Tech is key in the transformation process. But at its core requires talent. People. The two transformations I talked about are only possible because Singapore remains a trusted and well-connected hub where talent can grow and thrive. Talent that can help us to nurture a vibrant and competitive tech eco-system that can hold our own against the world and help Singapore remain relevant.
Mr Abdul Samad asked about the job opportunities and required skills arising from investments and business trends. Increased production and consumption of digital services have fueled the demand for tech talent in Singapore.
Based on LinkedIn’s Jobs on the Rise Report, the demand for data science, cybersecurity and specialised engineering talent in Singapore has surged. Microsoft’s estimate that there will be 149 million new tech roles globally by 2025. So talent is scarce and global competition is fierce. Korn Ferry estimates that the world will be short of 4.3 million tech workers by 2030.
Other countries are already in the hunt for this talent. Countries such as France, China and Malaysia have also enhanced or launched visa programmes to attract tech professionals to their shores.
So, what must we do? We cannot afford to close ourselves off from the world. We need to continue ensuring Singapore’s global attractiveness and work with companies to attract and develop the talent they need, both locally and globally.
We must and will also grow our own local timbre. Second Minister Tan See Leng spoke about building talent and leaders in SMEs locally. In the rapidly evolving tech sector, we are also doing the same.
Ms Jessica Tan and Ms Foo Mee Har asked about our plans to grow our local tech talent pipeline. Our Government, Institutes of Higher Learning (IHLs) all play important roles in this regard.
The TechSkills Accelerator (TeSA) programme equips individuals with in-demand skills in emerging tech and helps our companies upskill existing workers and hire professionals. MCI will share more about TeSA at their COS.
Our IHLs are also training aspiring talents to take up ICT roles. Over the next three years, our IHLs will generate around 20,000 local tech talent, supplemented by at least 6,250 from WSG’s and IMDA’s place-and-train programmes in functions such as Software Engineering and Cybersecurity. These are jobs that the LinkedIn and Microsoft reports show to be in hot demand.
The private sector is also playing its part with Trade Associations and Chambers (TACs) such as SGTech having set up the STAR fund to help members deepen their capabilities in the workforce.
Mr Chairman, globally competitive teams have diverse and cosmopolitan workforces, with a mix of talents from different shores. Minister Chan spoke about how Singapore must remain open to talent if we are to compete and secure our position globally. This is even more critical in the tech sector.
So, we must attract global talent to complement our local workforce and fill our skill shortages. This is part of our strategies to develop a base of tech companies and talent to ensure Singapore is able to compete globally. This will also create more opportunities for locals to work in globally competitive teams and dynamic teams, along top tech talent from all over the world. As I did; and as some Members in this House, including Ms Janet Ang in IBM and Ms Jessica Tan in Microsoft did.
So, one way to ensure top talent joins Team Singapore is through Tech.Pass and Tech.Pass which allows high-achieving, top-tier global talent to contribute to our economy in multiple ways as a founder, employee, consultant and academic. This puts Singapore in a competitive position in the global race to attract highly skilled tech professionals in critical fields.
To Ms Foo Mee Har's question, we have seen keen interest in Tech.Pass since applications opened in mid-July and we will continue to evaluate the scheme.
Beyond tech roles, demand for other key skills has also expanded. Businesses that have experienced a surge in demand for products and services have expanded their engineering, production and business development capabilities. Sectors, such as Advanced Manufacturing, continue to see strong demand for automation engineers and design engineers and skillsets such as programming and 3D modelling and we have initiatives to help jobseekers gain these required skills.
Singaporeans can also gain hands on experience through industry-relevant training. For example, under the Attach-and-Train programme for robotic engineers, Singaporeans can learn robotics and automation technologies through on the job training attachments at host companies.
Mr Abdul Samad will be pleased to know that our Government works with tripartite partners, including the Labour Movement, training providers and the industry, to develop such schemes and upskill Singaporeans in progress with Singapore’s growth.
Mr Chairman, we are in the middle of the most challenging pandemic recession that our world has faced. We cannot let up. We must seize the opportunities that are feasible to us. We must remain open and not closed to the world and as the world transform so must we ahead of the world, relevant to the world.
In this transformation, our Government will stand shoulder to shoulder with our businesses and our people. We will and must ensure that Singapore continues to be a global centre for business, innovation and talent, where local and global talent can live, work and play.
In my maiden Parliament speech, I likened Singapore to the Starship Enterprise – diverse in talent, always exploring new frontiers, boldly going where no one has gone before and breaking through the crisis before us.
But we cannot be a global node without also transforming our local businesses. In that vein, Minister of State Low Yen Ling will next elaborate on the support for our local enterprises as they undergo their own transformation journey. [Applause.]
The Minister of State for Trade and Industry (Ms Low Yen Ling): Mr Chairman, as Singapore settles into Phase Three and vaccinations are underway, we seek to sustain the momentum for recovery and emerge stronger post-COVID-19.
Earlier, Minister Chan, Second Minister Tan and Minister of State Tan spoke about our forward-looking agenda and reiterated MTI's commitment to help our enterprises emerge stronger from this crisis. So, let me now elaborate on our near-term priorities ahead.
SMEs will continue to play a pivotal role in the recovery of our economy. They make up 99% of our enterprises, of our companies and contribute 72% of employment. To support the SMEs’ recovery and growth, we will strengthen our business eco-system in partnership with companies and trade associations and chambers (TACs).
Let me share how the Government will co-create the future roadmap with SMEs and boost our support for digitalisation as urged by Mr Shawn Huang and and Ms Jessica Tan.
I meet with the heartland merchants regularly. Several shopkeepers indicated their interest to go digital, and those who were online, were keen to do more. They asked for more resources and support to innovate.
This positive attitude and readiness to transform is commendable and we will pull all stops to rally behind our SMEs, our heartland merchants.
Our flagship Heartlands Go Digital Programme provides specific support to equip our heartland shops with up-to-date IT knowledge, e-payment options and digital solutions. It aims to revitalise heartland shops and future-proof these businesses with solutions ranging from visual merchandising in stores to local place-making activities and digital marketing. This programme is led by the Heartlands Digitalisation and Revitalisation Committee co-chaired by Senior Minister of State Sim Ann and myself, reflecting a collaborative and, most importantly, an enterprise-centric approach. The Committee comprises Federation of Merchants' Association Singapore (FMAS), Heartland Enterprise Centre Singapore (HECS) and Government agencies like ESG, STB, GovTech, IMDA and HDB.
To rev up the speed of adoption, close to 200 Digital Ambassadors and business advisers have been on the ground reaching out to some 20,000 heartland enterprises. They shared with the shopkeepers about the benefits of digitalisation and provide step-by-step guidance on how to go digital.
As of February 2021, we have engaged more than 85% of these heartland shops and are on track to meet our target this month.
Interestingly, over the last one year, we are seeing more second generation and third generation family heartland businesses leveraging on available Government programmes to transform their business by going digital. Allow me to share one interesting example.
Petite Blooms – they are a florist business in Teck Whye, run by a mother and son team – recently made the leap to e-payments because they wanted to capture the growing number of e-savvy customers. Today, up to 25% of their sales use e-payments and revenue has gone up by 10% in the first three months of going digital. Petite Blooms is also now on Shopee. Thanks to the Heartlands Go Digital programme, the shop has diversified its revenue streams and enhanced its online visibility, resulting in more business.
Mr Chairman, while we reposition our SMEs for growth through digitalisation and innovation, it is equally important to extend our support for capability development and cashflow management. Mr Derrick Goh and Mr Gerald Giam can be assured that we have many programmes that boost the productivity of SMEs and make them more competitive and attractive to Singaporeans.
In particular, the Productivity Solutions Grant (PSG) that was introduced in 2018, continues to assist businesses in their transformation journey and provide them with support for IT solutions and equipment as well as consultancy services. Since then, more than 19,000 SMEs have adopted IT solutions and equipment to get ahead. The top sectors for PSG adoption include the retail, building and construction, wholesale trade, food services and services sectors.
To help more enterprises transform, we are extending PSG's enhanced maximum support level of up to 80% till 31 March 2022. We hope this will encourage more SMEs to come onboard, transform and gear up for economic recovery.
The journey to transformation, though exciting, can be tough too. That is why we have 11 dedicated SME Centres providing one-stop assistance for SMEs islandwide. The centres' onsite business advisors partner our SMEs to guide them in their capability development and growth.
Mr Shawn Huang, Mr Derrick Goh and Mr Desmond Choo will be delighted to know that the SME Centres will begin piloting specialised advisory services to support enterprises in specific areas such as digitalisation and financing.
For example, when a SME wishes to expand but lacks the funds, the SME Centre's specialist advisor will help to assess the company's financial health and recommend the appropriate financing model and available financing instruments. The specialist advisor then guides the business owner and the SME on how to strengthen his or her loan applications and will then also provide the link-up between the SME and the relevant banks for their loan application.
Last year, the SME Centres assisted over 32,000 SMEs and more are expected to benefit from the new services. We urge SMEs to tap on the advice and resources available at our 11 SME Centres. We want to help SMEs to build up their capabilities and workforce so that they can raise their productivity and scale up their business.
I would like to assure Mr Gerald Giam that the Government is constantly looking at how we can assist SMEs to attract more local talents. The Global Ready Talent Programme (GRT) helps SMEs and enterprises build up their talent pipeline by exposing more Singaporeans to internships and overseas work opportunities. This allows our SMEs to discover potential employees and also provide our students with a better appreciation of our SMEs.
Mr Chairman, we share Ms Jessica Tan's view that Government schemes should be streamlined and made more accessible to businesses. With easier and smoother Government transactions, we hope business costs will be reduced.
This is why we have rolled out the GoBusiness Gov Assist, a portal that consolidates all available Government assistance onto one platform. Since its launch last August, it has received over 230,000 unique visits. This year, we will be introducing an online guided journey on the GoBusiness platform to help businesses start faster and start right. It will provide a step-by-step guide on how to set up a business as well as recommend a suitable business structure and suggest relevant resources.
In addition, the GoBusiness platform will have a function to assist our businesses to make checks or changes regarding premise use. This will allow companies to also quickly check, identify the right governing authority and provide information on the approved uses of rental or purchased commercial premises.
While we gear up for an economic recovery, we are also mindful of the on-going challenges in our economy. To navigate the uncertainties, we need all hands on deck. This is the time for our trade associations and chambers (TACs) because our TACs are most needed to help their members overcome difficulties and capture new opportunities.
In my recent engagements with the various TACs, I saw how they led their members to build core capabilities and pivot to other business models.
For example, the Singapore Furniture Industries Council (SFIC)'s fifth Membership Assistance Scheme benefited over 70 companies with training, opportunities in design innovation and digital capability development. It also also introduced Creativ-Space, which is a new business-to-business (B2B) e-sourcing and marketing platform that is first-of-its-kind in Asia. I graced the launch in October last year and saw how Creativ-Space helped 20 local brands, including Commune Lifestyle Pte Ltd, to break new ground and expand their reach to areas like Europe. I am delighted to hear that Commune Lifestyle's e-commerce sales have doubled in the last 10 months.
TACs also will play an important role in facilitating greater collaborations between enterprises. We are aligned with Mr Edward Chia's views on supporting more business collaborations. Second Minister Dr Tan See Leng has shared about how the Government will continue to support collaborative projects through schemes such as PACT.
Mr Edward Chia and Mr Derrick Goh will be pleased to know that the Government will work more closely with our industry partners such as TACs to upgrade their core capability. As TACs continue to play their role of supporting industry transformation and business growth, they will have to attract, retain and develop the right talent. Recognising this need, a TAC competency framework, led by the Singapore Chinese Chamber of Commerce and Industry (SCCCI), with the support from the Singapore Business Federation (SBF), BSG and SkillsFuture Singapore (SSG), will be developed.
This is the first time a competency framework is being created for TACs. Developed in consultation with the TACs, the framework will identify existing gaps and relevant skills required by the TAC secretariats and their leaders. Suitable programmes will then be developed to upgrade and build the skillsets of the TAC sector.
This competency framework is expected to be ready in the third quarter of this year and we strongly encourage our TACs to adopt it to upskill their staff. Mr Chairman, in Mandarin, please.
(In Mandarin): [Please refer to Vernacular Speech.] Mr Chairman, SMEs play a pivotal role in the recovery of our economy. They make up 99% of our companies and contribute 72% of employment.
To support the SMEs and micro-enterprises to recover and grow, the Government will introduce the following three new initiatives.
First, SME Centres would begin piloting specialised advisory services to support enterprises in specific areas such as digitalisation and financing. For example, SMEs with queries on financing can consult the SME Centres' Specialist Advisors, who will help to access a company's financial health and recommend the appropriate financing model and available financing instruments. Similarly, SMEs can also seek professional advice from the SME Centres' Specialist Advisors on matters related to digitalisation.
Secondly, we will be rolling out two new features on the GoBusiness portal. We will be introducing an online guided journey on the GoBusiness platform to help businesses start faster and start right. It will provide a step-by-step guide on how to set up a business as well as to recommend the suitable business structure and suggest relevant resources.
In addition, the GoBusiness platform will have a function to assist businesses to make checks or changes regarding the premise use. Businesses that wish to change the use of their premise can submit their application to do so on the GoBusiness platform. This will help to simplify the interface between businesses and Government agencies.
The Government will work closely with the TACs to develop a TAC competency framework, which will help TACs in attracting, retaining and developing the best talents. The framework will enhance the relevant skills required by TAC secretariats and their leaders to effectively support businesses in their transformation and development. This competency framework is expected to be ready in the third quarter of this year.
The Government has been injecting resources into supporting the continued growth of our SMEs. We hope that SMEs will capitalise on these schemes to transform and increase their productivity so as to secure their own future.
(In English): Mr Chairman, in closing, there will be no return to a pre-COVID-19 world and our enterprises must seize the initiative to transform their business models to secure the future. Rest assured that MTI, ESG and the various economic agencies will work hand in hand with our enterprises, TACs and industries to co-create, innovate and unlock new opportunities for growth.
Together, we can overcome as partners in solidarity, forging a new tomorrow where businesses, companies, SMEs and heartland shops will thrive and flourish. [Applause.]
The Chairman: Mr Liang Eng Hwa.
Mr Liang Eng Hwa: Sir, two clarifications for the Minister. Firstly, on the Trans-Pacific Partnership (TPP), which is now known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The United States was the original member of the partnership agreement but has since withdrawn under the previous administration. I just want to ask the Minister how does he see the prospect of the United States rejoining the agreement now that they have a new administration.
My second clarification: the Minister spoke about the substance of our recovery. He mentioned that, quantitatively, we may have shown some growth year-on-year but, qualitatively, we have some way to go and may not be out of the woods yet. Can I ask the Minister how would the Government help companies not only to chase top-line growth but also to grow qualitatively or to transform qualitatively? Does it necessitate a different approach in the way we support companies and businesses, going forward?
Mr Chan Chun Sing: Mr Chairman, I thank Mr Liang Eng Hwa for his two supplementary questions.
First, on the issue of the TPP and CPTPP. Recently, I think Members would have heard the interest of the United Kingdom and even China to join the CPTPP. From Singapore's perspective, we welcome all countries who are able to meet the high standards of CPTPP to join us so that we can continue to enlarge the partnership for the benefit of all members and also to have more certainty for a rule-based trading order in the world.
With respect to the US' interest or renewed interest to return to the TPP or CPTPP, at this point in time, I think it would be premature for us to come to any conclusion. Because the United States, they themselves are doing their own internal deliberations as to whether they should rejoin the TPP and if so, how.
We are in communications with our US counterparts. We encourage them to take a fresh look at this agreement, not just from the economic perspective but also from the geostrategic perspective. The response that we have thus far gotten from the US administration is that indeed, they have members within the administration that are open to relooking at the merits of this agreement, from both the economic and the geostrategic perspective.
Mr Chairman, on the second question that Mr Liang Eng Hwa asked, indeed, quantitatively, with good progress towards the end of this year or the early part of next year, we should be able to get back to the same GDP level as the pre-COVID-19 level, quantitatively. However, qualitatively, as I have mentioned in my speech, the economy would have changed. And I think we can look at it from two perspectives.
The first perspective, many people have talked about a K-shape recovery. And there are two dimensions to a K-shape recovery. One is that, within the whole economy, the K-shape refers to some sectors which will continue to do well and may, in fact, do much better in a COVID-19 environment. These include some in the biomedical sector, the ICT sector. And there are also sectors within the economy that will continue to require help to sustain them through these difficult times. These include the aviation sector and the tourism-related sector. That is the K-shape within the macroeconomy. But there are also K-shape recoveries within certain specific sectors. I take the example of retail as a good example.
Overall, for the enterprises that are in the retail sector, some of them are doing much better than even before because they are able to seize the opportunities and pivot into the online sector. They are able to use the online space to transcend their ability to serve markets beyond Singapore. So, some of the retailers are doing much better, especially the online retailers. But on the other hand, there are also retailers that do not do as well because their models of just being an arbitrage centre would increasingly be disintermediated and be displaced. So, we need to be careful about the forces, both at the macroeconomy and at the sectoral level.
The other qualitative change that Mr Liang Eng Hwa's question alluded to is this. In the past, many of our businesses are very wont and very concerned with controlling their cost structure and, indeed, all businesses must do that. But going forward, beyond controlling our cost structure, there are a few things that are more important – and equally, if not more important – than just controlling the cost structure.
The first and most important thing is how can we get increasing returns to scale by increasing the top line. So, to increase the top line, our companies will need to penetrate overseas markets, use the cyberspace to go beyond Singapore. Second, how do we compete on the basis of our intellectual capital beyond our financial capital or the conventional factors of production, like land, labour and so forth? So, these are important ways that we need to change our mindset of how we compete in the new world, compared to the past. Thank you.
The Chairman: Mr Leon Perera.
Mr Leon Perera: Thank you, Mr Chairman. And I thank Minister Chan and all the MTI officeholders for their replies. I have just one more general point of clarification which I suppose I should direct to Minister Tan See Leng because he talked a lot about the take-up rate for various schemes, like the ESG and so on. So, I think that it is important for us to monitor these take up rates, like the number of firms which have availed themselves of the scheme. I would like to ask the Minister: would he agree that that is not an effort indicator? And effort indicators are important. They are useful and we should measure them. But does the Ministry also measure outcome indicators? What do I mean by \"outcome indicators\"? At the end of the day, how many of these local companies are achieving a certain threshold in terms of shareholder value, in terms of market share in a particular product category, in terms of absolute revenue signs or so on?
Now, I know that it is difficult to assess causation versus correlation. I know, at the end of the day, the entrepreneur is responsible for delivering outcomes. The scheme is just an enabler or facilitator. But would it not be useful for---does the Ministry actually do this to measure at the end of the day, and we have a pool of local companies who have benefited from various schemes after a certain period of time, X number of these local companies have attained these performance benchmarks and these thresholds, so that we know that we are sort of moving in the right direction, even if it is not possible to pinpoint causation?
Mr Chan Chun Sing: Mr Chairman, I thank Mr Leon Perera for that question. On behalf of Minister Tan See Leng, because this involved the whole MTI portfolio. The answer to Mr Leon Perera's question is definitely yes. We definitely benchmark what we achieve, not just from the input perspective, but from the output and also, most importantly, from the outcome perspective. Indeed, that is my guidance to all the MTI staff and our Statutory Boards that whenever we apply a scheme to any of the enterprises that we intend to help, let us not just look at the input, not just look at the output, but look at the outcome. And, as Mr Leon Perera says – and we agree with him – that the outcome will depend on a multitude of factors. It may not be causal, but it will, at least, give us a sense of whether we are making progress. And that is why, during my speech, I mentioned that, at every point in time, MTI is constantly reviewing our schemes to make sure that we apply the finite resources to the best use in order to grow our enterprise as an eco-system. And where we need to, we will make some adjustments to the scheme. We will prune some of the schemes that are less relevant in order to redirect resources to schemes that are much more in need by the enterprises.
The Chairman: Ms Jessica Tan.
Ms Jessica Tan Soon Neo: I have two clarifications, one is for Minister Tan See Leng who mentioned the point about the review on the ITMs to ensure their relevancy. Is any work being done to also look at the ITMs and the age adjacencies across ITMs because there could be new opportunities and new business models that could be taken up from those opportunities?
The other question is for Minister Chan with regard to his point about not just looking at the sunrise industries, but also a very important focus is also on entrenching and embedding ourselves within the global value chain. Can the Minister also share some of the key priorities in what is being done in this space and where are some of the key focus areas?
Dr Tan See Leng: Mr Chairman, I thank Ms Jessica Tan for the question. The answer to the question is, yes. In fact, we are in the process of reviewing. Obviously, during the pandemic, a lot of the opportunities have also availed themselves in terms of the digitalisation efforts and how we conduct meetings and so on online, to even the review of some of the industry transformational maps with regard to the biomedical and biopharma industry in terms of diagnostics, biotech and so on. So, this would be a more systematic review of how we can look for new cheese and look for new areas in which we can enlarge the spheres of influence around some of these industry transformational maps. And to the extent that is possible, we could even have overlapping areas in which we can find new opportunities to branch into.
So, I think, in time to come, we should be able to update the House a few months into the future. Thank you.
The Chairman: Assoc Prof Jamus Lim. Sorry, Minister Chan first for the reply.
Mr Chan Chun Sing: Mr Chairman, let me answer Ms Jessica Tan's question with a framework and also perhaps to illustrate that with one or two examples.
Why is it so important for us to entrench ourselves in critical niche areas? Now, we have to be honest with ourselves. Given our size, we are unable to compete in all parts of the value chain and, in fact, very few, if any companies or enterprises will try to do that. Then the question we ask ourselves is: given our size, given our capabilities, which part of the value chain can we best entrench ourselves that makes us harder to displace – not impossible to displace; there is no such thing.
So, let us look at the IC chip, for example, the semicon industry. Many people produce many types of wafer fabs, semiconductors and so forth. And we cannot possibly compete in all of them. But there are certain niche areas that we have the capability and where we focus our R&D into those capabilities, for example, the RF modules, so that we can carve out a niche for ourselves in those very specific areas. So, we look for areas whereby we have a competitive advantage, not based on size, but based on our intellectual property.
Recently, I visited the humble mask-making machine when we acquired the capabilities to make the filters so necessary for good-quality masks. We ordered two machines from two different countries. And, lo and behold, as we assembled the machines and as we got to understand the production a bit better, we realised that, common to both machines, there is one particular part in both machines that is the most expensive part. It looks rather innocuous, but it is the most expensive part. It costs about more than 10% of the price of the entire machine. Just a block of metal with 4,000 very fine holes that allow us to make those fibres. And we cannot even see the holes with our naked eye. And that taught us a lesson. We may be buying machines from different countries because everyone wants to diversify their supply chains, and so do we. But that particular country that made that particular part of the machine has captured a very niche area that very few can do. That even if machines come from different parts of the world, they, ultimately, go back to that same supplier. This is the kind of niche areas that we aspire to be in for our industries so that we are in critical parts of the global supply chains that make us hard to displace.
The Chairman: Assoc Prof Jamus Lim.
Assoc Prof Jamus Jerome Lim: Thank you, Chairman. I thank both the Ministers as well as the Ministers of State for their very insightful look at this. In fact, I must say I thoroughly enjoyed, especially the two speeches by Ministers Chan and Tan, and I find myself almost dangerously in unanimous agreement with what they have shared. Now, that said, I will just point out two things.
One is that while I appreciate that the Government has shared that Singapore spends a comparable amount in public expenditure on R&D to countries like Sweden, I should note that the figures I cited were actually for national R&D, which includes spending from private sources. And this is not in dispute, I think. It is from a source with reliable provenance. So, I wonder whether the Government will be willing to share its strategy for perhaps catalysing greater R&D spending by the private sector.
Mr Chan Chun Sing: Mr Chairman, we thank Assoc Prof Jamus Lim for agreeing with us on many things. Let me talk a bit more about how we want to catalyse R&D spending. In fact, indeed, it is very true. The Government cannot always be the one to decide which area of R&D spending that we want to do. Of course, there are areas of basic sciences that we will need to invest because there are very little commercial opportunities at that stage of development. But at the later stages of R&D development or for research and innovation, we will want to crowd in – as Minister Tan See Leng said – we would like to crowd in more private investments in this. And that is why there are different schemes for different parts of the R&D chain. Upstream, for basic science and technology, most of the funding will come, generally, more from the Government sources. But as we go downstream towards the innovation and commercialisation possibilities, we would have to crowd in more of this. That is why, as a strategy, as we go downstream, our funding of many of these initiatives, we would like to have a funding component that sees the private sector participation. The Advanced Remanufacturing and Technology Centre (ARTC) is a good example.
All the companies put skin in the game and the Government chipped in our part as well. This is how we crowd in the thing. The companies come together to define the R&D outcomes that they would like to see and they will also share the outputs that can be derived from the research effort. So, this is the kind of effort that we would like to encourage our private sector to work with the Government, especially in the downstream translation into commercial opportunities. So, it is not the same type of strategies across the entire different parts of the R&D chain. It is also not the same type of strategy for different types of R&D, ranging from biomed to deep-tech, to other e-commerce opportunities.
The Chairman: Ms Foo Mee Har.
Ms Foo Mee Har: Thank you, Chairman. I have two clarifications for the Minister and Minister of State. Let me start with the first one.
Minister of State spoke about the Tech.Pass programme that was launched. It is attracting strong interest, but I do not believe there was much colour. I did ask quite specifically to give us some colour about the type of entrepreneurs that it was attracting. What are the some of the things they are bringing to Singapore? So, if Minister of State can give a bit more colour about the success of this scheme because I think there is a lot of interest.
The second clarification is for Minister Tan about the nurturing of the deep-tech start-up eco-system. I had asked what is our share of the deep-tech start-up given that Singapore is particularly known intellectual property protection. So, are the start-ups that we are nurturing, are they of the deep-tech type?
Mr Alvin Tan: I thank Ms Foo Mee Har for question with regard to the Tech.Pass. Let me just take a step back and just share a little bit about the Tech.Pass programme and where we are currently.
The Tech.Pass effectively targets a set of very high skilled tech professionals, includes tech founders, leaders and experts. And these professionals would have a track record either in founding or leading sizable tech companies as well as in the development of tech products that has mass adoption.
These tech talents are, as I mentioned earlier on, in short supply globally. Since we launched it in mid-January this year, we have approved about 22 applications for the Tech.Pass, thus far.
Let me just share a little bit about what these tech professionals will do. It is not just in creating jobs for Singaporeans, because when they come here, they bring with them networks as well as their eco-systems and as well as their know-how and technical knowledge. But, they would have to take up lecturing roles in Institutes of Higher Learning. For example, serve on the board of directors of a Singapore-based company; be a shareholder or investor in Singapore companies; and also conduct corporate training or workshops. So, they are going to be deep seated into the tech sector and help us to grow.
But the tech sector is very fast and is very dynamic and so, we will have to monitor how the Tech.Pass is working. Thus far, we currently have 22, but we will have to adjust and see what kind of tech professionals we want to attract in, assess the viability and also assess how they are doing within the parameters that we have set up. So, we will get back to this House when we have more approvals and look at the efficacy as well as the effectiveness of the scheme.
Dr Tan See Leng: I thank Ms Foo for her question. Indeed, we actually have a very vibrant deep-tech, not just the the system but also the culture as well as the entire programme. Perhaps, I could simplify it into three thinking.
First is the knowledge part, the knowledge part of the deep-tech. In the knowledge part of the deep-tech, we have the Autonomous Universities, we have collaboration and tie-ups with international institutions to train and to also collaborate with talent from all over the world, to deepen the research, the development, the research and innovation into many of these deep-technology. For instance, like autonomous vehicles, the 5G networks and so on and so forth.
Then, there is the know-how. In terms of the know-how, we work very closely by expanding our global innovation alliance. As I have alluded to earlier on, we are expanding them from 15 cities globally to 25. We hope to broaden that by also deepening the co-innovation programme, whereby we establish partnerships between our local talent, our local homegrown talent, the talent that we also develop overseas and partner them with talents from from renowned institutions all over the world.
That has resulted also in us bringing companies, as what Minister Chan has alluded to earlier on, in the setup of the Advanced Remanufacturing and Technology Centre and SIMTech over in the Jurong Innovation district. And through the Polytechnics, again through our academic institutions, we have also developed Centres of Innovation, of COIs, to again establish strengthen and reinforce the entire deep-tech culture.
The most important part at the end – so, you have the knowledge, you have the know-how – I think given the fact that we are a very small market, we need to tap globally, we go on to the next step and into the know-who. So, I think it is not just important for you to have knowledge and know-how, someone many years ago, an entrepreneur told me that, \"You need to not just have knowledge, you need to know how, but you also need know-who.\"
For that part, we have the SBF working very closely with the ESG to establish whether it is from the point of view of service centres to guide many of these deep-tech companies – how to gain market access into many of these markets, but at the same time, also to sort of help them to navigate the difficulties of working through the different regulation, the legislature of different countries and so on, to penetrate these markets and gain acceptance.
So, in the entire eco-system from end-to-end, the Government has been involved in developing this deep-tech by providing in a summary: the knowledge, the know-how and the know-who.
The Chairman: Mr Saktiandi Supaat.
Mr Saktiandi Supaat: Mr Chairman, I would like to post a question to Minister Chan. We all know Singapore is now a mature economy in transition, and also our economy is still facing the impact of the global pandemic crisis. I hope we will all not be laud into this false notion that sectors and businesses are all doing well and the economy will be back to the pre-COVID-19 situation. I think Minister Chan mentioned about this earlier on, I just wanted to reiterate a point.
But, there are opportunities to capture value going forward. MTI spoke at at length about the many different strategies to help our economy recover and emerge stronger. These are good but multifaceted. So, among these, Minister Chan, can you help tell us or explain to us how Singapore can be different from others to beat the competition? I think this is very important and very key. Your elucidation will help us all focus on the key areas and most importantly, stay positive for the future.
Mr Chan Chun Sing: Mr Chairman, let me first thank Mr Saktiandi. Indeed, we are in a very challenging economic environment. At this point in time, recovery is far from certain. Uncertainties abound, it is far from business as usual. And we are definitely not returning to a pre-COVID-19 world, as Mr Saktiandi mentioned.
Competition has intensified, it will be more global not local. It will be much more digital not physical. It will not just be about cost and efficiency, but also about resilience and safety. And all these changes will continue to accelerate.
To win, we must move nimbly, move fast, move together. We must distinguish ourselves as a safe harbour for capital talent and intellectual property. We must present ourselves as a trusted hub with long-term policy vision and consistency. We must distinguish ourselves by being able to think much more global and much longer term.
And if we are able to combine all the above with substantive effort to build real and unique capabilities for our country, our enterprises and our workers, I am confident that we will emerge from this crisis stronger than ever before, pull apart from the competition and allow another generation of Singaporeans to have all the opportunities across the world in front of them.
The Chairman: Mr Liang Eng Hwa, would you like to withdraw your amendment?
Mr Liang Eng Hwa: Sir, I thank Minister Chan, Minister Tan See Leng, Minister of State Low Yen Ling and Minister of State Alvin Tan for responding to our cuts. I also want to thank the MTI team as well as the economy agencies for reaching out to our businesses during this very difficult period and helping those they are severely impacted by the crisis. We wish Minister Chan and the MTI team continued success as we position Singapore for the next mile of growth. So, with that, Sir, I beg leave to withdraw my amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $2,139,026,800 for Head V ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $8,955,686,100 for Head V ordered to stand part of the Development Estimates. (proc text)]
The Chairman\t: 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: I suspend the Sitting and will take the Chair at 3.35 pm.
Sitting accordingly suspended
at 3.13 pm until 3.35 pm.
Sitting resumed at 3.35 pm.
[Mr Speaker 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 Q (Ministry of Communications and Information) ","subTitle":"Creating a future-ready economy and workforce","sectionType":"OS","content":"Ms Tin Pei Ling (MacPherson): Chairman, I beg to move, \"That the total sum to be allocated for Head Q of the Estimates be reduced by $100\".
Sir, Singapore has great ambitions to achieve a thriving digital economy and Smart Nation. Talent and data are, in my opinion, the most basic yet most important success factors. We need data to innovate and we need people to get things done.
In my Budget debate speech in February 2020, I talked about the need for a high concentration of skilled workers with a critical mass of talents if we are to excel in tech and innovation, like we did in biotech. Singapore needs to offer an abundance of talents who not only meet existing demands but also attract future unicorns to Singapore from the region and beyond.
Just as importantly, we need to have homegrown unicorns. We need more Singapore digital leaders and tech unicorns to further cement our position in the world.
Today, the number of tech-related job vacancies is double that of the number in 2010, according to a recent report by the Boston Consulting Group. As we continue to attract large tech firms to Singapore and as we digitally transform our Singapore enterprises, the need for talents cannot be more pressing.
First, on digital leader and mentoring programme. I am heartened that the Government has introduced many useful schemes such as TeSa, SGUnited Jobs & Skills and the PCP, that help to strengthen our talent pool with the requisite technical knowledge and industry skillsets. To ensure sustainability and progression in this area, I would like to ask what the Government is doing to actively cultivate digital leaders. Would the Government consider formally introducing a mentorship programme that attracts top talents and company founders from around the world, perhaps to leverage the TechPass holders, to mentor our youths and start-ups?
I spoke about this in Parliament last year and I raise this again now. Ultimately, we would want to create a vibrant community of talents, groom the next generation and increase Singapore’s mindshare to further cement Singapore’s position on the global stage.
Next on women in tech. An area of keen interest to me is how we are attracting and retaining women in this niche tech space. The 2017 manpower statistics for MCI reported a distinct gender gap with male at 68% and female at 32%. In a 2019 Harvard Business Review research paper, it was reported that investing in gender diversity helps create a positive feedback loop in talent attraction and financial gains for a company. Drawing comparisons from the same Boston Consulting Group report that I mentioned earlier, the composition of women with tech-related degrees is 29% and this is less than the 53% representation in overall degrees. Hence, I would like to ask the Government what are the plans in place to further encourage the entry of women to the tech space.
Third, on transparency framework. Sir, we should call for greater transparency to what firms, especially large firms, expect of their corporate leaders. In an article by Forbes that outlined one of the benefits for introducing a transparent corporate culture is that it fosters employee happiness and talent retention. I would like to ask whether the government will consider putting in place a framework to enhance corporate transparency, especially in terms of tech talent development and progression.
Fourth, support for innovation. On the support for innovation, apart from the announced Research, Innovation and Enterprise 2025 Plan (RIE2025) to boost R&D, I would like to ask the Government what plans will be put in place to help local start-ups or local companies in the innovation sector to secure significant projects within and outside the public sector that can boost their credibility.
Apart from having a list of IMDA-accredited companies, could there be a more concerted effort to encourage government-linked companies to partner local tech firms and bring them along in overseas ventures? Without the opportunity to obtain a “big break”, our local start-ups can get stuck in a vicious cycle of small projects. This inadvertently creates a false impression that our local start-ups are capable of undertaking only small projects.
Moreover, without a sizeable project in Singapore to add to their credential, some local companies may face considerable challenges when venturing overseas, if they were to do so on their own. And, because of the lack of credibility or credential, local start-ups might be pressured to reduce their fees to secure the contract. This again creates a downward spiral of giving discounts which is unsustainable in the long run.
Can we pursue big brands less and favour our local companies a bit more? Could we consider “Support Singapore” measures to prioritise deserving local companies, perhaps those in the Scale-up programme, in certain public project tenders? Such opportunities could be the break our companies need to launch themselves as Singapore’s next tech unicorn.
And on to my final point on data collection. I understand that this is a sensitive topic, but the current highly sensitised climate makes it difficult for local firms to collect data for the purpose of innovating their products or services. At times, companies face challenges obtaining data, despite offering assurance that it will be anonymised. But without data, it could be very difficult for firms to innovate and they risk creating products in a vacuum.
Hence, there is a need to strike a balance in protecting data and enabling data for innovation. We want to be a global data centre. But how could we use data for greater good? Could the Government consider lending its support as a partner to companies in their research and studies? This could boost public confidence. What else could the Government do to strike this balance? Sir, I beg to move.
[(proc text) Question proposed. (proc text)]
Ms Tin Pei Ling: Sir, digital globalisation is accelerating. Digitalisation for businesses is no longer an option post-COVID-19. Moreover, going digital breaks down geographical and physical constraints and promises limitless markets and opportunities.
However, MSMEs often find it daunting to digitalise as they know not the \"what\" and the \"how\". Most of our MSMEs are resource strapped. Neither do they have the technical expertise internally to scan the horizon for the wide array of digital solutions available in the market, nor do they have the resources to engage qualified consultants just to help them digitalise.
On this note, I would like to suggest three points.
The first is to build trust in technology. “I don’t know what I don’t know”, “What if I am scammed?”, “Will the bank or agency know my everything?”. Buy-in amongst MSMEs on the benefits of digitalisation could remain weak. Absorbed in their daily operations, many MSMEs have little capacity left to care about achieving incremental productivity gain through digitalisation, when one, every day is an existential fight and two, the digital solutions are possibly “alien” to them. Compounded by the occasional stories of how some fall prey to scams, digitalisation can become a mysterious and scary monster. Could the government share how it is addressing myths and helping MSMEs understand the benefits of digitalisation, so as to engender greater confidence?
Second is to solve the know-how. Even amongst the more forward-looking MSMEs that believe in digitalisation, they may not afford the time to properly understand the digital specifications, much less to deploy and implement the solutions. Also, hiring an in-house IT expert, given their scale, could be costly. Therefore, the idea of pooling resources and having CTO-as-a-service as announced during this year’s Budget sounds like a very good idea.
And third is to demonstrate clear gains. The business imperative will be strong if digital adoption is shown to increase topline and reduce bottomline. Of course, Government schemes such as the Start Digital Pack are useful. But if I may suggest, it is for the Government to look into implementation details and how application experience can be enhanced.
For example, a local tech solution provider recently shared with me that many local MSMEs expressed interest to purchase its solutions because of the SMEs Go Digital funding. But because the deadline was strictly imposed and the application processing took a while, a number of these companies gave up for fear of missing the deadline by the time the application is approved, if it is approved. This to me an example of a missed opportunity for MSMEs to give digitalisation a shot.
Sir, with the accelerated pace of digitalisation, it is “do-or-die” now. I therefore ask the Ministry to share more about what is done to help MSMEs transform?
The Chairman: Mr Alex Yam.
Mr Alex Yam (Marsiling-Yew Tee): Chairman, digital technologies are indisputably relevant to the modern economy. And this has been particularly so during the COVID-19 pandemic.
As the demand for new spheres of innovation grows to cushion the disruptions and to leverage on new opportunities brought about by the pandemic, new applications, new digital solutions appear on a daily basis.
Digital technologies are increasingly impacting all parts of the economy. Even in the traditional sectors like F&B, agriculture, and construction, technology investment is growing fast as a worldwide trend.
Asia has been benefiting from the new wave of digital innovation in the recent years. Compared to the rest of the world, the IMF observed that Asia is leading in e-commerce and fintech. Both developing and advanced economies in the region have seen significant digital gains. We must strive to understand how best we can make the most of these digital opportunities to benefit our economy and improve our living standards. Can the Minister share how we will strengthen our competitive advantage in the global digital economy?
We have a significant foothold over our regional counterparts as tech giants flock to us to establish headquarters or regional offices in Singapore. But as we heard in the earlier MTI Committee of Supply, the technology talent crunch remains a perpetual concern. The information communications sector would need another 60,000 professionals over the next three years.
The Government and businesses must therefore focus efforts on finding talented individuals to secure our technology start-up status. It will not be easy as many of the job openings require specialists of digital skills. How do we therefore ensure that we have sufficient talent to meet the demands of our growing digital economy? Can we truly become Asia's Silicon Valley?
Mr Seah Kian Peng (Marine Parade): Mr Chairman, over the past one year, many of us have seen our screen-time increase by leaps and bounds. My friends in the stockbroking industry tell me that after years of decline, their commissions have gone up. Data has shown that there have been more trades done, although in small amounts. And we all know that shopping online is prevalent these days. Life has indeed changed and the digital world is occupying more of our waking hours.
How has digitalisation allowed us to ease into the new reality of life during COVID-19? I would like to also ask what investments the Government is making in terms of infrastructure, not just to enable the expansion of our digital universe but to keep it safe from scams and fair from all points of view.
Mr Sharael Taha (Pasir Ris-Punggol): Mr Chairman, Sir, please allow me to submit my cuts (e), (f) and (g) together.
The Chairman: Please do.
Mr Sharael Taha: COVID-19 has been a catalyst for business transformation. In the past, our close proximity to workplace, shops and markets meant ease of physical access. There was no burning need to digitalise to bridge physical distances. However, the pandemic has made it necessary for organisations and companies to explore digital solutions, such as the use of Zoom, e-payment and e-commerce.
We now better understand how digitalisation can help make our operations more convenient and efficient. The next step is to move from pockets of digitalisation or pilots to fully adopting real and sustainable digital transformation. This will enable us to go beyond the superficial grafting of technology onto current processes and instead, leverage fully on digitalisation and create fundamental shifts to our business models.
Only then, can we be fully poised to take full advantage of the opportunities emerging from the post-pandemic world economy.
It is noteworthy that the recent McKinsey report indicated that 85% of ASEAN companies are still stuck in this digitalisation pilot trap. How can MCI, MTI and MOM work closer together to support companies in driving real, sustained digital transformation? By stringing together cohesive programmes across Ministries to enable companies to build a coherent, successful transformation strategy and execution, possibly through a clear operation and technology roadmap from MTI, supported by skilled manpower through MCI's Digital Leaders Programme and SGUnited Jobs and Skills training guided by experienced practitioners using MCI CTO as a service while training organisational capabilities to drive insights from the better use of data.
Each Ministry holds a piece of the jigsaw puzzle. Coming from the industry, trying to navigate transformation is difficult as this is not merely improving productivity but is fundamentally transforming business models.
Many companies may need help to navigate the multitude of different schemes available. To assist companies to fully leverage on the suite of support packages available, can the Ministry consider some form of overarching business transformation support through a membership programme or handholding to help companies navigate the cross-Ministerial support for transformation? We need a more concerted approach to business transformation to help companies gain traction and better navigate the diverse cross-Ministerial support provided.
My second cut is about bridging the digital divide, in particular, inclusive growth for SMEs. The Go Digital Programme has assisted a lot of SMEs through their digital journey. One example of an SME that has performed well in their digital journey is Saffrons, an eatery in the east known for its fish briyani. Through adopting digital tools such as food ordering, third party food delivery apps, digital posts, witty marketing and, of course, good food. Its owner, Mr Rijal, shared that he has grown his customer base and revenue significantly. Saffrons is an example of a small, non-digital native enterprise that has been able to leverage on digital transformation.
However, not all SMEs have made equal progress in digitalisation. This pandemic has widened the gap between the digital haves and the digital have-nots. Some SMEs are still struggling to find value through digitalisation. With a lot of schemes available, how can MCI assist digital starters to navigate the eco-system of support? How can MCI help businesses unlock new value through digitalisation, especially digital starters that need more assistance? With more home-based businesses (HBB) and Singaporeans in the gig economy, how can MCI also assist HBBs to unlock value?
I applaud the continuous support for the SGUnited Jobs and Skills programme. I have met many residents who have benefited from the programme, from mid-career professionals to fresh graduates. Of these, many hold aspirations for joining the growing ICT industry.
However, some are still concerned that they lack the skills and industry background to seize digital opportunities. Many share that despite taking up several digital courses, they have yet to be given an opportunity for a career in the industry. They cited that they have been turned down as they lack experience. But without the opportunity, they will never be able to switch industries and gain experience in the ICT industry.
How can MCI help workers get an opportunity in the industry and secure good jobs in the digital economy? Can the Ministry consider some mechanism to balance the hiring of experienced and inexperienced talents in the growing ICT industry?
Mr Sitoh Yih Pin (Potong Pasir): Mr Chairman, SMEs provide employment to about 70% of our workforce and contribute almost 50% of Singapore's GDP. The digitisation of SME's business processes and the growing trend in e-commerce are two potential areas where SMEs can tap on in order to increase efficiency as well as to grow their businesses.
We have also seen, in the past year, under the backdrop of the COVID-19 pandemic, that digital transformation has become an imperative step that some SMEs have to urgently take.
I therefore invite the Minister to share with this House the Ministry's plans to support and speed up the efforts of SMEs in the digital transformation of their businesses.
Ms Mariam Jaafar (Sembawang): Mr Chairman, no fewer than 10 of our colleagues have spoken before me. The focus on SME digitisation in the Budget is welcome, with new initiatives as well as increased support levels for existing initiatives.
For SMEs, it is important that initiatives deliver value quickly. Otherwise, sign-up rates will be slow and dropout rates high. SME digitisation programmes often underperform because they do not meet the needs of the SMEs. As one SME told me, it is like these programmes only have one hammer and it does not matter what kind of nail I have.
One way to bridge this is to focus on scalable use cases rather than broad topics or frameworks that they have to figure out how to apply themselves. Getting value from any use case is also often about changing internal processes and driving a digital culture. It is therefore critical to provide a meaningful level of change management support. SMEs have quite different needs and expectations for the type of support and the degree of handholding. Programme designs can therefore be more targeted and differentiated for different segments.
In addition to this push approach of financing and grants, the Government can also work more with digital eco-system partners, especially tech giants, who are able to leverage their extensive networks and experience to pull support for SMEs. In China, for example, the JD \"Spark\" programme provides supply chain, business support and credit to bring stalls and shops online as well as flexible employment and work from home opportunities in poorer regions.
I hope the Government will elaborate on the take-up and effectiveness of the SME digitisation programmes that are being extended—and the lessons that have been learnt to date. I also hope that the different Ministries involved in this space will ensure, for example, that digital traineeships and SME digitisation can be synced to leverage each other in order for us to maximise our investment value. Otherwise, often, I find that MNCs are much more willing to accommodate digital trainees than our SMEs themselves. This will have to change for a sector that has to take 70% of our workforce.
Mr Don Wee (Chua Chu Kang): Mr Chairman, SMEs, which include the hawkers, provide employment for two thirds of our workforce and contribute to almost half of our GDP. The Government had put in place the SMEs Go Digital and Hawkers Go Digital programmes to support their digitalisation efforts so as to transform their operations, increase productivity and expand their businesses.
With the COVID-19 pandemic hitting so many business sectors, what has been its impact on SMEs' adoption of digital technologies? Has the Ministry observed any changes in the take-up rates of the digitalisation programmes and what has been the utilisation rates of the various services such as SME Digital Tech Hub consultancy services and pre-approved solutions and the Digital Resilience Bonus?
Digital transformation has not been uniform amongst the SMEs. Which sectors are slower and how is the Government supporting them to overcome the difficulties that they face?
Mr Liang Eng Hwa (Bukit Panjang): Sir, in the annual Budget of recent years, digitalisation is among the foremost priorities and items and have received significant budgetary allocation to drive this effort. I took a browse at the IMDA website and found that there is indeed a long list of schemes and support with the very specific purpose to help SMEs.
COVID-19 has given this unexpected boost to the adoption of digitalisation by businesses as well as consumers, who are using it more than before. Can I seek an update on the progress so far? How far more do we have to go and what are the further support and assistance in store?
Ms Jessica Tan Soon Neo (East Coast): Mr Chairman, COVID-19 has heightened the importance of connectivity to enable people to continue to work, live and play. Working from home arrangements, home-based learning and even communicating with family and friends would not have been possible without digital connectivity during this pandemic.
5G network technology can enable significantly enhanced connectivity and new capabilities. What is key about 5G is scale, low latency and high speed. 5G hence can transform and make possible connections previously not available, delivering new level of services, business models and experiences. 5G can make possible mission critical communication for infrastructure, emergency, security, medical and healthcare services.
While the benefits of 5G are vast, implementation of 5G is complex and involves multiple stakeholders. Increased connectivity and reliance on 5G networks will also increase cybersecurity risks. What is Singapore's approach and plans for 5G to ensure that consumers, businesses and the wider society benefit from 5G deployment while minimising the associated risks?
Mr Christopher de Souza (Holland-Bukit Timah): Mr Chairman, we have created a great start-up eco-system through innovative policies to attract many global firms to establish their headquarters in Singapore. With global tech giants like Google, Bytedance, Tencent, Microsoft, all having significant operations in Singapore, Singapore could become the Silicon Valley of Asia. In fact, Singapore could try to compete with Silicon Valley as the top place for start-up talent.
With the influx of billion-dollar companies providing stiffer competition, how is MCI continuing to develop and build the local eco-system for digital innovation to support home-grown start-ups?
The growth of the Internet of Things, Artificial Intelligence, the gig economy and global tech giants, means that the race for data and data-centric technologies firmly puts the issue of privacy in the spotlight. We have been cognisant of this and recently this House passed the Personal Data Protection Amendment Bill 2020 to hold organisations accountable for the data they handle. However, we still have a long way to go in finding that balance and calibrating between individual privacy and creating more connectivity and enhancing our quality of life.
With the digital landscape evolving rapidly, how are MCI and PDPC continuing to ensure that organisations respect privacy and are accountable for the data they handle?
My third and final cut, Sir. In mid-December 2020, it was discovered that SolarWinds Orion's business software updates had been trajonised. Due to SolarWinds' widespread global usage as a network management software, thousands of organisations, both private and public sector customers, were exposed to the malicious software update. The SolarWinds cyberattack highlighted the danger of supply chain attacks and the abuse of authentication mechanisms to gain access to a victim's internal network.
To continually combat cybercrime and cyberattacks, how is MCI working to ensure that Singapore's critical information infrastructure and government systems, and user data, are secure and not exposed to backdoors for future attacks.
Mr Alex Yam: Mr Chairman, for many of us, much of our live reality now takes place online. This also means that highly-sensitive personal data is being shared readily, but also often unknowingly.
In the past year, a quarter of Singapore residents suffered at least one cybersecurity lapse, with unauthorised attempts to access online accounts being most common.
For enterprises, cybersecurity is also becoming a day-to-day struggle, as cybercriminals, whose techniques are becoming increasingly sophisticated, continue with their attacks on different businesses.
COVID-19 has forced businesses and companies to rely heavily on digital platforms to operate remote places. These platforms are, therefore, attractive targets and are extremely vulnerable to breaches if security is not adequately maintained.
Transformative 5G technology also makes us more connected than ever. The recent cyber breach at Singtel is a stark reminder that even as we adopt new technology, major corporations with a wealth of resources are also at risk.
How then will the Government better protect Singaporeans and enterprises in cyberspace?
Ms Jessica Tan Soon Neo: Mr Chairman, there is a greater reliance on digital and tech across Government, businesses and individuals for connectivity, information access and exchange, and operations. Vast amounts of sensitive and personal or commercial data are used and stored digitally. This increases the risk of cyberattacks, which could result in loss and unauthorised use of personal and sensitive data and disruptions to operations and activities.
COVID-19 has driven the increased use of e-payments, mobile apps and e-wallets. Smartphones are effectively becoming mobile financial transaction hubs. With higher volumes of e-commerce transactions, strengthening of supply chains is important as cyberattacks on supply chains are increasing.
Can the Minister share how are we strengthening Singapore’s cybersecurity? With the importance of cybersecurity, how are we growing our cybersecurity local talent base?
Mr Xie Yao Quan (Jurong): Chairman, the global digital economy today is worth almost $3 trillion. And within ASEAN, this is expected to grow to $197 billion by 2025. Data will be our most valuable resource and data connectivity infrastructure and enablers, both globally and in ASEAN, will be critical. There is a huge opportunity for Singapore to be both a thought leader and the trusted hub for secure, seamless cross-border data flows.
Can the Ministry provide an update on its work, both globally and regionally on: number one, frameworks for data management including data categorisation and controls, as a common language for all parties in the digital economy; and, two, mechanisms for cross-border data flows to drive business innovation?
Chairman, on a related note, cyberspace has become a global common. Can the Ministry update on how Singapore is shaping the international governance of cyberspace, just as how we continue to shape international norms in the governance of air and sea spaces?
Finally, in 2019, Singapore launched the model AI governance framework at the World Economic Forum in Davos. The framework contributes to the global discourse on AI ethics by translating principles into practical recommendations for organisations to deploy AI responsibly.
On this note, can the Ministry update on the framework and how it would continue to support our national AI strategy?
Mr Liang Eng Hwa: Sir, the Government ended SingPost's monopoly in the basic mail services market in 2007, but IMDA continued to designate SingPost as a public postal licensee.
SingPost is required to perform a set of universal service obligation as determined by IMDA. Can I ask how does the Government ensure that SingPost will continue to deliver good postal services and fulfil its obligations to serve the public well? How will the consumers' interests and the mail integrity and security be protected?
The postal sector landscape has changed significantly in the recent years. Can I seek the Minister's update on the current landscape and what is MCI's plan to transform the postal sector to meet changing consumers' needs?
Mr Sitoh Yih Pin: Mr Chairman, I remember in my younger days exchanging letters with pen pals – yes, pen pals – pasting a stamp on the envelope and physically posting them. Today, e-mails, e-invoices and many other electronic modes of communication have proliferated in the digital age, with letter mail in a steep decline.
On the other hand, the advent of e-commerce has led to growing numbers of parcel and small packet deliveries. This has added a different logistical demand on our postal sector.
I expect both trends to intensify in the coming years. I understand that e-commerce volume is expected to grow between 12% to 20% annually for the next five years. We have seen this trend accelerate in 2020 given the COVID-19 restrictions in place. I therefore invite the Minister to share with this House the Ministry’s plans to transform Singapore’s postal sector to meet changing consumer needs.
Mr Edward Chia Bing Hui (Holland-Bukit Timah): Mr Chairperson, Sir, it is truly commendable on the efforts of MCI and its officers in implementing Heartlands Go Digital and Hawkers Go Digital to help businesses transform digitally. We note that the current efforts are laborious despite significance in results.
Can MCI incorporate certain digital adoption like digital payment solutions as a condition into new tenancy agreements and renewals, providing rental relief measures in return for digital adoption? For smaller businesses, can MCI provide aggregated anonymised data on a regular basis so that SMEs can understand how data can help augment their businesses?
There is also a need to transform our postal sector to meet consumers’ needs such as e-commerce parcels. Today, with digitalisation, consumers have a higher expectation towards faster and more convenient delivery of their parcels. This is a major challenge. To overcome this challenge, there is a need to expand the use of non-contact delivery methods like collections points with real-time tracking to minimise delivery disruptions. This form of non-contact delivery method reduces both economic and environmental cost due to reduction in door-to-door delivery.
With a demand in e-commerce purchases, this creates a rise in reverse logistics due to consumers’ return of purchases. Without a sustainable process, this can greatly counterbalance the efforts of parcel deliveries in reducing carbon footprint. Has MCI considered a circular economy on parcels through the process of delivery, return and recycle? What efforts have MCI undertaken in this logistical challenge to ensure environmental sustainability?
During key e-commerce seasonal sales, we observe higher volumes of packaging waste recycled at our blue bins. Therefore, can MCI further integrate blue bins in our estates or can data on parcel delivery be shared with blue bin collection agency, so that removal frequencies can be calibrated accordingly to maximise yield and efficiency?
Mr Cheng Hsing Yao (Nominated Member): Chairman, the growth of e-commerce has been accelerated by the COVID-19 pandemic. It will continue to be more pervasive. What is MCI doing to guide the postal sector towards a better regulated environment to ensure that consumers' interests are better protected? How will MCI provide a guiding framework across public and private sectors for the provision of parcel locker infrastructure as well as service delivery standards to enable e-commerce to thrive and to enhance users' experience?
The prevalence of e-commerce is also challenging the viability of many traditional retail companies, who need to review their distribution model. How will the new regulated environment enable traditional retail companies to pivot seamlessly to an online business model?
Ms Hany Soh (Marsiling-Yew Tee): Chairman, in Mandarin, please.
(In Mandarin): [Please refer to Vernacular Speech.] Reading helps broaden our horizons and cultivate a broad range of interests. Through reading, we can have better understanding on personal behaviour and gain more general knowledge. At a time when we are unable to travel abroad, reading allows us to better understand the history, culture and customs, as well as the latest developments of other parts of the world without going abroad.
(In English): Many residents have shared with me that before the COVID-19 pandemic, the library was the place that they most like to frequent.
In the opening address at one of the reading events at Woodlands Regional Library 10 years ago, former Minister for Information, Communications and the Arts Dr Yaacob Ibrahim said, \"Reading is essential to the development of our language and communication skills. It deepens our knowledge and enriches our lives by opening us up to the new world and new experiences. It also plays an important role in bringing family and friends together as many of us would have experienced the joy of discussing or sharing a favourite book with fellow readers. It is therefore important for any progressive society to nurture a love of reading and lifelong learning in its people.\"
In this regard, I wish to ask the Ministry, in today's digital world, how can we promote reading through easy access and ensuring that the e-books remain affordable for all? How are our libraries staying relevant in today's digital world? And how will they continue to meet the needs of Singaporeans, in particular, families with young children and senior citizens?
Further, during my recent visits to Prisons, I have come to understand that the Singapore Prison Service has begun to offer tablets to inmates for them to draft emails to their family members. To better facilitate rehabilitations and integrations for education, skills upgrading and enhance employability skills, can the Ministry work with the Singapore Prison Service to offer a wider range of books including e-books to the inmates?
Mr Eric Chua (Tanjong Pagar): Mr Chairman, libraries are society’s portals to knowledge. They play a central role in our younger generations’ journeys in learning, serve as a public space facilitating the transmission and exchange of ideas and culture, and they are also a great leveller as a provider of technology for the vulnerable.
As Singapore and the rest of the world gets unceremoniously jolted into the digital future due to the pandemic, what can we do to ensure that our public libraries keep pace with technological advances? How can we ensure our libraries continue to serve Singapore residents by playing its social and curatorial roles? In a world where a Google search often forms the first step of most, if not all quests in seeking knowledge, what are the evolutions our libraries need to make in order to ensure its continued relevance in the digital future? And on a related note, how will the role of our librarians need to evolve so that they too, can keep pace with these inevitable changes?
Mr Chairman, COVID-19 has forced the world to change the way we operate overnight. The pandemic foisted upon us the digital future in double quick time. Home-based learning for our young ones. Families increasingly reliant on e-commerce platforms for our everyday needs such as shopping for groceries. Life events such as weddings and wakes conducted over video conferencing due to safe management measures. Whatever the activity, the conclusion is one and the same: we have embraced digitalisation and there is no turning back, even when the pandemic finally ends.
Given this unintended but inevitable consequence of the pandemic, what can we do to ensure that digitalisation does not derail our efforts in strengthening our social compact? How do we ensure that the vulnerable ones amongst us are not by default technological laggards, as this only further entrenches their social and financial positions? And how do we ensure that our seniors are able to ride the fast and furious waves of new digital technologies?
How can we help our businesses to strike a sensible balance between maintaining existing legacy systems, yet at the same time, invest in digital business innovations? And what is our digital strategy to support our SMEs and local large enterprises (LLEs) not only to remain buoyant, but coiled and ready to propel themselves to thrive in the digital global marketplace?
Ms Nadia Ahmad Samdin (Ang Mo Kio): Chairman, our youths are digital natives, born into a world where the internet is deeply integrated into our lives. From learning, entertainment, grabbing food, getting around, socialisation and civic discourse, digital tools have tremendous benefits and can be an equaliser. Not sure of something? Just Google it and check.
We need to ensure that children from all walks of life are equipped to take advantage of the opportunities brought about by technology.
Still, the open nature of the digital realm presents dangers. From cyberbullying and exposure to unhealthy content to online radicalisation, the internet can also be polarising with social media warriors calling for people to blindly take sides instead of engaging in healthy discourse.
I would like to ask what the plans are to equip and guide youth from all walks of life and their parents towards a better and safer internet that enables social discourse and protect our youth, especially young girls, against online bullying and hypersexualisation.
Ms Sylvia Lim (Aljunied): Seniors Go Digital was launched in May last year to help our seniors build digital capabilities. At the parliamentary debate last June, I stated my support for it, but was concerned about seniors who might not be able to make the digital leap. The Minister clarified that the idea was to encourage the adoption of digital solutions, but to keep open the option of using non-digital solutions because there would be some who would still prefer them, or are uncomfortable with the digital part. He also highlighted that cybersecurity was something that would continue to be emphasised in the training programmes with seniors.
Since then, this programme has gained momentum. It was reported that the programme aimed to reach out to 100,000 seniors by this month. There had been roll-outs of low cost mobile phone plans for seniors through a scheme called Mobile Access for Seniors, aimed at the low-income.
To understand the impact of these schemes, could the Ministry clarify the following three aspects? First, what is the kind of reach that IMDA wants to achieve with the targeted 100,000 seniors? Is the KPI geared at the numbers who attend the courses? Or must a certain level of competency be demonstrated? Second, what is the expected number to benefit from the Mobile Access for Seniors scheme? And third, given the escalation of online scams, will the crime prevention aspects of the training be amplified?
Miss Cheng Li Hui (Tampines): Mr Chairman, MCI has made a good effort\tto help seniors in this digital age. The pilot project at\tGeylang East Public Library one-stop access\tto over 200 selected digital government services,\tsuch as CPF nominations and CHAS applications is very useful. Will this be implemented across all libraries?
Since the Seniors Go Digital programme was launched in 2020, how many seniors have been coached? How will IMDA scale up its digital literacy efforts to equip more seniors\twith digital skills\tto support\ttheir everyday needs?
Dr Shahira Abdullah (Nominated Member): Chairman, COVID 19 has accelerated digitalisation in Singapore. However, it also means that the vulnerable groups who were already disadvantaged before the pandemic may be left further behind.
The Singapore Government has put in tremendous effort in trying to narrow the digital divide on the back of the COVID-19 pandemic. Through the Home Access and NEU PC Plus programmes, many now have a digital device. MOE has aimed for a one-to-one laptop provision for all Secondary school students by 2021. However, increased digital device ownership would also mean that access to the support for maintenance would increase. Low-income households may not be able to afford these services from existing shops. Deputy Prime Minister Heng mentioned that non-profit organisations such as Engineering Good are already working with community partners to provide these services.
Therefore, I would like to ask the Ministry if we can tap on the networks and expertise of such organisations, who may already have ties with the Social Service Agencies, to help them expand their reach and enhance the suite of digital services they offer?
Digital literacy is also very important in this hyperconnected world. Users need to be aware of issues such as cybersecurity risks and responsible online behaviours. Practical skills like handling live- conferencing and dealing with internet connection issues would also need to be learnt. Often though, the students from low-income households may have parents who are not digitally literate enough to support them in these matters.
MOE already has a National Digital Literacy Programme for students. Would MCI consider partnering MOE and/or other Social Service Agencies to offer the programme to parents as well?
On 2 February this year, Minister Iswaran informed the House that under the Home Access and NEU PC Plus Programmes, Singapore’s household-level broadband penetration rate has increased from 87% in 2014 to 98% in 2019. There are 1.37 million resident households in Singapore according to the statistics. This would translate to about 27,000 households not having broadband access – no small number.
I appreciate that IMDA will be streamlining the application for Public Rental Scheme households to ensure that they can auto-qualify for the assistance. However, this would take time.
Beyond Social Services has a free wifi void deck project currently to counter that problem. Would the Government consider working with similar organisations to roll this out to more rental households so as to not delay access to suitable internet connectivity?
Mr Shawn Huang Wei Zhong (Jurong): Mr Chairman, we have seen how COVID-19 has accelerated digital innovation and transformed the way we live and work. We have seen many positive examples of our seniors carrying out essential tasks using digital means – SGQR codes for SafeEntry, e-payments just to name a few. Many of our hawkers have embraced digitalisation. Many offer e-solutions and now are on-boarding e-commerce solutions and leveraging online marketplaces to sell their products and services. I am heartened by the efforts of our seniors and hawkers.
However, everyone adapts to change differently. And I note that there are still many Singaporeans who need more guidance and support to adapt to digitalisation. We must not be complacent as there is a risk of widening the digital divide. MCI has done well to roll out digital inclusion initiatives like Hawkers Go Digital and Seniors Go Digital. I also note IMDA and National Library Board’s efforts to support low-income families and vulnerable groups via affordable internet access, and access to digital devices and eBooks.
I strongly believe in partnerships and collaborations. Hence, I would like to ask MCI to elaborate on its plans and partner stakeholders to drive ground up initiatives that will foster a digitally inclusive and ready society.
Mr Seah Kian Peng: Mr Chairman, COVID-19 has accentuated digital gains, but also digital divides in our communities. How is the Ministry helping low-income households to access digital tools or platforms and remain connected with the wider society?
In my main Budget debate speech, I had spoken on what we need to do to make digital basics available to the lower income – in terms of both hardware and broadband access.
A third and important plank to this effort of digital access must be the digital savviness that is akin to street smartness in real life. The dark corridors in the Digital Empire are as dangerous as those in real life – robberies are as common and lives can be ended as easily. E-commerce scams were the most common among online scams and it has increased significantly during this pandemic.
We need both trust and skepticism to survive as a social being. In our everyday life, we need to trust that the fishmonger at the market does not cheat us when he swears today’s catch is fresh, in the same way we rely on our social capital with our friends to keep their promises, and our business partners when they tell us their judgement on certain matters.
During COVID-19, the importance of trusted and accessible information was felt acutely. But truth online is a scarce commodity and as important as outside matters relating to the pandemic. How will MCI ensure that different groups with diverse needs can access trustworthy information?
How can we help build communities that will forge a collective sense of identity, so that we are all invested in keeping each other informed, each able to access and evaluate the quality of information in the digital world?
Mr Sharael Taha: Mr Chairman, although a lot efforts have been made to improve digital literacy, not all Singaporeans have equal access to digital devices and are digitally literate. This pandemic has widened the gap between the digital haves versus the digital have-nots. Beyond having the basic skills, individuals must also have the devices, networks and purpose to continuously immerse themselves in a digital environment.
How is MCI helping the vulnerable, or low-income families and youths gain the digital skills that they need? Are we doing enough to prevent these less fortunate families from being left behind?
Mr Saktiandi Supaat (Bishan-Toa Payoh): Mr Chairman, the pandemic has made the internet a life tool to obtain full access to opportunities in a number of critical areas, including education, employment and health. Many countries are grappling with a digital divide and Singapore is no exception. What new policies will the Ministry introduce to narrow this divide and reduce the impact on future generations?
To better support our rental households, I cite the example of the ConnectHome initiative for low-income housing in the USA. It offers affordable broadband access, technical training, digital literacy programmes and educational and workfare related content. It is a comprehensive programme to boost digital inclusion that goes beyond allowing residents to apply for devices and subsidies.
To help freelancers and employees working from home, can we explore some form of tax credit for individuals when they file their taxes or a tax break can also be extended to employers who pay for their employees' broadband access?
Before the pandemic, people could utilise broadband facilities in community spaces like libraries and schools. These options are now discouraged. I urge the Ministry to do more to ensure every household has access to quality digital connectivity within their homes.
Ms Tin Pei Ling: Sir, aligned to our Smart Nation drive, our digital transformation efforts are ultimately about enhancing lives of Singaporeans. But we must not inadvertently create a new inequality or widen the existing gap, between those who can access and exploit the new digital technologies, and those who cannot.
Sir, it was reported last year that more than 16,000 seniors benefited from IMDA’s Seniors Go Digital Programme. I am glad that this programme is beneficial and welcomed by seniors who felt dislocated by the accelerated pace of digitalisation. Helping seniors embark and embrace digitalisation mitigates the sense of isolation brought about by a need for safe distancing measures so that our seniors can continue to lead more engaged, informed and fulfilling lives.
It is also heartening to see volunteer groups such as the Youth Corp helping seniors gain digital skills and corporates such as the ST Engineering donating to fund Mobile Access for Seniors and the NEU PC Plus for low-income students and persons with disabilities. Beyond equipping them with the devices, it is also important to help them use the digital tools effectively and wisely.
In this regard, I would like to ask the Ministry for an update on the progress on efforts made over the past months on the various programmes to help Singaporeans keep pace with the country’s digitalisation efforts. In particular, what measures are put in place to bridge the digital gap in ensuring that the vulnerable do not fall through the gaps due to a lack of awareness and resources.
Lastly, I would also like to ask the Government what plans might there be in engaging Singaporeans more when developing digital services to meet their needs? What has been done and will be done to ensure that Government services and messages are delivered in a citizen-centric manner?
So, we need to double down on our efforts to help everyone move ahead in our digitalisation journey. While we push ahead in our digital journey, it is also important that we leave no one behind and that we advance in one direction and as one people.
Sir, the COVID-19 pandemic highlighted the importance of speed and precision of public service messages in a time of crisis and potential confusion. There remains a group of seniors who cannot understand English and so, delivering messages in mother tongue is important.
What are the steps taken by the Government to ensure that those who can only understand mother tongues are able to receive Government messages in a manner they can comprehend?
And for seniors who are illiterate, how does the Government plan to electronically communicate with them? Perhaps through voice notes?
It is of utmost importance that we intervene right now so that we do not allow this segment of Singaporeans become “Digital Outcast” eclipsed by the rapid pace of digitalisation.
The Chairman: Mr Vikram Nair. Not here. Mr Liang Eng Hwa.
Mr Liang Eng Hwa: Sir, the business of keeping Singaporeans informed and engaged has changed drastically. In addition to the traditional offline channels, online and digital channels have seen increasing utilisation in Government communications and the share of use are expected to increase exponentially in the years to come.
At the same time, our lives have also become complex and fast changing, requiring new approaches and more effective ways of reaching out to Singaporeans. We are also to be mindful of the diverse needs among us and, hence, the need to maintain multiple strategies.
Can I seek an update on the transformation of Government communications to groups with different needs?
Mr Sitoh Yih Pin: Mr Chairman, the COVID-19 pandemic has led us to re-think the way we disseminate information, especially in Government communications.
There is a need to ensure that all Singaporeans receive timely and accurate information that is relatable and capable of being understood by everyone with diverse needs.
As we tap on digital means to communicate, how does the Government ensure that it does take into account different needs such as age groups, language barriers or level of digital literacy?
Conversely, it is important that the same digital channels are also accessible to receive valuable ground feedback on Government policies. The two-way channel between the Government and Singaporeans has always been the cornerstone of our policy making and needs to be preserved even as we transform our Government communications.
I, therefore, invite the Minister to share with this House the Ministry’s plans on the transformation of Government communications to reach all groups with diverse needs.
Mr Don Wee: Chairman, last but not least, digital communications is expected to become the dominant mode of engagement amongst people, the Government and the private sector. With this widespread digital utilisation, the Government needs to find a range of methods to engage groups with diverse needs. Would the Minister share what are the Ministry’s plans to ensure that it can reach as many Singaporeans and residents as possible on the various digital platforms?
How will it assist and reach vulnerable segments which may not have the digital skills and know-how, and access to the requisite software and hardware, such as Internet connection, devices and suitable software? In addition to English, does the Government have plans to further augment its digital engagement with Singaporeans in the other three official languages – Malay, Chinese and Tamil – on all its platforms?
The Chairman: Minister Iswaran.
The Minister for Communications and Information (Mr S Iswaran): Thank you, Mr Chairman. Let me start by thanking all the Members who have spoken for their questions, suggestions; some for their wistful reminisces of a bygone era of letter writing and pen pals, and also above all for their active interest in and support for the work of the Ministry of Communications and Information.
Sir, the past year has been marked by discontinuities and disruption in our schools, our workplaces, our homes and our lives. In many ways, it has been a period of profound learning, adjustment and adaptation. Twenty-twenty saw years of digital transition occur in a matter of months.
Digitalisation is here to stay. And digital technologies can be a force for deep and lasting good. Most of us have experienced this first-hand – families staying in touch with loved ones, students and teachers engaged in virtual lessons, employees working from home, businesses and customers transacting online.
But as noted by several Members, a larger digital footprint also means new and growing risks such as cyber attacks, data breaches, the rapid spread of misinformation and cyber bullying.
Against this backdrop, my Ministry strives to build a safe, inclusive and thriving digital future, where our citizens and businesses can fully reap the benefits of digital technologies while keeping the associated risks at bay.
The digital future we envision is underpinned by competitive enterprises that leverage digital technologies to innovate and grow; an inclusive society where every member can realise the benefits of globalisation and digitalisation; safe and secure digital spaces protected from malicious actors and online harms; robust digital infrastructure with fit-for-purpose regulations; and close collaboration with our community and enterprise partners.
As we respond to the various issues raised by Members, my colleagues Senior Minister of State Sim Ann and Senior Minister of State Janil Puthucheary and I will elaborate on the work of the Ministry of Communications and Information to realise this vision.
Let me start with how we are supporting businesses to transform digitally.
Impelled by COVID-19, many traditional brick-and-mortar businesses have pivoted towards hybrid online-offline models to engage and transact with their consumers.
Scent by SIX, a fragrance retailer at Bugis, took up an e-commerce solution under the SMEs Go Digital programme during the circuit breaker. Its digital marketing efforts were so effective that revenues have increased by 25%, of which 60% were online. The founder, Jason, is now exploring AR solutions that integrate social media with in-store shopping to create an omni-channel experience. Scent by SIX’s experience is not unique.
Mr Liang Eng Hwa and Mr Don Wee asked about the progress of schemes to help enterprises transform digitally.
Today, more than 63,000 SMEs have adopted digital solutions with the support of the SMEs Go Digital programme which was launched in 2017. About 40,000 of them, in fact, signed up just last year and 2020 alone. At least 2,000 enterprises have gained access to overseas markets through e-commerce platforms under the Grow Digital scheme. Over 1,000 enterprises have engaged the SME Digital Tech Hub for advice and over 35,000 enterprises are now registered for e-invoicing, compared to 1,000 a year ago.
So, the numbers are growing and we have to build on this progress so that more businesses and the workers they employ, can reap the benefits.
Ms Tin Pei Ling, Ms Mariam Jaafar, Mr Eric Chua and Mr Sitoh Yih Pin asked how the Government could aid businesses to to digitally transform and unlock economic value.
MCI and IMDA will ramp up efforts to both broaden and deepen the digital reach among our SMEs. We will support enterprises at every stage of growth, from start-up to scale up, to seize opportunities and realise the potential of emerging technologies and data.
For example, many SME leaders need help to devise a digitalisation plan to meet their needs. Therefore, IMDA will launch the Chief Technology Officer (CTO)-as-a-Service initiative later this year.
The CTO-as-a-Service initiative will include a one-stop self-help web app for SMEs to assess their digital needs and gaps. SMEs can then access customised recommendations on digital solutions based on the company profile and information on Government support.
SMEs that need more in-depth advice can tap on a shared pool of CTO-equivalents or Digital Consultants with expertise in areas such as data analytics, cyber security, and artificial intelligence. They will receive both digital consultancy and project management services to not only identify needs and solutions, but also manage project implementation. So, when Ms Mariam Jaafar talks about working with SMEs throughout the digitalisation journey, these are the kinds of measures we believe will help facilitate that.
I wanted to assure Mr Sharael Taha that all registered SMEs, including home-based businesses that are sole proprietorships, will be able to access these digital resources as well.
[Deputy Speaker (Mr Christopher de Souza) in the Chair]
Beyond this broad-based approach, we also want to raise the peaks of our SMEs’ performance through a more holistic digital transformation of enterprises who are ready for that.
In this regard, the questions raised by Ms Tin Pei Ling on grooming the next wave of companies who can be digital leaders, and Mr Alex Yam on strengthening our competitive advantage globally are most pertinent.
The new Digital Leaders Programme (DLP) that we have launched aims to equip firms with the capabilities and talent to accelerate their digital transformation journey. This programme will provide up to 70% support on qualifying costs to help companies build a core digital team to develop and execute their digitalisation strategy. It will also connect companies with tech partners to develop new digital products and services, and better position them to compete internationally.
The DLP will support up to 80 companies for a start, beginning with those more advanced in their digital journeys, with management teams that are committed to drive digital transformation for sustained growth. The DLP will be managed by IMDA, in partnership with Enterprise Singapore and other economic agencies.
To Ms Tin's question about support for local companies. IMDA's Accreditation@SGD programme recognises promising and innovative local tech companies, and their products are considered first by Government agencies for ICT procurement. In 2019, IMDA and Cyber Security Agency of Singapore (CSA) launched a new SecureTech track under the Accreditation programme to help local cybersecurity programmes gain greater access to Government projects. MCI will continue to study what more can be done to raise the competitiveness of local companies, including the several suggestions offered by Ms Tin.
As more businesses go digital, and more transactions go online, the volume and value of data will grow in tandem. As noted by Ms Tin and Mr Edward Chia, data can yield valuable insights that improve business efficiencies and enhance products and services for consumers.
However, we also recognise the counterpoint. As more data is collected, the risk of data breaches also increases. If data is not used responsibly, trust can be eroded, even undermined. We therefore must strike a judicious balance. On the one hand, we must accord due protection to personal data and privacy. On the other, there is scope for businesses to use data responsibly for growth and innovation.
To help businesses better use of data and better serve their customers, IMDA will launch the Better Data-Driven Business programme, or BDDB. This programme will provide businesses, particularly SMEs, with free tools and guidance to use their data responsibly to drive business growth. The programme will also provide a free business intelligence tool that can convert raw data into visual dashboards that can aid business outcomes, such as, better sales and operational efficiency. It will also enable more advanced data uses, such as for R&D and innovation, through curated resources, like case studies and videos.
We are also strengthening the accountability of businesses for the personal data they handle, a question raised by Mr Christopher de Souza. The recently amended Personal Data Protection Act, has rules and a penalty framework to incentivise organisations to take proactive steps to minimise and manage data breaches. But, going beyond that, the Personal Data Protection Commission Singapore, or PDPC, has issued guidelines that organisations can adopt to develop accountable governance practices.
The Data Protection Trust Mark also enables businesses to signal, and for consumers to discern, good data practices. Ultimately, we need to nurture a culture of good data governance – use and practice – and that has to come from not just regulations or penalties but also from education and industry efforts to share best practices.
Beyond scaling up our efforts to help companies go digital, we must continue to search for technology solutions that can power the next bound of our economic growth and strengthen our position as hub for digital innovation. 5G is key to this as it will be the backbone of our digital infrastructure and Singapore will have at least 50% 5G standalone outdoor coverage by the end of next year, and nationwide coverage by the end of 2025.
Ms Jessica Tan asked how we can ensure that consumers and businesses will benefit from 5G deployment. The key is to build an ecosystem that supports the innovation and test-bedding of novel solutions. It is not just about providing the infrastructure, but it is in catalysing the collaboration between solution providers, service providers and end-users to come up with validated used cases. IMDA will facilitate such test-bedding through facilities such as PIXEL, the 5G Living Lab and initiatives such as the Open Innovation Platform.
Under the Research, Innovation and Enterprise 2025 plan, or RIE2025. MCI will work with partner agencies to drive the co-creation and commercialisation of intellectual property, and enable capability transfer between research institutes and enterprises.
Translation will be a primary focus under RIE2025, and MCI will work with partner agencies to drive the co-creation and commercialisation of intellectual property, whilst enabling capability transfer between our research institutes and enterprises, to have that virtuous interaction between our public sector R&D effort with private sector value creation. This is how we are building up our local ecosystem for digital innovation, one of the points raised by Mr de Souza.
We want to go further in driving ground-up digital innovation. IMDA's Open Innovation Platform, or OIP, was launched in 2018 to crowdsource and match the demand from business challenges to a supply of innovative solutions. It has grown into a vibrant eco-system with over 10,000 registered users. Over 190 challenges have been launched, and over 60 solutions have been successfully developed.
We will invest $50 million over the next five years to enhance the capabilities of this platform. This will help more enterprises access innovative solutions, and accelerate the deployment of digital innovation at scale. IMDA will also co-fund the prototyping of matched challenges to help innovative tech companies expand their market base.
Mr Chairman, even as we pursue these exciting opportunities, we must pay heed to the very real concerns of mature workers and seniors, and also our youth and fresh graduates, over the accelerated pace of digitalisation. They worry if they will have a place in this digital future, especially if they do not have backgrounds in tech, or an inclination for engineering and software development.
Mr Sharael Taha raised a similar point asking how we can further support mature workers or those who have no ICT background enter the tech sector. Sir, we are intensifying our efforts to create good jobs for Singaporeans and equip our workforce with digital skills. Under the SGUnited Jobs and Skills programmes, there were more than 18,000 available opportunities in the Information and Communications sector as at the end of last year; of that, more than 10,000 were for jobs openings. So, going beyond training and apprenticeships.
Since 2016, over 8,000 Singaporeans from fresh graduates to mid-career professionals, have been placed in good ICT jobs through the TechSkills Accelerator (TeSA) programme.
I met Nurul Baizura, a part-time undergraduate, who was selected to participate in Google's Skills Ignition SG programme. She previously worked at a data storage company, handing network infrastructure and patching. Today, she is learning skills in an entirely new area – cloud technology – and she is passionate about her role as cloud engineer.
Last year, we also launched the TeSA Mid-Career Advance programme to train and transition workers in their 40s and 50s into tech jobs. Ganapathi, whom I met recently, is a mid-career project manager who was previously from the education sector. Though he lacked the technical expertise, Gana joined the programme with NCS – one of our tech company partners – in 2020, and is well on his way to becoming an applications consultant.
We will continue to expand our TeSA programmes, to develop more local talent in areas such as digital marketing, as well as for more tech-intensive roles in product and software development. These programmes will provide a wide spectrum of Singaporeans like Nurul and Gana, with more opportunities to develop their careers in such roles across the economy.
Several Members have emphasised the importance of attracting talent to this talent-starved sector. This is a global challenge. As we invest in the development of our local pipeline of talent, nurturing the tech leaders for the future, we also have to ensure that we are able to attract quality talent from around the world to come in and have a judicious complement of them to support our overall effort. And this is how we would ensure that we sustain our position as a digital innovation hub.
In that regard, it is not just MCI but across the economic agencies and beyond, we are undertaking a whole-of-Government effort to attract Singaporean talent that is based overseas and other talent so that they can come in, working with our local companies, our large and mid-sized players in order to contribute to the evolution of the digital eco-system in Singapore.
Ms Jessica Tan and Ms Tin Pei Ling have emphasised that employers must leverage the talent pool of women in STEM. I fully agree. MCI aims to grow the ICT talent pipeline and this includes attracting more women to join the sector.
In collaboration with community and industry partners, IMDA launched the SG Women in Tech initiative in 2019 to encourage more women to explore careers in tech. There has been good momentum with the movement reaching more than 117,000 through activities and events such as SG100 Women in Tech.
The signs are promising. In 2017, 28% of the intake to Information Technology courses in our local Universities were female. This figure increased to 35% in 2019. So, the momentum is there. I think the message is getting through and certainly we need to enlist the help of some of our women tech leaders including the likes of Ms Jessica Tan and Ms Janet Ang and many others in this House and without, to get this message out and encourage more women to consider a career in tech.
More broadly, we want all Singaporeans to be able to participate meaningfully and safely in online engagements. That is why we established the SG Digital Office in June last year, and launched the Hawkers and Seniors Go Digital programmes. So far, about 10,000 hawkers – of a base of about, I think 18,000 or so – and stallholders have adopted e-payment solutions. The volume and value of transactions has grown four-fold, from June 2020 to today.
Miss Cheng Li Hui and Ms Sylvia Lim enquired about the impact of the Seniors Go Digital programme. The SG Digital Office has trained about 69,000 seniors in digital skills as well as measures to safeguard themselves against risks on the Internet. But, I want to emphasise and in response to Ms Sylvia Lim's point, it is not just about numbers. Numbers are important because we do want scale. But, we more importantly, want skill. We want to imbue our seniors with the confidence and the comfort to navigate technology and use it to derive benefits that will enhance their lives.
As the Member and others would appreciate, this is not an easy task, but one that we are fully committed to and it is a journey with rich rewards, but we have to make the effort. We would welcome any suggestions that the Member or others may have, to further strengthen the message and its impact on our community of seniors.
Senior Minister of State, Sim Ann will elaborate further on the work done by ESG, IMDA and other Government agencies, with respect to the work we are doing in the heartlands.
Our seniors, hawkers and heartland shops are excellent role models. They demonstrate that young or old, big or small, whatever our background, with the right mindset and can-do spirit, we can all make the digital transition.
Our libraries play a critical role in nurturing that spirit of exploration and learning among all Singaporeans. Ms Hany Soh and Mr Eric Chua asked how our libraries are staying relevant in a world that is digital. For some time now, but especially in the past year, NLB has expanded its digital resources and collections, introduced digital storytelling for children and conducted online programmes for all ages, including seniors.
NLB produced learning packages on subjects like pandemics, provided home access to digital newspapers and conducted a series of webinars on topics ranging from cybersecurity to health and wellness. As a result, since April last year, there has been a 145% increase in e-database usage and a 32% increase in digital loans.
For the longer term, NLB will continue to explore new ways to provide reading and lifelong learning opportunities for all Singaporeans, and nurture an informed citizenry.
Informed by public feedback and its own experience, NLB has developed the Libraries and Archives Blueprint 2021-2025 to reimagine the service models of libraries and archives of the future. What we have today is a precious resource that has adapted and innovated in response to consumer needs. And now, we are thinking ahead to the next phase and how our libraries can continue to evolve with the needs and the times. Senior Minister of State Sim Ann will provide more details.
Like NLB, as more engagement shift to the digital space, individuals and businesses will be exposed to more risks and online harms. So, it is incumbent that our digital spaces are kept safe and secure, with members of online communities protected from malicious actors and other harms.
Mr Christopher de Souza, Ms Jessica Tan and Mr Alex Yam have asked how we are safeguarding our critical systems against sophisticated threats and disruptions to operations.
[Mr Speaker in the Chair]
The security of our digital systems is critical because they are the very foundation of our digital economy. Hence, we will do our utmost to lay a strong digital foundation – a communications infrastructure that is secure and resilient and legislation that is robust and fit-for-purpose. We will also continue to safeguard our digital space to protect our people from the harms inflicted by malicious threat actors.
Members would recall the SolarWinds cyberattack uncovered in December last year, which affected about 18,000 organisations, including US government agencies and Fortune 500 companies.
Such incidents serve to remind us that cyber threats are real, trans-border and constantly evolving. To derive the benefits of digitalisation, we must be ever vigilant against cyber risks and we need continuous and sustained efforts to strength our cyber security posture. Senior Minister of State Janil will elaborate further.
To build trust in online spaces, we must also ensure safeguards against harmful online content that may harm individuals and divide society.
Our regulation and public education efforts have helped Singaporeans deal with potential dangers online, such as misinformation. But the threat is constantly changing. MCI and MHA are therefore studying how to enhance our regulations to deal with serious online harms and their real-world effects on society. We will share our findings and recommendations in due course.
Ultimately, the first line of defence in our fight against misinformation is a well-informed citizenry who receive accurate communications from reliable sources in a timely manner.
Mr Seah Kian Peng, Mr Sitoh Yih Pin, Mr Liang Eng Hwa and Mr Don Wee have asked how the Ministry is ensuring that groups with different needs can access reliable information.
This has been our foremost communications challenge in battling COVID-19. Our focus was to broaden and deepen the reach of Government communications by leveraging both traditional and newer digital platforms. This was to ensure that all segments of our population were informed of key developments of the pandemic, why certain measures were necessary and how they could play their part to protect the health and safety of all Singaporeans.
The mainstream media played an important role in this national effort. In addition, Gov.sg was expanded to 10 platforms, including Telegram, Instagram and TikTok, and we now have more than 2.5 million subscribers across these platforms. The Gov.sg WhatsApp channel grew exponentially from 7,000 subscribers in January 2020 to 1.2 million today. We also worked with the People's Association and Silver Generation Office for face-to-face outreach to those who may not have access to or use digital media.
These communications efforts have been well received. Polls conducted by REACH indicate that more than eight in 10 are satisfied with the information provided by the Government on COVID-19.
For the next phase of our fight against the pandemic, we have launched the VacciNationSG campaign to raise awareness of the vaccination programme, address misconceptions, debunk misinformation and mobilise action. Senior Minister of State Sim Ann will elaborate more on our efforts, including the use of multiple languages and channels to make information accessible to all segments of our society.
Partnership – with industry, the community and fellow Singaporeans – has been the anchor of our efforts to overcome the challenges posed by the pandemic but also to emerge stronger.
Industry partners have stepped up with initiatives to re-structure our economy and create new opportunities. Under the TechSkills Accelerator (TeSA) initiative, companies such as Google, Microsoft, IBM, Singtel, Sea and Grab have committed to create more than 5,000 jobs and skills opportunities in technology and ICT.
Our community partners and citizens also organised themselves to support fellow Singaporeans in need. Engineering Good, a non-profit organisation, collected laptops from the community to help less privileged students access home-based learning resources during the circuit breaker period.
As we venture into the digital future, such partnerships with our stakeholders will be even more important to ensure that new and more complex challenges do not deter us from fully seizing digital opportunities.
Dr Shahira Abdullah and Mr Shawn Huang asked how we can partner with stakeholders to drive ground-up initiatives to foster a digitally inclusive society. Such sentiments were also expressed during the Emerging Stronger Conversations, where the impact of digitalisation and how we can harness technology for better social outcomes was one of the most discussed topics.
Last month, to that end, President Halimah Yaacob launched the Digital for Life movement in conjunction with the President's Challenge 2021. Through this national movement, we want to encourage and support ground-up efforts to co-create solutions that enable all Singaporeans to benefit from digital technology.
The movement is part of a wider national effort to bring together the people, private and public sectors to foster digital skills, digital wellness and digital access among all Singaporeans. We have also established the Digital for Life Fund, which will support projects contributing to the goals of the Digital for Life movement. The target is to grow the fund to $10 million over the next three years. All cash donations will be matched, dollar for dollar, by the Government.
We invite all who wish to make a difference to the digital growth and wellness of fellow Singaporeans to join us in this journey. Senior Minister of State Sim Ann will elaborate further.
Mr Chairman, I would like to conclude by emphasising the Government's resolute commitment to build a safe, inclusive and thriving digital future for all Singaporeans. My Ministry will lay strong foundations for that digital future by investing in infrastructure, driving research and digital innovation, equipping businesses with digital tools and supporting Singaporeans to learn, upskill and stay informed.
As we work in partnership with our community and business stakeholders, I have every confidence that we are well placed to build a shared digital future with a place for every Singaporean.
The Senior Minister of State for Communications and Information (Dr Janil Puthucheary): Mr Chairman, I thank the various Members for their cuts and questions and I hope to address several of them in my response, especially those from Ms Jessica Tan, Mr Alex Yam, Mr Seah Kian Peng, Mr Xie Yao Quan and Mr Christopher de Souza.
The digital space has had a deep impact on our daily lives and this transformative effect will continue for some time. For many Singaporeans, digitalisation carries the promise of more convenience, more efficiency and more options.
As we do more online, we face an increased risk of cyberattacks, online scams and data breaches. We need safe and secure digital spaces. We need the online environment to be an enabler so that our people can benefit from the opportunities of this digital age.
Today, I will focus on how we develop online safety and security – the strong foundations of our plans for digitalisation.
Our strategies have to cover a broad range from infrastructure development, regulations and partnerships. We need to address a wide variety of issues so that our companies and our people can trust the digital systems that are so central to our lives.
Beyond assurance, we want people to step up, to be empowered, to take charge of their online safety and to embrace the digital age with confidence.
Strong foundations depend on a robust digital infrastructure. Our past investments in this infrastructure have recently enabled workers to switch to telecommuting and students to attend online lessons with relative ease during the pandemic.
Looking ahead, we will need world-class, secure and resilient 5G networks. It was thus a policy priority for our nationwide 5G networks to be standalone – new standalone networks, 5G all the way through, from end to end. 5G standalone networks unlock the full suite of capabilities, including network slicing and ultra-reliable low latency communications, necessary for applications such as cloud gaming and smart factories.
5G deployment has started and by the end of next year, we will have at least 50% standalone outdoor coverage for 5G. Nationwide 5G standalone coverage will arrive by the end of 2025.
However, robust digital infrastructure alone cannot guarantee safe and secure spaces. Other keys to a strong foundation are a robust regulatory regime and an approach to remain relevant and fit-for-purpose amidst the evolving technological landscape.
Data is a critical resource used to inform business decisions and also power emerging technologies such as artificial intelligence.
Personal data requires strong safeguards and accountability but there is a balance we need to strike. You overcorrect for business innovation and you undermine consumer protection, privacy and trust. On the other hand, pursuing consumer interests narrowly hampers, potentially, business development. The public may ultimately suffer from poorer and more costly services. Our strong foundations therefore also need us to be agile and calibrated.
We recently amended the Personal Data Protection Act (PDPA). For example, you may subscribe, to the mailing list of an online shop and as a result, you can receive customised recommendations based on your browsing history or based on your prior transactions. This is a benefit to you as a customer, as the consumer, from having shared your data.
Under the amended PDPA, if there is a data breach which may cause significant harm to affected individuals, you are to be notified directly by the shop so you can take timely, proactive measures to protect your data, such as by changing your passwords. If you choose to opt out of the mailing list, the shop is required to remove your details from the list and stop sending you recommendations within a reasonable period. So, businesses, as a result of the amendment, are held to a higher standard with more transparent and accountable practices.
Like data, electronic transactions are also central to the global economy. To support wider digitalisation, the Parliament passed the amendment to the Electronic Transactions Act this year to adopt the Model Law on Electronic Transferable Records from the United Nations Commission on International Trade Law (UNCITRAL). The shipping, logistics and finance sectors now stand to benefit from faster and more secure electronic transactions compared to paper-based transactions. We expect to see benefits in terms of efficiency, productivity and, hopefully, cost savings as well.
One concern arising from our digital push is the rise in online scams. In Singapore the most common type of scams relates to e-commerce and these increased by almost 20% from 2019. Overall, victims to scams lost more than $200 million last year.
We take this matter very seriously – it is something that people are anxious about, it erodes trust in their transactions and their activities online – and we are working across the Government to tackle these scams.
For example, we require telcos to attach the \"+\" symbol for all incoming overseas calls. IMDA also requires telcos to enhance capabilities to block calls from commonly spoofed numbers. As a result, 28 million suspected scam calls were blocked in the fourth quarter of last year.
However, the space is dynamic, there is an evolving behaviour of scammers and people who try to do malice to us, so existing solutions to block scam calls from overseas will never be foolproof. Today, no telco can verify with absolute certainty that a given incoming call is fraudulent.
So, IMDA is working with the telcos to build new analytic capabilities within their networks to better identify and block spoofed calls with numbers that appear local, without blocking legitimate calls. These measures fit in with what MHA is doing in terms of their broader approach to mitigate scams. We will continue to work closely with MHA through the Inter-Ministry Committee on Scams.
Cybersecurity threats are also growing in both number and sophistication. Members have just heard about the recent SolarWinds breach. This cyberattack compromised a network management software used extensively by major companies and governments worldwide. Notably, the software that was compromised was trusted and had privileged access to internal networks. It was a very sophisticated attack that went undetected for months.
Closer to home, Singtel reported that some files were taken as a result of a breach to FTA, a third-party file sharing system that Singtel uses.
Singaporeans are concerned about whether our systems are safe; so are we. And sensitive information needs to be sufficiently protected. With more activities taking place online, it is important that people trust the digital systems we use to store, collect and transfer our information. The reality is that we will not be able to prevent every cyberattack – malicious actors only need to exploit one vulnerability to compromise our systems, while defenders must safeguard systems under their charge against all threats, all the time. Consistent and deliberate efforts to strengthen our cybersecurity are thus critical.
Many essential services like banking and healthcare are powered by information and communications technology. These systems are our Critical Information Infrastructure or CIIs. Today, all CII owners must maintain a mandatory level of cybersecurity as part of the Cybersecurity Act. However, we also recognise that most organisations, including CII owners, engage vendors to support their operations. Therefore, we also need to manage cybersecurity risks across the supply chain. Doing so requires CII owners to have a better understanding of their vendors to identify systemic risks and improve the level of cyber hygiene with the vendors.
To this end, we are developing a CII Supply Chain Programme – a partnership involving all stakeholders – Cyber Security Agency of Singapore (CSA), CII owners, and their vendors. The programme will provide recommended processes and sound practices for all stakeholders to manage cybersecurity risks in the supply chain. The discussions that we will have with the stakeholders as a result of this programme will also help the Government improve our policies around supply chain security. In the longer term, our CII sectors and the companies there will also need to adopt a zero-trust cybersecurity posture. This shift in mindset is necessary to defend against supply chain attacks by highly sophisticated threat actors, such as those behind the SolarWinds breach.
In concrete terms, this means that CII owners should not trust digital activity in their networks without verification. They should also authenticate continuously, detect anomalies in a timely manner, and validate transactions across network segments. This work will continue and will become increasingly complex in the future. Cybersecurity therefore has to be a collective effort and a core part of our lives in this digital age – integrated into the products we use and the way we behave online.
As more enterprises go digital, our exposure to cyber threats grows in parallel. Cyberattacks on companies have a far reaching impact on our wider economy. So, as part of the Safer Cyberspace Masterplan, CSA will launch the SG Cyber Safe Programme to support companies in strengthening their cybersecurity. It comprises two parts.
First, we will provide informational resources and educational material for key roles including C-suite executives, cybersecurity teams and frontline employees, based on their specific roles and knowledge needs. We need to shift attitudes and raise cybersecurity awareness through in-house training.
Secondly, we will roll out a voluntary SG Cyber Safe Trustmark to provide a mark of distinction for companies that have invested appropriately and significantly in cybersecurity. This means that if you are a consumer, a business looking for an HR processing service for example, and care about the cybersecurity level of the service provider, you may look for this Trustmark for added assurance that this service provider takes cybersecurity seriously. CSA will engage stakeholders regarding the specifics of this Trustmark from April this year.
Our cybersecurity talent base is a key enabler of these efforts and we are working closely with industry partners and Government agencies to nurture and grow our cybersecurity workforce.
First, to meet near-term demand, we facilitate the training and upskilling of cybersecurity professionals, as well as fresh and mid-career non-cybersecurity professionals for cybersecurity jobs, through programmes such as IMDA’s Tech Skills Accelerator.
Second, to strengthen our talent pipeline for the longer term, we encourage youths to pursue a career in the field through cyber outreach initiatives like SG Cyber Talent. We have engaged over 7,000 participants to-date.
And thirdly, to groom world-class cybersecurity leaders, we launched the SG Cyber Leaders programme to create a community for current and developing cyber leaders to exchange ideas, and learn about global best practices.
All of us need to play our part to create a safer and more secure cyberspace. There are things that we can do as individuals. We should enable two-factor authentication, update our software in a timely manner, choose a passphrase rather than a password, and stay vigilant to spot the signs of phishing. But there are also things that we do as a country. Our effort extends globally. Singapore participates actively in international discussions to develop and implement norms in line with our interests.
As cyber threats are global and transborder, we are working closely with international partners across the UN and ASEAN to develop and implement norms for responsible state behaviour. For instance, we are producing an implementation checklist with specific actions that countries can take to implement cyber norms. This effort contributes to a rules-based multilateral order in cyberspace, and gives all states, big or small, confidence, predictability and stability, essential for economic progress, job creation and technology adoption.
In terms of AI governance, Singapore takes an open and collaborative approach to govern the use of AI, recognising that we need to safeguard consumers’ interest and facilitate innovation. We launched the second edition of the Model AI Governance Framework in 2020, which incorporates feedback and examples from international and local companies across a diverse set of sectors, in response to the first edition of the Framework. It translates key ethical AI principles such as human centricity into practical measures, in line with our National AI Strategy.
Ultimately, we lay strong foundations so that our people can look ahead, and reap the full benefits of the digital economy. We will remain open and integrated with the global economy to enable our companies to maximise opportunities beyond our shores.
While our existing trade agreements meet the needs of traditional trade in goods and services, we recognise the need for new norms and rules to support cross-border digital transactions like e-invoicing, data flows, digital identities. This is why Singapore pioneered Digital Economy Agreements, or DEAs, building on our existing networks and initiatives. These DEAs facilitate seamless end-to-end digital trade, enable trusted data flows and build trust in digital systems.
Beyond these DEAs, businesses can look forward to further support for transferring data to and from overseas seamlessly and securely. Regionally, Singapore led the development of ASEAN Model Contractual Clauses, terms and conditions that may be included in legally binding contracts for the transfer of personal data across borders. We also led the development of an ASEAN Data Management Framework – a guide for businesses to implement a data management system with appropriate data protection safeguards. With these ready-to-use and flexible templates to transfer personal data, businesses operating in ASEAN markets stand to benefit from shorter contract negotiations on data flows.
In conclusion, Mr Chairman, our success in digitalisation has also exposed new vulnerabilities. These will only grow as technologies evolve and become more complex. Trust in our digital systems is key to the success of our digital economy efforts. And without the trust to transact, or to innovate, our best efforts to develop our digital ecosystem and reap the dividends, create opportunities, will fall short.
Strong foundations such as I have described will fortify our defences against online threats, and support this trust that we need to grow. But they are not sufficient. We need our companies and people to be aware of the risks, vigilant of the manifestations of these risks, and make informed choices to protect our safety. We can and must make the online space more secure and more trusted and thus create more opportunities for all of us.
The Senior Minister of State for Communications and Information (Ms Sim Ann): Chairman, the past year has been challenging, to say the least, and we have all come to value the importance of staying connected. Digitalisation has been critical in enabling us to do so, even as we adopt safe distancing measures. We are transforming digitally as a society, but we need to ensure that the transformation is inclusive. I will elaborate on four key strategies to achieve this.
First, we know not all Singaporeans are progressing at the same pace in the digital journey. Regardless of your starting point, the Government and key stakeholders will support you with the necessary resources. Second, we will forge strong partnerships with stakeholders. Third, we will continue to improve our last-mile delivery infrastructure. Fourth, we will strengthen our communication efforts, making trusted information accessible to all.
Let me address how we will approach inclusive digitalisation, starting with small businesses, as asked by Ms Tin Pei Ling, Mr Sharael Taha and Mr Cheng Hsing Yao.
We stepped up efforts to help small companies, including mom-and-pop HDB shops, to adopt simple digital solutions through the Heartlands Go Digital initiative. Minister of State Low Yen Ling and I co-chair the Heartland Digitalisation and Revitalisation Committee, and she has earlier spoken on how the Committee is helping heartland enterprises to keep pace with digitalisation, taking into account their unique context.
Under the Hawkers Go Digital initiative, we have been acting on stallholders’ feedback to make improvements. For example, IMDA and the SG Digital Office are working with NETS to enhance the NETSBiz mobile app, with features such as a bigger font size, the use of colour and a distinct audio alert, to make it easier for busy stallholders to track their payment transactions.
Mr Eric Chua, Mr Saktiandi Supaat, Mr Seah Kian Peng and Dr Shahira Abdullah asked about the efforts made to ensure that low-income families do not lag behind in the digital future.
Singapore is a highly connected society, where 98% of all households have access to broadband and own Internet-enabled devices such as computers or smartphones. We recognise low-income households and vulnerable groups may require more help.
A central thrust of MCI’s work is helping them access digital tools and remain connected with the larger society. Last year, IMDA’s Home Access and NEU PC Plus programmes, which subsidise digital connectivity for low-income households, benefited 20,000 families. The two programmes were enhanced in 2020, providing faster broadband speeds and more bundled device options. This includes a second subsidised laptop for larger families with school-going children during COVID-19. We have streamlined the application process for households supported by ComCare, to make it easier for them to get onto the programmes.
IMDA is working to automatically include recipients of HDB’s Public Rental Scheme for the Home Access programme in the coming months. MCI also works closely with MOE to address digital access and literacy needs of students.
I am glad to update Ms Sylvia Lim that since the Mobile Access for Low-Income Seniors scheme was launched last year, more than 6,400 seniors have benefited from the subsidised smartphones and mobile data plans.
Our second strategy is building strong partnerships. There is a growing sense that many in the community would like to contribute and support fellow Singaporeans. I chaired an Emerging Stronger Conversation on Digital Readiness in November last year. The 60 participants had a robust discussion on digital adoption challenges faced by vulnerable groups.
Many asked what we, as a society, can do to help bridge the digital gap. It was this and other similar calls for collective action that led us to launch the Digital for Life movement last month, which Minister Iswaran mentioned. The movement will support community activities that promote digital technology and inclusion, as well as digital literacy and wellness. It will be a platform where like-minded individuals from corporates, community and Government agencies, can utilise their skills, experience and know-how in helping those who need a little extra assistance, and in building inclusive, safe and secure digital spaces. The Government will empower and support them to catalyse meaningful changes.
One project I feel strongly about is protecting women and youth from online harms. As a Member of Parliament, I have encountered calls for help from distressed women and their loved ones, because their intimate pictures have found their way online without their consent. I have also heard disturbing stories about how our youths are being harassed and received unsolicited lewd pictures, with some coming to view this as “normal”. Ms Nadia Ahmad Samdin has raised the same concern about protecting our youths, especially young girls.
I met some community partners last week to discuss how we can tackle such online harms and mitigate the real-world damage they cause. These partners have shown strong interest to create more impactful public education and resource support for potential victims, and in offering policy ideas to shape a safer cyberspace for women and girls and, indeed, for men and boys, too.
These can complement other measures, such as the Better Internet Campaign by the Media Literacy Council, MCCY’s work on promoting youth cyberwellness, and MOE’s work in the schools. With the Digital for Life Movement, I hope that the community can be empowered to hold conversations and collaborate even on thorny and complex social issues.
To help Singaporeans pick up digital skills, our much-loved libraries have been transforming themselves into digital learning hubs. As mentioned by Minister, NLB will be embarking on the Libraries and Archives Blueprint 2025. Going forward, our libraries will feature digital services that enhance experiential learning. I thank Miss Cheng Li Hui for her interest and encouragement in the initiatives of our libraries. The pilot at the Geylang East Public Library to help seniors navigate online public services will be evaluated and a further rollout will be decided upon once we see the results.
The revamped Choa Chu Kang Public Library, set to reopen later this year, will feature digital services which encourage appreciation of natural landscapes and biodiversity. Augmented Reality elements will allow library users to interact with selected books through their mobile devices, making content come alive, almost literally.
Last week, I visited the Tampines Regional Library and chatted with seniors who learnt how to use the libraries' services, such as e-newspapers and the NLB mobile app. They appreciated the human touch of having our Digital Ambassadors walk them through the steps, and having someone to turn to whenever they need a refresher. In the library's makerspace, library users of various age groups were enjoying the use of technology, such as robotics and 3D printing. There is truly something for everyone in NLB's growing suite of digital offerings.
The role of librarians, as alluded to by Mr Eric Chua, will evolve in the digital future. Librarians will need to put together inter-disciplinary knowledge, taking into account societal trends, and how people learn and acquire information. NLB cannot do this alone and will collaborate with volunteers and partners with diverse interests.
We agree with Mr Don Wee and Ms Hany Soh that every Singaporean should have access to NLB resources. This is why NLB brings library books to reading corners at partner spaces, such as community centres and Family Service Centres.
For many years, NLB has been supporting the Singapore Prison Service. Last year, NLB donated more than 7,000 books to cater to inmates’ varying reading needs. Inmates also have access to 400 e-books. NLB will continue to develop ways to support under-reached communities.
Mr Liang Eng Hwa, Mr Sitoh Yih Pin and Mr Cheng Hsing Yao asked about MCI’s plans to transform the postal sector. This is addressed by our third strategy – which is to continue investing in digital infrastructure, so as to make the benefits of the digital economy more accessible to Singaporeans.
E-commerce has become an important part of our lives. Last year, I shared that we would be rolling out a nationwide parcel locker network, to give convenience to Singaporeans and enhance productivity for merchants and logistics service providers. IMDA and its subsidiary Pick have been trialling these parcel lockers. The feedback received from close to 10,000 residents has been overwhelmingly positive. Ninety-six percent agreed that the lockers will bring them convenience and they will use the locker stations in their neighbourhoods.
Mr Ng Kum Yin, a 71-year-old retiree, looks forward to the locker stations. Mr Ng and his wife shop online for consumer electronics and health supplements. He is concerned by news of missing parcels left outside homes, so he is keen to try out the parcel lockers whenever they are ready. Mr Edward Chia would be pleased to know that the parcel locker network is expected to reduce distance travelled for delivery by 44% daily, and this will go a long way towards reducing carbon emissions.
Pick is on track to launch the first batch of up to 200 locker stations by April. We are targeting nationwide deployment by the end of 2021.
To address the growth in e-commerce and benefit both consumers and industry, we are reviewing the Postal Services Act this year. More details will be shared at a later date.
On postal delivery, since December last year, SingPost has been trialling PostPal, a smart letterbox system, at Clementi, serving about 200 households in total. Residents like the convenience of using the app to find out if there is any mail for them to retrieve. SingPost has seen an increase in productivity of 75% for their postmen. Ninety-four percent of the mail can go through the auto-sorting feature in the smart letter box, which means greater accuracy in mail delivery.
These innovations are part and parcel of our collective effort to seek efficiency improvements and better value for consumers and residents, while making good use of technology and digitalisation.
The fourth strategy is to strengthen our Government communication efforts, making information accessible to all citizens with diverse backgrounds and language needs. Despite COVID-19, REACH connected with more than 59,000 Singaporeans last year. To engage safely, REACH opened up new channels. These include online Listening Points and online dialogues, such as the Emerging Stronger Conversations. During the Circuit Breaker, the REACH WhatsApp chat group discussions were maintained 24/7.
We have established diverse platforms to reach out to our audiences. For example, gov.sg has now gone into the heartlands. Some 14,000 Digital Display Panels are found within HDB lifts and at lift landings, making important Government information accessible to Singaporeans at their doorstep. We are pushing out content in the four official languages wherever possible, across platforms like free-to-air television, radio, newspapers and WhatsApp messages.
On Ms Tin Pei Ling’s question, to reach out to members of the Chinese community who are seniors and who communicate primarily in dialects, key Government messages are weaved into programmes that run on Mediacorp’s dialect belt. We have also worked with Mediacorp to introduce sign language interpretation for key national events, such as the Prime Minister’s COVID-19 addresses. This is on top of the longstanding practice of subtitling or closed captioning, wherever possible, for Government communications on free-to-air television and Government’s social media channels.
Accurate and contextualised translation is important for effective Government communications. Last year, MCI rolled out two new translation initiatives. The first initiative is Citizen Translators, where we reach out to volunteers to co-create solutions for the most suitable renderings. Malay and Tamil-speaking volunteers have told us that they are keen to help with the standardisation of translated terms. Chinese-speaking volunteers are interested in post-editing and vetting machine-generated translations. We look forward to working with our Citizen Translators to improve Government translations.
The second initiative is the Tamil Engine for SG Translate, which was launched last October. Public officers can now generate machine translations in all four official languages. The SG Translate web portal – called SG Translate Together – will be progressively opened to members of the public this year.
The Seniors Go Digital website and the TraceTogether mobile app are already available in our four official languages. The Government also has plans to translate the SingPass mobile app by June 2021. The Government is committed to translating more Government digital services, where necessary, so that those who are more comfortable with their mother tongues can access Government digital services with greater ease. Chairman, in Mandarin please.
(In Mandarin): [Please refer to Vernacular Speech.] Digitalisation is here to stay. But some Singaporeans are still hesitant and uneasy about using digital technology. The Government fully understands these concerns. To ensure that all Singaporeans embrace digitalisation with ease and confidence, we will continue to rollout and expand initiatives to help Singaporeans grasp digitisation tools and skills.
For companies, the Minister has announced that we will be launching the Digital Leaders' Programme and “CTO as a service”. These programmes aim to help participating companies integrate digital technologies into their business. That way, companies can also compete on the international stage.
At the individual level, the Government has set up in-person touchpoints at libraries and in community centres where Digital Ambassadors help less digitally savvy Singaporeans pick up digital skills. We have taken care to include the human touch in these public education efforts. Digital Ambassadors have been engaging and teaching seniors how they can protect themselves when transacting online so that they do not fall victim to scams, for example, to use strong passwords for online accounts and not disclose one-time passwords when using digital banking services.
For Singapore to succeed in digitalisation, we will need to work with Singaporeans, the community and companies. Through the Digital For Life Movement, we will work with our partners to champion causes they are passionate about and to leverage on their expertise so that they will be able to help vulnerable Singaporeans enjoy benefits of digitalisation.
The Government continues to prioritise the quality of translation. We have launched the Citizen Translators initiative where we reach out to volunteers to co-create solutions for the most suitable translations. We are encouraged by the public's response to this initiative. We look forward to work them to improve Government translations.
(In English): Back to English, Chairman. The digital future presents many opportunities for different segments of our citizens. The Government will continue to work with partners from the people and private sectors to strengthen the digital eco-system. This way, Government-led programmes and community initiatives can complement each other and create greater value for Singaporeans. We look forward to forging an inclusive and digital Singapore together.
The Chairman: Mr Christopher de Souza.
Mr Christopher de Souza: I would like to thank the Minister and the two Senior Ministers of State for their very thoughtful clarifications. I would like to ask the Minister, in particular, whether he sees opportunities arising out of the COVID-19 pandemic for digitalisation in Singapore such that we can garner a reputation for being the Silicon Valley of Asia, whether we can bring the best digital minds and the best digi-tech minds to Singapore and have economies of scale here such that we can replicate or even advance a reputation of being the Silicon Valley of Asia. That is my clarification number one.
Mr S Iswaran: Chairman, I thank the Member for his clarification. I think when the Member uses the term \"Silicon Valley of Asia\", it is really a kind of a shorthand to describe what is essentially a confluence of opportunity, an enabling environment and talent. I think, in that regard, even before COVID-19, we already had a certain momentum to bring that confluence about in order to create a thriving opportunity within the tech eco-system in Singapore and, through Singapore, into Asia.
And to answer the Member's specific question, I think COVID-19 has, if anything, given this further impetus. How so? First, obviously in catalysing digital innovation in order to deal with the challenges that COVID-19 has thrown up but, in the process, also triggering a larger scale of adoption of digital technologies and, in a sense, a desire for more digital solutions because the value proposition has been internalised and now there is a desire to adopt and scale.
The second thing is we have also seen the flow into Singapore of more technology-related investments. In fact, the Member himself mentioned this in his speech and several others have alluded to this. Again, I think that is in recognition of both the business conducive environment that we have in Singapore, the talent base that we have in Singapore and the opportunity set that they see in our region, and how Singapore can be the locale from which those opportunities can be accessed.
So, we have seen significant investments and new projects initiated by the big tech players, global tech players. But we have also seen many of the mid-sized, and even our local enterprises, moving in that direction.
The third point I would make is, because it is about confluence with talent, and this is where we have been making significant efforts – as I had explained and my colleagues also elaborated – both in terms of developing our local base, which is important, investing not just in the pipeline that is upstream from our Universities and pre-employment training and education, but also in endowing our workforce, those especially in their mid-careers, with the requisite skills to make that pivot into tech.
But at the same time, we are also engaged to attract talent that can complement our local base judiciously. Because of that scarcity of tech talent across the spectrum – whether you are talking about AI, cybersecurity, data analytics and so on – we need our fair share of talent. And that is something we are purposefully going about in partnership with other economic agencies, and that includes those under MTI. And it is about attracting Singaporeans who are based overseas, who would want to come back, perhaps, and we have seen many like that. But also other talent from other nationalities, who can judiciously complement our capabilities.
So, in sum, Mr Chairman, to answer the Member's question, there is certainly an opportunity for us to build on this. Whether I would use the moniker \"Silicon Valley of Asia\", well, I would apply that with some restraint. But, I think, certainly, we have the opportunity to be a thriving, secured, vibrant digital hub in this part of the world and part of the global eco-system.
The Chairman: Mr Don Wee.
Mr Don Wee: Chairman, I am heartened to understand from Senior Minister of State Sim Ann that the new Choa Chu Kang library will have very good offerings. So, when the library is undergoing renovation now, there is a book dispenser, which is placed at Lot One, Level 1 currently. So, I wonder if NLB can consider shifting the book dispenser to the nearest rental block, which houses about 500 units of young families, once the renovation is over, and since the rental block is only about 2 km away from Lot One?
Ms Sim Ann: I thank the Member for his support for the book dispenser. It was placed indeed to help meet the gap, while our renovations are on-going. We will take his suggestion back and study and get back to him.
The Chairman: Mr Sharael Taha.
Mr Sharael Taha: Thank you, Chairman, and I thank the Minister and the two Senior Ministers of State for all their clarifications.
Just a minor question for me. I would like to ask the Minister, he mentioned that the Digital Leaders Programme would be for 80 companies. Sounds like a very good programme as we need to grow our digital leaders. So, how will these companies be selected? Will it be by industry or the value proposition that they are looking for?
Mr S Iswaran: Mr Chairman, I thank the Member for his question. Basically, we are starting on this because we believe that there is a value proposition here. And, so, IMDA, working with other economic agencies, in particular, Enterprise Singapore, will be focused on working with companies that had already embarked on their digital journey; somewhat progressed in the way they have evolved their systems, and they also have the kernel, the core of a digital talent team, so that this can be the foundation upon which we build this.
Because if I go back to the point I made at the start, this is about not just broad-based scale in terms of the digitalisation reach, it is also about peaks. In other words, we are now trying to empower companies that are ready and able, to move forward, adopting more advanced digital technologies, with the capabilities and, critically, the talent that will enable them to maximise.
So, this will be something where the agencies will be working with companies that they deal with, in order to identify. There is no preset quota for particular sectors. It is more a function of the readiness and willingness of these companies to adopt the technology and to really be able to leverage it for the next bound of their digital growth.
The Chairman: Ms Nadia Samdin.
Ms Nadia Ahmad Samdin: Thank you, Chairman. I would really like to thank the Senior Minister of State for addressing my point earlier on. I was very keen and heartened to know that there have been discussions on how we can protect our women and girls online. And this is particularly poignant as this is the year of celebrating Singapore Women.
I know it is preliminary but could the Senior Minister of State please share some of the ideas raised during the discussion and the type of partners who are involved? I have heard parents shared how they feel really ill-equipped to deal with, for example, Tik Tok, Snapchat and OnlyFans. But we know that banning and deleting these apps will not solve the issue. So, I hope that any efforts, moving forward, will involve equipping parents as well.
Ms Sim Ann: Thank you, Ms Nadia Samdin, for your strong interest in this subject. The conversations are still on-going but I can share a few clusters of issues that have already emerged from our discussions.
The first cluster of issues would concern websites or online businesses that, on one hand, may be outright illegal, in terms of proffering sexual services, or they could be part of a grey area in which, perhaps, behaviour could be encouraged, which then may move down the slippery slope towards criminal activities. This is especially of concern if youngsters, including young girls, are targeted. For this cluster of issues, there is the aspect of looking at whether or not our existing laws are applicable, and to ensure that reporting mechanisms are timely and effective.
The second cluster of issues that have emerged concern the sharing to many and without consent of images and footage of victims. Very often, these are of women and girls, but we do not rule out men being the victims as well. This would fall under, very broadly, the ambit of harassment. This is something which on-going discussions, not just within the MCI family but also within the MHA family, about online harms and how to strengthen them, and how to also work with platforms to mitigate these harms would be very pertinent.
The third cluster of issues concern one-on-one interactions. So, for instance, users of social media platforms receiving unsolicited lewd pictures or very suggestive questions. And very often, not quite knowing how to react to these unwanted advances. For many of the social media platforms, community standards do exist but it is a question of whether users are fully aware of what these standards are and what they must do in order to protect themselves. So, for instance, we hear that a very common reaction of people who receive such unwanted advances is to delete them. But once it is deleted, the proof is gone, and that is something that quite a lot of public education and support would be helpful to protect the next woman or girl or, indeed, man or boy, from becoming the next victim.
The Chairman: Ms Mariam Jaafar.
Ms Mariam Jaafar: I thank the Minister and the Senior Ministers of State for the clarifications. I particularly want to express my deep appreciation as it is very evident that the approach that has been taken is a very inclusive one, with the focus on SMEs, hawkers and the elderly and also vulnerable women.
I am very glad to hear of the move to different kinds of schemes, so including more customisation and deeper hand-holding for digital starters. For example, the CTO-as-a-Service as well as for our Digital Leaders Programme. Ideally, I hope that this will also be somewhat sector-specific, and also address – as I had said in my cut – the internal process and the change management that would need to go along with any advice on adoption of digital solutions.
At the same time, I do want to raise a little caution, having heard some feedback on earlier programmes, which is that SMEs themselves tend to under-estimate the degree of hand-holding needed, and how hard it is, actually, to make a digital transformation. Perhaps, at this point, I should probably declare my interest as a consultant in this space.
Mass customisation is notoriously difficult, even with technology. So, I hope that these schemes will truly, really, be adequately resourced, which does involve cost, and evaluated frequently on their effectiveness and what needs to be done differently. Because I really do think that it is important for SMEs to get onboard.
So, if it comes to a matter of looking at ways, for example, to fund the journey, let us not skimp on the cost but actually think forward and proactively about how we can enable the highest number of SMEs.
Mr S Iswaran: Mr Chairman, I think the Member has made an important point, which is really that when we embark on an effort like this, which is, in essence, a kind of customisation at a mass scale, mass customisation, as she puts it, the challenges are considerable and we should not under-estimate the effort that is required.
We are talking about a very large base of enterprises. When we talk about SMEs in Singapore, we are talking about north of 200,000 entities. And they vary significantly in size, scale and complexity, from the MSMEs all the way to the mid-sized players; and also those larger than that.
So, our objective is, on the one hand, to have that baseline support, so that SMEs can start the journey. Hence, my point in what I said earlier, that we are committed to supporting businesses at every stage, from start-up to scale-up, and those even further beyond. And that is also evidenced in the way we have structured our programmes.
So, if you look at the SMEs Go Digital, it has a got a suite of possibilities, offerings from payment solutions to going online for marketing and so on. And all of these are enterprises that are already at a certain scale and wanting to make this adaptation. But we have also got the Start Digital programme which is really about those who are starting up their business but they can already adopt some of the digital solutions. And then we have the other extreme, the scaling up programmes, where they can go international by using some of these.
The newer initiatives that we have embarked on are really trying to build on that suite of capabilities that we have, to allow a greater level of customisation but without overstating the case because the challenge remains. So, for example, CTO-as-a-Service really can go a lot deeper because you now have access as an SME to people with the expertise to do the diagnostics, assess the need and more than that to work out a strategy and a plan. And as I emphasised, it is also to work with the SMEs on the execution of that plan. So, project implementation. That is key. Because it is not just about a set of tools and then putting them into the system. As we all know, it is about the integration and then, how you adapt to your work processes to that new set of tools. I think that is key to realise the full benefits. So, that is our intention around the CTO-as-a-Service idea.
At the same time, we have got something on the Digital Leaders' Programme which is even more customised; working at a higher level. Hence, the numbers are smaller; I think this point that was raised. Because we need to train our sights on those that can do this, that are ready for it because they already journeyed somewhat.
In summary, I would say it is different strokes for different folks. And we have to find that spectrum of capabilities, both in the toolkit that we have in Government but also, as the Member put it, ultimately the customer must also understand what it entails. It is not just about making a decision, \"Let's go digital\". It is also about understanding what it entails and the kind of commitment that is required in terms of the technology you bring into the organisation but, most importantly, how you invest in your people and your systems to take full advantage of it on a sustainable basis.
The Chairman: Mr Christopher de Souza. Can I also remind Members to keep their clarifications short?
Mr Christopher de Souza: Thank you, Mr Chairman. My short clarification is in relation to the digitalisation of libraries, my request is that we do not overdo this. Because there is something about flipping through a hardcopy book, bringing your family and your children and introducing them to the library where you go and pick a book according to the author, and return the book according to the author, keeping quiet, it is a communal space; and reading a book that has been read before and the pages have been touched before. I think that is something very intimate and special. That is something unique to the reader and unique to hardcopy books.
So, in as much as we try to digitalise the reading of books, can we do this in a very calibrated fashion so that we pass on to the next generation the love for holding a hardcopy book and taking in the story physically as it were.
The Chairman: As long as you disinfect the book.
Mr Christopher de Souza: As long as we disinfect the book, yes. And I should disinfect my rostrum, Sir. That is my short clarification.
The Chairman: I am sure there is a shorter answer. Minister.
Mr S Iswaran: I thought I should respond to this clarification, with the indulgence of my colleague Minister of State Sim Ann. I think many of us share the Member's appreciation of the tactile experience of reading a physical book and also of gathering physically in the library and so on. I think it is not an experience that we want to eliminate by any means. We want to preserve it. And actually, what we want to do is enhance it by creating what we describe as an omni-channel strategy so that the digital platform and the digital initiatives will reinforce the attractiveness and the value of what you have physically in the library. And in turn what you experience in the library can then be carried on virtually through digital platforms.
So, really, what we envisage is a virtuous cycle between the physical and the virtual, and we want to ensure that we are able to keep the finest traditions of our libraries very much alive and thriving even as we go down the path of digitalisation.
The Chairman: Ms Tin, would you like to withdraw the amendment?
Ms Tin Pei Ling: It has been wonderful hearing from all the Members. As we move as one towards the digital future, I like to take this opportunity to thank the entire MCI family – our Minister, our Senior Ministers of State, everyone here – for their support and to include also the officers from the SNDGG. With that, I beg leave to withdraw my amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $1,380,214,000 for Head Q ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $60,884,000 for Head Q 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 S (Ministry of Manpower)","subTitle":"Creating a future-ready economy and workforce","sectionType":"OS","content":"The Chairman: Head S, Ministry of Manpower, Mr Desmond Choo.
Mr Desmond Choo (Tampines): Chairman, I beg to move, \"That the total sum to be allocated for Head S of the Estimates be reduced by $100\".
Since the start of the pandemic, the MOM has been charged with protecting the workforce from escalating unemployment and the threat of COVID as workers returned to work.
The results are clear. One hundred and fifty-five thousand jobs were saved or created. Nearly 2% shaved off the potential increase in unemployment rate.
To further judge the Ministry’s progress, it is perhaps instructive to examine much of our post-recovery Budget debate thus far. We had the chance to look at many longer term plans. But this would not likely have happened if our unemployment rates have tanked and not recovered. This stands in stark contrast to many overseas countries which are still deeply mired in COVID-19 cases and in the deepest of recession. Hong Kong's unemployment is at 7%, the US at 6.3% while Singapore is around 3%.
I would like to thank our MOM officers who sacrificed and work day and night to stabilise the threat of COVID-19 in dormitories so that work could proceed safely and services could resume and they also kept our workers employed and the workplaces safe. So many thanks to Minister Josephine Teo and her team of MOM officers. Thank you very much. [Applause.]
Even so, we know that we are not out of the woods and recovery is far from certain. We are always a big cluster or two away from falling off the recessionary cliff. In fact, the aviation, aerospace, hospitality and retail sectors still have years before they can recover. How would the Ministry support workers from these hard-hit sectors, especially if the Jobs Support Scheme is slated to end in September this year?
Much time, and rightly so, were spent debating supporting our lower wage workers in the Budget debate. A key trend in many other countries has been the disproportionate number of lower income workers losing their jobs. How many low-wage workers did we manage to protect during this COVID-19 crisis? If these jobs are lost, then uplifting lower wage workers will only be doubly difficult.
That we are able to moderate unemployment rates and maintain industrial peace even during very difficult times is not a matter of good fortune. The secret weapon we have is our special model of tripartism. Workers and companies are united with the Government to implement difficult cost-cutting measures. This has allowed us to manage costs and save jobs.
I remembered representing the unions in the many prolonged and tense National Wage Council discussions last year. While understandably tense and sometimes heated, we were united in trust. That we would do our best to ensure the Singapore economy will survive and as many workers as possible remain in their jobs.
I hope that while we look at refining manpower policies, we do not forget tripartism, Singapore's bulwark against debilitating economic forces. It has worked during every one of our crises. It has worked during the deepest of the COVID pandemic. We need to continue to safeguard and invest in it.
COVID-19 has surfaced the highly disruptive forces of digitalisation and remote working. These are causing structural employment issues. It goes just beyond workers in Singapore being dislocated but also losing jobs permanently because of the ease of working online.
Our decades-long investment in our training and placement system has allowed us to re-deploy workers quickly. In the Labour Movement, we know the difficulty of retraining and finding worker another job. According to a New York Times article on 27 February 2021, unemployment is traumatic, affecting mental and physical health, and also erodes skillsets. We see that with our very own retrenched workers. A robust placement system is critical not only during this crisis but also to tackle structural dislocations. How would the Ministry continue to evolve our job placement system to deal with structural changes, especially for our PMEs?
The structural forces also beg the question on how shall we evolve our foreign manpower system so that it serves both current and future needs? It has served companies well over the years as they could expand beyond our small local workforce size would allow.
The question going ahead is how to help businesses to operate effectively while at the same time, allowing for the Singaporean Core to grow. These challenges can be difficult to balance. It can be difficult to tighten manpower quota without causing disruption to many companies.
Industries are more complex now and so are their needs for manpower and talent. Many companies are involved in multiple industries and do not neatly fall into the five major sectors in the current system. Companies also need multi-skilled workers doing multiple roles. While we have critical shortages of local workers in some industries, our local workforce might have supply in many other places. And this can happen within the same sector amongst different job roles. This is not surprising considering how our educational and workforce profiles have changed rapidly over recent years. How can the Ministry balance such needs going forward?
COVID-19 has also brought to the spotlight an important part of our workforce – which is the Self-Employed Persons (SEPs). SIRS was instrumental in helping our SEPs tide through a very difficult period. I had shared during the Budget debate on the need to level the playing field between the SEPs and the big platform companies and organisations.
I would like to ask what are the Ministry's plans to strengthen retirement adequacy. This is a tricky trade-off to manage between their take-home income and preparing for the future. How would the Ministry also involve the companies to provide for these SEPs?
Furthermore, many SEPs are not given training and are likely to be stagnant and lose productivity over time. How can we continue to develop and provide training for SEPs so that we can grow this segment of the workforce?
Next, I would like to touch on our foreign domestic workers (FDWs) and how we can care for them. Over the last few weeks, we have heard unfortunate stories of FDWs being abused. NTUC's Centre for Domestic Workers or CDE was set up to help our FDWs. It has disbursed nearly $200,000 to 1,630 of them between 2016 and 2020. It has sheltered and supported more than 1,500 of them. It has a network of 1,000 volunteers and ambassadors who engage with them to identify those who require assistance, educate them about their rights, and about resources.
What are the Ministry's future plans to further care for FDWs to prevent unfortunate abuse cases from happening again? How can organisations such as CDE complement the Ministry’s work? I hope that employment agencies can play greater roles in safeguarding the welfare of our FDWs even after a successful placement.
Sir, in conclusion, as much as our MOM officers have worked extremely hard, I am afraid even more hard work awaits them. Singapore needs MOM to keep its eye focused on implementing our workplace safe management measures right, to implement our employment and workplace safety policies right so that our workers will continue jobs and work safely until Singapore has successfully tackled the COVID-19 pandemic. Sir, I beg to move.
[(proc text) Question proposed. (proc text)]
The Chairman: Mr Patrick Tay.
Mr Patrick Tay Teck Guan (Pioneer): Sir, with your permission, I will take both cuts.
Mr Patrick Tay Teck Guan: First cut on underemployment. I recently filed a Parliamentary Question and MOM replied that there are at present about 36,000 Professionals, Managers and Executives, or PMEs, earning less than $3,000 per month.
[Deputy Speaker (Mr Christopher de Souza) in the Chair]
If you lower it to $2,600, there are still about 20,000 earning less than $2,600 per month. This figure is worrying as these are supposed to be workers in executive and managerial positions. There is, therefore, a need to examine closer to see if these are actually disguised PMEs, that is, given inflated titles but the job is not, effectively, a PME job.
By the same token, we may have to embark on the Progressive Wage Model for such PMEs to help them in their skill, wage and career progression. Similarly, we may need to, again, review the salary limit of $2,600 in Part IV of the Employment Act, and for MOM to closely monitor non time-based underemployment in Singapore despite its subjectivity.
Second cut, review of the Industrial Relations Act. The Industrial Relations Act was amended in 2015 to permit rank-and-file unions to collectively represent executive employees. To avoid conflicts of interest and undermining management effectiveness, executives with senior management functions were excluded from collective representation. These functions are set out in section 17(3) of the Industrial Relations Act.
In the years that have followed, unions which have sought to extend their scope of representation to include executives have met with some difficulties because the exclusions set out in section 17(3) are too broadly worded, thereby giving employers the opportunity to claim that even low- and mid-level executive employees fall within them, whereas the intent behind the law was only to exclude those who are at senior management levels and carrying out functions which genuinely give rise to a conflict of interest if they are represented by a union.
Besides this, there are several other procedural and technical areas which are ambiguous or need greater clarity. I would like to suggest that a tripartite work group be formed to look at reviewing the Industrial Relations Act and addressing these concerns.
Mr Liang Eng Hwa (Bukit Panjang): Sir, in reply to my Parliamentary Question last week on the employment market situation, Manpower Minister shared that the overall employment in 2020 declined by 172,000, reflecting the significant impact of COVID-19 on the labour market.
However, it is noteworthy that this sharp reduction in employment is mostly borne by foreign workers. In fact, non-resident employment fell sharply in 2020; contracted by 181,500 or 16% year-on-year decrease. This is more than the drop in total employment.
On the other hand, resident employment, mostly locals, actually grew; albeit just a modest increase of 9,300, as the various Government support measures helped push local hiring.
In a way, having a foreign workforce served as a buffer and helped cushion our resident workers during an economic downturn. In better times, the foreign workforce helps businesses grow so that companies can find the workers to do the jobs that Singaporeans would not want to do. But in a downturn, non-resident employment tends to bear the brunt as companies release their foreign workers and/or the foreign manpower restrictions start to tighten.
This has been a similar experience in previous economic downturns, such as during the Global Financial Crisis. As a result, it has kept our unemployment rate low, even during recessionary years.
The various schemes under the Jobs Growth Incentive, or JGI, have helped to stave off massive local unemployment and also created new job openings and placements. A novel scheme that I particularly like is the SGUnited Jobs and Skills Package, which was intended to tackle the anticipated fallout from the pandemic. With the support from the tripartite partners, 76,000 Singaporeans have been placed into various jobs and skills opportunities under the scheme.
In Budget 2021, Deputy Prime Minister Heng listed three key enablers for our economy to emerge stronger, one of which is to develop our people and enabling Singaporeans to have good jobs and job opportunities.
He also referred to SGUnited Jobs and Skills Package as a key pillar to enable Singaporeans to learn and thrive and to seize opportunities in the new growth areas. The Government will commit another $5.2 billion to fund this effort.
With the package now expanded to support emerging stronger initiatives, can the Minister share the details as to how JGI can support the hiring of 200,000 locals this year and the 35,000 traineeships and training opportunities as mentioned in the Budget Statement. How would these hiring and training opportunities support as well as ride on the Emerging Stronger Together effort?
Under the earlier phase of the JGI, 100,000 local jobseekers and 76,000 traineeships were placed. Some of these are short-term in nature. How can JGI and MOM agencies help these Singaporeans transit and access new opportunities, as envisaged in the Emerging Stronger Together plans?
Assoc Prof Jamus Jerome Lim (Sengkang): Chairman, currently, WSG offers a Professional Conversion Programme, or PCP, that seeks to enable mid-career PMETs to undergo skills conversion into new occupations or sectors; as well as SkillsFuture credits for all Singaporeans to prepare themselves for potential career transitions. SkillsFuture and the PCP received a further boost under the Jobs Growth Incentive announced in August 2020 where the Government committed to co-pay a quarter – half for those aged over 40 – of the salaries.
In a world where changing technology, continued globalisation and environmental considerations mean that job displacement and structural unemployment are liable to become more pervasive, co-funded PCPs of this nature will take on an increasing importance in helping our economy evolve into the competitive landscape of the future.
Yet, while we have some anecdotal evidence of the programmes' benefits – a resident employer I know shares, for example, of a number of successful placements. We have less systematic evidence that there is proactive re-employment of recentlydisplaced workers. Currently, the JGI is applicable for up to one year for hires commencing in September 2020 onwards.
This sort of certainty for both employer and employee is critical. From the employer's perspective, it is effectively co-insurance for a risky hire since the potential employee's ability to adapt and perform in a new role is largely unknown.
From the employee's perspective, it is insurance of a different kind. The promise of a job, even if it is only guaranteed for a year, is a solid incentive to be willing to undergo uncertain and often painful re-training.
Given the inherent complementarities between the PCP and JGI, I wonder whether co-funding support can be made more permanent. I would even go as far as to venture that the PCP be had not just with co-funding but to suggest that the programme become a natural extension of a more holistic unemployment insurance programme, which commences from the point of redundancy.
The Workers' Party had previously suggested the contours of such a redundancy insurance system, which I will not repeat here. However, I am making the case to further incorporate unemployment insurance, given how it is a natural complement to the PCP and JGI programme.
Such an extended programme is not unprecedented elsewhere. Sweden's Job Security Councils, for instance, receive not just standard unemployment benefits, but also financial compensation to assist in the job transition. The system seeks to provide security for a job, just not necessarily the job that you are originally trained for. Denmark's Flexisecurity encourages low-cost, flexible hiring and firing, but displaced workers receive unemployment support alongside re-training and re-education programmes. And Germany recently re-fashioned its National Unemployment Agency to become more of a job matching entity that issues not only career advice but also vouchers to finance re-training costs.
The underlying principle behind these efforts is clear. There is a natural end-to-end complementarity between unemployment insurance on one hand, and retraining and reintegration into the workforce on another. Of course, they are perennial concerns that have to do with cost, but redundancy insurance can be made a self-financing system heavily supported by workers' own contributions and, perhaps, by some Government top-up with a recurring revenue.
Singapore already has most of the elements of an end-to-end job safety net in place, including the functional equivalent of unemployment insurance, which was widely deployed over the course of the COVID-19 crisis via a number of relief schemes and support grants. All that is lacking is a willingness to institutionalise this approach and ensure that the system is cohesive so that Singaporeans unfortunate enough to be displaced from the jobs that they are previously prepared for, also receive the support and guidance they need in a tough labour market.
The Chairman: Mr Yip Hon Weng, if you would like to take your two cuts together.
Mr Yip Hon Weng (Yio Chu Kang): Chairman, I will take my two cuts together. Recent statistics indicate that fewer graduates have found permanent full-time jobs in 2020. There was also a spike in part-time employment during the COVID-19. This is to be expected, given the economic situation, and it is encouraging that graduates are able to find some form of employment to stay productive and earn an income.
However, long-term underemployment would make it challenging for them to move on to better prospects, even when the economy improves. This is especially so if the part-time work they have taken on does not develop skills that are transferrable.
Graduates from the lower income families and those who take loans to finance their studies are harder hit. They may have to settle for any source of income that comes their way. This includes informal jobs, like ride-hailing and food delivery. This is unlike some of their peers who may have the privilege to be more particular with choosing their first job and spending their free time taking up courses to hone their skills.
Can the Ministry share more about the progress of the SG United Traineeship programme, now that we are more than a year into it? How useful is it for fresh graduates? How many have secured permanent employment from it? Are there plans to expand the programme and create more vacancies across a wider variety of sectors and job roles? Is the Ministry reaching out to graduates who are working part-time jobs, especially in the informal sectors, to see how to provide targeted help to them? I notice that the focus of media reports seems to be on helping graduates from the local public Universities. What about graduates from the Polytechnics, ITEs and private Universities? What is their employment situation and how are they benefiting from the traineeships?
Next, on senior employability. Seniors are very important to our workforce. Mature workers have plenty to offer. They have knowledge, skills and experience accumulated from decades of practical experience in the workforce. Thanks to the Government's push for education and literacy in the earlier years, many mature workers are well-educated and possess the necessary prerequisites and qualifications to take up or transit to jobs that their younger peers qualify for. But with the labour market still tight, the challenge of landing a full-time job has been heightened. This is particularly so for the older workers, who are disadvantaged by unfair stereotypes that employers have of them.
There are various grants to support employers to re-design their workplace practices, processes and jobs for senior workers. Tripartite partners have also worked with Institutes of Higher Learning to develop a training programme specific to the management of older workers in Singapore. And Workforce Singapore, or WSG, introduced customised support for sectors with a higher concentration of older workers. Can the Minister share about the progress of these efforts? What is the take-up among employers and how effective have they been in dispelling the myths about senior workers?
Some seniors prefer to work fewer hours because of health reasons, or to pursue other personal interests. They built up their retirement funds and they do not need a full pay-check. And there are also other individuals who could benefit from reduced work hours, such as care-givers and those who desire more time for other obligations. They could benefit from job-sharing. In this way, we can retain more talent, including mature workers, in the workforce.
Will the Ministry look into expanding the Job Sharing Initiative? Can the Ministry share more about plans to leverage on senior employment and the mature workforce for the benefit of our economy? Thank you.
Ms Ng Ling Ling (Ang Mo Kio): Mr Chairman, Sir, as an ageing society, the Government has cast an aspiring vision for Singaporeans to age with purpose and grace. For most Singaporeans, this will, hopefully, be in the form of a good retirement with sufficient savings and restful time to enjoy the company of grandchildren and catching up on hobbies.
However, this is not necessarily the case for some segments of our lower skilled elderly who may need to continue to hold on to employment in order to sustain independent living. I believe that providing dignified employment for elderly who are able and need to continue working will be a growing challenge in our ageing society with high cost of living.
I am concerned that a segment of our elderly may be left behind because of our fast transforming economy, especially with the rapid digitalisation of work processes by employers to increase productivity.
I have a 70-year-old resident who came to seek employment assistance. The resident was an experienced former security officer who was asked to retire even though she desired to continue working. As her children were not doing well financially, she did not want to be a burden to them. She wanted an administrative or customer service role which she felt she would be adequately able to carry out. Nonetheless, she said that no employers would consider her, given her age. Throughout my conversation with her, I could feel her dejected emotions because of the multiple rejections that she has been receiving. Despite her goals to be independent and self-sufficient at her age, it did seem that she might have to end up seeking some form of financial assistance in the interim while continuing her uphill job search journey.
I know that the 2021 Budget has an increase in Senior Worker Early Adopter Grant and Part-Time Re-employment Grant. But both are applied directly to employers. Also, the SGUnited Skills Programme caters mainly for mid-career jobseekers impacted by the COVID-19 pandemic and the SGUnited Traineeship targets mainly fresh graduates from the Institutes of Higher Learning. My concern is how elderly like the resident I mentioned, will be able to navigate skills training, job matching and job support amidst these schemes.
I would like to ask what more can the Government do to partner employer with the enhanced grants to widen the job range for this segment of vulnerable elderly and how can community agencies be roped in to partner employers in facilitating job matching for those who want to keep dignified employment.
Mr Chua Kheng Wee Louis (Sengkang): Chairman, CPF has been able to maintain its interest rates at 2.5% for Ordinary Accounts and 4% for Special MediSave and Retirement Accounts. The interest helps our CPF members to grow closer to their time and goals, which is to meet or exceed the minimum retirement sum. Now, even though 2.5% or 4% compounded over a long period of time can lead to significant interest income. I would like to ask if there can be a choice for CPF members, especially with a long-term time horizon.
For example, the 20- to 30-year-olds today with 30 or 40 more active working years to devote a portion of their CPF to earn higher returns. For example, MINDEF already has a Saver Premium Fund where investors have an option to choose between dynamic balance and stable according to the investment needs. Is there a possibility for CPF members to have similar options where they can opt a portion of their CPF savings for a dynamic portfolio, such as to co-invest with the Government's investment vehicles to enjoy the higher returns.
Up to 50% of the net returns from the reserve do flow back through the NIRC framework. Could there be a more direct means by which members will be able to earn high investment returns through co-investing in the Government's investment vehicles, especially given the long time horizon for CPF monies held for our members' retirement.
There is already a CPF Investment Scheme in place with a list of specified investment products included under the CPFIS. Should we look further when you really have the highest quality fund managers in the Government's investment vehicles and does it not make sense to allow Singaporeans to directly benefit from the Government's prudent and astute investment capabilities?
Mr Abdul Samad (Nominated Member): Chairman, this pandemic has seen many workers either had to take pay cuts or even lose their jobs, including the executives and management. For the fortunate ones, they were able to move from one job to a similar, if not better job, in a shorter time compared to others. This was made easier with the collective efforts of various agencies including NTUC's Job Security Council to help secure jobs for our fellow Singaporeans.
For some, who are unable to find employment opportunities, they had to take on alternative temporary jobs to tide them over such as driving private hire vehicles or working as food delivery persons. As such I would like to inquire the Ministry on the programmes such as Professional Conversion Programme (PCP) and Capability Transfer Programme have been effective in mitigating the employment challenges faced by Singaporeans during this pandemic?
Can the Ministry share to date how many of those PME jobseekers has secured job opportunities through PCP, like the Place and Train, Attach and Train, Job Redesign and Reskilling? What were the bottlenecks that stop an individual and/or employers from recruiting the displaced workers through programmes such as PCP? How many of those who went through such programs have resulted in taking on higher value added jobs or new job areas?
In addition, how can such programmes be effectively marketed for better outreach so that we can entice self-employed workers such as private hire drivers or those working in a gig economy to join the permanent workforce for better job security?
Can the Ministry also share how many of our local workforce have gone through and benefited from the Capability Transfer Programme? Are there good examples on the effectiveness of these programmes in terms of skills transfer and capability through our local workforce?
What is the Ministry projection for such programmes and how we can create interest and encourage more local workforce to seize such opportunities at the earliest possible time?
Mr Yip Hon Weng (Yio Chu Kang): Mr Chairman, the PMET jobs which we used to do from the comfort of our offices and now in our homes, are at risk of being outsourced. Even before this, companies around the world are delegating small-scale projects to cheaper labour in developing countries, such as design, coding and customer services. Amidst the pandemic, technology has made it more easy to do remote work. On the other hand, Singaporean talents would also have more opportunities to work remotely for foreign markets. How will the Ministry help Singaporeans to leverage on these opportunities? How will the Ministry minimise the outflow of jobs as a result of remote work?
Certain essential services usually carried out by foreign workers had to be suspended or reduced in frequency during the circuit breaker period. It is therefore prudent to push for skills development amongst the blue-collar sectors in Singapore. Some of these jobs in construction, landscaping and cleaning are considered skilled labour in other developed economies like Japan and Norway. It is heartening to observe that some young Singaporeans are embracing opportunities in the cleaning and waste management sectors. But such industries are still plagued with stigma and looked upon unfavourably.
How do we transform these sectors, along with mindsets, to ensure we always have a reliable pool of local talents to count on for these essential services?
Prof Hoon Hian Teck (Nominated Member): A feature of the COVID-19 economic health shock is that it is uneven across sectors. While firms in a contact-intensive sectors suffers a contraction in output and will lay off workers in the absence of policy measures like the Job Support Scheme (JSS), some other firms such as those offering products via an electronic platform do well.
The issue to be raised here concerns the nature of help that might be offered to facilitate reallocation of workers out of the contact-intensive sector such as aviation/aerospace and tourism related activity into other sectors should restrictions on international travel make it unlikely for normal business to resume soon. More broadly, how do we prepare workers to minimise the scarring effects of a prolonged slump? It is useful to think about three groups of workers. Those currently employed in the contact-intensive sector, those employed in the rest of the economy and new graduates who are entering the workforce.
First, workers who are currently employed in the contact-intensive sector. The JSS keeps these workers on the firms' payroll because the ultimate recovery of the affected sector avoids the need to incur investment costs to retrain a new group of workers with the necessary industry specific skills. Workers in the aviation/aerospace industry will no doubt use the lull period to undergo training to deepen their skills. Perhaps new developments in artificial intelligence and the technology embodied in Industry 4.0 can be mastered to position the industry to ride the wave of opportunities when more normal international travel resumes.
Firms employing workers in the tourism related industry working in tandem with their trade association and chambers can potentially take advantage of a home market effect to cater to demand from residents who are unable to travel overseas for their family holidays due to the pandemic. They can also encourage their workers to build upon common digital platforms to reach overseas customers.
Second, workers were employed in the rest of the economy. The JSS provides support to achieve the stabilisation function of the Government, avoiding a cyclical rise in unemployment, while the Jobs Growth Incentive, the JGI package, seeks to create new hires in the potential growth sectors through a hiring subsidy. The JGI is a very important policy measure as it helps to create a good supply of new job vacancies in growing sectors of the economy. In the aftermath of the Global Financial Crisis (GFC), it has been observed that even though the measured rate of unemployment in the advanced economies decline, the employment to working-age population ratio had actually fallen below pre-GFC levels. So the unemployment rate was low, but the employment to working age population was actually low as well. What is the explanation?
That is because even after several years subsequent to the Global Financial Crisis, there was an inadequate supply of good jobs offering good pay so that discouraged workers withdrew from the labour force. Pursuing structural transformation as a major pillar of Budget 2021, even while help is extended to save jobs in the contact-intensive sector has a virtue of enabling the Singapore economy to create a good supply of new job vacancies when the economy returns to its potential trend growth path.
Third, new graduates entering the workforce during COVID-19. Holding a job confers benefits that go beyond the pay. It provides also non-monetary rewards, non-pecuniary benefits of a job. In contrast, being unemployed produces not only personal costs, but also has important social costs. Family members are also badly affected when a breadwinner loses a job.
The JGI could go some way towards encouraging firms in the growing sectors to hire recent graduates. The SGUnited Traineeship programme is also valuable in helping to link graduates from the Institutes of Higher Learning to potential employers. During a buoyant market, a graduate holding an undergraduate degree might defer post graduate training. Let me declare here that I am an academic at one of the Autonomous Universities. In the current labour market conditions, the opportunity cost of doing a full-time postgraduate degree is lower, lower than during the pre-pandemic era. The Government might consider sharing in the cost of postgraduate education with firms in the potential growth sectors who might be willing to make contractual arrangements to partially fund the workers to acquire advanced skills. After obtaining the postgraduate degree, the worker is then employed by the sponsoring firm.
To sum up, the COVID-19 shock might turn out to be prolonged in this climate. It is vital to minimise the scarring effect on a resident Workforce.
The Chairman: Deputy leader, would you like to move a Motion for exempted business for the Committee of Supply?
The Deputy Leader of the House (Mr Zaqy Mohamad): Sir, may I seek your consent to move that the Chairman do leave the Chair? This is to enable me to move a Motion to take the proceedings on the business of Supply today beyond 7.30 pm.
The Chairman: I give my consent.
[(proc text) Resolved, That the Chairman do leave the Chair. – [Mr Zaqy Mohamad]. (proc text)]
[(proc text) Thereupon Mr Deputy Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Exempted Business","subTitle":"Committee of Supply","sectionType":"OS","content":"The Deputy Leader of the House (Mr Zaqy Mohamad): Mr Deputy Speaker, may I seek your consent and the general assent of Members present to move a Motion to take this day's proceedings on the Estimates for the Financial Year 2021/2022 beyond 7.30 pm, please.
Mr Deputy Speaker: I give my consent. Does the Deputy Leader of the House have the general assent of hon Members present to so move?
[(proc text) With the consent of Mr Deputy Speaker and the general assent of Members present, (proc text)]
[(proc text) Question put, and agreed to. (proc text)]
[(proc text) Resolved, That the proceedings on the business of Supply be proceeded with beyond 7.30 pm of this day's sitting. – [Mr Zaqy Mohamad]. (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 S (Ministry of Manpower)","subTitle":"Creating a future-ready economy and workforce","sectionType":"OS","content":"[(proc text) Debate in Committee of Supply resumed. (proc text)]
Mr Sharael Taha (Pasir Ris-Punggol): Thank you, Mr Chairman. We aspire to be a greener nation and successful transformation necessitates getting everyone on this journey. It is inevitable that certain industries face decline while other industries such as those supporting the Green Plan will see an increase in demand.
For example, with no internal combustion engines by 2040, there will not be any petrol stations then. What about the impact of disruptive technologies like driverless vehicles and drone deliveries? Bridging between the contracting and emerging industries will be challenging and it would be erroneous to assume that everyone can make the transition smoothly. We need to balance and manage this workforce transition, especially when most of the jobs that will be lost are lower wage roles.
I urge the Ministry to consider updating our industry transformation roadmap (ITM) to include workforce transition strategies for low-wage workers, seniors and persons with disabilities. Our ITM and green plan should purposely feature this group of workers so that the industries can proactively redesign jobs to ensure inclusive growth in the post-pandemic economy.
Ms Yeo Wan Ling (Pasir Ris-Punggol): Mr Chairman, our 270,000 SMEs in Singapore represent 99% of all companies in Singapore and are arguably the heart of our Singapore economy. In turn, our hardworking and loyal SME workers are the beating hearts of our SMEs. As the world adjusts to the new landscape that COVID-19 has brought about, SMEs and our SME workers, more than ever, need to pivot, upgrade and keep relevant with the changes to keep afloat and to come out of COVID-19 stronger and better.
At the heart of the pivot, the unions believe that two things must happen: (a) the uplifting and upgrading of our workers to be a dynamic and adaptive workforce to drive the much needed pivot that many SMEs need now; and (b) the building of an even stronger Singapore Core that will allow our SMEs to weather this and other future economic storms.
Corlison, or better known by their Pearly White line, is a progressive SME in the Labour Movement family. More than 88% of Corlison's workforce are Singaporeans and employees above 40 years old are sent on training to acquire new skills at least once every three years. As part of preparing for the new economy, Corlison's staff attend courses in Google AdWords and analytics training to enable them to receive competitive wages and grow to be even more future proof. Corlison has weathered the COVID-19 well and continues to grow market share both here in Singapore and overseas. They have built a strong Singapore Core through redesigning jobs, upgrading work processes and upskilling their workers.
SMEs like Corlison must not be an exception. What will the Minister for Manpower do to assist SMEs in job redesigning and to uplift our workers so that they remain relevant and an important pillar for SMEs to be able to pivot?
Secondly, keeping in mind that many SMEs depend on foreign workers as part of balancing out their limited resources, with the narrowing of the Dependency Ratio Ceiling and SMEs concerned about the viability of their businesses, how does the Minister plan to assist and support SMEs to create a more balanced Singapore Core?
Mr Patrick Tay Teck Guan (Pioneer): Picking a leaf from our recent experience with the Self-Employed Person Income Relief Scheme (SIRS) and the growth trajectory of freelance workers or what many call the \"gig economy\" workers, the Labour Movement hopes more can become union members and enjoy the plethora of offerings NTUC and our unions offer. At present, the Trade Unions Act requires a person to be in a \"contract of service\" to join a trade union. Freelancers who are in a \"contract for service\" may not be full-fledged union members per se. As such, I suggest MOM to review the Trade Unions Act to allow freelancers to be union members without compromising or contravening traditional collective bargaining and representation.
By the same token, can we also explore ways where our freelancers can be better represented and protected of their fundamental rights as workers through amending existing employment laws such as the Industrial Relations (IR) Act or introducing new legislation to accord them better protection than just what the Small Claims Tribunal and Tripartite Alliance for Dispute Management (TADM) can do at the moment.
Mr Chua Kheng Wee Louis: Mr Chairman, based on the MOM's latest 2020 labour statistics, own-account workers, defined as persons who operate their own business or trade without employing any workers – this includes taxi drivers, property agents, tour guides, freelance artists – account for 9.7% of the total workforce, or 228,000 workers, up from 8.8% in 2019.
While some own-account workers are truly independent, such as working proprietors, there are many who offer services as part of a wider organisation, such as taxi drivers, private hire car drivers and food delivery riders.
The COVID-19 pandemic has arguably pushed more workers into the so-called gig economy. Such a rise can also be attributed to the advent of aggregated apps such as Grab and Deliveroo, which have provided platforms for people to seek assignments in exchange for monetary incentives.
We have to recognise that this is a sizable population of the workforce that is not protected by employment laws and regulations. These own-account workers are not deemed as employees of companies and the companies are also not obliged to provide CPF, medical insurance and other employee benefits for these people. Moreover, the own-account worker's income is subject to incentive structures which companies can have the power to change at any point in time, without notice, and often do not require consent.
Many of these workers end up stuck in the cycle of insecure work, reducing their opportunities for career advancement and, as access to credit is restricted, exposing them to greater risk of financial shocks.
For many of these own-account workers, especially in the ride hailing and delivery industries, they exhibit many employee-like characteristics such as working exclusively for one company and/or having fixed working arrangements and key performance indicators (KPIs) which are tied to that of the company.
On 19 February, the UK supreme court has upheld a ruling that Uber's drivers should be classified as workers rather than independent contractors. California's Proposition 22 ballot measure, passed by the voters in the November elections, could also serve as a third way of classifying such gig economy workers. It allows companies to offer private hire drivers partial benefits such as a minimum base pay that is higher than the minimum wage and healthcare subsidies for some drivers, depending on the number of hours that they work.
I would like to ask if more could be done to protect the interest and provide a safety net for this group of workers, such as mandatory insurance and minimum levels of benefits and protection for them.
Mr Edward Chia Bing Hui (Holland-Bukit Timah): Mr Chairman, Sir, Singapore's economy is built around a strong Singaporean Core and supplemented with migrant workers in specific industries and jobs.
Let me first discuss the Progressive Wage Model (PWM), which is critically important for all Singaporeans. As a business owner, I support the PWM. A standalone minimum wage is too general and does not address sustainability and progression issues. In contract, PWM factually is a progressive and sustainable model where wages are paid in tandem with the necessary skills and productivity required for a specific sector.
Employers are showing that they do care about our lower wage workers and their livelihood. As such, I strongly urge the Government and the Labour Movement to further hasten the implemention of PWM in more sectors. We need to have advanced conversations with industry partners to prepare employers so being ahead of the curve is necessary.
Today, the PWM is implemented by sectors, which is a vertical approach. We also need a horizontal approach to include smaller enterprises. Smaller businesses do not have economies of scale and do need a longer runway to prepare and scale up to pay their workers and concurrently remain viable.
A good example are our hawkers. As we celebrate our successful inscription onto the UNESCO Representative List of the Intangible Cultural of Humanity and appreciate our hawkerpreneurs, we must recognise that they cannot offer the same salaries and benefits as other food operators such as restaurants.
I spoke to Mr Lennon Peh, a hawkerprenuer in Bukit Panjang who sells mee rebus and mee siam. He shared that his largest operating cost today is manpower cost, ahead of ingredients and rent. He is also facing higher cost of cleaning and dishwashing and finds it difficult to make up cost by selling his mee rebus and mee siam at a higher price. In his own words, \"a hawker centre is meant to provide affordable food to Singaporeans and I will cause disappointment to customers if I increase prices.\"
There are clear challenges in passing on costs. In addition, we need to consider that any cost increase to adjacent verticals will affect another sector. For instance, the introduction of cleaning PWM could have increased the cost of dishwashing and cleaning, thereby increasing their operating structure. Hence, a targeted approach for smaller enterprises is necessary to keep their business sustainable for themselves and workers, and cost affordable for consumers.
As we progress economically, I urge the Government to work together with the industry players to go into more details, to carefully and sensibly curate and develop bespoke PWM strategies to support all Singaporean business.
Now, allow me to focus on our foreign workforce. MOM has two main levers for managing our jobs and employment and they are the foreign worker levy and Dependency Ratio Ceiling (DRC). Our foreign manpower policy has worked well for Singapore to strike a balance in providing jobs and opportunities for Singaporeans and concurrently supporting the economy with adequate manpower to continue businesses, thereby, economic growth.
Having said that, we must continue to finetune our foreign manpower policy to ensure relevance and calibrate it to meet changing socio-economic conditions. Manpower is essential for businesses to grow. And as they grow, more good jobs will be provided for Singaporeans. As a business owner myself and through conversations with other business owners, the severe challenge of our current policy is the inability to first find the necessary local manpower to grow the business.
Noting the above business owners' concerns, I would like to call on the Government to apply the foreign worker levy lever instead of the DRC lever to a very select group of enterprises that are restarting and/or pivoting their existing businesses.
In my maiden speech, I suggested that we need a different approach for firms re-starting and pivoting after the challenges of 2020. Manpower resources are necessary for these businesses to pivot, and the adjustment of levy is a temporary measure to assist them to have interim stability of their manpower base to transit. Perhaps, adopting a pilot approach with a few identified companies could yield greater insights and allow us to test such options first.
Next, I would like to propose applying and calibrating DRC in accordance with sub-sector nuances and differentiations, in particular, the services sector. The services sector forms a large part of our economy and a differentiated quota would be more targeted and beneficial. Each sub-sector has different job demand among Singaporeans, and businesses in each sector have various abilities to adopt automation to reduce manpower needs.
For example, different players in the foreign worker-dependent industries, like the food and beverage, and cleaning and maintenance, have different base resources and allure as employment choice. Hence, we need to be more surgical in applying DRC in each sub-sector, ensuring that there will be no net increase to the foreign worker population in Singapore based on current DRCs.
I believe that our relentless focus to accelerate the PWM adoption plus this fine-tuning of our foreign worker policies will be important levers to prepare us for a better future.
Mr Leon Perera (Aljunied): Mr Chairman, in October 2020, I called for a mix of fixed-term and non-fixed term work passes for foreigners, to attract investments in next-generation industries and stave off job displacements. Such a mix could be offered to investors for specific projects, especially in highly desirable future-ready industries where Singapore has competitive advantages. The mix could be tweaked, depending on the degree of international competition for that investment. I reiterate this call today.
For fixed-term foreign work passes, the foreign worker would be hired for a fixed term of, say, five years, for example, and this time would be used to train up Singaporeans with equivalent skills. After the fixed term, hopefully, there will be enough Singaporeans with the relevant skills to replace that foreign worker. This shares similarities with the Temporary Skills Shortage Visa in Australia where, if appropriately skilled Australian workers cannot be found, employers can bring in skilled workers for a fixed period.
Furthermore, the Employment Pass scheme aims to train Singaporean citizens and upgrade their skills, fixed-term work passes meet precisely the same. I acknowledge that the current work pass scheme such as the employment pass and newly-launched Tech.Pass aimed to attract skilled workers redressing skill shortages.
However, more can be done to train up a Singaporean Core in next-generation industries and incentivises employers to hire Singaporeans. For example, while the Tech.Pass is targeted at the movers and shakers of the tech world, fixed-term work passes target or broader spectrum of skilled workers across disruptive industries.
For fixed-term work passes, firms should have action plans for capability transfers to equivalent locals as well as mentorship schemes if feasible. Training can be tied to existing schemes in workplaces or academic institutions. Extensions to fixed-term work passes can be considered in the case of very extreme extenuating circumstances.
Miss Cheng Li Hui (Tampines): Mr Chairman, there are some jobs that Singaporeans are just not interested in. In my engagements with residents, I know that some would shun jobs in the marine, off-shore, maritime and manufacturing sectors.
Some parents would even hope that their children working as safety supervisors, engineers and technicians could change to safer occupations or office jobs.
In November 2020, there were reportedly 6,370 jobs are on offer in the manufacturing sector, with one in 10 from the hard-hit marine and offshore sub-sector. Within the sector, electronics, precision engineering and food manufacturing had the greatest number of available openings. We can do all what we can to persuade, to promote these jobs but Singaporeans are just not interested in taking up jobs in these sectors.
The foreign worker quota for S Pass workers in the construction, marine shipyard and process sectors will be cut. The cuts to the S Pass sub-Dependency Ratio Ceiling, or DRC, is in two phases.
The first tightens the sub-DRC for S Pass workers from 20% to 18% on 1 January 2021. The second step will cut this further to 15% on 1 January 2023. If these sectors are not able to attract sufficient Singaporean workers despite job redesign, improved wages, then their business operations would hit a standstill. Where there is justification given by these employers, can the MOM consider giving more latitude for the issuance of S Pass and Employment Pass so that the business can keep on going?
Mr Dennis Tan Lip Fong (Hougang): Mr Chairman, while the Workers' Party welcomes the recent tightening of work pass requirements, there remains a need to review other aspects of these requirements.
One aspect is the issue of unaccredited certifications, which has been in the news again of late. Holders of certificates from degree mills and unaccredited schools have perplexed Singaporeans in previous incidents and may uncertain the belief that all our work pass holders can do the job they claim to be able to do on paper.
To be clear, such academic qualifications may not be forged and we have a system in place to deter forged qualifications. However, these unaccredited qualifications are viewed with scepticism by our citizens and the various degree mills that offer academic degrees and diplomas for a fee with little to no real coursework, give little confidence.
While MOM has indicated its risk-based approach in dealing with such matters and employers do have a primary responsibility to ensure the authenticity and quality of the academic qualifications submitted, this approach should improve so that the trust necessary for Singaporeans to accept truly talented foreign PMETs in Singapore can be improved. Therefore, I urge MOM to consider mandatory Educational Credential Assessments, or ECAs, for all Employment Pass and S Pass job applicants that need University degrees and diplomas. The cost to be borne by the applicant.
Such ECAs would only be accepted from a panel or Government appointed established independent consultants. The ECA report will be sent to the relevant agencies, the prospective employer and the applicant. This is not a novel idea since our medical and legal professionals have a list of recognised institutions that have only recently become narrower to uphold the standards of professions. I urge the Minister to look into this.
Mr Mohd Fahmi Aliman (Marine Parade): Chairman, COVID-19 has had a major impact on the way of life for many of us including that of our foreign workers. During the pandemic, NTUC's Migrant Worker' Centre worked hand-in-hand with our stakeholders on the ground to contain the outbreak in the migrant worker dormitories. This experience had brought to light the problems faced by our migrant workers in their dormitories, and underscored the immediate need for us to improve their living conditions. This includes the need to review how foreign worker dormitories are regulated, and if these regulations should be reviewed.
Currently, the Foreign Employee Dormitories Act, or FEDA, ensures that the accommodations of our foreign workers are regulated and must comply with a list of requirements to ensure the health and safety of their residents. However, FEDA only applies to larger dormitories that accommodate 1,000 or more workers.
In view of the challenges faced during the COVID-19 pandemic, I would like to ask MOM if there are any plans to further regulate the living conditions of foreign workers in dormitories that house lesser than 1,000 workers, such as increasing the scope of FEDA to smaller dormitories.
Miss Cheng Li Hui: Chairman, SMEs in Singapore are among one of the worst hit by the COVID-19 pandemic, especially those whose workers are housed in dormitories. With new standards for migrant worker dormitories to enhance workers' well-being, dormitory operators said it would see at least 50% higher cost to implement in existing dormitories.
Under new MOM specifications, dormitories will have no more than 10 beds per room, with only single-deck beds and 1 metre spacing between them. Each room now holds 12 to 16 beds.
I am fully supportive of giving our foreign workers better living conditions. We value them and we must treat them humanely and give them proper housing.
JTC used to run these dormitories before they were privatised and taken over by commercial operators. In the 1970s, to attract labour for the industrial estate, flats were constructed by JTC, which was responsible for developing and managing Singapore's industrial estates and their related facilities, was providing low-cost accommodation for workers. Will JTC help SMEs by coming back into this role of managing some dormitories? This can offer some competition with the privately-run dorm so that there could be healthy competition helpful for SMEs.
Ms Hazel Poa (Non-Constituency Member): Mr Chairman, it was disappointing to note that despite the pandemic exposing our vulnerabilities arising from our over-reliance on foreign labour, the Budget did not present new measures to fundamentally move our economy away from that over-reliance, apart from a tightening of the S Pass quota for the manufacturing sector.
It would have been a golden opportunity to commence the needed restructuring, at a time when the size of our foreign workforce is down significantly, due to the pandemic, when businesses are looking for new ways to rebuild economic activities, a time for a \"Reset\", as Institute of Policy Studies, or IPS, calls it.
With only minor tweaks to our work pass and work permit requirements, it is to be expected that the presence of foreign workforce in our economy will remain as large as ever.
Despite our objection to the continued over-reliance on foreign workforce, that is a matter of disagreement over what is the best policy for Singapore, and does not translate into disrespect for the foreign nationals working in Singapore. The contribution of foreign workforce to Singapore's development has been significant and they deserve to be protected as well, just like our local workforce.
Our laws, such as the Fair Consideration Framework (FCF), the Employment of Foreign Manpower Act, and the Foreign Employee Dormitories Act, are meant to prevent discriminatory practices and protect both local and foreign employees.
According to the MOM, a rising number of employers have been penalised for illegally underpaying foreign employees. The severity of the COVID-19 pandemic's spread in dormitories has also exposed the harsh conditions many foreign workers live in, and exposed many inadequacies in the way we manage their welfare. Also, instances of discriminatory hiring practices and violations of the FCF have been highlighted by the public.
Given our large and growing foreign workforce, does the MOM have sufficient manpower and resources dedicated towards enforcing the relevant laws and regulations? Is it able to assure Singaporeans that its resources have been put to good use, and that its enforcement has been effective?
Moving forward, how will MOM manage the balance between local and foreign workforce to ensure they complement one another, not replace? With reference to the recent discovery of work pass holders declaring qualifications from an Indian University selling fake degrees in their applications, how will MOM ensure the integrity of its list of accepted Universities and qualifications for work pass applicants?
What is the plan to prevent a recurrence of severe outbreak of contagious diseases in foreign workers' dormitories? Can the Minister update us on the improved standards for new dormitories and is the Ministry working on this in conjunction with NGOs? How much has been spent on rehousing foreign workers during this pandemic?
To protect our foreign domestic workers from abuse, will the Minister consider adding an item in the six-monthly medical examination report asking doctors to indicate if they noticed any signs of abuse?
The Chairman: Miss Rachel Ong, if you would like to take your two cuts together.
Miss Rachel Ong (West Coast): Thank you, Chairman. I would like to take my two cuts together. I would like to extend my appreciation for our FAST and ACE teams in MOM who have worked tirelessly to care for our migrant workers.
I wish to encourage our team with a story. At the peak of the pandemic, this volunteer asked a migrant worker who had been quarantined, if he had updated his family about his situation. He said no, he did not want his family to worry about him and added \"because I'm in Singapore, I know I would definitely come out of this alive.\" To our MOM and MOH teams, thank you.
At the same time, the pandemic has revealed gaps in the living conditions of many of our migrant workers. There is more we must do for our migrant workers, not just in the interest of public health, but because it is the right thing to do for our fellow men.
My first cut relates to the regulation of living conditions in the Factory Converted Dormitories known as FCDs. These dormitories are regulated by the Foreign Employee Dormitory Act, or FEDA, which cares for the health and safety of our migrant workers. However, FEDA presently covers only dormitories that house 1,000 workers and above. Extending FEDA regulations to the smaller FCDs will impact over a 100,000 more workers.
I would like to highlight two areas for FCDs with cooking spaces to be regulated in. First, hygiene. A visit to some kitchens in FCDs will reveal the presence of stray animals that roam freely as well as unclean food preparation and disposal areas.
I would like to highlight two areas for FCDs with cooking spaces to be regulated in, first, hygiene. A visit to some kitchens in FCDs will reveal the presence of stray animals that roam freely as well as unclean food preparation and disposal areas. These kitchen spaces must be regulated to meet basic hygiene standards. The second area for consideration is the persons-to-stove ratio. Each day, migrant workers return from work in large numbers because of the long wait to cook. Some go to bed hungry as they would rather rest. A sensible ratio of pax-to-stove will allow for better access for food preparation. For many, being able to prepare their own food is not just a matter of saving money but a small piece of comfort from home they taste at the end of a long day.
I would like to ask MOM about the approach to improve and regulate living conditions in the FCDs moving forward.
My second cut is on ensuring safe food access for our migrant workers.
Many workers stay in dormitories without cooking facilities and purchase food from caterers at their own cost, ranging from $120 to $150 a month. These meal packages include breakfast, lunch and dinner. Caterers deliver their lunch together with breakfast in the morning, some as early as 5 am, which means that lunch is prepared way in advance. The earliest preparation time we understand is at 5 pm the day before. Thus, our workers eat their lunch long after NEA's recommended time of four hours after food preparation.
At the worksite, lunch packages are often left in open spaces or under the hot sun because of the lack of food storage areas. When it rains or when stray animals get to them, the food is inedible and they go hungry. Other times, they have hard, cold rice and sour vegetables to eat. Such treatment of our migrant workers cannot and must not be tolerated in Singapore. For one, could we have employers provide lunch at the worksite? It is important that any increase in costs is not passed on to the already low-wage migrant workers.
As suggested by some industry caterers, would it be possible for a part of the workers' levy to go into the provision of safe and nutritious lunch for the worker? Access to safe food is a human right, not a privilege. I would like to ask the Ministry how might we better protect our migrant workers' rights to safe and nutritious meals without passing on further costs to them.
Mr Pritam Singh (Aljunied): Chairman, the underpayment of foreign workers and Pass holders is not just a travesty against foreign workers; it sabotages Singaporean workers by undercutting their wage competitiveness. Unscrupulous employers take advantage of the significantly imbalanced negotiating position of foreign workers and coerce them to return a portion of their salaries in cash. Foreign workers are usually in debt by way of agency fees owed back home or to middleman employment agents, many of whom are outside Singapore's jurisdictional reach. The foreign workers in question would unsurprisingly be more concerned about their prospects for continued employment or employability in Singapore. In such a scenario, the disadvantages of reporting an errant employer to MOM can far outweigh the advantages.
The Minister for Manpower, arising from Parliamentary Questions filed by Workers' Party Member of Parliament Mr Faisal Manap and Progress Singapore Party Non-Constituency Member of Parliament Leong Mun Wai, recently confirmed that about 190 employers were found underpaying their foreign employees every year between 2015 and 2019. That total corresponds to close to 1,000 employers over a five-year period. The total number of foreign workers who were underpaid was not disclosed, nor were any details of restitution made to these workers disclosed as well. Can the Minister make these details known?
The Minister also shared that the number of errant employers caught was the result of improved detection capabilities and education efforts to encourage foreign employees to report salary irregularities. Minister committed that the Ministry would continue to take strong surveillance and enforcement action.
Under the Employment of Foreign Manpower Act, it is an offence if employers do not pay their foreign employees their contractually stipulated salaries or inflate their foreign employees' salaries with no intention of paying them the amount declared to MOM. Sir, I believe it is time to come down harder on errant employers who denied their foreign workers and Pass holders a fair wage and, in doing so, also lower the employment opportunities of Singaporeans who are qualified to do the same jobs.
Compared to the numbers from 2010 to 2014 where 60 errant employers each year were found to have illegally deducted the salaries of their foreign workers, the numbers are clearly on the increase. One direct way to resolve this matter would be to raise the deterrent effect of the enforcement regime by increasing the penalties for underpayment of foreign workers and Pass holders under the Employment of Foreign Manpower Act.
A second approach could be to tweak the law to require an errant employer, in addition to criminal penalties, to pay the foreign worker a penalty amounting to six months of the foreign workers' wage for each instance of intentional underpayment to circumvent MOM regulations. This amount would represent a punitive element that seeks to activate a behavioural effect to nudge foreign workers to proactively report employers who do not pay their declared wages, as required by MOM.
The Chairman: Mr Louis Ng, if you would like to take your two cuts together.
Mr Louis Ng Kok Kwang (Nee Soon): Sir, migrant workers help to build our nation. I thank them for helping to make Singapore the shining red dot we are today.
Many of them invest a significant amount of money to come to Singapore. They have to pay agent fees to even secure a job here. This means when they first step foot on Singapore soil, they are already thousands of dollars in debt.
It is not enough to say that these fees were not paid in Singapore. These agent fees affect how effective our labour laws are. It results in a huge power imbalance.
When migrant workers are saddled with huge debts, they are less likely to speak up against errant employers who flout Singapore’s labour laws. Agent fees paid overseas undermine our labour laws.
Will MOM look into this problem and study the possibility of establishing direct recruitment channels through its licensed Overseas Testing Centres to cut out the middlemen? Will MOM also increase penalties for companies who are found to collect such kickbacks?
Next, this COVID-19 pandemic has shown that we need to do more for our migrant workers and I am glad we are.
Currently, the Foreign Employees Dormitories Act (FEDA) covers only licensed dormitories housing more than a thousand workers.
In 2017, I spoke up about the need to ensure that accommodation for migrant workers that fall outside FEDA are of equivalent standards to the larger dormitories. Surely, a dormitory housing 999 workers is no different from a dormitory housing more than a thousand workers.
MOM responded that FEDA imposes additional conditions on larger dormitories because of higher concentration risks there. MOM also said that smaller accommodation types are still required to comply with comprehensive guidelines.
COVID-19 has shown that we need to relook how we regulate risks in dormitories. More importantly, this is not just the issue of managing risk but of ensuring that every migrant worker helping to build our homes also has a decent home to return to at the end of the work day.
I hope that MOM will increase the coverage of FEDA.
Mr Leon Perera: Mr Chairman, migrant workers currently pay hefty agency fees to secure a job in Singapore.
In 2019 migrant worker NGO TWC2 found that, for the first-timers, the average agency fee paid, especially for Bangladeshi workers, was $7,606 and the median was $7,750. For repeat workers, the average was $4,733 and the median was $4,000. When migrant workers lose their jobs, they fall into heavy debt because they are unable to pay off the loans that they have taken for the agency fees. It is perplexing that migrant workers bear the brunt of agency fees when it is common in many industries in countries for the employers to bear such fees.
MOM could consider setting up a standardised Singapore licence in mandatory online job portal for both jobseekers who are already in Singapore as well as overseas jobseekers who want to work as migrant workers in Singapore. Employers with quota in Singapore licence employment, agents should be the only ones allowed to advertise vacancies on the portal. This cuts out unlicensed job brokers. Under such a scheme, it would be mandatory for the company and worker to transact the job application and acceptance through the portal. Mr Alex Au of TWC2 and others have called for such a reform.
Singapore licensed and regulated employment agents could still engage in bulk recruitment for specific end employers in Singapore, provided all recruitment goes through the portal for the sake of transparency to the worker, MOM and all stakeholders. Such a portal may also be useful to enable the authorities and the workers themselves to track compliance with insurance requirements.
Ms Sylvia Lim (Aljunied): Sir, additional processes have been put in place for employers of foreign workers seeking entry or re-entry into Singapore. After getting MOM approval for the workers, there is now an additional requirement for employers to apply for slots for their entry into Singapore on specific dates. It was explained that there is a need to stagger the entry of foreign workers to reduce the risk of imported COVID-19 cases. I believe employers understand the rationale, especially since Singapore has had a major headache dealing with outbreaks of COVID-19 in foreign worker dormitories.
The issue with the implementation is the uncertainty it creates for employers. Employers are advised by MOM to apply for workers to endorse a specific date, only to receive replies that the slots are full and to re-apply on a specific later date, with the cycle repeating itself. For employers working on construction projects, not knowing when approved workers can enter Singapore, renders them unable to plan when work can resume. Some are working on key infrastructural projects which promise enormous social benefits, such as new MRT lines. Other employers might be waiting for new domestic workers to assist in desperate family circumstances.
Can the Ministry clarify how many daily slots are available for entry of foreign workers into Singapore and how these are allocated?
Mr Mohd Fahmi Aliman (Marine Parade): Chairman, the workers in both the pest management and strata management sectors perform integral and important services. Our pest management workers safeguard public health by providing essential services, such as preventing the spread of dengue and rodent and pest infestations, while workers in the strata management sector perform the important and demanding task of managing estates and providing all with a conducive and safe environment for us to work and play.
Some work has been done to acknowledge the essential work done in these sectors. The pest management sector was subsumed under the Environmental Services Industry Transformation Map in the hopes of transforming and uplifting the sector to provide good and sustainable jobs to Singaporeans. In addition, the Facilities Management Skills Framework was launched in September of last year to provide the industry with information on the occupations, skills and competencies, and the possible career pathways available. The development of an FMC Accreditation is also underway which will encourage higher management competencies and skillsets for workers in this industry.
While this is encouraging, I would like to ask MOM what plans they have for these two sectors in the near future and to consider the implementation of the Progressive Wage Model so that more workers benefit from a clear career progression pathway, coupled with the relevant skills, improved productivity and commensurate wages.
Mr Pritam Singh: Sir, the Progressive Wage Model for the lift and escalator sector was approved by the Government in 2018 after a tri-sector committee comprising of union representatives, the Government and lift companies made its recommendations.
Arising from this agreement to raise the wages of Singaporeans and PRs in the lift and escalator sector, a move that all Singaporeans should support, it is inevitable that some maintenance costs for lifts and escalators will rise.
The lift and escalator industry is one with relatively high barriers to entry and it is dominated by a handful of major players.
Some years ago, arising from a number of high profile accidents in the Town Council setting, many Town Councils moved to, as far as possible, tag the maintenance of their lifts to their original equipment manufacturers. This was also done in anticipation of a smoother rollout of HDB Lift Enhancement Initiatives.
Currently, Town Councils are in discussions with various lift companies that seek to increase the maintenance costs of lifts in HDB estates arising from the implementation of the Progressive Wage Model in the lift and escalator sector. In tandem, lift companies are also increasing the fixed schedule of rates for their lift parts. The latter move should not have any direct connection with the rollout of the Progressive Wage Model in this sector as the costs of spare parts generally rise in tandem with inflation, accounting for a reasonable 3% to 4% increase in costs for Town Councils.
In my discussion with lift companies as an elected Member of Parliament of Aljunied/Hougang Town Council, the starting position of some lift companies has been to throw in a steep increase in maintenance cost. One major lift company started with a more than 40% jump in lift maintenance fees, positing that costs would likely rise by 40% on account of the implementation of the Progressive Wage Model in this sector. When this company was questioned what percentage of this increase would go to workers, considering it maintained thousands of lifts across various Town Councils and should benefit from significant economies of scale to accommodate a mandated rise in wages through the PWM, company representatives demurred and argued that a rise in excess of 40% was just an opening position and that this amount was subject to negotiation.
Sir, I recognise that such discussions with lift companies are commercial arrangements. The argument from some, when a minimum wage like the Progressive Wage Model is applied, is that costs will rise and the burden will have to borne by consumers. But it would appear that some vendors could take advantage of the Progressive Wage Model to profiteer under the pretext of increased costs. In view of the design of the Progressive Wage Model, and the extended conversations that take place between union representatives, the Government and the companies, I would like to know how the tripartite partners ensure that the prospects of profiteering by unscrupulous vendors is kept in check under the guise of rising wages for workers. This is especially in sectors like the lift and escalator sector where a number of the major players dominate and have a large footprint in that sector.
Sir, I filed this cut before Senior Minister of State Koh Poh Koon delivered his speech last Wednesday, where he recommended the setup of a committee to guard against companies profiteering from the rollout of the Progressive Wage Model. To this end, what role do Government bodies like the BCA, for example, play to ensure that the interest of Singaporean HDB dwellers and other consumers are protected from unjustified hikes in the guise of adherence to the Progressive Wage Model, in this case, in the lift and escalator sector? Thank you.
The Chairman: Mr Gerald Giam.
Mr Gerald Giam Yean Song (Aljunied): The Progressive Wage Model currently covers three industry sectors – cleaning, security and landscaping. It will cover the lift and escalator maintenance sector by 2022, and there are now discussions to implement PWM in six more sectors. Based on MOM labour force data, apart from the aforementioned sectors, there are still more than 80,000 Singapore citizens and Permanent Residents aged 50 and over, working in other sectors earning a gross income of less than $1,000 a month. These include 27,300 in transportation and storage, 10,900 in public administration and education, 8,000 in manufacturing, 7,400 in health and social services, and, if we include those earning less than $1,500 per month, the numbers more than doubled.
Can the Minister share whether MOM has plans to roll out PWM in these sectors and, if so, what are the broad timelines for doing? The NTUC wants to look at a vocational PWM for lower wage occupations, like clerks, general machine operators and electricians. How does MOM plan to implement PWM for these vocations, given they cut across multiple sectors? What levers will MOM use to impose wage, training and career progression requirements in the absence of licencing conditions?
Finally, Deputy Prime Minister Heng said that the Government's aspiration is for every sector of the economy to have some form of progressive wages. Moving forward, how will the Government roll out the PWM differently so that it can be implemented at a quicker pace and made universal? For example, which processes and requirements will be streamlined or removed to ensure a faster rollout?
The Chairman: Mr Louis Ng.
Mr Louis Ng Kok Kwang: Sir, about 32,000 full-time workers in Singapore currently take home less than $1,300. We must do more to help our lower wage workers and I am glad we are.
We have been expanding the PWM to more sectors. I thank the Government for its latest move in expanding the PWM to the waste management sector. I also welcome the recent announcements that PWM will be rolled out to the food services, retail, strata management, pest management, and solar technology sectors. Workers within these sectors will welcome this news. But timing is also important for them. Can we roll out the implementation of PWMs within a shorter timeframe? With the expansion to these sectors, can MOM share whether all the 32,000 workers currently taking home less than $1,300 will be covered?
The Chairman: Mr Melvin Yong. If you would like to take both your cuts, please do.
Mr Melvin Yong Yik Chye (Radin Mas): Thank you, Mr Chairman. February 2021 – 11 lives were lost at our workplaces in just 28 days. This is alarming, if we compare this to the 30 workplace fatalities for the whole of 2020. Sir, all these accidents could have and should have been prevented.
According to MOM’s data, smaller construction firms with less than 50 employees, have a higher fatality rate than larger firms. While main contractors have the resources to put in place comprehensive safety measures, these sub-contractors often do not.
Many sub-contractors face manpower shortage during this period. Burdened further by the necessary safe management measures, sub-contractors often engage their own sub-contractors. I am told that there can be up to four layers of sub-contractors at one major worksite. This can sometimes lead to a situation where the eventual worker performing a high-risk task may not be qualified or trained to do so.
Sir, Sub-contracting is not inherently dangerous, as companies may need to engage a specialist to perform a part of the project. But developers and main contractors cannot lose sight of the one eventually performing the work underneath these layers of sub-contracting. How many main contractors have been prosecuted for WSH lapses by their sub-contractors? We last reviewed the penalties under the WSH Act in 2017. Is it time for us to review the penalties again? We should also mandate developers to include a safety component in their tender specifications, budget and evaluation so that good safety measures will be a key consideration when awarding projects.
Often, parts of a major project are sub-contracted to freelancers and self-employed. I urge MOM to extend WICA coverage to them, particularly for high-risk sectors, such as marine and construction.
Sir, studies have shown that fatigue is directly correlated to workplace accidents. We must, therefore, ensure that our workers are well-rested so that they can concentrate on performing their work safely. I hope MOM can set clear guidelines on rest time for workers, especially at high-risk work sites.
Also, there are only so many worksite safety inspections that MOM can do. For WSH, workplace safety, to truly be pervasive, we need a dedicated WSH representative in every company. I have spoken numerous times on this and I urge MOM to implement it quickly. We can upskill the Safe Management Officers to perform this role once the pandemic is over. Let us ensure every worker returns home safely every day.
Mr Chairman, my next cut.
Since the issuance of the Tripartite Advisory on Mental Well-being at Workplaces, many have written to me to say that this is a step in the right direction towards de-stigmatising mental health issues. However, they also expressed hope that more could be done to encourage better adoption of the Tripartite Advisory.
I would like to ask how many companies have since fully adopted the recommendations listed in the Advisory? MOM conducts the Comprehensive Labour Force survey yearly to help shape national manpower polices. Can we include workplace mental health, in particular, the adoption of the Advisory's recommendations in these surveys to help track our efforts in building mental resilience among our workers?
To drive full adoption of the Tripartite Advisory, we need to start in a targeted manner. I propose we focus on the adoption of Employee Assistance Programmes (EAPs). According to a study conducted by the National Council of Social Services, less than 5% of employers surveyed offered EAP to their staff. Among the small minority that do, it is common to hear that utilisation rate is low, due possibly to poor awareness.
EAP is important as it provides an avenue for the employee to seek support for any matters that affect their mental health. Companies that offer EAP report happier employees and an increase in productivity. I hope MOM can incentivise companies to provide EAP to their staff, by creating an early-EAP adoption incentive scheme to partially offset the “start-up” costs.
Sir, it is also important that we recognise exemplary companies and individuals who have gone above and beyond their call of duty to help achieve workplace mental well-being among their employees and colleagues. By showcasing the best-in-class and good role models, we can inspire others to follow in their lead.
I am, therefore, happy to announce that the tripartite partners have agreed to recognise exemplary companies and individuals this year with the Mental Well-being at Workplaces Awards, which will be presented at the annual Singapore WSH Awards Ceremony. I would like to thank both MOM and SNEF for their strong support. More details will be announced in due course.
Mr Chairman, workplace mental health issues are real and ever-present. The Labour Movement is committed to protect the mental well-being of all workers, because Every Worker Matters.
The Chairman: Mr Pritam Singh.
Mr Pritam Singh: Sir, Work Injury Compensation coverage has represented a form of worker protection that long predates even Singapore's independence. It serves as a critical bulwark to protect workers against accidents, providing them important financial relief and some degree of protection in times of uncertainty and distress. Even so, the central role of platform workers or gig economy workers in the economy over the last few years has shown no signs of abating. In a time of heightened retrenchment and lower salary prospects, such work provides an important outlet for many Singaporeans workers.
In this light, concerns abound over the lack of important worker protections for this group of Singaporean workers. Independent contractors under a contract for service also find themselves in a similar predicament. I have come across Singaporeans undertaking delivery work, like couriers, for example, finding themselves without WICA coverage. In the event they injure themselves in the course of their work, while loading their vehicles for example, no prospect of Work Injury Compensation exists for them.
Does MOM have any indication of the number of such workers without WICA coverage, especially those in the low-income bracket? Separately, does MOM have any plan to address the worker protections for such Singaporean workers? This is in light of developments in other jurisdictions, like the UK, where the Supreme Court recently recognised platform workers as employees, lending weight to important questions over the appropriate statutory protections that should be extended to such workers in future.
The Chairman: Mr Sharael Taha.
Mr Sharael Taha: Thank you, Mr Chairman. Sir, in the past 12 months, the pandemic has taught us that for 60% of Singaporeans who are PMETs, our jobs are likely to be able to be done anywhere, and at any part of the globe. Workers are no longer confined to office cubicles, and close physical proximity is no longer a prerequisite for collaborative work.
Employers are now trying to implement HR policies that strike a fair balance between work from home and work from office. For some, work from home has improved their quality of life while, for others, work from home has been very difficult to juggle as the lines between work and home are getting increasingly blurred. What is the balance point that is fair to both employers and employees? For example, for office employees or non-workmen that are on work from home but have OT pay in their working contracts, how do we remunerate such workers that is fair for both employers and employees? How can the Ministry ensure the rights of both employers and employees are protected through encouraging fair work employment practices? How can the Ministry ensure that high productivity is maintained while encouraging and improving good work-life balance for our workforce? We must capitalise on this opportunity and ensure Singapore remains one of the more attractive places to work and, more importantly, retain the talent within Singapore. Fair work practices and a good work life balance will go a long way into ensuring our comparative advantage as we shift towards new working norms.
Work from home has also demonstrated clearly how jobs can be done anywhere in the world. While we have debated extensively on foreign workforce quotas, let it not distract us from the fundamental question: how do we keep our workforce competitive and relevant in the global market, especially when workforce quotas are losing relevance in protecting jobs? How can we prepare, upskill and provide opportunities for our workforce such that we remain relevant in the global economy and not only do jobs in Singapore, but also do jobs for other countries remotely? Can the Ministry or trade associations provide a platform for our remote professional services to be procured globally?
Remote working also requires a different set of skills for both the employer and employee, and an equilibrium of trust must be struck for it to work. Remote working managers must be able to set targets to manage the output of the team and not just manage the team purely based on counting the number of hours clocked. At the same time, employees must also not take advantage of the flexibility afforded to them due to remote working and be more self-directed in managing themselves to ensure that productivity is never compromised.
Moving forward, even as we focus on investing in upskilling our workforce in terms of hard digital skills, let us concurrently promote the adoption and refinement of the softer skills of remote working to establish a suitably efficient and productive remote work culture environment. We should also consider how MOE can better prepare our children for a future of remote working.
Mr Patrick Tay Teck Guan: Sir, the issue of workplace bullying and harassment, including sexual harassment, is an important and sensitive one. We had promulgated the Tripartite Advisory on Managing Workplace Harassment some years ago as well as rolled out outreach efforts and materials when the Protection from Harassment Act was introduced. Perhaps, it is time to review this advisory and strengthen its legal and regulatory weight.
This also comes at a time when we see more Singaporeans undergoing PCPs, work trials, SGUnited programmes and traineeships in companies and businesses. This is over and above the usual student interns and contract staff.
Can we further enhance the protection and safeguard of the current employees as well as these new categories of workers in the workplace who may be subjected to workplace bullying or harassment or, worse still, sexual harassment, and other physical and non-physical abuse, including being made to work overtime and excessive hours without rest.
Ms Yeo Wan Ling: Sir, in my Budget speech, I spoke about women in the workplace and how important it is that workplaces must offer women real, viable choices for their livelihoods, grant them protection in the making of these livelihood decisions and to allow them to fulfil their full potential, be it at home or in the workplace.
As a nation, we must stop thinking of workplaces as a one-size-fits-all for all workers. With the new norm of flexible work arrangements and working from home, the notion of what is a workplace has been given a new breath of life. A workplace can be in the office from 9 am to 6 pm or at home from 3 pm to 12 midnight. Indeed, a workplace can be anywhere and anytime so long as there is Wi-Fi and a virtual background.
As such, these are exciting times for our women workers who are planning to return to work after a long hiatus because the typical nine-to-six office setting arrangement has never and could never work for them.
At the Labour Movement, we ask that, together with the Government, we (a) encourage our employers to open their minds to a new progressive workplace and work arrangements, and, indeed, make these the norm and mainstay in the Singaporean workforce culture; (b) support companies through financial and advisory means the process of job redesign; and (c) advise our employers on the new HR best practices that support the outcomes of the job redesign and flexible work arrangement exercises. Areas that need to be looked into are work-life harmony arrangements, fair hiring practices and performance evaluation criteria. Comparisons, fair or otherwise, could be made between workers who work from home and workers who choose to work in the office.
Could I have the Ministry update us on what their plans are for these three points?
In my Budget speech, too, I spoken about how FDWs form a vital care-giving structure for working women and that FDW partners at home allow our working women peace of mind in the workplace.
Sir, it is with solemn gravity that I raise the plight of some FDWs in Singapore. I am sure we are not strangers to the case of 24-year-old Piang Ngaih Don (Pee-eng ngay dong). Ms Piang, an FDW from Myanmar, was repeatedly abused to the point of death. To call this a cruelty would have been an understatement, and not to address this cruelty would be an injustice. Imagine sending your daughter, wife or sister away to a foreign land in hopes of a better life, only to find out that she was treated this way. My heart broke.
As a whole, it is important to be consistent as a society. We cannot afford, on one hand, to celebrate the pivotal role FDWs play in the support eco-system and, on the other hand, remain lax on protecting the dignity and even lives of our FDWs.
I would like to seek updates from the Government on their plans to protect our FDWs and the efforts in community engagement to spread awareness on the roles of our FDWs in keeping our female workforce strong and resilient.
Ms Mariam Jaafar (Sembawang): My resident, a new mother, recently quit her job. Because when she asked if a room at her workplace could be converted into a nursing room, she was told, \"Why can't you just use the toilet?\"
Another resident struggled to find a job after she was retrenched. \"Once you are a woman over 40, your value plummets. There is always someone younger,\" she said.
Understanding and attacking these \"moments of truth\" could have disproportionate impact on the number of women in our workforce. I ask if the Government could consider more standards on structural workplace benefits, such as nursing rooms, emergency respite care, return-to-work programmes and hiring incentives for women over 40.
International Women's Day is around the corner. I call on the Government to \"Choose to Challenge\" so that no women will be made to feel the way my residents were made to feel.
The Chairman: Mr Louis Chua, if you would like to take both your cuts together, please do.
Mr Chua Kheng Wee Louis: Mr Chairman, while eligible working parents of Singapore citizen children are entitled to six days of paid childcare leave a year, this only applies to children below the age of seven. Parents whose youngest child is between seven and 12 are only eligible for two days of extended childcare leave a year, while childcare leave is held constant, regardless of the number of children a couple has.
Given that there is a rising trend of dual-income families, I would like to ask if childcare leave can be extended on a per-child basis and up to the age of 12, as our Primary school-going children would see only a degree of care if they fell ill or simply to allow families to spend more time together.
With an increasingly ageing society, there is also the duty to take care of our parents. Many companies have started to offer eldercare leave as an employee value proposition and I would like to ask if this could be considered as a statutory form of leave.
The workplace has become more pro-family over the years, with more establishments offering various work-life initiatives, such as flexible work arrangements and non-statutory family-friendly paid leave. Flexible work arrangements are important, no doubt, but it is also equally important to give our workers the flexibility to take time off without taking no-pay leave if required to take care of their children or parents.
Mr Chairman, while it can be argued that increasing leave provisions could be difficult against the challenging economic climate today, the challenges of our low fertility rate and ageing population are no less critical. If we wish to uphold the ideal of family support and enable children to play their role as care-givers to elderly parents and for working parents to look after their young children while balancing other demands on their time, then the baseline level of parental care leave probably ought to be legislated to send the right signal to society on this matter.
The second cut. In 2019, about 85% of employers offered some form of formal or ad-hoc flexible work arrangement in the workplace. However, flexible work arrangements come in a spectrum and, clearly, the level of flexibility that was in place pre-COVID-19 is dramatically different from what you have seen in 2020 and today, with work from home being the default work arrangement.
Amongst many companies in Singapore, I note that UOB has already instituted a two-day work from home policy post-COVID-19 while DBS will give its workforce the option to work remotely up to 40% of the time.
Is it now time for the Government to reflect the needs of today's employees and employers and legislate a baseline level of flexible work arrangement?
Annual leave, sick leave, maternity leave and childcare leave are but amongst the various leave provisions currently legislated for under the Employment Act, although the right number is a separate topic for debate. It is not lawful for employers to give a notice of dismissal to a mother during her absence and neither is it conscionable for employers to discriminate against hiring women and mothers.
Now, legislation is no silver bullet, but it is an all-important first step. In the same vein, I do hope that the Government, businesses and society do not view flexible work arrangements as one which has unintended consequences of reduced employability and it is imperative for all of us and the Government to demonstrate leadership on this matter.
Ms Carrie Tan (Nee Soon): Mr Chairman, our social safety net approach continues to put family as the first line of support. MOH talks about ageing in place. The reality is, these two dovetail into an untenable care load on women when it comes to elderly care. Because when we say \"family\", most of the time, it is daughters who end up caring for ageing parents.
As much as filial piety is a valued and important virtue in our Asian society, it should not come at the expense of one's old-age financial adequacy. Mothers and daughters who care for children and elderly parents are facing poverty in their old age. As Minister of State Gan Siow Huang previously shared, women lose an average of eight years of career and income, often when their careers can be peaking after their thirties, due to familial care. For women who are in low-wage work, livelihoods can be lost for years, alongside with opportunity cost in CPF savings.
Of course, the profile of those impacted by familial care is not homogeneous and there are also men whose jobs and careers are impacted by care-giving. There are also men who are single fathers sandwiched between eldercare and childcare as their parents age.
So, we need differentiated policies for low-wage care-givers and those from higher income groups.
For low-wage care-givers, I implore MOM and MSF to do a joint study on the recipients of long-term ComCare to examine how many recipients become reliant on financial assistance in their old age due to care-giving obligations in their younger years which kept them from participating in the labour force.
The research will help us to project any trends into the future to better understand the reality of our ageing society on low-wage individuals. We need to take a more data-driven approach towards ensuring better retirement adequacy for the low-wage and sandwiched generation of care-givers and to assess whether a basic income for stay-home care-givers might be a viable and dignified way to distribute social support.
The savings reaped from reducing the need for institutionalised care for seniors, if transferred into basic income for stay-home care-givers, could help to save on long-term ComCare spending.
Through a basic income for care-givers, the narrative for their old-age financial dependency is shifted from \"I am old and useless and dependent on welfare to feed me\" to a dignified self-perception of \"I am valued for the care that I provide and provided\". This goes a long way to instill self-worth in those who provide care for better mental health, dignity and self-esteem as they age.
As I previously proposed, a \"Carefare Income Supplement\" will go a long way to support stay-home care-givers, affirming that they play a valued and important role and are not just \"calefare\" in our society, excuse the pun. Carefare is a way to ensure dignified ageing for low-wage care-givers.
As for PMEs earning higher incomes who also struggle with juggling familial care and work, I would like to suggest simplifying childcare and eldercare into a general family care leave. This family care leave will ensure that both married people and single people will have leave they can use for any family emergency. Such simplification will also enhance the momentum by corporates to offer more autonomy to employees in how they manage their time, improving workplace satisfaction and also morale.
My hon colleague, Member Ng Ling Ling, spoke about getting AIC involved in the alliance of workplace improvements. To prevent abuse of family care leave, we can require employees to register themselves as primary care-givers to their family members with AIC and allow firms to log leave utilisation on the same platform to qualify, perhaps, for Government incentives. Incentivising firms through corporate tax reliefs for family care utilisation may be one way to encourage more progressive workplace policies, leading to higher job satisfaction for employees and better mental wellbeing, which are both helpful for increasing productivity.
I urge MOM, MOF, MOH and NPTD to consider these solutions together so that there is concerted effort to achieve our shared goal of a society made for families.
The Chairman: Mr Louis Ng, if you would like to take all your three cuts together, please do.
Mr Louis Ng Kok Kwang (Nee Soon): Sir, it has been more than nine years since we introduced parent-care leave in the Civil Service. We should legislate the same leave for all other workers.
We need to remember that this is especially important for essential workers who are unable to work from home. We also need to remember we have an ageing population and more and more of us will need time to look after our parents.
We are a family-friendly employer. Now we need to be a familyfriendly Government. We should introduce parent-care leave for all employees.
COVID-19 has shown that work from home is possible. Many employers I spoke to said that they are willing to allow employees to work from home if the Government legislates this. I am not asking for employees to be forced to work from home. I understand that it is not possible for some lines of work. Some employees may also not want to. Instead, I am asking for employees who can work at home to be allowed to work from home if they wish to.
We should also allow employers to reject such requests for business related reasons. Will MOM look into legislating the right to work from home?
Many employees feel they are paid lower than they deserve because their employer mandated them to disclose their salary history. Last year, I shared in this House that a ban on salary history disclosures has helped close the gender wage gap in California. Minister Josephine said that MOM would look at this study.
I am happy to share that new research further supports that earlier study. In June 2020, researchers at Boston University found that salary history bans in the US led to employers increasing wages for all workers, but especially for women and some racial minorities. I quote, “Salary histories appear to account for much of the persistence of residual wage gaps.”
Has the Ministry reviewed these studies and whether the declaration of last drawn salary contributes to the gender wage gap here in Singapore? Will MOM consider banning questions on salary histories?
The Chairman: Deputy Leader, would you like to report progress?
","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 Deputy Leader of the House (Mr Zaqy Mohamad): Chairman, may I seek your consent to move that progress be reported now and leave be asked to sit again tomorrow?
The Chairman: I give my consent.
[(proc text) Resolved, \"That progress be reported now and leave be asked to sit again tomorrow.\" – [Mr Zaqy Mohamad]. (proc text)]
[(proc text) Thereupon Deputy Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]
Mr Zaqy Mohamad: Mr Deputy Speaker, I beg to report that the Committee of Supply has made progress on the Estimates of Expenditure for the financial year 2021/2021, and ask leave to sit again tomorrow.
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 10.30 am, tomorrow.\" — [Mr Zaqy Mohamad]. (proc text)]
Adjourned accordingly at 8.03 pm.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Plans to Amend Community Disputes Resolution Act or Introduce Legislative Measures to Assist Resolution of Neighbourly Disputes Before Community Disputes Resolution Tribunals","subTitle":null,"sectionType":"WA","content":"1 Mr Zhulkarnain Abdul Rahim asked the Minister for Law whether there are any plans to amend the Community Disputes Resolution Act or introduce any other legislative measures to assist in the resolution of neighbourly disputes before the Community Disputes Resolution Tribunals.
Mr K Shanmugam: An inter-agency review committee is looking at ways to strengthen the Community Dispute Management Framework, which seeks to promote neighbourliness to minimise disputes, encourage amicable resolution of disputes via mediation, and provide accessible legal recourse for cases which may be intransigent.
The review will look at improving the handling and referral protocols among frontline agencies, encouraging greater use of community mediation to resolve neighbour disputes, and making the Community Disputes Resolution Tribunal (CDRT) more effective as a measure of last resort. If necessary, we will amend the Community Disputes Resolution Act to implement the recommendations.
2 Mr Leon Perera asked the Minister for Trade and Industry with regard to Haw Par Villa (a) what has been the annual visitorship rate to the park in each of the past five years; (b) how does STB evaluate the tour operator’s performance in site management including its key performance indicators; (c) what has been the progress of the upgrading works; (d) whether STB has worked with NHB to preserve the unique heritage of the site including acting on recommendations of the NHB-commissioned research study in 2016 and, if so, how has this been done; (e) whether there are any plans for the site in the next 10-20 years; and (f) whether the park can be gazetted as a national monument or conservation area.
Mr Chan Chun Sing: Haw Par Villa is a unique attraction to Singapore, and the upkeep of Haw Par Villa is an important and ongoing task. In the past five years, visitorship to the park increased steadily, from 180,000 in 2016 to 344,000 in 2019. In 2020, visitorship fell to 109,000, as the park was closed for several months due to COVID-19.
The appointed operator is responsible for maintaining the park’s facilities in good condition. In addition, the operator is expected to come up with initiatives, such as experiences, programming and tours, to draw visitors to the park. Since 2017, the operator has also been working closely with STB on various refurbishment and upgrading works on key infrastructure and amenities. Last October, STB and the operator agreed to close the park for upgrading and repair works, taking advantage of the lull in visitorship arising from COVID-19. The park is on track to reopen in the third quarter of 2021 with enhanced night lighting, new air conditioning systems, and other enhancements. More details will be announced closer to the reopening date.
Recognising Haw Par Villa’s significance and heritage, STB partnered with NHB to study and document its heritage features, including the built structures and statuary, and to recommend appropriate methods to repair the features and upkeep the park’s heritage in the future. Completed in 2017, findings of the study have guided STB on the ongoing repair efforts in Haw Par Villa.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Studies on Technology and Social Media's Impact on Domestic Violence or Abuse in Society in Context of Global Pandemic","subTitle":null,"sectionType":"WA","content":"3 Mr Zhulkarnain Abdul Rahim asked the Minister for Social and Family Development whether there has been any studies conducted on how technology and social media has enabled or exacerbated cases of domestic violence or abuse in society particularly in the context of this global pandemic.
Mr Masagos Zulkifli B M M: MSF is not aware of any studies on whether technology or social media has exacerbated the risk of domestic violence or abuse in Singapore during this pandemic.
MSF’s Adult and Child Protective Services saw a 40% increase in the number of enquiries in January to October 2020, compared to the same period in 2019. These enquiries included repeat calls by the same individual, or multiple callers reporting the same incident. Not all enquiries involved incidences of violence or abuse. Rather, the increase in enquiries was likely due to Singaporeans being more aware of the risk of family conflict, especially during the Circuit Breaker, as MSF and our partners had stepped up outreach efforts to tackle family violence.
Comparing the same periods of January to October in 2019 and 2020, the number of new cases investigated by MSF’s Adult and Child Protective Services remained stable at about 120 cases per month.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Requirement for Employers of Foreign Domestic Workers to Obtain Documented Consent from FWDs for Deployment Outside Their Contract","subTitle":null,"sectionType":"WA","content":"4 Mr Louis Ng Kok Kwang asked the Minister for Manpower whether the Ministry will require employers of foreign domestic workers (FDWs) to obtain documented consent from their FDWs each time they are being deployed to a different address to care for the employers' young children or elderly people, such as through text messages or a logbook, so that disputes over illegal deployment can be more smoothly resolved.
Mrs Josephine Teo: Under the Employment of Foreign Manpower Regulations, foreign domestic workers (FDWs) are only allowed to work at their employer's residential address. In some cases, the employer may need her FDW to accompany her children or elderly family members to a relative's place at a different address while the employer is at work. This arrangement is allowed if the employer obtains the FDW's written consent and notifies MOM. Instead of writing in to notify MOM, the employer can now notify MOM through an online form on MOM's website. The employer must ensure that the FDW does not perform the full load of housework in both households. Employers are encouraged to get the FDW's written consent prior to the start of the employment and incorporate it into the FDW's employment contract.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Study on Possibility of Introducing Mandatory Labelling Scheme for Shark Products","subTitle":null,"sectionType":"WA","content":"5 Mr Louis Ng Kok Kwang asked the Minister for National Development (a) whether the Ministry has conducted its study on the possibility of introducing a mandatory labelling scheme for all shark products specifying the species of the shark; (b) if so, what are the results of this study; and (c) if the study has not been conducted, what is the Ministry's timeline for conducting the study.
Mr Desmond Lee: International trade in wildlife species threatened with extinction, including shark species, is regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Under the Endangered Species (Import and Export) Act, scheduled species brought into Singapore are to be accompanied by CITES permits issued by exporting countries in accordance with CITES rules and regulations.
This helps us to regulate the import of shark products upstream and provides assurance that the import of scheduled shark species into Singapore is legal, sustainable and traceable. NParks also has a robust risk management framework to target the illicit trade in scheduled shark species. Hence, our approach is to regulate upstream at the point of import, while targeting illicit trade, rather than imposing labelling requirements at the consumer-level. This approach is also in line with that adopted by most of the Parties to CITES.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Making Mediation Before Community Mediation Centre Mandatory Measure in Resolution of Neighbourly Disputes between Dwellers or Owners of HDB Flats","subTitle":null,"sectionType":"WA","content":"6 Mr Zhulkarnain Abdul Rahim asked the Minister for National Development whether the Ministry and HDB can consider making mediation before the Community Mediation Centre a mandatory measure in the resolution of neighbourly disputes between dwellers or owners of HDB flats.
Mr Desmond Lee: Neighbours should accord mutual respect and consideration to one another. When disputes occur, as they sometimes do, they are often best resolved by neighbours coming together to understand and try to resolve the cause of the friction between them.
Where neighbours are unable to resolve the dispute themselves, the Government has created avenues to help neighbours work out their disagreements. Under the inter-agency Community Dispute Management Framework (CDMF), most disputes between neighbours in HDB estates can be resolved amicably with some help from grassroots leaders and community partners. If the dispute persists, the neighbours will then be advised to seek mediation at the Community Mediation Centre (CMC) to reach an amicable resolution. If there is no improvement after mediation attempts, the relevant parties will be advised to file a case at the Community Dispute Resolution Tribunal as a last resort.
MCCY is leading a review of the Community Dispute Management Framework to strengthen measures such as referral protocol among frontline agencies, mediation and legal recourse. This is a Whole-of-Government approach that seeks to enhance the management of community disputes in both private and public housing estates. MND is part of the inter-agency committee led by MCCY, which is also looking at encouraging greater use of mediation to resolve neighbour disputes.
We thank the Member for his suggestion on mandatory mediation, which we will carefully consider as part of the review.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null}],"writtenAnswersVOList":[],"writtenAnsNAVOList":[],"annexureList":[],"vernacularList":[{"vernacularID":4360,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Ms Low Yen Ling","filePath":"d:/apps/reports/solr_files/20210302/vernacular-Low Yen Ling MTI 2 Mar 2021 -Chinese (MTI edited).pdf","fileName":"Low Yen Ling MTI 2 Mar 2021 -Chinese (MTI edited).pdf"},{"vernacularID":4361,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Ms Hany Soh","filePath":"d:/apps/reports/solr_files/20210302/vernacular-Hany Soh MCI 2March2021 -Chinese.pdf","fileName":"Hany Soh MCI 2March2021 -Chinese.pdf"},{"vernacularID":4362,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Ms Sim Ann","filePath":"d:/apps/reports/solr_files/20210302/vernacular-Sim Ann MCI 2 Mar 2021 -Chinese.pdf","fileName":"Sim Ann MCI 2 Mar 2021 -Chinese.pdf"}],"onlinePDFFileName":""}